Would you explain tax exempt income? I get paid through Medicaid to be full time caregiver for grown disabled son. That money is exempt from taxes of all kinds since we live in the same home. My W-2 shows it as exempt and I never include it in my AGI. In your opinion will that be part of the social security taxation calculation?
This was an EXCELLENT video!! This is the kind of advice I NEED. (Self employed, got a late start.still working. No pension, no 401K. I've got 5 years to make something happen. Wish I could hire YOU!!!
@foundryfinancial I will be sure to keep watching. I need all the financial advice I can get. Everyone always says, "oh yeah, if you wait to pull your SS until full retirement age, then you can earn all you want!!" SURE you can. But nobody ever talks about taxes. You broke it down very concisely and explained it in a way even I could understand!😊
This is an incredible video. For years I couldn't exactly figure out the SS/income tax formulas and I didn't have a word for the SS tax torpedo. There is a lot to digest here. Txs!
this is such a convoluted mess - there's no way for the average guy to manage any of this on his own. the tightrope the average person has to walk just to survive and not wind up in a homeless shelter after 45 years of working... Is there a way to retire without even touching your SS? What if you leave it past age 70? Are there penalties or a big drain opens and you hear a sucking sound as all your money back to congress?
Depends on how much money you have saved and whether you have a pension (which is rare!). If you have a large savings you could start by living on disbursements from that and then using the increased SS to reduce future withdrawals. For many - the answer is probably no.
@@foundryfinancial - it's hard to say what is "large" - it's very large for me, but not a million. I need to learn more about the Roth conversion - i'll check your videos for more on that. Only 60 this year, so i've got at least 2 years, and probably closer to 5.
Doesn’t need to be a million - depends on your spending needs, can be much less. If you don’t have a financial advisor, I might check out some software to help you play with the numbers or find an advisor to help you create a plan.
Where is the standard deduction in this calculation. MAGI would be after deducting the standard deducti9n, yes? So 30,200 minus Std deduction would leave you at MAGI of about 16200. Is that not how this works?
Finally, someone explained an understandable reason on why I should delay taking social security. Just running cold numbers didn't make sense, but the tax implications are tremendous. Most of our retirement money is in a 401K, so we will be torpedoed big time.
Great video...eye opener for sure. I was not aware of this at all. So should passive income (from rentals) be considered "other income?" and how is it taxed during retirement?
You keep referring to money "earned"; but it is, in reality, money taken out of savings, investments, or SS, right? Some of this was earned in the past but is now not earned income, or am I missing something? Thank you.
Never heard of the tax torpedo before I’m hoping to retire next year and I’m realizing I have Saved like crazy, but I don’t have any clue how to start taking all that money out.
Seems I just found a new favorite channel!! At 10 years away from the prospect of retirement, I am grateful for TH-cam! And your channel 🙏🤝 going to spend a few months laying out a plan then give you a call when I’m completely confused and overwhelmed 😅
Dear Kevin, thank you for your videos! ❤ TH-cam KEEPS UNSUBSCRIBING us from your channel. Please reach out to TH-cam and ask why? TH-cam Feedback is being ignored from people who are not professional bloggers.
Well done explaining the unexplainable. Death and Taxes... I'm hoping in the next 3-4 terms, we get a congress and president that are fiscally responsible and can make taxes fair for everyone. I feel that we've been double or triple taxed over the last 30 years and they continue to look for ways to generate more income taxes squeezing out every last drop with overly complicated formulas to keep people ignorant so there's not an outright riot.
Have you heard of the tax torpedo before?
Would you explain tax exempt income?
I get paid through Medicaid to be full time caregiver for grown disabled son. That money is exempt from taxes of all kinds since we live in the same home. My W-2 shows it as exempt and I never include it in my AGI.
In your opinion will that be part of the social security taxation calculation?
This was an EXCELLENT video!! This is the kind of advice I NEED. (Self employed, got a late start.still working. No pension, no 401K. I've got 5 years to make something happen. Wish I could hire YOU!!!
