Quote:
Originally Posted by mak44070
Boomer,
You are correct - Florida has no state income tax at this time. That's one of the reasons that we are in Florida for over six months and in Ohio the rest of the time. It'll be nice not to write a check to the Ohio Treasury next April!
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Thanks, mak, I was not sure.
I think there are some states that do not tax unearned income, but Ohio sure wants a piece of everything. I know it's not as bad as some other states, but it's bad enough. I am glad to hear that Florida still has no state income tax at all. Congratulations on next April's raise.
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While I am on the subject of taxes, I might as well throw in another of my thoughts. I think that if a pension and/or SS or other sources of income are in place, staying out of tax-deferred accounts, for a while, if possible, can work really well in some circumstances. Spending the taxable income first, and trying to do that as long as it makes sense, can give the opportunity for transition into a retirement budget by lessening the tax hit for a while.
Remember that old "3-legged stool" that retirement planning used to talk about. (Pension/SS/Investments) Well, that stool now, to be ideal, might need at least 4 legs, maybe 5. The 4th leg is health care coverage. A 5th leg would be to enter retirement without debt or with only very carefully considered debt, as with a mortgage that can be covered with cash flow that is known and certain.
Uh oh. I think I am off and running here.....just some thoughts.
But before I go, I want to say that I follow Ohiogirl's posts. I have a feeling that girl knows her numbers. And there are lots of other posters here, too, who are sharing their good insight. Thank you.
Good luck to all of you as you try to figure out what is right for you as an individual making those retirement plans and choices.
Boomer