Living Large, Moving Smart: Relocation Guide

Travel. It isn't just a part of the lifestyle for athlete and entertainers; it's in the job description. Imagine scoring a deal with a team in another state, or landing a leading role in a movie that shoots in a different city. It's not a quick in-and-out trip. No, you’ll likely be away for three, five, maybe even eight or nine months a year — long enough to consider a temporary or permanent relocation.

For many hustling to the top, relocating is all part of the dream. But in reality, it’s part of the grind, too. There are countless details to figure out. And from a financial standpoint, it's a whole new ball game: from juggling different living costs to weighing new state tax hurdles.

Here's the rundown on how to manage the money side of your big move:

So, you’re thinking of buying? That's some serious adulting right there. But now, there’s a whole lot to weigh: interest rates, closing costs, and a lot of other homebuying jargon you need to know. A financial advisor can give you the lowdown on that side of things, and for broad-strokes there are some pretty cool online calculators you can check out too. But for young athletes and entertainers, there’s more to it:

Feeling flexy?

What's your game plan for the future? Are you sticking to your city like glue, or are you ready to bounce for the next big opportunity? What happens, for example, when you're killing it on Broadway, then suddenly Hollywood comes calling? Or what about if you’re drafted onto a team, buy a house, then boom, you are traded the next season. Not exactly the dream scenario, right? These days, a lot of athletes and entertainers maintain a primary residence in their home city while renting or subletting in the new location.

Ready to lock it down?

Take a good look at your bank account. Buying a home means not only dropping some serious cash upfront (aka a down payment), it often also means locking into a long-term home loan (aka a mortgage). With how unpredictable pro careers can be at times, you need to make sure you’ll be comfortable with your monthly payment for the long-haul. Renting, on the other hand? Way less of a financial gut punch, which might make it a smarter move if you’re still sorting all that out.

Portfolio power move?

Let’s talk long-term hustle. Buying a home can build that equity over time, but renting gives you the freedom to invest your cash elsewhere — stocks, bonds, or maybe even that side hustle you’ve been dreaming about. Likewise, when you rent, your landlord’s got your back on that leaky faucet or busted AC unit. It's like having a personal handyman on speed dial.

Cost of living is, well, exactly what it sounds like: the total of all your expenses that includes housing, food, transport, and fun. Simple enough. But moving from a regional city to a major metropolis means these costs can swell big time. For things like housing, it’s fairly simple to look up the going rates. And while there are online calculators out there to help you compare your current expenses with what you’ll face in your new city, it’s hard to get a totally accurate picture until after you move. You might find some pleasant surprises or costly shocks. (Another reason renting for a bit might make sense).

But one important thing to keep in mind: Don’t get blindsided by hidden costs. Security deposits, moving fees, new furniture, utilities, maintenance, repairs, cleaning. It can all add up quicker than you can say, “Oh snap!”

Thought only the IRS collected taxes? Nope. Many states and localities (like cities and counties) do too. But rules vary state by state and locality by locality, so the tax landscape can change drastically depending on where you lay your hat. While some states don’t have a personal income tax, others charge a pretty penny for the pleasure of residing in-state. And we’re not just talking income tax here. Brace yourself for property taxes, sales taxes, and even sneaky fees like vehicle registration. If taxes seem like a wild ride, let’s just say every state and locality has its own twist. So while you can look up state and local tax figures online to see how your take-home pay will be affected, for more in-depth advice you should consult with a tax pro.

Tax breaks

Now, it’s not all doom and gloom. Because when you travel or even relocate for work, these expenses may be deductible. Think deductions and credits for travel costs, movers, lodging, and more. So, if you’re making moves for your next blockbuster, make sure you’re cashing in on those deductions.

Dual residency. Dual headache?

This is where things get tricky. But let’s say you’re living the high life in both LA and NYC, soaking up the vibes of both coasts. Depending on how long you spend in each place per year, you might be considered a “dual resident.” That means you’re going to have to navigate the tax game in not one, but two states and multiple localities. Again, each state and locality has its own rules, so make sure you’re staying on top of things to keep your finances in check.

1. Read The Fine Print —Take a deep dive into your contracts and chances are, you’ll find relocation clauses. Some might hook you up with moving assistance or cover certain expenses. Knowing these details upfront can save you money, prevent major headaches and keep your move stress-free.
2. Do Your Homework — Before you dive headfirst into your new digs, research your new city or state to understand the cost of living, housing market, and local amenities. We’ll say it one more time: online calculators are your friend.
3. Tap Into Your Network — You're not in this relocation game alone. So reach out to your agents, team officials, production companies, and other advisors. And don't sleep on your fellow athletes or entertainers who've been there, done that. Their firsthand wisdom and tips can help make your move smooth as silk.

When you chase dreams, sometimes you have to move cities. For athletes and entertainers, that's just another day at the office. But it's also more than just a change of scenery. Financially, you have to figure out whether to buy or rent, tackle new budgets and navigate new tax rules. Flexibility is key, but so is financial stability. The key is to do your homework and tap into your network for support — whether it’s your agent, professional advisors, or even fellow industry pros.

CRC# 3815457 09/2024