The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/wouldnt-you-have-the-same-taxes-if-your-30922468.aspx

Subject:  Re: Retiring @ 55 Date:  10/14/2013  5:27 PM
Author:  ptheland Number:  73558 of 76390

Wouldn't you have the same taxes if your retirement income matched your pre-retirement income??

At a bare minimum, your taxes would go down by the roughly 7.5% you pay into social security and medicare.

Plus once you retire you don't need to continue saving for retirement. That's another 10% to 30% (or more) of your pre-retirement income you don't need after you retire. If any of that was after-tax savings (Roth IRAs or just plain-vanilla savings/investment accounts), your taxes would also go down after retirement.

--Peter
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us