Originally Posted by
Flyinhigh
"How long am I going to live" is the unknown in this whole planning equation. You can look at actuarial tables, plot your family history, get a complete physical workup and then get hit by a truck coming home from the doctor's office. I agree that Social Security is a Ponzi scheme and is doomed to failure. Also, think about this. You pay into the fund with after tax dollars, but 85% of your witdrawals are taxed as ordinary income!!
We live in a very tax friendly state (Mississppi). None of my pensions are taxed, no IRA or 401(K) funds are taxed and when you turn 65 they lower your property tax about 20%. The only state tax I am liable for is on dividends, interest, etc. and, with a very generous standard deduction or all of your federal deductions, plus a very generous exemption, those taxes are zero.
Just trying to generate a little talk about planning and dealing with this whole retirement thing.
Sounds like you have a good handle on everything, tax avoidance is key for long term benefits to you and your estate.
Originally Posted by
tomgoodman
FWIW, my financial advisor agreed with you: "We anticipate changes in the Social Security payment formula. The details of these changes are still unknown, but they will not be to your advantage. We suggest that you begin collecting benefits as soon as possible."
Good point Tom, I think any advisor worth his salt would give the same advice.
Given the long term trend, the future is not going to be to our advantage, but the real irony is that it is going to hurt those who can least afford it the most.