Plastic houses probably owe property taxes too<\/figcaption><\/figure>\nAnd that\u2019s if property taxes were stable!\u00a0 As many homeowners know, the value of their property has decreased in the last few years.\u00a0 However, the government needs at least as much money as it did last year.\u00a0 Therefore they either increase taxes or scare the population into voting for a tax increase by saying that 911 calls will go unanswered and wild gun-toting gangs will roam the streets.\u00a0 The result is that property rates are increasing at a quicker rate than the value of homes are decreasing.\u00a0 The perverse end of this is paying more property tax dollars this year than you did last year when your house was worth $50,000 more last year.\u00a0 Thus, even though I said in the title you owed $100,000 than you think, it\u2019s actually much more than that amount because it isn’t a stable stream of payments, but almost an inflation adjusted perpetual annuity.<\/p>\n
Retirement Planning<\/h2>\n
This obviously affects how you plan for retirement too.\u00a0 Retirees need to reduce their expenses, but with property tax rates going up most years, those on a fixed retirement income continue to need to pay ever amounts of “rent” on their fully owned property.\u00a0 As such, make sure when planning for your after work years, you have a large enough pot of money to pay your properties taxes, otherwise you’ll have to pay rent a landlord again instead of the government.\u00a0 Luckily you have a good estimate of how much of an extra nest egg you’ll need by using the perpetual annuity formula above.<\/p>\n
Unfortunately I don\u2019t have an answer for you as to what to do about this problem.\u00a0 Absent a different funding model for the government, huge increases in government efficiencies or a reduction in pension liabilities, you\u2019ll have to keep paying your taxes, otherwise the King\u2019s men will come for you.<\/p>\n
Readers, what are your thoughts on property taxes?\u00a0 Do you feel that other taxes are better or more fair to society?\u00a0 Other taxing rants?\u00a0 Let us know below.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"You are a source of endless payments to the government, exactly like a perpetual annuity. Take care to plan for property taxes in retirement.<\/p>\n","protected":false},"author":1,"featured_media":270,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[686],"tags":[56,54,55],"acf":[],"_links":{"self":[{"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/posts\/266"}],"collection":[{"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/comments?post=266"}],"version-history":[{"count":3,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/posts\/266\/revisions"}],"predecessor-version":[{"id":3704,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/posts\/266\/revisions\/3704"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/media\/270"}],"wp:attachment":[{"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/media?parent=266"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/categories?post=266"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cultofmoney.com\/wp-json\/wp\/v2\/tags?post=266"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}