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Most Iconic Road Trips in Every State

Written by Adam on April 28, 2021. Updated April 21, 2021.
20 min read. Travel, Spotlight.

I love road trips. I grew up with road trips from our home in Florida to almost everywhere in the US – from Maine to Washington state. There’s still a special place in my heart for being stuck in a car for 12 hours a day for weeks on end. This week’s post by Monica from Planner At Heart highlights some of the best road trips from around the country. There are more than a few on here that I can’t wait to try next time I’m headed that way!

Hitting the road to get away from it all and explore new places has never felt more thrilling. These trips offer an adventure for everyone from stunning coasts to epic mountains or even music and bourbon trails. If you have a weekend, a week, or a month, there’s a trip for you. Whether you’re looking for roads less traveled or a cheaper way to vacation, here’s The Most Iconic Road Trips in Every State to inspire your next holiday.

1. Alabama’s Mobile to Fort Morgan

Mobile is less than two hours from the white sand beaches of the Gulf Coast and is perfect for a weekend road trip. Take I-10, Baldwin Beach Express to Foley Beach Express, and you’ll be on island time in no time. En route to the shore, see over 500 animals at Alabama Gulf Coast Zoo. Explore the 32-mile long peninsula of sugar-white sand beaches, watch for dolphins, fish, or visit the 200-year-old Fort Morgan on the coastal roads of AL-180 and AL-182.

2. Alaska’s Anchorage to Seward

Alaska is a regular destination on people’s bucket lists. Whether you’re looking to extend a cruise or prefer road trip vacations, driving the Seward Highway is awe-inspiring. From Anchorage, the Highway passes between the shoreline and Chugach Mountains’ giant peaks. Along the route, take your pick of National Heritage areas to explore and immerse yourself in the history of the determined people who have lived in this land.

3. Arizona’s Phoenix to the Grand Canyon

While you could drive this stretch of I-17 in about 4 hours, give yourself a week to explore all its beauty. From Phoenix, head north to the Montezuma Castle National Monument. Next, spend two or more days in Sedona to explore the 1.8 million-acre Coconino National Forest, a stunning mix of red rocks and pine forests. Enjoy Flagstaff’s college culture and star gazing at Lowell Observatory. For a grand finale, explore the South Rim of The Grand Canyon 90 minutes away.

4. Arkansas’ Eudora to Ohama County

Travel the entire length of the state on a 300 mile Great Highway 65 Road Trip. U.S. 65 passes by some of Arkansas’ most popular attractions. Starting in the state’s southern delta, drive north to Pine Bluff, with museums, history, and numerous family-friendly attractions. Continue to Little Rock, and explore the state capital and the Clinton Presidential Library and Museum. Next, hike Pinnacle Mountain to take in the views at the top of East Summit Trailhead. On your way to Clinton, stop at Woody Hollow State Park. As you finish your road trip, see the infamous Natural Bridge of Arkansas, and spend a day canoeing on the Buffalo National River.

5. California’s San Francisco to San Diego

California’s Pacific Coast Highway is perhaps the most famous road trip in America. Enjoy all that California has to offer over a 600-mile two-week trip. Explore large cities like San Francisco and Los Angeles, small towns like Cambria and Manhattan Beach. Savor Santa Barbara wine country, magnificent mountains of Big Sur, the glamour of Hollywood, and the opulent beach towns of Orange County. End your trip with the picture-perfect weather and family-friendly attractions of San Diego.

6. Colorado’s National Parks Loop

This epic week-long road trip allows you to see stunning destinations like Red Rocks Canyon and Garden of the Gods near Colorado Springs and four of our country’s beautiful National Parks. Start and end in Denver not only for the convenience of their international airport but a bustling downtown and craft beer scene.

As you leave Denver on I-25 South, stop at Colorado Springs’ sandstone rock sites on your way to Great Sand Dunes National Park. Next, take-160 West to Mesa Verde National Park, known for its well-preserved Pueblo cliff dwellings. As you make your way back north on CO-145 and US-550, enjoy the dramatic mountain views while hiking the Black Canyon of the Gunnison National Park. As you travel north to Rocky Mountain National State Park, make a stop in Glenwood Springs for thrilling outdoor adventures.

7. Connecticut’s Lisbon to North Woodstock

This 32-mile road trip on National Scenic Byway State Route 169 is perfect for a day trip or staycation. Leave the crowds behind and explore small, quaint New England towns and countryside. Particularly beautiful in the fall, take your time exploring The Quinebaug and Shetucket River Valley National Heritage Corridor, Mashamoquet Brook State Park, and historical museums in Canterbury, Brooklyn, and Woodstock.

8. Delaware’s New Castle to Fenwick Island

Explore the entire length of the state on this 100-mile road trip. In New Castle, hop on the Bayshore Byway, a scenic two-lane road that hugs the Delaware river and bay. Stop in historic Dover for lunch or snacks before exploring the tranquil small towns far away from the interstate. At the end of the byway, take Highway One to beloved shore towns Rehoboth, Dewey, and Bethany Beach.

9. Florida’s Miami to Key West

One of the most iconic road trips in America takes you from a vibrant multicultural city to the edge of the world, U.S. Route 1 Mile Zero, the southernmost point in the continental United States. The 150-mile Miami to Key West drive includes the over-water Seven Mile Bridge linking towns and islands in the Florida Keys. Take your time stopping at award-winning beaches, state parks, and fabulous restaurants before arriving in Key West.

