BajaNomad

Thinking of Retiring

bajaguy - 10-23-2013 at 09:42 AM

In the States instead of Baja???

10 most tax friendly:

http://money.msn.com/retirement/10-most-tax-friendly-states-...

10 least tax friendly:

http://money.msn.com/retirement/10-least-tax-friendly-states...

Udo - 10-23-2013 at 10:10 AM

I'm glad South Dakota is in the TAX FRIENDLY category (no state income taxes).
I just got my DL there (as well as Jana), plus we just transferred our money from our California branch to the South Dakota branch, and are re-registering our voting address.
Our cars are next, but I have to wait for our duplicate titles from California. Our original titles were burned up in our house fire.

DocRey - 10-23-2013 at 11:33 AM

Two years, seven months & it's "California Away I Go"... Dah, dah, dah, dah.... Dah, dah, dah....:bounce:

bajadock - 10-23-2013 at 11:48 AM

8 years ago, I started reviewing economic environment of potential states to which I might move from Colorado. That evaluation plus a chance invitation to visit Panama in January 2006 led to my move here in late 2006.

I am convinced that approx 50% or more of those age 50+ have no idea what their prospective retirement needs and goals are.

Wishing all of my still working colleagues back in Colorado well on their path to unplugging from their careers.

rts551 - 10-23-2013 at 11:54 AM

Hmm Arizona is in the top 10 with a low State Sales tax. But beware, what they don't tell you is that local taxes push that up.That is as hight as 10.7% in some areas.

Is California still pursuing people with out of state plate?

Stated on the website
"Likewise, if you have homes in more than one state, you could save money by establishing residency in the state with the lowest tax burden. If you opt for that strategy, be careful, because states are increasingly scrutinizing part-year residents, says Kathleen Thies, state tax analyst with CCH, a leading provider of tax information and software. In addition to spending more than half of the year in your chosen state, she says you should register to vote and obtain a driver's license there."

Hook - 10-23-2013 at 11:59 AM

Jeez, outside of AZ, there is no way I'd want to live FULL TIME in any of those states; regardless of the tax savings.

msteve1014 - 10-23-2013 at 12:09 PM

Udo must be going for the pheasant hunting.:rolleyes:

I'm retired in California, and I'm not moving to save a few bucks. It was good enough for my first 50 years.

DENNIS - 10-23-2013 at 01:31 PM

Mexico doesn't even have gas tax. The government owns the product so they just set the price where they want.

bajagrouper - 10-23-2013 at 02:25 PM

Dennis you are mistaken with that statement....

Baja California, Baja California Sur and Quintana Roo are duty free states, your IVA is 11% where as the rest of Mexico has an IVA of 16%... When you gas up it cost 5% more on the mainland except Quintana Roo......

Udo - 10-23-2013 at 02:32 PM

I do no hunting, Steve.
Although, when I was in SD last month, I saw many atvs with a deer on their back rack.
I do fish, however.
Quote:
Originally posted by msteve1014
Udo must be going for the pheasant hunting.:rolleyes:

I'm retired in California, and I'm not moving to save a few bucks. It was good enough for my first 50 years.


Yes, it was good enough for your first 50 years,but when you start getting your social security checks, and you see $266.00 taken out in state taxes..........................
makes you think twice about living in California, the land of GOLDEN FLEECING.

msteve1014 - 10-23-2013 at 03:15 PM

So, are you going to live in SD, or is this just a tax scam?

Udo

bajaguy - 10-23-2013 at 03:31 PM

$266.00 a month plus what you save in vehicle registration costs !!!

DENNIS - 10-23-2013 at 03:34 PM

Quote:
Originally posted by bajagrouper
Dennis you are mistaken with that statement....

Baja California, Baja California Sur and Quintana Roo are duty free states, your IVA is 11% where as the rest of Mexico has an IVA of 16%... When you gas up it cost 5% more on the mainland except Quintana Roo......


Waitaminit.....the federal government owns the product on the market.
The federal government sets the price.
The federal government doesn't tax the product....only controls the price.
What the states do is over and above the controlled price.


My comment addressed the price of gas from the source.


I see what you're saying though, and it's a good, valid point.

midnightrider951 - 10-23-2013 at 03:37 PM

This is great topic. I registered my RV in SD 3 years ago and save a boatload of money. So I looked into residency requirements and they are pretty easy to become a resident. The problem arises from the state of California however.
From what Ive read if you dont "divorce yourself" properly you may end up being a DUAL RESIDENT of both states, defeating your escape from Kalifornia.
Things like canceling library cards, association memberships...all the minor stuff you might forget are the things they (state board of equalization)will try to trip you up on.
What has been others experiences with this? Do you still hang out in California and Baja etc. while being a "South Dakota Resident". TIA

durrelllrobert - 10-23-2013 at 03:56 PM

Quote:
Originally posted by bajaguy
In the States instead of Baja???

