I’ve discussed this issue before. I’m going to try to move to Mexico next year, although it could be 2013 (it’s always more complicated in practice than on paper) before I can pull it off. I’ve got a (consultant) friend who did it years ago. I’m with the original poster, if you’re single, no wife, no kids, and have a lot of work flexibility (e.g., consultant, fund manager, etc.) I don’t see the point in maintaining CA residency and paying CA taxes.