Heck,I don't make $1800 a week before taxes.
I need advice on 401K
- Thread starter Damondogg
- Start date
Future
Victory Ride
Slacker
No desire to work 10-12 hours a day.
Brownslave688
You want a toe? I can get you a toe.
Don't want or need to.
Good money. Just can't do it anymore.
$BILL
Member
Sorry new account as I forgot my password. I gross $2300 a week but through a decade of aggressive tax planning have gotten my tax rate to where i make $120k gross and pay $3.5k in regular federal income taxes yearly. Still working on reducing that but IRS has only so much of a sense of humor. Dont need it as I only have a mortgage for debt but having free cash flow is lots of fun. Dont get me wrong theres nothing wrong with saving its just that current fed policy is to encourage borrowing rather than saving in order to stimulate economic growth. retarded policy in my opinion, I am a natural saver at heart. The key is to save some but not too much as crazy as that sounds and work on maintaining benefits and reducing expenses during retirement. Its not even close that the gov is going to steal 70% of your savings (30 out of 100%). It is likely that they will steal some of it though. 15% is too much for me considering we EARN our pay. This sounds crazy but think about how crazy it is to cut current retiree pensions. I even doubted that would ever happen. THAT IS CRAZY POLICY!!! It is just plain wrong but it is current policy.
$BILL
Member
We should start supporting our union leadership stop bickering and get united against whoever voted for that bill. That is the death nell for us workers. Everyone should read a copy of George Orwells Animal Farm. It was written in direct response to the communist revolution but there is a universal message for us all especially in these times.
brownmonster
Man of Great Wisdom
Govt doesn't tax your savings. They tax the profit you make on your savings.
UPS4Life
Well-Known Member
Id like to know how you're only paying only 3500$ a year in federal taxes. I'm top rate and even at my best week I'm not anywhere close to bringing home 2000$
UpstateNYUPSer(Ret)
Well-Known Member
No state income tax?
Ms.PacMan
Well-Known Member
He said his wife has her own business and they a child in college. In terms of taxes the business is probably a loss and they would get deductions and tuition credits for the child.
UPS4Life
Well-Known Member
Yeah I didn't see the part where she owned a business I just thought he meant she works also. Makes more sense if she owns a business then you can write off a lot.
I agree with upstate no state tax? Your deductions are nowhere near mine!
$BILL
Member
Ms. PacMan is correct, My state has no state taxes and there are lots of other strategies. Fifteen years ago I got one of those god awful huge tax manuals and planned a long term strategy to reduce my IRS bill. The business is the real bonus. We gross $3300 a week and net $3000, nothing illegal and the IRS knows everything we are doing. They gig me on anything they can and paper audit us yearly but never a real audit. Not posting this to be a 
bag but in my center most drivers work their butts off and take home $1000/week. The principle in 401K and traditional IRA WILL be taxed in retirement. Hence they are tax deferred accounts not tax exempt. This info is for the OP and any other driver starting out. Do it right and enjoy the fruits of your labors. Current and likely future fed policy is to penalize savers in order to spur economic growth, long term policy failure most likely but officials get elected every four years, they care about now not later. Bernanke declined to be reappointed as fed chairman, ask yourself why. As usual its the women that can understand and accept what I'm saying.
bag but in my center most drivers work their butts off and take home $1000/week. The principle in 401K and traditional IRA WILL be taxed in retirement. Hence they are tax deferred accounts not tax exempt. This info is for the OP and any other driver starting out. Do it right and enjoy the fruits of your labors. Current and likely future fed policy is to penalize savers in order to spur economic growth, long term policy failure most likely but officials get elected every four years, they care about now not later. Bernanke declined to be reappointed as fed chairman, ask yourself why. As usual its the women that can understand and accept what I'm saying.
$BILL
Member
Also everyone should read Animal Farm by George Orwell. Napoleon is Hoffa, all presidents, congressmen, governors, etc. Note that Boxer is us, including me. He gets sent to the glue factory for retirement which is metaphorically exactly what the gov is doing to current retirees by cutting their benefits while in retirement. Total BS.
brownmonster
Man of Great Wisdom
Do you piss all your money away or do you keep it buried in the back yard? Do you plan on retiring?
Ms.PacMan
Well-Known Member
Hold on there, Spenderina.
Just because I can read what you wrote and figure out how you are reducing your tax bill does not mean that I accept everything you're saying.
Congrats on reducing your tax burden but not saving for retirement is foolish. You are correct that tax deferred accts are not tax exempt and will be taxed as ordinary income in retirement. But in order for you to have the same income as someone drawing on their retirement accts in addition to their pension, you will have to supplement your pension by working - which is also taxed exactly the same.
You may have more disposable income now because you don't save but I will have more disposable income than you in the future (and I'll be relaxing on the deck watching you leave for work).
With a ice cold beer in your hand?
I prefer to see myself as Benjamin.
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