Did You Just Relocate to Georgia with Your Company?

Did you just relocate to Georgia with your company?

Financial, Tax, and Lifestyle Tips for Corporate Professionals Did you just relocate to Georgia with your company? Financial, Tax, and Lifestyle Tips for Corporate Professionals

Financial & Tax Whether your company has decided to move its headquarters or operations to Georgia, or asked you to move to their Georgia office, there are likely a myriad of questions running through your mind. Where will I live? How are the schools? What’s the cost of living difference? Who are the best doctors? And on and on. There are a number of financial considerations as well, some of which may not be top of mind. Here are a few tips to help make the financial transition to Georgia as smooth as possible, and avoid some unexpected turns.

Understand Georgia’s Income Tax Structure Finally, Georgia offers tax credits which are Georgia’s income tax rate is currently 5.75%. If this is governmental incentives aimed at fostering higher than the state you were previously residing in, specific business activities, such as low income depending upon how much advance notice you are housing development, and our booming film and given, it may make sense to recognize some income entertainment production. Purchasing these state before you move, such as taking capital gains in tax credits at a discount from a reputable company your portfolio or exercising stock options. Certain can help lower your income tax burden, so work states have recapture rules whereby if you earned with a local CPA or financial advisor to see what tax income while working in State A, but move to State credits would benefit your personal situation. Buying B when that income is actually paid out to you, State tax credits makes a lot of sense for most people who A may argue they have claim to their share of the tax pay quarterly income taxes in Georgia, or have big burden. You should consult with a CPA familiar with income years. both Georgia and your prior home state before you Cost of Living and Education make a big income recognition decision. Cost of living is often a major factor in one’s Your take-home paycheck, assuming the same salary, relocation package from their company. In addition may be higher or lower than your prior paycheck to knowing how much more housing and recreation given the difference in state tax rates, so do some may (or may not) cost, consider the cost of the quick math before you sign your relocation and private or public school system. cost of living adjustment package. You may need Tuition can be a substantial budgetary item for any to negotiate a higher salary to keep pace with your family, and if you’ve never had to pay it before, you projected after-tax living expenses. certainly need to plan ahead for how these bills will get paid (more salary, use of bonus each year, savings, “…Do some quick math before you sign your etc.) What your education expenses may be could relocation package.” influence what part of town you live in, therefore how much house you buy, and therefore your

| 2 mortgage payment. Families sending their children attractive for Georgia residents attending in-state to private school pay tuition bills averaging $11,000+ public universities here. To read more visit annually for elementary school and $18,000+ www.gafutures.org. annually for high school. Education expenses are major cash flow considerations, so understand how Update Your Will education expenses could impact your long-term Estate tax and probate matters vary from state to financial plan. state. It’s important that your will properly reflect Consider Georgia’s Path2College 529 Savings Plan the state you are a resident of. If you get relocated, your will needs to be updated and possibly amended While saving for college is a major goal for a lot of to comply with Georgia laws. Probate is typically working families, and there are numerous quality not a big issue or expense here. So unless you are plans to choose from, there are tax benefits to planning to keep property outside of Georgia, such funding Georgia’s 529 plan for Georgia residents. as your former residence, a revocable trust may not Married couples in Georgia can take a tax deduction be necessary. The same updating guidance holds true on their Georgia income tax return up to $8,000 per for your financial and health care powers of attorney, child. Single parents can deduct the first $4,000 as these forms and statutory provisions need to they deposit into Georgia’s 529 plan each year, and comply with Georgia’s rules. Of course if you don’t you have until April 15th of the following year to have your estate planning documents in place, use make your contribution for the prior calendar year. this as an opportunity to button up this part of your Review the investment options too – Georgia does financial plan! have age-based asset allocation investment strategies which can be a good option for those who don’t want to worry about managing the investments in their “It’s important that your will properly reflect the 529 plan. The aggressive managed age-based track state you are a resident of. If you get relocated, your will have more stocks throughout the years than the will needs to be updated and possibly amended to managed age-based track which holds more bonds. comply with Georgia laws.” There is also a guaranteed investment option which pays an interest rate of between 1% and 3% annually. If you do rollover your existing plan to Georgia’s Investment Strategy plan, keep in mind you are only allowed one rollover Your investment strategy may also need some fine every 12 months. Finally, if you have children in tuning. If you own municipal bonds in your portfolio high school, you may need to reconsider in-state vs. that are tax-exempt from your original state, they out-of-state college tuition, as your residency has may not be in Georgia so you may want to swap them now changed. Georgia’s HOPE scholarship is very out with Georgia municipal bonds. In Georgia your

