Social Security - your thoughts?

#501
#501
LadyVolette said:
Those with of us with some sense have planned with other investments, but in working with the elderly, some people have just betted on social security to make due, and it ain’t pretty.. never assume people will do the smart thing or plan ahead for that matter
Click to expand...
And never assume everyone has the same background, opportunities and the ability to contribute
 
#504
#504
lawgator1 said:
You continue to miss the forest for the trees.

I am not saying you are wrong about averages and what is likely.

I'm saying that some people, along the way, will retire at a very bad time to rely on those assets. Consider people retiring in 2008-09. The market lost just over 50% of its value.

Folks getting SS got the same they got the year before and the next year. Had those folks been dependent on income from the privatized platform you speak of, the result might have been disastrous for them.
Click to expand...
You’re missing everything.

Consider people retiring in 2008-09. The market lost just over 50% of its value.
Click to expand...

False. That’s just flat wrong.
The market never lost 50% of its value. Not in ‘31, not in ‘74, not in ‘02, and certainly not in ‘08.

You are planning for something that has never happened.

And EVEN IF:
- A 50% drop hit
- A soon to be retiree was 100% Equities

They would STILL be better off than SS
 
  • Like
Reactions: InVOLuntary, LadyVolette and McDad
#505
#505
Seeing these posts makes me so thankful we decided to go with asset management. I just don't have the mind for this like some of you guys do.
 
Last edited:
#506
#506
gcbvol said:
Seeing these posts makes me so thankful we decided to go with asset management. I just don't have the mind for this some of you guys do.
Click to expand...
Not sure if you are being sarcastic 😂 I’m also pretty financially savvy if you are not throwing shade 😂
 
#508
#508
LadyVolette said:
Not sure if you are being sarcastic 😂 I’m also pretty financially savvy if you are not throwing shade 😂
Click to expand...
100% sincere. My career was in data analytics, but finance has never been comfortable for me.

When it comes to investing and tax management/maneuvering, I prefer someone with expertise versus doing it myself.
 
  • Like
Reactions: LadyVolette
#512
#512
lawgator1 said:
The people who retired say, in 2007 would not have been placed in a bad spot, had their retirements been tied to equities or bonds?
Click to expand...
Had a coworker who retired about 2000 and the company had just started allowing folks to choose a lump sum retirement in lieu of a monthly annuity. He choose the lump sum and invested heavy into surging dot com stocks which within a year had a huge correction. He lost 75% of his lump sum and decided to eat a bullet. Hard to recover if you’re too heavy into equities and they take a major correction right when you want to begin living off those funds. The old 60/40 rule isn’t sexy, but can save you from having to sell equities when they’re way down.
 
#513
#513
gcbvol said:
100% sincere. My career was in data analytics, but finance has never been comfortable for me.

When it comes to investing and tax management/maneuvering, I prefer someone with expertise versus doing it myself.
Click to expand...
What I’ve found is you are well served to do your own research even if you’re paying someone for expertise. I’ve got some money with 2 separate financial advisors who are both fiduciaries. Neither knew the answers to my social security question although one of them had a resource to call for clarification. BTW, when I called the SS office they gave me an incorrect answer.
 
  • Like
Reactions: gcbvol, tbh and BernardKingGOAT
#514
#514
walkenvol said:
What I’ve found is you are well served to do your own research even if you’re paying someone for expertise. I’ve got some money with 2 separate financial advisors who are both fiduciaries. Neither knew the answers to my social security question although one of them had a resource to call for clarification. BTW, when I called the SS office they gave me an incorrect answer.
Click to expand...
impossible, LG told us there is no risk with SS.
 
#515
#515
BernardKingGOAT said:
And never assume everyone has the same background, opportunities and the ability to contribute
Click to expand...
in my experience the problem is will.

My first two years of working I was below the poverty line in Atlanta. I was still able to put money away for retirement. It wasn't sexy, but I didn't miss any meals or bills.
 
  • Like
Reactions: walkenvol, tbh and BernardKingGOAT
#516
#516
gcbvol said:
Seeing these posts makes me so thankful we decided to go with asset management. I just don't have the mind for this like some of you guys do.
Click to expand...
My wife and I self manage but meet with an advisor once a year. We just want to verify we're on track to meet our goals of retirement once our boys graduate HS. Always good to get another set of eyes.
 
