Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 06-17-2017, 05:35 AM   #61
Thinks s/he gets paid by the post
Koolau's Avatar
 
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 2,904
Quote:
Originally Posted by Texas Proud View Post

BTW, what you mention is actually more likely to happen after one spouse dies... the surviving spouse is now considered single and the tax brackets are reduced and the higher Medicare premiums kick in at a lower income... this has hit my oldest sister.... she was surprised that after she lost her husband she lost a check from SS AND she is now paying more income tax AND her Medicare premiums have increased...
Forgive me for hijacking a hijacked thread here: I've thought a lot about this lately (DW and I both turned 70 recently - that gets you thinking about your own mortality.) So here's my hijack: Texas Proud's sister's situation is something I am concerned about (which ever one of us dies first.) That's yet one more reason to "control" the amount of funds subject to RMDs. That's yet one more reason to keep income at a "manageable" level (assets are okay - the enemy is income ) when it comes to gotchas!

So even though we're 70, I'm still looking at converting more to Roths. I haven't figured it out yet, but in that triangulation, I want to include the fact that eventually we will no longer be a couple. One of us will be a single, at least most likely. (I realize we could both die in the same year, otherwise this is at least something to consider.)

Conversion to Roth in our case will not increase our tax rate (it's gonna be 25% unless everyone's rate is reduced.) So it almost doesn't matter when I take the income as long as it doesn't trigger one of the gotchas like increase MC cost or AMT, etc. Once one of us dies, the gotchas come sooner and more "evil" since it costs almost as much for a single to live as a couple - yet suddenly tax tables change, MC gotcha changes, etc., AND in our case pension drops from 100% to 25% if I go first. Heh, heh, that might actually help DW avoid the gotchas, but doesn't exactly help pay the HOA dues.

Well, as mentioned more than once, I'm thinking on all this and hope to decide what to do as soon as I get any indication of what tax changes might be coming.

Now returning you to our hijacked thread as YMMV.
__________________

__________________
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
Koolau is online now   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-17-2017, 05:41 AM   #62
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 40,895
Koolau, your hijack deserves its own thread as it is definitely a topic worth discussing. How about clicking that little red and white "report post" triangle and asking those nice mods if they will move it to a new thread for you?
__________________

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 06-17-2017, 07:37 AM   #63
Recycles dryer sheets
Pilot2013's Avatar
 
Join Date: Mar 2015
Location: Greenville
Posts: 357
Quote:
Originally Posted by Bestwifeever View Post
You should live longer than we will.
Not necessarily!
__________________
Pilot2013 is offline   Reply With Quote
Old 06-17-2017, 07:38 AM   #64
Recycles dryer sheets
Pilot2013's Avatar
 
Join Date: Mar 2015
Location: Greenville
Posts: 357
Quote:
Originally Posted by MissMolly View Post
Then you can't do it. For those born after Jan 1, 1954, whenever you file, you are "deemed' to be filing for all amounts you are eligible for and will be awarded the highest amount available to you. Which means you stop accruing credits.
Thanks. That's what I wondered.
__________________
Pilot2013 is offline   Reply With Quote
Old 06-17-2017, 05:50 PM   #65
Thinks s/he gets paid by the post
 
Join Date: Oct 2006
Posts: 3,731
Quote:
Originally Posted by Koolau View Post
Forgive me for hijacking a hijacked thread here: Once one of us dies, the gotchas come sooner and more "evil" since it costs almost as much for a single to live as a couple - yet suddenly tax tables change, MC gotcha changes, etc., AND in our case pension drops from 100% to 25% if I go first. Heh, heh, that might actually help DW avoid the gotchas, but doesn't exactly help pay the HOA dues.
I agree that topic is worth its own thread.

I'll mention that I started a thread with a poll regarding the bold some time ago. I'm one of the people who voted "it takes about 2/3 as much to support the survivor as the couple".
__________________
Independent is offline   Reply With Quote
Old 06-17-2017, 06:30 PM   #66
Recycles dryer sheets
racy's Avatar
 
Join Date: May 2007
Posts: 452
Quote:
Originally Posted by brucethebroker View Post
How about "was planning on taking SS at age 70, but died at 69, and with my dying breath said "could have used the extra cash those last 7 years..."
If one needs the money (i.e. the "utility" as mentioned), then take it.
__________________
The Big Lebowski: Are you employed, sir?
The Dude: Employed?
racy is offline   Reply With Quote
Old 06-18-2017, 03:45 AM   #67
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,132
Quote:
Originally Posted by Curmudgeon View Post
Show me an investment that is guaranteed to earn 8% return, over and above inflation, with no risk of principal loss or dips and I'll consider collecting at 62.
ss is not an 8% return . it is only an 8% growth rate .your actual return would be less the checks you are giving up , spousal benefits you are not getting and increases in medicare because you are not covered by hold harmless .

you also have to figure in the loss of gains on any extra money spent down delaying .

in short to see your first penny of roi takes 22-24 years comparing it to a balanced fund being spent down .



__________________
mathjak107 is offline   Reply With Quote
Old 06-18-2017, 03:53 AM   #68
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,132
Quote:
Originally Posted by brucethebroker View Post
How about "was planning on taking SS at age 70, but died at 69, and with my dying breath said "could have used the extra cash those last 7 years..."
it certainly would be poor planning if you did not take the full draw amount including what ss would give you down the road ,day 1 .

it makes little sense waiting until 70 to take a raise .

most who delay just lay the extra money out that they will get from ss and once ss kicks in at 70 their draw falls off a cliff as a 69% bigger check takes the strain off of withdrawals .

if you don't have the assets to delay safely then you can't really afford to have a choice of delaying in my opinion .

delaying is only for those who have the choice without depriving themselves of the income they will eventually see .

you should be drawing your full amount day 1 of retirement . all that should change at 70 is the ratio of what makes up your income not the amount .
__________________
mathjak107 is offline   Reply With Quote
Old 06-18-2017, 04:40 AM   #69
Thinks s/he gets paid by the post
Koolau's Avatar
 
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 2,904
Quote:
Originally Posted by REWahoo View Post
Koolau, your hijack deserves its own thread as it is definitely a topic worth discussing. How about clicking that little red and white "report post" triangle and asking those nice mods if they will move it to a new thread for you?
No, I think I'm done hijacking. Agree the mods are nice, but I think I'll let someone else take the lead now. Aloha
__________________

__________________
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
Koolau is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
GE corporate audit staff? almorhf Young Dreamers 3 04-21-2014 06:12 AM
GE corporate audit staff? TheGeneral Young Dreamers 44 04-21-2014 06:07 AM
Did your staff make you feel guilty? Nuiloa Other topics 22 01-13-2012 04:12 PM
The staff of life calmloki Other topics 40 07-13-2010 09:30 AM

 

 
All times are GMT -6. The time now is 11:32 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.