your tax strategy for retirement....

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I don't have one. I pay what they say I owe. Being I don't make huge amounts I don't pay a lot in taxes anyway.
 
Still trying to accumulate enough that I can consider retirement...don't want to wind up being the 80 year old codger working as a greeter at WalMart to supplement my income...doing it to get out of the house is a different thing, but NEEDING it would be a drag.

The good news is, I have enough cardiac issues in the family and with me personally that it may be a non-issue. My bride will do just fine.
 
Originally Posted By: opus1
Originally Posted By: SevenBizzos
Move out of IL.

Working on this as well.

Me three!
 
1. I retired at 64, just under 2 years ago. Portfolio consists of about 50% real estate and 50% IRA. Rolled over entire 401k to IRA for better options and more control.
2. Have a very small military pension. Value of medical included in that pension is high.
3. Paid off all debt including mortgage shortly after retiring. Starting next year will take standard deduction. Still have the benefit of real estate deductions and depreciation.
4. Delaying Social Security to minimize income while I roll as much ordinary IRA to Roth IRA as possible. This is only feasible if there is sufficient cash on hand or income to handle living expenses and the additional tax. The Roth is important to me because I anticipate 20 years of gains (if I live that long), and I won't have to take out Required Minimum Distributions. This is huge in maintaining flexibility in a changing tax environment.
 
For starters, max out your 401(k)/403(b)/whatever contributions every year, particularly if your employer matches any amount. My strategy is to max the 401(k), then max out the Roth IRA contributions. The rest pays off the mortgage/student loans, then into the investment accounts, then motor oil stash.
 
Years ago I was told that fools work for their money and the smarter people make their money work for them.
 
I have 4 years until Social Security, assuming that Ponzi scheme survives. By that time I will have a paid for home and 3 rentals paid for and generating income. Dealing with low income rentals is rough, but, there is money in it.

I am worried social about security surviving long enough for me to collect. The national debt and the free spending morons of both parties may kill it.

I can see our fearless leaders cutting the ss benefits, or hyperinflating the currency so your SS check buys a bag of groceries once a month.

The only tax strategy I have is live on as little as possible, and seek the advice of good CPA
 
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Whatever you do you should have some cash held out in your hands, cash, gold or whatever in case of a financial rainy day. You should add to the pot even in very small amounts, frequently so it won't hurt. That plan saved my bacon when Lehman Brother's went bust and my portfolio went down the drain about the same time I was diagnosed with pancreatic cancer. Who would have thought either one of these things would have happened, one of the world's largest and oldest bank and a deadly cancer, let alone both at the same time?

My wife was living with me at the hospital helping to take care of me when the IRS foreclosed on our home. I was really struggling, just hanging on and she did not answer IRS letters that she never saw. We had no idea what was happening. He focus was elsewhere and I was in the Twilight Zone. Later, we were finally granted a hearing to pay our taxes and penalties and stop the sale but instead, we received the proceeds of the sale of our home which was a bill for the deficit and a key to a storage locker for our belongs. The house was sold at auction in the middle of the biggest market collapse since I don't know when.

If it was not for my "silly" cash reserve hidden away we would have had nothing. Besides being financially helpful it was good for our mental health, too. So don't ever say there can't be a really bad financial rainy day. You have to admit that no one including yourself is an expert on the economy, investments, and the future especially when the politicians get involved.
 
Originally Posted By: SevenBizzos
Move out of IL.


As Illinois is one of the few states that doesn't tax retirement income (pension plans, 401k and IRA withdrawals, social security, etc.), this answer may not be quite so simple for retirees.
 
Originally Posted By: pandus13
Hello BITOGers,

What is your tax deferred/legal avoidance strategy now or for your retirement?

Thank you

Non taxable:
2 Roth IRAs

Taxable:
2 company pensions
2 voluntary pensions
1 military pension

Brokerage account with capital gains taxed
Both SS will be taxed
 
Originally Posted By: opus1
Originally Posted By: SevenBizzos
Move out of IL.

Working on this as well.


Think IL is bad? I need to get the heck out of California!!!


Jeff
 
Originally Posted By: Danh
Originally Posted By: SevenBizzos
Move out of IL.


As Illinois is one of the few states that doesn't tax retirement income (pension plans, 401k and IRA withdrawals, social security, etc.), this answer may not be quite so simple for retirees.


So far. They are so far in the hole, I would not count on this continuing.

Not to mention, the property tax burden and other taxes are pretty high. Meaning IL isn't a fiscal paradise for retirees. And isn't about to get better in the next generation or so.
 
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