|
|
11-11-2015, 05:24 AM
|
#81
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2011
Posts: 8,409
|
Quote:
Originally Posted by eta2020
They already have and High income non LBYMs pay for it.
Because if you earn max taxable SS income from 25 to 55 or from 25 to 67 you will get about same SS benefit.
So non LBYMs work extra 12 years and pay into SS, but he/she will not get anything extra in terms of benefits.
55 is nice age to say so long to work IMO to squeeze most out of SS benefit and pump least into it. (For high earners)
|
Nice observation! Sort of a "Freakonomics" analysis!
Quote:
Originally Posted by CRLLS
I am very disappointed with AARP on their position. .
|
Disappointed, but not surprised.
__________________
Living well is the best revenge!
Retired @ 52 in 2005
|
|
|
|
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!
|
11-11-2015, 05:37 AM
|
#82
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
|
A true retirement saving system would result in a retiree with 40 years of work getting twice as much as a retiree who worked only 20 years. SS does not do that.
I have seen systems in other countries where they separate out the welfare and the retirement parts. For the welfare part, everybody has to contribute, and as there's no cap on that the well-paid worker pays more without getting a direct benefit, just like other taxes. But in return, his own retirement portion is really his, and the longer he works the more he has. He will never complain about getting cut or has to "share". It is also tied directly to the investment markets, so that when the economy is down nobody gets a guaranteed benefit. That system also avoids the silly clauses like our SS has, that one needs an optimizer program to figure out how to file for benefits. File and suspend, spousal, survivor benefits. Arghh!
At this point, I do not see how our SS can be changed. We are stuck.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
|
|
|
11-11-2015, 05:44 AM
|
#83
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2011
Posts: 8,409
|
Quote:
Originally Posted by NW-Bound
At this point, I do not see how our SS can be changed. We are stuck.
|
We might be 'stuck' as you put it, but in this case, I don't see how anyone on this forum would be better off if anything changed.
"Change is not good" in this instance.
__________________
Living well is the best revenge!
Retired @ 52 in 2005
|
|
|
11-11-2015, 05:52 AM
|
#84
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
|
That's why our SS system is stuck. We cannot go back and undo the silly things that were passed into laws in the past. In fact, we keep passing more laws to make it ever more complicated.
So, we are forever running optimizer programs this and that, shifting money around to get ACA subsidy, and playing the shell game with the IRS by moving money around different IRA/401k/Roth/After-tax accounts.
I am sure that if we sit down and explain all the nuances in our financial planning to people in other countries, they will be astounded: "What the hell?".
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
|
|
|
11-11-2015, 07:58 AM
|
#85
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2014
Posts: 7,372
|
Quote:
Originally Posted by Walt34
And while I think it is highly unlikely I also think the worst that will happen for us is a 25% cut. That would be noticed, but it would hardly put us on a cat food budget or anything close to it.
|
Actually, that's what's happening now. As much as 85% of your SS can be taxed if your AGI plus non-taxable interest plus 1/2 your SS benefit exceeds $34K for an individual, $44K if filing jointly. It gets worse since many states base your state income tax on your Federal Adjusted Gross, which already includes SS. Some states allow you to back that out of state taxable income, but some, such as KS, happily tax you on SS, too. (KS will let low-income people exclude SS but that didn't apply to us.)
To answer the OP's question, I took the cynical view that SS would be zero. Then, 18 months ago, the political BS at work became intolerable. I took a look at the numbers again and decided to factor in SS; I was 61 and, while I was aware of the taxation issue (DH is 15 years older), I figured zero was unreasonably pessimistic. I included 100% (planning to wait till age 70) but will be able to manage regardless of what they tax away, between a couple of small pensions (<$20K total, no COLA) and investment income.
|
|
|
11-11-2015, 09:46 AM
|
#86
|
Full time employment: Posting here.
Join Date: Apr 2011
Location: Castro Valley
Posts: 788
|
For planning purposes, I use the full amount expected in 4 years at 62. However, I'm very conservative and I can still sustain my standard of living without SS. If things got tight I have some flexibility to reduce spending.
|
|
|
11-11-2015, 11:17 AM
|
#87
|
Full time employment: Posting here.
Join Date: May 2015
Location: Atlanta suburbs
Posts: 633
|
I plan on taking SS at age 70, expect no reductions for myself, and it's part of my planning. If Congress actually passes a law making changes to SS and it is signed by the president, the time during that law changing process would be the time for thinking about alternatives, because that's when it will be clearer as to who is affected and what is the extent of the change.
I haven't heard of any bills for SS changes on the floor of the House or Senate. Let me know if I am wrong. and nothing on SS is going to happen in 2016, an election year.
|
|
|
11-11-2015, 11:29 AM
|
#88
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
|
Quote:
Originally Posted by marko
The means testing you mention is not about making a dent in the situation; it is about feeling good about making those who saved, did without and LYBM end up like everyone else who didn't. In fairness, of course, y'know.
|
Won't argue that point, but some, for instance Frank Langone of Home Depot fame, has suggested that he doesn't need the money, and donates it to charity. Doubtful he retired by LBYM...
__________________
Have Funds, Will Retire
...not doing anything of true substance...
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|