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You have 11 years before you reach 62. You should get rid of all debt as soon as you can. Cut up your credit cards, use a debit card, and spend for just the basics and put as much as you can into your 401K or IRA. Learn to cook and live on a small amount of money and you can continue on that scale when you retire at 62. You will have a decent amount of savings which you shouldn't touch until mandatory withdrawals at age 71. Live on whatever you get from social security and any other pension or annuities you may have. Make sure you have good health insurance. A month in a hospital can wipe out a lifetime of savings and equity.
You have 11 years before you reach 62. You should get rid of all debt as soon as you can. Cut up your credit cards, use a debit card, and spend for just the basics and put as much as you can into your 401K or IRA. Learn to cook and live on a small amount of money and you can continue on that scale when you retire at 62. You will have a decent amount of savings which you shouldn't touch until mandatory withdrawals at age 71. Live on whatever you get from social security and any other pension or annuities you may have. Make sure you have good health insurance. A month in a hospital can wipe out a lifetime of savings and equity.
Thanks the wife is Candian and lives in Toronto, hopefully I will benefit from the healthcare system there
2. I talked to the IRS and have until June 14th to set up a payment plan.
3. I will get the help of a professional, but I will not pay over $2500 for someone to help me fill out a form.
All I have to do is tell the truth and let them take what they want. The firms out here show you how to lie to the IRS and keep more money in your pocket. I will hire someone, that knows what they are doing, but I will pay no more than $2500 their services.
You never got any notices at any address from the IRS which stated the amount you owed for year xxxx which would have been broken down into original amount owed the penalty for non payment and the interest accrued?
You won't get or speak to a qualified attorney and are willing to just let them take what they want? You're not being sent to your room without supper.
1. I have been talking to an tax expert of about 35 years and an X IRS agent. This guy is honest and gave me this advice below
a. My debt should come in under 50k, so he wants to me to try and do a streamline, which will be divided by 72 months. It should come to $700 a month.
2, I spoke to a lawyer and he wanted 7k, (Hung up on him).
3. Spoke to one of those fly by night tax places and they ran the typical hustle
a. Get my bills high enough so I can pay a low monthly fee for $3900 (NOT).
4. Called the IRS tax advocate office and the lady told me what my rights were and helped me out a bit (but she still works for the IRS)
5. Spoke to someone in collections at the IRS (She told me to call back once 15 and 16 taxes hit and work out a plan to pay them back.
a. 433d is a direct deposit form i need to fill out if when they divide my debt by 72 and I pay at our above what that equals
b. 433f is a a form that I have to show my proof of bills if I try and get my payment below what ever that 72 months number came to.. it triggers a process in the computer where I have to prove my debt.
6. I spoke to a Dave Ramsey coach and she wants to attack the debt hard and fast after I save 3 to 9 months of savings.
Last... I Take home after taxes ( not including commissions) is $4500..... I can send the IRS $800 a months and still have $2000 a month to throw at my emergency fund. Then throw it all at the IRS and get this paid off in 3 or 3.5 years. Then start throwing money in the 401k and pay off the student load.
The Dave Ramsey coach said saving in the 401k will cancel itself out with the interest of the loans so pay it off hard and fast then start paying myself. Still not sure about this move here. IRS is 4% and the student laid is 3.337%
Also found a part time gig, that is a residual income opt and pretty slick I might add.
Last edited by Treasurebeachguy; 05-18-2017 at 04:55 PM..
Reason: error
OP, you are smart to start prepping for retirement @ 51. It will be here before you know it.
One of the best things, IMO, is to employ the services of a financial planner.
OP, you are smart to start prepping for retirement @ 51. It will be here before you know it.
One of the best things, IMO, is to employ the services of a financial planner.
Two step process:
1 Budgeting paying off debt coach $750 for 4 sessions bi weekly in which we set goals and go over them with a spread sheet.
2. I have fidelity for my 401k, which I pay for advice.. But yeah It would be good to have a person to make me money while I sleep.
I got set up with a Dave Ramsey coach and took my IRS debt down for 55k to 45k in a few weeks. New goal is to send them $3100 a month until paid off and then pay the same amount for the student loan. I should be done in two years or less for both debts.
Glad to read you have a workable plan in place with enough time to be successful prior to retirement. Sorry that I initially thought your post was only Troll Bait.
I got set up with a Dave Ramsey coach and took my IRS debt down for 55k to 45k in a few weeks. New goal is to send them $3100 a month until paid off and then pay the same amount for the student loan. I should be done in two years or less for both debts.
Oh well i woke up finally at 51 and only have $4200 in my 401k and I owe the IRS over 65k and I owe the student loan people around 45k.
THE GOOD
I make over 120k a year, car is free and my rent is $600 and I have no kids....
My company matches 100% up to 8% with my 401K.
I went with 8% and I only claim one dependent for taxes.
My buddies wife told me i can do it if i get serious, which I have no choice now....
She told me to send my performance bonuses checks straight to the IRS so i don't even see them.
Is there any other advice folks can give me? other than I am a total fool for waiting so long. (:
I did not read all the replies.
I assume you have a spending problem.
Make up a budget. Budget debt repayment and retirement savings FIRST. Then your fixed expenses - rent, insurance etc. then some spending money. If you do not have an emergency fund budget that also.
Probably use cash for all purchases. If you use CC pay off each month.
Max out your 401k.
Use a ROTH IRA if you can.
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