Edmunds Members - Cars and Conversations (Archived)

qbrozen

Heck, since we're talking income and taxes ...
A couple of days ago, a close friend of ours lost her house to a fire. She lives only a couple of miles away and has 2 huskies who are familiar with us, so she came to stay here. This was not a small fire and I think likely they have to tear down and start over, so who the heck knows how long this will take. Insurance was/is looking for housing for her, but nothing suitable has come up. She floated the idea of just living here and insurance paying us the rent. Not sure how well it will work in the long-run, but, putting sanity aside, any financial pitfalls here?

stickguy

probably just getting the insurance company to sign off on it!

never heard of it being done, but should be fine if you get it all in writing from the insurance company. And ideally have them pay you directly. Assuming of course you want the money bad enough to take on a permanent boarder!

I would assume at this point a teardown could be an 18 month project factoring in all the legal hassle time, contracting, etc. before building can even start. And that can take a lot longer now than in the old days!

Too bad you don't still have the rental house.

caveat: I have no clue about the implications to you turning part of your house into a rental property. And I assume the insurance company would require something official?

driver100

imidazol97 said:

driver100 said:

We used to go to a friendly home-made style restaurant for breakfast after tennis. They had wonderful real home fries. Then one day they served frozen pre-made home fries.
It was an insult to our taste buds, and we never went back after that.

They didn't thaw them and cook them before serving? -- "served frozen"

Well it was in Canada!

imidazol97

driver100 said:

imidazol97 said:

driver100 said:

We used to go to a friendly home-made style restaurant for breakfast after tennis. They had wonderful real home fries. Then one day they served frozen pre-made home fries.
It was an insult to our taste buds, and we never went back after that.

They didn't thaw them and cook them before serving? -- "served frozen"

Well it was in Canada!

Well, "fries" is a 5-letter word.

fintail

My mom worked til 70 to get the "full" benefit, and use her employer-sponsored healthcare (what a system) - she's enjoying retirement so much I think she kind of regrets not hanging em up earlier.

My dad retired the second he qualified for anything.

henryn said:

kyfdx said:

@stickguy You can retire at 65, and still not take SSA. Our plan is for at least one of us to wait until 70.

My plan was to wait until 70 to retire, and thus qualify for "full" SSA. I fell ill 4 months short of my 70th birthday, and decided not to return to work. The question was then whether to apply immediately for SSA or wait the 4 months and get more money each and every month after that.

Some quick back of the envelope math showed that if I drew SSA for 3 years at the higher rate, I would break even for not drawing any for those 4 months waiting for my 70th birthday. Luckily for me, I was not in need of immediate money.

I went online and looked around, and saw that I could fill out all of the necessary paperwork and specify a future start date (that is, 4 months down the road, after my birthday). I have never received a check from SSA, it was direct deposit from day one. I do miss the "check stub" though, as it's not readily apparent what the gross amount is, and what if any is being withheld.

fintail

Hughes was a master at casting cars - every one of those is perfectly placed.

Michaell said:

On this day in history ... 5 teens had to serve detention at Shermer HS:

Opening scenes....

explorerx4

The info pack I got for my CLL treatment, probably a bit outdated, said the almost 90% of patients were still alive after 1 year. I just passed a year and I'm not going back to work, so I'm taking my SS.

snakeweasel

tjc78 said:

@driver100 said:

Just don't go to a fine restaurant and ask for ketchup to put on your filet mignon

I would not do that … BUT if a person is paying for it and wants to do it, why should anyone care?

You bring up steak… personally I don’t like anything cooked above medium-rare but if well done floats your boat so be it.

I also think Filet is flavorless and ribeye is the best steak but won’t judge you for eating filet.

See my point yet?

Why should anyone care? Well a lot of chefs are more artistic and view what they make as masterpieces. It's a cumulation of years of study, training, experimentation testing and refining their craft to get what's on your plate. Then you show up and ruin all that hard work and sacrifice by putting ketchup on it. That's why someone will care.

