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states with high property taxes can expect to see an exodus of older people - and their money. Some states are friendlier than others when it comes to retired citizens and my guess is they'll see an influx of and reap the benefits from those citizens.
I agree - - states like Alabama which have a tax structure designed to be friendly to retirees on social security, federal pensions, and so on, should probably find that a lot of new retirees settle there.
When I think of high property taxes, I think of Texas. They have no income tax but the property taxes when I lived there (in College Station,1984-1996) were through the roof, though houses were very low in price. I think a lot of boomers are moving to Texas for retirement despite the property taxes, due to the warm climate, western flavor, lack of income tax, and other advantages of living in Texas.
Doesn't it then follow that the receiving states will soon have larger medical and other social services burdens from its new elderly residents? And start raising taxes to cover those burdens? Sure will keep the real estate markets hopping as retirees look for that perfect spot! Pretty tough to have all the services we boomers have come to expect and want and expect not to pay for them. You pay one way or the other -- I'd prefer income or flat tax -- and yet, we're retiring to Texas! Go figure.
Doesn't it then follow that the receiving states will soon have larger medical and other social services burdens from its new elderly residents? And start raising taxes to cover those burdens? Sure will keep the real estate markets hopping as retirees look for that perfect spot! Pretty tough to have all the services we boomers have come to expect and want and expect not to pay for them. You pay one way or the other -- I'd prefer income or flat tax -- and yet, we're retiring to Texas! Go figure.
I think the states with the large inflow of illegal aliens (mostly with little education, skills, or wealth) continue to have the fastest growing burden on social services. I left Texas to get away from high property taxes (as well as the heat and congestion). My Dallas, Texas taxes were finally lowered to 2.1% of appraised value (so $4200 a year on a $200,000 home) and $400 of that was just to support the county hospital.
I feel that much of the problem comes from poor tax policy where commercial and high-value properties pay only a fraction of their fair share, but that continues to draw commerce into the state.
Retirement planning for many of us appears to be a constant exercise in finding tax relief as society blindly demands more social services and the government offers them and only later looks for funds to cover the high costs.
On taxes, this statement could cancel out all arguments:
"America has 400 billionaires -- and 37 million people below the official poverty line. "
Argue until you're blue in the face. If these numbers hold up, they could turn the US into a potential Imperialist Russia. We all know how that turned out. If we can't re-distribute wealth fairly and within the law, the oppressed masses could do the unthinkable. I'd prefer stiffer taxes for the billionaires.
On retirement, (apologies to Waterlilly for contributing to the thread hijack) states with high property taxes can expect to see an exodus of older people - and their money. Some states are friendlier than others when it comes to retired citizens and my guess is they'll see an influx of and reap the benefits from those citizens.
Let me ask you something, if you please. If a person came into the bank where you keep your savings and took everything the bank had, what would you want to see happen to that person?
Frankly, I don't know about Baby Boomers retiring. Some of us are prepared but I think this percentage is very low.
Most of the Baby Boomer group I work with are more Jones than Pluggers.
To define,
A Plugger (myself) is a person who has always managed his/her money to future planning, knowing one day at 70 we can no longer do what we did at 30. If we have a beer paycheck than we live according to Budweiser and not imported German premium. We drive Hyundai's not Hummers and eat at diners not 5 star restaurants.
A Jones, which I see as the majority are the Boomers who have caviar taste on beer paychecks. Loaded to the gills in debt, the credit card yuppies have no limits. 100% equity home loans on interest only installments, Beemers and Hummers loaded to the hilt on lease payments and bald tires, and the women with rubber enhanced breasts with the pony tail through the baseball caps, completed with enhanced lips so large they cannot say the alphabet. And to keep it equal the metrosexual men with died hair and water muscles thanks to chemical enhanced suppliments at GNC.
As far as what the US will look like?
Well, we can see the current slope we have undertaken since our first elected "Baby Boom" President followed by the current one. I would gage it as downhill.
My Dad always told me (he was a depression kid) let me paraphrase the best I can "God help us all when that self-absorbed Me Generation of yours takes over" were all going to heck in a handbasket. Of course I would always confront him as we were the enlighted ones. Hindsight may tell me he was correct.
Frankly, I don't know about Baby Boomers retiring. Some of us are prepared but I think this percentage is very low.
I agree completely. The problem (as I see it) is that we seem to live as though aging and death were optional. Retirement is not optional for many seniors. Although some are able to work until they are aged, many become too physically or mentally disabled to hold down a job. As much as we would like to think we are invulnerable, many elderly are in nursing homes or are living at home but barely able to even care for themselves, much less to pull down a livable salary.
When those who are not prepared for retirement hit the brick wall that old age presents to many of us, a huge burden on social services could result. Younger people would rightfully resent this and I expect that respectful, caring attitudes towards the aged will probably disappear along with senior discounts and such.
Frankly, I don't know about Baby Boomers retiring. Some of us are prepared but I think this percentage is very low.
