Table of Contents

  1. Why Florida's Tax Structure Changes Everything
  2. Move #1: Accelerate RSU Vesting Without the State Tax Haircut
  3. Move #2: Convert Traditional IRAs to Roth Without Double Taxation
  4. Move #3: Harvest Capital Gains Tax-Free at the State Level
  5. Move #4: Establish Domicile to Protect Pre-Move Windfalls
  6. Move #5: Time Deferred Comp Payouts to Florida Residency
  7. Move #6: Layer Municipal Bonds for True Tax-Free Income
  8. Move #7: Gift and Estate Transfers Without State-Level Friction
  9. The Fiduciary Difference: Why Fee-Only Matters for These Strategies
  10. Take Action: Audit Your Wealth Strategy

Why Florida's Tax Structure Changes Everything

If you're reading this from your Stuart waterfront home or your PGA Boulevard office, you already know Florida's no-tax advantage is real. But most wealthy transplants from New York, Connecticut, or California miss the tactical plays that turn that advantage into generational wealth.

At Davies Wealth Management, we operate under the Legal Fiduciary Standard as a Fee-Only advisory firm: meaning we're legally bound to put your interests first, with zero commissions or hidden conflicts. Unlike commission-based brokers at big-box firms, our Stuart office serves as a strategic hub for Treasure Coast families who demand transparency and sophisticated planning.

Here's the reality: Florida millionaires have seven specific wealth levers that their New York counterparts simply can't pull. Let's break them down.

Executive desk with RSU vesting documents and stock charts for Florida wealth planning

Move #1: Accelerate RSU Vesting Without the State Tax Haircut

New York executives pay up to 10.9% state income tax on restricted stock units (RSUs) the moment they vest. In Florida? Zero.

The Play: If you're a corporate executive relocating from the Northeast, coordinate your RSU vesting schedule after you establish Florida domicile. A $500,000 RSU vesting event saves you $54,500 in state taxes: instantly.

Jupiter Reality Check: We see this all the time with Pratt & Whitney and NextEra executives moving to Palm Beach Gardens. Many don't realize their former state may still claim a piece unless domicile is properly documented. That's why establishing domicile before major liquidity events is non-negotiable.

For more on equity compensation strategies, check out our insights on retirement planning tailored to high earners.

Move #2: Convert Traditional IRAs to Roth Without Double Taxation

Roth conversions trigger federal income tax: but in New York, you'd also pay state income tax on the converted amount. Florida residents avoid that second layer entirely.

The Strategy: Convert $200,000 annually from a Traditional IRA to a Roth IRA. A New York resident pays federal plus state tax. A Stuart resident pays only federal tax, saving $21,800 per year (at NY's 10.9% top rate).

Over a five-year conversion ladder, that's nearly $110,000 retained in your portfolio instead of sent to Albany.

Pro Tip: Pair this with low-income years (early retirement, business sale, etc.) to minimize federal brackets while maximizing Florida's advantage.

Traditional IRA to Roth conversion pathway comparison for Florida tax savings

Move #3: Harvest Capital Gains Tax-Free at the State Level

Every time you sell appreciated stock, real estate, or a business, New York taxes those long-term capital gains as ordinary income. Florida? Silent.

Tactical Example: You sell a rental property in Stuart for a $1.2 million gain. A New York resident would owe ~$130,800 in state tax. You owe $0.

This opens up strategic rebalancing opportunities most New Yorkers avoid due to state tax friction. We can:

  • Trim overweight positions
  • Rotate sectors without penalty
  • Realize losses for federal offsets while staying disciplined

The 1715 Treasure Coast Foundation has benefited from this strategy through donor-advised funds: wealthy residents donating appreciated securities to eliminate both federal and state capital gains.

Move #4: Establish Domicile to Protect Pre-Move Windfalls

Here's where it gets tricky. New York doesn't let you go easily. If you sell a business or receive a bonus tied to pre-Florida work, Albany may argue they still get a cut.

Domicile Defense Checklist:

  1. File Declaration of Domicile with Martin County Clerk
  2. Obtain Florida driver's license and vehicle registration
  3. Register to vote in Stuart
  4. Update your estate plan with Florida documents
  5. Maintain minimal ties to former state (don't keep a NYC apartment)

Case Study: A hedge fund manager moved to Jupiter Island but kept his Upper East Side condo. New York successfully audited and claimed he remained a resident for tax purposes: costing him $2.1 million. Proper domicile planning isn't optional.