10. Georgia’s Atlanta to Helen

Leave the urban sprawl of Atlanta behind on a US-19 N road trip to experience Georgia’s rolling hills, valleys, and mountains. Stop at Amicalola Falls State Park with incredible vistas, hiking, fishing, waterfalls, and a chance to step foot on the Appalachian Trail. On your way to Helen, make sure to stop in history-rich Dahlonega. Helen, one of the most popular destinations in Georgia, is a mini-Bavarian alpine village and the gateway to the Chattahoochee River, perfect for tubing.

11. Hawaii’s Paia to Hana

The Road to Hana day trip is one of the most popular activities on Maui for a reason. This 52-mile journey allows you to explore an undeveloped portion of east Maui that feels like the Hawaii of yesteryear. From a “Half Hana” to a full 12 hour day, plan your Road to Hana stops to famous sites like Keanae Peninsula, Wai’anapanapa State Park, world-famous Hamoa Beach Pipiwai Trail located in Haleakala National Park. The Road to Hana is about enjoying the journey, not reaching the final destination, so don’t forget to stop at infamous food stalls like Aunt Sandy’s Banana Bread and Coconut Glen’s.

12. Idaho’s Swan Valley to Ashton

The Teton Scenic Byway road trip is perfect for fall foliage, the spring bloom of wildflowers, or the annual summer balloon festival. This 70-mile drive has stunning views of the Teton Mountains, skirts nearby Targhee National Forest, a geotourism excursion in Driggs, and year-round activities at Grand Targhee Resort.

13. Illinois’s Cave-in-Rock to Cairo

Add what Teddy Roosevelt called “the world’s most beautiful drive” to your vacation bucket list. The Ohio River Scenic Byway runs next to the Ohio River and puts the best of Southern Illinois on display. Destinations include Shawnee National Forest, historic small towns, various recreation areas like Garden of the Gods, Rim Rock, Glen O’Jones Lakes, and Cave in the Rock State Park.

14. Indiana’s Northern State Parks Loop

This road trip features six state parks offering soaring sand dunes, lakeside relaxation, and rugged hiking. Start at Indiana Dunes State Park and explore Lake Michigan before hopping on IN-4 E to Potato Creek Park. Take I-80 E/I-90 E to Pokagon State Park, then I-69 S to Chain O’Lakes. Stay for the night in nearby Fort Wayne and explore the Freimann Botanical Conservatory and Fort Wayne Museum of Art. Head to Ouabache State Park on Route N 450 E. As you loop back, check out Tippecanoe State Park as your finale. Whether you live in Chicago or nearby South Bend, it’s an excellent staycation road trip.

15. Iowa’s New Albin to Keokuk

The Great River Road National Scenic Byway runs parallel to the Mississippi River through the length of the state. A perfect trip for outdoor enthusiasts or history buffs, this 328-mile drive features stunning vistas, quaint river towns, limestone bluffs, and the history of the people living there for thousands of years.

16. Kansas’ Canton to Ellsworth

The Prairie Trail Scenic Byway is an 80-mile road trip full of scientific landmarks, historical sites, cultural experiences, and fun activities. Highlights include the Maxwell Wildlife Refuge and Buffalo Tour, Kanopolis Reservoir State Park, Smoky Hill Wildlife Area, Marquette Pioneer Trail, Coronado Heights Bluff, Valkommen Rail Trail, and Broadway RFD, the state’s longest-running outdoor theater.

17. Kentucky’s Louisville to Lexington

Few things are more iconic in Kentucky than bourbon, so why not explore the state on a Bourbon Trail road trip? After enjoying Louisville, travel south on I-65 to Shepherdsville, home of Jim Beam, the most popular bourbon in the world. Continue south via KY-245 to Maker’s Mark Distillery in Loretto and enjoy a different tasting bourbon known for its delicate sweetness.

Travel east on US-150 to Danville, the birthplace of Kentucky. Grab a bite to eat in their historic downtown and stroll their award-winning Main Street. You’ll be rewarded at the end of your trip with the scenery of Woodford County as you travel along US-127 N to Woodford Reserve Distillery outside of Lexington. Whether you have a designed driver or join day trip tours, stay safe along the Bourbon Trail.

18. Louisiana’s New Orleans to Lake Charles

A perfect add-on to a NOLA visit, this short road trip along I-10 West illustrates a more diverse side of Louisiana. First, stop in Baton Rouge for lunch at the famous Louie’s Cafe and explore the capital city, home to LSU. Continue to Avery Island, home of Atchafalaya National Wildlife Refuge and The Tabasco Factory. In Lafayette, learn about exiled French Canadian settlers, the forefathers of Louisiana Cajuns at the Acadian Cultural Center, and enjoy James Beard award-worthy chicken and waffles at The French Press. Plan to stay a night, or two, in Lake Charles.

19. Maine’s Acadia National Park Loop

Acadia’s Park Loop Road covers 27 miles of one of America’s favorite National Parks. This mostly one-lane road was thoughtfully created over 30 years to protect and display the stunning landscape. This loop begins at the Hulls Cove Visitor Center and gives easy access to the park’s sites like Sieur de Monts, Sand Beach, Otter Point, and Jordan Pond, one of Acadia’s most pristine lakes. The road steeply climbs Cadillac Mountain, the top destination in the park. It’s the highest point in the Eastern Seaboard and offers gorgeous coastal views.

