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Old 01-22-2017, 10:43 AM
 
Location: Omaha, Nebraska
7,333 posts, read 4,186,118 times
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Quote:
Originally Posted by goodlife36 View Post
Bad news! My net is close to $200 less than I anticipated. Taxes. Saving for a $1000 return is just not feasible.
Don't beat yourself up over it. Just save as much as you can. At least you ARE saving, which is more than many people do.
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Old 01-22-2017, 12:14 PM
 
Location: RVA
2,174 posts, read 1,274,025 times
Reputation: 4497
+1^^^^^. $800 vs $1000 is not bad at all!!
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Old 01-22-2017, 01:20 PM
 
1,838 posts, read 796,794 times
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Quote:
Originally Posted by goodlife36 View Post
Bad news! My net is close to $200 less than I anticipated. Taxes. Saving for a $1000 return is just not feasible. The anticipated cost of my condo is going to eat up a good chunk of my income. I cannot stay in this studio forever. Owning real estate is important to me. I am looking at definitely being able to put away $300. I guess a draw of $500 is more realistic. I know. It is terrible.

I guess it will be okay. I have social security, a pension, a 401k and I plan to continue working (long term temp/ customer service). Working is fine. I need to keep busy and I am not a volunteer type of a person. I anticipate the condo will be paid off. That should help too.

Sure it is, over 22 years you will be surprised, just put in what you can now when you get a raise you can add more, don't be extravagant throughout your life and you can do it. Utilize IRA's they are tax deductible so putting money in means paying the Feds less. Yes you still need to come up with it but a few dollars every week into an IRA adds up just make sure to stay at the allowed amount based on your age. $300 a month is not peanuts and at tax time you might find they took out too much (hopefully for you never worked out for me) and get a refund...put that money in an IRA you lived without it all year don't spend it.
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Old 01-22-2017, 01:37 PM
 
Location: Ypsilanti, MI
2,461 posts, read 3,678,659 times
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Quote:
Originally Posted by MI-Roger View Post
And I read somewhere that profits from the sale of your existing home are not tax free if you use the proceeds to purchase into a CCRC. Still researching, trying to confirm or absolutely deny this statement. .......

I had extra time today so I did some internet searching on this topic. There is an ElderLaw article available on the web which clearly states that home sales proceeds will lose their tax exempt status if used to purchase a CCRC.


However, I could find no other supporting articles or documents. Even the official IRS bulletin giving details regarding the tax exemption on home sale proceeds, and all the ways the sale may not be tax exempt, does not mention a CCRC purchase.


There is one gray area that could be interpreted either way. Only the first $500K of home sale proceeds are considered tax exempt if the home is titled to a married couple. This decreases to $250K if the home is titled to only one person. So a Widow or Widower could easily find themselves owing taxes on part of the sale. In higher priced parts of the country this will impact joint titled properties as well.


Our home is currently titled to my wife's Trust in an effort to equalize our individual wealth for estate planning purposes, meaning the exemption is likely $250K (or maybe $0 because it is owned by a Trust rather than an individual?) Our home's retail value is rapidly approaching the pre-recession highs and the $250K barrier may be breached in 10 years, so we may need to re-title the property before sale to not exceed the current limit. And there may be a minimum time period this title change needs to be in effect for the sale proceeds to be judged tax exempt by the IRS.


More stuff to find out.......
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Old 01-22-2017, 01:49 PM
 
5,685 posts, read 5,951,136 times
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Quote:
Originally Posted by golfingduo View Post
Your initial post.





Just to bring you back on to your original post and the actual point here. You are putting the cart before horse. Yes it is good to anticipate you potential income and needs 22 years from now. Do not despair that you will only earn what you are earning now 15 years from now let alone 20 years or beyond what your need is.

You also have to live for today as well so do not think that with your potential in a 401k and what exactly your pension will then either. Save as much as you feel comfortable with. Live your life today to enjoy today. Don't be a scrooge in life. It is just that life is just too short. Planning for the future should not obsess anyone so you have something for a rainy day is not all there is to life.
I agree. Life is definitely short with no guarantees. I am doing my best. I have to live for today too. Thanks.
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Old 01-22-2017, 01:54 PM
 
5,685 posts, read 5,951,136 times
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You guys are so supportive. Thank you.
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Old 01-22-2017, 01:55 PM
 
5,685 posts, read 5,951,136 times
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Quote:
Originally Posted by Perryinva View Post
+1^^^^^. $800 vs $1000 is not bad at all!!
What do you mean by $800 vs $1000? Is $300 over 22 years a draw of $800 per month?
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