In a time when many are struggling to make ends meet, one person has found a way to live for free – and it’s all thanks to Alaska’s Permanent Fund Dividend. Alaska is the only state in the US with a personal income tax, and it also happens to have the largest sovereign wealth fund in the country. This fund is made up of oil revenues and is used to pay a yearly dividend to every resident of the state. In 2018, that amount was $1,600 – and it’s only increasing. For one person, this yearly payment has allowed them to quit their job and live rent-free in Alaska. Read on to find out how they’re doing it and how you can too.
What is the Permanent Fund Dividend?
The Alaska Permanent Fund Dividend (PFD) is an annual cash payment made to eligible residents of Alaska. The PFD is funded by the earnings of the Alaska Permanent Fund, a state-owned investment fund.
The PFD program was established in 1976, and dividend payments began in 1982. Since then, over $26 billion has been paid out in dividends. In 2019, eligible residents received a dividend of $1,606.54.
To be eligible for the PFD, applicants must have lived in Alaska for at least one calendar year (January 1 – December 31) as a resident, as well as meet other requirements such as being 18 years of age or older and having no felony convictions.
The PFD is not considered income for federal or state tax purposes.
How to Qualify for the Permanent Fund Dividend
In order to qualify for the Alaska Permanent Fund Dividend (PFD), one must have lived in the state for at least one full calendar year as of January 1st of the dividend year. Additionally, one must have been physically present in the state for at least 180 days in total during the preceding calendar year, and 60 days during the current calendar year. PFD payments are made to eligible residents each October.
What Are the Pros and Cons of Living in Alaska?
There are pros and cons to living in Alaska. On the plus side, the state offers a very generous Permanent Fund Dividend (PFD) program, which gives every resident an annual payout from the state's oil and gas royalties. Additionally, Alaska is a beautiful state with plenty of outdoor activities to enjoy. However, there are also some downsides to living in Alaska. The cost of living is high, especially in rural areas, and the winters can be long and dark.
Where to Live in Alaska
Assuming you would like tips for finding the best places to live in Alaska:
1. Do your research- Alaskas landscape is vast and varied, from its cold ocean coastline to its boreal forest to the tundra of the north. Youll want to decide which type of environment youre looking for before you start your search.
2. Consider your budget- While Alaska is known for being an expensive state, there are ways to cut costs. If youre willing to live in a remote location, you can find more affordable options.
3. Think about your lifestyle- Are you looking for a quiet, rural lifestyle or do you prefer being closer to the action? There are many small towns and cities scattered throughout Alaska, so finding the right fit will depend on your preferences.
4. Know your needs- Make sure to consider things like healthcare accessibility and proximity to shopping and other amenities when choosing where to live. This is especially important if youre moving to Alaska from another state.
5. Use resources- The internet can be a valuable tool for research, but talking to people who already live in Alaska can be even more helpful. Ask around for advice on the best places to live based on your individual needs and wants.
How to Prepare for Life in Alaska
If you're thinking about moving to Alaska, there are a few things you should know in order to prepare for life in the Last Frontier. Here are a few tips on how to get ready for your big move:
1. Learn about the climate. Alaska is known for its cold weather, so be sure to pack plenty of warm clothes. It's also important to know that the state has long winters and short summers, so you'll need to be prepared for both extremes.
2. Know your options for housing. Unlike other states, Alaska doesn't have many traditional neighborhoods. You'll likely be living in a rural area, so research different types of housing options and find one that best suits your needs.
3. Get acquainted with the wildlife. Because Alaska is such a large and wild state, there are plenty of opportunities to see wildlife up close and personal. However, it's important to learn about the animals before you encounter them, as some can be dangerous if not respected.
4. Study up on Alaskan history. The state has a rich history dating back to its time as a Russian territory. By learning about the people and events that shaped Alaska, you'll have a better understanding of what life is like in the state today.
5. Know your transportation options. Driving in Alaska can be challenging due to the state's vast size and rugged terrain. Be sure to familiarize yourself with different modes of transportation so you can get around
Conclusion
There are a lot of misconceptions about living in Alaska and getting free money, but the reality is that it can be a great way to live. If you're willing to put in the work, you can reap the rewards of free money and a beautiful setting. So if you're considering making the move to Alaska, don't let the myths stop you — it could be the best decision you ever make.
