Quote:
Originally Posted by Kim G
As we reached Medicare age we have been inundated with higher Medicare premiums because of our higher income, and are going to be forced with more taxes when we reach minimum distribution. We already paid higher social security taxes our entire working lives. Meanwhile I have several relatives who have saved little to nothing and plan to live off system. They bought boats, trailers, etc. while we saved, saved, saved. If I could live my life over, I’d work and save less which explains why socialism will never work.
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If you think about how your SS benefit is calculated, you may recoup some of the SS tax as you begin distributions.
You didn't mention anything about having children. If you do and can afford to live without one of your investments, you could consider 'gifting' it to family. Check the laws in the state where you file your taxes to see if this is worth while. The Fed will get theirs no matter which state you live in but, if you pay state tax, it could make it a lot less worth while.
I'm not completely there yet and Lord knows things can change but...I may be able to live without my 401k or IRA (not both) so I will gift up to 10k/yr to my daughter who, because it's a 'gift' doesn't have to pay tax on it. Higher amounts start yielding tax paymants. If I'm forced into minimum distribution territory, I'll give her a little each year so she's not whacked with a inheritance tax when I leave this place.
It's important you consult a tax adviser, at minimum, and a financial adviser with a tax prep cert at best. I did and everything above is just one person's education and information gathering exercise to deal with the tax man.
I plan to live off the system. The system I created by going to work everyday, paying taxes and saving my money. I retired at 57. I will be able to sustain my way of life until I'm 72, all on after-tax dollars. My only enemy there is inflation and the value of ou currency. If the dollar falls through the floor, I'm obviously in trouble. The rest of my portfolio is as susceptible to market conditions as anyone else - even those that are 80% bonds or more. I still have some risk in my portfolio, running about a 60/40 mix on the risk side. As mentioned above, I have some time left to recoup most temporary market hits.
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