Four Simple Steps to Plan for Property Taxes in Retirement
Sign up for our FREE Monthly Email Newsletter
In addition to keeping in the financial know, you may be interested in checking your credit score and report.
¹The credit scores provided under the offers described here use the Equifax Credit Score, which is a proprietary credit model developed by Equifax. The Equifax Credit Score and 3-Bureau scores are each based on the Equifax Credit Score model, but calculated using the information in your Equifax, Experian and TransUnion credit files. The Equifax Credit Score is intended for your own educational use. It is also commercially available to third parties along with numerous other credit scores and models in the marketplace. Please keep in mind third parties are likely to use a different score when evaluating your creditworthiness. Also, third parties will take into consideration items other than your credit score or information found in your credit file, such as your income.
²The Automatic Fraud Alert feature is made available to consumers by Equifax Information Services LLC and fulfilled on its behalf by Equifax Consumer Services LLC.
³Equifax Credit Report Control™ is only available while you have a current subscription to Equifax Complete Premier. Locking your credit file with Equifax Credit Report Control will prevent access to your Equifax credit file by certain third parties, such as credit grantors or other companies and agencies. Credit Report Control will not prevent access to your credit file at any other credit reporting agency, and will not prevent access to your Equifax credit file by companies like Equifax Personal Solutions which provide you with access to your credit report or credit score or monitor your credit file; Federal, state and local government agencies; companies reviewing your application for employment; companies that have a current account or relationship with you, and collection agencies acting on behalf of those whom you owe; for fraud detection and prevention purposes; and companies that wish to make pre-approved offers of credit or insurance to you. To opt out of such pre-approved offers, visit www.optoutprescreen.com/.
4We will require you to provide your payment information when you sign up and we will immediately charge your card $4.95. After that, we will charge the card $19.95 for each month you continue your subscription. You may cancel at any time; however, we do not provide partial month refunds.
Equifax® is a registered trademark and Equifax Complete™ Premier is a trademark of Equifax, Inc. © 2014, Equifax Inc., Atlanta, Georgia. All rights reserved.
There are only a few guarantees in life, and two of them are death and taxes. We can talk about death in another article; for the time being we will discuss paying taxes. When planning for retirement, it is important to have a strategy for how you are going to pay your bills—especially if you are living on a fixed income.
Most people pay their bills either weekly or monthly, so the quarterly, semi-annual, and annual bills can be the nastiest for which to plan. Among those bills are property taxes, which are usually due once a year. When that time comes, you definitely want to be prepared.
If you want to know how much your property taxes will cost for the upcoming year but you don’t have last year’s tax bill, call your local county tax assessor’s office. Once you know how much you will owe in property taxes, do the following to ensure your property taxes will fit into your retirement budget:
Step 1. Take the amount and divide it by 12.
Step 2. Open up an account at the financial institution of your choice and designate it as your property tax account.
Step 3. Each month, deposit into your property tax account the amount you came up with in step one.
Step 4. When your property tax bill arrives, tell yourself what a good job you have done as you take the money out of your account, pay your taxes, and repeat steps one through four the next year.
If you have other big bills that you pay either quarterly, semi-annually, or annually, you can use these same steps for those as well. These steps might sound a little silly, but I bet that if you follow them, your next property tax bill won’t be quite so painful. You’ll be relaxed knowing your property taxes will be taken care of when the time comes, and you won’t have the thought of coming up with a large sum of money hanging over your head.
Steve Repak, CFP®, is a professional speaker and the author of Dollars & Uncommon Sense: Basic Training for Your Money.
Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.