Updated: Oct 14, 2020
Why so many citizens are fleeing the Golden State
Compared To What?
From the desk of Jennifer Brown - Investor Relations Consultant
Everyone is hearing and watching the news as to why people are leaving California...
This video shares some really good insights as to why people decide to leave California and do slightly canvas on light comparisons; however, this shed more light on people's minds as to why many are choosing to leave especially now since the pandemic happened.
Most people had to work remotely. In essence, you can live anywhere and it may be cheaper to live outside of Californa; that's if your job allows you to work remotely and not require you to come into the workplace every day or very often, therefore keeping more of your income, so living expenses becomes more cost-effective and comfortable to live off of.
Another reason, that why people are moving out is because the cost of living is expensive in California compared to other states. Sales tax and business sales tax are higher in Californa than in any other state in the United States.
-But then again, as I watched and heard on how much he paid in personal taxes between 2018 and 2019, it is a good indicator that he has not yet built a good financial team and foundation around him. And it sounds like he does not obtain proper tax advisement if he is having to fork out and pay three-digit thousands in taxes.
Again, this is just an observation on what he talks about, although pretty strong and valid reasons are made in the video; again, it is difficult not to notice that he paid so much personal tax, despite living in California, which I point out later in this comment why. He does continue to share that the amount of tax he paid vs in another state, he would be able to save that money and place it into another compounding type of investment, which yes he is right; it is a lot of money to pay for taxes when in turn down the line in 15 years, hundreds of thousands can turn into double-digit millions. However, it does pose a question in my mind, that even if he does live in another state that offers less state tax, I feel that he still will have that same problem of paying higher personal taxes if he does not remedy it by hiring Wealth Managing Financial Professionals to help him out; this is the point I'm pointing out. Whether he lives in Cali or in another state, if he does not surround himself with the right team, he can kiss those future compound millions goodbye each year.
However, despite the high tax rate, he does continue to share other strong points of why he and apparently other people choose to leave California in search of a better quality of life. One cannot argue with the amount of traffic there is, and how a couple of miles can turn into a one hour drive sometimes at peak traffic hour which attributes to pollution, crime rate going up in some areas making it unsafe to be outside often, and also the situation with California's homeless population constantly increasing; California still has not figured out a way to decrease those numbers and homeless tents have lined up everywhere in Downtown Los Angeles, even in front of residential areas. And lastly, another good point the video makes is that housing is not getting any cheaper either, at least not yet. What you purchase for 1 Million dollars here in Cali, in another state you can purchase a mansion.
Either way, whether you are or are not thinking of leaving California, some of the financial points he shares are very strong, as well as the difference in living conditions in other states. But do not forget to ask this one important question in your mind as you begin to watch and listen... Compared to What?
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