Funny story, my sister had a boyfriend over for dinner when my mom made a nice steak dinner. When boyfriend asked for ketchup for his steak my mom got up, took boyfiends plate from him and told him to go to sizzlers. Don't mess with moms cooking.

Michaell

fintail said:

Hughes was a master at casting cars - every one of those is perfectly placed.

Michaell said:

On this day in history ... 5 teens had to serve detention at Shermer HS:

Opening scenes....

Absolutely.

Great, great movie.

snakeweasel

Michaell said:

On this day in history ... 5 teens had to serve detention at Shermer HS:

Opening scenes....

Shermer HS? That's Maine Township High School North. I grew up a little more than a mile south of that place.

cdnpinhead

stickguy said:

. . . and are pretty confident you will live far enough into your 80s to make it worth while.

Exactly.

I waited until my wife was 65 and eligible for medicare, then pulled the lanyard for both of us. My health isn't all that great (though it seems pretty decent compared to some of the others on here), so I wanted to start pulling something out of the system I'd been paying into for so long while I still had the chance.

cdnpinhead

snakeweasel said:

Well a lot of chefs are more artistic and view what they make as masterpieces.

Yeah, I guess, but nearly everyone who cooks knows what their food turns into a day or so later -- some very well-known chefs make reference to this, to keep things in perspective.

venture

cdnpinhead said:

stickguy said:

. . . and are pretty confident you will live far enough into your 80s to make it worth while.

Exactly.

I waited until my wife was 65 and eligible for medicare, then pulled the lanyard for both of us. My health isn't all that great (though it seems pretty decent compared to some of the others on here), so I wanted to start pulling something out of the system I'd been paying into for so long while I still had the chance.

Makes sense.

Figure if you take SS even at age 62 you will have collected around $150,000, more or less, until you reach age 70 assuming an average payout. That will take some time to make up.

I used to know a guy who was employed at SS. He said people will (basically) get the same amount of money no matter what. You just have to decide whether to get a smaller amount over more time or to get a larger amount over less time.

driver100

imidazol97 said:

driver100 said:

imidazol97 said:

driver100 said:

We used to go to a friendly home-made style restaurant for breakfast after tennis. They had wonderful real home fries. Then one day they served frozen pre-made home fries.
It was an insult to our taste buds, and we never went back after that.

They didn't thaw them and cook them before serving? -- "served frozen"

Well it was in Canada!

Well, "fries" is a 5-letter word.

Maybe I'll try that one to start off todays......you know what W----- (don't want to upset anyone)

oldfarmer50

explorerx4 said:

Called Treasury Dept today and they told me I need to get my first physical SS check before I can sign up for direct deposit.

That must be something new.

oldfarmer50

henryn said:

kyfdx said:

@stickguy You can retire at 65, and still not take SSA. Our plan is for at least one of us to wait until 70.

My plan was to wait until 70 to retire, and thus qualify for "full" SSA. I fell ill 4 months short of my 70th birthday, and decided not to return to work. The question was then whether to apply immediately for SSA or wait the 4 months and get more money each and every month after that.

Some quick back of the envelope math showed that if I drew SSA for 3 years at the higher rate, I would break even for not drawing any for those 4 months waiting for my 70th birthday. Luckily for me, I was not in need of immediate money.

I went online and looked around, and saw that I could fill out all of the necessary paperwork and specify a future start date (that is, 4 months down the road, after my birthday). I have never received a check from SSA, it was direct deposit from day one. I do miss the "check stub" though, as it's not readily apparent what the gross amount is, and what if any is being withheld.

No point in being the richest guy in the cemetery. I took SS at 65, retired and never looked back. I think I lost 8% by not waiting until full retirement age but I never missed it.

I’ve bought 3 cars with the money since retiring.

snakeweasel

venture said:

cdnpinhead said:

stickguy said:

. . . and are pretty confident you will live far enough into your 80s to make it worth while.

Exactly.

