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05-16-2015, 08:34 AM
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#121
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Thinks s/he gets paid by the post
Join Date: Aug 2010
Posts: 1,089
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We look at SS as our longevity insurance. Our current plan is to take SS at age 70.
My dad died from lung cancer at age 50 from smoking all his life. Our other 3 parents are still living (90, 87, 80).
If I ran FireCal without SS, I get 100% success rate for 25 years.
Taking SS at 70 for both of us, I get 100% for 35 years.
If we die before taking SS, at least we hope to get to spend most of our money.
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05-16-2015, 09:14 AM
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#122
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Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
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Quote:
Originally Posted by fh2000
If I ran FireCal without SS, I get 100% success rate for 25 years.
Taking SS at 70 for both of us, I get 100% for 35 years.
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What about the success rate for taking SS at 62, 66?
Would 100% for 30 years suffice?
__________________
May we live in peace and harmony and be free from all human sufferings.
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05-16-2015, 09:15 AM
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#123
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
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Quote:
Originally Posted by ejman
Please correct me if I'm wrong but my understanding is that as long as income es below $73,800 for a couple, long term capital gains are taxed at 0%.
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You're sort of right. $73,800 is 2014 taxable income at the top of the 15% tax bracket, after deductions and exemptions.
Assuming MFJ, standard deductions and exemptions under age 65 you could have up to $95,500 of income and still have 0% LTCG rate. That $95,500 would include any LTCG.
2015 top of 15% tax bracket for MFJ...........$74,900
2015 standard deduction for MFJ..................12,600
2015 personal exemptions x 2 ......................8,000
Total income............................................ .$95,500
But be careful, if you go over then the excess is subject to an incremental tax rate of 30%... ouch!
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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05-16-2015, 09:20 AM
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#124
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
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Quote:
Originally Posted by Spanky
...Why play the market game (at a later stage of your life) when you do not have to unless you think it's fun?
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Because i'm an averages player and believe that over a 30-40 year retirement time horizon that the market will not only provide for us but will also optimize our family wealth (and our kids wealth). As an investor, I have the stomach/fortitude for it and we can afford to take the risk.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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05-16-2015, 10:23 AM
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#125
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Full time employment: Posting here.
Join Date: Apr 2015
Posts: 903
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Quote:
Originally Posted by Spanky
Most people, I think, desire guarantees. She seems to a wise person. The market is risky. Why play the market game (at a later stage of your life) when you do not have to unless you think it's fun?
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This is why I work for government even if the same work pays 1.5-3x in private.
Quote:
Originally Posted by Independent
I'll re-word this to "If you assume you'll be forced to take RMDs that you won't spend, then the proceeds are going to go into taxable accounts. In this case, it's better to proactively get money into Roth accounts. This is true even for equal tax brackets."
Correct?
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Yep, pretty much. I think for folks with a sizeable IRA or 401k account and other streams of income (SS, pension, rentals and taxable accounts), it's a fairly valid concern.
I'm treating my 457 and IRAs as part fun money and part long term care insurance (I'm not HSA eligible) so I'd like to keep as much funds in those as possible.
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05-16-2015, 10:36 AM
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#126
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,008
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FRA for me is 66 years 10 months. So by then I'm only 3 years away from 70.
Lots to consider, but I've been leaning towards the "later" camp.
I don't get 8% returns on average in my retirement portfolio now. More like 5%.
Maybe we will start doing Roth conversions someday.
__________________
Retired since summer 1999.
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05-16-2015, 10:52 AM
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#127
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 17,173
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The best decision on when to take SS is the one that lets you sleep at night.
__________________
Comparison is the thief of joy
The worst decisions are usually made in times of anger and impatience.
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05-16-2015, 11:31 AM
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#128
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Recycles dryer sheets
Join Date: Feb 2013
Posts: 377
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Chuckanut - perfect answer!
I will also say longevity depends upon your health - I have diabetes - I'm taking whatever SS I get at 62.
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05-16-2015, 11:40 AM
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#129
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2005
Posts: 6,115
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me too , diabetic as well but so far under control with just a a lot of exercise ( i run 3-1/2 miles non stop every other day ) and strict diet i am on no meds.
the math and longevity just don't work in my favor delaying .
giving up those early checks . giving up my wife's spousal kicker and spending down investments possibly in to a down market my first year all say waiting is a poor choice.
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05-16-2015, 12:12 PM
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#130
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Recycles dryer sheets
Join Date: Feb 2013
Posts: 377
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Mathjak! Good for you! I was a Type 2, turned into a Type 1. Now on a pump and CGM and getting better results than ever.
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05-16-2015, 02:36 PM
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#131
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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Quote:
Originally Posted by mathjak107
me too , diabetic as well but so far under control with just a a lot of exercise ( i run 3-1/2 miles non stop every other day ) and strict diet i am on no meds.
the math and longevity just don't work in my favor delaying .
