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Re: retirement [Re: Sniper] #3082192
10/01/22 11:53 AM
10/01/22 11:53 AM
Joined: Jan 2003
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Minnesota
Hemi_Joel Offline
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Originally Posted by Sniper
Originally Posted by cudaman1969
Originally Posted by 19swinger70
The government wants you to die before you collect. Collect when you can.

I would like to see the figures on how many pass at 65-70-75. I have quite a few friends that didn’t make 65 let alone 75, all that money put in and none taken out, and these are boomers, the ones who really filled up the cooky jars but it’s going broke?!


There is no cookie jar, there never has been. You were paying out the retirement benefits of the people who were retired while you were paying in. The excess, if any, got spent. Now you get to live on what the workers of today are putting in. Its a pyramid scheme, at best.

You would have been better off if that money got put into an investment account.




I came to that realization over 40 years ago. That's why I have never even thought about social security. I figured that the likelihood of it even existing by the time I retire was slim. But it is still here.
With the amount they are paying, and the high taxes here in Minnesota, it would take three or four months of social security checks just to pay the annual property taxes on my home. I can't afford to live on social security, that's for sure, so I'll keep working. Good thing I enjoy what I do!


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WM21J8A
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Re: retirement [Re: Mastershake340] #3082194
10/01/22 11:55 AM
10/01/22 11:55 AM
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central il.
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second 70 Offline
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https://taxfoundation.org/2022-tax-brackets/
Originally Posted by Mastershake340
Originally Posted by BDW
Originally Posted by Mastershake340
But I don’t think I will do that now.
I have a lot of capital gains ( or I did, I think much of it disappeared this month whiney), and if my income as a single person is below 40K, I can sell off those investments and owe 0 capital gains tax. If I make $40,001 or more I’d owe 15%.
I also might be ahead if I convert my IRAs to Roth at a time I am keeping my income low.


In your scenario, you'd only owe taxes on $1, 15 cents, not the entire $40k
And if you die early, you'll be able to help Uncle Sam..............

I’m talking about the capital gains. If a single person earns under 40,000 and sells appreciated assets their capital gains tax rate on the sales is 0. Over $40,000 income it’s 15% though at some point maybe $250,000 it is even higher. That doesn’t mean their income tax is 0, it means their taxes on capital gains is 0.
Ordinary income tax rates and capital gains tax rates are two different things. From what I can tell I could have $1M in capital gains from selling stocks and if I had under $40,000 in income, be it from working, dividends, 401K distributions, social security etc, I’d owe no capital capital gains, at least to the IRS. States taxes on it might vary.
Under $40,000 income is the magic number for those under 65 getting cheap Obama care insurance too I believe.


No such thing as tax free capitol gains on investment income. People get tricked into thinking they don't pay taxes on capitol gains under $40K but you do because it's part of your income but since it's in a 12% tax bracket you don't have to file under capital gains tax because it's under 15% and not a benefit.. Once you get over $41775 the tax bracket is 22% so you file capital gains to save 7%.

You can avoid a capitol gain on your primary home up to $250K if single or $500K if married as long as you lived there for at least 2 of the 5 previous years. You can only use this every 2 years. Or you can invest the entire amount into a new primary residence and avoid any gain.

The 2022 bracket is raised to $41,775 Look at your tax return Here's an example, wages $41,775 cap gain $15,000 total income $56,775 minus standard deduction $12950 = $43825. So yes you will pay 12% tax on any amount of gain under the $41,766 and 15% on the gain over $40K.




https://taxfoundation.org/2022-tax-brackets/


Last edited by second 70; 10/01/22 03:01 PM.
Re: retirement [Re: second 70] #3082204
10/01/22 12:21 PM
10/01/22 12:21 PM
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PA.
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If you enjoy what you are doing keep doing it many guys go a whole lifetime without actually doing physical work so their body isn’t getting beat up. If guys without hobbies or something to do retire they usually don’t last long just sitting around.


1970 Duster
Edelbrock headed 408
5.984@112.52
422 Indy headed small block
5.982@112.56 mph
9.42@138.27

Livin and lovin life one day at a time




Re: retirement [Re: pittsburghracer] #3082213
10/01/22 12:46 PM
10/01/22 12:46 PM
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fredericksburg,va
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Originally Posted by pittsburghracer


If you enjoy what you are doing keep doing it many guys go a whole lifetime without actually doing physical work so their body isn’t getting beat up. If guys without hobbies or something to do retire they usually don’t last long just sitting around.

Yes they end up dying from all the choirs the wife finds you to do. 4-5 hours of [censored]!ng was better than 18 hours of it. Some then welcome the eternal retirement.