Most of the Baby Boomer group I work with are more Jones than Pluggers.
To define,
A Plugger (myself) is a person who has always managed his/her money to future planning, knowing one day at 70 we can no longer do what we did at 30. If we have a beer paycheck than we live according to Budweiser and not imported German premium. We drive Hyundai's not Hummers and eat at diners not 5 star restaurants.
A Jones, which I see as the majority are the Boomers who have caviar taste on beer paychecks. Loaded to the gills in debt, the credit card yuppies have no limits. 100% equity home loans on interest only installments, Beemers and Hummers loaded to the hilt on lease payments and bald tires, and the women with rubber enhanced breasts with the pony tail through the baseball caps, completed with enhanced lips so large they cannot say the alphabet. And to keep it equal the metrosexual men with died hair and water muscles thanks to chemical enhanced suppliments at GNC.
As far as what the US will look like?
Well, we can see the current slope we have undertaken since our first elected "Baby Boom" President followed by the current one. I would gage it as downhill.
My Dad always told me (he was a depression kid) let me paraphrase the best I can "God help us all when that self-absorbed Me Generation of yours takes over" were all going to heck in a handbasket. Of course I would always confront him as we were the enlighted ones. Hindsight may tell me he was correct.
I tend to agree... I'm 46 and have never fallen into the credit card/loan debt that seems to consume three quarters of the people I know... I've had my eggs and tuna fish and cereal days years ago and now I can buy whatever I need whenever I need it. I'm simple as a man goes... but I can buy whims...golf when needed, which is as often as possible , any food, clothes, etc... but, I stay in my means and don't exceed them... one of the worst things I hear people down here say is that "we are approved for a 250K house! or whatever. I always say live below your means and you'll have some extra money to enjoy your life and not have to worry so much...well then, look at 150K houses then... I could go out tommorrow and buy a new beemer... but, I'll wait until next year to decide... I'll keep rolling on with the old standard right now until I can make that choice... I'm certainly not cheap but I always have lived below my means that I can splurge whenver I want to... speaking of which... its three months until the NFL again so I'm going to splurge on a 38" hi everything TV and get direct TV for the Sunday Ticket... the fun times and people, and memories that will come from that totally eclipse any fun from a new beemer... games, food, cooking, laughs, people, ... sometimes I go crazy with the things that are somehow so important to some that amount to nothing.... the absolute rule is to live Below your means... don't try to impress anybody, just enjoy what you like...
I am bumping 44 and grew up in S. Fl. What I know about retirees is what I have witnessed all my life.
Most have the bulk of their wealth tied up in their homes. In the days of old, they would sell there $250,000 house in the Jersey suburbs and move to S. Fl and buy a $50,000 condo. The remaining $200,000 would be in a Certificate of Deposit at 8% to supplement their social security.
Now Florida housing costs have caught up w/the NE. (Crime is also on the rise) So if history is to repeat itself as it so often does ..... the retirees have to find the NEW Florida. The new appealing part of the country where they can buy a condo or home for about a fifth of what they are selling their home for.
I work in a department of 35 people and, so far 6 of us (all young boomers) have bought lots out of Fl in areas where we assume the cost of living will be affordable. We are doing it now for fear of being priced out of the market later. None are building - but we got the land. If you consider that 20% of my little department has done this .... imagine the bigger picture. Land is flying off the shelves like hot cakes in places so remote you can't order a pizza by phone. you can bet that land will escalate in a very short time in these NEW Floridas.
I see positive things happening for the young generation. When the baby boomers FINALLY retire, lots of jobs will open up and the young generation will be very much in demand almost everywhere.
Social security, however, will be a whole 'nother story...
Well from an online site i found it said that more than 76 million of us are baby boomers. That's about 28% of the population. That is going to leave a big hole in the work force.
It may also have some affect on the places that baby boomer end up living or moving to. Yes, places that offer low taxes will be popular as will places with good weather.
I'm going to enjoy watching the changes to come in the future.
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When Baby Boomers Retire?
, any food, clothes, etc... but, I stay in my means and don't exceed them... one of the worst things I hear people down here say is that "we are approved for a 250K house! or whatever. I always say live below your means and you'll have some extra money to enjoy your life and not have to worry so much...well then, look at 150K houses then... I could go out tommorrow and buy a new beemer... but, I'll wait until next year to decide... I'll keep rolling on with the old standard right now until I can make that choice... I'm certainly not cheap but I always have lived below my means that I can splurge whenver I want to... speaking of which... its three months until the NFL again so I'm going to splurge on a 38" hi everything TV and get direct TV for the Sunday Ticket... the fun times and people, and memories that will come from that totally eclipse any fun from a new beemer... games, food, cooking, laughs, people, ... sometimes I go crazy with the things that are somehow so important to some that amount to nothing.... the absolute rule is to live Below your means... don't try to impress anybody, just enjoy what you like...
