mickeyd
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
http://www.dallasnews.com/sharedcon...ns/2006/stories/072006dnbusburns.159f94d.html
The power of your personal decisions is enormous. Every dollar of spending you avoid eliminates sales taxes and income taxes.
Follow this trail. An item priced at $1 will cost $1.075 with a typical sales tax. To net $1.075 after a 15 percent federal income tax, you need to earn $1.26 on your investments. At a safe withdrawal rate of 4 percent, that means you need $31.61 in investments to support every $1 of retirement spending.
If you happen to trigger the taxation of Social Security benefits or live in a state with an income tax, the investment multiple you will need can be much higher.
A retiree who triggers the worst possible rates will need to earn $2 on his investments to generate $1.075 of after-tax income to buy something that costs $1.
Every dollar you don't spend eliminates the need for $50 in investments.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
I have never seen this aspect of expenses/investments/savings quantified before and I have held this position for many years, I just could never figure out how to do the calculations.
The power of your personal decisions is enormous. Every dollar of spending you avoid eliminates sales taxes and income taxes.
Follow this trail. An item priced at $1 will cost $1.075 with a typical sales tax. To net $1.075 after a 15 percent federal income tax, you need to earn $1.26 on your investments. At a safe withdrawal rate of 4 percent, that means you need $31.61 in investments to support every $1 of retirement spending.
If you happen to trigger the taxation of Social Security benefits or live in a state with an income tax, the investment multiple you will need can be much higher.
A retiree who triggers the worst possible rates will need to earn $2 on his investments to generate $1.075 of after-tax income to buy something that costs $1.
Every dollar you don't spend eliminates the need for $50 in investments.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
I have never seen this aspect of expenses/investments/savings quantified before and I have held this position for many years, I just could never figure out how to do the calculations.