Truck Payments: One Large OR Two Small Per Month

[SilverSpur]

as opposed to sitting around, yes.

But if you take it out of an investment yielding 15%, that's a net loss of $600 . . .




I have those going back to 1989 or 1990, or at least I did. I'd have to see if they all transferred to my old MacClassic . . .

Anyway, they're quite useful. Mine are organized by the 1040 itself, and pull from my checking spreadsheet to largely fill them out.

But I succeeded in getting almost everything into Roth, so I'll never end up owing income tax again until I inherit in a way that generates income.

I actually have to do gratuitous Roth conversions to increase my income enough to get certain credits (if you don't hit 125% for the dust for the medical insurance fairy, you get involuntarily placed on medicaid!). I haven't itemized sine I paid off the house early 30 years ago!





It's tough to extrapolate for 15 years back, as I don't have data on one account earlier than 2015. But up 277% since the end of 2015 (i.e., nearly quadruple). My withdrawals since retirement are about $6k more than was added during that period.

caveat: investing the way I have without the 75 year planning horizon I had would be downright reckless! And what you can do when there is no risk of a zero is significantly different than when you have to worry about it.

Anyway, *if* you in the same bracket while working and retirement, there is a wash between regular and Roth--when you aren't maxing them out. That is, if your choice is between $1,000 into regular, and $800 Roth with $200 taxes, the after-tax amount you withdraw is the same either way. But if you could max out the regular, and still have money to put aside, you effectively get a larger nested by doing all or part as Roth.

Now, if tax rates are going up in the future, you benefit moe from the Roth, whereas if they go down, it might makes more since to take the deduction now and pay later. (and the idea that taxes might decrease in the future strikes me as wishful thinking).

I like my Roth because at my age (71)when start to draw it out there are not taxs. Converted my wifes IRA to a Roth. Last year. She is quite a few years younger than me. We both retired permanently when I reached 63.

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[dochawk]

I retired at some indeterminate point during covid . It was more a matter of recognizing it than a decision . . . [well, I *could* restart my. business from scratch, but why?]

So that left seven or eight years before medicare. Which is why I do the roth conversions of my remaining non-roti funds in controlled amounts--then the Obama Fairy comes and sprinkles Subsidy Dust on my health care from the exchange, keeping me away from medicaid.

I could make a tax-free withdrawal to pay a truck off instantly, but I'd rather it sit and make money. Gosh, if ford will offer me 0/72, just segregating the purchase price will throw off enough to pay it off! ?

 

[fordtruckman2003]

This thread really turned into investment talk. ?

 

[Sig Oris]

Pay off whatever debt you have with the highest interest rate first. I'm really in no position to give advice so this is a well meant suggestion if it might apply. I f you carry any credit card debt with a higher interest get rid of that sh*t first.

the Dave Ramsey principle

 

[BMCGC]

This thread really turned into investment talk. ?

it is sad that we live in the information age and most people are not savvy when it comes to finances. One of the next big crises we will face is the number of seniors living in poverty, trying to make it solely on SS.

A 59 year old friend of mine who has made an excellent salary for years went to a financial planner to discuss retirement. Her advice: Sell the airplane, downsize the house, save 50% of you and your wife's income, work full time until you are 65, then part time if you want and do not take SS and fully retire until you are 67. He thought he was going to be good to retire at 60. What a wake-up call that was.

 

[fordtruckman2003]

it is sad that we live in the information age and most people are not savvy when it comes to finances. One of the next big crises we will face is the number of seniors living in poverty, trying to make it solely on SS.

A 59 year old friend of mine who has made an excellent salary for years went to a financial planner to discuss retirement. Her advice: Sell the airplane, downsize the house, save 50% of you and your wife's income, work full time until you are 65, then part time if you want and do not take SS and fully retire until you are 67. He thought he was going to be good to retire at 60. What a wake-up call that was.

Well, I know a lot of people just struggling to survive with no time or money to save. By time I retire in 20+ years SS won't exist, but I'm paying thousands of dollars into it every year. My retirement is all depending on me.

 

[BMCGC]

Well, I know a lot of people just struggling to survive with no time or money to save. By time I retire in 20+ years SS won't exist, but I'm paying thousands of dollars into it every year. My retirement is all depending on me.

Many people are struggling because they make poor choices and they do not learn from their mistakes. We cannot predict the future, but I believe that SS is here to stay. It is a wise move to take responsibility for your retirement. Fifteen years ago we had one source of income, today we have nine revenue streams that will provide us income for the rest of our lives. We are average people that decided to financially educate ourselves and live within our means, the same that anyone else can do.

 

[Eighthtry]

I started making payments to myself and writing checks for cash for my cars/trucks. I put 200,000 miles plus on all of them. I started this after choking in 1974 on my $172/month 3 year payment for my 1974 olds Cutlass Salon and my $169/month all bills paid apartment in 1974. I swore never again and, guess what, never again. Damn cars have gotten expensive though.