I waited until my wife was 65 and eligible for medicare, then pulled the lanyard for both of us. My health isn't all that great (though it seems pretty decent compared to some of the others on here), so I wanted to start pulling something out of the system I'd been paying into for so long while I still had the chance.

Makes sense.

Figure if you take SS even at age 62 you will have collected around $150,000, more or less, until you reach age 70 assuming an average payout. That will take some time to make up.

I used to know a guy who was employed at SS. He said people will (basically) get the same amount of money no matter what. You just have to decide whether to get a smaller amount over more time or to get a larger amount over less time.

I once calculated it out once and I found that if I die before I reach 77 I am better off starting to get SS when I hit 62 next year. However the longer I live the more I would get in total if I delay getting SS. If I live to be 84 I would get the most in total waiting until I hit 70 to take SS, by 23% more than if I retired at 62.

venture

snakeweasel said:

venture said:

cdnpinhead said:

stickguy said:

. . . and are pretty confident you will live far enough into your 80s to make it worth while.

Exactly.

I waited until my wife was 65 and eligible for medicare, then pulled the lanyard for both of us. My health isn't all that great (though it seems pretty decent compared to some of the others on here), so I wanted to start pulling something out of the system I'd been paying into for so long while I still had the chance.

Makes sense.

Figure if you take SS even at age 62 you will have collected around $150,000, more or less, until you reach age 70 assuming an average payout. That will take some time to make up.

I used to know a guy who was employed at SS. He said people will (basically) get the same amount of money no matter what. You just have to decide whether to get a smaller amount over more time or to get a larger amount over less time.

I once calculated it out once and I found that if I die before I reach 77 I am better off starting to get SS when I hit 62 next year. However the longer I live the more I would get in total if I delay getting SS. If I live to be 84 I would get the most in total waiting until I hit 70 to take SS, by 23% more than if I retired at 62.

For strictly dollars. Figure in inflation too since a dollar can buy more than it will in 8 years. There's also the fact that you can invest that money too.

If someone who is giving you money is telling you to wait, it is probably fair to question it.

kyfdx

venture said:

cdnpinhead said:

stickguy said:

. . . and are pretty confident you will live far enough into your 80s to make it worth while.

Exactly.

I waited until my wife was 65 and eligible for medicare, then pulled the lanyard for both of us. My health isn't all that great (though it seems pretty decent compared to some of the others on here), so I wanted to start pulling something out of the system I'd been paying into for so long while I still had the chance.

Makes sense.

Figure if you take SS even at age 62 you will have collected around $150,000, more or less, until you reach age 70 assuming an average payout. That will take some time to make up.

I used to know a guy who was employed at SS. He said people will (basically) get the same amount of money no matter what. You just have to decide whether to get a smaller amount over more time or to get a larger amount over less time.

True, if you live to be the average age in the actuarial tables.

If you live a longer life, then decidedly not true. I like waiting, because if I die early, I won't need the money, and if I live to be 90+, it might make a big difference.

I have an uncle that just turned 94! (not blood related), and he's smoked all his life, has an aortic aneurysm that "isn't big enough yet" to be operated on, and is diabetic, on insulin. You just never know what life has in store for you. I've seen his assets really dwindle, as he's needed more personal care, but doesn't want to leave his home.

kyfdx

Another strategy (reason) for waiting to draw: If instead of taking SSA, you spend money from your tax-deferred retirement accounts, it may put you in a better tax bracket once you have to start taking RMDs.

I'm really concerned about what happens when both of us are 72, drawing SSA, pensions, and have to take 4% of our tax-deferred assets out, each year as RMDs. It could even put us into a bracket where we pay higher Part B premiums for Medicare.

oldfarmer50

qbrozen said:

Heck, since we're talking income and taxes ...
A couple of days ago, a close friend of ours lost her house to a fire. She lives only a couple of miles away and has 2 huskies who are familiar with us, so she came to stay here. This was not a small fire and I think likely they have to tear down and start over, so who the heck knows how long this will take. Insurance was/is looking for housing for her, but nothing suitable has come up. She floated the idea of just living here and insurance paying us the rent. Not sure how well it will work in the long-run, but, putting sanity aside, any financial pitfalls here?