Re: retirement [Re: cudaman1969] #3082235
10/01/22 02:06 PM
10/01/22 02:06 PM
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Well admit it if you own a car lot or something like that you aren’t really working. Heck you could do work like that till the day you die.


1970 Duster
Edelbrock headed 408
5.984@112.52
422 Indy headed small block
5.982@112.56 mph
9.42@138.27

Livin and lovin life one day at a time




Re: retirement [Re: Alaskan_TA] #3082250
10/01/22 02:45 PM
10/01/22 02:45 PM
Joined: Sep 2003
Posts: 19,239
north of coder
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i had to re-tire early because of my MS.
as i started my machinist career with Rockwell International, i get a pension from them. sorta...........
they divested themselves years ago to just the aerospace industry.
after many buyouts and switcheroos, Boeing now has my pension to disperse.
it's a whopping $168.56 per month !!! boogie up laugh2
so it's this, plus a small 401k [that i have been saving for emergency's] and my wife's and my SS, that we get by on.
our house [built in 1872] is paid for, so it's not too bad for us to live on.
we don't go out, or vacation, just [sorta] live from day to day. not counting doctor or hospital visits.
beer

14716361_548715348672723_7638933375216125020_n.jpg
Re: retirement [Re: moparx] #3082282
10/01/22 03:59 PM
10/01/22 03:59 PM
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fredericksburg,va
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Originally Posted by moparx
i had to re-tire early because of my MS.
as i started my machinist career with Rockwell International, i get a pension from them. sorta...........
they divested themselves years ago to just the aerospace industry.
after many buyouts and switcheroos, Boeing now has my pension to disperse.
it's a whopping $168.56 per month !!! boogie up laugh2
so it's this, plus a small 401k [that i have been saving for emergency's] and my wife's and my SS, that we get by on.
our house [built in 1872] is paid for, so it's not too bad for us to live on.
we don't go out, or vacation, just [sorta] live from day to day. not counting doctor or hospital visits.
beer

And only one nipple !

Re: retirement [Re: pittsburghracer] #3082373
10/01/22 10:07 PM
10/01/22 10:07 PM
Joined: May 2003
Posts: 6,545
Downtown Roebuck Ont
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Originally Posted by pittsburghracer
.


That's me on the Freedom 95 Plan. 30 more years to go...

Kevin

Re: retirement [Re: Twostick] #3082400
10/02/22 03:11 AM
10/02/22 03:11 AM
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Posts: 10,486
Freeport IL USA
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If you paid into the SS system, even if you don't need it for retirement, collect it anyway. Unless of course you like to give $2,000, (give or take) every month to the government.

You paid in, receiving that monthly check is the only way you get any return on that investment. If you start collecting at 62, you can collect about 18 years before you loose some of what you possibly could get if you lived longer then 80 years old, assuming the system doesn't go broke before that.

They have some limiting numbers if you are earning over a specific income after you start collecting, but will readjust the numbers for after you reach your full retirement age. After your full retirement age, your income doesn't have any effect on the amount of the SS check. The only issue with collecting the SS check would be a possible income tax burden. You have tax people to figure that out.

Re: retirement [Re: bee1971] #3082411
10/02/22 07:49 AM
10/02/22 07:49 AM
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Greenville, PA
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Originally Posted by bee1971


Also how does your home factor into retirement ?


Large mortgages and retirement don't seem to go hand in hand, so it's a big deal. Say you own a half million dollar home free and clear you've likely made other good financial decisions that allow you to keep it during retirement. twocents

Re: retirement [Re: redraptor] #3082414
10/02/22 08:13 AM
10/02/22 08:13 AM
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PA
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Everyone's situation is a little different. Check out www.opensocialsecurity.com to see the best optimization for your particular situation.

Re: retirement [Re: redraptor] #3082420
10/02/22 09:00 AM
10/02/22 09:00 AM
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Originally Posted by redraptor
Originally Posted by bee1971


Also how does your home factor into retirement ?


Large mortgages and retirement don't seem to go hand in hand, so it's a big deal. Say you own a half million dollar home free and clear you've likely made other good financial decisions that allow you to keep it during retirement. twocents





That was and is one thing that hurts me some. When I got divorced I bought my wife out for her share she never contributed to, bought my 401K out, and my pension. That’s part of life but I also over the years bought two used motorhomes and probably my one stupid move was also putting my heads up car on it. (11,500.00). So I have 1.5 years left of 800.00 a month at 2.74 percent interest. I could have paid it off sooner but at that percentage I wasn’t in a hurry.


