We all know it is coming. We all try, as best as we can, to prepare for it. When it happens, all but a few are truly ‘comfortable’. That’s right; retirement is but a few short years away for many of us in the Miami area. Hopefully you started planning for retirement long ago. If not, don’t worry; taking positive steps now will help you later. While making those steps, knowing what pitfalls to avoid will truly make a world of difference in your golden years. Below are some of those pitfalls you should watch out for.
1. First, consider yourself lucky you live in Florida. Everyone knows many people come to Florida in order to retire, and have done so for many years. The weather, the services, and the available infrastructure for senior citizens make Florida a great place for retirement. Also, Florida offers cheap(er) tax rates than a lot of other states for retirees. If you plan to stay in Florida, you have avoided pitfall #1. If you plan on leaving, you should take the state of your future home’s tax rate into consideration. You simply may have to save a little more, or spend a little less, each month.
2. If you recently moved to Florida in order to start your retirement, but still own a home in another state, are you claiming losses, repair costs, and interest rate deductions on both homes properly? Many Americans cannot sell their old homes due to the ongoing real estate crisis. If you are one of those Americans who, for whatever reason, still own two homes, be sure you are not paying more on taxes than you should.
3. If this is your first year of retirement, and you typically do your own taxes, try paying a visit to a Miami tax preparer this year. Having your taxes filed, at least during the first year of retirement, can give you a baseline as to how to file your taxes in the future. Regardless if you take in a little side-income you must claim, or pension and Social Security earnings only, an accounting service in the Miami area can help you plan and spend accordingly.
Retiring is a scary thought for many Americans today. Some have saved and planned a little better than others. Don’t keep making the same mistakes today which will keep you from living out a comfortable retirement. Contact an accounting service in order to learn more about what you could be doing in order to secure your retirement.