Glad it was helpful! I really appreciate your kind words.
@foundryfinancial I will be sure to keep watching. I need all the financial advice I can get. Everyone always says, "oh yeah, if you wait to pull your SS until full retirement age, then you can earn all you want!!" SURE you can. But nobody ever talks about taxes. You broke it down very concisely and explained it in a way even I could understand!😊
This is an incredible video. For years I couldn't exactly figure out the SS/income tax formulas and I didn't have a word for the SS tax torpedo. There is a lot to digest here. Txs!
this is such a convoluted mess - there's no way for the average guy to manage any of this on his own. the tightrope the average person has to walk just to survive and not wind up in a homeless shelter after 45 years of working... Is there a way to retire without even touching your SS? What if you leave it past age 70? Are there penalties or a big drain opens and you hear a sucking sound as all your money back to congress?
Depends on how much money you have saved and whether you have a pension (which is rare!). If you have a large savings you could start by living on disbursements from that and then using the increased SS to reduce future withdrawals. For many - the answer is probably no.
@@foundryfinancial - it's hard to say what is "large" - it's very large for me, but not a million. I need to learn more about the Roth conversion - i'll check your videos for more on that. Only 60 this year, so i've got at least 2 years, and probably closer to 5.
Doesn’t need to be a million - depends on your spending needs, can be much less. If you don’t have a financial advisor, I might check out some software to help you play with the numbers or find an advisor to help you create a plan.
Where is the standard deduction in this calculation. MAGI would be after deducting the standard deducti9n, yes? So 30,200 minus Std deduction would leave you at MAGI of about 16200. Is that not how this works?
I have the same question.
Finally, someone explained an understandable reason on why I should delay taking social security. Just running cold numbers didn't make sense, but the tax implications are tremendous. Most of our retirement money is in a 401K, so we will be torpedoed big time.
Than you!
Great video...eye opener for sure. I was not aware of this at all. So should passive income (from rentals) be considered "other income?" and how is it taxed during retirement?
Thanks! It’s taxed as ordinary income.
Excellent. Always watch the entire vid
You keep referring to money "earned"; but it is, in reality, money taken out of savings, investments, or SS, right? Some of this was earned in the past but is now not earned income, or am I missing something? Thank you.
3:28 Is married $32k or $34k ?? Chart says $34k, or does that change later in this video?
With pension, annuity, SS benefits and without earned income, FICA should not be taxed. Is that correct?
Is the DIY software mentioned available?
12:29 Should the Provisional income on the 62 column say $54,986 ??
Never heard of the tax torpedo before I’m hoping to retire next year and I’m realizing I have Saved like crazy, but I don’t have any clue how to start taking all that money out.
Taking money out is an art form, because there are so many long and short term tax calculations. Congratulations on the upcoming retirement.
Seems I just found a new favorite channel!! At 10 years away from the prospect of retirement, I am grateful for TH-cam! And your channel 🙏🤝 going to spend a few months laying out a plan then give you a call when I’m completely confused and overwhelmed 😅
Ha! Second video of yours I’m watching and I feel the rabbit hole is about to get really deep 😂
And this is why people hate the government.
how depressing all this taxes!
Well worth watching 😊
Between my pensions and taxable brokerage accounts I'm just going to assume all my Social Security goes to paying taxes.
It will be hard to navigate around tax on your social security with a pension.
Dear Kevin, thank you for your videos! ❤ TH-cam KEEPS UNSUBSCRIBING us from your channel. Please reach out to TH-cam and ask why? TH-cam Feedback is being ignored from people who are not professional bloggers.
Well done explaining the unexplainable. Death and Taxes... I'm hoping in the next 3-4 terms, we get a congress and president that are fiscally responsible and can make taxes fair for everyone. I feel that we've been double or triple taxed over the last 30 years and they continue to look for ways to generate more income taxes squeezing out every last drop with overly complicated formulas to keep people ignorant so there's not an outright riot.