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Old 08-17-2014, 01:11 PM
 
Location: SW Florida
9,766 posts, read 7,050,021 times
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Quote:
Originally Posted by TheShadow View Post
Pensions for the two of us (one each) total between $65-70K including an annuity(too lazy to look up our gross right now). SS we do not receive yet, but will total around $17K in 2 years for the DH, and I can't file for at LEAST 7 years, but when I do it will be another $20K. Unfortunately we will be losing that $10K annual temporary annuity before that. We have covered PPO med/dental for about $1500/year (20% deductible). We have investments we don't touch right now, some minor savings, and a rental property that is, at the moment, a break even but in 2 years will be paid off and will be about $8k annual cash flow. So we figure our retirement income total to be around $90-100K for life. We have a $300k mortgage at a low rate and the usual monthly bills, but no debt. It took a little figuring to structure all of this to obtain a levelized income for the next 30 years. We could have stayed longer and made our pensions larger, but we wanted our freedom while young enough to enjoy it. Besides, this is plenty for any NORMAL retirement needs and most of the curveballs we may encounter are covered.
Sounds great, hope it all works out as you had planned. And I certainly agree with you about retiring while you are still young enough to enjoy it.
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Old 08-17-2014, 01:30 PM
 
29,789 posts, read 34,889,516 times
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Quote:
Originally Posted by Larry Siegel View Post
These numbers are averages that include short-service employees. Long-service employees do much better. Police and firefighters do much better (they tend to retire as chiefs). Teachers vary because of widely differing pay scales and length of service. Where do you think your 12% California state income tax is going?
If most are retiring as chiefs who are they chiefing?
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Old 08-17-2014, 01:33 PM
 
29,789 posts, read 34,889,516 times
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In General

Policy Basics: Where Do Our State Tax Dollars Go? — Center on Budget and Policy Priorities

Quote:
By far the largest areas of state spending, on average, are education (both K-12 and higher education) and health care. But states also fund a wide variety of other services, including transportation, corrections, pension and health benefits for public employees, care for persons with mental illness and developmental disabilities, assistance to low-income families, economic development, environmental projects, state police, parks and recreation, housing, and aid to local governments.

Education has stayed a fairly constant share of state spending in recent decades. The share of state budgets devoted to Medicaid has grown, however, while the shares devoted to transportation and cash assistance to low-income families have declined.
The California burden is higher and much of the new education budget increases are going to pensions. This is not the case across the board.
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Old 08-17-2014, 02:02 PM
mlb
 
Location: North Monterey County
3,194 posts, read 2,861,612 times
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Quote:
Originally Posted by TuborgP View Post
Pensions are very similar and within plans identical. The working years salaries and the individual dollar amounts paid in by beneficiaries as you know is what makes the difference. If the employee contributes it is expected that those contributing more will receive more. Even at the same salary scale the employee who works 40 years will get more than the employee who works 30. California and other high income states have higher overall pension costs because of a higher cost of living and resulting salaries. The key is working in a high cost of living state with resulting higher pension and retiring to a lower COLA state with your higher pension if that works for you. So that Calif pension looks even better in Wisconsin and that Wisconsin pension looks lower in California. Yes not all pensions are alike as some allow you to qualify for SS and others don't. Many California pensioners don't get SS so to compare with a pensioner who also gets SS is not a valid comparison unless you add in their SS. So what is your combined pension and SS benefit at age 66 FRA or don't you get SS?
My SS will be cut back 40-50% because my employer for the last 15 years (and until I retire in 5) does not pay into SS.

The formula for me is Years of Service x 2% - that percentage (say 54% if I get to 27 years) of the average of my three highest years of earnings.

But what they did do was pay into the state retirement fund with that money. That would be Utah State Retirement.
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Old 08-17-2014, 02:05 PM
 
Location: Sacramento
13,784 posts, read 23,819,620 times
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Quote:
Originally Posted by Larry Siegel View Post
These numbers are averages that include short-service employees. Long-service employees do much better. Police and firefighters do much better (they tend to retire as chiefs). Teachers vary because of widely differing pay scales and length of service. Where do you think your 12% California state income tax is going?
What 12% California state income tax??? You mean the rate that kicks in at $508K in taxable income for single filers, and $1,017,000 in taxable income for married filrers?

Tossing stuff like that in your posting really hurts credibility. A married couple in California with $100K in taxable income, after deductions and exemptions, pays about $4,500 in income tax.
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Old 08-17-2014, 02:06 PM
 
Location: SoCal desert
8,093 posts, read 13,242,460 times
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Quote:
Originally Posted by Larry Siegel View Post
These numbers are averages that include short-service employees. Long-service employees do much better. Police and firefighters do much better (they tend to retire as chiefs). Teachers vary because of widely differing pay scales and length of service.
Which is why my post said average.
The term "long-service" employee and pension dollars depends on what your pay was. I know a lady that was a college food worker for 30 years. Her pension is $900 a month. So she's not doing better than the average.
My post also said teachers, police, and firefighters are a different system all together.
Your point was?
Quote:
Originally Posted by Larry Siegel View Post
Where do you think your 12% California state income tax is going?
To take care of illegal aliens and other wasteful things.

And I paid no where near 12% state tax last year.
Good lord, by the time I got done, it was below 3% of my gross. Hell, it was below 3% of my taxable.
BTW, over the years, 7% to 9% of my gross was deducted for my future pension.
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Old 08-17-2014, 02:24 PM
 
Location: Los Angeles area
14,018 posts, read 17,754,097 times
Reputation: 32309
Quote:
Originally Posted by Larry Siegel View Post
These numbers are averages that include short-service employees. Long-service employees do much better. Police and firefighters do much better (they tend to retire as chiefs). Teachers vary because of widely differing pay scales and length of service. Where do you think your 12% California state income tax is going?
Others have already beat me to the punch in pointing out that it is misleading to quote the maximum marginal rate (12.3%), which applies only on amounts above $508,500 for single filers.
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Old 08-18-2014, 02:19 AM
 
6,353 posts, read 5,167,603 times
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Quote:
Originally Posted by TuborgP View Post
If most are retiring as chiefs who are they chiefing?
Nobody. Their buddies get them promoted to chief so they can enjoy a year or so of high income at the end of their career, and the final pay is used as the basis for calculating the pension. In other words, it's a scam to take advantage of the pension formula.
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Old 08-18-2014, 05:06 AM
 
2,394 posts, read 2,065,288 times
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You are making things up. "Most" is a measurable standard. I am sure it happens but most firefighters or policemen do not retire as chief.
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Old 08-18-2014, 07:04 AM
 
Location: Loudon, TN
5,796 posts, read 4,848,703 times
Reputation: 19499
And most retired CA state workers do really make less than $3000 per month pension, even the long term ones. I only know a couple hundred, so YMMV! Sometimes average really is the average and not just a mathematical formula skewed by a few low wagers. In fact, if anything skews the average, it is the relatively few unconscionably high earners skewing it above what the rank and file clerical, customer service type folks make.
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