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Author: Rayvt Big gold star, 5000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 79109  
Subject: Re: Roth investing/withdrawing at 60 Date: 3/16/2012 1:25 PM
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Wow! I guess my idea of the "dirt-poor" threshold is quite different from a lot of people's.

It doesn't make sense to me to intentionally keep your income low in order to keep your SS from being taxed. And I'm aware of how little income you need if your only significant expenses are food, property tax, gas, and utilities.

The amount of tax you can save isn't really all that much, either.
Avg SS benefit is $1230/mo. 85% of that is $1045. In the 15% bracket the tax is $156/mo. In comparison, my average electric bill (including electric heat) is $280/mo. Also in comparison, our average water/sewer/garbage bill is $160 every 2 months.

Granted, $156 is not pocket-change, but if you have an income of $75K (as do 25.9% of 65+ households) or $95K, it's a roundoff error.

And you know what? With a 75K-95K income, you don't HAVE to live frugally. You can, if you so choose, spend $20,000 for a 38 day cruise from Singapore to Athens. Which you cannot really do on a 46K income.
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