We walk through this in detail on our team page, where our advisors guide Treasure Coast families through the transition.

Move #5: Time Deferred Comp Payouts to Florida Residency

If you negotiated a deferred compensation package while working in New York, when you take distributions matters enormously.

The Play: Delay payouts until you're a bona fide Florida resident. A $3 million deferred comp balance paid out over five years saves $327,000 in New York state tax.

Critical Caveat: Some plans have "source state" rules. Work with a fiduciary advisor who understands multi-state taxation before triggering distributions. Big-box brokers often miss this: costing clients six figures.

Municipal bond portfolio allocation chart showing tax-free investment diversification

Move #6: Layer Municipal Bonds for True Tax-Free Income

New Yorkers buy New York municipal bonds to avoid state tax. But Florida residents can buy any state's munis and still avoid Florida state tax (because there is none).

The Advantage: We can construct portfolios with:

  • Higher-yielding Puerto Rico bonds
  • California infrastructure projects
  • New York's own paper (when it makes sense)

This diversification improves credit risk profiles while maximizing after-tax yield. Most commission-based advisors push only in-state munis because that's what their platform incentivizes. Fee-only fiduciaries optimize for you, not their grid.

For a deeper dive into our process, visit our investment approach page.

Move #7: Gift and Estate Transfers Without State-Level Friction

New York imposes a state estate tax starting at $6.94 million (2026). Florida? No estate tax. No inheritance tax. No gift tax.

The Strategy: A Stuart couple with a $12 million estate can transfer wealth to children or trusts without state-level taxation. The same couple in New York would face a state estate tax bill approaching $1 million.

Generational Wealth Play: Combine this with the federal estate tax exemption ($13.99 million per individual in 2025, adjusting for inflation) to execute sophisticated dynasty trust strategies without state interference.

We've helped Martin County families structure these transfers through coordinated planning with estate attorneys. Reach out via our appointment page to discuss your specific situation.

The Fiduciary Difference: Why Fee-Only Matters for These Strategies

Here's the uncomfortable truth: most "advisors" at big-box firms are legally brokers, not fiduciaries. They operate under a "suitability" standard: meaning they only need to recommend investments that are "suitable," not necessarily best for you.

Fiduciary vs. Broker: The Real Cost

Aspect Fee-Only Fiduciary (Davies) Commission-Based Broker
Legal Standard Fiduciary (always act in client's best interest) Suitability (recommendations must be "suitable")
Compensation Transparent flat fee or AUM fee Commissions, 12b-1 fees, revenue sharing
Product Bias Platform-agnostic Limited to proprietary products
Tax Optimization Core focus (like these 7 moves) Often ignored or mishandled
Ongoing Planning Included in fee Requires separate billing or ignored

When you're executing Roth conversions, RSU vesting strategies, or multi-state deferred comp planning, broker conflicts can cost you hundreds of thousands. That's why we built Davies Wealth Management on the fee-only model: so these Florida advantages actually reach your bottom line.

Take Action: Audit Your Wealth Strategy

If you've relocated to Stuart, Jupiter, or Palm Beach Gardens within the last three years: or you're planning the move: these seven strategies should be active in your plan. Not theoretical. Not "someday." Active.

Next Steps:

  1. Review your domicile documentation with a fiduciary who understands Florida-specific planning
  2. Model your Roth conversion opportunity before year-end
  3. Coordinate RSU vesting and deferred comp with your residency timeline
  4. Audit your estate plan for Florida compliance and tax optimization

At Davies Wealth Management, we serve as a strategic hub for Treasure Coast families navigating these exact decisions. Our fees are transparent, our advice is conflict-free, and our team lives and works in this community.

Ready to put Florida's no-tax advantage to work? Start by completing our qualification questionnaire to see if we're the right fit for your family's wealth strategy. These seven moves aren't theoretical: they're executable, measurable, and exclusive to Florida residents who plan intentionally.

Because the difference between living in Florida and winning in Florida comes down to strategy, timing, and fiduciary guidance. Let's make sure you're capturing every advantage.

DISCLAIMER

The content provided by Davies Wealth Management is intended solely for informational purposes and should not be considered as financial, tax, or legal advice. While we strive to offer accurate and timely information, we encourage you to consult with qualified retirement, tax, or legal professionals before making any financial decisions or taking action based on the information presented. Davies Wealth Management assumes no liability for actions taken without seeking individualized professional advice.