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as of now a couple can pass 6 million utilizing a trust which is what i said . anymore and you could still hit the cliff.
but again there are ways around it through life insurance with the kids as owners of the policy. just buy a big single premium life policy . my kids are the owners of my policy and it passes outside our estate .
charitable trusts work as wqell as plain old donations.
the real wealthy will still be effected but less and less wuill have to worry as we head on up to 5 million with a couple good for 10 million.
we are one of the better states when it come to estate taxes.
Not to mention that the figures you are talking about are way,way beyond even the imagination of the vast majority. I am assuming that a net worth of 5 or 6 M puts one in the 1% category because I know that a net worth of a little over 1M puts one in the top 3%.
Anyway,FWIW, I'm not going anywhere. My entire retirement has been planned around staying put right here in NYC
I know that a net worth of a little over 1M puts one in the top 3%.
This can't be right given how expense owning a house in a majority city is. That would make anyone owning a half decent property as part of the top 3%.
Quote:
Overall, the top 1% of U.S. households have a net worth above $6.8 million or at least $521,000 in income, according to data from the Federal Reserve and the Tax Policy Center in Washington. The cutoffs for the top 5% are $1.9 million in net worth, or $209,000 in income. - Dec 28, 2012
This can't be right given how expense owning a house in a majority city is. That would make anyone owning a half decent property as part of the top 3%.
Well,maybe top 5% but only if they own it outright with no mortgage and have absolutely no other debt and some other assets.That's the trick.The vast majority of people in 1 or 2 million dollar houses have mortgages and other debts that drag down their net worth.
It will depend on which calculator you use because they are all slightly different but generally anyone with a net worth of over 1 M is in the top 5 %. 5 million makes you a 2 per center. The rest is in between.
New York City *can* be a wonderful place to "retire" if you have the funds necessary. Otherwise you might want to reconsider.
Have said it before and will do so again; you can walk the streets of Manhattan at night and see older persons from middle aged to elderly digging through vermin infested garbage bags for food. These are not hipster "freegans", or whatever but quite simply it is either that and of food kitchens/meals on wheels, or starve.
New York City is a very expensive place to live. If you were barely holding
on during your active working years then it will only worsen as you age.
Walking around the UES one night it struck me just how many doormen were >60. You also see plenty of those in that demographic working in thrift shops, as servers in diners and so forth.
New York City *can* be a wonderful place to "retire" if you have the funds necessary. Otherwise you might want to reconsider.
Have said it before and will do so again; you can walk the streets of Manhattan at night and see older persons from middle aged to elderly digging through vermin infested garbage bags for food. These are not hipster "freegans", or whatever but quite simply it is either that and of food kitchens/meals on wheels, or starve.
New York City is a very expensive place to live. If you were barely holding
on during your active working years then it will only worsen as you age.
Walking around the UES one night it struck me just how many doormen were >60. You also see plenty of those in that demographic working in thrift shops, as servers in diners and so forth.
All places have their pros and cons. Those elderly people digging through garbage won't have such a good time if they move to rural areas either. Many elderly people can no longer drive (or may not be able to afford a car on just social security). So getting to medical appointments,food, and other necessary things is often a serious issue.
If you suggest elderly people leave NYC for other cities, guess what other cities tend to be expensive as well.
Many younger people end up having to put older relatives in homes, but before it gets that bad they often need a lot of help. If your children are in NYC you may want to reconsider leaving, that's an important part of your support network.
But there are old people without funds who remain in NYC. I personally know old people with just social security. They go to HRA to get food stamps, do soup kitchens, etc. I've spoke to some of these older people and they like NYC because it's very easy for them to get to social services, and with mass transit it's easy for them to get around.
A lot of older people in NYC move into various forms of subsidized housing. You do not have to be a rich older person to stay in NYC during retirement, that is a MYTH!
All places have their pros and cons. Those elderly people digging through garbage won't have such a good time if they move to rural areas either. Many elderly people can no longer drive (or may not be able to afford a car on just social security). So getting to medical appointments,food, and other necessary things is often a serious issue.
If you suggest elderly people leave NYC for other cities, guess what other cities tend to be expensive as well.
Many younger people end up having to put older relatives in homes, but before it gets that bad they often need a lot of help. If your children are in NYC you may want to reconsider leaving, that's an important part of your support network.
But there are old people without funds who remain in NYC. I personally know old people with just social security. They go to HRA to get food stamps, do soup kitchens, etc. I've spoke to some of these older people and they like NYC because it's very easy for them to get to social services, and with mass transit it's easy for them to get around.
A lot of older people in NYC move into various forms of subsidized housing. You do not have to be a rich older person to stay in NYC during retirement, that is a MYTH!
It is not *easy* for anyone senior citizen or young to just "move into" subsidized housing. Are you aware of the very long list and high demand for such places?
Living on social services and other anti-poverty measures is *NOT* my idea of a secure retirement. Yes, persons do so but if that is how you are planning your golden years you have my sympathies.
It is not *easy* for anyone senior citizen or young to just "move into" subsidized housing. Are you aware of the very long list and high demand for such places?
Living on social services and other anti-poverty measures is *NOT* my idea of a secure retirement. Yes, persons do so but if that is how you are planning your golden years you have my sympathies.
A rather large chunk of the working class will be living on social security. Poor seniors qualify for medicaid ON TOP of MEDICARE (medicare doesn't pay for services like dentists). A decently large percentage of people work in service sector or small businesses that pay no retirement benefits. So social services is what they will depend upon when they retire.
Many old people in NYC OUTSIDE of subsidized housing (obviously I am speaking of the poor ones) rely on food stamps, soup kitchens, etc. Actually this is true on a national basis of poor older people who only have social security in entirement.
Working class people do not get a secure retirement anywhere in the country.
no where is stopping work a guaranteed right either. it is really a priveledge for those who have achieved the level of having no longer to have to work for their money but can now have their money work for them.
working until 70 can be the silver bullet of retirement. sure many people can't but a whole lot more just don't want to by choice .
but the difference between 62 and 70 can really help an under funded retirement become a decent one.
the ss check at 70 is almost 2x what it is at 62 with colas added
you don't spend down savings for 8 years
you can contribute to savings for 8 more years
your savings if invested can compound for 8 more years
you have 8 years less to support of life.
all of the above can make a bad financial situation a whole lot better.
Of course, losing your job at 61 makes for a different set of needs.
And of REALLY course, dropping dead at 69 after scrimping along for 7 years while awaiting your SS windfall is a REAL bummer.
there is no easy answer to the problem and for those that can't work there may be just no answer. living with relatives or friends may be the only anwer.
but for many working longer can be that silver bullet just because it can be so effective when your underfunded. it is a whole lot easier working longer until 70 than first finding a job at 85 when you ran out of money before you ran out of time. .
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