That whole silliness of 80% of your income needed in retirement hit me one day. My husband had to make a career change 5 years ago when his job was eliminated. He decided to make good use of the CDL he's had all these years and started truck driving. He's now making a little more than $100K, which is roughly half what he made at his old job. It just hit me one day that 5 years ago his 80% would've been $40K. Now it's $80K. We somehow saved a lot of money, both into his retirement account and the bank savings account, when he was making half what he does now. I think our retirement income will be back to half what he's making now and I believe we'll be fine! Retirement incoming in 5 months!
The 80% of pre-retirement income needed in retirement is foolish. Everyone’s number will be different, but once you net out W2 withholding and savings, most will be well below 80% and some closer to 50%.
Yes, it's a lightweight 'rule of thumb' that probable came from the financial planners years ago. People should consider it a basic start in their planning. No more Social Security and Medicare taxes is 7.8% and a drop of income taxes puts you at a 10% drop out the door. Add in work related commute costs, clothing, etc, etc and 15% in reduced expenses is easily met. I suspect that is what the rule is focused on. For others switching states for lower income taxes and property taxes along with a smaller house and reduced costs there are another example of wisely reducing expenses for many folks. A lot of new retirees will benefit by buying a house with cash from savings vs a new mortgage at 6.5%. The tax savings is likely 2% or so thus giving them an untaxable paper return of 8% or higher plus skipping on the upfront loan costs. This also reduces their monthly expenses and income which could have an impact on IRMAA or other programs. So, yes many ways to substantially reduce your expenses going forward.
I retired 22 years ago at 45. Assumed my SS would be nothing because 10 years of goose eggs. Kept getting estimated benefit statements from SS which seemed too high and I thought they were estimating I would return to work. Wasn't until I was 65 I started thinking maybe the estimate was correct. Still not 100% sure. If true it would be from 18 years of maxing out FICA payments. Estimate to get $3800/mo at 70 when I plan to take SS. Kind of wish I'd known how SS worked because I probably wound have continued working since I loved my career. Just loved the added freedom a little more. All due to SS adjusting earnings. Didn't know that had been better than inflation. Cool.
Don’t be surprised if legislation passes to discontinue the tax on Social Security… But… That happens in tandem with reduced Social Security benefits to stem the insolvency issue that is looming.
Either we tax current workers more or we trim benefits somehow. As Josh notes, we've been getting a 30% kicker by using the average wage index vs the median. If the program had been doing that the entire time we would be enjoying a large surplus vs a train wreck in 8 years or so. The least painful way to cut benefits is to use the median number going forward for future retirees.
I will be surprised. Most people near retirement age do not have significant savings. In addition many people are carrying significant debt into their older years making it difficult to retire with social security and what they have saved. The effect of eliminating social security or otherwise forcing older people into insolvency will be a massive burden on someone and that is how political careers are ended. They will either have to pony up the $$ or people have to die sooner and ideally before they can draw benefits. I am guessing it will be a mix of the two.
@@mmabagain That's an idea too. I'm also for stopping the $150+++ Billion we are giving/spending on illegals in the US right now. It's crazy how Dems are OK with this but upset at a possible $78 Billion Social Security shortage in 2033. Huh?
@@danielboughton3624 No one has suggested eliminating Social Security, so why are you saying that? Social Security is looking at a shortfall in the 2033-2035 period based upon the IOUs and their interest running out. This 25% shortfall is sum $78 Billion per year and Congress has many ways to handle this when they finally feel they need to tackle it heads on. Josh has shown us stats showing some 80% of retirees own their own home with some 60% of them being paid off. Another 5% or so are within 5 years of being paid off as I recall. Some of us, like me, can easily afford the current mortgage and we're doing just fine with little other debt. We do have some 10% or so that are living off of Social Security cause they made bad decisions or things happened. There are programs out there to help them (food banks, assisted living, etc) and many have family they can rely on too. I'm thinking these problems you are looking at are smaller than they actually seem.
Either we tax current workers more or we trim benefits somehow. As Josh notes, we've been getting a 30% kicker by using the average wage index vs the median. If the program had been doing that the entire time we would be enjoying a large surplus vs a train wreck in 8 years or so. The least painful way to cut benefits is to use the median number going forward for future retirees.
Don’t we loose what we gained because at age 60 or 62 everybody is switched to cpi even though waiting until 67 full age to take the fruit of our labor ?
@@JoshScandlen Calling SS “tax free” when your taxes increase by receiving it is basically a lie you tell yourself. You should be agnostic as to which specific dollar of income is being taxed because a dollar paid to the government is a loss no matter which bucket you pay it from. Municipal bond interest isn’t really tax free either, for the same reasons.
