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Re: The "Do I Have Enough?" and "Should I Quit Now?" debates
Old 09-05-2006, 09:15 AM   #21
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Re: The "Do I Have Enough?" and "Should I Quit Now?" debates

Quote:
Originally Posted by Tadpole
If you saved and your neighbor of the same age didn't, expect to share.
I fully expect this to happen. I also fully expect that many previous law-abiding citizens will become criminals (tax-evasion) at this time.

Of course, I myself would NEVER break the law.
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Re: The "Do I Have Enough?" and "Should I Quit Now?" debates
Old 09-05-2006, 05:10 PM   #22
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Re: The "Do I Have Enough?" and "Should I Quit Now?" debates

I have always assumed that the introduction of Roths simply provide a temptation to find another way to tax "tax exempt" cash. Plain ol' sales tax won't be enough.
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Re: The "Do I Have Enough?" and "Should I Quit Now?" debates
Old 09-13-2006, 08:56 PM   #23
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Re: The "Do I Have Enough?" and "Should I Quit Now?" debates

> If I run FIRECalc (the most conservative of the calculators I've found), I can withdraw > almost as much as my current "take home" with a 95% success prediction.*

Help me here - I am new here and just started messing with FIRECalc ...

Why are you comparing FIRECalc's SWR against your current "take home" ?
FIRECalc does not back out axes does it ? (It can't really, since it doesn't
ask how much of your investment is iax-advantaged, taxable, etc).
So why would your SWR being equal to "take home" be ok ?

John

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Re: The "Do I Have Enough?" and "Should I Quit Now?" debates
Old 09-14-2006, 09:38 AM   #24
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Re: The "Do I Have Enough?" and "Should I Quit Now?" debates

Just thought I would offer some information on the real amount of SS one can expect to receive. This will not work for everyone and there are some that would say if you are paying taxes on more SS benefits you have enough other income not to worry about it. That said it has been our experience that fully 25% of our SS benefits are returned to the govenment. This is due to MEDICARE costs (just the currently $88.50 (heading for $93.50 each next year)) times 2 paid each month (of course you never see that; they just take it, but, it comes off the gross). Of course you can eliminate that if you dare since it is Part B and optional. Additionally we have paid taxes on 85% of SS last year and expect about the same or a little less this year. So when you say you will be getting X benefit per month just think about actually 3/4 of that number and with the latest on MEDICARE Monthly Deductions maybe less. And remember the base figures for calculating the amount of SS benefits that are taxable IS NOT INDEXED. And even tho you never see the MEDICARE Insurance deductions you will be taxed on them, as applicable, as they are part of your "gross" benefits.*
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Re: The "Do I Have Enough?" and "Should I Quit Now?" debates
Old 09-14-2006, 11:28 AM   #25
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Re: The "Do I Have Enough?" and "Should I Quit Now?" debates

Quote:
Originally Posted by JohnEyles
> If I run FIRECalc (the most conservative of the calculators I've found), I can withdraw > almost as much as my current "take home" with a 95% success prediction.*
Help me here - I am new here and just started messing with FIRECalc ...
Why are you comparing FIRECalc's SWR against your current "take home" ?
FIRECalc does not back out axes does it ?* (It can't really, since it doesn't
ask how much of your investment is iax-advantaged, taxable, etc).
So why would your SWR being equal to "take home" be ok ?
You're right, FIRECalc does not account for taxes. You have to enter your expenses into FIRECalc, and those expenses have to include your estimate of your taxes. Of course in ER those taxes are usually a good bit lower, as the FIRECalc documentation discusses.

You're also right in your SWR comments. Salary, take-home, and other pay-related comparisons to ER are no more relevant than those other still-working deadline-crunched journalists who claim that retirement will require 70-85% of your current salary. (Or at least somewhere between 0-150%.) What counts in ER is your current expenses, not what you used to earn.
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Re: The "Do I Have Enough?" and "Should I Quit Now?" debates
Old 09-14-2006, 11:35 AM   #26
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Re: The "Do I Have Enough?" and "Should I Quit Now?" debates

Quote:
Originally Posted by Old Army Guy
So when you say you will be getting X benefit per month just think about actually 3/4 of that number and with the latest on MEDICARE Monthly Deductions maybe less.
Good point.
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Re: The "Do I Have Enough?" and "Should I Quit Now?" debates
Old 09-14-2006, 06:40 PM   #27
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Re: The "Do I Have Enough?" and "Should I Quit Now?" debates

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Originally Posted by mathjak107
just the opposite seems to be happening.each year the tax brackets are extended upward increasing the 15% and 25% tax brackets higher and higher by about 3,000 bucks.its been doing so for quite a long time now.at this rate you can earn 100,000 bucks or so and still be in the 15 % bracket in a bunch more years
You'll have to go back to the 1980's and thank Reagan for indexing the tax brackets to inflation . . . eliminated "bracket creep" that was a huge problem in the late 70's early 80's.
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Re: The "Do I Have Enough?" and "Should I Quit Now?" debates
Old 09-15-2006, 10:01 AM   #28
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Re: The "Do I Have Enough?" and "Should I Quit Now?" debates

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Originally Posted by 3 Yrs to Go
You'll have to go back to the 1980's and thank Reagan for indexing the tax brackets to inflation . . . eliminated "bracket creep" that was a huge problem in the late 70's early 80's.
well, it was the least he could considering that he also racked up the biggest deficit in history up until then. Of course, that was history....now we have W, who has brought 'guns AND butter' to yet another level

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Re: The "Do I Have Enough?" and "Should I Quit Now?" debates
Old 09-15-2006, 10:20 AM   #29
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Re: The "Do I Have Enough?" and "Should I Quit Now?" debates

If you have a problem with Reagan's indexing of tax brackets to account for inflation, simply calculate your taxes without the indexing and send in the extra money. The tax forms have provisions for sending in extra to apply against the debt.
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Re: The "Do I Have Enough?" and "Should I Quit Now?" debates
Old 09-15-2006, 03:07 PM   #30
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Re: The "Do I Have Enough?" and "Should I Quit Now?" debates

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Originally Posted by youbet
If you have a problem with Reagan's indexing of tax brackets to account for inflation, simply calculate your taxes without the indexing and send in the extra money. The tax forms have provisions for sending in extra to apply against the debt.
my problem is with the deficit spending which causes inflation which necessitates the indexing.

given the deficit spending, I'll take the indexing.

I would be happy to pay more taxes if I could "line-item" them....specify which programs they would apply to. This, to me, would be democracy in action--voting with the pocketbook.
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