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Old 03-26-2015, 04:38 AM
29,766 posts, read 34,851,819 times
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Minorities and woman in the aggregate have not enjoyed the same private sector work history as retirees now that others have had. It will begin to smooth out as the later boomers hit retirement. On the other hand minorities and woman tended to go to public sector employment as there was a fairer chance of employment. That has resulted in woman and minorities now hitting retirement with public sector pensions that many in the private sector don't have because of their career choices. As a young person especially a college graduate it was often a choice of get paid now or get paid later.
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Old 03-26-2015, 04:41 AM
29,766 posts, read 34,851,819 times
Reputation: 11676
Originally Posted by mathjak107 View Post
depending how much is involved the conversions late in life may accomplish little . in our case it is out of the question as everything is in the 25% bracket regardless .

we would just end up just paying earlier than we had to and give up any gains from a hot market on that money we pay the taxes with..

the big advantage to those roths is doing them very early on when you are first ramping up your income over decades of time and start out in lower brackets.

it is that lower average tax rate that tends to be lower than your final years . that can have a roth giving you about 20% more spending money even if brackets do not change in retirement.

that big advantage is lost in life as well as tax brackets allow more and more money to pass at lower tax rates each year so waiting to pay can be an advantage.
Chill bro and don't get on a finance 501 roll. So far so good with folks staying focused on topic.
Just sayin!
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Old 03-26-2015, 06:06 AM
Location: Whereever we have our RV parked
8,763 posts, read 7,693,193 times
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It is not "societies" job to make sure everyone's situation is equal.
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Old 03-26-2015, 06:55 AM
Location: UpstateNY
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Old 03-26-2015, 06:59 AM
191 posts, read 282,263 times
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I have a friend who has made several million in her work life. She can't save a dime and spends everything on the high life. She has come close to bankruptcy in her mid 50's. She plans to work forever to keep her lifestyle (Only a Mercedes is good enough, she complains incessantly about her Lincoln company car, even though it's free!)

Do I feel anyone in the US should help her in her retirement? NO. She made choices to be fiscally irresponsible. She actually told me herself more than once that she doesn't listen to her financial adviser.

I have worked in the pharma industry which pays above-average salaries. I have watched many of my colleagues live the "high" life without any financial planning for the future, even though the employer matches 401ks, and offers financial planning advice for free. I don't think anyone else or the government owes them anything beyond social security.

I have managed to have a great life and still save adequately for retirement, so there are no sour grapes here. The choices were just different. I bought mid priced cars and kept them for 7-10 years instead of leasing Lexus and BMWs. We bought houses we could afford and in our early 50's paid it off the mortgage so we could ramp up retirement savings. We have vacationed every year for at least 2 weeks. Just moderation and living withing one's means.

I do believe in a basic level of education and healthcare should be provided to all. But I said BASIC--and here is my definition of BASIC. I don't think Medicaid should pay for elective surgeries or private rooms in hospitals and there is nothing wrong with community colleges for the first 2 years of school for 90% of college majors.....

Finally, I donate money to organizations that help others, and I also donate my time. I highly recommend that we ALL choose to give back to society but in the way we choose to.

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Old 03-26-2015, 07:00 AM
29,766 posts, read 34,851,819 times
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Originally Posted by augiedogie View Post
It is not "societies" job to make sure everyone's situation is equal.
Does this include the use of tax payer dollars to fund Medicaid and nursing home care for those who can't afford it?
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Old 03-26-2015, 07:18 AM
71,481 posts, read 71,652,652 times
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With all the state partnership plans that are now in effect as far as long term care the states are actually welcoming you on tax payer dollars on to Medicaid regardless as to whether you can afford it or not..

Our state only require 3 years of partnership insurance and then you go on to a special form of extended medicaid that protects assets with no shifting and has no medicaid income limits on the stay at home spouse and no 5 year look back.

I guess they figure anyone with assets will find away to transfer them and go on medicaid anyway so they may as well collect premiums.
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Old 03-26-2015, 08:46 AM
Location: Baltimore, MD
3,745 posts, read 4,214,395 times
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Originally Posted by Larry Caldwell View Post
Many people do not realize that there is already a means test for social security recipients. Last year my wife and I paid income tax on 80% of our social security payments. That money went into the general fund rather than back into the SS system. If taxes paid on SS went back to the SS system, much of the funding shortfall would disappear. <snip>
The taxes paid on Social Security do not go into the general fund. In your case, the taxes went to both the Social Security Trust Fund and the Medicare Part A trust fund.

Taxation of benefits
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Old 03-26-2015, 09:13 AM
1,769 posts, read 2,440,841 times
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Originally Posted by TheShadow View Post
Okay....I'll wade in here and be prepared for my head to be bitten off. There is income inequality in all age groups from children to old age. It is not society's job to make everyone's income equal. For the helpless (children, disabled, very aged) there are already programs in place (AFDC, Disability, SS and SSI, Medicare) to assist. I realize that they provide a pretty meager living, but they will keep you dry and fed with the help of some local charities, albeit not a life of luxury or anything one would ASPIRE to. For the able-bodied in the middle between childhood and old age, there is what most people do...work.

As far as change, I believe that the upper limit for SS withholding should be removed. I think we all, including the super rich, should pay the same percentage of our income into the pool during our working years. This alone would probably save SS for many years. I believe that minimum wage should be raised to at least $10 initially, and then adjusted every year or two in accordance with the COL index. I would also like to see the federal income tax converted to a simple flat tax for everyone, except those who are already living on government funds (it seems counterproductive to tax SS or welfare, right?). I think an approximate 10% flat tax with personal exemptions as the only deductions might do the trick. It seems that the richer folks with more financial savvy and ability to make their money work for them, are the ones who get the most tax relief and advice in sheltering their assets. Doesn't really seem fair. Lastly, I also believe that financial basics such as banking, budgeting, the power of compounding interest, and the dangers of debt should be mandatory in high school. In our school district no one got out of high school until they passed a swimming survival course in PE, no one should get out without passing a money survival course in my world.
Well said! I agree completely. A person's ambition will solve any problem of so-called income inequality.
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Old 03-26-2015, 09:54 AM
Location: Great State of Texas
86,093 posts, read 72,469,891 times
Reputation: 27565
Paying more taxes will not "solve" the INCOME inequality.

The question really is what society needs to do to equalize all retirement income..right ?
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