Only the normal horror stories of being a landlord and trying to evict a tenant who becomes a problem.

It’s very kind of you to take in a friend but the emotions of the situation may be clouding everyone’s judgement.

snakeweasel

venture said:

snakeweasel said:

venture said:

cdnpinhead said:

stickguy said:

. . . and are pretty confident you will live far enough into your 80s to make it worth while.

Exactly.

I waited until my wife was 65 and eligible for medicare, then pulled the lanyard for both of us. My health isn't all that great (though it seems pretty decent compared to some of the others on here), so I wanted to start pulling something out of the system I'd been paying into for so long while I still had the chance.

Makes sense.

Figure if you take SS even at age 62 you will have collected around $150,000, more or less, until you reach age 70 assuming an average payout. That will take some time to make up.

I used to know a guy who was employed at SS. He said people will (basically) get the same amount of money no matter what. You just have to decide whether to get a smaller amount over more time or to get a larger amount over less time.

I once calculated it out once and I found that if I die before I reach 77 I am better off starting to get SS when I hit 62 next year. However the longer I live the more I would get in total if I delay getting SS. If I live to be 84 I would get the most in total waiting until I hit 70 to take SS, by 23% more than if I retired at 62.

For strictly dollars. Figure in inflation too since a dollar can buy more than it will in 8 years. There's also the fact that you can invest that money too.

If someone who is giving you money is telling you to wait, it is probably fair to question it.

You would have to figure in inflation and cost of living increases that SS will supposedly give, both unknow variables especially if you are planning out 10 years or more. Plus there is more to the mix for me as I will be working for at least 5 years and 8 months more (up to a year and a month after that) so if I get any SS before that 85% of it will be taxed. So my plan is just to wait until I quit working.

kyfdx

Good advice from @oldfarmer50

Michaell

My head is spinning with all this retirement talk.

I'm still a few years away from having to make any decisions (I'm 58 now), but I've done some back of the envelope calculations on SS at 66 vs. 70, and what I hope my 401(k) will have in it when I'm that age.

Hope y'all are around to counsel me when the time comes.

qbrozen

oldfarmer50 said:

Only the normal horror stories of being a landlord and trying to evict a tenant who becomes a problem.

It’s very kind of you to take in a friend but the emotions of the situation may be clouding everyone’s judgement.

It is true. I mean, we've been down the NJ landlord route and it was a nightmare. This is quite different since we are living in the same space. Honestly, I don't know why she'd even want to do it. Her suite is right next to our kitchen and the kids start their routine at 6am. I know I wouldn't want to do it if I had the option. I think she is more concerned about her dogs than anything else.

snakeweasel

Back to something car related. I am going to work yesterday and I am stopped at a red light. The road I am on is just one lane in each direction through heavily wooded area but the cross street it 4 lanes divided and usually busy. We have no right turn lane but we do have a left turn lane. I am a few cars back so anyone coming up behind me wouldn't be able to get to the light to take the right turn on red but there is no one in the left turn lane. So someone comes up from behind passes all the cars waiting for the green and gets in the left turn lane and makes a right turn on red. As soon as he makes that turn the car behind me lights up like a Christmas tree, oh the pretty blue and red flashing lights, and heads out after him. I know the police in that town and that guy likely not only got a ticket for that turn but for passing in a no passing zone too.

stickguy

@kyfdx said:
Another strategy (reason) for waiting to draw: If instead of taking SSA, you spend money from your tax-deferred retirement accounts, it may put you in a better tax bracket once you have to start taking RMDs.

I'm really concerned about what happens when both of us are 72, drawing SSA, pensions, and have to take 4% of our tax-deferred assets out, each year as RMDs. It could even put us into a bracket where we pay higher Part B premiums for Medicare.

