Out of state job offer from San Diego to Minneapolis (move, suburbs)

[MrFrogtown]

Originally Posted by Glenfield

I think you mean the MN property tax credit for renters and it’s gross household income.

So I take it I wouldn’t qualify even I were to make deductions to a 401k and or hsa?

[Glenfield]

Originally Posted by MrFrogtown

Thanks and yes I’m single with no kids. I’m surprised how expensive 1 bedroom apartments are. It’s like every apartment with garage parking is at least $1000 in Minneapolis and surrounding suburbs. I wonder if high taxes are a cause of this.

No, it’s supply and demand.

[oldcarguy49]

Property taxes in Minneapolis are just a bit higher than in San Diego. About 25% higher. Compare that to some other places like Cleveland that is nearly 3 times higher.

[MrFrogtown]

Originally Posted by oldcarguy49

Property taxes in Minneapolis are just a bit higher than in San Diego. About 25% higher. Compare that to some other places like Cleveland that is nearly 3 times higher.

Wow, I wonder it’s so high.Doesnt surprise me why it’s so high here in San Diego.

[Glenfield]

Originally Posted by MrFrogtown

So I take it I wouldn’t qualify even I were to make deductions to a 401k and or hsa?

Your 401k contribution is deductible but it’s taxes so nothing is simple. Here’s the explanation of household income from Minnesota Revenue that will walk you through the calculation.

https://www.revenue.state.mn.us/site...pr_inst_19.pdf

[TheGrandViking]

Originally Posted by MrFrogtown

So I take it I wouldn’t qualify even I were to make deductions to a 401k and or hsa?

The nature of your questions suggests you might be a FIRE advocate?

A simple and not exactly accurate assessment suggests you could save close to 10k a year. I visited San Diego last year with the family (I've got friends in Cali and have gone there many times). Loved it. However, one thing I noted was the cost of gas. It seemed to be $1 or greater difference from here. I used Gasbuddy and found that it was $2.79 to $1.79 at Costco in San Diego/Eden Prairie,mn. But I won't include it bc I don't know how much gas you consume in a year. But, I won't be surprised if you can figure out an additional 2k in some savings gas+ and some other activity you do.

Savings
3000 increased wage
5000 rent savings
2000 M1PR

equals. 10k roughly (of course not exactly bc that additional income is taxed unless it non-taxable income)

I don't know what your taxable income is, but you might save additional money based on my glance at the California tax brackets.

So, even if you have reservations of coming here, if you set a 3 year goal of saving as much as possible, you could probably save an additional 10k a year. If you put that in your 401k, HSA, Roth, or just a brokerage account, I think that would make a big difference in your future. For instance, if you are 25 and plan to start withdrawing your money at 65, you could have an additional 1,200,000 dollars assuming you invested it in the SP 500 index fund with a low cost like a Vanguard fund (this assumes the average 10% rate of return-10k at 40 years, + 10k at 39 years, and + 10k at 38 years).

You probably could save more than 10k. But, you would need to get more granular investigating your current budget.

This would also allow you to make better diagonal career moves for increased wages in the future. The people that are miserable here tend to be transplants who hyper focus on politics, weather(cold), and/or making friends with native born people from Minnesota. I don't think things change much around here except for people's mental state.

DO NOT RESPOND to your future plans like you plan to do a 3 or 5 years plan. There is an outside chance your future employer could be reading this forum (even though it is highly unlikely, it is possible). At most, I estimate a couple of hundred people read these message in Minnesota and even fewer actually post.

Don't work harder, work smarter. Time is your friend for the young, expecially compounding interest in investments.

I've been preaching this to my kids for years. They seem to get it, but time will tell.

[Kayekaye]

Forget about pay and 401ks, I can’t believe you would plunge into our winters. Have you visited here in January? If you do move here I would love to hear how it goes and how you get through the first winter. Come back to the thread next summer and give us an update?

[MrFrogtown]

Originally Posted by Kayekaye

Forget about pay and 401ks, I can’t believe you would plunge into our winters. Have you visited here in January? If you do move here I would love to hear how it goes and how you get through the first winter. Come back to the thread next summer and give us an update?

Physically I can handle it, I’ve been in the area during harsh winters. But mentally that 6 month stretch of cold is hard to swallow especially when coming from SoCal. If offered a six figure salary that would ease a lot of reservations.

[bostonguy1960]

Originally Posted by MrFrogtown

Physically I can handle it, I’ve been in the area during harsh winters. But mentally that 6 month stretch of cold is hard to swallow especially when coming from SoCal. If offered a six figure salary that would ease a lot of reservations.

SIX months of cold?

I follow MSP weather closely here in Boston. If you or anyone thinks highs are in the 30s or 20s for SIX months, and lows are below zero or no higher than freezing for six months, plus constant snowbanks and ice patches in the actual downtown areas and nearby suburbs, well, I think you're mistaken.

Hopefully locals here can back me.

Similarly, many people seem to think Boston is snowed in for six months also. Very little snow this year in Boston -- and most Christmases have no snow!

It's funny how stereotypes persist.

[demtion35]

Originally Posted by MrFrogtown

Physically I can handle it, I’ve been in the area during harsh winters. But mentally that 6 month stretch of cold is hard to swallow especially when coming from SoCal. If offered a six figure salary that would ease a lot of reservations.

Having going on 55 years of Northern Minnesota Winters, I can say with confidence that the winters are not that bad. It is part of why we live up here, and mostly what makes it such a great place to live. IT is also why there are so many things to do in the winter, and why so many people choose to live here, in it. Winter is not what you think it is. It does get very cold that is for sure. Many times I am dressed for being out in the cold driving anyway somewhere, and have the windows down part way, many times just sitting in the car or my truck is plenty warm. Winter is not that bad at all. It does get very cold though.