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Banks in my town won't give a loan on a condo unless you have 50% of the purchase price upfront, solely because so many people don't pay their condo fees. Those dues are rough, but as long as everyone is paying their dues, the condo should stay in good shape with repairs and upgrades.I just wish my condo dues were $150. In Jan. my dues when to $560 plus a $1,000 assessment. The cost of home maintenance has really gone up since Covid, mostly due to a shortage of skilled labor. I'm looking at a 75 foot ditch in our driveway due to some new plumbing pipes.
Annuities have a place in retirement. It just depends on your needs. I had sufficient funds that I never needed my tax sheltered retirement plans. I just reinvested my required distributions till I was 80.What I am doing is buying an immediate annuity with a portion of my IRA, just enough so that the monthly payments from that combined with SS will cover my basic expenses.
The amount I will need to buy the annuity is about 15% of my IRA, so I still have the bulk of it to invest and grow - but with the security of knowing I have guaranteed income to cover the basics.
That's interesting. I think all banks around my area require 20%. I have owned 3 condos because I like condo life. However, they are not as good an investment as single family homes.Banks in my town won't give a loan on a condo unless you have 50% of the purchase price upfront, solely because so many people don't pay their condo fees. Those dues are rough, but as long as everyone is paying their dues, the condo should stay in good shape with repairs and upgrades.
401k is a lousy excuse for the government not being able to take care of you when you get older. A lot of working adults like myself are too poor and make to little to even think about having a 401k. All my employers never offered 401k's that I have worked for. my wife's current employer doesn't offer one. These are things offered to those who are lucky enough to have good paying jobs, your poor working adults barely making it always get screwed over. Instead of 401k's there needs to be in place additional money the government gives you when you reach retirement age besides social security and medicare. A universal basic income would be a nice start.The cancer will always go to the nearest blood supply until it kills the host entirely.
It is only a matter of time.
401k is a lousy excuse for the government not being able to take care of you when you get older. A lot of working adults like myself are too poor and make to little to even think about having a 401k. All my employers never offered 401k's that I have worked for. my wife's current employer doesn't offer one. These are things offered to those who are lucky enough to have good paying jobs, your poor working adults barely making it always get screwed over. Instead of 401k's there needs to be in place additional money the government gives you when you reach retirement age besides social security and medicare. A universal basic income would be a nice start.
I just wish my condo dues were $150. In Jan. my dues when to $560 plus a $1,000 assessment. The cost of home maintenance has really gone up since Covid, mostly due to a shortage of skilled labor. I'm looking at a 75 foot ditch in our driveway due to some new plumbing pipes. We've been waiting nearly two months to get someone to fix the concrete.
Over the last 20 years the S&P 500 has delivered an average yearly return of 7.7%, 9.8% with dividends compounded. If you stay in the market and dollar cost averaging new investments , disregarding the the ups and down, you can make a lot of money in the market.
The poor working adults get a bigger percentage of their income back in Social Security.401k is a lousy excuse for the government not being able to take care of you when you get older. A lot of working adults like myself are too poor and make to little to even think about having a 401k. All my employers never offered 401k's that I have worked for. my wife's current employer doesn't offer one. These are things offered to those who are lucky enough to have good paying jobs, your poor working adults barely making it always get screwed over. Instead of 401k's there needs to be in place additional money the government gives you when you reach retirement age besides social security and medicare. A universal basic income would be a nice start.
Again, it's easy to point to the $185 Billion in theoretically lost revenue, but the counter factual is more difficult.
401(k)s Will Be Gone Within a Decade
The intellectual case for getting rid of tax-advantaged retirement plans is strong, and the political case is catching up.www.wealthmanagement.com
Had this link in a retirement related email I get weekly. I found it pretty interesting ..
If you are among the 56% of US workers with a retirement plan, I have some bad news for you: Your 401(k) will be gone in 10 years, tops. Not the money, thank goodness — Americans have trillions of dollars in these accounts, and there is an entire industry built around them — but the plans themselves.
I have been seeing more and more about this lately...and it all comes down to the Govt and money....
