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Old 04-13-2015, 01:22 AM
 
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I really have a hard time trusting someone else with my money.
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Old 04-13-2015, 03:15 AM
 
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most folks who do it themselves only do well during the accumulation stage . then tax wise they give more back than they should in the 2nd half of the game.

the 2nd half of the game is only played well by a few pro's as well.

there are tax pitfalls waiting to happen that most are not aware of and they cannot be fixed after the fact.

without careful planning all that good tax efficiency you thought you were doing buying index funds or etf's ,30 years later can create one huge tax torpedo as decades of pent up taxes are waiting to spring in to action if you make lifestyle changes in your portfolio triggering taxes and surcharges ..

my only regret is i didn't see a good retirement specialist early on . but i didn't know what i didn't know about so i saw no reason.

any fool can throw some index funds together and think they are a genius. but it takes skill and knowledge to develop a good solid tax efficient retirement plan AND STILL MAINTAIN A HIGH LEVEL OF INCOME..

DRAW A 100K INCOME AND NOT GET YOUR SS TAXED .

that is a work of art.
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Old 04-13-2015, 10:33 AM
 
Location: Idaho
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Quote:
Originally Posted by mathjak107 View Post
any fool can throw some index funds together and think they are a genius. but it takes skill and knowledge to develop a good solid tax efficient retirement plan AND STILL MAINTAIN A HIGH LEVEL OF INCOME..

DRAW A 100K INCOME AND NOT GET YOUR SS TAXED .

that is a work of art.
I agree that it takes a lot of skill and knowledge to handle the tax aspect part of a retirement plan. However, drawing 100K income and not getting SS taxed seems more like a magic act than a work of art to me ;-)

I would love to know a bit of details on this scenario. The only non-taxable 'income' I know is Roth IRA. Non-deductible IRA and annuity bought with after tax funds are taxable on the gains/earnings. The last one that I can think of is the sale of a principal residence.
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Old 04-13-2015, 11:43 AM
 
Location: Texas
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I have always invested by myself, be it rental properties, stock or funds. I hit some lows especially during the Texas real estate bust in the 80's and the tremendous dot-com bust. However we recovered nicely. I rolled everything over into a self directed IRA at retirement. I was not concerned about the tax ramification during my investment years. Our retirement income is $10K per month with SS without using the principal. We pay about 11% federal income tax using standard deduction.
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Old 04-13-2015, 11:56 AM
 
Location: On the road
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Quote:
Originally Posted by mathjak107 View Post
most folks who do it themselves only do well during the accumulation stage . then tax wise they give more back than they should in the 2nd half of the game.
As someone who's living expenses in retirement are under 60k I don't think there is some huge jump in knowledge required to be tax efficient in distribution phase, it just takes knowledge and acting on that knowledge, same as in accumulation.
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Old 04-13-2015, 12:12 PM
 
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oh that is where the mistakes are made. getting ss taxed because you are just over the thresholds and could have avoided it is a big miscalculation.
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Old 04-13-2015, 12:14 PM
 
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Quote:
Originally Posted by BellaDL View Post
I agree that it takes a lot of skill and knowledge to handle the tax aspect part of a retirement plan. However, drawing 100K income and not getting SS taxed seems more like a magic act than a work of art to me ;-)

I would love to know a bit of details on this scenario. The only non-taxable 'income' I know is Roth IRA. Non-deductible IRA and annuity bought with after tax funds are taxable on the gains/earnings. The last one that I can think of is the sale of a principal residence.
roth income , cash you set a side , capital gains, dividends on equities held in a taxable account and getting zero capital gains taxes on up to 74k in income can all produce 100k plus incomes.
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Old 04-13-2015, 12:46 PM
 
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Not paying taxes now sounds great and in fact I have almost entirely avoided taxes for my first 4 years of retirement. That will end with MRDs when I pass age 70 1/2. On the other hand when I worked I lived in an expensive part of the country. I was salaried and paid high taxes. Those 401k and 403b tax deferments have really helped me to build a portfolio and they are still helping. Without them I would have been paying some substantial taxes for this past 4 years.
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Old 04-13-2015, 12:53 PM
 
8,849 posts, read 5,129,939 times
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Quote:
Originally Posted by mathjak107 View Post
oh that is where the mistakes are made. getting ss taxed because you are just over the thresholds and could have avoided it is a big miscalculation.
For those with a lot of assets and income, sure.

Lots of us don't fret about that, as it is not our situation.

If you are expecting nothing but SS benefits and withdrawals from your own savings, and you have a million or less, it's just not that complicated.

About 400k - 600k in tax-deferred can be withdrawn over your lifetime tax-free or close to it. So aim for that. The rest in Roth if possible, and lastly taxable. Keep only your most tax-efficient investments in taxable. There, tax planning is done.
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Old 04-13-2015, 01:14 PM
 
Location: Idaho
1,454 posts, read 1,154,572 times
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Quote:
Originally Posted by mathjak107 View Post
roth income , cash you set a side , capital gains, dividends on equities held in a taxable account and getting zero capital gains taxes on up to 74k in income can all produce 100k plus incomes.
I agree on Roth income. Cash you set a side is certainly not counted as 'income' with regards to filing taxes. A married couple pay no federal income tax on dividends and long term capital gains if their income is <$74,900 (in 2015). However, the SS payment tax threshold for a married couple is only 32K. I still don't see how one can possibly has 100K income and not paying any taxes on their SS benefit unless they use some non-standard tax sheltering schemes (which I have no desires to learn or practice)

Last edited by BellaDL; 04-13-2015 at 01:42 PM..
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