Picking up where I left off in my "Roth IRA, a really stupid idea" thread, here is the update on our 2023 tax return that may help you understand what retirement is like. It's a whole lot better than you might imagine.
For 2023, our income was $78k. That's $56k of social security, $20k IRA withdrawal, and a bit of bank interest. Federal taxes on that is $0. California tax is $0.
Yes, contrary to popular belief, the rich aren't the only ones with big loopholes. Us seniors are not paying any taxes on earned income. And we wonder why the federal debt keeps growing. It's really stupid. My wife and I are living in the lap of luxury and not paying taxes. Meanwhile, the debt just keeps growing.
We did not draw any more IRA money due to inflation. We've been pulling $20k out since I retired. It seems to have had no impact on our spending, yet it must have somehow. My wife does the finances. She tucks away all of her SS into bank accounts for future needs like a new car or big house emergencies like maybe a new roof. I know, it's silly to tuck money away, but she pays all the bills and takes care of the finances, so she can do what she wants. My point is that we actually live on about $62k in one of the most expensive parts of the country.
Our retirement savings are growing at 5x what we withdraw. So even if there was some catastrophic need, I don't see a problem.
I hope that helps give an idea of what retirement finance are.
For 2023, our income was $78k. That's $56k of social security, $20k IRA withdrawal, and a bit of bank interest. Federal taxes on that is $0. California tax is $0.
Yes, contrary to popular belief, the rich aren't the only ones with big loopholes. Us seniors are not paying any taxes on earned income. And we wonder why the federal debt keeps growing. It's really stupid. My wife and I are living in the lap of luxury and not paying taxes. Meanwhile, the debt just keeps growing.
We did not draw any more IRA money due to inflation. We've been pulling $20k out since I retired. It seems to have had no impact on our spending, yet it must have somehow. My wife does the finances. She tucks away all of her SS into bank accounts for future needs like a new car or big house emergencies like maybe a new roof. I know, it's silly to tuck money away, but she pays all the bills and takes care of the finances, so she can do what she wants. My point is that we actually live on about $62k in one of the most expensive parts of the country.
Our retirement savings are growing at 5x what we withdraw. So even if there was some catastrophic need, I don't see a problem.
I hope that helps give an idea of what retirement finance are.
