Join AARP
Join for Just $16 A Year
- Discounts on travel and everyday savings
- Subscription to AARP The Magazine
- Free membership for your spouse or partner
Message Boards Directory
Welcome to the AARP Discussion Board. Here you can talk with peers about current events ranging from Social Security to caring for your parents to the latest on health care reform. It is also the perfect place to exchange healthy eating recipes and job hunting tips.
These forums are for you to engage and have fun meeting new people. Just remember the community code: Be nice!
How's All Those Retirement Savings?
False
Budget & Savings
How's All Those Retirement Savings?
<font size="1"><div>Saving money is easier than you might think with a little ecouragement from fellow savers on a budget. Learn how to save for long or short term goals. Who knows a money saving expert might even pop in every once in a while.</div></font>
After a lifetime of work, did we save enough to live as we imagined? Were we wise in our planning? Is your mortgage paid in full? Are other debts paid off? Whatever your answer, ther
0
Cat:827966ee-6d39-4ef7-98a5-0157a43092f8Forum:f80ddd14-505a-4bab-8d65-8444c1068885
Cat:827966ee-6d39-4ef7-98a5-0157a43092f8Forum:f80ddd14-505a-4bab-8d65-8444c1068885Discussion:984a8d70-78f9-4bcc-8505-2d626e130aec
Forums » Money » Budget & Savings » How's All Those Retirement Savings?
|
How's All Those Retirement Savings?
posted at December 10, 2011 7:29 PM EST
|
Posts: 1923
First: November 27, 2011 Last: May 18, 2013 |
After a lifetime of work, did we save enough to live as we imagined? Were we wise in our planning? Is your mortgage paid in full? Are other debts paid off? Whatever your answer, there is a generation right behind us - what would you advise them to do if they asked you for guidance in their planning for their future? |
|
|
Re: How's All Those Retirement Savings?
posted at December 13, 2011 5:16 PM EST
|
Posts: 4
First: December 13, 2011 Last: December 20, 2011 |
In Response to How's All Those Retirement Savings?: After a lifetime of work, did we save enough to live as we imagined? Were we wise in our planning? Is your mortgage paid in full? Are other debts paid off? Whatever your answer, there is a generation right behind us - what would you advise them to do if they asked you for guidance in their planning for their future? Posted by GailL1 Seniors do not benefit from a reduction in the payroll tax. We could use some help with the Federal Income Tax(FICT) on our Social Security benefits by indexing the taxes. Seniors are required to make a minimum distribution(MRD) from our IRA. The distribution is larger than needed. Each distribution causes a sale of assets at a steep lose. In addition the MRD makes our Social Security benefits subject to the Federal Income Tax. In effect double taxation. At this rate of decrease in assets we will become wards of the state. We need another tax holiday on our MRD and indexing the FICT on SS benifits. DAV WW ll. |
|
|
Re: How's All Those Retirement Savings?
posted at December 13, 2011 5:17 PM EST
|
|
Posts: 4
First: December 13, 2011 Last: December 20, 2011 |
Seniors do not benefit from a reduction in the payroll tax. We could use some help with the Federal Income Tax(FICT) on our Social Security benefits by indexing the taxes. Seniors are required to make a minimum distribution(MRD) from our IRA. The distribution is larger than needed. Each distribution causes a sale of assets at a steep lose. In addition the MRD makes our Social Security benefits subject to the Federal Income Tax. In effect double taxation. At this rate of decrease in assets we will become wards of the state. We need another tax holiday on our MRD and indexing the FICT on SS benifits. DAV WW ll. A Roth IRA is the way to go. Withdrawals and tax on SS benefits is not a concern as in an original IRA.
|
|
|
Re: How's All Those Retirement Savings?
posted at December 13, 2011 5:20 PM EST
|
|
Posts: 4
First: December 13, 2011 Last: December 20, 2011 |
In Response to Re: How's All Those Retirement Savings?: Seniors do not benefit from a reduction in the payroll tax. We could use some help with the Federal Income Tax(FICT) on our Social Security benefits by indexing the taxes. Seniors are required to make a minimum distribution(MRD) from our IRA. The distribution is larger than needed. Each distribution causes a sale of assets at a steep lose. In addition the MRD makes our Social Security benefits subject to the Federal Income Tax. In effect double taxation. At this rate of decrease in assets we will become wards of the state. We need another tax holiday on our MRD and indexing the FICT on SS benifits. DAV WW ll. Posted by 7baldeagle11 A Roth IRA is the way to go.
|
|
|
Re: How's All Those Retirement Savings?
posted at December 14, 2011 3:51 PM EST
|
Posts: 3
First: December 14, 2011 Last: December 14, 2011 |
"what would you advise them to do if they asked you for guidance in their planning for their future?" Become a politician and feed at the trough of graft, corruption and entitlements. |
|
|
Re: How's All Those Retirement Savings?
