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Old 01-31-2015, 09:31 AM
 
72,003 posts, read 72,043,164 times
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it could pay to wait but realize you will be spending down more in your cash and bonds to live since the spia would have given you a higher cash flow day one regardless.

it is like waiting to take ss. you will spend more of your own money waiting for the higher payment. it may or may not pay.
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Old 01-31-2015, 09:38 AM
 
1,228 posts, read 1,264,090 times
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OK, thank you. I'm not near retirement yet, but I've been looking into adding another DIA. The SPIA will be for when I am retired. I like the DIA because they are less expensive to purchase (generating the same monthly income as the SPIA) if you have the time to wait.
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Old 01-31-2015, 09:53 AM
 
72,003 posts, read 72,043,164 times
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I like them to a lot. you can plan with your own money until a younger age and spend more while younger.

then if you make to the point the deferred annuity kicks in it is like hitting a lottery.

they are quite cheap for what they pay.,
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Old 01-31-2015, 10:43 AM
 
Location: SW MO
23,605 posts, read 31,542,742 times
Reputation: 29083
Quote:
Originally Posted by rdflk View Post
What are some good strategies for keeping retirement income low enough to not pay taxes on Soc Sec.?
I have to be honest - it's a curse - I find the entire premise of this thread distasteful just as I do the loopholes, schemes and contrivances permitting and used by the wealthy to pay taxes at a lower rate than the middle-class.

The country has to run on something and living in the "land of the free" is not free, nor should it be. Someone has to pay for the infrastructure, defense and "general welfare" of the people and to spend so much time and effort to dodge paying one's part is not attractive in my opinion. I see it as mere greed.
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Old 01-31-2015, 11:02 AM
 
Location: between three Great Lakes.
1,766 posts, read 1,955,006 times
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^ I'm with Curmudgeon. What's more appalling than the original question, is the barrage of answers implying it's a good idea to dodge taxes. If you've got it, PAY IT.
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Old 01-31-2015, 11:14 AM
 
Location: Ubique
4,156 posts, read 3,172,303 times
Reputation: 2644
Quote:
Originally Posted by Curmudgeon View Post
I have to be honest - it's a curse - I find the entire premise of this thread distasteful just as I do the loopholes, schemes and contrivances permitting and used by the wealthy to pay taxes at a lower rate than the middle-class.

The country has to run on something and living in the "land of the free" is not free, nor should it be. Someone has to pay for the infrastructure, defense and "general welfare" of the people and to spend so much time and effort to dodge paying one's part is not attractive in my opinion. I see it as mere greed.
What do you propose?
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Old 01-31-2015, 12:42 PM
 
Location: SW MO
23,605 posts, read 31,542,742 times
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Quote:
Originally Posted by Henry10 View Post
What do you propose?
That should be real evident. I didn't think I needed to take a firm, two-handed grip on my Crayola and draw a picture.
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Old 01-31-2015, 12:44 PM
 
2,429 posts, read 3,232,298 times
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No one is saying 'dodge' taxes. Are you saying a person shouldn't take LEGITIMATE steps that are allowed in order to pay as little tax as possible? If that's the case then have you ever paid EXTRA? I suggest you send the treasury an additional donation every year above and beyond what you normally pay.

As for annuities, I find them so confusing. And it doesn't help that I've heard blanket statements about them being too costly. I will research them at the link provided and google some of the names mentioned earlier.

I'm single, no kids, no need to really leave money to anyone (I plan of gifting ahead of time, but if that doesn't work out so be it. It's not a big deal.)...I just don't want to pay more taxes than I have to. And i'm looking for legitimate tax strategies that might work for me.....that I'm comfortable that I can understand Thus the need for more research on annuities.

-- Can you convert 401K money to ROTH IRA accounts IF you're already retired and not working at all. (I already have one Roth IRA now, but it's the smallest of my accounts).
-- Can you do it if you've 'retired' from the original 401K job and drawing your pension, but still working part time.....IF you just want to roll it over and not touch it.
-- Even if you CAN do it -- is it WORTH it to do it...given that you'll be paying the taxes on the rollover. Why not just leave it and draw it down little by little as you delay getting Soc. Sec.?
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Old 01-31-2015, 01:21 PM
 
Location: Ubique
4,156 posts, read 3,172,303 times
Reputation: 2644
Quote:
Originally Posted by Curmudgeon View Post
That should be real evident. I didn't think I needed to take a firm, two-handed grip on my Crayola and draw a picture.
On the contrary, I think you should grab the crayola and paint us a picture of how things should be in the retirement investment arena, according to you. Your original post made absolutely no sense to me.

I second the request that you tell us how you pay more taxes than absolutely necessary.
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Old 01-31-2015, 01:46 PM
 
29,866 posts, read 34,936,573 times
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Quote:
Originally Posted by Henry10 View Post
On the contrary, I think you should grab the crayola and paint us a picture of how things should be in the retirement investment arena, according to you. Your original post made absolutely no sense to me.

I second the request that you tell us how you pay more taxes than absolutely necessary.
Curmudgeon is making a very valid point and one that is at the crux of our national discussion on income, wealth and inequality. Curmudgeon like many of us has a pension which is a pre-determined fixed income stream that has limited ability to create flexible distribution with It is taxed as ordinary income. One of the few if not only ways to construct it differently for tax purposes is with spousal benefits/life insurance. For those with pensions and SS other than when to take the streams it is pretty fixed and difficult to manage for tax purposes if of a decent amount. On the other hand those of us with investment streams have flexibility in distribution, source and timing. Having all of I recognize the difference in how retirement income is treated and understand Curmdgeons sentiment. For us it make no difference but for others I know it can. MathJak and I can have similar base incomes but the way his is constructed creates some tax options I don't have. We can have similar ones with other incomes but my pension and SS will be barring a disaster no lower than it is now and in all probability going up. Any self created investment streams will be on top of that. At the crux of much of the tax inequity discussion in the country is the nature of income and should it be taxed the same? I can appreciate and understand the nuances of the differences but I am sure many other well reasoned and intelligent people wouldn't.
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