Retirement??

[wordsmith680]

IDK but I think it would be challenging to find two employers who would coordinate schedules, then with that limited time together, is that a good family environment? We have done that years ago for a short time and its tough on a marriage / family. The thread topic is retirement, do you think that will be in realm of possibility for someone starting out like that?

[mainegrl2011]

Originally Posted by jdhpa

The money paid into Social Security and Medicare exceeded the money paid out for many years. The government bought government bonds with the excess (safe investment and has some return). So there actually is quite a bit, technically, saved up to pay for these programs. However, the amount annually paid out now exceeds the amount paid in, so the savings over all of those years are being used to make up the difference.

However, this is a bit of a shell game. When the government used the excess payments into the system to buy bonds for all of those years, the money it collected on the bonds was spent on other things. So the money has been spent already, even though technically it was invested, not spent.

So that's the reason you keep hearing about the need to contain Social Security and Medicare costs now, even though technically they have a lot saved up. The money 'saved' was actually spent already, a long time ago, the government is filling the gap by borrowing money now, and the costs of the programs are soaring.

Yes. I don't think I really wanted an explanation. Just trying to make a point. Maybe I thought readers would read between the lines. I'm tired of hearing that people who have paid in for as many as 40 years and are nearing retirement age are in danger of losing benefits because of how this has been handled. You've said it three times. They spent the money already...spent on other things. It was supposed to support the continuation and future of social security...technically it was invested? call it what you will...they invested it, they spent it and now they are having to borrow...should everyone who has paid in for years and years and years and years just say, it's ok....we didn't mind you spending the money on other things. We didn't need it anyway.

[maine4.us]

Maine taxes all but the first 10K of your retirement, unless it is military disability. That means if you have a good retirement, you will also pay taxes on your social security. That's a fact that I will face when I file my 2012 tax return. Thank the governor for getting the exemption raised to 10K, it used to be about 6K. I have federal income tax taken out of my retirement and SS, but Maine is up to me, as my sources will not withhold Maine taxes. The only way not to pay taxes is to have a combined retirement income so small that you are not taxed at all. Other than that situation, get ready to write a check to Augusta. That's a fact.

[Submariner]

Check my math on this, in case I messed it up.

For the 2012 tax-filing year, the standard deduction for married couples filing a joint return is $11,900. The personal exemption amount is $3,800. For a couple that would be $7,600.

For a couple filing a joint return they must deduct $11,900 and exemption $7,600; before any 'taxes' may occur.

[11,900 + 7,600 = $19,500]

Your first $19,500 of taxable income is not taxed.

If your income is less than $19,500; then you entire income is effectively tax-free.

[mainegrl2011]

Originally Posted by Submariner

Check my math on this, in case I messed it up.

For the 2012 tax-filing year, the standard deduction for married couples filing a joint return is $11,900. The personal exemption amount is $3,800. For a couple that would be $7,600.

For a couple filing a joint return they must deduct $11,900 and exemption $7,600; before any 'taxes' may occur.

[11,900 + 7,600 = $19,500]

Your first $19,500 of taxable income is not taxed.

If your income is less than $19,500; then you entire income is effectively tax-free.

Now now, don't discriminate against single people with your info. just kiddin'; I can look it up myself.

[mainegrl2011]

Originally Posted by wordsmith680

IDK but I think it would be challenging to find two employers who would coordinate schedules, then with that limited time together, is that a good family environment? We have done that years ago for a short time and its tough on a marriage / family. The thread topic is retirement, do you think that will be in realm of possibility for someone starting out like that?

Well...maybe if they are working their way through college or vocational school and it's a temporary situation. One of the posters on CD was working two jobs and ran into the scheduling problems between the two employers. It worked for her for awhile. She recently posted that she has a new full-time job although a long drive for now. From what I can tell, she is single and her "children" are her two dogs.

When my grandfather passed on, my grandmother came to live with our family. I guess our house was her retirement home. We loved having her.

[Submariner]

For the 2012 tax-filing year:
the standard deduction for single is $5,950 for 2012.
the standard deduction for HOH is $8,700 for 2012.

The personal exemption amount is $3,800. For a HOH 'plus one' that would be $7,600 [or more depending on how many dependents they have].

For a single person they must deduct $5,950 and exempt $3,800; before any 'taxes' may occur. [$5,900 + $3,800 = $9,700] Their first $9,700 of taxable income is not taxed.

For a HOH they must deduct $8,700 and exempt $7,600 [or more depending on how many dependents they have]; before any taxes may occur. [$8,700 + $7,600 = $16,300] Their first $16,300 of taxable income is not taxed.