Retirement, Social Security, and Wages

[BB_TX]

I know there have been a number of you retiring in recent times. Since I am approaching that, I have a question. I know if you start drawing SS at 62 and continue to work, the SS may be reduced if your wages are greater than some number. Question. Does income from investments such as 401K, IRA, mutual funds, etc. also count against SS? And do you pay income tax on SS income? Let's see. To keep it tractor related, I need to know how much I will have available to spend on tractors and implements. /forums/images/graemlins/grin.gif

 

[ronjhall]

<font color="blue"> greater than some number. </font>
That number is $12000 this year. After you make that amount at a job, SS takes $1 for every $2 you earn above $12000.
<font color="blue"> Does income from investments such as 401K, IRA, mutual funds, etc. also count against SS? </font>
Mostly they do not. But you are allowed to make about $46000 before you have to pay taxes on 85% of your SS money.
There are a lot of different rules depending on your income and if you have a wife etc. I went to see a CPA to get me started on all the ins and outs. But things have changed. I'm doing some consulting with the company that I retired from. This is going to change my taxes from what I planned at first of year.
Find a good accountant that knows the rope for retired persons. It will be good money spent if just for peace of mind.
Retirement is great. /forums/images/graemlins/cool.gif Ask txdon. /forums/images/graemlins/grin.gif

 

[txdon]

They are calling me back to work and saying that my 2 week vacation is over and that they are overworked. I think not! /forums/images/graemlins/grin.gif

Yep, Retirement is great. /forums/images/graemlins/smile.gifThree weeks into retirement and I feel like a kid in a chocolate factory, except the chocolate is time. Even though I now have about 50 more hours a week that are mine I still need more. I really can't believe I had enough time in the week to work. Sunday evenings are no longer contaminated with the thought of having to go to work in the morning!

I Can't help you with SS though because I retired on a pension that was only dependent on number of years worked not age.

You will like being one of us. The few, the proud, the retired. Ahhhhh.

 

[BB_TX]

You appear to be adjusting quite well, Don. I don't see a lot of stress there. I think I can get used to that. /forums/images/graemlins/smile.gif
2 yrs, 3 mos and counting. I have still got plenty of time to get all the financials worked out, but it never hurts to start planning early.
Ron - thanks for that info. We have a very good CPA that does the books for our small business. I plan to talk to him as well as a financial planner a little later.

 

[Farmwithjunk]

TxDon, you just salvaged my day. I'm having one of those "Why do I have to get up and go to work" days. I'm just a few days from 4 years to go. I'll be 53 and done with the clock punching routine. Your rendition of what retirement is will be my light at the end of the tunnel for today.

There's so much I want to do. I get home now at the end of each day and work until bed-time. I'd sure like to have more time to devote to the home place.

My wife will join the ranks of "previously employed" 4 months after I lay down my tools. She'll be a mere 48.

I hope you enjoy your retirement for a LOOOOOOOOOOOOOOONG time. After your description of how life is for you now, I'M enjoying your retirement!

 

[MacLawn]

Wow, Farmjunk, that is young to be retiring! You must be already retired by now, since your post was dated 11-22-05, almost 5 years ago. So, how is it going? I am really looking forward to that day for me - anywhere between about 8 months and 8 years to go, depending on finances. Earliest I could retire is 8 months from now, but of course, if I keep on a longer, it will be more money. My choice is earlier. We will see...

 

[nue2farm]

Shoot guys, I retired at 62, moved almost 2000 miles with no destination in mind other than "Southern Missouri Ozarks". We found our piece of paradise.

I have been busier than I ever was when I had a "job" and have enjoyed it all. It is great not having a set routine and no Monday dreads....:laughing: Hopefully many of you will get a chance to enjoy retirement soon...:thumbsup:

 

[ydelta]

Yes, I was wondering also how it is being retired now since the economy collapse and all. So many have been affected in so many different ways.

 

[LBrown59]

Wow, Farmjunk, that is young to be retiring! You must be already retired by now, since your post was dated 11-22-05, almost 5 years ago. So, how is it going? I am really looking forward to that day for me - anywhere between about 8 months and 8 years to go, depending on finances. Earliest I could retire is 8 months from now, but of course,
*if I keep on a longer, it will be more money.
My choice is earlier. We will see...

*True but if you don't live long enough to enjoy it what good does it do you ?
Saw it happen with both my dad and my father in law.

 

[Travelover]

I retired at age 54 - feel like I have been given an extra 10 years of life. Hard to put a price on it.