My thoughts are that if I make so much money I pay more for Medicare, I don’t really have a problem!

And if you are worried about onerous RMDs (I am) should consider bigger Roth conversions before you start SS. Spread out the tax bite.

snakeweasel

Michaell said:

My head is spinning with all this retirement talk.

I'm still a few years away from having to make any decisions (I'm 58 now), but I've done some back of the envelope calculations on SS at 66 vs. 70, and what I hope my 401(k) will have in it when I'm that age.

Hope y'all are around to counsel me when the time comes.

I am 61 now, will turn 62 next January, so this stuff in on my mind. Next year I can start taking a small pension from a previous job (would make a decent car payment and that's about it) but I have to get more info on it this fall like if I postpone it will I get more and if so how much and is there a cash out option and if so how much. I have a pension with my current job and I can retire right now from it, but staying longer means a bigger pension and if I make 20 years with them they will cover my insurance in retirement so I am there for a while.

kyfdx

Already doing the Roth conversions. But, it's hard to put a dent in it, with the market going up.

Also, extra taxes don't mean extra money. RMDs just move the money from one account to another, along with a big income tax bill. No one has enough money that they should pay extra taxes, if there is a legal way to avoid them. (and, higher Part B premiums are just another tax).

It's strictly a tax management plan. The less tax you pay, the more money you have to live off of, or if lucky enough, pass on to your heirs.

Michaell

snakeweasel said:

Michaell said:

My head is spinning with all this retirement talk.

I'm still a few years away from having to make any decisions (I'm 58 now), but I've done some back of the envelope calculations on SS at 66 vs. 70, and what I hope my 401(k) will have in it when I'm that age.

Hope y'all are around to counsel me when the time comes.

I am 61 now, will turn 62 next January, so this stuff in on my mind. Next year I can start taking a small pension from a previous job (would make a decent car payment and that's about it) but I have to get more info on it this fall like if I postpone it will I get more and if so how much and is there a cash out option and if so how much. I have a pension with my current job and I can retire right now from it, but staying longer means a bigger pension and if I make 20 years with them they will cover my insurance in retirement so I am there for a while.

One bonus I learned from my sister is that my dad set up his survivor pension to pass along to the two of us after my mom passes. Not much - as noted, maybe a nice car payment each month - but something to supplement the SS and 401(k) funds.

One big thing I want to do is cut down on our housing costs, which is why the move to NM factors into our plans.

stickguy

I’m trying to cut housing costs. So far not going well. I’ve been reduced to trying to not spend more!

kyfdx

stickguy said:

I’m trying to cut housing costs. So far not going well. I’ve been reduced to trying to not spend more!

Wait... aren't you headed to Europe?

venture

snakeweasel said:

Back to something car related. I am going to work yesterday and I am stopped at a red light. The road I am on is just one lane in each direction through heavily wooded area but the cross street it 4 lanes divided and usually busy. We have no right turn lane but we do have a left turn lane. I am a few cars back so anyone coming up behind me wouldn't be able to get to the light to take the right turn on red but there is no one in the left turn lane. So someone comes up from behind passes all the cars waiting for the green and gets in the left turn lane and makes a right turn on red. As soon as he makes that turn the car behind me lights up like a Christmas tree, oh the pretty blue and red flashing lights, and heads out after him. I know the police in that town and that guy likely not only got a ticket for that turn but for passing in a no passing zone too.

You know...that is one of the worst designed ways to control traffic. When I "worked" at a state highway place, if there was room, I would make it a separate right turn lane and then a left/straight lane. That way traffic didn't back up because people wanted to turn right but couldn't because one guy was going straight. Some intersections, of course, are more suited to that design than others.

When these were rebuilt years later almost all of them were put back to the old way and traffic backed up.

andres3

fintail said:

Hughes was a master at casting cars - every one of those is perfectly placed.

Michaell said:

On this day in history ... 5 teens had to serve detention at Shermer HS:

Opening scenes....