posted at December 14, 2011 10:17 PM EST
|
|
Posts: 1923
First: November 27, 2011 Last: May 18, 2013 |
Definitely agree that a Roth is the way to go NOW. So much benefit to the contributions going in taxed but earings growing tax free. Add to that, the prinipal taxed contribution can be withdrawn tax free after a few years to use for various things but the earnings staying in to grow tax free. IRA accounts were nice though - saving us on taxes during those income producing years. Especially if you were self-employed, like me, and could do the SEP-IRA contributions - saved a bunch on taxes through the earning years. I do have to continue to remind myself of this when I have to start those RMD and then pay the tax. We (baby boomers) are the 1st generation to experience this self- retirement funding mechanism - so the closer us (baby boomers) get to that 70.5 the more gripping we will hear about the taxation. We just have to remember those contributions went in tax free. The tax on SS benefits is rather disheartening however so is having to pay more Medicare Plan B premiums the higher your income. |
|
|
Re: How's All Those Retirement Savings?
posted at December 14, 2011 10:22 PM EST
|
|
Posts: 1923
First: November 27, 2011 Last: May 18, 2013 |
In Response to Re: How's All Those Retirement Savings?: "what would you advise them to do if they asked you for guidance in their planning for their future?" Become a politician and feed at the trough of graft, corruption and entitlements. Posted by arusso123 They are one of the few "occupations" that still have a defined pension benefit AND one that they themselves rule over. LOL - We have all been sold a bridge!!! |
|
Re: How's All Those Retirement Savings?
posted at January 18, 2012 1:40 PM EST
|
Posts: 1
First: January 18, 2012 Last: January 18, 2012 |
For years I was told to maximize 401K and take it out when my taxes would be lower in retirement. I'm fortunate to have a pension and social security but It was a shock to pay 28% marginal rate on MRD's and almost 1/3 of retirement savings going up in tax smoke. Why aren't earnings on MRD's taxed at capital gains rate like any other investment? What is AARP doing to advocate better tax rates for us? |
|
|
Re: How's All Those Retirement Savings?
posted at January 18, 2012 3:28 PM EST
|
|
Posts: 1923
First: November 27, 2011 Last: May 18, 2013 |
In Response to Re: How's All Those Retirement Savings?: For years I was told to maximize 401K and take it out when my taxes would be lower in retirement. I'm fortunate to have a pension and social security but It was a shock to pay 28% marginal rate on MRD's and almost 1/3 of retirement savings going up in tax smoke. Why aren't earnings on MRD's taxed at capital gains rate like any other investment? Posted by ohopdiver Because the money was earned that was put into your 401K - Even though your 401K contributions earned money in the market, most likely, iot didn't have to be there - it could have been in any number of different investments. Same with tax pension benefits - they are also taxed as income. You must have a pretty big Required Minimum Distribution to put you in the 28% bracket. I have switched some of my IRA saving to Roth IRA through the years and have paid those taxes already. A few years ago when the government had that (big) energy tax credit going on, I had to replace a rather large heat/air heat pump system for my upstairs. The tax credit was for $1500 but it was not a refundable credit and I have my income/expenses structured so that I don't have to pay much tax. I'm not to the age where I have to take the RMD yet. Anyway, I moved enough money from my regular IRA to the Roth so that the energy tax credit paid the taxes.  |
|
|
Re: How's All Those Retirement Savings?
posted at January 18, 2012 4:07 PM EST
|
Posts: 12532
First: February 29, 2008 Last: May 17, 2013 |
In Response to Re: How's All Those Retirement Savings?: Definitely agree that a Roth is the way to go NOW. So much benefit to the contributions going in taxed but earings growing tax free. Add to that, the prinipal taxed contribution can be withdrawn tax free after a few years to use for various things but the earnings staying in to grow tax free. IRA accounts were nice though - saving us on taxes during those income producing years. Especially if you were self-employed, like me, and could do the SEP-IRA contributions - saved a bunch on taxes through the earning years. I do have to continue to remind myself of this when I have to start those RMD and then pay the tax. We (baby boomers) are the 1st generation to experience this self- retirement funding mechanism - so the closer us (baby boomers) get to that 70.5 the more gripping we will hear about the taxation. We just have to remember those contributions went in tax free. The tax on SS benefits is rather disheartening however so is having to pay more Medicare Plan B premiums the higher your income. Posted by GailL1 "THEY" tell us to save for retirement (which the retirees today did) But what for most Americans...what one can actually save from the wages of yesteryear are not good enough for today's expenses even if they were invested wisely. That's why we were promised Soc Security would be there for us. So what they are doing is saying we want to or reduce benefits or get rid of the program entirely. Then meanwhile, they cut the interest rates to near ZERO so we are eating up the principle we saved so diligently instead of being able to live off interest income. And we won't have anything to leave to our kids who will need it more than we do. Women suffer the most.... 60% of women hold low-pay but NECESSARY clerical jobs, & around the same number of e women are totally unprepared for retirement. Actually 1 of 4 depend on SS for 90% of their -income living in or near poverty. Given this experience....what motivation does it give the next generation to save any money for retirement ? I suppose they will if they don't examine the stats as they stand today. |
Forums » Money » Budget & Savings » How's All Those Retirement Savings?
