Investments strategy with new administration?

[ultrarunner]

I moved 85% of my roth to S&P 500, the 15% to tech. This is the last thing I plan to use to withdraw $$ from. Using up my IRA's first, Land if I need it but hoping to leave that to family.

Speaking of land... I got a tax reassessment notice yesterday. Property I bought in 2012 has increased in value over double 2.2 to be exact. The notice stated don't contest it just because the percentages have increased or you can't afford to pay it. Sheesh...

This is a timber tract so I don't have to pay out of pocket the full tax amount. I feel for the other folks who don't have it defined as farm status. I am going to contest it though... If you don't contest it now there is no way to contest it later.

Property Taxes remain a motivator and a fear of mine…

When single family homes from 30, 40 or 50+ years old command 20k property taxes it’s not sustainable in retirement for many…

I have cases where the annual property tax is multiples of what the home sold for new…

 

[ultrarunner]

I contested my last house and won the first time, the next year the town put out a notice.

If the difference of contested is not at least 150K over comparables it will be rejected.

So they pretty much blocked any way of contesting any increase.

that's 150 thousand over other similar houses valuation.
So as long as they raise everyone the same, no a chance in h3ll you are going to even be heard, no less win.

We moved.

So many contest here that county imposed a filing fee to contest and county has 2 years to review and if owner prevails it could be closer to 3 years to get refund…

Spending one’s life in a perpetual state of appeals is not appealing in the least too me.

Property insurance cost/availability is responsible for increasing the ranks of self insured… especially among retired with paid off homes.

I know many many with decades of coverage non renewed and those able to obtain replacement find it comes at a much high price that can be multiples of previous premium and for less coverage…

I’m old because I remember getting insurance as almost an after thought and now it’s a major factor in cancelled Escrows…

 

[gsganzer]

Our property tax in TX is getting out of control. I can't complain too bad, because we don't have a state income tax. But I've always felt that we'd be better off with the emphasis being on income and consumption taxes, with an extremely minor property tax contribution.

For me, I have an issue with property tax from the standpoint of a person's financial security. If a person loses their job, becomes disabled, or the economy takes a major downturn, naturally your income {and income tax) would likely decrease and you can most always find ways to trim daily expenses such as food, clothing, utilities and other "consumption". So, in a sense, your taxes are self-regulating, based on financial means if taxes are skewed towards income and consumption.

Property tax isn't self-regulating, which is why the State and Local governments like it. In a time of financial distress, your home is likely to become your biggest liability and drain on your finances, which seems bass-ackwards.

 

[ultrarunner]

Our property tax in TX is getting out of control. I can't complain too bad, because we don't have a state income tax. But I've always felt that we'd be better off with the emphasis being on income and consumption taxes, with an extremely minor property tax contribution.

For me, I have an issue with property tax from the standpoint of a person's financial security. If a person loses their job, becomes disabled, or the economy takes a major downturn, naturally your income {and income tax) would likely decrease and you can most always find ways to trim daily expenses such as food, clothing, utilities and other "consumption". So, in a sense, your taxes are self-regulating, based on financial means if taxes are skewed towards income and consumption.

Property tax isn't self-regulating, which is why the State and Local governments like it. In a time of financial distress, your home is likely to become your biggest liability and drain on your finances, which seems bass-ackwards.

What you describe is more of the European system I encountered.

High Income and VAT sales tax and very low property tax.

A CPA there said it would be cruel for a family’s to lose their home because the family couldn’t pay the property tax… some of these homes in the same family for hundreds of years.

People have to live somewhere and homeowners are not burdens to the state as the homeless are.

I can appreciate the logic as you may pay off your home but property tax is forever.

 

[WM75Guy]

Our property tax in TX is getting out of control. I can't complain too bad, because we don't have a state income tax. But I've always felt that we'd be better off with the emphasis being on income and consumption taxes, with an extremely minor property tax contribution.

For me, I have an issue with property tax from the standpoint of a person's financial security. If a person loses their job, becomes disabled, or the economy takes a major downturn, naturally your income {and income tax) would likely decrease and you can most always find ways to trim daily expenses such as food, clothing, utilities and other "consumption". So, in a sense, your taxes are self-regulating, based on financial means if taxes are skewed towards income and consumption.

Property tax isn't self-regulating, which is why the State and Local governments like it. In a time of financial distress, your home is likely to become your biggest liability and drain on your finances, which seems bass-ackwards.

While I am all for lowering property taxes, swapping it for an income tax is not the way to go. We moved to Missouri for a while back in 2002. Everyone talked about the lower property tax rates. Except they forgot to mention they taxed you on your real property and personal property as well, such as vehicles, trailers, horses, cows, etc., which made it a wash. And a 6% flat state income tax, plus a 1% city income tax if you lived or worked in Kansas City or Saint Lewis. Vehicle tags were $200 for the pickup which pulled the horse trailer. Trailer tags were cheap at $50 for a lifetime tag for a GN trailer.

 

[California]

I have a S&P 500 Index Fund. Over the years It has done half as well as my Select Semiconductor Fund.

I could argue both sides of that.

Choosing semiconductors must have been based on your experience in industry, ie specialized attention to a specific field where you knew more than the general public.

But there are also people who bet on their own industry knowledge, then are blindsided when their employer makes some strategic error, or simply gets outrun, and poof what they know is no longer relevant. This recent Chinese AI development that exceeds what existing developers had accomplished, by gathering and absorbing those competitor's data, is a current example.

I agree that someone with specialized industry knowledge can do a lot better than average. But simply betting on the most powerful companies seems to be the best alternative for those of us lacking such niche knowledge.

And as I noted in a previous post starting one's own business can be a lot more profitable than passive investing. There's no one best answer.

 

[RSKY]

I could argue both sides of that.

Choosing semiconductors must have been based on your experience in industry, ie specialized attention to a specific field where you knew more than the general public.

No knowledge of the industry other than what I have read online. Investing strictly on the history of the funds. Look at the chart I posted on post #224 and slide it over to the past 10 years. Semiconductor fund has made 25.99%, S&P 500 fund has paid 13.09%. Close enough to double for me.

RSKY

 

[two_bit_score]

While I am all for lowering property taxes, swapping it for an income tax is not the way to go.

"Never let the camel get his nose in the tent". That is why Texas passed a constitutional amendment a few years ago to ban an income tax. Property taxes are ALL local taxes authorized by the LOCAL taxing entities. School property taxes make up about 60-70% of most property tax bills. In theory citizens can limit the local property taxes because they directly elect those who levy the taxes; school boards, city council members, County commissioners, etc. But our LOCAL officials continiously raise our property taxes. People MUST start electing local people who will have enough backbone to say NO to tax increases.

 

[ultrarunner]

Yes… over half property tax I pay is for public schools… and yet schools here are closing with declining enrollment and many with school age children opt for private.

 

[two_bit_score]

Our property tax in TX is getting out of control.

Yes it is. The Texas Legislature just convened for the 89th Session. Please contact your state rep and state senator to tell them you want to eliminate local property taxes. Several bills are filed which will put Texas on the path to do so.

Find out who represents you at this link:

Who Represents Me?

Who Represents Me provides information about current districts and members of the Texas Senate, Texas House of Representatives, the Texas delegation to the U.S. Senate and House of Representatives, and the State Board of Education.

wrm.capitol.texas.gov