Just noticed that in Ferris ..... there's a nice old Audi in it (I think it was a teacher or was it the Dad?) Guess I wasn't an Audi fan or enthusiast the last time I saw the movie.

oldfarmer50

kyfdx said:

Another strategy (reason) for waiting to draw: If instead of taking SSA, you spend money from your tax-deferred retirement accounts, it may put you in a better tax bracket once you have to start taking RMDs.

I'm really concerned about what happens when both of us are 72, drawing SSA, pensions, and have to take 4% of our tax-deferred assets out, each year as RMDs. It could even put us into a bracket where we pay higher Part B premiums for Medicare.

My understanding of RMDs is that you can avoid taking them if you’re still working. Get yourself a fun little retirement job like Sandy and I.

I sure hope that’s the case since I don’t want to be forced to take money out of my company 401k which should be into 5 figures by then.

oldfarmer50

qbrozen said:

oldfarmer50 said:

Only the normal horror stories of being a landlord and trying to evict a tenant who becomes a problem.

It’s very kind of you to take in a friend but the emotions of the situation may be clouding everyone’s judgement.

It is true. I mean, we've been down the NJ landlord route and it was a nightmare. This is quite different since we are living in the same space. Honestly, I don't know why she'd even want to do it. Her suite is right next to our kitchen and the kids start their routine at 6am. I know I wouldn't want to do it if I had the option. I think she is more concerned about her dogs than anything else.

She may be traumatized by losing her home and is feeling in the need of security. The danger is that you will subconsciously become a parent figure.

You are obviously a caring family so don’t get sucked into adopting another kid.

oldfarmer50

snakeweasel said:

Back to something car related. I am going to work yesterday and I am stopped at a red light. The road I am on is just one lane in each direction through heavily wooded area but the cross street it 4 lanes divided and usually busy. We have no right turn lane but we do have a left turn lane. I am a few cars back so anyone coming up behind me wouldn't be able to get to the light to take the right turn on red but there is no one in the left turn lane. So someone comes up from behind passes all the cars waiting for the green and gets in the left turn lane and makes a right turn on red. As soon as he makes that turn the car behind me lights up like a Christmas tree, oh the pretty blue and red flashing lights, and heads out after him. I know the police in that town and that guy likely not only got a ticket for that turn but for passing in a no passing zone too.

Ain’t Karma great? I watch some of those “idiot drivers” videos on YT and there is always some clown who tries that. Usually it results in someone losing a bumper.

oldfarmer50

kyfdx said:

stickguy said:

I’m trying to cut housing costs. So far not going well. I’ve been reduced to trying to not spend more!

Wait... aren't you headed to Europe?

Well, where stick is moving there’s a Copenhagen, a Denmark, a Russia, a Poland, a Rome and of course, an Amsterdam.

stickguy

The people that really get hammered are the ones up into 7 figures. Not every 80 YO needs an extra $150k/year distributed to them.

snakeweasel

Michaell said:

snakeweasel said:

Michaell said:

My head is spinning with all this retirement talk.

I'm still a few years away from having to make any decisions (I'm 58 now), but I've done some back of the envelope calculations on SS at 66 vs. 70, and what I hope my 401(k) will have in it when I'm that age.

Hope y'all are around to counsel me when the time comes.

I am 61 now, will turn 62 next January, so this stuff in on my mind. Next year I can start taking a small pension from a previous job (would make a decent car payment and that's about it) but I have to get more info on it this fall like if I postpone it will I get more and if so how much and is there a cash out option and if so how much. I have a pension with my current job and I can retire right now from it, but staying longer means a bigger pension and if I make 20 years with them they will cover my insurance in retirement so I am there for a while.

One bonus I learned from my sister is that my dad set up his survivor pension to pass along to the two of us after my mom passes. Not much - as noted, maybe a nice car payment each month - but something to supplement the SS and 401(k) funds.

One big thing I want to do is cut down on our housing costs, which is why the move to NM factors into our plans.

We might slash housing costs by being a burden on the kids.

