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Will Biden’s 401(k) plan help you or hurt you?
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2020 Sep 10, 5:09pm 2,806 views 66 comments
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60
clambo
2021 Feb 23, 5:12pm
I’m not living in Caligulan splendor yet.
I’m living with a male friend in a nice condo but I’m not that active socially.
I’m constantly amazed at the hot brown girls working as cashiers, waitresses, etc everywhere in Palm Beach County.
It’s really something to see.
I saw an interesting project in Jupiter; a ship offshore dredging sand and pumping it through large steel pipes to rebuild the beach. I think they made the beach 200 feet wider for a few miles.
I’m living with a male friend in a nice condo but I’m not that active socially.
I’m constantly amazed at the hot brown girls working as cashiers, waitresses, etc everywhere in Palm Beach County.
It’s really something to see.
I saw an interesting project in Jupiter; a ship offshore dredging sand and pumping it through large steel pipes to rebuild the beach. I think they made the beach 200 feet wider for a few miles.
61
Booger
2021 Feb 23, 5:22pm
Booger
2021 Feb 23, 5:22pm
clambo says
If I am already thinking of moving to Florida, are you suggesting that I relocate to that part of Florida, instead of Northeast Florida, which is where I am currently thinking about?
If it matters, I can probably get a job in Florida in Tampa or Pensacola and not wait until I actually retire.
I’m constantly amazed at the hot brown girls working as cashiers, waitresses, etc everywhere in Palm Beach County.
If I am already thinking of moving to Florida, are you suggesting that I relocate to that part of Florida, instead of Northeast Florida, which is where I am currently thinking about?
If it matters, I can probably get a job in Florida in Tampa or Pensacola and not wait until I actually retire.
62
Ceffer
2021 Feb 23, 5:30pm
Ceffer
2021 Feb 23, 5:30pm
I might be helped, I might be hurt by the plan, but if it's Biden's, I won't remember it in two minutes anyway.
63
clambo
2021 Feb 23, 5:38pm
Booger,
I don’t know what you are used to, but I don’t like Florida south of PGA Boulevard in Palm Beach County.
Unfortunately I don’t know what it’s like around the state, I haven’t traveled much.
From Ft Lauderdale (shitty airport) I can fly pretty easily to South America. I’m interested in Peru and Colombia.
Palm Beach County has good scuba diving and fishing, and proximity to the Bahamas.
I don’t know what you are used to, but I don’t like Florida south of PGA Boulevard in Palm Beach County.
Unfortunately I don’t know what it’s like around the state, I haven’t traveled much.
From Ft Lauderdale (shitty airport) I can fly pretty easily to South America. I’m interested in Peru and Colombia.
Palm Beach County has good scuba diving and fishing, and proximity to the Bahamas.
64
Patrick
2021 Feb 23, 6:54pm
Patrick
2021 Feb 23, 6:54pm
Misc says
I don't think it's a mirage over the last 100 years. The growth in stocks reflects the reality of US economic growth, more or less.
But I agree this rate of return cannot continue for 1000 years.
When you run the financial numbers at a compound growth rate for a short period, like 100 years, you end up with a palatable result. Example $100 @ 7% for 100 years is $87k. That is a number that you can wrap your head around, but try for a longer period...say 1000 years. You realize that compound growth is a mirage.
I don't think it's a mirage over the last 100 years. The growth in stocks reflects the reality of US economic growth, more or less.
But I agree this rate of return cannot continue for 1000 years.
65
clambo
2021 Feb 24, 2:31pm
I'm not spoiled. I don't have a syndrome.
My take home after taxes was $950 every month, and I saved 500/month.
500/month invested for 33 years is a million bucks.
I of course have much more because I went all in and balls to the wall when I started making money.
My take home after taxes was $950 every month, and I saved 500/month.
500/month invested for 33 years is a million bucks.
I of course have much more because I went all in and balls to the wall when I started making money.
66
HeadSet
2021 Feb 24, 2:45pm
HeadSet
2021 Feb 24, 2:45pm
clambo says
Do not get me wrong, I am not implying that anyone with wealth at retirement is a spoiled trust fund baby. Just saying that quite a few working class people, who despite living frugally can only manage to save the allowed IRA contribution and pay of the mortgage before retiring. These people would not benefit from a Roth IRA since they will have only the RMD and the SS after retirement, and then would not have enough income to have to pay State and Federal taxes anyway.
I'm not spoiled. I don't have a syndrome.
My take home after taxes was $950 every month, and I saved 500/month.
500/month invested for 33 years is a million bucks.
I of course have much more because I went all in and balls to the wall when I started making money.
Do not get me wrong, I am not implying that anyone with wealth at retirement is a spoiled trust fund baby. Just saying that quite a few working class people, who despite living frugally can only manage to save the allowed IRA contribution and pay of the mortgage before retiring. These people would not benefit from a Roth IRA since they will have only the RMD and the SS after retirement, and then would not have enough income to have to pay State and Federal taxes anyway.
« First « Previous Comments 60 - 66 of 66 Search these comments
The more tax you pay, the more this saves you. If you have to pay the top, 37% federal tax rate on every extra dollar you earn, deducting that money from your tax return saves you $7,215 in income taxes. But if you’re only paying 10% federal tax on each extra dollar you earn, deducting $19,500 would save you just $1,950.
The Biden-Harris proposal would change that. If elected, and if they got this through Congress, in future they would replace these deductions with a flat deduction available to everybody.
“The current tax benefits for retirement savings are based on the concept of deferral, whereby savers get to exclude their retirement contributions from tax, see their savings grow tax-free, and then pay taxes when they withdraw money from their account,” the campaign states. “This system provides upper-income families with a much stronger tax break for saving and a limited benefit for middle-class and other workers with lower earnings. The Biden Plan will equalize benefits across the income scale, so that low- and middle-income workers will also get a tax break when they put money away for retirement.”
The proposals are similar to those put forward some years ago by the Urban Institute, a Washington think-tank. Analysts’ best guess is that everyone would save the same percentage each year on their taxes: 20.5%, equal almost exactly to $4,000 for someone making the maximum annual contribution. And if your tax bill for the year is less than $4,000, Uncle Sam—meaning other taxpayers, actually—would chip in the money on your behalf.
Good news for anyone currently paying less than 20.5% federal tax on each extra dollar. Not so good for those earning more.
https://www.marketwatch.com/story/will-bidens-401k-plan-help-you-or-hurt-you-2020-09-09?siteid=yhoof2&yptr=yahoo