Vehicle for mountains

[Bob Miller]

Retirement income from something like a 401k, if not taxed when put in, is taxed when taken out so it's usually a wash. If it was taxed going in, only the gain is taxed. I think that most states do it this way, otherwise you would be taxing the same income twice, not that it doesn't happen elsewhere.

[cpaharley2008]

Here in Pennsylvania you pay the tax each year on your gross salary before any reductions for employer retirement plans. Any subsequent withdrawal distributions including gains are tax free.Thus if you move to a state that taxes only the distribution then you will be taxed twice. Something to consider in moving.

[steve dunham]

[QUOTE=Mike Magee;504518]Wayne, that's ok. Take your time, you have plenty of it yet before you are ready to move someplace.

Montana gets a heck of a lot of snow. I know of one couple who moved there from Oklahoma... bought a cabin in the back woods and thought they had it made. They knew next to nothing about the Montana winters and died that year, snowed in for months.

We were hunting several years ago on a ranch in Montana . One afternoon the owner ,his wife and their son came driving up with 2 pickup trucks and a trailer full of groceries and supplies . They remarked about being trapped in the winter by snow and not being able to get to town for 6 weeks one winter . I guess it is a lesson you only get to learn once.

[Bob Miller]

Originally Posted by cpaharley2008

Here in Pennsylvania you pay the tax each year on your gross salary before any reductions for employer retirement plans. Any subsequent withdrawal distributions including gains are tax free.Thus if you move to a state that taxes only the distribution then you will be taxed twice. Something to consider in moving.

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I don't think that is correct, at least in Ca. That is called pre-taxed income and is usually exempt.

Bottom line, unless someone has very high retirement income, in CA, state income taxes will be minimal, certainly not 10% as stated earlier and will reflect actual taxable income, not all "Retirement Income".

But as this is really only of limited interest, and the digression was only made to correct an incorrect statement about CA taxes, maybe we can return to regular programming.

[Badger]

Originally Posted by steve dunham

The only problem with moving to the UP of Michigan is having to learn to speak another language "YOOPER"

It's not that hard to learn. If you are passingly fluent in Canadian that will get you through most situations in the U.P.


Not sure that was "regular programming" but better than tax talk.

Wayne I do hope you stay in touch here and let us know what you decide. I am in a very similar spot to you - Retire in 5 years, not going to have a huge budget, love mountains etc. Feel free to send me a PM and I can share my current plans if you are more comfortable doing that.

[steve dunham]

Originally Posted by Badger

It's not that hard to learn. If you are passingly fluent in Canadian that will get you through most situations in the U.P.


Not sure that was "regular programming" but better than tax talk.

Wayne I do hope you stay in touch here and let us know what you decide. I am in a very similar spot to you - Retire in 5 years, not going to have a huge budget, love mountains etc. Feel free to send me a PM and I can share my current plans if you are more comfortable doing that.

I have learned to understand and speak Manitoban but I am lost when it comes to Ontario . Yoopers have a strange way of conjugating their verbs and it takes a while to catch on . I have the same problem when we travel to Green Bay

[honda03842]

We've been at this for 14 years. If I were picking a state to live in it would be North Carolina or Oregon. Both are states with relatively mild climates, certainly not the only ones but both reasonable choices.

The RV life style can be an inexpensive way to live though it definitely depends on your camping style. I would not begin by purchasing an expensive tow vehicle or a new trailer if I were on a tight budget. We successfully towed with a small vehicle all over North America in used Scamp 16, a trailer adequate for two happy campers.

If a tow vehicle that can cruise up mountains at 65 mph is critical to you I suspect, though not always, low cost camping may not be for you. If you are tight for funds definitely consider a small used trailer, with a little work you can make it your own and learn about how trailers work.

As to the Phillipines or El Salvador, I know a number of people who wanted to escape the USA, most are back. I certainly would not leave NA so I could have a maid.

A good part of loving inexpensively is choice, it does not begin with loans, big diesel trucks or big trailers.

[War Eagle]

Originally Posted by Bob Miller

That comment about the Golden State hitting "retirement income" for a 10% income tax was very surprising to me. I have been retired for 8 years and the only state income tax I have paid is a few piddly amounts on my total income, certainly never as much as even 1% to the state. Last year a I paid more to the state for sales tax for on-line purchases' than for income tax.

BTW: The Kiplingers link referred to has several incorrect/misleading statements about CA taxes, as is the above claim of a 10% tax on retirement income.