1970 Duster
Edelbrock headed 408
5.984@112.52
422 Indy headed small block
5.982@112.56 mph
9.42@138.27

Livin and lovin life one day at a time




Re: retirement [Re: pittsburghracer] #3082436
10/02/22 10:44 AM
10/02/22 10:44 AM
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central il.
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Medicare part B premiums carry income penalty's now thanks to the 2006 tax cut bill. Part D was added later for the AFCA. It's figured on your modified income which includes 100% of SS plus all other income including tax exempt income before any write offs.. By taking SS you may double what you pay.



It's really fair to a working class person who saved for retirement . NOT! Since it charges a single person that makes $170,000 3 times more than someone @ $90K but the same as someone making $500,000. And over $500k only a few dollars more.


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Re: retirement [Re: second 70] #3082459
10/02/22 12:08 PM
10/02/22 12:08 PM
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fredericksburg,va
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You do know why the drop off don’t you? Making $92,000 does NOT put into SS tax as say $300,000 a year does (7.5%), do the math. I’ll say there’s at least 50% or more in that lower bracket (poor people like me)

Last edited by cudaman1969; 10/03/22 11:56 AM.
Re: retirement [Re: bigdad] #3082465
10/02/22 12:31 PM
10/02/22 12:31 PM
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Oregon
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I retired five years ago. I'm planning on taking SS when I hit 67 which will be 6 years from now. I might wait until 70, but at the moment I'm leaning towards taking it at 67.

Re: retirement [Re: cudaman1969] #3082489
10/02/22 02:08 PM
10/02/22 02:08 PM
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central il.
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second 70 Offline
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Originally Posted by cudaman1969
You do know why the drop off don’t you? Making $92,000 does NOT put into SS tax as say $300,000 a year (7.5%), do the math. I’ll say there’s at least 50% or more in that lower bracket (poor people like me)


Medicare is health insurance and has nothing to do with SS earnings. A lot of people don't know that Medicare tax has no income limit like SS does. You pay on every dollar you earn. On top of that an additional .9% penalty is added to incomes over $200K. Also 90% of people pay the minimum medicare but at least make the brackets fair.

The max this year on SS earnings is $147,000. This is because it has a max payout and any income above the $147K is not used for your pension. SS is a retirement program based on your best earnings over 35 years.

Last edited by second 70; 10/02/22 08:43 PM.
Re: retirement [Re: second 70] #3082698
10/03/22 11:50 AM
10/03/22 11:50 AM
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central il.
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Here's a good article on how SS ifs figured. It takes your monthly average over 35 years. Then uses whats called a PIA formula. You get 90% for 1 first $1024,then it drops to 32% after that up to $6172 and any amount over that drops again to only 15%.

If you're @ 1024 =$12,288 a year @ 90% SS is $11,059.20 a year Now add another $5148 which would add $61,776 @ 32% = $19,768.32 So your total income of $74064 would get you a $32056.32 pension. Now lets up it another $74064 to get our income up to $148,128 we only get 15% of that additional income so it adds another $11,109.60 to our pension. So as you can see you get over $11K for first $12K but only around $20K for your next $60K which = $32K for your first $74K but only $11K for the next $74K.


A person making $12,288 has a 90% total return.

One making $74064 is @ 45% total return.

and the highest income of $148,128 only returns 29%.


So even thou people don't believe it lower income people get a much better return on their total SS earnings.


https://socialsecuritygenius.com/how-social-security-is-calculated/

Last edited by second 70; 10/03/22 03:45 PM.
Re: retirement [Re: second 70] #3082948
10/03/22 06:45 PM
10/03/22 06:45 PM
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Oregon
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At age 67 I should get $3200 a month but if I wait until 70 to take SS I'll get around $4000 a month. I haven't decided yet but I'll probably start taking SS at age 67.

Re: retirement [Re: AndyF] #3083336
10/04/22 06:36 PM
10/04/22 06:36 PM
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NEW JERSEY
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of course you get more at 67 than 62, in those 5 years you will be collecting money, but if you die before you collect waiting till 67 for the big payout, your payout just went poof in the air. So the saying goes, do you feel lucky?
I see people retire and die before they get 1 pension check because they wanted to stay the longest to get the big pay check a month..some get a few months and die, some never even make it. Since you paid into SS, then might as well collect it and enjoy it otherwise someone else that retired at 62 will , and is collecting from the pot we all chipped into.

Re: retirement [Re: AARCONV] #3083364
10/04/22 07:36 PM
10/04/22 07:36 PM
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I think you guys should all work and contribute till you are 75. Man you could e rich.


1970 Duster
Edelbrock headed 408
5.984@112.52
422 Indy headed small block
5.982@112.56 mph
9.42@138.27

Livin and lovin life one day at a time




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