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The when to take SS choice is some kind of personality test. People decide what is most appealing emotionally, then marshal arguments to support the choice. But did you notice that BB King just died at age 89, good and fat, and a longtime diabetic? His shows over recent years have him sitting quietly on a stool. He surely was not running non-stop any 3.5 miles ever, let alone every other day. So if he lasted until age 89, only god knows how long you might last.
Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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05-16-2015, 02:40 PM
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#132
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2005
Posts: 6,115
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and your point ? he was living on insulin and meds and could barely walk for years . i was taken off everything and need no meds at all and in the best shape of my life . .
he was also way over weight ,i am not .
not sure of your entire comparison or point .
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05-16-2015, 02:53 PM
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#133
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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Quote:
Originally Posted by mathjak107
and your point ? he was living on insulin and meds and could barely walk for years . i was taken off everything and need no meds at all and in the best shape of my life . .
he was also way over weight ,i am not .
not sure of your entire comparison or point .
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You don't realize it, but you have just summarized my point. You said "the math and longevity just don't work in my favor delaying ." From what you have said, you could easily have average or greater life-span.
BB King had diabetes, was not well controlled, yet he lived to age 89. You are concerned that you should take SS early, because you have diabetes that doesn't even require meds, and you run over 10 miles a week, yet you seem to think that your medical condition favors taking SS early. But who knows what you think. Anyway, as the McDonald's ad says, have it your way.
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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05-16-2015, 02:53 PM
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#134
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Full time employment: Posting here.
Join Date: Apr 2015
Posts: 903
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Quote:
Originally Posted by mathjak107
and your point ? he was living on insulin and meds and could barely walk for years . i was taken off everything and need no meds at all and in the best shape of my life . .
he was also way over weight ,i am not .
not sure of your entire comparison or point .
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Maybe his point is your longevity risk might be higher?
I think Chuckanut's answer is the really the right one.
We can all run spreadsheets of various scenarios comparing a bunch of different variables but in the end, this really boils down to an emotional response.
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05-16-2015, 02:58 PM
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#135
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2005
Posts: 6,115
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Quote:
Originally Posted by haha
You don't realize it, but you have just summarized my point. "the math and longevity just don't work in my favor delaying ."
BB King had diabetes, was not well controlled, yet he lived to age 89. You are concerned that you should take SS early, because you have diabetes that doesn't even require meds, and you run over 10 miles a week, yet you seem to think that your medical condition favors taking SS early. But who knows what you think. Anyway, as the McDonald's ad days, have it your way.
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on the other hand eventual complications and diabetes did my mother in at age 55 and my dad at 66 from stroke . .
it is as unpredictable condition as can be. today i have it under control tomorrow it can destroy my internal organs. no one knows with diabetes what is next.
but that isn't why i am taking it early , it just makes better sense as i need to make it to around 84- 85 to just break even and longevity isn't one of my family's strong points . my first cousin died last year.
i have neuropthy in my toes and fingers from it which make them burn. but other than that so far so good but i am a gym rat and have been so for more than 15 years now.
starting to run last year made the biggest difference and since then i am off lipitor , blood pressure a meds nd no diabetes meds . got my fingers crossed things stay this way
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05-16-2015, 03:48 PM
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#136
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Recycles dryer sheets
Join Date: Feb 2013
Posts: 377
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89 and not well controlled is not a happy place.
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05-16-2015, 03:52 PM
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#137
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,202
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Quote:
Originally Posted by LinCella
89 and not well controlled is not a happy place.
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Still need money, right?
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05-16-2015, 07:07 PM
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#138
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Recycles dryer sheets
Join Date: Feb 2013
Posts: 377
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Of curse you still need money, RunningBum. And with Diabetes you need a lot more of it!
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05-16-2015, 07:45 PM
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#139
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2011
Location: NC Triangle
Posts: 5,807
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Quote:
Originally Posted by travelover
Kinda rude, don'tcha think?
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Never mind "rude". It's just not true, and not worth a minute of thought.
__________________
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05-16-2015, 07:51 PM
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#140
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2013
Location: Limerick
Posts: 5,638
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Quote:
Originally Posted by travelover
Kinda rude, don'tcha think?
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I think it depends a lot on the government agency. I worked both private and supervised DoD employees while I the military, and worked as a government civilian for a while. Most civilian government employees I saw worked hard, though rarely over 40 hours. There were a few slackers, but I saw that in private industry too. The true bureaucrats I've known were, however, not that dedicated in their work.
Federal benefits are often exaggerated, and state and local government benefits vary quite a bit. I think my private sector benefits were comparable to the federal benefits I remember having.
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