Bob, My brother worked in the aerospace industry in California for nearly 40 years. I simply shared what he told me regarding the tax rate he was facing if he drew his retirement in California, and I have no reason to doubt him. If you found information that you believe is misleading and/or incorrect on Kiplingers website, I'm sure they would appreciate you letting them know, along with references to the accurate information, so they can corrected their website.

[honda03842]

Wayne,

Choosing to move is a big decision, and a bigger decision when you're older. There are all kinds of considerations.

As to taxes, it's always possible to structure your retirement income so state taxes are minimum. For example though NH has no state income tax or state sales tax (no sales tax is a real savings, certainly when buying a tow vehicle), NH does have a 10% tax on interest.

States do have other costs related to local conditions, both real and political. For example CA has high utility costs, electricity, water and fuel costs, some among the highest in the nation.

For the last decade California has is experienced a net migration. It is true that CA has a marvelous and varied climate. One must ask why the exodus.

As to climate, we are all over the country and experience various local climate, we rather quickly adapt to the local conditions, people are very adaptable. In May we'll be heading to Newfoundland, people always say won't it be cold there in May. Certainly we won't be wearing shorts but we also won't be wearing winter coats. Typical May highs are in the low to mid 50's, comfortable for our activities.

One decided advantage of RV living is if you don't like where you are you can quickly go some where else, particularly if you're an RVer. As well an RVer doesn't carry some of the impediments to moving on, often no house to sell. You can chase the climate that mist fits your style.

It seems that cost is a consideration for you. It is rather easy to minimize RVing costs via trailer choice, tow vehicle cost and camping costs. Many on this site have done this. Money spent and on 'road fun' are not directly related. You can spend a relatively little and still have a lot of fun.

[Bob Miller]

Okay Dokey, I guess peeps need to know:
The California income tax rate of 10.4% kicks in for taxable income between about $250,000 & $300,000. "Taxable Income" being the operative phrase. A more typical rate is less than 3% and most retirees I know, including moi, are in the 0-1% brackets as SS income is not taxed and there are heavy standard deductions. Here is a reference: State taxes: California


Kiplinger's publications have a well known slant in a particular direction. Their comment that CA property taxes will go UP 2% a year just isn't true and, after the most recent R.E. bubble many, including my own, have gone down. AND, my property taxes are based on what I bought my house for 14 years ago, not todays prices. As a result, many retirees enjoy lower property tax rates. Kiplingers also seems to think that there is something wrong with property tax appraisals being done at actual value, I can't figure out why that is a problem when it applies to everyone. They also neglected to mention the positive side of the property tax coin for retirees following Prop-13's passage many years ago.

That more people are moving out of the Golden State than in is hardly an issue as our population still continues to grow. For some it is certainly more of a case that they "have" to move, rather than they "want" to move. Yes, it is expensive to live here, but I have also tried living in other states, on both coasts, and came back here many years ago.

It has cooled to the mid 80's today, I just can't decide if I want to do gardening, go to the beach or go snowboarding. But we are taking the Hunter out touring for the last week in Feburary. So many difficult choices.... it's the hardest part of life in California... LOLOLOL

[Jon Vermilye]

You have to look as the specific tax code when determining whether a state is favorable for tax purposes. For example, NY is considered one of the "high" tax states, but in my case I retired from SUNY (the state university system). All SUNY income, including 403b, 401, SS, etc, is not taxable. While property taxes are high, I get a reduction for being over 65, and another one for being a Vietnam combat veteran. All in all, I'd pay more in many other states. Living on the shores of Lake Ontario is another, non taxable benefit of upstate NY (although right now at -1°F, -10°F wind chill & snow so high along the driveway that I have to use the snowblower because I can't shovel it over the banks, I'm not sure that is a year round advantage!)

[steve dunham]

We have five children and 10 grandchildren with more on the way, and all of them still live in our hometown. The idea of moving away from our family to save a few tax dollars does not compute in my book .

[Mike Magee]

Based on the OP's self description as a low paid public servant, I suspect that taxation of retirement income is the least of his worries.

[MC1]

Originally Posted by Del Gue

Moderator's note: This thread has been split from the RAV4 problems, need new TV thread.

Maybe we could split it just one more time. All this talk about taxes is giving me "TAX PAIN", and you know where that is!!!

