Many of the richest people in American have relocated to Florida, known for its lack of income taxes. Among the billionaire residents of the Sunshine State are Amazon founder Jeff Bezos and Ken Griffin, the financier behind the Citadel hedge fund.
Learn More: I’m a Financial Advisor: My Wealthiest Clients All Do These 3 Things
Read Next: 6 Subtly Genius Moves All Wealthy People Make With Their Money
However, relocating for the tax savings doesn’t always pay off for the super wealthy. GOBankingRates spoke with Henry Silva, wealth management advisor at Apollon Wealth Management, about why the ultra-rich should think twice before uprooting their lives and moving to Florida.
Trending Now: Suze Orman’s Secret to a Wealthy Retirement–Have You Made This Money Move?
Tax Incentives Might Not Be Enough of a Reason for Wealthy Americans To Move To Florida
Although Silva himself lives in Miami, he noted that moving to Florida won’t be the right choice for everyone.
“For high-net-worth families, Florida’s no state income tax alone shouldn’t be the deciding factor when considering a major relocation,” he said. “The financial picture here is far more complex than a single tax line item.”
For one, there are certain necessities high-net-worth individuals will likely pay more for in Florida.
“Home insurance premiums have skyrocketed,” Silva said. “Whether it’s clients, friends or family, nearly everyone I know has faced a significant increase in their premiums, sometimes unexpectedly. And it’s not just in Miami — this is impacting properties across the state.
“Add to that the cost of property taxes, flood zone assessments and limited public school options depending on the area, and suddenly, the move doesn’t feel quite as tax-efficient,” he said.
Silva believes that the move “has to make sense beyond taxes.”
“It should align with your lifestyle and long-term vision,” he said. “Without that, you’re just chasing trends, and trends can be expensive.”
Find Out: Suze Orman’s Top Tip for Building Wealth Is a ‘Very Easy One’
Relocating To Florida Can Come With Unpleasant Financial Surprises
It’s not just costly home insurance and property taxes that potential Florida homebuyers need to be aware of.
“One of the biggest surprises, especially for folks looking to buy near the beach or in older high-rise condominiums, is the Structural Integrity Reserve Study (SIRS) requirement,” Silva said. “After the tragic Champlain Towers collapse, Florida has cracked down on how condos maintain reserves for structural repairs. Now, homeowners are suddenly being hit with massive special assessments or monthly increases to catch up.”
These extra payments are often unanticipated.
“These fees vary widely, but they’re often significant and can come with little warning,” Silva said. “Without a well-informed team guiding you, what looks like a dream condo can quickly become a financial and emotional burden, simply because the true cost of ownership was buried in deferred maintenance.”
Never Make a Financial Decision Based on Trends
High-net-worth Americans shouldn’t assume moving to Florida is a good decision just because other people in their income bracket are doing it.
“Wealthy individuals didn’t build their success by following the herd,” Silva said. “But right now, I’m seeing a lot of families make emotional or reactive decisions — whether it’s relocating for a tax break, buying in trendy ZIP codes or moving assets based on headlines.”
The best financial decision for you is always the one that makes sense for your individual circumstances.
“What I remind my clients is this — just because a move is popular doesn’t mean it’s right for you,” Silva said. “You need a personal strategy, not a crowd mentality. A move like this is more than a tax decision — it impacts your estate plan, asset protection, real estate exposure, cost of living and even how your legacy plays out.”
Before making any big moves, Silva recommended seeking the advice of a professional.
“That’s exactly where a skilled wealth advisor makes a difference,” he said. “We help families go beyond surface-level planning and build a strategy designed around their life, values and long-term goals.”
More From GOBankingRates
5 Types of Vehicles Retirees Should Stay Away From Buying
6 Subtly Genius Moves All Wealthy People Make With Their Money
4 Things You Should Do if You Want To Retire Early
7 Wealth-Building Shortcuts Proven To Add $1K to Your Wallet This Month
Sources
Henry Silva, Apollon Wealth Management
This article originally appeared on GOBankingRates.com: Financial Advisor: Wealthy Americans Are Flocking To Florida, but They Shouldn’t Be