3 | capital gains (in non-retirement accounts), interest $860,000 which is up 23 percent in 2019 over the and dividend income is taxable, so consult with a same period one year ago. CPA or financial advisor to understand investment Atlanta’s Buckhead neighborhood has Atlanta’s taxes so you can adjust your portfolio holdings if priciest homes. According to a September 2018 story necessary. While we don’t advocate letting taxes drive in the Atlanta Business Chronicle, the average home investment strategy, it is prudent to be tax aware. sale price in Buckhead is $1.1 million. Since Atlanta has plenty of suburbs with lower-priced “If you own municipal bonds in your portfolio that homes, families can find three- and four-bedroom are tax-exempt from your original state, they may houses for lower prices, generally ranging from not be in your new home state.” $250,000 - $650,000. The commute time to many businesses will be longer, much longer depending Ask for Referrals upon how far OTP (Outside the Perimeter) you live, if your office is ITP. Another trade-off of living OTP is Ask your new coworkers or neighbors for referrals. many high quality public schools are located there, After reading this article you may be looking for new so a family’s education budget can be much lower. tax, financial, and/or legal advisors. One of the best ways to find a qualified professional is to ask trusted Costs to Commute friends or colleagues in a similar job type: “Who have Like anywhere, the costs of commuting will vary you had a good experience working with on your based on whether you own a car vs. ride-sharing and financial planning?” the length of time you are driving and parking. Housing A study by the transportation firm INRIX Inc. shows metro Atlanta motorists paid an estimated $11,578 The cost of housing varies significantly depending on per motorist in 2017 – the eighth-highest cost among where you live in metro Atlanta. 30 U.S. cities studied. Parking, for example, made ITP (Inside the Perimeter) neighborhoods in Sandy up a third of the total cost of vehicle ownership. On Springs and Brookhaven have been enjoying new average, drivers spent more than $3,000 a year on all popularity with home buyers, largely due to a shorter parking-related costs. The national annual average commute to work and new/updated construction. cost of driving was $10,288. The median price of a single-family home in Sandy Springs ITP reflects this trend; it was reported to be

| 4 The morning rush hour in Atlanta starts as early as Authority (MARTA) provides train and bus service to 4 a.m., and it can last as late as 10 a.m., but the worst metro Atlanta. MARTA’s Airport Station connects to of it begins around 6 or 7 a.m. In the evening, you Hartsfield-Jackson at the west end of the Domestic can expect the worst traffic from 3:30 p.m. to as late Terminal between Domestic Terminal North and as 7:30 p.m. Domestic Terminal South baggage claim areas. For more information, visit www.itsmarta.com. Lifestyle Here is a fact sheet about the airport: Tip - Get a Traffic App https://www.atl.com/about-atl/atl-factsheet/ The best way to find out how bad the traffic is before you leave home or work is by using a traffic app. The Atlanta’s Thriving Foodie Scene WSB-TV traffic app has real-time information about For all foodies, Atlanta has a flourishing food scene. the roads, or you can use Waze to find out what your Just about any neighborhood of the metropolitan best route is. Waze uses crowd sourced data from area will have unique, locally-owned restaurants. drivers out on the road to help you find the quickest Each October, the Taste of Atlanta is the city’s way to your destination, and it will reroute you if it must-do food, wine, beer and cocktail festival that finds a better way once you are on the road. It can showcases the diversity of the city’s restaurants. Over also help you avoid any issues that increase traffic three days, more than 90 neighborhood favorites will problems, such as accidents or road work. show off their most craveable dishes, the hottest local Hartsfield-Jackson International Airport chefs will strut their stuff on four live demo stages, Named after two former Atlanta mayors, the airport and patrons can sample craft beers, wine and creative is the largest in the world – in terms of flights and cocktails. Taste of Atlanta patrons will enjoy: passengers. That’s because it’s the hub for Delta • Good eats from some of the Best Airlines. It has direct flights to most US cities and Atlanta Restaurants more than 75 international destinations in 50 • Live cooking demos and conversations on The countries, making business and vacation travel easier Chef’s Table stage than most airports. The airport is a two-hour flight or • Hands on cooking classes in The less to roughly 80 percent of the US population. Kitchen Workshop The airport is located seven miles south of downtown • Home Plate Stage with interactive cooking Atlanta. The Metropolitan Atlanta Rapid Transit demonstrations and hands on activities for the whole family.

