Author Topic: Alaska  (Read 15918 times)

SimpleCop

  • 5 O'Clock Shadow
  • *
  • Posts: 1
Alaska
« on: March 13, 2013, 11:16:55 PM »
As I am getting close to retirement in my early 30's, I am going to need a cheap place to live and enjoy my free time. Of all the places I have considered, Alaska is looking the most appealing. While I know it isn't for everybody, it certainly looks like a more interesting and adventurous lifestyle then anywhere else I have been eyeing.

I know most people think of Alaska as ridiculously expensive, but it can also really cheap if you are in the right areas. There is no income or sales tax, and many areas do not have property taxes. I could buy a nice piece of land for 10-40k, plus they pay residents $1,000 or more a year from oil revenue.

As I have researched it more, it looks like there are quite a few people living very Mustachian lifestyle in Alaska, only they don't call it that. These two posts were particularity interesting to me:
http://www.nytimes.com/2009/12/31/garden/31yurt.html?pagewanted=all&_r=0
http://akzeigers.com/blog/?p=1326

It seems like a mustachian lifestyle would be a lot more normal here then most other places in America. I know where I live now people laugh at the idea.

What do you guys think? I have never seen Alaska mentioned as a good place for early retirement, but it is looking like a good fit for me.

They only downsides I see is that it is cold and dark for half the year. Other then that, it looks ideal.

strider3700

  • Pencil Stache
  • ****
  • Posts: 516
  • Location: northern BC
Re: Alaska
« Reply #1 on: March 14, 2013, 01:14:59 AM »
coming from the gray and wet west coast  don't under estimate the cold and dark for half a year part.   It can be brutal to one's mental health.   I think it would be an awesome adventure but I know my wife could never handle the dark as she can barely handle the clouds here.

Rangifer

  • Stubble
  • **
  • Posts: 118
Re: Alaska
« Reply #2 on: March 14, 2013, 01:20:22 AM »

I know most people think of Alaska as ridiculously expensive, but it can also really cheap if you are in the right areas. There is no income or sales tax, and many areas do not have property taxes. I could buy a nice piece of land for 10-40k, plus they pay residents $1,000 or more a year from oil revenue.


Yep, you can find cheap land in the middle of nowhere but everything else is expensive. And the further out you go the pricier it gets.

With that said, I'm actually making the move there in the coming months. Not to retire, though...
« Last Edit: March 14, 2013, 01:22:14 AM by Rangifer »

KGZotU

  • 5 O'Clock Shadow
  • *
  • Posts: 81
Re: Alaska
« Reply #3 on: March 14, 2013, 02:29:59 AM »
That's some Thoreau shit right there.

Working in bush Alaska, I can confirm that it's possible to live cheaply here. I eat on the beneficence of the US Postal Service, shipping in rice and beans at around a dollar a pound. The thing that kills is the heating. That's covered by my employer, but costs are high if you're the one paying. If you want to cut your own wood you're welcome to, within legal bounds. But you have to ask whether you're going to enjoy chopping that much wood, and if not whether it's worth the lack of a sales tax. Likewise for chipping ice and hauling water in the winter, etc.

If you're just talking costs, then you could live a lot cheaper anywhere else. The cost of shipping and transport will far more than nullify any tax advantage. Some people just have the Alaskan dream, though, in which case I'd just say find a way to try it out before you buy yourself a commitment.

jpluncford21

  • 5 O'Clock Shadow
  • *
  • Posts: 83
  • Age: 39
  • Location: Tennessee
Re: Alaska
« Reply #4 on: March 14, 2013, 08:07:27 AM »
I didn't read your article, but I spent two years all over the interior and costal areas of AK, and I will say that it is expensive as well. Food, beer, housing, utilities; they are all more expensive there. I am not 100% sure they just give you 1k outright for living there either (plus that will not come close to offsetting your cost of living). I think there are more deductions during tax season, but you obviously have to live there for a year before you can claim that. I have been looking into living off the land there as well, but you really have to know your stuff if you are going to do that. I agree that people underestimate the weather there. I have been in Anchorage when it was 70 F in June and -40 F in Feb. The long dark winters may also make you depressed. My friends and I actually considered going to the tanning bed one winter, just to get some UV rays.
It is, however, like no place I have ever been. I had some really good times there, and had the opportunity to see things and meet people I will always remember. There are a lot of opportunities in the life science field, and pay is usually higher bc of COL. I would suggest visiting for a few weeks just to feel it out. Just my .02

meadow lark

  • CM*MW 2023 Attendees
  • Walrus Stache
  • *
  • Posts: 7825
  • Location: Louisiana
Re: Alaska
« Reply #5 on: March 14, 2013, 09:49:53 PM »
Alaska for the summer, Hawaii for the other 10 months would work for me...

