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Moving To Central Florida?

The Tax and Investment Mistakes That Catch Retirees Off Guard

Central Florida continues to attract retirees and near-retirees for good reason: warm weather, no state income tax, and a lower perceived cost of living. But every year, we meet couples who did “everything right” financially—only to discover that moving to Florida created new tax and retirement challenges they didn’t anticipate.

The issue isn’t poor saving.
It’s poor coordination.

Below are the most common tax and investment mistakes we see from people moving to Central Florida, especially those age 50–65 with significant retirement savings.

1. Assuming “No State Income Tax” Means No Tax Problems

Florida’s lack of state income tax is a real advantage—but it doesn’t eliminate federal taxes.

In fact, it often exposes them.

Without state taxes softening the impact, retirees can be surprised by:

  • Higher federal tax brackets

  • Increased taxation of Social Security

  • More visible tax drag on retirement income

Florida doesn’t fix bad tax decisions—it makes them harder to ignore.

2. Moving First, Planning Later

Many people relocate mid-year or sell property shortly after moving, without coordinating the timing.

This can lead to:

  • Dual-state tax exposure

  • Unexpected capital gains taxes

  • Missed opportunities to establish proper Florida residency

Once these decisions are made, the tax consequences are often irreversible.

3. Claiming Social Security Without a Tax Strategy

A common mistake is claiming Social Security soon after moving because expenses feel lower or retirement feels “real.”

What’s often missed:

  • Up to 85% of Social Security benefits can become taxable

  • Early claiming can collide with future RMDs

  • Poor timing can permanently increase lifetime taxes

Social Security is not just a benefit decision—it’s a long-term tax decision.

4. Missing the Roth Conversion Window

The early retirement years—before Required Minimum Distributions begin—are often the lowest-tax years retirees will ever have.

Many Central Florida retirees:

  • Delay Roth conversions

  • Wait until RMDs force withdrawals

  • Miss opportunities to smooth lifetime taxes

The result is higher taxes later, and often higher Medicare premiums.

5. Overconfidence in Real Estate

Florida attracts real estate-heavy retirees, but overconcentration creates risk.

We commonly see:

  • Too much income tied to rental property

  • Capital gains surprises when properties are sold

  • Liquidity issues during insurance hikes, repairs, or storm damage

Real estate must be coordinated with retirement income—not treated as a separate bucket.

6. Keeping Advisors Who Don’t Think Florida-Specifically

Many people keep CPAs or advisors from their prior state who don’t model:

  • Florida residency timing

  • Social Security taxation

  • Retirement income sequencing

Good advice isn’t enough—it has to be location-aware.

7. Outdated or Uncoordinated Estate Documents

Moving states often invalidates assumptions baked into old wills and trusts.

Problems include:

  • Estate documents that don’t reflect Florida law

  • Beneficiary designations that conflict with tax strategy

  • Missed opportunities to reduce taxes for heirs

Estate planning and tax planning must work together.

8. Underestimating Medicare and Healthcare Costs

Income decisions in retirement directly affect:

  • Medicare premiums (IRMAA)

  • Out-of-pocket healthcare costs

  • Long-term cash flow

Healthcare expenses are often the largest “hidden tax” in retirement.

9. Treating Investments the Same as Before Retirement

Many retirees keep growth-oriented portfolios without adjusting for:

  • Withdrawal sequencing

  • Tax-aware asset location

  • Market volatility during early retirement

This increases stress and the risk of permanent damage to a retirement plan.

10. Believing “We’ll Adjust Later”

This is the most costly mistake of all.

Many retirement decisions:

  • Cannot be undone

  • Become far more expensive over time

  • Are easiest to fix before retirement begins

The Bottom Line

Most people who move to Central Florida don’t make reckless decisions.
They make uncoordinated ones.

Taxes, Social Security, investments, and estate planning don’t operate independently in retirement—and Florida makes that coordination more important, not less.

If you’re planning a move to Central Florida or have recently relocated, it’s worth stress-testing your decisions before small mistakes become permanent ones.  

Need help? Call us at 813-489-6305

 

Mike

 

Mike Mickels is the President and Chief Compliance Officer of CochranMickels Retirement Specialists, LLC, and an avid sporting clay competitor. Our firm provides personalized planning and investment services to individuals approaching and in retirement. Disclaimer: This content is intended solely for informational purposes. CochranMickels Retirement Specialists, LLC and its representatives are only authorized to offer advisory services where properly licensed or exempt from licensure. Investing carries risks, including potential loss of principal capital. Our firm does not endorse external links, nor is it responsible for third-party content