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Old 04-25-2014, 07:24 AM
 
Location: Jamestown, NY
7,841 posts, read 7,329,858 times
Reputation: 13779

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Quote:
Originally Posted by in_newengland View Post
Accumulating money is also a result of making a lot of money. Few people spend all they have coming in. It's assumptions like this that cause the arguments on here. If you are wealthy, fine. It doesn't necessarily mean you worked any harder or longer than anyone else and it doesn't necessarily mean that you saved and they didn't. It doesn't mean you are any smarter or any better than anyone else either. You're also ignoring all the people who have endured health crises and late divorces or some other issues. Some people have their money stolen by the likes of Bernie Maldoffs, I suppose that makes them lesser human beings who aren't very smart.
Very well said!
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Old 04-25-2014, 08:20 AM
 
Location: Florida and New England
1,233 posts, read 1,417,753 times
Reputation: 1681
Quote:
Originally Posted by ansible90 View Post
Can you explain how the medicare tax one pays is based on cap gains, div and interest. I never heard of this.
Sure. During the 2009-10 Congressional tax and health care debates, the formerly exclusive-to-wages Medicare payroll tax was expanded (little noticed at the time). The tax became effective last year, and a lot of people only found out when calculating taxes a few weeks ago as the April 15, 2014 deadline for 2013 federal taxes approached.

This Medicare payroll tax surcharge now applies to "high earner's" investment income, like capital gains and dividends. I believe, as has happened with many taxes in the past, that Congress will start to widen these taxes progressively down the income scale. So "high earner" becomes anyone making more than 150,000, then 100,000, then 50,000.... I also believe that the same methods will be used to widen the net for the Social Security payroll tax.

Please click link below for a summary of this new tax:

Two New Medicare Taxes for High Income Earners - KLR Tax Blog - Providence, Rhode Island, Newport, Boston, Massachusetts
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Old 04-25-2014, 08:25 AM
 
Location: NE Mississippi
13,665 posts, read 8,577,038 times
Reputation: 19867
Quote:
Originally Posted by foglover View Post
........ I also have not made a lot of money for enough years to be getting a 'comfortable' pension. Without SS, I cannot retire. My tentative retirement date is May 31st. I will be 62.5 years old and will be taking the SS hit. So be it. Contrary to my extreme desire, I will not live forever. If I get out of hand, my younger sisters will probably euthanize me.

The lady with the 401K will probably be just fine - very vague, but that is my intuition.
Mental health. Priceless, ain't it?

May 31st. You mean next week? Congratulations!
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Old 04-25-2014, 08:36 AM
 
491 posts, read 598,162 times
Reputation: 2095
Does anyone have the statistics of the percentage of persons needing nursing home care? I have in my mind that it is a low number like 25% or one in four.
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Old 04-25-2014, 08:53 AM
 
Location: middle tennessee
1,924 posts, read 989,259 times
Reputation: 6931
I don't worry about not being able to pay for long term care, at home or in an institution, should I live beyond my ability to manage my own life. And before anybody jumps in to say that their tax money will be used to pay for my care, you'll have to catch me first.

I don't see why I shouldn't be okay. When my current vehicle quits, I will not buy another. I rent, by choice, so as long as I pay my rent on time, my housing, appliances, even my utilities, are taken care of. The bank sends the landlord a check. I could be dead a month or two before anyone notices.

I have the money from the sale of my house for small to medium emergencies. It's not any where near a million dollars. I get a nice SS check that covers my monthly expenses because I have worked since I was 15 years old and paid taxes on every penny I made. I know that I am better off than many my age (near 70) and I appreciate it.

I've had a decent, interesting life. I expected life to be different when I got old(er).

I think I worry less about money than people who have more. I know that I could live on much less and may have to one day. It doesn't worry me. I've been managing all my life.

I don't understand why people think you need a million dollars, or whatever the mythical figure is, to retire. You get to a point where you can't work any more. That's what retirement has always meant to me. Not "I have X amount of dollars in the bank. Now I can retire!". I've never seen it as a choice. If I was able to work, I would work.

Having more money than you need doesn't appear to keep people from worrying about having enough money. I wouldn't want to live like that.
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Old 04-25-2014, 09:03 AM
 
Location: East of Seattle since 1992, originally from SF Bay Area
29,795 posts, read 54,455,776 times
Reputation: 31105
Quote:
Originally Posted by Escort Rider View Post
I'm sure you are describing your own situation accurately. However, I now drive more than when I worked full time, for two reasons:

1. I was fortunate enough to have a relatively short commute the last 21 years of my career - no more than 8.5 miles one-way. Not everyone has a long commute.

2. I now have more time to go places and do things. I am not one to hunker down at home.
Same here, I expect to drive many more miles after retirement since I only go a short distance to the park & ride and take the bus to work now.
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Old 04-25-2014, 09:42 AM
Q44
 
Location: Hudson Valley, NY
895 posts, read 765,904 times
Reputation: 1761
Quote:
Originally Posted by Escort Rider View Post
I'm sure you are describing your own situation accurately. However, I now drive more than when I worked full time, for two reasons:

1. I was fortunate enough to have a relatively short commute the last 21 years of my career - no more than 8.5 miles one-way. Not everyone has a long commute.

2. I now have more time to go places and do things. I am not one to hunker down at home.

My former commute from Long Island in to NYC was just about 50 miles each way and 2 1/2 hours. Again, that's each way, every day.

My company offered me a job north of the city after 9/11 and I took it. Now my commute is a manageable 20 miles each way on the Thruway, about 25 minutes each way.

When not working, my wife does the driving, I have no problems playing like Miss Daisy. Maybe an 80% reduction is wishful thinking but I'll be cutting out 200 miles a week in gas and wear and tear.
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Old 04-25-2014, 09:48 AM
 
Location: Glenbogle
730 posts, read 1,027,323 times
Reputation: 1046
Quote:
Originally Posted by mathjak107 View Post
there is a huge flaw in the idea we spend less as we age . the flaw is we assume that folks spend less because they want to or it is natural to do so.

but more often than not it is a forced spending cut as they age. assets start to run thinner , they have health issues and need to keep more powder dry, they become more nervous about outliving their money, etc etc.
Kudos to this! ^^ So true.
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Old 04-25-2014, 09:58 AM
 
Location: Glenbogle
730 posts, read 1,027,323 times
Reputation: 1046
Quote:
Originally Posted by lenora View Post
Real property taxes (in MD) are also reduced for those with low income.
I looked into MD when I first began researching retirement locations, and discovered that in addition to the income limits, there is also an asset limit of $200K (not including the residence for which the credit/reduction is being claimed).

So if someone sells their house in, say, NY or MA, and comes to MD with $300K from the sale, planning to save or invest it for retirement income, they will not be able to get the property tax credit.

Some towns or counties also have their own low-income senior assistance programs but it's not statewide.
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Old 04-25-2014, 10:45 AM
 
8 posts, read 6,193 times
Reputation: 33
According to this study :

Long-Term Care: What Are the Real Risks? - CBS News


42 percent of people turning age 65 will have no private out-of-pocket costs for long-term care over their lifetime.
19 percent of those turning 65 will have out-of-pocket costs under $10,000 over their lifetime.
8 percent will have costs between $10,000 and $25,000.
14 percent will have costs from $25,000 to $100,000.
11 percent will have costs over their lifetime from $100,000 to $250,000.
5 percent will have costs of $250,000 or more.

Quote:
Originally Posted by Aqua Blue View Post
Does anyone have the statistics of the percentage of persons needing nursing home care? I have in my mind that it is a low number like 25% or one in four.
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