[Del Gue]

I'm driving a 14 year old truck that already has major problems, and more probably aren't too far over the horizon. I think I've earned the right to a new vehicle.

I'm camping in a Mountain Hardware Trango Assault. I sleep on a Therma Rest pad in a North Face Cat's Meow bag. Tent, pad, and bag are at least 10 years old. If there's anybody on here camping at lower cost than that, feel free to tell me.

I expected disparity of opinion on tow vehicles, and clearly found it. Stories of towing with Honda Fit's, stories of towing with new Jeeps that didn't perform very well, others urging to get a full-size truck that would handle any eventuality.

I work for a living. I'm not rich. Neither am I living hand to mouth. I can afford a new vehicle. I can afford a new trailer. I cannot afford to buy both at once. I don't intend to take on ridiculous debt like some do.

Nor do I intend to 'stunt tow'. I do not intend to buy the smallest vehicle possible that will maybe sometimes probably possibly theoretically tow something under optimum ideal perfect conditions with a hope and a prayer. I intend to camp and fish and hunt and may get into places and conditions where a stunt tow vehicle ain't gonna cut it. I intend to get a vehicle that will do what I need it to do, what I want it to do, all day every day, under less than perfect conditions.

Ref trailers, I may well see what's available in my area in the line of used trailers to get an early start on things. Or I may snag an A-frame to use until I retire. If that's a sin on this board, then so be it. I don't know, now, what I will find until I find it.

I intend to live in a state that's friendly to the things I consider important. There are some states that I would never, ever, live in. I will not name them because I do not wish to hurt the feelings of those who live there, whatever their reason.

There are no grandkids, there are no kids...there is me, and there is my dog. That's it. If other constraint(s) were to appear, then I would have to take them into consideration, but as of right now, there aren't any.

I do not intend to retire and drive all over the nation with a trailer like some do. I can understand why they would want mpg over everything.

Not sure where I'll end up. Vehicle will be purchased this year, as the money is starting to line up for a down payment. Still researching vehicles.

I don't expect everybody, or anybody, to agree with my choices. I came here for information, not affirmation.

I thank you all for your input. I read and consider every word of every reply, and every idea behind them. In the end, I'm an old dog, and I have my own ways, my own beliefs, and my own preferences. I answer only to God and myself...ok, sometimes to my dog, too.

Whatever I do, it will be right for me, and that is all that matters.

[MC1]

Wayne, a very gracious and thought out reply. Much appreciated.

Many folks pop into this forum and leave just as fast. You took the time to pass along your feelings as a result of your participation here.

Best of luck with your continued TV/RV search.

Please drop by when you come to terms with your decision. Luv to here what you end up with.

[Carol H]

Originally Posted by Del Gue

I'm camping in a Mountain Hardware Trango Assault. I sleep on a Therma Rest pad in a North Face Cat's Meow bag. Tent, pad, and bag are at least 10 years old. If there's anybody on here camping at lower cost than that, feel free to tell me.

Actually there are number of us here who still do sleep on thermal rests and use tents even though we also have a trailer. Some of us use the trailers to get us to an an access point to areas where you can't drive to. We hike, kayak or canoe to the REAL camping spots! ;-) Then we return days later to the luxury of the trailer and a hot shower

[Del Gue]

Originally Posted by Carol H

Actually there are number of us here who still do sleep on thermal rests and use tents even though we also have a trailer. Some of us use the trailers to get us to an an access point to areas where you can't drive to. We hike, kayak or canoe to the REAL camping spots! ;-) Then we return days later to the luxury of the trailer and a hot shower

Well done! I only get the luxury the day I arrive in Great Falls,sleeping at the Holiday Inn the first night, and again at the end of the trip the night before I fly out. On my first vacation out West in 1998 when I got to Jenny Lake in the Tetons I lucked out and got campsite #2. Step out in the morning, look right, and the Tetons rose majestically, right in front of me, towering over me! It was a grand campsite! Being that close to them, seeing them like that, made my heart race!

[Steve Outlaw]

Originally Posted by Del Gue

Hey Steve!

I just noticed! Is Reacher named after Jack?

That he is. He's a 93 pound red Doberman, just under two years.

[Del Gue]

Very cool!!! I've had 3 Dobies, and now have my Airedale. Reacher is a very appropriate name for a Dobie! I've read all the Reacher novels. He is a very fun character! I think back in the day I would have cast Brian Dennehy for that character instead of Cruise.