jpluncford21

  • 5 O'Clock Shadow
  • *
  • Posts: 83
  • Age: 39
  • Location: Tennessee
Re: Alaska
« Reply #6 on: March 15, 2013, 06:01:06 AM »
Alaska holds a sweet spot in my life, so I've been thinking about this one. I second Meadow Lark, Alaska in the summertime is amazing! Except for the pterodactyl size mosquitoes. I looked at that article, and I can't imagine being in the interior during winter in nothing but a glorified tent. I didn't notice anything about how they heated that thing, but I can't imagine it heating very well...I could be completely wrong though. I had a friend in Dutch Harbor that spent a summer camping and building a round cabin outside of Fairbanks, but that's about as basic as I would go. You can find blogs where homesteaders mention wood burning stoves getting the temp of cabins up to a balmy 50 degrees in winter....a balmy 50 degrees! I guess that is hot when its -30 outside.

rue

  • 5 O'Clock Shadow
  • *
  • Posts: 18
Re: Alaska
« Reply #7 on: March 15, 2013, 06:09:10 AM »
Just throwing in a wild card........there are some awesome places in Australia where you can live relatively cheaply.  Just wondered why you havent looked internationally if you will  be FI, young and qualified (for visa purposes)

MrSaturday

  • Stubble
  • **
  • Posts: 138
Re: Alaska
« Reply #8 on: March 15, 2013, 11:31:26 AM »
I guess that is hot when its -30 outside.

I was in Fairbanks once in December and saw some locals out and about in shorts when it got up to -10 degrees.

KimAB

  • 5 O'Clock Shadow
  • *
  • Posts: 79
Re: Alaska
« Reply #9 on: March 15, 2013, 02:20:07 PM »
Maybe the people in Alaska could say how much they pay for a gallon of milk or a pound of any fresh fruit or veg.  :-) 

wascalwabbit

  • 5 O'Clock Shadow
  • *
  • Posts: 1
Re: Alaska
« Reply #10 on: April 30, 2013, 11:40:10 PM »
if you plan on living of the land (mostly) then this is entirely possible and very cheap. through very few people are able to live that sort of life. you would have to hunt and fish and process the meat your self. grow veggies in the summer and yes, cut a lot of wood. if that is not what you had in mind then I would look elsewhere to retire, it will most certainly blow your budget.
good luck.

NumberJohnny5

  • Pencil Stache
  • ****
  • Posts: 780
Re: Alaska
« Reply #11 on: May 01, 2013, 02:37:39 AM »
Maybe the people in Alaska could say how much they pay for a gallon of milk or a pound of any fresh fruit or veg.  :-)

There are Walmarts and Fred Meyer's in populated areas. Anchorage has Target, Kohl's, Costco, Sam's Club, etc. Fairbanks doesn't have as much, but still has Walmart, Fred Meyer (two actually), and a Sam's Club. Seems very bike friendly in both cities, though I only have experience walking.

As for prices, very similar to back in Tennessee. Some things are noticeably more expensive, but most seemed 10% more at most (no state sales tax made that a wash). Fuel did cost noticeably more, but it wasn't jaw-dropping expensive.

I've heard that truly remote areas can be significantly higher. I guess I didn't go anywhere that remote.

Dynasty

  • Stubble
  • **
  • Posts: 190
Re: Alaska
« Reply #12 on: May 01, 2013, 11:55:39 AM »

I know most people think of Alaska as ridiculously expensive, but it can also really cheap if you are in the right areas. There is no income or sales tax, and many areas do not have property taxes. I could buy a nice piece of land for 10-40k, plus they pay residents $1,000 or more a year from oil revenue.

They only downsides I see is that it is cold and dark for half the year. Other then that, it looks ideal.