20. Maryland’s Chesapeake Bay Loop

Far away from the suburban crowds of Bethesda and Baltimore, enjoy a weekend road trip on the Chesapeake Country Blue Crab Byway. Explore lower Eastern Shore historic towns and quaint villages on a scenic 210-mile stretch. Along both the Chesapeake Bay and Atlantic Ocean routes, you’ll have many chances to enjoy local Maryland Blue Crab dishes. Fans of the movie Wedding Crashers might want to add Saint Michaels to their itinerary and book at night at the real Inn at Perry Cabin.

21. Massachusetts’ Boston to The Berkshires

Whether you’re off to see the fall foliage, a summer show at Tanglewood, or skiing at Jiminy Peak, explore the countryside of Massachusetts and vibrant small towns along the Massachusetts Turnpike or its northern parallel route MA-2. From hiking trails at Mount Greylock, featuring the highest peak in the state, to the MassMOCA in North Adams, the entertainment of Great Barrington, or fine dining in Lenox, it’s perfect for a long weekend or even a week.

22. Michigan’s Standish to Mackinaw City

This coast road trip on the historic Heritage Route US-23 puts the best of the Sunrise Coast on display. You don’t have to travel far to feel like you’re visiting another world. As you drive along Lake Huron’s coast, there are miles of beautiful beaches, lighthouses, bike trails, and remnants of mysterious shipwrecks. Plan to stop at Tawas Point State Park to experience one of Michigan’s best beaches, Au Sable, for a day of fly-fishing, kayaking, and the quiet of the oceanfront forest, Shipwreck Alley in Harrisville State Park, and bike riding, swimming, and picnicking in Ocqueoc Falls.

23. Minnesota’s Park Rapids to Winona

Drive US-10 across the state for a 600-mile journey through cities, country, and everything in between. Stop first at Itasca, a 32,000-acre state park with more than 100 lakes. Consider staying in the Brainerd area, known for its hundreds of lakes and legendary resorts. Continue to St. Cloud for its granite Quarry Park Scientific area, The Twin Cities for epic views of meeting rivers, and end in Winona, an art lover’s mecca.

24. Mississippi’s Hernando to Woodville

For music lovers, U.S. Highway 61 or The Blues Highway is sacred as it gave birth to the roots of modern music. Whether you want to leave your troubles behind like blues artists or just pack up and go, you can experience the history of the blues in the places where it was born. This route is marked with Mississippi Blues Trail signs across city streets, cotton fields, train depots, cemeteries, nightclubs, and churches. Make sure to stop at The Birthplace of the Blues Dockery Farms, GRAMMY Museum® Mississippi in Cleveland, and the various birthplaces of your favorite blues artists.

25. Missouri’s St. Louis to Joplin

Experience Americana at its finest by taking a road trip on our most famous Highway – Route 66. Missouri, the show me state, has plenty to offer from National Forests, museums, retro drive-ins, and all the neon and kitsch of yesteryear. While not the famed Rosebud Motel, you can stay in some of the original route 66 hotels like the Wagon Wheel, the Best Western Route 66 Rail Haven, and the 1939 Boots Court Motel. Leave time to explore the Mark Twain National Forest, The Meramec Caverns, Route 66 State Park, and the Route 66 Museum in Lebanon.

26. Montana’s Bozeman to Yellowstone

While you could do this drive along US-191 in two hours, savor all that Big Sky country has to offer over a weeklong road trip. Start in Bozeman, the adventure capital of the Northern Rockies, for fly fishing, hiking, mountain biking, rock climbing, or backcountry tours. Drive south to Big Sky Resort, a four-season mountain destination. Lastly, continue to West Yellowstone, a convenient base for exploring Yellowstone National Park. Give yourself at least two full days to explore all of its beloved 2 million acres.

27. Nebraska’s Odell to Scott’s Bluff

Travel along the Oregon National Historic Trail to see the beauty of Nebraska and learn what life was like for those early settlers who traveled the same land. There are over 60 historical mile markers and museums to explore during this road trip. Consider stops at Rock Creek Station State Historic Park, Spring Creek Prairie Audubon Center, Lincoln County Historical Museum, and Chimney Rock, one of the most noted landmarks along the Oregon Trail.

28. Nevada’s Las Vegas to Valley of Fire

While some never leave Las Vegas during their vacation, consider a road trip along I-15 to Valley of Fire State Park. The 100-mile round trip drive and 40,000-acre state park are perfectly sized for a day trip. See for yourself why this otherworldly place is the filming location for faraway lands in movies like Star Trek and how the sun’s rays on red sandstone rocks illuminate the valley like fire.

29. New Hampshire’s White Mountain Trail Loop

Explore the 100-mile National Scenic Byway White Mountain Trail, particularly beautiful during the fall. In the words of New Hampshire resident Robert Frost, consider taking the road less traveled. Take your time exploring waterfalls, covered bridges, and endless overlooks. Start at White Mountains Visitor Center, continue to Franconia Notch State Park, and Crawford Notch State Park with stunning views of Mount Washington and the Presidential Range.

30. New Jersey’s Englewood Cliffs to The Delaware Water Gap

While most people only know The Jersey Shore, the congestion of The New Jersey Turnpike, or towns featured in The Sopranos, the garden state actually has a wide range of destinations and natural beauty. Before traveling I-80, fill up with a big breakfast at Brownstone Pancake Factory and take in Manhattan Skyline views in Englewood Cliffs.

Stop at Paterson State Falls National Historical Park to see the 77-ft. waterfall that Alexander Hamilton used to launch the country’s first industrial city. Stop in Denville for dinner at Hunan Taste, lauded as the best Chinese food in the state, or The Pasta Shop, a local favorite. Enjoy a relaxing and quiet getaway at one of the many Bed and Breakfasts in Sussex County.

