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Old 04-02-2024, 02:35 PM   #21
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There's a saying about letting the Tax Tail Wag the Dog.
I'm afraid that's what we're dealing with here...
We can agree to disagree with Shirley, but WADR I think s/he gets too wrapped up in their underwear on marginal rates and the hump.

In 2024, if a single person over 65 had $35k of SS and $46,250 of other ordinary income then 85% of their Social Security would be taxed, but their tax rate would be a modest 10.4%.

Paying $8,154 (10.4%) in tax on income of $81,250 doesn't seem to be a high price to pay to live in our great country even with 85% of SS being taxed and even considering that the last bit is taxed at 40.7%.
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Old 04-02-2024, 02:47 PM   #22
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Originally Posted by pb4uski View Post
We can agree to disagree with Shirley, but WADR I think s/he gets too wrapped up in their underwear on marginal rates and the hump.

In 2024, if a single person over 65 had $35k of SS and $46,250 of other ordinary income then 85% of their Social Security would be taxed, but their tax rate would be a modest 10.4%.

Paying $8,154 (10.4%) in tax on income of $81,250 doesn't seem to be a high price to pay to live in our great country even with 85% of SS being taxed and even considering that the last bit is taxed at 40.7%.
Correct, as usual.
The so-called hump isn't all that wide and not inflation indexed, so most people will be over it at some point.

Sidenote: I'm driving up I-89 to northern Vermont early next Monday morning. See you then...
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Old 04-02-2024, 04:26 PM   #23
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If I have to manage my taxes like OP, I would rather go back to work to make more money. It is too much work to squeak out every last cent out of my money to avoid paying taxes. We are in pretty high income bracket as retirees and we are happy to pay our taxes. It is a privilege to pay our fair share of taxes. Don't forget that US has high deficit and it will get us someday. In the meantime, we do our bit to be good citizens.
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Old 04-02-2024, 08:23 PM   #24
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I made taxed contributions to my Social Security Trust Fund for 49 years. If you are saying that my Social Security should be taxed income, why arenít you also saying that everything taken out of a Roth IRA should be taxable income! Also, why did the government only consider 35 years of my contributions while they are giving me back zero for the other 14 years of contributions?
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Shirley is a widow, so our viewpoint is from someone who starts "their own" SSB at age 70.
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Old 04-02-2024, 09:09 PM   #25
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We are in pretty high income bracket as retirees and we are happy to pay our taxes. It is a privilege to pay our fair share of taxes.
So step up and pay your fair share! Blabbing is cheap. Actually paying is the real deal! You'll feel better about yourself and your contribution to society.
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Old 04-02-2024, 09:23 PM   #26
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So step up and pay your fair share! Blabbing is cheap. Actually paying is the real deal!
Yeah I am. So what is your problem? I am not the one trying to work the system. You got the wrong target. We are at the 24% tax bracket. I pay full freight for health insurance. No ACA subsidies.
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Old 04-02-2024, 09:32 PM   #27
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Yeah I am.
Really?
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Old 04-02-2024, 09:35 PM   #28
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Really?
Why not? What is your point? You're just trolling. You are now officially ignored.
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Old 04-02-2024, 09:36 PM   #29
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Originally Posted by Sandy & Shirley View Post
I made taxed contributions to my Social Security Trust Fund for 49 years. If you are saying that my Social Security should be taxed income, why arenít you also saying that everything taken out of a Roth IRA should be taxable income! Also, why did the government only consider 35 years of my contributions while they are giving me back zero for the other 14 years of contributions?
From what you have written I suspect that you are getting much more per dollar contributed than many of us so don't expect a lot of sympathy.

The taxation of SS akin to contributory pensions was set in statute long before Sen Roth ever thought about tax-free individual retirement accounts, so I'm not sure what your point is.

Seems that you just like to bitch about taxes, humps and how things are so unfair, so carry on.
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Old 04-02-2024, 09:39 PM   #30
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Why not? What is your point? You're just trolling. You are now officially ignored.
I don't blame you RH, I'm not sure what youbet is smoking but whatever it is, I want some.
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Old 04-02-2024, 09:40 PM   #31
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Why not? What is your point? You're just trolling. You are now officially ignored.
I suppose you consider that better than actually paying your "fair share."

Don't be so sensitive. Apparently you high tax bracket rich folk are offended when the plebeians speak up!
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Old 04-06-2024, 11:53 AM   #32
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If you're interested in investing in individual stocks, I recommend looking into the National Association of Investment Clubs at betterinvesting.org. You don't have to be in an investment club to use their tools. The aim of those tools is to help you identify quality companies growing at a consistent rate at a price that is likely to double in five years, or roughly 15% CAGR.

No one can predict which investments will pay off that well. That's why you shouldn't blindly accept other people's estimates or recommendations. You have to do your own homework to understand why you believe any given investment is worth making. I had more time and interest in such homework in the past and am now mostly coasting.

There's nothing wrong with buying index funds and having more time to enjoy your retirement.

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Looking back about 15 years, I remember a few websites that offered individual stock future recommendations / predictions. They offered short term and long term estimates and listed how many of their analysts agreed and disagreed with each prediction.

We are not looking for stock that will double in value in the next six months. We are more interested in the stock symbols that will probably grow by 8 to 12 percent over the next 12 months and a majority of our analysts agree with that estimate.

Can anyone recommend a few URLs where this type of market analysis is provided?
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Old 04-06-2024, 01:33 PM   #33
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Originally Posted by Sandy & Shirley View Post
I made taxed contributions to my Social Security Trust Fund for 49 years. If you are saying that my Social Security should be taxed income, why aren’t you also saying that everything taken out of a Roth IRA should be taxable income!
I see that as incorrect approach to compare Social Security to Roth.
You are correct in terms that you put after-tax money into the trust fund, but your employers also put money there on your behalf, and those are before tax money as company deduct them as expenses.
And then there is a growth, which you did not contribute.

Correct comparison in my view would be to portfolio with 2 equal parts:
  • 50% Taxable account for your money, where your contributions paid out tax free and you pay tax only on growth which is over the years could be more than 70% of the total account value.
  • 50% Pretax account for Employer contributions and growth on them, 100% taxed at payment time

If you still insist on comparing to the ROTH, than only growth of your contributions would be tax free, but 50% of your SS income is still should be taxed as it can not be considered in terms of ROTH.
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Old 04-17-2024, 11:28 AM   #34
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Just a thought. If you are planning any charitable giving, itís best to leave some in IRAs and use Qualified Charitable Distributions. That way you donít have to pay any tax on the distributions and they count for RMDs up to $100k/year.
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