What an idiot idea. How about increasing the level above $160k income contribute to the program. This would cover SS. The felon and is bootlickers want SS to fail why because rich buddies don't need SS.
That’ll just jack up gas prices along with destroying the environment. We can’t afford that on several levels. Vote blue to raise the SSI cap and eliminate the tax break for those who already make all the money. They really won’t feel the pinch and SSI will be solvent for ages.
I do not have a mortgage or debt, and I live off of SS alone now. I do not buy into consumerism anymore and have no-buy months (since last Nov) whereas I pay fixed expenses and prop/school/local taxes. My income is below the federal poverty line so I do not pay income tax. Expected to get a whopping $35 a month COLA in 2025.
Looks like you made some unfortunate choices, as well as some good ones. Like you, I am debt free. This is good, even essential for most retired people. Unlike you I have multiple streams of income and I paid over $4K in taxes last year. If you are able, consider going back to work. I did and it is wonderful to have the surplus every month. I can be generous with the needy and put half my check into savings. I like driving a nice car and my 2005 is getting long in the tooth. I am saving because I don't want to liquidate any assets and I want to pay cash for my next RX.
QUESTION: If I am a professional pilot and lose my FAA Medical; thereby cant fly professionally anymore...would that qualify me for Social Security disability benefits?
Thank you for your videos mate.. . Crypto education is what the world needs the most right now. I don’t think that buy and hold is a valid investment strategy anymore. Not too diluted and to a degree, follows Evelyn’s trading ideas and signal tips for your portfolio growth and aggressiveness. She is a woman who has not only taught me what the cryptocurrency trading world looks like but a secret to uplift my finance. Buying crypto and waiting for the price to shoot up is not the best way to invest in the market but buying and trading is. Evelyn Infurna’s trade signaIs does the heavy lifting, generating competitive returns for crypto traders and investors in the form of money and peace of mind. Time in the market vs. timing the market. If you keep that mentality as an investor, you will stay calm during the storm! Within some months I was making a lot more money and have continued on that same path...
I agree that there are strategies that could be put in place for solid gains regardless of economy or market condition, but such executions are usually carried out by investment experts or advisors with experience…
Births have gone down generation over generation since the mid 60’s. Since 2000 births have gone down dramatically. Lessening the amount of people available to work. Fewer workers = fewer paying into FICA. Fewer paying into FICA= financial problems for SS, SSI, SSDI, Medicare, etc.. BTW…..We don’t have a separate account for us showing what we’ve paid into FICA and what we’ll get paid from SS. For decades people have been paying for SS, SSI, SSDI, etc. for the generations before. And, if this guy hasn’t paid attention to the goings on in the world. If and when he does, the more he will read Revelations. This guy is wealthy and has no idea how the rest of the country lives and does not tell every way FICA works, including SS.
You can easily see what you paid in at ssa.gov. If you don’t check your income records or know how to calculate what to expect in future ss payments, that’s on you.
I think you have that wrong. Trump has proposed no tax on SS along with no tax on tips. You may want to re check that. I know Harris also recently said no tax on tips but it was after Trump proposed it in Las Vegas.
That whole silliness of 80% of your income needed in retirement hit me one day. My husband had to make a career change 5 years ago when his job was eliminated. He decided to make good use of the CDL he's had all these years and started truck driving. He's now making a little more than $100K, which is roughly half what he made at his old job. It just hit me one day that 5 years ago his 80% would've been $40K. Now it's $80K. We somehow saved a lot of money, both into his retirement account and the bank savings account, when he was making half what he does now. I think our retirement income will be back to half what he's making now and I believe we'll be fine! Retirement incoming in 5 months!
I thought I would just post something to keep your comment from getting lonely.
The 80% of pre-retirement income needed in retirement is foolish. Everyone’s number will be different, but once you net out W2 withholding and savings, most will be well below 80% and some closer to 50%.
Yes, it's a lightweight 'rule of thumb' that probable came from the financial planners years ago. People should consider it a basic start in their planning. No more Social Security and Medicare taxes is 7.8% and a drop of income taxes puts you at a 10% drop out the door. Add in work related commute costs, clothing, etc, etc and 15% in reduced expenses is easily met. I suspect that is what the rule is focused on.
For others switching states for lower income taxes and property taxes along with a smaller house and reduced costs there are another example of wisely reducing expenses for many folks.