31. New Mexico’s Ohkay Owingeh to Las Cruces

Whether you’re a foodie, a historian, or an outdoor enthusiast, this road trip has it all. The El Camino Real National Scenic Highway traverses the length of the state. Take a week to enjoy the cities (and food) of Albuquerque and Santa Fe, as well as the historical sites of 16th-century Spanish explorers. Explore White Sands National Park, Sevilleta National Wildlife Refuge, and the 1.6 million acres of the Santa Fe National Forest.

32. New York’s Albany to Niagara Falls

Take a week-long road trip covering the length of the Empire State along I-90 West. Start in the state capital to experience America’s Main Street before visiting quaint towns and farms on your way to Syracuse. It’s a large city and college town in one chock full of museums, shops, amusement parks, and a zoo. Next up is family-friendly Rochester with The Strong National Museum of Play and boat rides on the Erie Canal. Continue your road trip by driving along Lake Ontario to witness where the lake meets the Niagara River. Enjoy a day exploring Niagara Falls, one of the most famous waterfalls in the world.

33. North Carolina’s Cumberland Knob to Heintooga Overlook

Travel the Blue Ridge Parkway through the whole state right to the edge of Great Smoky Mountains National Park. Plan a week-long road trip to experience the variety of attractions North Carolina has to offer. From Cherokee life, agricultural history, Southern Appalachian culture, the largest home in American, and some of the world’s oldest mountains, there’s something for everyone. Explore the beauty of Grandfather Mountain, Pisgah National Forest, and trendy Asheville, home of The Biltmore Estate.

34. North Dakota’s Washburn to Stanton

Travel the route of Lewis and Clark along the Sakakawea Scenic Byway and Missouri River Valley. Retrace their incredible journey while learning about the people who’ve lived in this land for centuries. Plan for stops at Lewis and Clark Interpretive Center, Knife River Indian Villages National Historic Site, Cross Ranch State Park, Fort Clark State Historic Site, and Fort Mandan Historic Site.

35. Ohio’s Cleveland to Cincinnati

Give yourself time to explore the major cities of Ohio on this I-71 South road trip. Start in Cleveland to enjoy the shore of Lake Erie and visit the Rock and Roll Hall of Fame. Continue South to Columbus for their arts & food scene and beautiful botanical gardens. For airplane enthusiasts, take a side trip to The National Museum of the U.S. Air Force in Dayton. End with two days in Cincinnati. It’s the largest metro area in the state with history, art, architecture, children’s museums, and a zoo.

36. Oklahoma’s Talihina to Heavener

Take a week to explore all the destinations and historic towns along the Talimena National Scenic Byway. Plan day trips and hiking excursions in Ouachita National Forest and Queen Wilhelmina State Park. For white water enthusiasts, enjoy the Ouachita, Mountain Fork, Caddo, and the Cossatot Rivers’ adventures. Don’t miss the 1,000-year-old Viking carvings in the stunning Heavener Runestone Park.

37. Oregon’s Portland Loop

The Columbia River Gorge Highway connects some of our county’s most stunning sites. Stop first at Columbia River Gorge National Scenic Area with beautiful vistas, trails, and 90 waterfalls. At the Washington state border, the Columbia River Gorge will take your breath away. Take the windy drive up to Sandy River and stop at Crown Point Vista House for an incredible view of The Gorge. As you continue, make sure to visit Multnomah Falls, one of the most visited sites in the Pacific Northwest. As you return to Portland, explore Benson and Ainsworth State Parks, Eagle Creek hiking trail, and the town of Hood River, a favorite with kiteboarders.

38. Pennsylvania’s Jim Thorpe to Milford

For over 100 years, the Pocono Mountains have attracted visitors to its quiet beauty and outdoor adventures. The small towns along Route 209 are known for their seasonal celebrations, historical sites, and family-friendly activities. Start in Jim Thorpe, dubbed America’s Switzerland, for its international architecture. Whether you’re an advanced hiker, train fanatic, biker, or white water rafter, it’s a great place to kick off your vacation.

Next, enjoy Stroudsburg’s downtown as you make your way to The Delaware Water Gap National Recreation area. This 70,000-acre park offers endless outdoor adventures and stunning views of the Delaware River Valley. Dingman’s Falls right off US-209 is a must-do stop even if you’re short on time. End in Milford to tour their historical sites and Raymondskill Falls, the largest waterfall in the state.

39. Rhode Island’s Watch Hill to Newport

Take a weekend road trip along historic Route 1 to see all that coastal Rhode Island has to offer. Start at Watch Hill, the southernmost point in the state, and snake your way through quintessential New England towns. Rhode Island’s coast contains beautiful historic lighthouses scattered on gorgeous peninsulas, islands, and cliff sides like Point Judith Lighthouse. In Newport, stay a night, or two in luxurious resorts, tour historic mansions and enjoy award-winning restaurants.

40. South Carolina’s Cleveland to Charleston

While you could drive this stretch of the state in five hours, take your time traveling from the mountains to the coast. Start in Cleveland and enjoy a portion of the Blue Ridge Mountains in Caesars Head State Park. As you drive south on Poinsett Highway, stop in Greenville, dubbed America’s Friendliest City.

