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$60k doesn't cut it even if you own your home outright. This has nothing to do with renting and LL.
You missed the point about the impact of real estate taxes in NY. Even if your house is fully paid off, you still have to pay the mind-numbing property taxes, which are among the highest in the nation.
Many people are paying $12k - $20k in property taxes in NY (and NJ).
Add on the state income taxes, if your income is $60k, you pay an additional $7k - $8k of income tax. At $100k of income, you pay $15k to the state.
So, we started with $60k. We subtract about $7k for FIT, $15k for RE taxes, and $7k for state income taxes. That leaves you with about half your gross income. And you haven't bought anything or eaten anything yet. You haven't insured your home or auto (deduct about another $4k here) or signed up for health insurance.
I'll just say that $15k in real estate taxes in NY can be very, very high and unusual based on where you live, particularly when we start talking about the average homeowner. My parents have paid nothing close to that in NYC, where the effective property tax rate is .88%. This is considerably lower than the state average of 1.72%, but even if you're outside of NYC the average homeowner pays $3,749 a year in property taxes: https://www.rocketmortgage.com/learn...taxes-by-state
And then, at least in NYC, there are so many exemptions and credits based on income that assessed property taxes and exempt (actual) property taxes can take on very different meanings. The city has a fair market value of my parents' house in Brooklyn at over $1.5 million dollars. Based on this assessed value, the property taxes should be roughly $6,300 a year. With the BASIC STAR exemption, the actual property tax for last year as an example was less than $1,500.
Now, if you're in NYC and have a salary that puts you outside of the STAR exemption categories ($500,000 or less for the STAR credit and $250,000 or less for the STAR exemption . . . note there is also ENHANCED STAR for people 65 years of age and older), then you're going to be paying significantly more than what my parents do if in a similar situation otherwise. But that's not most people's reality.
It was a long time coming. The last time I saw CD rates at 5% was in 2006. After 2008 they went down to practically 0 until now. The Fed is slowly raising them. Right now nearly all the major banks have them at 3-4%. Projections are that at the next Fed meetings in Dec, Feb and March they will raise them another 1.5%. That means a senior with a million dollars in savings could be reaping $40-50,000 in interest by the end of the first quarter in 2023. That amount of interest along with SS could mean a senior would not have to draw down their savings in order to get the bills paid if their needs fall within those perimeters. They could free themselves from the uncertainty of the stock market. My principle had been steadily eroding from 2008 onward. Now that has been halted and I can actually see it start to rise again. The banks advertising 4% are easy to find. Just google "Best CD rates" and plenty will pop up. Good luck.
If your principal has been eroding since 2008, you must be in the wrong investments. I would assess your risk tolerance and invest accordingly.
I'll just say that $15k in real estate taxes in NY can be very, very high and unusual based on where you live, particularly when we start talking about the average homeowner. My parents have paid nothing close to that in NYC, where the effective property tax rate is .88%. This is considerably lower than the state average of 1.72%, but even if you're outside of NYC the average homeowner pays $3,749 a year in property taxes: https://www.rocketmortgage.com/learn...taxes-by-state
And then, at least in NYC, there are so many exemptions and credits based on income that assessed property taxes and exempt (actual) property taxes can take on very different meanings. The city has a fair market value of my parents' house in Brooklyn at over $1.5 million dollars. Based on this assessed value, the property taxes should be roughly $6,300 a year. With the BASIC STAR exemption, the actual property tax for last year as an example was less than $1,500.
Now, if you're in NYC and have a salary that puts you outside of the STAR exemption categories ($500,000 or less for the STAR credit and $250,000 or less for the STAR exemption . . . note there is also ENHANCED STAR for people 65 years of age and older), then you're going to be paying significantly more than what my parents do if in a similar situation otherwise. But that's not most people's reality.
Nyc is cheaper than Long Island or westchester as far as real estate taxes but instead nyc has a personal income tax on top of the state taxes .
I can tell you taxes on the 2 bedroom apartment we were going to buy in westchester were 9k a year .
Taxes on Our old house in queens which is 1800 sq ft is now 7k. That house is worth 900k.
My son in ryebrook ny pays 31k on a house worth 1.2 million.
I'll just say that $15k in real estate taxes in NY can be very, very high and unusual based on where you live, particularly when we start talking about the average homeowner. My parents have paid nothing close to that in NYC, where the effective property tax rate is .88%. This is considerably lower than the state average of 1.72%, but even if you're outside of NYC the average homeowner pays $3,749 a year in property taxes: https://www.rocketmortgage.com/learn...taxes-by-state
And then, at least in NYC, there are so many exemptions and credits based on income that assessed property taxes and exempt (actual) property taxes can take on very different meanings. The city has a fair market value of my parents' house in Brooklyn at over $1.5 million dollars. Based on this assessed value, the property taxes should be roughly $6,300 a year. With the BASIC STAR exemption, the actual property tax for last year as an example was less than $1,500.
Now, if you're in NYC and have a salary that puts you outside of the STAR exemption categories ($500,000 or less for the STAR credit and $250,000 or less for the STAR exemption . . . note there is also ENHANCED STAR for people 65 years of age and older), then you're going to be paying significantly more than what my parents do if in a similar situation otherwise. But that's not most people's reality.
Here's a snapshot of the NYC property tax breakdown (there's apparently some other formula used for market value property taxes, too, as the assessed market value number is still significantly less than .88%.
Nyc is cheaper than Long Island or westchester as far as real estate taxes but instead nyc has a personal income tax on top of the state taxes .
I can tell you taxes on the 2 bedroom apartment we were going to buy in westchester were 9k a year .
Taxes on Our old house in queens which is 1800 sq ft is now 7k. That house is worth 900k.
My son in ryebrook ny pays 31k on a house worth 1.2 million
True. My point is that NYS is big and diverse when it comes to tax law, so folks who earn a certain amount while having a paid off house can certainly make it work with $60k a year, though I can appreciate that this isn't the case for everyone. And, considering that this is the retirement forum, while it is key to note that NYC has an income tax, I'm tracking that NY doesn't tax social security income and that retirement accounts/private pensions are deductible up to $20k. Also tracking that NY doesn't tax pension income period if the source of the pension is NY state or local government. The vast majority of New Yorkers live in jurisdictions with property taxes considerably lower than Westchester, Nassau, or Suffolk counties.
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