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Old 06-09-2014, 10:55 AM
 
29,764 posts, read 34,851,819 times
Reputation: 11675

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Quote:
Originally Posted by LivingDeadGirl View Post
I think it's really sad to read that retirement advisors say the most difficult thing is getting people to spend their money and these people can't find where to spend it. Donate it and do good!!!! I donate far too much probably because I remember how difficult life was when I was a student, very poor, young and trying to make a house payment. Where is the empathy!!!
Perhaps they also remember how tough life was when they were young and don't want to return there in their later years. I know we don't. Having a big cushion and one that is still growing is awfully reassuring and being able to still invest invigorating for some. Also all the talk about failing pensions and punishing high SS recipients might just be encouraging others to hoard etc etc.
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Old 06-10-2014, 04:23 PM
 
Location: Saint Johns, FL
1,192 posts, read 941,013 times
Reputation: 1267
Quote:
Originally Posted by nicet4 View Post
Good, I am happy for you.


We have our retirement budget laid out and I don't see why we need to dig into the savings unless there is a real catastrophe.

Retirement Budget Monthly
Medicare Subpart B $209.40
Medicare Plan F Supplement $342.00 (No surprises with this one)
Prescriptions $120.00 (should be less but I am figuring high side)
Property Taxes $90.00
Homeowners Insurance $40.00
Home Maintenance $200.00 (I HATE yard work so I hire it done) Generally runs around $100/month but there is extra for spring and fall clean up and planting flowers. Got a good looking yard and I never touch it. Also got an exterminator in there as well. Bugs and termite insurance.
Auto Insurance $75.00
Gasoline $194.44 (2,000 miles/month @ $3.50/gallon in a Honda)
Auto Maintenance $50.00
Utilities $250.00 On high side
Cell Phones $187.41 I can cut this back but do I need to?
Internet Cable TV $123.27
Food $649.50
Clothing $100.00
Entertainment/Spending Money $433.00
Emergencies $300.00
Church $216.50
Total
$3,580.52

On with social security(collect at 67 1/2 which is my goal) and pensions we should receive $4,759.00 monthly. Everything will be exempt from state income tax and from the work sheets it appears I will have to pay less than $100 monthly towards federal income tax so figure take home of $4,659.00.
Am I missing something here? Nicet4 states his retirement income will be from pensions and social security (not Roth IRA's), and will be $57,000 a year. But his tax Fed liability will be less than $1200. I did a super quick estimate and to me it looks more like $4,500 OR $4,600 a year.
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Old 06-10-2014, 04:26 PM
 
71,467 posts, read 71,652,652 times
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i did a quick check for ball parking something the other day and a 65 year old couple just taking standard deductions and exemptions would pay 1800.00 tax on about 42k. 57k with deductions would have to get below 42k taxable income to pay 1200 bucks.
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Old 06-13-2014, 04:53 AM
 
Location: in the miseries
3,302 posts, read 3,577,670 times
Reputation: 3810
Quote:
Originally Posted by TuborgP View Post
Perhaps they also remember how tough life was when they were young and don't want to return there in their later years. I know we don't. Having a big cushion and one that is still growing is awfully reassuring and being able to still invest invigorating for some. Also all the talk about failing pensions and punishing high SS recipients might just be encouraging others to hoard etc etc.
In my earlier days if I had a dollar extra I was good.
So we hoard, but really wish we didn't.
Still accumulating even though retired. Each have a few hours a week job just to keep interested.
I could be paid to play (instrument) but always refuse.
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Old 06-14-2014, 07:44 AM
 
Location: Grove City, Ohio
10,128 posts, read 12,376,133 times
Reputation: 13936
Quote:
Originally Posted by Newporttom View Post
Am I missing something here? Nicet4 states his retirement income will be from pensions and social security (not Roth IRA's), and will be $57,000 a year. But his tax Fed liability will be less than $1200. I did a super quick estimate and to me it looks more like $4,500 OR $4,600 a year.
Oh boy, I will look at it again.

I think I need another calculator.

Using this How much of my social security benefit may be taxed?

I am married filing jointly and receive $44,820 for social security plus $12,288 in pensions for a total of $57,108. This is if I work two more years so if I stop working tomorrow our social security would go down a bit but not all that much.

The calculator produces:

Quote:
Results
Explanation of Results

Based on the worksheet provided in the most recent IRS Publication 915, your Social Security benefit(s) of $44,820 will be 3% taxable increasing your taxable income by $1,349 and creating a federal income tax liability of $337.
So it appears that isn't my total tax liability as it simply figures my taxable amount on my social security alone which isn't very much.

Last edited by nicet4; 06-14-2014 at 08:28 AM..
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Old 06-14-2014, 09:13 AM
 
Location: Saint Johns, FL
1,192 posts, read 941,013 times
Reputation: 1267
Actually..... I think you are right. And it gets even better. I had just punched in 57,000 of income. But using TaxAct, I punched in 12,228 in pensions and 44,280 of SS divided evenly between you. That way TaxAct can figure out all the deductions and exemptions.