  • Like
Reactions: walkenvol, tbh, BernardKingGOAT and 1 other person
#517
#517
utvolpj said:
My wife and I self manage but meet with an advisor once a year. We just want to verify we're on track to meet our goals of retirement once our boys graduate HS. Always good to get another set of eyes.
Click to expand...
We did mostly the same up until retirement, and did a good job of it (imo). It's just retirement is a different game for us, and we really like the expertise in areas we do not possess.
 
#518
#518
gcbvol said:
We did mostly the same up until retirement, and did a good job of it (imo). It's just retirement is a different game for us, and we really like the expertise in areas we do not possess.
Click to expand...
I can imagine it's a bit different when you turn making money into making money last a lifetime. We have 8 yrs left and will likely do something similar
 
  • Like
Reactions: gcbvol
#519
#519
gcbvol said:
We did mostly the same up until retirement, and did a good job of it (imo). It's just retirement is a different game for us, and we really like the expertise in areas we do not possess.
Click to expand...

the tax thing is why I'm going to go your route - so many permutations
 
  • Like
Reactions: gcbvol
#520
#520
volinbham said:
the tax thing is why I'm going to go your route - so many permutations
Click to expand...
Yep, I'm fascinated about all the avenues they can take to manage taxes. I was so naive, and thought it was pretty much managed by Roth vs non-Roth distributions.
 
#522
#522
walkenvol said:
What specifically are you referring to manage your taxes?
Click to expand...
Honestly, I don't recall everything we've spoken about there. He mentioned there are a few things he can do with moving money around. It's mostly about timing of distributions and selling some stuff when lower to balance bigger gains. Also, something about mixing in Roth conversions being an avenue. He talks a lot about managing tax brackets.
 
  • Like
Reactions: walkenvol
#523
#523
gcbvol said:
Honestly, I don't recall everything we've spoken about there. He mentioned there are a few things he can do with moving money around. It's mostly about timing of distributions and selling some stuff when lower to balance bigger gains. Also, something about mixing in Roth conversions being an avenue. He talks a lot about managing tax brackets.
Click to expand...
Loss harvesting is fairly common knowledge and simple to understand. Paying attention to your tax bracket when taking distributions from pretax vs post tax accounts is wise also. I’m still undecided on ROTH conversions and the financial community is pretty split also. There may be some years between starting retirement and RMD’s at 73. I’d be comfortable paying 12% tax on funds converted but the impact will be minimal if there are any opportunities. Not sure if losing the 22% or more is worth the conversion as if the investments go well the taxes sacrificed now may well outgrow the future tax liabilities? Hard call with a lot of assumptions to arrive at a solid answer IMHO.
 
  • Like
Reactions: gcbvol
#524
#524
walkenvol said:
Loss harvesting is fairly common knowledge and simple to understand. Paying attention to your tax bracket when taking distributions from pretax vs post tax accounts is wise also. I’m still undecided on ROTH conversions and the financial community is pretty split also. There may be some years between starting retirement and RMD’s at 73. I’d be comfortable paying 12% tax on funds converted but the impact will be minimal if there are any opportunities. Not sure if losing the 22% or more is worth the conversion as if the investments go well the taxes sacrificed now may well outgrow the future tax liabilities? Hard call with a lot of assumptions to arrive at a solid answer IMHO.
Click to expand...

If a charity will be a beneficiary of an estate then keeping those assets in a traditional IRA makes more sense than converting to a Roth and paying taxes.
 
  • Like
Reactions: walkenvol
#525
#525
walkenvol said:
Loss harvesting is fairly common knowledge and simple to understand. Paying attention to your tax bracket when taking distributions from pretax vs post tax accounts is wise also. I’m still undecided on ROTH conversions and the financial community is pretty split also. There may be some years between starting retirement and RMD’s at 73. I’d be comfortable paying 12% tax on funds converted but the impact will be minimal if there are any opportunities. Not sure if losing the 22% or more is worth the conversion as if the investments go well the taxes sacrificed now may well outgrow the future tax liabilities? Hard call with a lot of assumptions to arrive at a solid answer IMHO.
Click to expand...
There were a couple of things he mentioned I'd never heard before. Need to read through some stuff and/or ask him. I'll come back.
 
  • Like
Reactions: walkenvol
New posts
You must log in or register to reply here.
Advertisement





Back
Top