Gee I really do miss those little cars.

snakeweasel

venture said:

snakeweasel said:

Back to something car related. I am going to work yesterday and I am stopped at a red light. The road I am on is just one lane in each direction through heavily wooded area but the cross street it 4 lanes divided and usually busy. We have no right turn lane but we do have a left turn lane. I am a few cars back so anyone coming up behind me wouldn't be able to get to the light to take the right turn on red but there is no one in the left turn lane. So someone comes up from behind passes all the cars waiting for the green and gets in the left turn lane and makes a right turn on red. As soon as he makes that turn the car behind me lights up like a Christmas tree, oh the pretty blue and red flashing lights, and heads out after him. I know the police in that town and that guy likely not only got a ticket for that turn but for passing in a no passing zone too.

You know...that is one of the worst designed ways to control traffic. When I "worked" at a state highway place, if there was room, I would make it a separate right turn lane and then a left/straight lane. That way traffic didn't back up because people wanted to turn right but couldn't because one guy was going straight. Some intersections, of course, are more suited to that design than others.

When these were rebuilt years later almost all of them were put back to the old way and traffic backed up.

The problem is the road passes through protected woodland and making the road wide enough to allow another lane for right turns would mean a lot of work and time and money to get an approval.

Michaell

oldfarmer50 said:

kyfdx said:

stickguy said:

I’m trying to cut housing costs. So far not going well. I’ve been reduced to trying to not spend more!

Wait... aren't you headed to Europe?

Well, where stick is moving there’s a Copenhagen, a Denmark, a Russia, a Poland, a Rome and of course, an Amsterdam.

The development I live in has streets named after US, Asian and European cities:

Delhi
Atlanta
Evansville
Fort Worth
Jakarta
Munich
Chicago
Oslo
Vienna
Copenhagen
Harrisburg
Casper

kyfdx

oldfarmer50 said:

kyfdx said:

Another strategy (reason) for waiting to draw: If instead of taking SSA, you spend money from your tax-deferred retirement accounts, it may put you in a better tax bracket once you have to start taking RMDs.

I'm really concerned about what happens when both of us are 72, drawing SSA, pensions, and have to take 4% of our tax-deferred assets out, each year as RMDs. It could even put us into a bracket where we pay higher Part B premiums for Medicare.

My understanding of RMDs is that you can avoid taking them if you’re still working. Get yourself a fun little retirement job like Sandy and I.

I sure hope that’s the case since I don’t want to be forced to take money out of my company 401k which should be into 5 figures by then.

That only applies to 401Ks, if you are still employed by that same company. Otherwise, all 401Ks and traditional IRAs require RMDs at age 72.

I'm pretty sure I have a fun little retirement job..

Michaell

kyfdx said:

oldfarmer50 said:

kyfdx said:

Another strategy (reason) for waiting to draw: If instead of taking SSA, you spend money from your tax-deferred retirement accounts, it may put you in a better tax bracket once you have to start taking RMDs.

I'm really concerned about what happens when both of us are 72, drawing SSA, pensions, and have to take 4% of our tax-deferred assets out, each year as RMDs. It could even put us into a bracket where we pay higher Part B premiums for Medicare.

My understanding of RMDs is that you can avoid taking them if you’re still working. Get yourself a fun little retirement job like Sandy and I.

I sure hope that’s the case since I don’t want to be forced to take money out of my company 401k which should be into 5 figures by then.

That only applies to 401Ks, if you are still employed by that same company. Otherwise, all 401Ks and traditional IRAs require RMDs at age 72.

I'm pretty sure I have a fun little retirement job..

Side gig for moi.

driver100

snakeweasel said:

the car behind me lights up like a Christmas tree, oh the pretty blue and red flashing lights, and heads out after him. I know the police in that town and that guy likely not only got a ticket for that turn but for passing in a no passing zone too.