There has been a brewing intellectual movement to get rid of the 401(k) for several years, with scholars on both the right and left questioning its value. And as the federal government gets increasingly desperate for new sources of revenue, the tax treatment of 401(k)s is a likely target. There are good policy reasons to end it, but the question remains: Will Americans still save for retirement?
The 401(k) is not tax-free but what is known as tax-advantaged. Contributions made while working are not taxed, but participants pay taxes when they withdraw the money during retirement. Whether there is a big tax savings depends on the tax rate in retirement — which is usually lower because retirees tend to have lower earnings. Savers also avoid capital gains taxes on returns.
All of this cost the government an estimated $185 billion in 2019, or 0.9% of GDP. That’s not nothing. And in theory it’s justifiable because it creates a powerful incentive to save for retirement. More retirement savings have a triple benefit: for the economy overall, since they fuel growth; for the government, since retirees with income are less likely to be a burden on the state; and, of course, for workers who might not save enough today and regret it later.
Then again, maybe not. The first rumblings that the benefits of the tax breaks may be overstated came in a 2014 study of Danish savers. Without tax-advantaged accounts, it found, people just put their money in another kind of account. People did save more in retirement accounts, but that’s mostly because of automatic paycheck deduction. Subsequent research in other countries found similar results. Not only did the tax incentive fail to encourage more saving; the biggest beneficiaries tended to be the wealthy.
One alternative...
Enter the employer-sponsored liquid account. Like a retirement account, it is funded by payroll deductions, but unlike a 401(k), it allows employees to withdraw money without a penalty when needed. As these accounts grow in popularity, they may displace the 401(k). More liquid accounts, similar to a Roth IRA, have been become popular in Canada, and Canadians are saving more in them than in the tax-advantaged retirement accounts.
Good to hold off on buying your condo. The real estate market is about to crash.I had this rollover 401K I invested years ago. I was recently reminded that half of it is an annuity.
Based on current average payouts, a 60-year-old male who purchases a $100,000 immediate annuity with a lifetime payout can expect to receive approximately $627 per month.
Kind of cool I'll be getting $600 bucks a month for life on that one thing. So even with just social security and that, even if Republican cut my social security 25%, will be $2100 a month. I can live on that now. Barely but I can.
Then I should have another $900K at least. Let's say I make an extra $27,000 on that a year at 3%. That's $50K to live on without touching the $900K.
I REALLY don't want to spend the money I save. I want to just live off the interest and social security.
BUT, I will spend $200K on a condo in Florida eventually. Fuck winters in Michigan. My family tells me I should get one now because now they are only $100K. But then I will have $6000 a year in bills for the next 10 years. Fuck that. I need to save that money not buy a condo.
I'm lucky. My brother has a hunting property up north, a condo in Florida and a place in Greece. So free room and board wherever I go. LOL
Again, it's easy to point to the $185 Billion in theoretically lost revenue, but the counter factual is more difficult.
First, there would be no lost revenue gained by getting rid of 401k. That $185 Billion in "lost tax revenue" only exists if everyone that is currently saving in their 401k, is still saving in investments without the 401k.
The answer is they wouldn't. So if you do away with 401ks, there would be no investing to tax that $185 Billion from.
So the government is not losing a penny in tax revenue by allowing the 401k.
Further, without people having a 401k to help them in retirement, millions on millions of elderly people would be more dependent on government programs than ever before, easily costing for more than the $185 Billion of revenue that will never be collected in taxes.
As for comparing the US to Danish people, and saying the tax benefits the wealthy more.... First, we're not Danish. Danes have their own culture. I support teaching people in schools how to save and invest, and instilling that into kids. But we're not doing that. Danes are.
If you try and take away 401k, and magically believe that our Americans that have never been taught to save and invest, will magically turn into Danes, and start saving like a Dane, you are wrong. I can't count the number of European style programs we have tried here, that never had positive effects, because people think that it's the policy that makes the culture, when it's the culture that makes the policy.
And lastly, I don't care if wealthy benefit more. Who cares? Why should I penalize myself with higher taxes on my investments, just because some rich guy is doing the same as me, with another zero on the end? That's lame and stupid. We should not chop off our own legs (economically speaking), because rich benefit from legs more than poor people. That is greed and envy based logic, and I do not subscribe to it.
