Posted on 08/09/2013 6:09:06 PM PDT by Yosemitest
I get you, but problem is that liberal proposals for meddling with private IRA’s has been cropping up in one form or another for the past decade.
So when you hear any liberal mention private IRA’s, there is a knee jerk reaction that they can’t be up to any good.
At the very least, Democrats (Rep. George Miller, e.g.) have advocated limiting any tax advantages IRA’s have. Not fair that people who save get tax advantages and those who don’t save get none, he claims.
I can’t find the source now, but there was a proposal that the gubmint would restore the amounts lost in the recent crash and guarantee a certain % going forward if people would turn over their IRA funds to the gubmint. I’m not joking. This came from a lib bureaucrat.
Sounds great, doesn’t it? Especially if you lost a lot in the crash, which many did. But it’s just another Ponzi scheme and another way for libs to get their grubby hands on money for their union pals and to buy votes.
They’d never just outright say, we’re going to seize your IRA. There would be a pot sweetener for those who got on board first and it would be entirely voluntary, then every crisis would be used to slowly make it mandatory.
Just like Obamacare. Now it’s kind of “mandatory”, but you can weasel out with a small penalty-much smaller than the cost of buying insurance. Eventually that penalty will increase to the point where it is many times more than the cost of the insurance. Then people really have no choice but to buy insurance unless they want to stand on principle.
It always starts small and seems so harmless.
It reduces our taxes significantly, and also brings our adjusted gross income down below the threshold, so we can also make the maximum Roth contributions as well.
Assuming you have sufficient funds set aside for emergencies, deferring all this income has another benefit that many people miss: it imposes spending discipline. You can't spend these retirement funds on a whim. So you adjust your standard of living to the remaining taxable income.
When you retire, you don't have to adjust to a significantly reduced income. We will have almost enough income from various sources to replace our current income, and will only have to withdraw a small amount each month to make up the difference. Or, we can splurge and do some things we've been wanting to do for a while.
I actually expect to withdraw excess funds from our IRA/401(k)'s each year and either put it in the bank or "recharacterize" it into our Roth IRAs. I'll only do enough to bring us up to the top of the 15% marginal income tax bracket. If you are married, that's currently an adjusted gross income of $92,500. This takes maximum advantage of the lower tax rate, as it jumps to 25% after that. And, it draws down the IRA/401(k) balance, so that you reduce the Minimum Required Distributions that start when you reach age 70.
So your solution is to pay Obama the most taxes that you can now, so he can make this a better planet with it.
Sorry, I will deny him my $$$ as I don't think he will make good use of my $$$.
Obama will not be POTUS when I pay the taxes on my $$$. Yours will go to illegals and gays and criminals.
Which our Roths can be used for too.
I am in the same situation as you are.
One thing that is readily ignored here and on talk radio because it doesn't fit a simple black white theme is how many Americans and non-Americans ( many under 65 too as well as over) here end up in nursing homes long term on medicaid=just adding to national debt. And they are hell holes as it is, immigrants do most of the dirty work..
Many don't realize its medicaid paying for the long term nursing care not medicare. And just dumping them out on the street is not an option. And yes, many see their own savings paying for the nursing homes as 'government stealing my money' so they don't like having savings round that they think the government will 'steal' for those nursing bills.
Maybe an idea like the above will generate some personal savings $$$ to pay for SOME of their nursing home expenses that future taxpayers will get stuck with,
Except your money , you said we are better off by giving Obama as much of our $$$ as we can NOW by not deferring our taxes like I do.
Not me. I don't want Obama anywhere near MY $$$,
What conservative advises Americans to spend all their savings NOW so they can be taken care of?
My wife and I have long term care policies.
They aren’t cheap, but it means we don’t have to spend almost all of our savings on nursing home care before Medicaid will pay.
I have a coworker who is single who paid for that and I never understood it in his case.
In your case being married it protects the spouse from financial devastation.
What are the limits on payout of that policy?
I recall~ 2008 here nursing homes were about 6K per month and its still a hellhole. I had a older relative with a bad stroke go to one for over a year.
Yes, my financial advisor tried to sell me one when I was single. I didn’t think it was worth it. That changed when i got married. I looked at the maximum assets and income allowed for Medicaid to pay for long-term care, and it would all but wipe us out. I couldn’t risk doing that to my family.
The benefit level is whatever you want (or can afford). And the premium depends on your age and medical history when you start the policy.
So it assumes you will recover.
My uncle had a real bad stroke in early 80s much of it was his own fault and I guess my Aunts and so he went into a local nursing home for 1+1/2 years and it was a living nightmare for them both,
Their only $$$ break was that the home care was so poor that he was so sick due to their neglect that medicare paid a 2/3s of it, which they wont normally do. But making even more poor decisions he refused to document it for a lawsuit, leaving his wife to an unhappy future.
Now my aunt nurses him at home, a real bad job as she can never get a day off till he dies, and even with that all the costs of the nursing home and fixing up the house and buying equipment so he could live home has them in a bad financial situation.
He prays he dies before she gets ill. He talks about Heaven frequently and imagines meeting his long dead relatives again.
Time to ping this thread to the top of FR.
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