10 most tax friendly:

http://money.msn.com/retirement/10-most-tax-friendly-states-...

10 least tax friendly:

http://money.msn.com/retirement/10-least-tax-friendly-states...


From that same link Mexico was ranked 4th overall as the place to retire:


Ecuador 91.9
Panama 89.0
Malaysia 87.6
Mexico 85.1

[Edited on 10-23-2013 by durrelllrobert]

LancairDriver - 10-23-2013 at 03:58 PM

It's not that hard to legally cover yourself, even with the predatory CA (or OR)tax collectors. UDO has taken the best route with the SD residency. Drivers license, voter registration, car, boat, RV, ATV registration and credit card address changes. NV and SD among others, has mail forwarding services that will provide you with an address. The savings for a CA resident retiring in Baja is significant. As far as the half time rule, how can they possibly keep track of this? They would have to track you 24 hrs a day to prove where you spend your time. Cross the border into AZ and drive into CA occasionally if necessary. Unless you feel you owe CA something, your retirement budget will stretch much farther.

Since you asked .....

durrelllrobert - 10-23-2013 at 04:10 PM

..here are the ranking of the other best places, after Mexico, to retire to (the higher the score the better):

Costa Rica 84.4
Uruguay 83.7
Colombia 83.0
Spain 82.5
Thailand 82.3
Malta 80.1
Portugal 80.1
Nicaragua 79.7
Ireland 79.5
France 79.5
Philippines 79.5
New Zealand 79.3
Italy 79.0
Brazil 75.5
Chile 74.8
Honduras 74.6
Belize 73.2
Dom. 71.0

midnightrider951 - 10-23-2013 at 04:15 PM

I wonder if I can keep my SENTRI card if I change my residency to South Dakota.
hmmmm,

msteve1014 - 10-23-2013 at 04:30 PM

Quote:
Originally posted by midnightrider951
I wonder if I can keep my SENTRI card if I change my residency to South Dakota.
hmmmm,


Maybe you can use it for all the trips you be taking to Canada, after you move.

Ateo - 10-23-2013 at 05:11 PM

Just pay your taxes. If you swindle your way out of them, I pay more. :):)

I know, I'm not technically on topic.

midnightrider951 - 10-23-2013 at 05:22 PM

Just a thought. Youre gonna pay more taxes whether I pay mine or not. Im done contributing to the losers in California.

Ateo - 10-23-2013 at 05:37 PM

Quote:
Originally posted by midnightrider951
Just a thought. Youre gonna pay more taxes whether I pay mine or not. Im done contributing to the losers in California.


Not true, and if only the Corporations would pay their fair share as well!! That includes Apple -- a liberal, left wing, hippy company!!

Welcome aboard Nomad! Tell us about yourself. I like your screen name.

midnightrider951 - 10-23-2013 at 05:44 PM

Actually Ive been on this board for a couple of years and posted often when I lived in my RV in Rosarito. I just re-registered under a new ID cuz I spaced my old one.
I have paid taxes since I was 16 and that was well over 40 years ago. I never had a problem paying my fair share. Unfortunately I have seen the waste and corruption of my government for too long. Im not a taker...but I will not be a contributor any longer either. I am a Ron Paul Libertarian and will keep as much of my money as I possibly can.
I will soon adapt to the life of vagabond and travel the world as frugally as possible and call Baja my home base. I will cross the border to CA. only in extreme cases (medical) and to visit old friends who arent as adventuresome as most of us. The name comes from my favorite Alman Brothers song.

[Edited on 10-24-2013 by midnightrider951]

Ateo - 10-23-2013 at 05:49 PM

midnightrider: Yep, our government sure does know how to waste $$$$. They are pros at it.

midnightrider951 - 10-23-2013 at 05:52 PM

thanks for the welcome. I hope to exchange lots of info here and I promise to keep the political rants to a minimum. :saint:

rts551 - 10-23-2013 at 05:56 PM

You guys are braver than I am putting all this good info out on the web.

"
Whistleblower - Informant Award

The IRS Whistleblower Office pays money to people who blow the whistle on persons who fail to pay the tax that they owe. If the IRS uses information provided by the whistleblower, it can award the whistleblower up to 30 percent of the additional tax, penalty and other amounts it collects."

And California has a similar program for State Taxes.

Think I will just play it safe (for anyone listening out there!)

midnightrider951 - 10-23-2013 at 06:11 PM

I never advocated breaking the law by not paying my taxes. There is NOTHING illegal about changing ones residence to a state that has no income tax. If there is....maybe you can enlighten me.
And if its true the NSA is reading this forum, then all the better reason to ex-patriate. Si o no?

[Edited on 10-24-2013 by midnightrider951]

DENNIS - 10-23-2013 at 06:22 PM

Quote:
Originally posted by midnightrider951
Just a thought. Youre gonna pay more taxes whether I pay mine or not. Im done contributing to the losers in California.