Some people are so slow at making a right turn....I have felt like doing that.......but too many things can go wrong, and I don't like to do something illegal.
I see things like that happen and wish there was a cop to see it....but there seldom is. Glad they got him, he is going to endanger everyone else's life to save a few minutes!

stickguy

oldfarmer50 said:

kyfdx said:

stickguy said:

I’m trying to cut housing costs. So far not going well. I’ve been reduced to trying to not spend more!

Wait... aren't you headed to Europe?

Well, where stick is moving there’s a Copenhagen, a Denmark, a Russia, a Poland, a Rome and of course, an Amsterdam.

you forgot one of the other towns where I am looking in houses. Malta.

henryn

I so happened to start taking my SSA in January, but not for the reasons stated here. I turned 70 in December, and I wanted to be sure to get the full amount, so I started my SSA the following month, January.

I didn’t take social security at 65 as I was still working, contract, and making pretty good money. Which meant, A, I didn’t need the money, and B, it would have been taxed heavily. I did take Medicare, as I was the self-employed type of contractor with zero benefits. The medicare part B premium was heavy duty, over $400 a month, but still much better than private insurance. And there was also a premium added to the Part D (drug) plan, but not nearly as bad as the increase for Part B.

And I didn’t think of the medicare part B increase as a tax. The government was still kicking in for part of the cost, just not as much of it. And let’s face it, if I was making that much, it wasn’t a problem.

One reason I wanted to get the full SSA at age 70 was that I had a budget figured out where I could live just on my SSA. I didn’t want to, and I don’t expect to have to, but I could if necessary. Which is reassuring and helps me to sleep better at night.

I will turn 72 before the end of this year, so I have taken the required RMD. The money isn’t going anywhere, I don’t need it, but there it is. It isn’t enough to push me into higher Medicare Part B premiums, but part of my SSA will be taxable this year. In more ordinary times, I would probably use that money to buy a new car. But these are not ordinary times, and I refuse to play the game when the cards are stacked this badly against me.

And yes, I know I’m risking my membership in CCBA.

ronsteve

@andres3 said:
Just noticed that in Ferris ..... there's a nice old Audi in it (I think it was a teacher or was it the Dad?) Guess I wasn't an Audi fan or enthusiast the last time I saw the movie.

Ferris’s dad drove a pretty fresh Audi 5000.

venture

snakeweasel said:

venture said:

snakeweasel said:

Back to something car related. I am going to work yesterday and I am stopped at a red light. The road I am on is just one lane in each direction through heavily wooded area but the cross street it 4 lanes divided and usually busy. We have no right turn lane but we do have a left turn lane. I am a few cars back so anyone coming up behind me wouldn't be able to get to the light to take the right turn on red but there is no one in the left turn lane. So someone comes up from behind passes all the cars waiting for the green and gets in the left turn lane and makes a right turn on red. As soon as he makes that turn the car behind me lights up like a Christmas tree, oh the pretty blue and red flashing lights, and heads out after him. I know the police in that town and that guy likely not only got a ticket for that turn but for passing in a no passing zone too.

You know...that is one of the worst designed ways to control traffic. When I "worked" at a state highway place, if there was room, I would make it a separate right turn lane and then a left/straight lane. That way traffic didn't back up because people wanted to turn right but couldn't because one guy was going straight. Some intersections, of course, are more suited to that design than others.

When these were rebuilt years later almost all of them were put back to the old way and traffic backed up.

The problem is the road passes through protected woodland and making the road wide enough to allow another lane for right turns would mean a lot of work and time and money to get an approval.

I didn't say to add a lane. I said make the right lane a right turn lane and make the other existing one a left turn and straight lane. There are other problems too where you do need more room though (and the one you mention is probably one of them) in that if there is an opposing road, the straight through lanes are facing each other...not a good idea since many people are dense. It really works well at a T-intersection and where you can shift opposing roads a half lane right.

imidazol97

A Medicare B price chart: notice the unfair big step for anyone married filing separately
which sometimes gives large tax savings on Federal returns. It's like an ADM on
Medicare that others don't pay.