Retirement thoughts Past Present Future

[jyoutz]

This is true for those with below average lifespan expectations.

In my case my break even point retiring at age 70 vs 62 is age 75 before considering the Federal income taxes due on SS for the 8 prior years of drawings.

There is no rule of thumb that applies to everyone when it comes to when to signing up for social security.
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True, but most people are comparing break even at ages 62 , 65, or 67, not age 70.

That explains why so many people are flocking to PA to retire.

sunuvagun

Nope. The weather explains it.

 

[jyoutz]

Did I mention the sales tax for the “privilege” to live in Killadelphia? only 8%
Oh, and the wage tax in Killy is another 3.93%.

what a bargain to go along with 500 murders per year
Everyone scared poopless of getting carjacked. They dont rip you out of the car and throw you on the ground. They put 2 in your hat and drive your car away.

Pretty much the same in all big cities. I’m sure that rural PA has some really great places to live.

 

[Gale Hawkins]

True, but most people are comparing break even at ages 62 , 65, or 67, not age 70.

Nope. The weather explains it.

Wonder why that is?

I'm adverse to increasing my Federal tax bill for no long term gain.

For the past 4 years my take home pay has been zero to negative due to max funding of my Simple IRA. I plan to do this as long as it is my option and desire. While this is not a huge $$$ amount hopefully it helps offset negative stock market and inflation damages.

As was pointed out no two people may have the same retirement plan needs. If I had not lost 30 years before thinking about retirement needs my push today at 71 may would have no life style importance going forward. Our two kids showing up at age 46 when my health and finances were failing.

Dual crisises plus risking the roof over the heads of one's new born babies are make or break crisises.

Thankfully all three resolved positively after I realized the sources of roadblocks were ONLY ME.

 

[Oaktree]

Florida’s state sales tax is 6%, which is the same as PA. However PA also has a 3.07% income tax and PA. Florida has 0% state income tax. Florida has 25.3 cents per gallon gasoline tax. PA gasoline tax is 58.7 cents per gallon.

Its not so much a shell game, PA just costs a lot more in taxes than Florida to live.
Many rust belt states, like NY, PA, MA, CT, VT etc are similar to PA in taxes. I think it comes down to the high tax states giving away more ”free” services, or having more crumpling mismanaged infrastructure to repair.

Florida rakes in a LOT of money from tourists and snowbirds.
Last I knew, property taxes were based on what you paid for your property...someone who's been there a long time pays much less in taxes than someone who owns similar house in the same neighborhood, but bought it recently. I believe there's also some sort of two-tier system where full-time residents get some sort of tax deduction.

 

[Username Taken]

Nope. The weather explains it.

Not even close. The most casual glance at Census statistics will tell you that people are moving from High Tax States to Low Tax States.

The Weather has next to nothing to do with it.

Americans ditched high-tax states during pandemic, study finds

States with higher income tax rates saw significant population declines, whereas states with lower taxes had accelerated population growth.

news.yahoo.com

For example, the District of Columbia — which raised income taxes in 2021— saw its population downsize an estimated 2.8% between April 2020 and July 2021, while New York, which has some of the highest taxes, lost 1.8% of its residents. This was followed by Illinois, Hawaii, and California — all high-tax states — which make up the top five states with the largest population losses.

By contrast, low or no personal income tax states saw the biggest population increases, including Florida, Texas, New Hampshire, South Dakota, Nevada, and Tennessee

 

[Fuddy1952]

The social security question isn’t so simple. For example, if someone takes social security at age 62 and gets $20k per year or waits until age 67 and gets $30k per year. The person who started at 62 has already received $100k by age 67. The person who waited until 67 must wait until age 77 to break even with the payments that have been received by the early retiree. Not exact numbers of course, but the concept is the same. Nobody should be lured by higher payments for delaying retirement until they check on their own SS status and their “break even” age.

Very true. A financial consultant I know (very astute) suggested we take ours at 62. The mathematical turning point was like 82-83.
Now...that may not apply to everyone.

 

[Gale Hawkins]

Average Retirement Savings for Baby Boomers

Average is coming up short in this environment so I am still working on the math. My call to SS when I was about to turn 62 is still paying off.

 

[Fuddy1952]

Regarding places to settle following retirement, northern Wisconsin and adjacent UP of Michigan are terrible, horrid places. Nobody should move there!

And do NOT move to Virginia!

 

[Username Taken]

Florida rakes in a LOT of money from tourists and snowbirds.
Last I knew, property taxes were based on what you paid for your property...someone who's been there a long time pays much less in taxes than someone who owns similar house in the same neighborhood, but bought it recently. I believe there's also some sort of two-tier system where full-time residents get some sort of tax deduction.

Yeah, Homestead Exemption is a big deal. Everywhere.

Tourism? New Yawk has more tourism than we do. And they're always broke. Always.

A friend of my Wife's lives in up State New Yawk and their property tax bill is atrocious. It's not even that nice and they're paying thousands and thousands in Property Taxes. Most of which goes to support the criminals in New Yawk Snitty. True fact.

My House was just appraised by the VA, who are notorious pricks, and it came in at $360,000. It's not even all that nice of a house. It's okay. But I'm not telling you that to make you think I have money. I don't, trust me. I'm telling you that because my Property Taxes last year were, $1,200. No Agricultural exemption, no disability exemption, nothing.

We have a program down here called 'Save Our Homes' (SOH) and it limits the amount the goobermint can raise our taxes year over year. It works. And the best part is, you can take it with you if you move; inside the State, of course.

I have a small hobby farm in Michigan with a run-down, non-habitable house and 5 little acres in a small crap-town. Those taxes are $3,800 a year. It's worth about $50k. Tops. It's assessed at $52k and that's what the taxes are without the homestead exemption. No wonder Michigan is dying

You can look all over the State of Michigan and find abandoned Houses everywhere. It's actually something of a blight. Dee-Troit was giving away houses but nobody would take them.

Know why? Mostly because of Taxes. And Michigan is dying for the same reason. Some of it is because Industry is running away like scared rabbits. Know why?

Taxes.

Too bad. I like Michigan, like the people, they have a lot going for them. If it weren't for their penchant of electing idiots into Office, they'd have it going on.

oh well

 

[Jstpssng]

One thing to consider about taking SS vs tapping into other savings if you are retired; assumptions made now may not be true later, as the work force reduces. IF I could retire now the first thing I would do is sign up, leaving savings and retirement fund to continue growing.

First I have a mortgage to pay off...