When I did that.... you owed NOTHING . Basically it's because your non-SS is so low. I'd suggest getting a copy of TaxAct. You can download it from their website for $12.99. They also have a free web version which may suffice for your testing. (I've never used the web version.)

PS - Still like to know where you live. I suspect it's south Georgia someplace.
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Old 06-14-2014, 10:20 AM
 
Location: Grove City, Ohio
10,128 posts, read 12,376,133 times
Reputation: 13936
Quote:
Originally Posted by Newporttom View Post
Actually..... I think you are right. And it gets even better. I had just punched in 57,000 of income. But using TaxAct, I punched in 12,228 in pensions and 44,280 of SS divided evenly between you. That way TaxAct can figure out all the deductions and exemptions.

When I did that.... you owed NOTHING . Basically it's because your non-SS is so low. I'd suggest getting a copy of TaxAct. You can download it from their website for $12.99. They also have a free web version which may suffice for your testing. (I've never used the web version.)

PS - Still like to know where you live. I suspect it's south Georgia someplace.
South Georgia not far from I-75 so close to Florida I can throw a rock and be be in Florida in a few minutes.

Like everywhere it has its positives and negatives. Georgia exempts all retirement income, up to $35,000 for single or $65,000 for couple, from state income taxes.

Kipplinger's State-by-State Guide to Taxes on Retirees (Georgia)

Property is relatively cheap and now to make Californians and New Jerseyians jealous:

Quote:
A standard homestead exemption is available to all homeowners who occupy their home as a primary residence. The owner may be granted a $2,000 exemption from state, county and some school taxes. The $2,000 is deducted from the 40% assessed value of the homestead. Median property tax on the state's median home value of $162,800 is $1,346, according to the Tax Foundation.

I feel you can get a pretty good home for less than the median of $162,800 like this home at 5284 Golf Dr, Lake Park, GA 31636 listed for $139,900 that can probably be picked up for $130,000.



and it is on the golf course.. I know the area well and it's a perfect place to retire. My guess is taxes would be around $1,200 a year.

There are additional property tax breaks for seniors as well. Most likely by the time you got the senior homestead exemption you wouldn't have any taxes to pay.

Georgia is very retiree friendly and we are seeing more and more people relocating just north of the state line to avoid Florida cost of living expenses.

When we discuss retirement income it isn't so much as how much you will receive but where are you going to live when you receive it. If we had to I know we could live very well, very comfortable, on our social security alone but if I tried living on $2,900 (that would be what would be left over after we paid our medicare and supplement costs) I know we would be in hurt, hurt city in New Jersey.
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Old 06-14-2014, 09:36 PM
 
Location: Saint Johns, FL
1,192 posts, read 941,013 times
Reputation: 1267
I live just south of Jax. I pay about $1000 more for both taxes and insurance.
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Old 06-15-2014, 06:01 PM
 
Location: Approximately 50 miles from Missoula MT/38 yrs full time after 4 yrs part time
2,294 posts, read 3,339,186 times
Reputation: 4824
Default Looking for "objective " opinions...Thanks ahead of time.

Facts:............................
Age is 82; Widowed Male; self educated Investor for last 35 years; I worked for 40 years and started to receive Social Security at age 62. I have no pension of ANY kind--only other source of income is (are) the
"cash" "distributions from my investments" in a Brokerage Account at a Discount Brokerage and the Required (annual) Minimum Distribution" from my IRA. I do not "dip-into-the Principle" of the Brokerage Account. The Average Annual Total Return (since 1-1-09) on the Investment Instruments in the Brokerage Account is 17.66% {composed of 84% Equities, Cash 12%, Fixed Income 2% and "Other" 2%}....The IRA, which I don't touch, has a return of 13.9%. I have "pre-paid" All of my Funeral Expenses, am totally Debt Free, own my own home, and do not live an Expensive Life Style.

I think it is about time that I reduce my exposure in the Equity Area of my Investments--I expect another significant "Market Correction" in the near (3 to 24 months) future.....................................
QUESTIONS:

Where should I "move" about 80% of my Equity Investments so that the next "correction" will have the least negative effect on their value?

Bear in mind, I am not a sophisticated or highly educated investor....I simply understand some of the basic principals of 'common-sense" investing and do not make many changes in my holdings--maybe 3 or 4 per year.....I am a patient investor and do not try and "time-the-market'.

Any suggestions that some of you out there may have, that are more educated that I, would be appreciated.
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Old 06-15-2014, 06:15 PM
 
29,764 posts, read 34,851,819 times
Reputation: 11675
It isn't just equities or non equities. It is the risk or volatility associated with the investment style of the fund. You want a conservative balanced fund and or a conservative equity fund with the appropriate risk level in your non equity funds. Many of us have preferences depending on the company. Popular choices are Wellington and Wellesley with Vanguard along with capital Appreciation at TRowe Price there are others.
I understand and fully appreciate your question.
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