tvguy
Question anything the facts don't support.
- Joined
- Dec 15, 2003
I can see where the property taxes could be an issue. That was the entire driving factor behind Proposition 13 here in California in 1978. Seniors in their homes for 40 years or more.....which was not unusual.....were actually being asked to pay more per year in property taxes that they had paid for their houses.I've read through some of this interesting thread and have a few thoughts.
We are in our 70's and started investing later in life.
You need to know that what you need now verses what you will need in later years will vary. What we though was enough for retirement in today's world is not enough. We've had to readjust things and are ok now. If you are going to put x amount in for retirement with growth/income in mind at say 40's. What you will get in your 70's might not be enough for that time's requirements. I hope you can make sense of that For example: My Mom who is 93 worked as a medical secretary all her life and made around $3.50 to 4.00 an hour. When social security got figured when it was time, she doesn't get much at all. Back then, that was the normal wage you made. Over 7 dollars was high wages. So it's all relative.
If you are working, the Roth IRA is your friend. You can remove money, any time and any amount, without penalty!
We have everything paid off, car, house, etc. The property taxes where we are at are huge, but there is nothing we can do about that.
Our kids are saving for their kids college educations, and trying to save for their retirement while both are working full time. (though with reduced hours due to covid What with everyday expenses I don't know how they can do it.
But lifestyle is huge. I managed my mom's finances for the last year of her life, she passed away in 2013. She had a house that had been paid for for 50+ years. Her property taxes were $925 a year. By comparison, I sold that house at market value and the new owners property taxes were $6,605 per year. Her car was 10 years old and she paid cash for it (it only had 10,000 miles on it when she passed).
Her total monthly expenses were $650. Her social security was $1,250 a month. More than enough to cover all expenses. She had a pension of $400 and an annuity that paid her $170 a month. That was her take vacations money. Australia, New Zealand, Europe, South America.....and more cruises than I can count. But she and my dad were very tight with money. We had plenty to eat, but growing up in the 1960's pizza was the Chef Boy Ardee boxed kit for less than $1 (a little more with all the stuff mom added to it). Pizza parlor pizza was just to expensive. Dinner out was Sambos.......or if a special dinner, Mr. Steak or Happy Steak.
But it paid off, because when my dad got sick and passed away when I was 9, we could get by on just my mom's paycheck. But, like I said, lifestyle is huge.