[MrGompers]

Originally Posted by davwve

I never made any statement wrt 401k and was speaking of tIRA in both previous responses as referenced. The deductible limit for a traditional IRA is based on income (MAGI) and whether you and/or spouse have a retirement plan available at work.


https://www.irs.gov/retirement-plans...duction-limits

Your link only confirms what I wrote. There is no functional difference between a 401k vs IRA. 401k are employer sponsored - IRA's are personal accounts but both receive the same tax treatment.


It doesn't really matter in the end since a person earning 1million a year is getting 10x less of a tax benefit than a person earning 100k a year assuming they both contribute the same amount.

[MrGompers]

Originally Posted by JayCT

That is correct. I looked into ways to circumvent the income limits for IRA's and found none that were legal. And before anyone asks, I make no where near $1 million per year. Jay

I was gonna say Malloy has chased all the millionaires outta here. Lamont will probably chase the remaining few away for good.



Maybe we'll have the whole state to ourselves ? What a treat that will be. No more traffic jams.

[CTartist]

Originally Posted by JayCT

People have been downsizing for decades. I am not sure why you would think that they are concerned with what is really only a couple hundred dollars off their income taxes. If their budgets are that tight, they should not be in that home to begin with. Jay

These stats are from this site. In New Canaan 28.4% of households make over $150,000 but that means 71.6% make less than $150,000.
//www.city-data.com/income/inco...nnecticut.html

States with the Highest Average SALT Deduction
for Households Earning $200,000 or More
https://www.nytimes.com/interactive/...bill-salt.html

New York......$84,964
California......$64,771
Connecticut...$61,997

So in CT the people above can not now deduct $51,997 of their SALT deduction. I bet at around the $150,000 level they are losing about $30,000 to $35,000 in SALT deductions. That's a lot of money and what they get back on the tax returns goes along way to help pay those hefty mortgages.

$51,000 at let's say the 30%* tax bracket is $15,300. Divide that by 12 months = $1275 a month. $1275 a month goes a long way to help pay those hefty mortgages in New Canaan and Darien.

The people I know have HH Incomes of about $150,000 and they are probably losing about $35,000 in SALT deductions. They have mortgages of about $4,000 a month. That's approx $800 less A MONTH from Uncle Sam to help pay their mortgages.

I worked in the banks mortgage department in Stamford but we serviced residents from Greenwich, Darien, and New Canaan too. Trust me on this one thing. Everyone is stretching to the limit to get into the average home in ALL towns. That is why in a previous post (that I made) we see that Weston has the highest foreclosure rate in FFC although that seems to defy logic. Everyone is doing the same thing....stretching to the limit to get into a house.

*I think I am going conservative too.

[Stylo]

I don’t believe those numbers. I make over 200k and can’t even touch New Canaan, outside an apartment or a total fixer upper. Unless that is only counting “salary” and not other means of income.

[East of the River]

Originally Posted by Stylo

I don’t believe those numbers. I make over 200k and can’t even touch New Canaan, outside an apartment or a total fixer upper. Unless that is only counting “salary” and not other means of income.

It includes retirees etc. drives down the average.

[CTartist]

Originally Posted by Stylo

I don’t believe those numbers. I make over 200k and can’t even touch New Canaan, outside an apartment or a total fixer upper. Unless that is only counting “salary” and not other means of income.

In my last post I wrote about many people I know who are friends and family having significant down payments on their houses that they get from parents/family in the greater Stamford area. When I worked in the County Federal Savings Mortgage department in Stamford we serviced loans in the greater Stamford area that included Greenwich, Darien and New Canaan. People in those towns would put significant down payments on the houses.

Also this.......

How do people in Stamford with HH incomes of $87,662 afford the average house of $526,300.
How do people in NYC with HH incomes of $58,856 afford the average house of $569,700.
How do people in White Plains with HH incomes of $85,791 afford the average house of $522,609.
How do people in Port Chester with HH incomes of $58,807 afford the average house of $442,991.
How do people in Mamaroneck with HH incomes of $83,335 afford the average house of $602,431.
etc.
etc.
etc.

