I would just make another comment as far as security goes, which I would guess most readers here probably know about: the IRS will generate a unique ID PIN for your tax return (a new one every year) such that your return will not be processed unless you have it on your return. I got mine this year after logging into my account on February 2. My return was already complete so I could file at this point.
The obvious benefit is that this makes a fraudulent return almost impossible. But another advantage, though, is you don't have to file at the earliest possible date, so if you don't have all of your documents, you don't have to worry about it.
I have done AARP and RSVP returns and you would frequently have taxpayers come in having heard the advice that you should file a return even if you have no tax liability in order to prevent tax fraud. If they have one of these PINS, that should not be a concern.
I would agree with the previous author, that setting up the IRS account was much tougher than just choosing a user name and password, but if you had a fairly tech savvy person to help, it does not take long. And once you get it, if you were not filing taxes because say you only had SS, you wouldn't even need to retrieve the number from the IRS. The fact that it has already been generated should be protection enough.
Hi, I was a PT for 40 yrs and now have been retired for about 8. I have a few thoughts:
Like investment portfolios, simplicity may be best. I would say most people start exercise programs way too aggressively and then burn out in a short period of time. I would suggest beginning with a plan that may take only 5 minutes to start, but do it at the same time every day without fail. No, you won't get very fit, but you will probably avoid an injury that derails many people. And, most importantly, you build a habit. You don't have to consider very much brushing your teeth because you have built a habit of it. So in many cases, even if you don't feel like it, you will exercise. Yes, exercise is harder than brushing your teeth, but the habit will push you.In my case, I usually feel "down" if I don't do my program.
Another aspect of simplicity: if you have to get dressed to go to the gym, drive several miles, and wait till the end of the day when you are tired, more likely you won't go. Personally, I like to get my exercise in early in the day; I just walk in the house with no "exercise" clothes, but good shoes. Boring, and that could be a downside. What I usually do is put a music video, something on investment, etc. The internet offers much.
The benefits of exercise are probably front loaded: the first 15 minutes probably does a lot more for you than the last 15 minutes. I think that is a great selling point. If you can get people to do just 15 minutes and start there. