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You could do more automatic estimated tax, quarterly; have more taken out of your paycheck or pension. Then you can fool yourself in thinking that you are a winner when you get your tax rebate! Some people do that because they use these methods to save money??? like a christmas fund.
Or, a better way is to remain poor, have little income then you will not have to do a tax return; or you can have your income from tax free securities; or you can be real wealthy and find all those schemes to avoid paying any tax.
I like the idea of just being poor--it is so much simplier.
Well, I just wrote my checks to pay my taxes this year and I am truly in shock. Not to go into specifics, but I thought I had it figured out pretty well, but I was way off....boy, when a person is single with no extra deductions to take...wow, I got hit really hard. I actually cried.
So I have to make more adjustments and redo my "shoestring" budget.... if those xxxxx politicians raise our taxes any more than they already are, I just don't know how people are going to make it. And I consider myself a middle income person (or lower middle income since I live in California).
Anyway, thanks for being here and letting me vent...
LoveAutumn, this is the biggest concern I have--property taxes. They are only going to go up and up. Even if they only go up $50 a year (which they won't, it will be much more), what's it going to be like when we're 70 or 75? I just can't wrap my mind around it.
If you are 65 or older, some states allow reductions. Check into it.
LoveAutumn, this is the biggest concern I have--property taxes. They are only going to go up and up. Even if they only go up $50 a year (which they won't, it will be much more), what's it going to be like when we're 70 or 75? I just can't wrap my mind around it.
If you are 65 or older, some states allow reductions. Check into it.
Good Advice. There are programs that reduce taxes when you turn 65 and some have programs that allow you to not pay the tax and a lien is filed with interest that is collected on the sale of the property.
I never have problems paying the tax. When, it comes due, I just pay it all, so I do not have to bother with a part now and part later. Since, I am mortgage free, I just set aside a proportional amount each month for the tax and kiss it goodbye, at that time. The taxes have not risen that dramatically on my house and have at times been reduced. I really do not care if it does; what will happen, will happen--and I will deal with it. I am too old and sick to worry about money--the least important issue in my life.
I like dat words from the song in the musical Porgy and Bess:
"Oh, I got plenty o' nuttin'
And nuttin's plenty for me"
Livecontent
Last edited by livecontent; 03-29-2011 at 10:06 PM..
LoveAutumn, this is the biggest concern I have--property taxes. They are only going to go up and up. Even if they only go up $50 a year (which they won't, it will be much more), what's it going to be like when we're 70 or 75? I just can't wrap my mind around it.
If you are 65 or older, some states allow reductions. Check into it.
I know what you mean... I bought my home in 2005 and the assessor must think my 1957 California Ranch Style Home is made of gold because the value is now within 10k of what I paid for it back when the market was hot...
I'm sure taxes will be my biggest hurdle financially at retirement.
I do know one of the programs to defer taxes til the property is sold is no longer available in my State.
Yes, I can certainly understand your concern over property taxes...I read about some of those tax rates, especially back east, and shudder to think how people pay that amount of money every year on top of everything else we have to pay for. Makes me glad I'm a renter sometimes, although I lose the benefit of a tax write-off.
I did immediately change my exemptions and have extra taken out of my paychecks, so that will help some. I hope the IRS gives me a "once in a lifetime" break and doesn't sent me a penalty bill for owing too much at the end of the year (fat chance)...that's another thing that is ridiculous. As long as you pay the whole tax amount due by April 15, why should there be a penalty...what a rip off.
Oh well, I'm very grateful I have a good job/benefits, etc. so I'll just tighten the belt a little more. We all have to hang in there..you know what they say about death and taxes.
Yes, I can certainly understand your concern over property taxes...I read about some of those tax rates, especially back east, and shudder to think how people pay that amount of money every year on top of everything else we have to pay for. Makes me glad I'm a renter sometimes, although I lose the benefit of a tax write-off.
Not everywhere 'back East' has high property taxes.
Mine end up being about $850/year for a 4bdrm house and 150 acres.
Quote:
... I did immediately change my exemptions and have extra taken out of my paychecks, so that will help some. I hope the IRS gives me a "once in a lifetime" break and doesn't sent me a penalty bill for owing too much at the end of the year (fat chance) ...that's another thing that is ridiculous. As long as you pay the whole tax amount due by April 15, why should there be a penalty...what a rip off.
