rovineye Posted January 19, 2004 Report Share Posted January 19, 2004 Fatbastard said: With little use the brain starts to die, self worth starts to diminish, I will keep sharp with endless hours of 4 across. That ought to do it! Link to comment Share on other sites More sharing options...
Nervous_Dog Posted January 19, 2004 Report Share Posted January 19, 2004 There used to be a web page or a formula to work out how much you wanted to have when retired, and when you thought you would die (So you could pull down on the savings). Anyone have that? I thought I saw it posted here. Need to feel depressed JB Link to comment Share on other sites More sharing options...
JaiGuruDev Posted January 20, 2004 Report Share Posted January 20, 2004 I believe payments from an Annuity may be taxed as income, but check with your bread-head. There's an Annuity calculator at: http://www.moneychimp.com/calculator/annuity_calculator.htm The other examples depend on what one invests in. For example; income funds may be taxed, but Federal Tax-Free funds are not. Vanguard has a fund called California Long-Term Tax-Exempt Fund which is Federal and California Tax-Free. Since inception it has returned 7.23% tax free. Not bad, but who knows what it's going to do in the future. Right now it's returning the high-5's As far as paying tax goes, it all depends on how much is pulled out of one's taxed account. If one pulls 55k baht out every month, they'll have to pay $2,204 (for year 2003). If you're interested in other numbers, have a look in the 2003 Tax Table Link to comment Share on other sites More sharing options...
JaiGuruDev Posted January 20, 2004 Report Share Posted January 20, 2004 There's a simple Retirement Calculator at: http://www.moneychimp.com/calculator/retirement_calculator.htm Link to comment Share on other sites More sharing options...
JaiGuruDev Posted January 21, 2004 Report Share Posted January 21, 2004 Here's another thought on taxes: One only needs to pay taxes on the return - not on what they spend. So in the $400,000 case, if it were returning 6% one should only pay taxes on the $23k it would earn -- not the amount spent to live. This is good to know if one is spending down their principal. If one wants to spend down the $400k by the time they're 65 (assuming they're 50 now), they can take out 30k a year (adjusted for 3% inflation) yet only pay tax on the $23k or so that it earns the first year. And since the pricipal is being spent down, the amount returned each year drops which means the tax owed will drop each year. The second year would have them spending $30.9k, but paying taxes on $21.7k. The third year would have them spending $31.8k, but paying taxes on $21k. 2003 Federal Tax on $21.7k would be around $2354 considering the standard deduction of $4.7k. Link to comment Share on other sites More sharing options...
Nervous_Dog Posted January 21, 2004 Report Share Posted January 21, 2004 thanks Link to comment Share on other sites More sharing options...
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