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Gross. But then you can compute the depreciation on your taxes, write off insurance and other stuff, so not sure how that comes out in the end.
I just know my Mom has a lot more money than she did before, she enjoys doing it, it gets her out of the house (in manner where she is not spending money) and she can socialize.
She was pretty depressed being broke, having few friends.... now she is outgoing and friendly again.
Quote:
Originally Posted by Hemlock140
Nothing is deductible any more, unless you have at least $30,000 in deductions. Hopefully tax time doesn’t come with a big, costly surprise when she can only take the standard deduction, and finds out she made $6/hour.
You better brush up on your own taxes before making comments to others. Nothing you wrote is correct.
Nothing is deductible any more, unless you have at least $30,000 in deductions. Hopefully tax time doesn’t come with a big, costly surprise when she can only take the standard deduction, and finds out she made $6/hour.
Madman is correct..working for lyft or Uber has nothing to do with personal deductions...it is a business deduction....
For the 2018 tax year, you may write off $0.545 for every mile you drove as an Uber or Lyft driver. For 2019, that amount increases to $0.58 per mile. The Uber and Lyft apps track drivers miles on-the-job miles so they don't have to.
That usually works out better they say for most drivers vs breaking out the business deductions separately
I'm brand new here and trying to come to terms with what it's going to be like to be poor in retirement, especially since we are accustomed to a 6-figure income now. I'm 62 and dh is 63. We are among the millions who, with the exception of a couple of houses we bought and sold a long time ago, did not save or invest for retirement. I need to say that I'm very aware of the mistakes we made, our irresponsibility, as well as extenuating circumstances that made saving difficult (special needs child). No scolding necessary. We've been through the miserable beating ourselves up stage. I'm trying to problem-solve.
We rent in a very affluent New England town. By our SS calculations, allowing for me taking retirement now (500.) and dh taking his at 70 ($4000.), we will be receiving between 4500 - 5000/month. (That upper number assuming that my amount will go up to a percentage of his benefit.)
It will be possible to move further into the country, say, Vermont, and rent a cottage for about $1200. That would also be about the cost to stay here and live in elderly, public housing. A thought which (unnecessarily) shames me. It also kind of intrigues me: such a wealthy town doesn't really have a public housing waiting list.
We will have 1 car, no debts, and very simple needs. Moving isn't an option, we're in metro-Boston, have no funds for a downpayment and cannot find a rental for less than what we are paying now.
Could you do live on about $3300/month, after housing costs? What would you do to get ready?
You say moving isn't an option at the moment, but that is clearly the most important factor in your dilemma. Plenty of places in the country where you'd do OK at $4500 a month. New England and Mass are extremely unaffordable places to live. Visit there frequently, it is shockingly expensive.
Could you do live on about $3300/month, after housing costs? What would you do to get ready?
Many people do that even with housing costs. AARP and dozens of other resources have budgeting advice and planners. Something like Quicken or other apps would help track expenses. You might have to find a less expensive community and shed some expensive habits. Prioritize.
Many people do that even with housing costs. AARP and dozens of other resources have budgeting advice and planners. Something like Quicken or other apps would help track expenses. You might have to find a less expensive community and shed some expensive habits. Prioritize.
I've just started using this app for tracking my expenses - very simple to use:
You say moving isn't an option at the moment, but that is clearly the most important factor in your dilemma. Plenty of places in the country where you'd do OK at $4500 a month. New England and Mass are extremely unaffordable places to live. Visit there frequently, it is shockingly expensive.
I kind of feel the need to quibble about this.
Massachusetts is expensive if you need to commute to a metro Boston job. Real estate is off the charts pricey. Massachusetts has proposition 2 1/2 which limits property taxes but it doesn't matter if you're paying $15K in property tax on a million dollar house. Most retirees don't have the wealth to fund that indefinitely.
I'm beyond rational commuting distance to the Boston jobs. Median price per square foot in this town is $246 per square foot. The mill rate on property taxes is about $10 per thousand. You can retire to a small house that costs about $300K and see a $2,800 property tax bill. Massachusetts doesn't tax Social Security. You can live comfortably on a career high income delay-to-age-70 Social Security check.
We, too will be poorer in retirement, coming faster than we'd like.
But, 20 years ago when we got together, my spouse (OH) was just out of bankruptcy and I was just rehomed after medical issues forced me there.
I already collect SSDI due to the severe chronic continuous medical issues. I work part time when I can.
My OH has to part time jobs with no guarantees of hours.
But, in those 20 years, we were able to buy a house, pay it half down, finally bought my OH a brand new car for cash, the first EVER for my OH at the age of 55. My vehicle was paid for long ago.
We have some money, but the debt we accumulated updating and renovating the house negates that until paid off finally next year.