If you have a VA disability rating of 50% or greater, there are no property taxes.

One must be a state of Alaska Resident for two years to get oil revenue cash.

Lots of fish and cod liver oil, sun lamps, and indoor hobbies for the long winters.

Housing is expensive there. Not San Francisco or Manhattan expensive, but expensive. So are heating fuel costs. I'm not 100% positive, but I think the state may subsidize that partly. And I'm not sure if it is included in the oil revenue cash.

Milk is expensive, since the weather there is way too cold for cows to survive.

Might want to take a vacation there for a little while before deciding to move.

What is your passive income situation to afford early retirement?

AccidentalMiser

  • Pencil Stache
  • ****
  • Posts: 704
  • Age: 56
  • Location: SE Tenn
Re: Alaska
« Reply #13 on: May 01, 2013, 02:49:35 PM »
There are other really cheap places to live.  I've lived in a few of them.  For my money, I will never leave the Chattanooga, TN area.  The only thing expensive here is sales tax.  Living a mustachian lifestyle helps with that, of course.  There are any number of small towns where you can pick up a decent place to live for under 100k (sometimes well under.)  Beautiful countryside, mostly friendly people, low crime (outside the city), cheap utilities, lots of great places to walk and bike.  The winters are mild.  Summer is hot but not terrible.

We also lived in Wisconsin for several years.  I disliked the winters intensely but I am a warm weather guy.  Alaska is beautiful, that's for sure, but I wouldn't want to deal with those winters.

The great thing about being under 40 and having FU money is that you can pack up your stuff and move somewhere else if you want (or so I've heard!)

Roland of Gilead

  • Handlebar Stache
  • *****
  • Posts: 2454
Re: Alaska
« Reply #14 on: May 01, 2013, 05:01:56 PM »
There are two places we plan to live when we ER...Alaska and the Florida keys.

I know they both will be expensive...probably will try one year in Alaska and maybe six months in the keys (unless I lose my shaker of salt)

Rangifer

  • Stubble
  • **
  • Posts: 118
Re: Alaska
« Reply #15 on: May 19, 2013, 07:16:39 PM »
Update: Yep, everything is expensive in Alaska. Gas is $3.99 for regular right now and food is considerably more than in the lower 48 (for some perspective, 80/20 ground beef is $5.99/lb). Stuff is cheap enough, though, with people either moving out of state or those oil workers with more money than sense.

CU Tiger

  • Bristles
  • ***
  • Posts: 462
  • Location: Mid-Atlantic USA
Re: Alaska
« Reply #16 on: May 19, 2013, 07:52:20 PM »
If you are healthy it may be awesome...but I have a friend who lives there, and she has to travel outside the state to see specialists. It really isn't all that mustaschian to have to FLY to a doctor's appointment.

FirePaddle

  • 5 O'Clock Shadow
  • *
  • Posts: 63
Re: Alaska
« Reply #17 on: December 02, 2013, 03:12:12 PM »
I've lived in Fairbanks AK for 10 years now.  It's a great place to live, especially if you are the out of doors type, and salaries are generally highish.  Only recently, once we got into MMM, have we thought about the true costs of living here.  When you look at other similar wintery places like WI, MN, and MI, the cost of living, at least according to the websites, is 30% cheaper than in Fairbanks.  Most of that comes from heating, housing, food, and health care costs I believe.  One of our scenarios involves living here until we ER around age 40, then move to a lower cost of living location such as the above, as we do still love winter.

Truly living off the land is a whole other ballgame up here.  You do need skills, but also a deep knowledge of the land and it's creatures, which really only comes with time spent here.

nedwin

  • Stubble
  • **
  • Posts: 141
Re: Alaska
« Reply #18 on: December 03, 2013, 05:49:57 PM »
I lived in Anchorage for a few years.  Prices were generally 20% more than I was accustomed to in Colorado, where I moved from.  Unleaded was usually $.40 more per gallon in Anchorage.  The further you are from Anchorage, the higher prices go.  There is very little agriculture, so most food is imported from Seattle.  Utilities were also more expensive, and if you have to heat with fuel oil forget about it.  There are ways to make it cheaper, but like most things it requires significant effort on your party to make it work.  Alaska is also a 6 hour (or more) flight from most places in the lower 48, so if you will still have family there travel to visit them can be expensive.

