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Re: "Foolish" Advice
Old 12-14-2004, 03:07 AM   #21
Recycles dryer sheets
Join Date: Oct 2004
Posts: 62
Re: "Foolish" Advice

My wife and I are retiring on 100% of our income, our NET income that is. While working we paid SS Tax, Medicare Tax, a mortgage with tons of extra principal, and we saved like crazy for retirement. We needed sufficient gross income to cover those expenses and that put us in the 33% tax bracket. This left us with about $50k per year in NET income for normal expenses.

After retirement, we will be spending the same NET money even accounting for health insurance premiums, but our gross income needed to sustain that is much much lower. Our tax burden drops by 90%, and we fall into the 15% tax bracket.

I had rather be a slave of the meanest landless man on earth than be king in Hades -- Achilles
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