There is an inherently challenging aspect to retirement planning. When you retire you are putting your working years behind you, and if you are like most people you will be living on an income that is more or less fixed. However, the expenses that you are faced with may not be fixed.
With the above in mind you should carefully consider your property tax responsibility when you are budgeting for the future. Depending on how you set it up when you are paying your mortgage you may receive a monthly bill that includes incremental contributions into escrow. This money is used to pay property taxes and insurance at the end of the year.
If you are planning for retirement you may have every intention of paying off your mortgage before you do in fact step away from your career. As a result that tax bill is going to be presented directly to you and it will be due in one lump sum.
As certain events take place throughout your retirement years this bill can become quite stifling. In fact, the imposition of tax liens is something that is very commonly done because so many people do indeed fall behind on their property taxes. According to the National Tax Lien Association delinquencies resulting in between $7 billion and $10 billion in tax liens accrue annually.
This is one of the many things to take into consideration when you are making long-term financial projections. Be realistic when you are determining your capabilities and consider downsizing to reduce your tax bill if you have concerns.
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