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View Poll Results: What is or will be your ER tax brackets
0% 0 0%
10% 4 6.67%
15% 30 50.00%
25% 15 25.00%
28% 9 15.00%
33% 1 1.67%
35% 1 1.67%
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What will be youir tax bracket in ER?
Old 12-18-2007, 11:39 AM   #1
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What will be youir tax bracket in ER?

Just interested to see what our planned tax brackets are in ER.
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Old 12-18-2007, 12:45 PM   #2
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It all depends on how you have managed your money and how you will manage it in ER. If you are heavily invested in tax deferred accounts, and if your min withdrawls are high, you may find youself in a high bracket. We have very little in tax deferred accounts, mostly in taxable accounts. We are not ERd yet, but I'm currently trying to shape our investments so that the overall tax bite is 10%. Investing in tax free (incl AMT free) munis and moderate dividend payers in about a 40/60 ratio (muni/stock) we think we can get there.
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Old 12-18-2007, 01:03 PM   #3
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Is, rather than will be. Passed through the 0 and 10% to being comfortably in the 15% (marginal) where I plan to remain even if I have to spend more money. Actual rate is (time out checking spreadsheet through age 90) rate is/will be 6-7% Federal and 2-3% for State (unless I leave this state; then it would be 0%). Anticipate keeping it there through age 114 when the government will make me deplete the T-IRA's.
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Old 12-18-2007, 02:41 PM   #4
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Didn't vote. Too many tax brackets. ER'd 12 years ago and during 6 years we paid no taxes, and during 5 years paid taxes at the 10% rate. This year we may have a small amount taxed at 15%. Next several years will be 15%, then small cola'd pensions kick inat 65...and SS will come into play (still trying to decide 62 or 66). When MRD begins, that will probably bump us up another tax bracket.
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Old 12-18-2007, 05:25 PM   #5
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I'm not sure this question even makes sense. As recently as 10 years ago the bracket rates were 15-28-31-36-39.6. How likely is it that by the time the question applies the brackets we have now will even apply? CG rates follow similar or wilder oscillations over time as may the taxation of Social Security.
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Old 12-18-2007, 06:59 PM   #6
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Quote:
Originally Posted by dbr View Post
I'm not sure this question even makes sense. As recently as 10 years ago the bracket rates were 15-28-31-36-39.6. How likely is it that by the time the question applies the brackets we have now will even apply? CG rates follow similar or wilder oscillations over time as may the taxation of Social Security.
Sure the brackets will change, but the question is really a way of seeing where we would put ourselves in the socio-economic firmament when we retire. Its interesting to see that 15% is the largest category. I think that
pours some cold water on the retirement specialists who say you need 80% of your employed income to retirement.
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Old 12-18-2007, 07:35 PM   #7
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Quote:
Originally Posted by Rambler View Post
It all depends on how you have managed your money and how you will manage it in ER. If you are heavily invested in tax deferred accounts, and if your min withdrawls are high, you may find youself in a high bracket. We have very little in tax deferred accounts, mostly in taxable accounts. We are not ERd yet, but I'm currently trying to shape our investments so that the overall tax bite is 10%. Investing in tax free (incl AMT free) munis and moderate dividend payers in about a 40/60 ratio (muni/stock) we think we can get there.
In general it doesn't make sense to invest in Munis unless you are in at least the 25% bracket. You will end up with more money buying taxable bonds and paying the tax.
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Old 12-18-2007, 10:01 PM   #8
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This year is 25% fed., plus 3% state. Next year will be 15% fed., but the 3% state will only be on investment income....my pension is free of state tax! YEA!!!
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