Financial Planners in Florida

Florida’s budget: low taxes, high carrying costs

According to the U.S. Census Bureau, 2020 to 2024 American Community Survey, median gross rent in Florida is about $1,669 a month, and owners with a mortgage pay a median of about $1,959 a month. About 67.6 percent of homes are owner occupied, the median resident is about 43 years old and the median household earns about $74,568. The median home is valued near $359,000.

Florida’s reputation as a tax haven is only half the story. The state collects no personal income tax, but it relies on sales taxes, property taxes and a long list of fees, and the real pressure on household budgets has come from housing, insurance and utilities. A planner starts with an honest look at those costs.

A budget that includes storm season

Floridians live with a risk that planners elsewhere seldom model. A hurricane can mean a deductible of several thousand dollars or more, days without power, hotel bills and repairs that insurers take months to settle. The usual advice is a larger emergency fund than elsewhere, held in an account you can reach quickly, plus a go-bag of documents, such as insurance policies, IDs and account numbers, in a waterproof container or secured online.

A planner reads your policies with you. Look for the hurricane deductible, the wind and flood terms and the limits on additional living expenses. Many owners learn only after a storm that flood damage is excluded and that the National Flood Insurance Program or a private flood policy would have covered it. Flood policies usually have a waiting period before coverage begins, so buy before a storm threatens. Our budgeting and saving guide can help you set the monthly amounts.

Renting, buying and the condo question

Florida renters watched costs climb faster than pay, and many wonder whether buying makes sense. A planner compares the full cost of renting with the full cost of owning, which in Florida includes insurance, property tax, repairs, HOA or condo fees and a larger reserve. A first-time buyer may qualify for help from the Florida Housing Finance Corporation, whose programs and income limits change, so ask a lender for current details.

Condominiums need particular scrutiny. After the 2021 collapse in Surfside, state law began requiring structural inspections and funded reserves for many older buildings, and some associations have levied large special assessments or raised monthly fees. Before buying, ask for the association’s budget, reserve study, inspection reports and any planned assessments. Owners already in a condo should plan for the possibility of a bill of several thousand dollars.

Florida homeowners can claim a homestead exemption, and the Save Our Homes cap limits how fast the assessed value of a primary home can rise. A homestead also protects the home from most creditors. The exemption has to be applied for through the county property appraiser, and the deadline is early in the year.

Seasonal and service-industry income

Tourism, hospitality, construction, agriculture and health care employ a large share of Floridians, and pay can vary with the season, overtime and tips. A planner builds the budget on the lowest reliable month, directs extra income to savings and debt, and sets aside a larger reserve for slow stretches. Workers who are paid by the hour or by tips should keep records, since income verification matters for mortgages and for taxes. Self-employed Floridians need to pay federal estimated taxes each quarter and can use retirement accounts built for the self-employed, such as a SEP IRA or a solo 401(k).

Saving for school in a state without an income tax

Because Florida has no income tax, there is no state deduction for 529 contributions, so the choice among plans depends on features. The Florida Prepaid College Plans lock in future tuition and fees at today’s prices for in-state public schools, which suits families who are confident the student will attend one. The Florida 529 Savings Plan invests for any qualified expense at any eligible school, and growth is free of federal tax when used for education. A planner helps you choose and keeps college saving from crowding out your own retirement. Our college savings guide compares the account types.

Taxes and Florida rules a plan reflects

With no state income tax, your paycheck, interest, dividends and capital gains face only federal tax. The choice between traditional and Roth retirement contributions is therefore a question about federal brackets now and later. Our tax planning guide explains how to compare them. Florida collects sales tax, and local governments add their own, and property taxes depend on the county and on whether a homestead exemption applies. Florida has no estate or inheritance tax, but a will and beneficiary forms still decide who receives what.

Florida is not a community property state, though married couples can create a community property trust, and ownership of accounts generally follows the title. Couples should coordinate beneficiary forms and make sure each spouse knows what exists.

Debt in a high-cost state

When insurance, rent and utilities all rise, credit cards and car loans fill the gap, and Florida households have plenty of both. A planner sorts balances by interest rate, sets a payoff order and checks whether refinancing or consolidation would help. A hurricane or a job loss can derail a payoff plan, so the plan also keeps a minimum reserve and sets what to do if a disaster forces a large expense. If you are behind on payments, a planner can describe options, from talking to lenders about hardship programs to working with a nonprofit credit counselor. Our debt management guide lays out the methods in plain language.

Moving to Florida: a short checklist

Many Florida planning clients arrived within the last few years. A short checklist helps. File for the homestead exemption on your new home by the deadline, and file a declaration of domicile if you want a clear record. Get a Florida license and register your vehicles and your vote. Update your address with banks, employers and the IRS. Shop insurance, since homeowners, flood and auto rates are very different from the state you left. Review your will, powers of attorney and health care directives, which should be valid under Florida law. Re-title accounts and update beneficiary forms where needed. Each step supports your claim that Florida is home and gets your finances working under the rules of the state you now live in.

Protecting income and property

A complete plan checks that a bad event does not undo years of saving. Life insurance replaces income for dependents, and disability insurance replaces pay if illness or injury keeps you from working. Homeowners, flood and auto policies should be reviewed every year and shopped, since premiums have changed quickly. An umbrella policy can add liability protection, and a planner can say whether it is worth the cost.

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Planner or advisor: reading the labels

Advisor is a loose word that covers planners, portfolio managers, insurance agents and brokers alike. A planner’s specialty is the full plan, and plenty also run portfolios. The CFP mark means the holder finished required courses, passed an exam, gained experience and pledged to act as a fiduciary on financial advice, and the CFP Board’s site confirms it. Registrations and discipline appear on the SEC adviser database and FINRA BrokerCheck, and smaller firms are listed with the Florida Office of Financial Regulation.

How planners charge

A fee-only planner takes no commissions, while a fee-based planner might. Get the fee and what it covers in writing.

Picking a planner

1. Settle on the job: a single plan, periodic check-ins or planning plus investing.
2. Get the yearly price in dollars.
3. Check credentials and registrations yourself.
4. Find out whether they serve seasonal workers, condo owners, retirees or newcomers.
5. Learn what the deliverable is and how often it is refreshed.
6. Interview two or three and choose the one who explains things most clearly.

Most planners who serve Florida meet by phone or video, so you can work with someone in another part of the state.

Frequently asked questions