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Old 03-09-2016, 04:57 PM   #21
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It sounds like it is an employer sponsored defined contribution plan where the employer matches contributions and pays 5% interest on the balance? If so, that is the most generous DC scheme that I have ever heard of, hence my skepticism.

Also, I'm sure you pay more than $100 in fees for the entire $890,000 invested as that would be an exceedingly low expense ratio.... perhaps you are referring to account level fees exclusive of any underlying expenses in the investments.

in terms of your last question, I guess it depends but not bad to just round up.

Was the 110k gross pay or take home pay? and was the 36% of take home or gross pay?
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Old 03-09-2016, 05:22 PM   #22
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A couple of tax considerations although I'm not an expert: first, since you'd be receiving SS before your full retirement age, your SS will be reduced 50% for any earnings over a given threshold (was $14k annually in 2009 in article I read). So, if you make $30k in a year and the threshold is $16k, your SS will be reduced by 50% of $14k, or $7,000 a year. Even if that doesn't apply to you, up to 85% of your SS can be taxable if your joint income exceeds about $45k/year.
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Old 03-09-2016, 05:24 PM   #23
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It was defined at one time and 3 times we were offered to convert to cash with guarantee. After the market came all the way back we cashed in on that portion. The fees are true. The income figures are base salary gross.
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Old 03-09-2016, 06:23 PM   #24
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So if your gross was $110k than I'm guessing that your take-home (after taxes but before any savings) was ~$80 and if you saved 36% of that then you spent about $52k? Seems close to the $54k you plan to spend.

So you're claiming that your ER for your taxable retirement investments and tax-deferred retirement account is ~ 1 basis point? $960,000* 0.01% = $96 ~ $100. Please elaborate as many of us pay 10 to 20 times that or more and 1 bp is unheard of so I suspect that you are missing something.
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Old 03-09-2016, 11:26 PM   #25
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A couple of tax considerations although I'm not an expert: first, since you'd be receiving SS before your full retirement age, your SS will be reduced 50% for any earnings over a given threshold (was $14k annually in 2009 in article I read). So, if you make $30k in a year and the threshold is $16k, your SS will be reduced by 50% of $14k, or $7,000 a year. Even if that doesn't apply to you, up to 85% of your SS can be taxable if your joint income exceeds about $45k/year.
+1 Good point, this is a disincentive to w*rk too much while collecting SS before FRA. Thanks for the reminder!

Seems wise to defer SS to at least FRA or beyond if you really want to w*rk!
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Old 03-10-2016, 05:38 AM   #26
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I did not itemize but only calculated $15720 SS if draw is early. Thanks for all the input and take it easy on us-were new here,
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Old 03-10-2016, 07:51 AM   #27
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RHONDAVE -
Your tax estimates are too high.

SS payments are not fully taxed. Only part of that income is taxed - based on your total taxable income.

If you're basing your tax load on your gross vs net you need to look at taxes you do NOT owe when you stop working. SS and Medicare. That's a big chunk of the payroll deductions.

As Athena mentioned - earned income, while collecting SS early (pre full retirement age) is something you need to be careful with. DH was called back to work after his replacement quit with no notice. (He was an architect - project was in the last 6 months - they desperately needed someone to close out the project who knew the details.) We got burned - SS clawed back their payments and we had some months of no checks because he earned enough to impact the SS payments. The income limit is around $15k. Anything earned over $15k will reduce your SS.
Will I Get Penalized for Working While Collecting Social Security Retirement? | Nolo.com

All of this is good news for you. Since you're overestimating tax payments you can either work less or withdraw less. Good options to have.
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Old 03-10-2016, 08:20 AM   #28
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RHONDAVE -
Your tax estimates are too high............
No need to guess - run your numbers through Taxcaster and get a real answer.
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Old 03-10-2016, 09:19 AM   #29
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.... Thanks for all the input and take it easy on us-were new here,
You'll find a lot of tough love here... get used to it.
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Old 03-14-2016, 04:13 PM   #30
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Welcome. I'm in a similar situation as you, except I'm a couple of years behind you and already live in the Phoenix area. You should check out Zillow or similar websites to see what kind of house you can get here for $200k. I love living here, but I do like to get out of the heat for part of the summer. I play golf in 105 degree weather, and much prefer that to 90 degrees with humidity. 115 degrees is brutal though, even with 8% humidity.
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Old 07-09-2016, 07:49 AM   #31
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I have spent considerable time the last 4 months getting the right information to post again in reference to our relocation/retirement plan. Where is the best place to post our new numbers in order to get quality feedback? THANKS
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Old 07-09-2016, 07:58 AM   #32
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The FIRE and Money forum is probably what you're looking for FIRE and Money - Early Retirement & Financial Independence Community
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Old 07-09-2016, 08:17 AM   #33
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Would it be appropriate to reference my earlier thread as well? Thanks
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Old 07-09-2016, 08:21 AM   #34
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Would it be appropriate to reference my earlier thread as well? Thanks
Of course
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