We were able to reduce our food budget some by hunting and fishing for much of our protein, although we spent more driving to places to fish and on the equipment and licenses.  We also paid more for a boat, but that's another story entirely.  With some practice it is not difficult to fill your freezer with enough salmon for a year, provided you live near enough to a river that has salmon runs.  Add some $$ to the budget and you can also be successful fishing for halibut in the ocean.  If hunting is your thing, 1 moose can provide a lot of meat.  But there isn't one for every hunter that tramps through the woods. 

I suggest you look at the Alaska Outdoor Forums also (http://forums.outdoorsdirectory.com), there are a couple topics on it about moving to and living in Alaska.  The rest is dedicated to hunting, fishing, and recreating in Alaska.  The summarized advice on that forum for your questions would be to move up there and rent for 1 year before you commit by buying real estate, so that you experience all the seasons, learn more about where in the state you would like to live and also learn whether Alaska is right for you.  I think this is very sound advice.

More specific responses to your post are below.

I know most people think of Alaska as ridiculously expensive, but it can also really cheap if you are in the right areas. There is no income or sales tax, and many areas do not have property taxes. I could buy a nice piece of land for 10-40k, plus they pay residents $1,000 or more a year from oil revenue.

It is true there is no state income tax.  As for sales tax, that depends where you are doing your shopping.  There is no state sales tax, but some local governments have sales taxes.  For example, Wasilla has a sales tax, and Palmer might also.  I think there is a seasonal sales tax in Kenai or Soldotna, maybe both.  Property taxes also depend on where the property is.  Land with no property tax is generally off the road system or remote, and you may not be able to reach it with conventional transportation.  Think boat, airplane, snowmachine or ATV.  You MUST inspect those $10k-$40k pieces of land before you buy, preferably during the summer and with some knowledge of permafrost.  Half of a "nice piece of land" may be unbuildable swamp, and the other half unbuildable permafrost.  I suspect that as you start looking at those places, only the more expensive may be ideal for building.  To be eligible for the permanent fund dividend (free oil revenue $), you must have lived in AK for a calendar year (Jan. - Dec.).  You apply before the end of March the following year, and it is paid in October.  So you must be in Alaska for at least 22 months before you will receive this.  The 2012 dividend (paid Oct. 2013) was $900.


They only downsides I see is that it is cold and dark for half the year. Other then that, it looks ideal.  This is nothing to sneeze at.  It's been mentioned already, but the dark can seriously affect your mental health.  There are ways to help, like vitamin D and UV light.

Random

  • Stubble
  • **
  • Posts: 125
Re: Alaska
« Reply #19 on: December 03, 2013, 06:43:15 PM »
I have lived in Anchorage for almost 30 years.  It is a great place to live in many, many ways.  It is not an inexpensive place to live as many have noted.  And Anchorage (and nearby road connected areas) is a cake walk compared to life in remote communities.  Housing can be expensive.  Food is expensive.  Any type of fuel is expensive.  Travel is expensive.

But a life surrounded by the wilds, a freezer full of salmon, amazing x-c and back country skiing, great people - you can't ask for better.

rachael talcott

  • Bristles
  • ***
  • Posts: 314
  • Age: 49
  • Location: TN
Re: Alaska
« Reply #20 on: December 04, 2013, 08:24:58 PM »
I grew up in AK and my parents were pretty mustachian.  Yes, hamburger is expensive (and don't even think about watermelon) but salmon is cheap.  We had some friends who had a fish wheel and fed their sled dog team off of what they caught.  My dad got a moose most years, and there's a LOT of meat on a moose --more than enough for a family for a year.  We had an extensive vegetable garden and growing food was much easier there than anywhere I've lived in the lower 48.  It's dark in the winter but light until midnight in the summer, which is great for veggies.  There are some things you can't grow (tomatoes) but you can do well with root veggies and crucifers (broccoli, etc). 

My parents grew up in the midwest and had no idea how to do any of these things before moving there in their early 20's.  My dad especially had a blast.  He learned hunt and fish and fly a plane and build a house.  If you're into that kind of thing, it's a great place.  If you're not, not so much.   Alaska is a state of mind :-)