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Re: Taxable Income in Retirement?
Old 07-09-2006, 05:20 AM   #21
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Re: Taxable Income in Retirement?

So not only can two live as cheaply as one, their tax bracket is lower!*

Now when people mention their tax rate is that before or after tax deductible savings (401k/403b) and deductions?

I get almost all of my income the hard way so my tax rate either 12 or 18% of income.* Since my assets are about 80% in an IRA, I won't get much relief during retirement.
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Re: Taxable Income in Retirement?
Old 07-09-2006, 10:02 AM   #22
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Re: Taxable Income in Retirement?

Quote:
Originally Posted by blanston
It appears the average income in ER for many on this* board is around 40 to 60 thousand. I think the 3% tax liability figure is a little low for most.* Especially if income exceeds 60k.
As others have pointed out, you should make your own assumptions based on your own expected income level and sources.* I've built the tax tables into my projections so my tax assumptions change based on changes in other assumptions.* Based on the current plan my tax rate would be about 8% assuming retirement in 2009.* If I were to quit next year* my assumed tax rate would be ~6% and if I wait until 2011* * it would move up to ~10%.*
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Re: Taxable Income in Retirement?
Old 07-09-2006, 10:33 AM   #23
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Re: Taxable Income in Retirement?

Quote:
Originally Posted by vagabond
Ain't complaining too much Mr. Fuzzy Wabbit, except that the deck is stacked somewhat against us lonely singles.
You just need to find another lonely single.

You get to sell one house for cash, bonus baby if it was paid off, and combine your assets to knock out a baby or two.

Then just one of you has to work just barely enough to get health care and let you fund your roths and other vehicles. Heck, you can even switch off! When my wife stops loving her job so much that she cant quit...maybe 5 or 10 years from now, maybe I'll take a part timer with benefits for a while.

Oh ick, that felt wrong to even type that!
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Re: Taxable Income in Retirement?
Old 07-09-2006, 03:19 PM   #24
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Re: Taxable Income in Retirement?

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Originally Posted by Cute Fuzzy Bunny
Then just one of you has to work just barely enough to get health care and let you fund your roths and other vehicles.* Heck, you can even switch off!* When my wife stops loving her job so much that she cant quit...maybe 5 or 10 years from now, maybe I'll take a part timer with benefits for a while.

Oh ick, that felt wrong to even type that!
You've hit on my plan but in reverse. DW is "between jobs" since we just moved to be closer to mine. She could be reemployed in a matter of a few days (with benefits). She's dragging it out. I keep telling her she's delaying "our" retirement an extra year by taking hers early.
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Re: Taxable Income in Retirement?
Old 07-09-2006, 08:03 PM   #25
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Re: Taxable Income in Retirement?

Quote:
you should try throwing in a couple of kids.
You might want to rephrase that comment. Child Protective Services may be listening.
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Re: Taxable Income in Retirement?
Old 07-09-2006, 10:14 PM   #26
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Re: Taxable Income in Retirement?

Better than throwing up a couple of kids.
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Re: Taxable Income in Retirement?
Old 07-18-2006, 04:43 PM   #27
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Re: Taxable Income in Retirement?

The lower tax rates are only on stock dividends.
Bond dividends are still taxed at the same rate as Interest.

Am I right?
ww
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Re: Taxable Income in Retirement?
Old 07-18-2006, 05:11 PM   #28
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Re: Taxable Income in Retirement?

Quote:
Originally Posted by Walkinwood
The lower tax rates are only on stock dividends.
Bond dividends are still taxed at the same rate as Interest.

Am I right?
ww
Yes
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Re: Taxable Income in Retirement?
Old 07-21-2006, 01:02 PM   #29
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Re: Taxable Income in Retirement?

Quote:
Originally Posted by 2B
So not only can two live as cheaply as one, their tax bracket is lower!*
Two can cost as much as four depending on who you marry!
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Re: Taxable Income in Retirement?
Old 07-22-2006, 07:40 AM   #30
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Re: Taxable Income in Retirement?

Quote:
Originally Posted by madeit!
Two can cost as much as four depending on who you marry!
That's where the interview process should carefully evaluate the candidate. Plus, I know if I'm ever in the market again there would definitely be a solid prenup "to protect my children's inheritance."
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Re: Taxable Income in Retirement?
Old 07-22-2006, 02:50 PM   #31
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Re: Taxable Income in Retirement?

An estimate of how family size and type affects budget has been developed by the US Bureau of Labor Statistics. You can use the table below to consider cost of living changes along a typical family life cycle. The normalization basis for this table is a family of four (two adults and two children). All other budget entries represent the normalized funding required for the specified family to maintain an equivalent lifestyle to the base family. For a single young person prior to marriage the cost of living is 36% that of our normalized family of four. The cost of living for a married couple increases to 60% of the normalization base. When one child is added, the family budget is at 82% of the base. A second child puts the family at base budget level. A third child places the couple at 111.6% the cost of a family of four. For cases not shown in the table, the equivalence family budget can be roughly approximated using the expression

E = ((A+pK)^F)/2.751

where A is the number of adults in the family, K is the number of children, p=0.92 and F=0.75.

Equivalence Scale used by US Bureau of Labor Statistics. The equivalence scale is used to adjust financial thresholds for differences in household size and composition.
======================================
FAMILY TYPE . . . . . . BLS NORMALIZED FAMILY BUDGET
Single Adult - - - - - - - - - - - - 0.360
Two Adults- - - - - - - - - - - - - 0.600
Two Adults, One Child- - - - - 1.000
Two Adults, Three Children- - 1.116
One Adult, One Child- - - - - - 0.570
One Adult, Two Children- - - - 0.760


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