Names, please.........and since this is Baja site, no Hispanic surnames are allowed. OK...go ahead:








Well....your time's up. Thanks for your input.

rts551 - 10-23-2013 at 06:34 PM

Quote:
Originally posted by midnightrider951
I never advocated breaking the law by not paying my taxes. There is NOTHING illegal about changing ones residence to a state that has no income tax. If there is....maybe you can enlighten me.
And if its true the NSA is reading this forum, then all the better reason to ex-patriate. Si o no?

[Edited on 10-24-2013 by midnightrider951]


Don't know your status and don't care . But others might and if someone tries to establish residency in one state through a PO box (or similar) and has a house in another... wellllll. but not my problem. Had my run in with IRS 30 years ago and can't afford to do it again.

DianaT - 10-23-2013 at 06:58 PM

Quote:
Originally posted by rts551
Quote:
Originally posted by midnightrider951
I never advocated breaking the law by not paying my taxes. There is NOTHING illegal about changing ones residence to a state that has no income tax. If there is....maybe you can enlighten me.
And if its true the NSA is reading this forum, then all the better reason to ex-patriate. Si o no?

[Edited on 10-24-2013 by midnightrider951]


Don't know your status and don't care . But others might and if someone tries to establish residency in one state through a PO box (or similar) and has a house in another... wellllll. but not my problem. Had my run in with IRS 30 years ago and can't afford to do it again.


It is amazing how much people chose to expose on the internet that could be of interest to the IRS, or information about operating businesses in Baja with only a tourist visa that would be of interest to immigration ---- IMHO not good idea.

rts551 - 10-23-2013 at 07:04 PM

Quote:
Originally posted by DianaT
Quote:
Originally posted by rts551
Quote:
Originally posted by midnightrider951
I never advocated breaking the law by not paying my taxes. There is NOTHING illegal about changing ones residence to a state that has no income tax. If there is....maybe you can enlighten me.
And if its true the NSA is reading this forum, then all the better reason to ex-patriate. Si o no?

[Edited on 10-24-2013 by midnightrider951]


Don't know your status and don't care . But others might and if someone tries to establish residency in one state through a PO box (or similar) and has a house in another... wellllll. but not my problem. Had my run in with IRS 30 years ago and can't afford to do it again.


It is amazing how much people chose to expose on the internet that could be of interest to the IRS, or information about operating businesses in Baja with only a tourist visa that would be of interest to immigration ---- IMHO not good idea.


And the first one to shed tears when they get caught.

KaceyJ - 10-23-2013 at 07:12 PM

Quote:
Originally posted by LancairDriver
As far as the half time rule, how can they possibly keep track of this? They would have to track you 24 hrs a day to prove where you spend your time.


They already do;

If you're retired , spend alot of time on the road , out of state or in Mex then there would be no worries . But if your goal is to get away with spending >50% of your time in Ca., then all they would have to do is look at a phone record.

bajaguy - 10-23-2013 at 07:39 PM

Quote:
Originally posted by midnightrider951
I wonder if I can keep my SENTRI card if I change my residency to South Dakota.
hmmmm,





Yup. Just go on line to your account and change your address

midnightrider951 - 10-23-2013 at 07:43 PM

Get a burner phone but make sure it will fit under your tin foil hat. :lol:

midnightrider951 - 10-23-2013 at 07:45 PM

Quote:
Originally posted by bajaguy
Quote:
Originally posted by midnightrider951
I wonder if I can keep my SENTRI card if I change my residency to South Dakota.
hmmmm,





Yup. Just go on line to your account and change your address


Did you do this ?? curious.

bajaguy - 10-23-2013 at 07:54 PM

Quote:
Originally posted by midnightrider951
Quote:
Originally posted by bajaguy
Quote:
Originally posted by midnightrider951
I wonder if I can keep my SENTRI card if I change my residency to South Dakota.
hmmmm,





Yup. Just go on line to your account and change your address


Did you do this ?? curious.





Nope, didn't need to....but you can go into your GOES on-line account and change/update info

Bajaboy - 10-23-2013 at 08:00 PM

I have no beef with someone who lives full time in Baja or does not have a home base in California claiming SD as their home base. But if you're only trying to save a few bucks, you're basically a tax cheat. If you think the taxes are too high, then rightfully move.

If it were up to me, though, I'd set up a toll booth at the California border and charge all the takers that come here to enjoy the beautiful weather and beaches only to complain about the high taxes. I heard my share of penny pinching zonies complain about the taxes while they sit on our beautiful beaches without paying a penny to do so.

bajaguy - 10-23-2013 at 08:08 PM

Quote:
Originally posted by Bajaboy
I have no beef with someone who lives full time in Baja or does not have a home base in California claiming SD as their home base. But if you're only trying to save a few bucks, you're basically a tax cheat. If you think the taxes are too high, then rightfully move.

