When you think about moving to Alaska, the first thing that comes to mind is the hefty cost involved. If moving to America’s last frontier is on your radar, you need to plan the move carefully. When moving your family and household goods to Alaska, you will encounter several challenges. For example, you might have to use the waterways to ship your belongings. The distance is also a factor contributing to the high cost of moving.
Thanks to the Alaska Permanent Fund Corporation, you don’t have to break the bank to move to your dream destination. You will get partial funding, which may come in handy to offset some of the costs you need to move and settle in Alaska.
What is APFC?
The Alaska Permanent Fund Corporation (APFC) is a state-owned corporation established to manage the Alaska permanent fund (APF). It was established in 1976 after Alaskans dedicated 25 percent of the oil earnings to a permanent fund. The aim of creating the fund was to safeguard the future of generations to come.
The APFC has divided the fund into two categories, principal and earning reserve, invested under the same asset allocation. The principal is only used for income-generating activities, while the earnings reserve is for appropriation.
Some of the sources of growth for the fund include:
- Special legislative appropriation.
- Royalties- At least 25% of the state’s mineral royalties must be deposited into the principal (non-spendable) account.
- Inflation proofing- These are the funds transferred to the principal from the reserve account in line with legislative appropriation and legal calculation.
- ‘Paper’ profits or losses- The capital gains or losses on assets since their acquisition date.
The corporation aims at achieving a 5% annual rate of return on investment. To achieve this goal, the board invests the funds in different investments vehicles. However, the value of the permanent fund fluctuates depending on market trends and movements.
The realized gains are deposited to the earnings reserve account, whereas the unrealized gains and losses are treated as the principal. The funds in the earnings reserve account are used for:
- Inflation proofing the principal
- Paying dividends to successful applicants
- Footing operational costs
- Making specific appropriations to the principal
Due to the high cost of living in Alaska, the state government uses the permanent fund to pay annual dividends to residents. The dividends range from $331 to $2072 annually for each person. For example, the Alaska Department of Revenue paid $1600 per person in 2018.
The dividend is paid to qualified applicants, and every permanent resident qualifies to apply. If you want to get the dividend when moving to Alaska, you must ensure you are not claiming residency in another state.
Want to Move to Alaska? We are Ready to Make it Easy for You!
Moving to Alaska can be stressful, considering the long distance. However, at Golden North Van Lines, we are here to get the burden off your shoulders. We will carefully load your belongings into the trucks and move them carefully to your dream destination. Fill out our online contact form or call us at 907-349-3511 to speak to our professional movers.