Can I pay my property taxes two or three years early?

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Q. If I could make two or three years of payments for property taxes in New Jersey, should I? I’m worried about banks and the economy and I want to protect my property.
— Homeowner

A. You can, but should you?

What we don’t understand is exactly why you’d want to prematurely part with your money.

Banks are fine, said Jerry Lynch, who called them well capitalized.

“I have no concerns for them at this time,” Lynch said. “At least short-term the government has put a tremendous amount of money into the U.S. economy and looks like they will be adding more so the economy should pop coming out of this.”

While some businesses and industries will have issues for some time, such as restaurants, hotels, airlines, and more, but others are doing very well, Lynch said.

Plus, any money you have saved in bank accounts is probably FDIC-insured.

As for paying property taxes ahead of time, Lynch questions what good that would do.

“I would rather keep my money in a bank, stay liquid and earn nothing then give it to the state and lose my liquidity,” he said.

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This story was originally published on Feb. 4, 2021.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.

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