We will be moving to a cheaper warmer climate for retirement in 10 years or less, hopefully. We can buy twice the house for half the cost of this one, or go hopefully into senior income based housing. And the property taxes there look like a joke compared to here where more than half our mortgage payment IS taxes, taxes are more than principle and interest. And we only put 10% down. We do have it half paid for, though in just 4 years, which is great.
We will be down to one car, and have a whole new area to explore cheaply, at least for a while.
It certainly won't be lavish, but I think we will do ok.
For various reasons and trials and tribulations, we are not going to be where we'd like to be in retirement, but we will survive!
Massachusetts is expensive if you need to commute to a metro Boston job. Real estate is off the charts pricey. Massachusetts has proposition 2 1/2 which limits property taxes but it doesn't matter if you're paying $15K in property tax on a million dollar house. Most retirees don't have the wealth to fund that indefinitely.
I'm beyond rational commuting distance to the Boston jobs. Median price per square foot in this town is $246 per square foot. The mill rate on property taxes is about $10 per thousand. You can retire to a small house that costs about $300K and see a $2,800 property tax bill. Massachusetts doesn't tax Social Security. You can live comfortably on a career high income delay-to-age-70 Social Security check.
Yikes!
I don't remember what the per-sq-ftg cost of our house was here when we bought it, and dont feel like a calculation now, but where we plan to retire, the per-sq-ft cost is a remarkably low $19-60/sqft!
Our current house here IS a small starter ranch in a very good neighborhood about at the city limits. I also admit to not knowing what the exact current value of our house is now with the updateing, upgrading and finishing off the bonus room from a loosely enclosed 3 season porch basically to a fully finished year round room.The house next door is a brick ranch, twice the size of ours, and thusly is on the market for just more than twice what we paid for ours. Only the two baths there were updated. The house on the other side has a half second floor, totally unfinished but could have two more beds and a bathroom up there. The downstairs is only 2br/1ba, and they brag thry don't have to pay taxes on the upstairs space as it not finished. They did pay more than we did for ours, but ours HAD already been updated some with crucial things. ( new vinyl insulated windows, new electric wiring up and down to 150 amps, new roof ( 10 years on a 40 yr architectural shingle,) whole new driveway and a cheap complete bath and kitchen "update " with all new copper plumbing (built in 1948, it used to have galvanized plumbing).
We bought the kit and bath to 21st century standards and added a bank of much needed cabinets to the kitchen ( it was updated to "starter builder grade minimum cabinets), and moved our basement laundry up to the corner stacked laundry in an ample corner of the kitchen so i don't have to navigate the steep basement stairs with laundry and cane in tow.
We are quite happy with the results, well worth the money.
But as I said in my earlier post, we will be able to get twice the house for half the money (or easily very much less cost outlay). At a tax rate of just $50/month in our chosen retirement area, we cannot help but laugh!
A $250-300k house in our retirement area is a HUGE, mansion, 5 br/2-3bath, acreage, trey and vaulted ceilings, 3000sqft, and many amenities and upgrades.
Our needs are simple, a 3/2 house for us going for $70 k with the $50/m taxes will do us just fine.
Sure, if you NEED to commute to a 6 figure city job an hour and a half away, have at it.
Making it work for retirement is a whole 'nuther animal.
While as i said we wont be lavish in retirement, a medium sized city, access to very good healthcare, warmer climate and CHEAP housing meet our priorities for retirement. We dont want to be forced into working with a long commute just to make ends meet.
I think I have lost my primary points in my diatribe, but really maybe I have made it.
I think on $4-5k/m the OP will do ok in expensive NE, but may have to make some choices that we may not have or want to make to make our retirement work.
Itll be great if OP can do well whatever their choices may be.
We ALL have to make what we have work to have any kind of decent retirement.
Some things we can plan way ahead, some choices wilm have to wait til "we get there", for ALL of us!
Best of luck to ALL who face retirement whether sooner or later, poor or lavis.
Point one should be we should be able to have some enjoyment in our golden years....
I don't feel poor and we live on about what you quote: $3300 after so many expenses and so we are not much better off than you, and we are 70 plus years old! We manage, however, having a house worth at least $950K and we can borrow against it in emergencies. Nevertheless, you can live quite well if you make the right decisions. We spend, get this, $1000 to $2000 per month for animal care, as we are former rescuers with many animals and our veterinary care plus food (which we make ourselves for them - it's cheaper and way healthier) brings us down to about $3300 after property taxes and car repairs on our 17 year old, usually reliable car. We just don't feel poor. We feel, in fact, lucky to have what we do have (even if we didn't have the house) because we have great medical care, good food (almost never eat out and are plant based) and so, I think if we can make it, you can, too. Even with our income we manage to make monthly donations to animal and human charities. We don't buy clothes much and we cut our own lawn, do our own weeding. We don't know what it is to take an expensive vacation. So what? We are doing something very valuable, caring for animals that once were on the street and would be dead. We have a few friends with similar values and income, probably. I lived in metro Boston for many years. You can easily make it on that income if you are careful, I think.
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