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Old 02-25-2015, 02:10 AM
 
71,651 posts, read 71,777,271 times
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while there is some money saved compared to working the flip side is at least in the early years, for many of us time cost money and one thing we have in retirement is plenty of time.
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Old 02-25-2015, 05:25 AM
 
Location: Subconscious Syncope, USA (Northeastern US)
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Sorry but I just remembered what the special document is about.

If I withdraw before 59 1/2, I face a very big penalty. I cant show that I am working, full time or part time, and avoid the penalty for early withdrawal. The document is submitted when I file taxes, if I can prove I am truely retired at 57, and thereby avoids the penalty.

Quote:
Originally Posted by Curmudgeon View Post
Just keep in mind that while taxes will still be an issue, other things will offset them to some degree in retirement. No more working wardrobe and upkeep. So long commuting and perhaps parking costs. Bye-bye lunches out. Sayonara to office parties for birthdays and Christmas, secret shoppers, etc. In the end it all balances out and you could end up better off than you think.
I agree that the taxes are a worry, but at least to start out you could be right. I could actually be living better for staying home and enjoying life. Finally, I guess Im getting a little piece of that 'American Dream".
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Old 02-26-2015, 10:37 AM
 
Location: SW US
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Quote:
Originally Posted by Escort Rider View Post
I am 70 and it is almost certain that I will not live long enough to see the day of real crisis for Social Security. The worst that can happen is that at some point in the future benefits will be reduced to 75% of what was promised. Now admittedly that would be a pretty serious situation - a 25% reduction is more than a minor cut. However, it is a far cry from Social Security no longer "being there". And of course for that to happen Congress will have to have done nothing in the years leading up to it.

I'm not sure why so many people talk about SS "not being there" for them. (We see such talk in the Economics Forum from time to time also). Is it ignorance? Is it excessive hatred of all things government which leads to exaggeration? A more measured and accurate statement would be something like, "those counting on Social Security alone should reckon with the possibility of reductions in benefits twenty or twenty-five years from now".
Medicare may be more at risk than SS for our generation. Losing Medicare as it is today could bring a big financial hit. Some doctors are already opting out of Medicare, and others are talking about it.
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Old 02-26-2015, 04:36 PM
 
Location: Los Angeles area
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Originally Posted by Windwalker2 View Post
Medicare may be more at risk than SS for our generation. Losing Medicare as it is today could bring a big financial hit. Some doctors are already opting out of Medicare, and others are talking about it.
So true. Medicare is much closer to a crisis point than Social Security itself, and that's part of the strangeness of people yammering about Social Security "not being there".
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Old 02-26-2015, 07:48 PM
 
Location: Subconscious Syncope, USA (Northeastern US)
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Its probably one of those 'myth's that have been around since SS was started. Sort of like how "The world is ending" has been around since before Christ.

If the wealthy paid the tax on all of their income - just like the rest of us do - (and not just the first $110K), 88% of the problem with SS & SSI would disipate into thin air.

Im sure there are other options as well, but that was just off the top of my head, lol.
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Old 02-27-2015, 02:54 AM
 
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if they are going to pay more in they they should increase the limits of what ss pays out to those same folks who pay more in,

the amount is capped to match the ss limits.

no one should be penalized further for being successful .
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Old 02-27-2015, 04:19 AM
 
Location: Grove City, Ohio
10,135 posts, read 12,390,523 times
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Quote:
Originally Posted by Hemlock140 View Post
Living off of our retirement savings would be risky, since that money is most likely going to grow slower than inflation. While we have a few more years to work, the combination of SS and our two pensions will result in almost what we take home now, and we plan to sell the big empty nest and use the equity to pay cash in a lower cost area. The investment/savings are meant as the "gravy" for things like travel, unexpected medical expense, home repairs.
My wife hasn't worked outside the home for a good number of years so we are a single income team.

If I can work another 18 months, at which time I will be approaching 68, I will have realized my goal that being by combining pensions and social security our take home income will be within $50/month of our current take home pay.

What retirement savings we have we're not going to take unless an emergency.

Unless you live in a high cost of living area; areas of California, New York and around Washington, DC, I fail to see why a couple can't live very comfortably on the equivalent of $1,100/week "take home pay" especially if no debts or mortgage.

My wife's Medicare supplement, which includes dental, is paid for by her state pension.

