Personal Fiscal Delights: One Ramblin' Man's PFD Usage

You may have heard of Alaska's Permanent Fund Dividend (PFD) before. Maybe someone described it to you as an "avalanche of free money" or you heard a rumor along the lines of "Alaska will pay you to move here!", or perhaps you were told you could "move to Alaska for free!". 

Gunnar Knapp, Institute of Social and Economic Research

The truth is somewhat simpler and less exciting: you may be eligible to receive an annual payout, if you establish residency in Alaska, and have lived here for at least one year (subject to a myriad of exceptions). 

There is at least one string attached - jurors in Alaska are selected from among those who receive the PFD (see Alaska Statutes § 09.20.050(b)). 

But such a string is easily severed by those unwillingly bound. Do you not wish to be selected for jury duty? Don't apply for the PFD - problem sorted.

What is this magical well of money for those willing to go North to the Future? It began in the late 1970's as an investment of the then overflowing oil wealth into a dedicated fund for future generations, in part a recognition that the oil would not flow forever.

The annual amount is based on a five-year average of the fund's performance and has varied from a low of $331.29 in 1984, to a high of $2072 in 2015.

Yours truly received the PFD for the first time in 2015, despite having lived in The Last Frontier off and on (but mostly on) since 2012. Now that the check is in the bank, what has become of that infusion?

Alaska Permanent Fund Corporation

First, wisdom prevailed, sending $1100 into a savings account that is intended to ensure independence whenever I get wise, kick off the burdens of employment, and take up a life more in keeping with my (assumed) ancestor The Super-Tramp, W.H. Davies.

Second, delight won out, sending $180 to a small Connecticut business in exchange for a handmade in the US of A travel banjo, weighing a mere two pounds, and using a novel tuning setup that hides the mechanics away from travel damage. Soon after arriving, the banjo went on its first journey, even riding on my backpack for a five-day wilderness hike. When plucked it screams out, heel all ye ears wobbled by these tin strings of glory, hold ye your dogs at bay as this miniature box sends forth a frenzied G-tuned howl!

Third, necessity bid its voice be heard, finally bringing about replacement of  the big old North Face -20 degree sleeping bag I've been using since 2006 with the vastly superior Mountain Hardwear Phantom 0 - lighter by many pounds, more compressible, probably warmer after lo these many years of use and abuse the North Face bag hath suffered. CampMor was the chosen vendor, where their already discounted price coupled with a 20% off coupon (use code SAVE20) to send this bag, typically just under $600, to me for the incredible and still near-criminal price of $399.

Finally, what became of the $393 remaining in this calculation? Deemed (a legal fiction) already spent, and sent the way of it's cousin $1100 of earlier, to while away in the dark until it is bid forth into the light to send these feet a'walkin.

Dear Mother Alaska, thank you for the loot. You're the best. Now please re-institute our income tax so you can afford to provide us, your citizens, tomorrow with the services we take for granted today.

March 8 P.S. Check out where the Alaska Permanent Fund has been investing those dollars!