A lot of new retirees will benefit by buying a house with cash from savings vs a new mortgage at 6.5%. The tax savings is likely 2% or so thus giving them an untaxable paper return of 8% or higher plus skipping on the upfront loan costs. This also reduces their monthly expenses and income which could have an impact on IRMAA or other programs. So, yes many ways to substantially reduce your expenses going forward.
I retired 22 years ago at 45. Assumed my SS would be nothing because 10 years of goose eggs. Kept getting estimated benefit statements from SS which seemed too high and I thought they were estimating I would return to work. Wasn't until I was 65 I started thinking maybe the estimate was correct. Still not 100% sure. If true it would be from 18 years of maxing out FICA payments. Estimate to get $3800/mo at 70 when I plan to take SS. Kind of wish I'd known how SS worked because I probably wound have continued working since I loved my career. Just loved the added freedom a little more.
All due to SS adjusting earnings. Didn't know that had been better than inflation. Cool.
Don’t be surprised if legislation passes to discontinue the tax on Social Security… But… That happens in tandem with reduced Social Security benefits to stem the insolvency issue that is looming.
Either we tax current workers more or we trim benefits somehow. As Josh notes, we've been getting a 30% kicker by using the average wage index vs the median. If the program had been doing that the entire time we would be enjoying a large surplus vs a train wreck in 8 years or so. The least painful way to cut benefits is to use the median number going forward for future retirees.
I will be surprised. Most people near retirement age do not have significant savings. In addition many people are carrying significant debt into their older years making it difficult to retire with social security and what they have saved. The effect of eliminating social security or otherwise forcing older people into insolvency will be a massive burden on someone and that is how political careers are ended. They will either have to pony up the $$ or people have to die sooner and ideally before they can draw benefits. I am guessing it will be a mix of the two.
@@ItsEricAZ How about we stop giving billions upon billions to foreign countries and help Americans instead?
@@mmabagain That's an idea too. I'm also for stopping the $150+++ Billion we are giving/spending on illegals in the US right now. It's crazy how Dems are OK with this but upset at a possible $78 Billion Social Security shortage in 2033. Huh?
@@danielboughton3624 No one has suggested eliminating Social Security, so why are you saying that?
Social Security is looking at a shortfall in the 2033-2035 period based upon the IOUs and their interest running out. This 25% shortfall is sum $78 Billion per year and Congress has many ways to handle this when they finally feel they need to tackle it heads on.
Josh has shown us stats showing some 80% of retirees own their own home with some 60% of them being paid off. Another 5% or so are within 5 years of being paid off as I recall. Some of us, like me, can easily afford the current mortgage and we're doing just fine with little other debt.
We do have some 10% or so that are living off of Social Security cause they made bad decisions or things happened. There are programs out there to help them (food banks, assisted living, etc) and many have family they can rely on too. I'm thinking these problems you are looking at are smaller than they actually seem.
Either we tax current workers more or we trim benefits somehow. As Josh notes, we've been getting a 30% kicker by using the average wage index vs the median. If the program had been doing that the entire time we would be enjoying a large surplus vs a train wreck in 8 years or so. The least painful way to cut benefits is to use the median number going forward for future retirees.
Don’t we loose what we gained because at age 60 or 62 everybody is switched to cpi even though waiting until 67 full age to take the fruit of our labor ?
Do some research😳
@@skepticalmechanic. That’s your response?
@@pocketfullgold yep
Purchased your new book on Amazon. The narrator has the personality of Mike Pence. 2-1/2 hours to go. Don't know if i can stay awake?
How is military pay indexed as much of compensation was allowances???
Congrats on your new book! Do you need help with your book cover?
Was forced to pay it my whole life now their team of actuaries are going to give me a win? I don't think so.
ThankYou !
Eliminating income tax on SS doesn’t eliminate tax on SS. IRMAA and NIIT are effectively indirect taxes on SS.
That’s like saying your income taxes are also an indirect tax on SS
@@JoshScandlen Calling SS “tax free” when your taxes increase by receiving it is basically a lie you tell yourself. You should be agnostic as to which specific dollar of income is being taxed because a dollar paid to the government is a loss no matter which bucket you pay it from. Municipal bond interest isn’t really tax free either, for the same reasons.
I just hope they don't raise the retirement age BEFORE I start drawing on it.
If immigrants are paying social security taxes, why would our lower birth rates affect it.
Save Social Security, and Drill, Baby Drill... President Trump should use oil & gas revenues to help fund Social Security going forward 👍
What an idiot idea. How about increasing the level above $160k income contribute to the program. This would cover SS. The felon and is bootlickers want SS to fail why because rich buddies don't need SS.
