I often hear folks from out-of-state say things like, “gee it must be great to live in Florida since they don’t have to pay state income tax!” And while this is true, it does not mean that Floridians are without financial planning challenges. In fact, having a higher income and/or higher net worth in Florida can often create more complex planning needs. Here are the most important areas we focus on with our clients when meeting with them at our Florida office:

Tax Planning (Yes—even in a no-income-tax state)

Florida’s lack of state income tax is attractive, but high earners still must pay Federal income taxes and the Federal Net Investment Income Tax (NIIT). Plus, at higher income levels there are many deductions and/or credits which phase out for high earners.
Depending on the client’s situation, we can utilize one or more strategies to optimize their taxes. Some of the most common strategies that we consider are Roth conversions (at strategic times), maximizing employer retirement plans, backdoor Roth IRAs, tax-efficient investment allocations, and capital gains planning (harvesting or deferring).

Estate Planning & Asset Protection

Florida has strong asset protection laws, which also makes it appealing to high-net-worth residents. Still, federal estate taxes are a major consideration when building a comprehensive financial plan for our clients.
Key concerns
• Federal estate tax exemption sunsets in 2026 (cutting in half)
• Large estates may face a 40% estate tax
• Multi-state property complicates estate settlement
• Florida homestead law protections (and limitations)

We consider strategies like:
• Revocable/irrevocable trusts
• Family limited partnerships or LLC structures
• Charitable planning
• Trusts for real estate in other states (to avoid ancillary probate)

Retirement Planning for High Income Levels

Because high earners in Florida often cannot rely solely on tax-advantaged accounts (due to contribution limits), they need to consider strategies such as taxable brokerage accounts for excess savings, deferred compensation or executive benefits (if available), mega backdoor Roth contributions, and/or annuities (in some cases) to diversify tax exposures.
Florida retirees often face long retirement horizons, especially those retiring early.

Florida-Specific Insurance Needs

Florida has long been a state with unique environmental challenges that impact property insurance rates. We often discuss with our clients the need for proper wind, flood, and homeowners’ coverages on their policy. With rising premiums and insurer instability in the region, Florida residents are facing a wide range of confusing policy options, often with separate deductibles and exclusions to consider.
As a fiduciary, we at Altfest do not sell any insurance products, but we help our clients to understand the available options to them and can assist them in analyzing potential plans to ensure they are securing the coverage they need, at the best price.

Investment Planning & Concentration Risk

High earners often accumulate wealth through employer stock plans, private business interests, and real estate holdings. When we onboard new clients, we evaluate the breadth of their investments to ensure that they are well positioned to succeed. Some of the risks that we look for in a client’s portfolio are over-concentration in one asset or market, insufficient liquidity, a lack of diversification, and succession planning for business owners.

Charitable Giving Optimization

We work hard to maximize impact and maximize tax efficiency for our clients who are charitably inclined. Our team leverages a number of tools to enhance your gifting strategy such as donor-advised funds, charitable trusts (CRTs, CLTs), gifting highly appreciated securities, and qualified charitable distributions (once 70½).

Healthcare Planning & Long-Term Care

Florida’s large retiree population means planning for health risks is essential.
High earners should consider:
• Long-term care costs and insurance planning
• Medicare IRMAA surcharges (income-dependent)
• Coordination of care for aging parents
• Premium assistance strategies through income management

Lifestyle Planning: Wealth Beyond Numbers

Many high earners ask me “Do I have enough?”, “When can I retire?”, or “What will retirement look like?”. Answering these questions requires an understanding of their plans for travel, hobbies, and goals during retirement. We also consider our clients’ concerns for their children and grandchildren when building their cash-flow forecasts and spend planning analyses.

Working with Altfest Personal Wealth Management

If you’re navigating the unique financial landscape of Florida—whether it’s planning for retirement, managing taxes, or protecting your wealth—having a knowledgeable partner can make all the difference. Our team specializes in helping Floridians create clear, confident financial strategies tailored to their goals. If you’re ready to take the next step, we invite you to request a complimentary consultation and discover how personalized guidance can help you build the future you envision.

Investment advisory services provided by Altfest Personal Wealth Management (“APWM”). All written content on this site is for information purposes only. Opinions expressed herein are solely those of APWM, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation. All investing involves risk, including the potential for loss of principal. There is no guarantee that any investment plan or strategy will be successful.