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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 have 0 risk tolerance. I kept my savings in CD's when they were only paying 0.1 so you know I took a hit, but my parents had been heavily invested in real estate which I sold bit by bit over the last decade to take care of their needs and then when they passed away I inherited what remained and sold it during the run-up in prices here in LA during 2020. Capital gain taxes were brutal. Watch out.
I'd love to get the brokered CD's because of the higher interest rate but the fact the broker cannot hand me a certificate at the time he draws the money out of the brokerage account (the CD has to "settle" for several days before any proof of purchase is issued by the bank offering the CD) goes against all my rules for absolute proof of CD issue to me, because I buy the CD's for$250K at a time and I don't want a broker having access to that money--too much theft going around in brokerages. You're fortunate you have a broker you can trust.
Are you not aware that your money is insured against theft by the brokerage? Your money is as safe from theft or failure of a brokerage as it is from theft or failure of a bank. Cash in either a bank or a brokerage is insured up to $250k. The FDIC insures your money in a bank and the SIPC insures your money in a brokerage account.
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%.
Star and enhanced star are at best just a few hundred dollars at best …they suck in fact.
According to the census , for nyc
Median property taxes paid: $5,633
Median home value: $680,800
Median household income (owner-occupied homes): $106,902
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.
3749 a year in taxes is for a 300k home …good luck finding a 300k home in any desirable area in ny that isn’t rural or far away from city life or has decent paying jobs.
The reality is most in the city here are in the 5 to 10k range as far as real estate taxes in good areas …long island is 12-18k unless you are way east
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.
As a senior we pay very little state and local taxes in nyc ….as a worker it was very painful ..
We pay so little in state and local taxes here that I get a 1500 dollar tax credit for having a ny partnership plan for long term care and I can’t take the whole thing because I don’t pay enough in tax .
Our ss isn’t taxed by t the state , my wife’s pension isn’t taxed , our treasury interest isn’t taxed , the rmds in retirement money is taxed because the 20k exemption is an either or ….if you use it for the pension then you don’t get it on the rmd money
As a senior we pay very little state and local taxes in nyc ….as a worker it was very painful ..
We pay so little in state and local taxes here that I get a 1500 dollar tax credit for having a ny partnership plan for long term care and I can’t take the whole thing because I don’t pay enough in tax .
Our ss isn’t taxed by t the state , my wife’s pension isn’t taxed , our treasury interest isn’t taxed , the rmds in retirement money is taxed because the 20k exemption is an either or ….if you use it for the pension then you don’t get it on the rmd money
Is the 20k exemption per person, 40K per couple? I was under that impression and would hate to be wrong.
Star and enhanced star are at best just a few hundred dollars at best …they suck in fact.
According to the census , for nyc
Median property taxes paid: $5,633
Median home value: $680,800
Median household income (owner-occupied homes): $106,902
STAR saves my parents thousands of dollars a year in property taxes. But this just shows a different mentality between you and some others, which is fine. For some, even if it was a savings of a few hundred a year, that would be from from sucking.
3749 a year in taxes is for a 300k home …good luck finding a 300k home in any desirable area in ny that isn’t rural or far away from city life or has decent paying jobs.
The reality is most in the city here are in the 5 to 10k range as far as real estate taxes in good areas …long island is 12-18k unless you are way east
What is a "good area" is inherently subjective. Bottom line is that there are plenty of people in NYS and NYC living off of $60k a year or less, a figure that takes on even greater meaning if you have a paid off house.
This source says that the statewide median is under $5,800 a year, which is still a far cry from the original $15k figure I took issue with from the other poster: https://leavethekey.com/blog/propert...york-city-2021
Keep in mind that the median household income in NYC (as an example) is still less than $70k a year, while the average household income is $107k. True, it's become significantly harder for people earning the average income to purchase property in NYC; forget about in the "hot" areas. But considering that this is the retirement forum, many people who are in the retirement boat in NYC/NYS aren't rolling in dough and bought their places when things were much more affordable; my parents bought their place in Prospect Heights--today a "hot" area--for $200k in 1999, which was even then tens of thousands over what the average home was selling for in our immediate areas . . . you can't buy for less than $1.3 million today. I remind you that the OP mentions $60k in expenses with no housing expenses (paid off house).
I would be singing an entirely different tune for newcomers seeking to move to the city, either for work or for retirement. But the bottom line is that many people are locked into much better situations across NYC and NYS than newcomers would be.
Last edited by prospectheightsresident; 12-05-2022 at 07:14 AM..
STAR saves my parents thousands of dollars a year in property taxes. But this just shows a different mentality between you and some others, which is fine. For some, even if it was a savings of a few hundred a year, that would be from from sucking.
“There are two types of STAR benefits depending on household income:
Basic STAR is for homeowners whose total household income is $500,000 or less. The benefit is estimated to be a $293 tax reduction.
Enhanced STAR is for homeowners 65 and older whose total household income for all owners and spouses who live with them is $92,000 or less. The benefit is estimated to be a $650 tax reduction.
If you’re eligible for the STAR credit, you’ll receive a check for the amount of your STAR savings.”
The senior program which is larger is capped at 58,400 in total income for a household .
many homeowners are likely higher as you said yourself , the median is under 70k not 60k
That can provide a bigger reduction but it only helps if you are below that as a household income.
Wouldn’t help us in the least.
By the same token , a senior in a stabilized apartment who’s rent exceeds 35% of income is exempt from rent increase totally under the scrie program
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