If it were up to me, though, I'd set up a toll booth at the California border and charge all the takers that come here to enjoy the beautiful weather and beaches only to complain about the high taxes. I heard my share of penny pinching zonies complain about the taxes while they sit on our beautiful beaches without paying a penny to do so.





When non-Californians buy gas, eat or shop in California, they pay taxes. That entitles them to sit on the beach and enjoy the weather.....however, I don't think California owns or has a monopoly on the weather....yet.

Bajaboy - 10-23-2013 at 08:13 PM

Quote:
Originally posted by bajaguy
Quote:
Originally posted by Bajaboy
I have no beef with someone who lives full time in Baja or does not have a home base in California claiming SD as their home base. But if you're only trying to save a few bucks, you're basically a tax cheat. If you think the taxes are too high, then rightfully move.

If it were up to me, though, I'd set up a toll booth at the California border and charge all the takers that come here to enjoy the beautiful weather and beaches only to complain about the high taxes. I heard my share of penny pinching zonies complain about the taxes while they sit on our beautiful beaches without paying a penny to do so.





When non-Californians buy gas, eat or shop in California, they pay taxes. That entitles them to sit on the beach and enjoy the weather.....however, I don't think California owns or has a monopoly on the weather....yet.


Sounds like we need to cut entitlements from all the takers:tumble:

Nueva obra obra Neuva

EdZeranski - 10-24-2013 at 07:07 PM

Quote:
Baja US



Retired a year and a half ago after 48 years doing communications systems. First time in Baja was 1964 with several times of back- not back based on raising a family and work. I think John Lennon said " Life is what happens while you had other plans". Going back in November as a consultant for a year with Boeing half time which will be interesting. I told my wife years ago my retirement plan was OB, Borrego, and Baja. It is working out!! The reason I can stay in Calif is I own my home and have no debt. I'm sure the present state and feds will try to mess with that.

EdZ

bastids!!

EdZeranski - 10-24-2013 at 07:19 PM

Quote:
...... charge all the takers ,,, [/quote


Including tax cheats, welfare scammers. illegal aliens....

Those scumbags rip off the US but could no way get away with it in MX!!! There are about 15-20 million folks from MX in the US who want benefits of being in the US but see themselves as 'other' so have no need to obey laws. Its interesting, when questioned they squeal 'RACISM!!' MX is a nationality not a race.


EdZ

msteve1014 - 10-25-2013 at 12:31 PM

Quote:
Originally posted by EdZeranski
Quote:
...... charge all the takers ,,, [/quote


Including tax cheats, welfare scammers. illegal aliens....

Those scumbags rip off the US but could no way get away with it in MX!!! There are about 15-20 million folks from MX in the US who want benefits of being in the US but see themselves as 'other' so have no need to obey laws. Its interesting, when questioned they squeal 'RACISM!!' MX is a nationality not a race.


EdZ


You telling me you don't think there are tax cheats and illegal aliens in Mexico? I'm sure LOTS of them have South Dakota plates on there cars. If you will cheat the U.S., you will cheat Mexico.

MitchMan - 10-26-2013 at 10:43 AM

I love California. I love Orange County. But, unlike many and most of the Californians I know, California is not the only place in the world to retire in. I think the ideal way to spend retirement is to live for 6 months to a year in different places throughout the world while having a home base in Baja.

The only tough thing is family. All my family lives in California; kids, grand kids, cousins. But, with enough money to travel from wherever you are back to California at least four times a year for holidays while staying connected on a constant basis with Skype, video messages, emailed photo slide shows, and email could do the trick.

If, wherever you are, you know how to effectively live frugally, it wouldn't take that much money for two retired people.

norte - 10-26-2013 at 11:15 AM

Some people got very quiet. Too late for some. All your info and proposal is already out there.

cessna821 - 10-26-2013 at 11:30 AM

To MitchMan

We've been doing just that for the last fourteen years and its been really great. WIth a selection of fruit trees in the garden and the vegetables we grow while we are here .... we feel pretty healthy.

For us ... the trick was buying a house, with fideicomiso .... no ground rents that increase though the years to worry about. Water is very inexpensive ..... About $12 a month ..... and 24/7 here in Loma Azul. Our only other bills are groceries and fuel. We eat well .... but our living expenses are very low ..... especially when compared to Europe. 328 pesos per month gives good high speed Internet access and allows real time Skype contacts. Electricity is around 350 pesos per month. We live well on one state pension.

Our only problem is that our family are not in California but are a twelve hour flight away from San Diego ..... and with ever increasing family of grandchildren - our only reason for deciding to sell our lovely home here.

http://forums.bajanomad.com/viewthread.php?tid=62505

fordintra@gmail.com