Reply to How much annual budget do you need to feel comfortable in retirement?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Depends on what style you are accustomed to.  I don't understand the point of these posts.  They aren't too valuable unless your question is what the minimum is for people to retire and what is needed for basic life, and addition of what budget can buy nicer things.  There is always a floor..  There are basic needs people have to meet to survive (shelter, food, healthcare, and for elderly - also some assistance).

But there is no ceiling to luxury spending.  People get mad when someone says how they need 7 figures passive income to enjoy themselves in retirement, but it can easily be spent by people with very high spending habits wanting luxury lifestyle, multiple homes, paying grandkids private schools and homes for the kids who aren't well off, travel, charity donations, pricey personal healthcare, etc.  Some also want to leave sizeable wealth to their descendants and that's their goal in retirement.  I think it would help to separate these goals that go beyond "comfortable in retirement" that tend to get blood boiling for majority of population that doesn't have 8 figure NW [/quote]

Mostly because we think you should be paying more in taxes.[/quote]

All of our income is taxed at over 50% when you include federal, state, fica, etc

Even cap gains are taxed at 22 fed and 7% state.

So nope we don't need to pay more taxes.  
I don't hide money anywhere or have a way to protect it from taxes.

[/quote]

I don’t see how anyone’s income could be taxed at more than 50%. I mean my take home is less than 50% of what I earn but that is bc it includes retirement contributions and health insurance. [/quote]

Because if you are earning $1.5M+ as W2 income, anything over ~$512K is taxed at 37-39%+, FICA is 7.5% (on lower amounts), medicare is 1.45%, state is ~10%.  Earn higher and even higher percentage is taxed at those rates.  So yes the "majority" is taxed at 45-50%+ quite easily.

[/quote]

That doesn’t add up, FICA is 6.2% up to $176,000 of income. Federal is 37% only after $626,000, income before that is taxed at lower rates. 10% is very high for a state tax rate, you should think about moving to a lower tax state. VA is 5.75%. I’d also be surprised if you didn’t have some income that’s not taxed, retirement contributions, health insurance premiums, etc.[/quote]

Yes the lower is taxed lower.  But if you have W2 income of well over 1M and any interest/dividend income is taxed as "income" you will have A LOT taxed at over 37% and your top state tax rate.  at that point your "health insurance premiums" and your "retirement contributions" are really nothing in comparison.  It's simple math.  Yes the lower 500K is taxed less, obviously I get that.  But my $1M+ in dividend/interest is also taxed as "income" along with my real income over ~$600K.

Point is, many of us with HHI are not "hiding from taxes" and certainly pay our fair share, we dont need to Pay more taxes.  [/quote]

Would you prefer to make a lot less and pay a lot less in taxes?  :lol:

You are paying higher taxes for your ability to make this crazy level of income in the first place.  We all subsidize access to low wage labor pool proportionate to how much we benefit from the system. [/quote]

Happy to pay taxes, but after years and years of paying at the top, with majority of income being W2/interest/dividends, We pay plenty.  We vote D, against our own interests (it's the only perk of the current admin shitshow is lower taxes, oh and the extension and yearly increase of the estate tax at the 14-15M+ per person).  But at some point, no I'm not responsible for "more".  I'm not hiding anything, I'm not paying 10% overall.   The solution is not to tax at 60/70%.

And no I don't want to make less.  we worked hard, made choices to ensure that was not us.  And if I only made $100K, I'd live within my means.[/quote]

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