Financial Advisors in Alaska

Financial advice in Alaska, in plain terms

Alaska is a place where income can be high and costs can be higher. According to the U.S. Census Bureau, 2020 to 2024 American Community Survey, the median household income is about $92,788, the median home value is about $352,900 and about 66.8 percent of homes are owner occupied. Owners with a mortgage pay a median of about $2,229 a month, and the median gross rent is about $1,419. The state is also young: the median resident is about 35.8 years old and roughly 13.8 percent of people are 65 or older. Unemployment sits near 5.9 percent, which reflects how much work here is seasonal.

The questions Alaskans bring to advisors are specific. What do we do with the dividend each fall? How do we smooth out a fishing season that pays most of the year in eight weeks? Is it smart to retire here or move south? What happens to our shares in the village corporation? Good advice answers those with numbers and dates.

What advisors do here

An advisor can help in several ways, and the right type depends on your needs. Wealth management suits households with complicated finances, such as royalty income or a family business. A financial planner writes a plan around goals. Retirement planning turns savings into income. Life insurance protects dependents, and an investment advisor manages the portfolio. Many people use more than one over time, and most work with clients by phone or video, which matters when the nearest city is a flight away.

No income tax, but not no tax

The state does not tax wages, pensions, Social Security, interest or dividends, and it has no statewide sales tax. That does not mean you pay nothing locally. Juneau and many other communities charge a sales tax, while Anchorage does not. Property tax is set by boroughs and cities such as Anchorage and Fairbanks North Star Borough, and parts of the state outside any borough have none. Oil and gas property carries its own state levy. Because your federal return carries the whole income tax load, deductions, retirement contributions and the timing of income matter more here. Confirm current rules with the Alaska Department of Revenue, your borough assessor or a tax professional.

The Permanent Fund Dividend

Every year the state pays eligible residents a dividend from earnings of the Alaska Permanent Fund. To qualify you generally apply by March 31, must have lived in Alaska for the full prior calendar year and must intend to stay. Children qualify, so a family of five can receive five payments. The amount is set by the legislature and changes year to year, so it should not be treated as a salary. It is taxable on your federal return, and the payment usually arrives in the fall. A family in Wasilla with three kids might use the money for the property tax bill, winter heating fuel or a travel fund. Sensible uses include topping off an emergency fund, paying down a loan or investing for a child. The application has also offered ways to direct part of the payment to savings or charity, so check current options.

Oil, gas and royalty income

Oil from Prudhoe Bay and the North Slope, along with Cook Inlet gas, has long funded state government and the Permanent Fund. For households it shows up in three forms: high pay for rotation workers, steady jobs in Anchorage and Kenai that support the industry, and royalty or lease income for landowners. A worker on a two weeks on, two weeks off schedule may earn well above the state median but face layoffs when prices fall. Royalty checks swing with prices and production, and they raise tax questions about depletion, entity structure and how to invest a windfall. Do not spend the high years as if they would last.

Paid well, but not sure it will last?

Describe your income and an advisor who serves Alaska will help you build a cushion and a plan, free.

Request a free review →

Fishing, tourism and seasonal income

Bristol Bay salmon, Bering Sea pollock and crab, Kodiak and Southeast Alaska fisheries employ thousands. Cruise ships and lodges fill Juneau, Skagway, Seward and the Denali corridor each summer. These jobs concentrate a year of pay into a few months, and many workers are self-employed or paid by the share. That brings estimated tax payments, quarterly cash planning and the question of retirement accounts for people with no employer plan. A solo 401(k) or SEP IRA can shelter a good season. Commercial fishing permits and boat quotas are also assets worth planning around, since their value shows up in estates and loans.

Military and federal careers

Joint Base Elmendorf-Richardson near Anchorage, Fort Wainwright and Eielson Air Force Base near Fairbanks, Fort Greely and the Coast Guard in Kodiak and Juneau anchor a large federal workforce. Service members face frequent moves, special pay, the Thrift Savings Plan and the Survivor Benefit Plan. Federal civilians have their own retirement system and health plan. Alaska does not tax military retirement pay, which helps those who stay after leaving the service. A short, clear plan for a posting that may last three years is often more useful than a long one.

Alaska Native corporations and shareholders

Under the Alaska Native Claims Settlement Act of 1971, regional and village corporations were created, and Alaska Native people received shares in them. Shareholders may receive dividends and sometimes benefits from a settlement trust. Shares generally cannot be sold, and who can inherit them is governed by federal law and each corporation. Dividends are income for tax purposes, and rules differ by type of payment. Because stock rules are specific, an attorney familiar with the corporation should handle wills and transfers, and an advisor can fit the dividends into your budget.