We're already drilling baby. Trump is not, and will not again, be president, so he has no say.
That’ll just jack up gas prices along with destroying the environment. We can’t afford that on several levels. Vote blue to raise the SSI cap and eliminate the tax break for those who already make all the money. They really won’t feel the pinch and SSI will be solvent for ages.
What year does Social Security *start reducing benefits* due to lack of revenue?
I do not have a mortgage or debt, and I live off of SS alone now. I do not buy into consumerism anymore and have no-buy months (since last Nov) whereas I pay fixed expenses and prop/school/local taxes. My income is below the federal poverty line so I do not pay income tax. Expected to get a whopping $35 a month COLA in 2025.
Looks like you made some unfortunate choices, as well as some good ones. Like you, I am debt free. This is good, even essential for most retired people. Unlike you I have multiple streams of income and I paid over $4K in taxes last year. If you are able, consider going back to work. I did and it is wonderful to have the surplus every month. I can be generous with the needy and put half my check into savings. I like driving a nice car and my 2005 is getting long in the tooth. I am saving because I don't want to liquidate any assets and I want to pay cash for my next RX.
QUESTION: If I am a professional pilot and lose my FAA Medical; thereby cant fly professionally anymore...would that qualify me for Social Security disability benefits?
No
Vast majority? Like 50.1%, 50.01%…? 😊
Thank you for your videos mate.. . Crypto education is what the world needs the most right now. I don’t think that buy and hold is a valid investment strategy anymore. Not too diluted and to a degree, follows Evelyn’s trading ideas and signal tips for your portfolio growth and aggressiveness. She is a woman who has not only taught me what the cryptocurrency trading world looks like but a secret to uplift my finance. Buying crypto and waiting for the price to shoot up is not the best way to invest in the market but buying and trading is. Evelyn Infurna’s trade signaIs does the heavy lifting, generating competitive returns for crypto traders and investors in the form of money and peace of mind. Time in the market vs. timing the market. If you keep that mentality as an investor, you will stay calm during the storm! Within some months I was making a lot more money and have continued on that same path...
SHE’S MOSTLY ON TELEGRAMS APPS WITH THE BELOW NAME.
@Infurnaevely1
I agree that there are strategies that could be put in place for solid gains regardless of economy or market condition, but such executions are usually carried out by investment experts or advisors with experience…
Well this is not my first time of seeing her name on social platform. I think she's extremely brilliant and lucrative at the same time.
Always backup your trading with a good strategy.
Josh - it feels to me like you are running out the clock. Shorter & more concise would be helpful. Still love your stuff.
Ditto. Too hard to follow. Sorry, I don't want to think that hard and try to pull the good points from the intended message 😊.
Births have gone down generation over generation since the mid 60’s. Since 2000 births have gone down dramatically. Lessening the amount of people available to work. Fewer workers = fewer paying into FICA. Fewer paying into FICA= financial problems for SS, SSI, SSDI, Medicare, etc..
BTW…..We don’t have a separate account for us showing what we’ve paid into FICA and what we’ll get paid from SS. For decades people have been paying for SS, SSI, SSDI, etc. for the generations before.
And, if this guy hasn’t paid attention to the goings on in the world. If and when he does, the more he will read Revelations.
This guy is wealthy and has no idea how the rest of the country lives and does not tell every way FICA works, including SS.
* Revelation
You can easily see what you paid in at ssa.gov. If you don’t check your income records or know how to calculate what to expect in future ss payments, that’s on you.
Get to the point! You could say this in two minutes.
Get to the point boring!!
I stopped listening since you can’t get to your point. If you can’t get to your point you apparently don’t have anything important to say.
repost
you wont hear it any where else because its FALSE
Where is Josh wrong?
tickle,tickle
Sorry you loss meat the first sentence
I "loss meat". that means something...to someone
Must be vegan.
@@JoshScandlen come on Josh you know he meant "You lost me at" the first sentence. Your response did give me a chuckle, though.
Harris wants to end tax on SS benefits, she got my vote. I voted for Trump in 2020
Isn't she in power right now? Why didn't her and Biden do it when they had all 3 branches of government?
I think you have that wrong. Trump has proposed no tax on SS along with no tax on tips. You may want to re check that. I know Harris also recently said no tax on tips but it was after Trump proposed it in Las Vegas.
Kamala has no original thought. All stolen from Trump 🤦♀️
That’s Trump’s proposal lol.
Miss giggles is simply regurgitating Trump’s proposals because they are popular and she is incapable of forming an independent thought on her own.
Go KAMALA HARRIS! Trump is losing