KHTS Radio Santa Clarita Radio – Santa Clarita News
Total Financial Solutions President/CEO Arif Halaby is talking about an ongoing “massive” migration of people from California, and its impact on retirees both choosing to leave the state and those who are staying.
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The latest “Total Financial Solutions Safer Money Hour” looks at this issue and the inevitable effects on California residents.
“U.S. News and World Report came out with an article recently that said the worst quality of living: California,” Halaby said. “Historically folks, we’re at about a 10-year run of being one of the worst places to live, unless you are a millionaire or billionaire.”
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Halaby clarified that many of these millionaires and billionaires who “live” in Beverly Hills or Silicon Valley don’t even have the state of California listed as their official primary residence, probably because of California’s income taxes.
“What that means is, their home is in Florida or their home is in Nevada — zero income tax,” Halaby explained. “Now they might ‘visit’ their vacation home in Santa Monica, they might ‘visit’ their vacation home in San Jose, but that’s not their residence.”
Even pro golfer Phil Mickelson — named one of the top 10 highest paid athletes of all time by Forbes — decided to make his primary residence in Florida instead of California, reportedly because of income taxes.
“The savings in one year of his earnings bought his house, free and clear in Florida,” Halaby said. “What does that mean to retirees and people that are in a very high income? The moment you start making it big and you can leave (California), people do leave.”
About one in three of Halaby’s clients at Total Financial Solutions are choosing to retire outside of California.
“Today I had a phone call with a client who, in two years, is moving to Colorado, taking their defense contractor aerospace-type job pension, the pension and all of the money in their retirement account, and spending that in another state,” Halaby said. “I share this with you because those that are left are going to be stuck having to pay the prices, the price and the fees and the taxes.”
A few other reasons Halaby mentioned are likely fueling this migration from California include poor ranking of the healthcare system compared to the rest of the nation; a bullet train in the works that was supposed to cost $30 billion and is now at about $100 billion; a high homeless population in L.A. County that has Los Angeles Police Department officers spending their time “chasing” homeless people out of the riverbeds before storms; an increasing number of illegal aliens due to California’s status as a Sanctuary State; and an ever-increasing cost of living.
“(There was) a gentleman today that I spoke to who is moving to Colorado,” Halaby said. “I said, ‘Why Colorado?’ He said, “Well my daughter and her husband moved to Colorado a couple years ago because … they couldn’t afford a home here.’”
An estimated 5 million people left the state in the last 10 years, and one in five current California residents are considered poor, according to Halaby.
“You used to come to California because it was idealized in the media; it was the place where your dreams came true, where opportunities came true,” Halaby said. “”All I can do is tell you this — that we see people leaving the state, and that’s a challenge, that’s a problem for us because of something very simple: the rest of you that are left behind are going to be stuck having to pay the bills.”
In addition to getting involved with their vote in local and state elections, Halaby is encouraging residents with questions about the future of the state and the potential impacts on their retirement planning to contact him at Total Financial Solutions.
Ed. Note: This article is a KHTS Community Spotlight based on the latest “Total Financial Solutions Safer Money Hour” radio show on KHTS AM-1220.Total Financial Solutions offers assistance with preparing for retirement in Santa Clarita and the surrounding valleys. Santa Clarita financial professional Arif Halaby, a Certified Estate Planner, and Total Financial Solutions staff work with people of all ages, helping them protect, grow and preserve their assets through an individualized approach. As a well-known financial professional, Arif Halaby is also the host of “Total Financial Solutions Safer Money Hour” on KHTS AM-1220. Launched in 2004, the show offers listeners retirement planning tips and guidance for dealing with today’s ever-changing financial needs.
Total Financial Solutions, Inc.
24322 Main Street
Newhall, CA 91321
661-753-9683
800-990-7344
Total Financial Solutions – Newhall
https://www.youtube.com/watch?v=9tUuNd44gV0
Arif Halaby, Total Financial Solutions, Financial Planning, Planning for Retirement, Retirement Planning
All of what is said here is so true. I am born and raised here 2 generation in CA. I am 55 and not knowing if I will be able to stay here in what has been my home. Wake the heck up CA. Get rid of what is killing outr state, politicians, taxes that are so inflated, immigration issues etc etc. This state is imploding. So sad.