Our monthly budget looks like this (as of this moment in time):

Medicare Sup $163.48
Life Insurance $200.00
Prescriptions $100.00
Real Estate Taxes/Insurance $150.00
Home Maintenance $200.00
Auto Insurance $50.00
Gasoline $100.00
Auto Maintenance $50.00
Utilities $250.00
Cell Phones $177.00
Cable $125.00
Food $433.00
Clothing $50.00
Entertainment/Spending Money $433.00
Emergencies $200.00
Church $108.00
Monthly Total $2,789.48 or $644.22 weekly.

Yes, some budget items might seem low, clothes for example, but with a monthly "take home" of $4,700 there's still nearly $2,000 left over for "other things and emergencies like clothes" but the majority of that left over retirement income we'll just toss into retirement savings.

But if we had to we could live comfortably enough on less than $3,000/month.

We're all different and for me it isn't where I live, as long as it's comfortable, clean and safe I could care less, but it is about the spending money in my pocket I have left over to do anything I want to do.

We won't do it of course but living close to Florida we would have enough to go on a cruise every month if we wanted. Every two months we could fly to Vegas for a long weekend. Basically we could do pretty much anything we wanted to do and it is the freedom to do exactly that is what's most important to me.

Things I want to do list:

1. Ten day cruise through the Panama Canal. I want a room with a window.

2. Ten day Hawaii vacation.

3. Alaskan cruise.

4. Visit Italy. I love imperial Roman history (The Decline and Fall of the Roman Empire is one of my favorite books) and i want to see Rome.

5. Follow the trail of Bonnie and Clyde. This one shows my weirdness and my wife told me I'm going alone on this trip. Everyone has seen the movie but did you know they were far more traveled than depicted? They even made Florida and New Mexico. Anyway, color me weird.
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Old 02-27-2015, 04:25 AM
 
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some comparisons can be interesting . just looking at some in the tristate area.


our real estate taxes and insurance here are 10x that amount.

our food bill is 2-1/2 times that.

auto insurance 3x that'

enertainment 4x that
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Old 02-27-2015, 04:26 AM
 
Location: Subconscious Syncope, USA (Northeastern US)
2,367 posts, read 1,637,179 times
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Quote:
Originally Posted by mathjak107 View Post
if they are going to pay more in they they should increase the limits of what ss pays out to those same folks who pay more in,

the amount is capped to match the ss limits.

no one should be penalized further for being successful .
Why not? People can reinvest to protect assests as they always have. When I was a kid 'successful' people had a base rate of 90% income tax. This was lowered by investing into other businesses, which helped create jobs. People opened restaurants and hotel chains etc to avoid a higher tax rate. Bought stocks and bonds, all of which stimulated the economy and created jobs. They reinvested in the country that had made them so successful

What superior system 30 to 60 years later has replaced that? It has been replaced.

They will have to pay taxes on any income over 3K, even if they dont have any resposnbility to the country they were so successful in. What is 3K a month to guys like Michael Bloomberg or Donald Trump anyway? A night out with the family, lol?

SSI also shores up the welfare system in many 'poor' states. Ive read that half the population of Alabama is collecting SSI because of their back problems - but its more like the state cant afford its own poverty.

I could go on to mention things like NAFTA and GAFTA which certainly did nothing to improve anything for anyone who is not wealthy (middle class and below), but I wont.

Now, those who are not wealthy need to gamble with the stock market in the hopes of even having a modest retirement. Funny that a very wealthy person I worked for once suggested I take some investment money to Atlantic City. He said I had just as good of a chance of making money, and I would have a much better time.

Ive seen wealthy people spend thousands of dollars a month on pixels to play elitist MMOs, but god forbid they have to match that with a contribution/investment into their own country with tax dollars.

Im very glad I was born when I was, since Im not wealthy.

I once met a woman - once - that was over 65 but did not have Medicare. She blew my mind when she told me it was welfare, and she didnt need it. Kudos to her. Imagine, if the wealthy dont need welfare they dont have to collect. What a concept!

P.S. I beleive once anyone has collected SS for more than 3 years, they are surviving on someone elses dime. They are in essence collecting welfare - even if they did pay substancially into it.

Last edited by ConeyGirl52; 02-27-2015 at 04:41 AM..
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Old 02-27-2015, 04:29 AM
 
71,651 posts, read 71,777,271 times
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whether they invest or not has nothing to do with ss.

where you live has a huge effect on what 110k a year represents. living in ny it certainly isn't a wealthy income by any yardstick.

if you want to start taxing more at low levels like that then my feeling is ss should pay them more. 110k pretax income is hardly a wealthy level in many areas.
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