As you continue towards the coast on Veterans Highway, visit Columbia, the capital city, and take a stroll in its riverside park. Plan for a day in nearby Congaree National Park and Lake Marion. Conclude your drive where Route 26 ends in Charleston, one of America’s most popular vacation destinations. Leave time to enjoy the state’s oldest city and some of the best restaurants in South Carolina.

41. South Dakota’s Crazy Horse to Badlands National Park

Consider taking a road trip through South Dakota’s rolling prairies, twisting mountain roads, and iconic American monuments. Start at historical Mount Rushmore and Crazy Horse Memorial. Take US-16 E to enjoy a couple of days in Rapid City, a vibrant town with outdoor festivals, concerts, and a unique food scene. Travel I-90 E to Wall as a base for exploring Badlands National Park. Drive the Badlands Loop Scenic Byway to see its 16 stunning overlooks and hike among its surreal landscape.

42. Tennessee’s Nashville to the Smoky Mountains

With a music capital, amusement parks, foodie havens, history, and the most visited national park in the country, it’s no wonder so many Americans are flocking to Tennessee. This 200-mile I-40 E road trip starts in the entertainment-rich Nashville, the country music capital of the world. Next, drive to Knoxville with stops in Old City and Mead’s Quarry. Before entering Great Smoky Mountains National park, enjoy a day in family-friendly Pigeon Forge, home to Dollywood Amusement park. Its neighbor city, Gatlinburg, is a perfect base to explore half a million acres of the Smoky Mountains.

43. Texas’s Austin to San Antonio

While 30 million people visit The Live Music Capital of the World annually, many don’t leave Austin. Consider expanding your vacation with an I-35 S road trip to San Antonio and experience the Texas Hill Country. Stop first in San Marcos and enjoy the hundreds of river springs perfect year-round at 72 degrees.

Next, explore New Braunfels, a beloved vacation destination for Texans. This small town boasts a historic downtown, an infamous water park, and Comal River, a beloved tubing spot. Next, visit San Antonio, a vacation destination in its own right, with a beautiful miles-long River Walk, unique culture, and historical sites like The Alamo. On your way back to Austin, consider a side trip to Lockhart, with some of the best barbeque in the state.

44. Utah’s Torrey to Bryce Canyon

If there’s a Million Dollar Highway, it must be on your bucket list. U.S. Route 550 features two national parks, one national monument, a national forest, and a stunning state park, all with million-dollar views. While the Highway is under 150 miles long, leave at least a week to explore all the incredible sites in this portion of the state.

Start on Capitol Reef Scenic Drive to reach the first of many, National Parks in Utah. Explore Larb Hollow Overlook, Burr Trail in Long Canyon, and Lower Calf Creek Falls. Continue to the town of Escalante, home of Grand Staircase with 1 million acres of mind-boggling geological formations. Don’t skip over Kodachrome Basin State Park. It’s so vibrant it was named after the popular color photography film. End this epic road trip in Bryce Canyon National Park’s Mossy Cave Trail, often overlooked by the crowds.

45. Vermont’s Brandon to Goshen

Witness the beauty of Vermont on the West-Central Mountains & the Appalachian Gap Loop, particularly beautiful in the fall. This 100-mile route passes through Green Mountain National Forest, Lake Dunmore, and ten quaint, welcoming towns. If you’re looking to stay for the weekend or longer, make lodging reservations well in advance for this popular road trip destination.

46. Virginia’s Arlington to Shenandoah Valley

If you’re planning a vacation to Washington, D.C., add a Shenandoah Valley road trip to your itinerary. As you head west on I-66, stop at the historic Manassas National Battlefield Park and Skyline Caverns. Stay at family-friendly four-season resorts, inns, or romantic bed & breakfasts to explore nearby Shenandoah National Park. During your stay or on your drive back, check out the Shenandoah Spirits Trail featuring more than 45 vineyards, craft breweries, distilleries.

47. Washington’s Seattle to Portland

Whether you live in the Seattle area or are visiting the area on vacation, this awe-inspiring road trip to some of the Pacific Northwest’s most awe-inspiring sites is bucket-list worthy. From Seattle, travel along I-5 N on the coast to Bellingham, your base for exploring nearby Mount Baker. Continue to North Cascade National Park, Stevens Pass, and Cascade Valley. Next, explore all that the White Pass Scenic Byway offers, like Mount Rainier National Park and Mount St. Helens National Volcanic Monument, before ending in Portland. This walkable city is known for its food and distinct culture that turns visitors into residents.

48. West Virginia’s Charleston to White Sulphur Springs

Travel 180 miles of The Midland Trail National Scenic Byway to see stunning vistas, experience thrilling outdoor adventures, and learn the history of the people who lived in these hills for centuries. Jump on U.S. Route 60 in the capital city of Charleston and snake your way through the mountains to Hawks Nest State Park, with panoramic views and white water rafting. Fayette County offers fishing, horseback riding, and world-class rock-climbing. Continue to Greenbrier Valley’s limestone landscapes, farms, historic sites, and quaint towns. End your journey with a stay at The Greenbrier, a National Historic Landmark and world-class resort that has hosted half our country’s presidents, royalty, celebrities, and guests from around the world since 1778.

49. Wisconsin’s Madison to Prairie du Chien

Explore 100 miles of the Lower Wisconsin River countryside on the Wisconsin Scenic Byway. One hour west of Madison is Taliesin, Frank Lloyd Wright’s sprawling estate with a national historic landmark designation to honor our country’s most famous architect. Follow the Wisconsin River to the town of Boscobel with one of the best River Outing tour companies in the region. You can book an excursion for a couple of hours or even days. End your road trip in Prairie du Chien, a town established in the 1800s. Make sure to visit Wyalusing State Park 500 feet above the river for stunning views.