Oh well, I'm very grateful I have a good job/benefits, etc. so I'll just tighten the belt a little more. We all have to hang in there..you know what they say about death and taxes.
Since this sub-forum is under the idea of retirees, keep in mind that many pensions pay less then the minimum tax bracket.
With my pension plus my Dw's p/t income we still do not earn a high enough income to pay income taxes, even being on the East Coast.
I understand that since your working now, you are earning a higher income, however when you go on pension your income will likely drop. So will your taxes.
I have just discovered this forum...excited to read all the past posts (well, not all) and great ideas. After a painful divorce, I quit my job (age 56) and took a year to determine where I wanted to retire, then empty the house after 25 yrs...am about to move to the SE coast and can't wait to do so.....decided to retire at my favorite vacation spot.
I will have no mortgage but taxes, living costs etc as all have mentioned....biggest worry is a HOA fee per month (townhome)~ (looked for 8 months for a home, and this one suited best all around). Hoping to set aside that $ in an acct and not use it for anything else if possible.
As others, I have d/c cable (with pleasure), have no newspaper or mag subscriptions etc. Always looking for more ways to cut back. Since I am not working, I enjoy getting back to cooking from scratch (something hard to do when full time).....and shopping frugally. Fav stores: Big Lots and Aldi. Might need to work part-time but I have totally enjoyed time not working and find that there is a wonderful life outside of work-and no stress, dress clothes, commuting, annoying co-workers () etc. and time for volunteer work.
Living this way is fun challenge! I just hope to scrape by and later get a reverse mortgage to help me in later years.
Sorry for the long post but just wanted to get a "review" of my situation from those more experienced with living in this way. Any advice for me????
I have just discovered this forum...excited to read all the past posts (well, not all) and great ideas. After a painful divorce, I quit my job (age 56) and took a year to determine where I wanted to retire, then empty the house after 25 yrs...am about to move to the SE coast and can't wait to do so.....decided to retire at my favorite vacation spot.
I will have no mortgage but taxes, living costs etc as all have mentioned....biggest worry is a HOA fee per month (townhome)~ (looked for 8 months for a home, and this one suited best all around). Hoping to set aside that $ in an acct and not use it for anything else if possible.
As others, I have d/c cable (with pleasure), have no newspaper or mag subscriptions etc. Always looking for more ways to cut back. Since I am not working, I enjoy getting back to cooking from scratch (something hard to do when full time).....and shopping frugally. Fav stores: Big Lots and Aldi. Might need to work part-time but I have totally enjoyed time not working and find that there is a wonderful life outside of work-and no stress, dress clothes, commuting, annoying co-workers () etc. and time for volunteer work.
Living this way is fun challenge! I just hope to scrape by and later get a reverse mortgage to help me in later years.
Sorry for the long post but just wanted to get a "review" of my situation from those more experienced with living in this way. Any advice for me????
Welcome to the Retiree Shoestringer forum, which I founded way back.
Sounds like you have a good plan and you're already frugal. The only thing is, if you move to the Southeast, air conditioning costs. Of course that balances heating costs in colder climates. I love your upbeat comments about how great it is not to work. I miss my job (not the people associated with it by any means) and I miss "having a purpose." But I can no longer keep up with the stress and BS of the workplace.
Well thanks, newenglandgirl, for starting this post! I can spend hours just reading the past posts.
RE moving to the SE coast-I am from NC so in moving to SC coast, I know the AC bills already....but my heating bill this winter was the worst ever and much much more than AC......I am not a fan of winter so further south is for me. BTW, while New England is a lovely place to visit, I could not tolerate the cold. Below 40 degrees or so, I want to go inside and hibernate!
I just wanted to say I love this forum. It's a great read.
My plan is to start collecting SS at 62 even if it's the reduced amount. I'm soon going to turn 57 and I really don't think I can work for more than 5 years (I'm starting to hate work now!!!!)
I am learning to live very frugally - now I purchase all my clothes at thrift shops (an on Senior's day when prices are half off on most items!!!).
In my case most of my financial "wealth" is in the equity in my house. My IRA and 401(K) funds have been pretty stagnant for the past few years ... it's no joke but those funds are enough to support me for about one year!!!
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Some people do that because they use these methods to save money??? like a christmas fund.
Any advice welcome! "retired" at 57??
) etc. and time for volunteer work.
