Investment Advisors in Florida

A tax-free state is not a plan

People move to Florida partly because the state taxes none of their investment income. According to the U.S. Census Bureau, 2020 to 2024 American Community Survey, per capita income is about $42,609, about 34.1 percent of adults hold a bachelor’s degree or higher, and the median resident is about 43 years old. The first thing an investment advisor tells a new arrival is that the missing state tax simplifies the picture and does not finish it.

Federal tax still applies. Interest is taxed as ordinary income, qualified dividends and long-term gains enjoy lower federal rates, short-term gains are taxed as ordinary income and higher earners may owe an extra surtax on investment income. The advisor’s job is to arrange accounts and the timing of sales so that the federal bill is as low as it can be, and to build a portfolio that matches your goals.

The portfolio an advisor builds

Work begins with questions: what you want the money to do, when you need it and how you behaved in the last downturn. Out of those answers comes a mix of stocks, bonds and cash, a choice of funds and a review calendar. Over the years the advisor trims what has grown too large, sells losers to offset gains and revises the plan when your life changes. With a signed discretionary agreement the advisor makes the trades, and without one you approve each move. Our investing basics guide explains diversification and risk in plain language.

For retirees, a typical structure holds a year or two of spending in cash and short-term bonds, a middle layer of bonds and balanced funds and stocks for growth and inflation. A retiree with a pension or large Social Security checks can hold more stocks than one living mostly on savings.

Federal tax moves that matter more here

Because there is no state layer, a handful of federal habits do the work.

• Asset location. Keep bonds and funds that distribute a lot of income in tax-deferred accounts, and hold broad stock index funds in taxable accounts.
• Holding period. Wait more than a year before selling a winner, so the gain qualifies for the lower federal rate.
• Loss harvesting. Sell losers to offset gains, while following the wash-sale rule.
• Roth conversions. Move traditional IRA money to a Roth in years when your federal bracket is low, with no state tax on the conversion.
• Charitable gifts. Give appreciated shares instead of cash to skip the gain, and use a donor-advised fund in a high-income year.
• Municipal bonds. Interest on most municipal bonds is exempt from federal tax. Florida has no income tax, so there is no extra state benefit for Florida bonds, and a national fund works as well.

Our tax planning guide explains the federal rules.

When your house is your portfolio

A large share of Florida wealth sits in real estate, from a family home bought decades ago to a beach condo or a rental. That is a concentrated bet on one market, and it comes with carrying costs, insurance premiums and storm risk that a stock does not have. An advisor looks at the portfolio and the property together. A household that already has most of its wealth in a coastal home might hold more conservative investments and keep a larger cash reserve. One that rents might reasonably hold more stocks. For owners considering a sale, the advisor models the tax on the gain, the use of the home sale exclusion and what to do with the proceeds.

Insurance matters to the plan. A hurricane deductible can be a percentage of the home’s value, and flood coverage is separate. Cash held for that purpose belongs in a safe, accessible account, not in stocks.

Moving money to Florida

Newcomers often bring portfolios that include accounts at several firms, an old 401(k) and sometimes concentrated stock. An advisor consolidates what makes sense and checks the cost of each transfer. Before selling a large position, the advisor coordinates with your CPA on whether your move has been completed in the eyes of the old state, since a sale made while you are still considered a resident of a high-tax state could be taxed there. Be sure to retitle accounts and update beneficiary forms to match your Florida estate plan. Our retirement planning guide covers how a portfolio becomes income.

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Investing for grandchildren and heirs

Many Florida retirees want to help children and grandchildren. Gifts can go into education accounts, such as the Florida 529 Savings Plan or the Florida Prepaid College Plans, or into custodial accounts and trusts. The Florida 529 Savings Plan invests for any qualified school expense, and there is no state deduction because the state has no income tax. An advisor can show how much you can give without hurting your own plan, how gifts are taxed under the federal annual exclusion and how to coordinate the gifts with your will and trusts. Holding appreciated stock until death can give heirs a stepped-up basis, which erases the gain, while giving it away during life passes along the original cost basis, so the choice between gifting and bequeathing matters. Our estate planning guide explains the basics, and a Florida attorney should draft the documents.

Keeping calm through a downturn

Retirees in Florida who watch their statements through a market decline feel the stress most when income depends on the portfolio. An advisor prepares by showing in advance what a 20 or 30 percent drop would do to your balance and your spending, and by agreeing on a response. That might mean drawing from the cash layer first, trimming discretionary spending for a year and rebalancing into stocks once prices fall. A written plan and a scheduled call during volatility keep decisions steady and help prevent the most expensive mistake, selling after the market has already fallen.

Sales pitches aimed at older investors

Florida has an enormous retiree market, and it draws a lot of sales activity. Free dinner seminars, calls from salespeople, mailers and online ads push annuities, high-commission insurance products, private placements and complicated real estate or crypto offerings. Some are legitimate products sold fairly, and some are overpriced or unsuitable. Questions to ask include how the seller is paid, what the surrender charges are, what happens if you need your money back and whether a simpler alternative exists. Get the offer in writing, take it home and have someone you trust review it. Walk away from anyone who promises high returns with no risk or demands that you act today.

Advisers, brokers and who regulates them

The law sorts these professionals into two groups. Advisers owe you a fiduciary duty on their advice and usually charge a fee. Brokers answer to FINRA, owe you a best-interest standard on recommendations and usually earn commissions. Plenty of people hold both licenses. Smaller advisory firms register with the Florida Office of Financial Regulation, and larger ones with the SEC. Check the firm and the person on the SEC adviser database and FINRA BrokerCheck, and read Part 2 of the Form ADV. The Office of Financial Regulation can confirm a license and take complaints.

What it costs

Each fund bills an expense ratio, and trades and annuities add costs of their own, so the number to request is the all-in total.

Choosing an advisor

1. Explain where you stand: retirement income, a move, heavy property holdings or a first portfolio.
2. Search the advisor on the SEC and FINRA sites and with the state regulator.
3. Go through Part 2 of the Form ADV.
4. Find out who manages tax planning and whether your CPA takes part.
5. Request the complete yearly cost on paper.
6. Weigh two or more advisors against each other.

Video meetings let you work with an advisor anywhere in the state, or beyond.

Frequently asked questions