You can get a divorce, just then marry someone else who got half of their ex's.
Retirement Targets
- Thread starter yowza
- Start date
Few hundred bucks for the common man. Big deal. Let Trump Tax Cuts be rescinded. Apply it to paying down debt and deficits.
Eliminate the earnings cap for SS. Keep full retirement age at 67.
If I wasn’t married I would have retired at 35.
Marriage was not expensive for me, but kids definitely were. Studies have found that children cost about $250,000 each. Based on my experience, I would say that’s pretty accurate. Still, the joys of parenthood far outweigh the associated cost, IMO. Not saying that having children is for everyone, but I can’t imagine life without my spouse and kids to share it with.
My wife usually makes more than I do. If she wasn't around, I'd be in a lot worse shape financially.
Not saying I would trade my family, but I’m inherently frugal/cheap. Wife is someone who has no idea what is in her account at anytime.
I make quite a bit more, but could live off her salary but she would not be able to live off mine. She brought debt into the marriage, I brought cash.
My wife was the same before we married. However, she now manages the checkbook, while I manage our investments.
I am fairly frugal as well and strongly believe that living below your means is the key to accumulating wealth. However, it’s important to find the right balance, IMO. I have seen some who are cheap to an extreme that I wonder if they really enjoy like. My uncle is one of those individuals.
I don't think retirement taxes will be higher than working taxes. I think ALL taxes will go up but I have done all my planning on today's tax rates and I think they all go up. I listened to a couple of videos from people I somewhat trust and they both think they will increase, which got me leaning that way.
Sounds extremely familiar. However, my wife has changed her spending habits since we wed 30 years ago, and now she is probably cheaper than me. Still, I don’t blame her for how she was before we married. Her parents never taught her about money.
Don’t know how today’s federal income tax rates will compare to the rates 10-, 20-, or 30 years from now. My guess is they will be the same or higher, but who knows.
However, if you live in Iowa, your state taxes are likely to be lower in retirement. That’s because the legislature recently passed as bill that exempts all retirement income (SS, pensions, RMDs, etc.) from state income taxes. Unfortunately, it doesn’t help Nebraska residents like me much.
Her family is similar to her. I was hoping that after 25 years she would start to pay a little attention but she hasn’t. One of those that if you put an old Yugo next to a brand new Bentley but priced the Yugo a grand more she would say she wanted the Yugo.
Recently received my property valuations on ag land, residential and personal residence. Increased 43%. I expected the Supervisors would lower the levy but they subsequently raised the levy too. Ouch. My point is that financial issues do not end just because you reach retirement.
Been experiencing the same thing in NE. Valuations have been increasing dramatically, but the tax levies remain the same. I would think that’s a huge windfall for local governments and school systems.
When we talked to our accountant while doing our taxes, he said that being retired in May, will drop our tax rate to between 10 to 12%. He thought that with the state no longer taxing retirement, that even with a future rise in federal taxes would be cancelled out by the state no longer taxes retirement income on SS, pensions and such.
Completely agree with your accountant. Been retired for about 18 months, and my taxes have fallen significantly. For one, my pension does not equal my salary. Further, even if it would, I would save on FICA taxes. Although traditional 401K and IRA withdrawals are treated as income, you control the withdrawals until RMDs kick in.
The federal and state taxes that I paid in 2022 were about a third of what I paid in 2020, or my last full year of employment.
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Tax rates are likely to increase, federal spending of the last 5ish years (from covid on) has been off the charts. And it was high before that. Somebody has to pay it back eventually.
I worry a lot about the debt tipping point where we go the way of Greece, but thats a different thread. I have many thoughts and ideas about tax policy that absolutely no one wants to hear lol.
That said, agree for vast majority of people, their rates wont be higher in retirement. First, you are usually living on less income than before (so lower rates at lower levels). Second, some of that income (for most people) will be tax free from a Roth, or lower rates on dividends. And hey, if you ARE living on more in retirement, then why wouldnt you pay more in taxes?
As far as taxation, when a person retires it is unearned income generally so there is no SS tax. Plus SS benefits can be exempt from taxation depending on income level. Iowa income tax will mostly go away for retirees with retirement income. Property taxes will be up significantly in the future.
