Daily Money - Saving Money on Housing Costs

October 12, 2021

Property values are soaring, and that’s generally good news for homeowners. But for older adults on a fixed income, it’s not always a reason to cheer. That’s because higher home prices often result in higher property taxes. While such taxes vary a lot by location, they’re expected to rise by around 6.5% on average this year. Meanwhile, Social Security checks are projected to increase by about 6% for 2022 (we’ll know the exact amount tomorrow, when the annual cost-of-living adjustment is announced). And shoppers know that the prices of everything from cars to cookies are going up, too. Fortunately, most states offer property tax breaks to qualifying seniors. These programs, which are underutilized, are definitely worth exploring if housing expenses are straining your budget. Learn more about how to rein in housing costs in today’s edition.

Best wishes,

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Timely Retirement News, Insights and Advice

Most states offer property tax breaks to qualifying seniors.

Beginning next year, anyone who sells more than $600 worth of goods through on the online auction site (or its rivals) will receive a 1099-K form.

Sixteen of high school grads earn more than many workers with bachelor's degrees.

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Retire With Money Community News

What are you up to these days?

After taking early retirement at age 59 from academia, I came back after a year and a half to be Director, Scholarly Connections with the Drexel University Libraries. During my spare time I enjoy writing medieval historical novels, collecting everything related to dragons, and writing/publishing on the life and works of J.R.R. Tolkien. I am the founding and current editor since 2013 of the Journal of Tolkien Research, an online, open access, peer-reviewed journal in this field. Along with raising a 12-year-old future astronaut and concert violinist, I am a voracious reader on everything related to medieval England/Scotland/Ireland between 400-800 AD.
 
What are your plans for retirement?

For retirement, I plan to travel to England/Scotland/Ireland (perhaps to move there permanently), and continue to write medieval historical novels.

Cool! What's your saving/ investing philosophy?

Always save first. During my life, I automatically had the full amount allowed by the government pre-tax taken out of my salary and deposited into my 401(k)/403(b); this also gave me free matching cash from my employers. I also started having a $100 EE savings bond purchased every month to assist paying for college for my older daughter, which has provided me with a conservative ladder of monthly income now for the next 15 years as they mature at 30 years each.  I also started a stock portfolio during my 40s during the 2008 economic recession that has bloomed into a nice liquid asset in case it is ever needed (bought Netflix and Facebook as IPO offerings; Apple before the last two stock splits); worth about $350k now.

I pay off my credit card each month, no matter how large.  I had a 2004 Mitsubishi Eclipse Spyder that lasted me over 16 years (before I sold it when I moved to Philly, still ran great!), and my only debt is my current mortgage.
 
I grew up in a family with little money and started saving at 15 and have over $2 million in tangible assets (not counting mortgage). I have a personal file showing when in my life I reached each $100k goal. As can be seen, the power of compound interest is HUGE!!

Retirement News From Around The Web

Here’s What to Know About 2021 Required Minimum Withdrawals From Retirement Accounts
After a hiatus last year, RMDs are back for 2021 — and market gains mean they might be bigger than you expect. CNBC

Retiring on a Shoestring: How It's Going 2 Years Later
Next Avenue checks in with a couple who moved from New York to Florida two years ago and live on less than $30,000 a year. NEXT AVENUE

Falls Are Increasing Among Older Adults 
Here are five tips for preventing them. LIVESTRONG

Covid Immunity Through Infection or Vaccination: Are They Equal?
For most of the scientific community, evidence remains inconclusive. KAISER HEALTH NEWS

Elizabeth O'Brien is deputy editor at Money. She has covered retirement and health care for nearly a decade. A Brooklyn resident and mom of two boys, she navigates the alphabet soup of Medicare and the New York City subway system with equal ease. You can email her at elizabeth.obrien@money.com and follow her on Twitter at @elizobrien.

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