Stop whining about what rich people do, and start doing what they do.
Sounds like a wise move. Condos in general are not great investments because unlike houses there is no real investment in the land. It takes you longer to recover your initial investment because condos don't appreciate as fast as houses. I would invest in stocks bonds rather than a Condo.I think my dues are $200 a month. Not sure because I'm on auto pay. I said my dues are going up an extra $150 for awhile because of the new wall. So it's an extra $150 a month not just $150.
Anyways, this has made me decide I am NOT going to buy 20 acres to hunt and I'm NOT going to buy a $100K condo in Fort Lauderdale. Fuck that. I have to save for retirement and I have enough. I have a pontoon. My brother has a hunting property and place in Florida. I think he wants me to have my own things but he's got to realize I'm not a millionaire. I need to save so I can stop working when I'm 62 or 65.
I was watching Court TV. This guy stole hundreds of thousands from the elderly. The kids made victim impact statements before sentencing. I was thinking about the kids who lost that inheritance money. OMG I'd be so pissed. I'm not thinking about it from the perspective of the old person. I'm thinking about it from their kids. Their kids were probably counting on that inheritance money for retirement. I'd want to kill that guy. If he ever got out of jail I'd be waiting.
There's another reason why 401Ks and other tax sheltered retirement plans are a great way to plan for retirement. The money going into the 401k that you would have paid out in taxes will be earning money for you via interest and dividends compounding year after year. In effect you're making money off the governments money. Even thou you will pay taxes on the your distributions in retirement, you still come out way ahead because you have been earning money on the government's money.Not trying to be critical, but I think you may have missed (pun intended) where the "missed tax happen".
The idea behind 401K's is that deposits reduce Gross Income now and lower the amount of tax owed now during what for many are higher earning years. Then in retirement when you take money out of the 401K (either directly or as an annuity) the income taken is then taxed at the rate at that time.
For most workers income during working years will be higher than income in retirement (ya there are exceptions, we are talking on average here).
So say someone is earning $250,000 per year, they deposit $30,000 in their 401K. That means their taxable income is reduced so the government doesn't get their 35% tax rate on that $30,000.
Now in retirement a person has income of say $150,000 (SS + 401K withdrawal + whatever). The 401K withdrawal is then taxed at 24%.
That's decrease of 35% in the short term and 11% in tax revenue in the long term.
WW
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Good to hold off on buying your condo. The real estate market is about to crash.
I hear conflicting advice on the real estate market.
But yes, I won't buy property unless there's a market crash.
In Florida, the condo I would buy, is a co op. Monthly dues are reasonable. But who knows if one day they decide the dues need to go up. I don't believe each owner has to have homeowners insurance because it's a coop. I could be wrong about that. But that's a big problem in Florida. Home owners insurance.
Hearsay evidence isn't allowed in courts for a reason. And this tall tale is why.You can believe it or not, I'm just repeating what I was told and he had no reason to lie to me.
I think a lot of that had to do with unions building the Middle Class. Ancient history.
You may not understand what hearsay is.
Example #1 Donna: "Jane told me that Mary said she forged her bosses signature on a check."
Example #2 Margaret: "I was in a meeting with Marry and watched her forge her bosses signature on a check."
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Example #1 would be hearsay, and unless if qualifies under certain exceptions, would not be allowed. Example #2 is not hearsay, it's direct evidence.
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If the evidence is presented about direct conversations, phone calls, meetings, and includes supporting evidence such as phone records, texts, email, contemporaneous notes, canceled checks, business ledgers, invoices, etc. - that isn't hearsay.
WW
Most condos require homeowners insurance because if if you do damage to another unit or common elements such as hot water heater fails, tub overflows, kitchen fire or whatever the other owners and the Board will expect you or your insurance to pay for the damages.I hear conflicting advice on the real estate market.
But yes, I won't buy property unless there's a market crash.
In Florida, the condo I would buy, is a co op. Monthly dues are reasonable. But who knows if one day they decide the dues need to go up. I don't believe each owner has to have homeowners insurance because it's a coop. I could be wrong about that. But that's a big problem in Florida. Home owners insurance.
