RE goals- early retirement. Part 3

RE goals- early retirement. Part 3

Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes


In the 2 previous threads on this same RE retirement -goals, I mentioned how you can retire and really enjoy life for under 2K per month and golf EVERY day. Here is how you save money(read TAXES & FEES). If you are travelling around as pointed out in part 1 and 2. You can really enjoy yourself and living a fun life is cheap. Here is how to make it cheaper.
If you are RVing or have multiple homes and no one special place, DOMICILE in S. Dakota. On my bio, you'll see that is listed as my residence,,,sort of . I have a drivers license, a local SD phone # , an address (on Bio), am registered to vote in SD and have been there only a few weeks in last 8 years. Why there?
So Dakota loves us all and we love them. All 5-10K of us! The State of SD really went after generating additional income without having any additional expenses created for the state. Here of some of the perks.

1. There is no state income tax, like FL and TX, (I don't own RE in SD, so, no high property taxes like TX and FL.)
2. Registration and license fees are dirt cheap on my Rig, Viper etc.
3. Medical insurance is about 2nd cheapest in the nation(no stress for people that live in SD!)
4. Auto insurance is about a third of Ca(guessing) because there is nobody on the roads in SD to run into!

That is why you see snowbirds, winter floridians and winter texans with S. Dakota plates. Trust me, they don't spend much time there. So Dakota loves us. They collect fees from us and we use no roads, don't have kids in school, never call the police or firemen, and never cause trouble!! This is a win-win, just like all our BP real estate deals should be.
This DOMICILE literally saves thousands every year on taxes and fees. There are some great tax saving methods out there if you keep your eyes and ears open. This isn't for everybody, but you could retire with this lifestyle 20 years sooner. This is fun!! Rich in FL.
P.S. I'll post a part 4 just on taxes.

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Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
16y

Rich, I completely agree that RE offers many ways to reduce taxable income. A business creates many opportunities as well. Combine a business with real estate and you have many more opportunities to reduce taxes.

How the business is structured makes a difference as well.

In my opinion every investor and business owner should have at least some idea of what is involved and learn to read to read their financial statements.

Sounds like you have created satisfactory income streams that you can live on now. From other posts, I understand that you have defined additional ways of supplementing your income if circumstances warranted it.

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  • Real Estate Investor · Frisco, TX, TX · Member since 2010 · 388 posts · 138 votes
    16y

    Rich,

    I have thorougly enjoyed the retirement series and am looking forward to reading the rest.

    My dad has followed the rules that you shared with us and has been a living example for us. He pays in cash, if he ever acquires debt (rarely) it is at a very low interest rate (typically 0) and only to buy assets.

    2 things that I have learned from my dad that he holds near and dear are:

    1. Invest in your business because no other investment can yield you a higher return.

    2. Don't trust anyone else (stock brokers, real estate agents, money managers, relatives, friends etc.) to make money for you. No one has your interest at heart as much as you do. I thought he was dead wrong on this one until Bernie Madoff hit the news, then his wisdom seemed pricesless.

  • Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    16y

    Ali- "NO ONE will ever take as good of care of your money as you will." Rich

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    16y

    Rich, when will your new book on retirement be released?

    Sponsored by the South Dakota Chamber of Commerce of course :D

  • Investor · Westminster, CO · Member since 2009 · 1k+ posts · 1k+ votes
    16y

    Rich
    It is interesting that you mention South Dakota. In the AARP list of best places to retire, Fargo, North Dakota ranks 5th best in the nation and Sioux Falls, South Dakota made a runner up position:

    http://www.aarpmagazine.org/lifestyle/healthiest_hometowns.html?CMP=KNC-360I-GOOGLE-ATM&HBX_OU=50&HBX_PK=best_state_to_retire_in&utm_source=Google&utm_medium=cpc&utm_term=best%2Bstate%2Bto%2Bretire%2Bin&utm_campaign=ATM%2B-%2BLifestyle

    Also, a little Trivia, the movie "FARGO" is a totally FAKE story. If you don't believe it, just watch the credits at the END of the movie and right after the credits, it states that the entire movie is NOT based on any actual story. :lol:

  • Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    16y

    Jon and Mike- I'm telling you "thars gold in them black hills" to help your tax and estate planning. I'll have to read the article, since I already live in SD, kinda...Rich

  • Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
    16y

    Rich, I completely agree that RE offers many ways to reduce taxable income. A business creates many opportunities as well. Combine a business with real estate and you have many more opportunities to reduce taxes.

    How the business is structured makes a difference as well.

    In my opinion every investor and business owner should have at least some idea of what is involved and learn to read to read their financial statements.

    Sounds like you have created satisfactory income streams that you can live on now. From other posts, I understand that you have defined additional ways of supplementing your income if circumstances warranted it.

  • Accountant · San Diego, CA · Member since 2010 · 34 posts · 6 votes
    16y

    Rich,

    Great post. How do you "live" there without owning real estate? How can you register there? Do you have to rent or own a home in order to have a phone #, DL ect.?

  • Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    16y

    Kyle,
    There are well over 10,000 of us that "domicile" in SD. I have a physical address(where all my mail goes, and then is forwarded), a local phone # and a SD drivers license. One thing leads to another. My vehicles are registered there(by mail with NO inspection) and therefore my registration fees and auto insurance is also SD. That leads to my medical insurance, which is SD. All of those expenses are MUCH less. I travel , pretty much fulltime, and may domicile anywhere I choose. I'm even registered to vote in SD, and only SD. It is really cool. Rich

  • Rental Property Investor · Winslow, ME · Member since 2008 · 826 posts · 281 votes
    16y

    Hmmm... would there be a crafty way to domicile there EVEN if you own and live in a home in another state??

  • Real Estate Investor · Aurora, CO · Member since 2010 · 175 posts · 92 votes
    16y

    Rich, A "physical address" is AKA Mailbox Etc., correct? Most states are set up to receive auto registration payments online so even if the mail wasn't forwarded property, it wouldn't be a problem.

    Registration on my 8 yr old truck just went up to $140 here in CO. Ridiculous!

  • Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    16y

    Diane- my registration for my Dodge Viper is LESS than that! I use an actual company in SO Dakota that furnishes me physical address, local phone # and mail forwarding to wherever I direct. They do a great job. PM if you want their info. Rich

  • Real Estate Investor · Aurora, CO · Member since 2010 · 175 posts · 92 votes
    16y

    Thanks, Rich. I've been looking for a tax friendly state to "live" in before I win the lottery :)

    Hugs to you and yours!

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