All data on HH incomes and average/median house prices from City-Data.

[Newtohartfordct]

Originally Posted by CTartist

In my last post I wrote about many people I know who are friends and family having significant down payments on their houses that they get from parents/family in the greater Stamford area. When I worked in the County Federal Savings Mortgage department in Stamford we serviced loans in the greater Stamford area that included Greenwich, Darien and New Canaan. People in those towns would put significant down payments on the houses.

Also this.......

How do people in Stamford with HH incomes of $87,662 afford the average house of $526,300.
How do people in NYC with HH incomes of $58,856 afford the average house of $569,700.
How do people in White Plains with HH incomes of $85,791 afford the average house of $522,609.
How do people in Port Chester with HH incomes of $58,807 afford the average house of $442,991.
How do people in Mamaroneck with HH incomes of $83,335 afford the average house of $602,431.
etc.
etc.
etc.

All data on HH incomes and average/median house prices from City-Data.

Large down payments from saving for years. Also having multiple generations living together. This question was asked in another forum regarding CA and housing costs. In ethnic families (hispanic, asian, Indian, Slavic) living with grandparents is the norm. It allows both parents to work as grandparents help out with little ones and the combining of family resources. This is how it works in many parents of Latin American, southern/eastern Europe and Asia.

[CTartist]

Originally Posted by Newtohartfordct

Large down payments from saving for years. Also having multiple generations living together. This question was asked in another forum regarding CA and housing costs. In ethnic families (hispanic, asian, Indian, Slavic) living with grandparents is the norm. It allows both parents to work as grandparents help out with little ones and the combining of family resources. This is how it works in many parents of Latin American, southern/eastern Europe and Asia.

I am from Stamford of Italian descent. My grandmother did live with us. I have friends and relatives in the greater Stamford area of Greenwhich, Darien and New Canaan. My dad, both grandparents and many relatives were/are business owners. My mom and dad paid for our educations, paid for our weddings and gave their three children very good down payments on our houses. My dad went as far as paid for my car and my husband's car when we first got our house so we would not be burdened with car payments. What I and my siblings got was less than most friends and family I know in the greater Stamford area. Many of whom got significant down payments on houses (50%) and some got entire houses paid for. My family has been in the greater Stamford area since the late 1800's.

A lot of people in other parts of CT just don't understand how much money is sloshing around in FFC and of course the NYC area. That is how families with incomes of $80,000 can afford $600,000 houses.

So let's keep an eye out for what happens next year in the wealthier FFC towns in regards to the house prices and mill rates. My gut feeling from what I am witnessing with my own friends and family is there is going to be downward pressure on the house prices in south west FFC because of the SALT tax changes and will affect mill rates.

[JayCT]

Originally Posted by East of the River

It includes retirees etc. drives down the average.

Another thing to note is that many wealthy people have trust funds that pay for their homes, cars and daily needs. These things are not considered income and makes their reported income much lower than it seems. My aunt worked for one of the wealthiest families in the country. Though they lived in an enormous home in Greenwich, drove very expensive cars and lived a lavish lifestyle, their income was surprisingly modest. They did not need to make a lot, just pocket change. And they were very down to earth as well. Jay

[ryanthegoldengod]

Originally Posted by MrGompers

I was gonna say Malloy has chased all the millionaires outta here. Lamont will probably chase the remaining few away for good.



Maybe we'll have the whole state to ourselves ? What a treat that will be. No more traffic jams.

They aren't going anywhere. Except maybe 80 year old millionaires who move to Palm Beach. Which always seems to cause panic. Because, you know, it's so unusual for senior citizens to move to Florida.

What sector do a large percentage of rich CT people work in? Finance. Where is the financial center of the universe? New York City. Like flies to honey, they're just not leaving the tri-state area. So they're going to go to those noted tax shelter states of New York and New Jersey? As Seinfeld would say, good luck with alllllll of that.