50. Wyoming’s Beartooth Pass to Yellowstone

Did we save the best road trip for last? The Beartooth Highway, a National Scenic Byway, is thought to be the most scenic drive in the United States. While less than 100 miles across Northeast Wyoming, this 80-year-old road draws global visitors to its diverse environment, family-friendly wild west cities, and breathtaking scenery. Set next to epic mountain ranges are endless glacial lakes, national forests, waterfalls, and fantastic wildlife. You can experience the highest and most rugged mountain areas in the continental United States from your car. Leave time to explore Custer, Gallatin & Shoshone National Forests, and the Crown Jewel of America’s National Park System – Yellowstone.

This article originally appeared on Your Money Geek and has been republished with permission.

Here’s Why You Feel Exhausted: A Look at Thinking vs Doing

Written by Adam on April 25, 2021. Updated January 8, 2023.
8 min read. Canonical, Minafi, Personal, Mindfulness, Financial Independence, Blog. 4 Comments

Tell me if this sounds familiar. Some days you just feel exhausted. You may not have even done anything productive and yet you wind down at the end of the night and quietly think “why do I feel this way?”.

The good news is that everyone has days like that. Learning why you feel that way can help improve your happiness a few points. Who wouldn’t want to shift a few thoughts around and end up 10% happier?

[Read more…]

Understanding the Expense Ratio and How It Affects Your Investments

Written by Adam on April 21, 2021. Updated April 21, 2021.
6 min read. Investing, Spotlight. Leave a Comment

This is a post written by my friend Jeff Cooper from Have Your Dollar’s Make Sense. If you’ve been through my free investment course, you’ll know I focus a LOT on keeping expenses low. Cooper touches on this with a focus on expense ratio’s – the largest fees we usually pay as investors.

Not wanting to pay for anything you don’t have to is also true with investing. You want to maximize the return on any investment you have. You might think that means finding the investment with the best returns. High returns are certainly an eye-catching statistic. They are a significant factor when deciding where to invest your money. However, there is a bit more to it. The flip side of it is how much its costs you to invest in any particular fund. That’s where the expense ratio comes in.

What is an Expense Ratio?

An expense ratio can most easily be defined as the cost for a fund to operate vs. its assets’ total value. Think of any fund as a business. Employees need salaries, rent for the office needs to get paid, utility bills to pay, office supplies to buy, and just general costs of doing business. Well, a mutual fund is no different. There are people actively working behind the scenes doing all sorts of research, making trades, working through legal formalities, and various other tasks. These management fees and operation costs get passed on to you, the shareholder.

Determining a fund expense ratio is relatively simple. Take the total of the operating expenses and divide that by the fund’s net asset value or NAV. For example, if a fund has 500k in expenses and 50mm in assets, it would have a 1% expense ratio.

Why Are Expense Ratios Important?

Knowing the fees associated with anything you’re paying for is essential, and investing is no different. When you invest in a fund with a higher expense ratio, the returns you earn are lowered by that much more. If you are interested in a few funds, lower expense ratios make an excellent secondary factor. Would you rather invest in a fund that charges you 1% or 1.25%? Simple math says if the returns are about equal, you would want to pay lower fees.

Don’t think because you aren’t investing millions of dollars that you can ignore these fees either. They may seem small, but even a slight difference in expense ratios will add up to any investor over the long term.

Take two investments of 10k each, one investing in a fund with an expense ratio of 1% and another of 1.25%. Using a 7% return rate and assuming no additional contributions after ten years, the 1% ratio will net you an extra $400. After 20 years, you’ll have an extra $1500, and after 30 years, you’ll have an additional $4000!

The above are some straightforward calculations and assumes the returns for each fund are precisely the same. In the real world, you won’t find two funds like that, but it does illustrate my point that although the fees may seem small in the short term, there are most undoubtedly long-term implications. Now imagine the difference in your investments when you keep contributing!

How do I Know a Funds Expense Ratio?

Now that you know about expense ratios and how they can change your investments, where do you find them? Well, the good news is that they are relatively easy to find. Funds are required to make them known to investors, so we’re not talking about hidden fees here. There are a few ways potential investors go about determining a funds expense ratio.

The primary way and likely the easiest can be done using your brokerage accounts. When looking up any fund, you’ll typically see many of its attributes along with it. Most of us look straight at the money-making aspects like a fund’s overall return rate or dividend yield. The expense ratio is listed along with those attributes, and you didn’t know it was there!

Another way to find the expense ratio is to find the fund’s prospectus. A prospectus is an overview of a fund’s investments. It needs to be filed with the SEC and sent to investors each year. Within this, you’ll find a section about any fees associated with the fund. If you do this, you might see two expense ratios, net and gross. Without going into all the details, the net expense ratio is eventually passed along to the investors.

You can find the prospectus itself in a few ways as well. If you are already an investor, this will be sent to you every year by the fund. Search through the piles of emails in your trash bin, and you’ll likely find it in there. Typically brokerage firms will also have the prospectus available to you when researching their site as well. Finally, you can go directly to a funds website, if available, and you’ll be able to find the prospectus there as well. It might take some poking around, but it’s there.

Finally, if all else fails, do what you do for anything else, Google it! Doing a quick and simple search for a stock ticker plus the words “expense ratio” will quickly find you the information you need.

Can You Avoid Expense Ratios?