Cost of living and shipping

Groceries, building materials and fuel cost more here, and in communities off the road system everything arrives by plane or barge. Heating a house through a January in Fairbanks can cost thousands more than the same house in Anchorage. Construction runs high, which supports home values. These costs make an emergency fund more important, and many Alaskans set aside three to six months of spending, plus extra for fuel. A plan that compares what a dollar buys in Bethel, Sitka and Wasilla is more useful than a national rule of thumb.

Earthquakes, floods and shifting ground

The 1964 Good Friday earthquake and the 2018 Anchorage quake showed how much damage ground shaking can do. Standard homeowners and renters policies exclude earthquake and flood, so those need separate coverage or a rider. Fairbanks has flooded, Juneau faces glacial lake outburst floods and coastal villages deal with erosion. In areas with permafrost, thawing can shift foundations, a risk many policies do not cover. Ask for quotes before you need them, and read what a policy excludes. Our estate planning guide also covers how to keep records of what you own.

Public pensions: PERS and TRS

State and local employees belong to the Public Employees Retirement System, and teachers to the Teachers Retirement System. People hired before mid 2006 are generally in a defined benefit plan, while newer hires are in a defined contribution plan, so what you have depends on your hire date. Many public employers in Alaska also do not participate in Social Security, which changes the retirement math. Ask the Division of Retirement and Benefits for a statement before you choose a date.

Retiring in Alaska or leaving

With no tax on retirement income, staying can pencil out. Many retirees still leave for a milder climate, and a move changes taxes, health coverage and Dividend eligibility. Spend a winter somewhere before selling a house. Residency rules matter if you travel for long periods. Older homeowners may qualify for a state property tax exemption, so ask your assessor. Our retirement planning guide walks through the steps from saving to income.

Saving for school

The University of Alaska College Savings Plan, managed by T. Rowe Price, offers tax-deferred growth, and since the state has no income tax there is no state deduction to chase. That makes it fair to compare with other states’ plans on fees and investments. The University of Alaska Anchorage, Fairbanks and Southeast are the main in-state campuses. Our investing guide explains how to compare options.

How to choose an advisor

Start with the basics.

• Ask whether the advisor is a fiduciary and get the answer in writing.
• Look up the firm on the SEC adviser database and the Division of Banking and Securities.
• Ask how the advisor is paid and read the Form ADV.
• Find out whether the advisor works with clients by phone or video across long distances.
• Ask who you will meet, how often and by what method.

What advice costs

Prices vary. A common arrangement is an annual charge near one percent of managed assets, lower for larger accounts. Some planners charge a flat fee for a written plan or an hourly rate. Others earn commissions on insurance or investment products. On a $400,000 portfolio, one percent is $4,000 a year, so ask what you receive for it and whether a simpler option would meet your needs. Our financial advisor guide compares fee types in more detail.

Where you live changes the plan

Anchorage holds roughly two in five Alaskans and offers the widest choice of advisors, banks, hospitals and jobs. The Mat-Su Valley, including Wasilla and Palmer, has grown with commuters who want more land and lower home prices. Fairbanks depends on the military, the university and mining, and it has the coldest winters and the highest heating bills. Juneau runs on state government and tourism, and it has no road to the rest of the state. Kenai and Soldotna blend oil, fishing and sport tourism. Rural hubs such as Bethel, Nome and Utqiagvik have the highest costs and the fewest services. Each setting changes insurance, housing and the cash you should keep on hand.

Scams that target remote households

Households far from a bank branch do much of their business by phone and online, which attracts fraud. Common schemes include fake dividend notices, calls claiming to be from the Permanent Fund Dividend Division and offers of quick investment returns in fishing or mining ventures. Never give account numbers to someone who calls you first. Hang up and call the agency using a number from its official website. An advisor you have vetted with the Division of Banking and Securities can also help you sort real offers from fake ones.

First steps for the next year

If you are not sure where to begin, a short list is enough. Write down your monthly spending, including fuel and shipping. List every income source, including the dividend, seasonal pay and any royalties. Check that your emergency fund covers a weak season, which is a longer stretch than a weak month. Confirm that your earthquake and flood coverage matches the value of your home. Then decide whether you want help with one question or with the whole picture. Many people start with a single call and a written summary, then add services as their needs grow.

Alaska financial planning guides

Frequently asked questions