View Poll Results: What is or will be your ER tax brackets
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0%
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0 |
0% |
10%
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4 |
6.67% |
15%
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30 |
50.00% |
25%
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15 |
25.00% |
28%
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9 |
15.00% |
33%
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1 |
1.67% |
35%
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1 |
1.67% |
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What will be youir tax bracket in ER?
12-18-2007, 11:39 AM
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#1
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,867
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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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12-18-2007, 12:45 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Jul 2007
Posts: 2,487
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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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12-18-2007, 01:03 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,635
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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.
__________________
Vietnam Veteran, CW4 USA, Retired 1979
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12-18-2007, 02:41 PM
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#4
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Recycles dryer sheets
Join Date: Nov 2007
Posts: 202
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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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12-18-2007, 05:25 PM
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#5
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Dryer sheet aficionado
Join Date: Jul 2005
Posts: 36
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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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12-18-2007, 06:59 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,867
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Quote:
Originally Posted by dbr
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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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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12-18-2007, 07:35 PM
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#7
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Full time employment: Posting here.
Join Date: Jan 2006
Posts: 899
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Quote:
Originally Posted by Rambler
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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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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12-18-2007, 10:01 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Oct 2006
Location: North-Central Illinois
Posts: 3,228
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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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