 

[dochawk]

This thread really turned into investment talk. ?

well that does drive whether it make sense to pay of quickly or slowly . . .

Sell the airplane,

If this is part of the range of options, the situation is indeed dire!

My advisor is nudging me the other way! ? ? "You've accumulated this. You can spend some and enjoy it!" [but again, I'm not endanger of running out.]

By time I retire in 20+ years SS won't exist, but I'm paying thousands of dollars into it every year. My retirement is all depending on me.

There was never a time when SS was supposed to be enough to retire upon; it was always supposed to be a supplement and safety net.

That said, I, too, assumed that it wouldn't be there when I reached that age. By chance, rather than design, my business as a young attorney was set up in a way that I couldn't contribute to SS (as self employment tax, under the pre-1999 rules). Even so, I'm scheduled for an upper tier (but not maximum) benefit. But due to my planning, it won't be a significant part of my income.

 

[fordtruckman2003]

There was never a time when SS was supposed to be enough to retire upon; it was always supposed to be a supplement and safety net.

Unfortunately I have family trying to survive on that as the sole income. It doesn't always work. ?

 

[GMPowerboost]

Well, I know a lot of people just struggling to survive with no time or money to save. By time I retire in 20+ years SS won't exist, but I'm paying thousands of dollars into it every year. My retirement is all depending on me.

Being under 25 still, if it won't be there for me (I'm 99% sure it won't be there to do anything other than take a part of my paycheck my entire career), I'm of the opinion I'd rather see it burn and go away sooner than later. I wish it could be put into some account instead that I would see the return on instead of what they choose to give me if I ever do get anything out of it.

 

[RVCoder]

Being under 25 still, if it won't be there for me (I'm 99% sure it won't be there to do anything other than take a part of my paycheck my entire career), I'm of the opinion I'd rather see it burn and go away sooner than later. I wish it could be put into some account instead that I would see the return on instead of what they choose to give me if I ever do get anything out of it.

As someone who has contributed to it for my entire working life (16 - 65), I need you and other young people to continue your contributions. Let me at least draw a few cents on the dollar for 5+ years of my retirement.

 

[fordtruckman2003]

Being under 25 still, if it won't be there for me (I'm 99% sure it won't be there to do anything other than take a part of my paycheck my entire career), I'm of the opinion I'd rather see it burn and go away sooner than later. I wish it could be put into some account instead that I would see the return on instead of what they choose to give me if I ever do get anything out of it.

I've felt that way for 25+ years. ?

401k is good for putting the responsibility on the individual.
SS annual reports in the 1980s predicted the money would run out around 2030 and the date has barely moved. Withdrawals outpace deposits with everyone living longer. Can't build interest on money that isn't available. Only way out is higher SS taxes coming from somewhere. The bandaid of increasing retirement age for SS hasn't changed anything. Be sure to thank all the people in Congress who have done nothing the last 40 years to address the issue. They won't be around when you retire with no SS.

 

[GMPowerboost]

As someone who has contributed to it for my entire working life (16 - 65), I need you and other young people to continue your contributions. Let me at least draw a few cents on the dollar for 5+ years of my retirement.

I feel bad for you and my dad and the baby boomers but damn is it ever looking bad going forward as Ill get nothing too.. and seems like they should of had some of the surplus some years and invested it to be a rolling investment that they can sustain the less people in and more people retiring. Hopefully you can get something out at least.

I've felt that way for 25+ years. ?

401k is good for putting the responsibility on the individual.
SS annual reports in the 1980s predicted the money would run out around 2030 and the date has barely moved. Withdrawals outpace deposits with everyone living longer. Can't build interest on money that isn't available. Only way out is higher SS taxes coming from somewhere. The bandaid of increasing retirement age for SS hasn't changed anything. Be sure to thank all the people in Congress who have done nothing the last 40 years to address the issue. They won't be around when you retire with no SS.

And I'm afraid this is going to hit you hardest as it you put in for so long already and yet not long enough to receive it before it goes away. And yet our (IMO worthless) senators and representatives that have taken how many bribes, (wait I meant donations) who are richer than most of us on average. And they have a government pension too. The 174k annual salary is stupid. Should be minimum wage of the country pro rated to hourly. It was called Public service, not public profiteering sorry for the political side and mention now. Also what other job ever provides Death Gratuity payments?!? those should be none ever as life insurance and cap the age / health requirements to be elected.. as a minimum.. should have a max otherwise let 16 and 18 year olds be in.

 

[BMCGC]

SS is not going away, now or in the future. Too many people that vote depend on SS.

My dad passed away at 65, paid into SS for 47 years and received SS for 1 year.

My mom passed away at 74, paid into SS for 10 years, received SS for 12 years and received about 10x more than she paid into it.

My journey to financial independence was to develop multiple income streams. Currently we have eight separate sources of revenue spread out through the federal and state government, banking, stock market and the private sector. Had I changed my financial habits in my 20's and not my 40's, I would be hiring someone to make these posts for me.

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