Living in the state of New Jersey has many advantages as we all know. However, we are subject to some rather hefty taxation and this is something to keep in mind when you are engaged in your retirement planning efforts.
If you are living on a fixed income during retirement it can be challenging to be able to keep up with property tax increases. So when you are making your calculations you should definitely keep the possibility of ever rising taxes in mind.
There can be a tax lien placed on your property if you were to become delinquent. This is a serious matter and investors are always ready to pounce on the opportunity to purchase these liens.
Should you fall behind you may be afforded the opportunity to make payments that you can afford, but this is going to be a drain on your discretionary income during retirement. In addition to this interest can be applied, and the rates are often quite significant.
Unless you are certain that you will have no problem paying your taxes throughout the entirety of your life you may want to consider the possibility of moving into a smaller and less expensive home or condominium as retirement starts to beckon in earnest.
If you are unsure about how to go about budgeting for the future, you’re not alone. The intelligent first step would be to discuss your unique situation with an experienced Somerset County financial planning lawyer who has a background guiding local residents toward a comfortable retirement.
Alan Augulis, Estate Planning Attorney
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