Any fund you invest in will have operating expenses, so no, if you are a mutual fund investor, you can’t avoid them. Don’t let it deter you, as other investment choices will have costs associated with them as well. However, what you can do is find funds with relatively low costs associated with them.

“According to independent investment research firm Morningstar, the 2019 average asset-weighted expense ratio in the US was 0.45%.”

Even with that average in mind, there are still a few things to consider. Primarily the type of the fund and its strategy. Nowadays, there are three main types of funds, mutual funds, ETFs(Exchange-Traded Funds), and index funds.

Mutual funds and ETFs are considered actively managed funds, meaning that they are actively making trades on your behalf within the fund regularly. An active fund typically comes with higher expense ratios as it’s more expensive to research and make trades constantly. A typical or average expense ratio for an actively traded mutual fund or Etf would be around .66%.

Opposite to the active management strategy, index fund investing is more of a passive investment. Indexes are diversified and aim to track a particular section of the market or even the stock market as a whole, like the Dow Jones Industrial Average or S&P 500 index. These funds typically have a low portfolio turnover and are rebalanced far less than their actively managed counterparts. So on the expense side, these naturally come in much lower. The average ratio for passively managed funds is around .13%. Many firms such as Vanguard Group, Fidelity Investments, or T. Rowe Price will have index funds specific to their brokerage accounts with even lower rates as well.

Which Investment Strategy Should I Use?

Your investment strategy comes down to how active or passive you want to get with your investments. Over the long haul, actively managed funds don’t typically outperform index funds. With the higher fees involved and similar returns, passive investing make sense for most of us. Index investing allows us to put our money in an index fund and forget about it, making better use of our valuable time.

However, mutual funds can outperform index funds over a short period of time. In investing terms, that might mean a few months or even a few years. If you want to take on a more active role in your investing, you can review and rebalance your portfolio as you see fit. Short-term investing can be difficult in a good market, nevermind a volatile or bear market. Please make sure you are ready to put in much effort consistently see returns high enough to make an effort and higher expense ratios worth it.

You can always take on a hybrid investment portfolio. You can invest most of your money with index funds while investing in a few mutual funds to see higher gains. As always, it’s about diversification and making sure your investments align with your personal goals.

Conclusion

A fund’s expense ratios help us understand the costs of investing in any particular mutual fund or ETF. Actively managed mutual funds need to cover their expenses. The fees and expenses typically get passed onto the investor in the form of expense ratios. Before you buy shares, invest a little time understanding mutual fund fees charged. They may seem like small fees to pay. However, over the long term, a reasonable expense ratio can drastically change your capital gains. When deciding which type of investment you want to make, they should be taken into consideration by any investor.

Additional Sources

Robin Kavanagh. What is an expense ratio? The most important fee to know when investing in mutual funds or ETFs.2020). https://www.businessinsider.com/what-is-expense-ratio
ADAM HAYES. (2021). The Definition of Expense Ratio. https://www.investopedia.com/terms/e/expenseratio.asp

This article originally appeared on Your Money Geek and has been republished with permission.

Calculate Your FI Number With State and Federal Taxes (It’s More Than You Think)

Written by Adam on April 18, 2021. Updated January 8, 2023.
5 min read. Minafi, Financial Independence, Interactive, Taxes, Calculators, Blog, Canonical. 10 Comments

In order to reach financial independence, one of the fundamental ideas is that you need to save up and invest at least 25x your yearly spending. If you spend about $40,000 a year, you’ll need at least $1,000,000 to be set for life.

While there are no sure things, this is a good baseline. It’s unlikely you’ll be set for life if your savings are below this number. How much higher it should be depends on a bunch of things: your future expenses, health & healthcare, your life goals – and most importantly how flexible you want to be with your spending.

I’ve always thought of the 4% rule / 25x rule as the bare minimum needed to reach financial independence. There’s a kicker to this though: that’s 4% in your pocket after taxes!

In other words, if you withdraw $80,000 a year from an IRA, even in a state with no income tax, you’ll end up with about $73,810 (in 2021). Because of that, you actually need to withdraw a lot more each year to cover taxes.

Let’s figure out how much more we really need.

A California vs A Washington State Retiree

Let’s look at two people. They both live out on the west coast of the US, enjoy similar weather, and somewhat similar politics. They’ll pay the same amount of federal taxes, but their state taxes will be wildly different. Washington state has a 0% income tax, while California’s marginal tax bracket goes up to 13.3%!

State and federal taxes in retirement will impact your FIRE number. How much depends on which state you live in and which accounts you’re withdrawing money from.

Let’s look at an example retiree couple in these two states to see how much they’d pay.

Yearly spending: $80,000 for a married couple.
Which accounts: All of it is coming from a 401(k) accessed early using a Roth IRA Ladder.

How much do they need to retire in each state? If taxes weren’t a thing, the math would be easy: $2 million ($80k x 25).

	California	Washington
Yearly Spending	$80,000	$80,000
Federal Tax	$7,775	$7,022
State Tax	$3,151	$0
Tax-Deferred Yearly Withdrawal	$93,210	$87,022
4% / 25x Amount Needed	$2,330,269	$2,175,550

Adam Says: This is assuming a married couple takes the $25,100 standard federal deduction and the $9,202 California standard deduction.

In order to spend $80k a year from your IRA in California, a married couple would need to take out a little over $93k. That’s a lot higher! In fact, it’s about 16% higher for California and 9% higher for Washington.

These calculations are tricky. You need to adjust the amount you’re withdrawing up so you can take out money for taxes. But increasing the amount also increases state and federal taxes – driving the numbers up a bit more.