5 | Georgia Aquarium Truist Park Stadium

For those seeking more information about food and Family Activities restaurants in Atlanta, here are some news stories, websites and blogs to check out: Atlanta has plenty of activities for families and children of all ages. Here are some of the top family Is Atlanta the South’s new foodie capital? activities in Atlanta: https://www.cnn.com/travel/article/atlanta-food- scene/index.html Georgia Aquarium Here is the Zagat guide to best food in Atlanta: The world’s largest aquarium, it houses more than https://www.zagat.com/l/best-food-in-atlanta 100,000 aquatic creatures, including the largest in the ocean - whale sharks. You can see rare albino Check out the Atlanta Journal-Constitution alligators and watch as trainers interact with restaurant blog for a summary of new developments: California sea lions. https://www.ajc.com/things-to-do/atlanta- restaurants-blog/ High Museum of Art Family and Cultural Activities Known for its works by 19th-century French masters and an extensive collection of 19th- and 20th-century Professional Sports American art. There is also a significant collection of Atlanta has professional sports teams in baseball, European paintings and decorative art, and newer football, basketball and soccer, including the 2018 additions include modern and contemporary art, Major League Soccer champion Atlanta United. The photography, and African art. The museum forms Atlanta Falcons and Atlanta United play their home part of the Robert W. Woodruff Arts Center and hosts games at Mercedes-Benz Stadium (which hosted an annual film series featuring foreign, independent, Super Bowl 53). The Atlanta Braves play at SunTrust and classic cinema. Park and the Atlanta Hawks play at State Farm Arena. The World of Coca-Cola Atlanta is also home to the College Football Hall Illustrates the history and progress of the world- of Fame and hosts the Southeastern Conference famous drink in entertaining ways that will please Championship Game in December. all. You can sample over 100 different beverages and visit the Vault of the Secret Formula.

| 6 Piedmont Park Chattahoochee River recreation

Martin Luther King Jr. National Historic Site The Center for Puppetry Arts

Two landmarks in downtown Alanta are now A hands-on museum with a large collection of protected as a National Historic Site honoring puppets from around the world. Some of the civil rights icon Martin Luther King, Jr. They displays include Chinese hand puppets and African include his birthplace at 501 Auburn Avenue, rod puppets. which dates from 1895, and the Ebenezer Baptist Fernbank Museum of Natural History Church on Jakson Street, in which he and his father were ministers. Portrays the nature and environment of Georgia. Center for Civil and Human Rights Some of the most eye-catching exhibits at the museum are the huge dinosaur statues at the Atlanta’s place in the American Civil Rights entrance and the dinosaur skeletons in the Great Movement of the 1950s and 1960s is marked by a Hall. It’s also home to Atlanta’s biggest movie screen! beautifully conceived interpretation center/museum that places this epic struggle into the greater Vacation and Weekend Destinations Within worldwide movement for human rights. Driving Distance Vacations spots on The Atlantic Ocean or the Gulf of The Atlanta Botanical Garden Mexico are accessible within just a few hours drive. Offers a lovely space with a variety of well laid Beaches on Florida’s east coast, such as Ponte Vedra, out gardens, including formal flower beds and just north of Jacksonville, or Hilton Head Island majestic trees that frame the urban landscape of in South Carolina, are only a 5-6 hour drive. These Midtown Atlanta. beaches are considered among the most pristine on the East Coast and have excellent accommodations. Zoo Atlanta And if you want to drive south and spend time on Offers memorable encounters with more than 1,000 the Gulf of Mexico, drive time is about the same to animals from around the world. Zoo highlights Florida’s Panhandle. include giant pandas, including Ya Lun and Xi Lun, For those looking to spend vacation time at Disney a set of twins born to Lun on September 3, 2016; one World, Orlando is approximately an eight-hour drive of North America’s largest zoological populations of from metro Atlanta and can easily be done in one day. great apes; and a global center of excellence for the care and study of reptiles and amphibians.

7 | For hikers, the Appalachian Trail travels 78.6 miles Who Is Brightworth? in Georgia, beginning at the southernmost blaze at Brightworth is a nationally Springer Mountain. Departing Springer Mountain, recognized, fee-only wealth the Appalachian Trail follows its iconic, white trail management firm with offices blazes through the southern Appalachian Mountains, in Atlanta, GA and Charlotte, meandering through North Georgia’s rolling Blue NC. The wealth advisors at Ridge Mountains and exploring some of this state’s most beautiful terrain. Brightworth have deep expertise across the financial disciplines, For those seeking an urban getaway, it’s roughly a four- allowing us to provide ongoing, hour drive each to Charlotte and Nashville. comprehensive financial advice We know that every state considers themselves the to families across the country. best in the nation, but we really do feel that Georgia has something to offer everyone. From the beautiful and historic coastline, to the winding trails of the Appalachian Mountains, all the way to the excitement of city life in Atlanta. There’s always something to see and do, and wonderful people to meet. Now that you’re here, we hope you’ll reach out with any questions. We’re happy to help you feel at home. From all of us here at Brightworth, welcome!

This information is provided as a guide to assist you in your financial planning. The specific examples are provided for illustration purposes only and are not representative of specific investments or guarantees of future returns. Please consult with a professional for specific questions regarding your particular situation.

3344 Peachtree Road NE, Suite 2000 | Atlanta, Georgia 30326 | 404.760.9000 brightworth.com

Rev 2020.10