Luckily all tax brackets are marginal. There’s no point where raising your withdrawal amount triggers more taxes on the money you’ve already taken out. It’s marginal, so you’ll only pay tax on the next dollar after that.

What If: They Retired with 25x Spending?

Not taking into account taxes would have a catastrophic impact on both retirees. For the California retiree to withdraw $93,210 a year, that would be a withdrawal rate of 4.6% based on a $2m portfolio. It’s closer to 4.2% for the Washington retiree.

According to cFIREsim, that gives only a historical 91.74% chance of success for our Washington retiree, but only an 80.99% chance for the California retiree. This assumes a 30-year time horizon.

I don’t know about you, but a 20% chance of failure is WAY too higher. That’s worse odds than rolling a 6 on a 6-sided die.

You can increase your odds in both cases by saving up more money. If the California retiree saved up $2,330,269 and the Washington retiree saved up $2,175,550, they’d both get to a 95+% success rate over a 30-year period.

Calculate Your Tax-Adjusted FI Number

Knowing how taxes work, you might be wondering: what is my REAL FI number taking into account taxes? And how much less would I need in different states? Well, it’s time to find out! Just answer a few questions to get your tax-adjusted FI number.

What’s Not Covered With this Calculator?

Taxes are complicated. Two people making the exact same income could have wildly different tax rates. This calculator is very naive in what it takes into account – mostly because recreating a calculator that works for every state is beyond even what the government offers. ? There are some known edge cases not covered here, and many unknown edge cases. Here are some of the know edges cases not covered:

No Alternative Minimum Tax – The AMT is a minimum tax for higher income earners who manage to lower their taxes.

No state tax deductions – The state tax doesn’t take into account any deductions. This could result in a lower state tax bill.

No federal deductions beyond the standard deduction – This calculator assumes only the standard deduction for the federal level. No child deductions, charity deductions, mortgage interest deductions, or anything else.

No SALT deduction for state and local taxes – This doesn’t include deducting state tax – which would only make sense if your state tax is above the standard deduction and you itemize your deductions at a federal level. This is more common in states with high property taxes.

Tennessee capital gains and dividends tax – Tennessee charges a 1% tax on capital gains, interest, and dividends. This calculator WILL calculate tax on capital gains, but not dividends or interest.

How Can You Lower Your Taxes for FI?

Let’s get this out of the way first: there’s nothing wrong with trying to lower your taxes. There’s a difference between tax avoidance (illegally not paying taxes) and tax reduction (taking advantage of the tax code). It makes sense for everyone to lower their taxes. It’s more money in your pocket, and less you have to save!

So how do you do it? I’ve documented my approach to spend $80,000 a year and pay no taxes as one route. Another approach is to understand tax tiers and be money in multiple account types.

For example, let’s say you (filing as a married couple) wants to spend $80,000 a year and pay no taxes. Here’s one way to do it:

$0 – $25,100 – Keep your IRA withdrawals, 401(k) withdrawals and unqualified dividends in this range. With the federal standard deduction, that’ll ensure you pay no taxes.
$25,101 – $105,901 ($80,801 + $25,101) – The next $80,801 you can withdraw from a taxable brokerage account and pay no long-term capital gains. In other words, any investments you’ve held for longer than a year, can be sold tax-free up to this amount.
Anything else – If you don’t have this much in a taxable account, you can also use Roth IRA.

This involves having a LOT of money in a taxable brokerage account, which isn’t always the case. If that’s not your situation, you can raise your tax-deferred withdraws and pay some tax, but use your Roth IRA to slightly lower the amount you need (and the taxes you pay).

One way to lower your capital gains basis is to take advantage of tax-gain harvesting each year after you retire. This works by selling stock then immediately rebuying it. You pay taxes on the gains and reset your cost basis. The trick, if you call it that, is to sell long-term capital gains while you’re in the 0% tax brackets for long-term capital gains. This results in resetting your cost basis and allows you to withdraw more in future years while paying fewer taxes. And it’s all completely above-board.

What’s Your FI Number?

Depending on how you’re funding your retirement, your number may change by up to 25%. If going through this calculator raise your FI number higher than you previously thought, I’m sorry to be the bearer of bad news. It’s still going to be better than leaving your job and running out of money.

The good news is that the last few percent growth in your investments gets to benefit from all of the growth up to that point! Compound interest is your best friend in this situation.

Investing for Beginners: From Your First $1 to $10k and Beyond

Written by Adam on April 11, 2021. Updated January 8, 2023.
10 min read. Investing, Personal Finance, Blog, Minafi, Canonical. 3 Comments

So you’re ready to start investing. What do you do first? Here’s the thing: getting started is the hardest part. After that investing is as easy as moving money into a savings account!

The hardest part of investing isn’t picking hot stocks or staying on top of the news: it’s figuring out what to do next. Like most things in life, once you know what to do, the stress of action starts to fade away.

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My Life & Goals Updates So Far for 2021

Written by Adam on April 4, 2021. Updated January 8, 2023.
19 min read. Blog, Personal, Goals, adamfortuna. 7 Comments

I’m trying something different this year. At the beginning of the year, I created a bunch of personal goals and themes. My hope isn’t to check everything off this list. I want these things to inspire me to action. If I complete them, that’s cool too. If not, at least I’ll enjoy the journey.

Adam & Lily — Mrs. Minafi wins best photo for this one of me and Lily! (Side note: mask on because we were close to some other people)

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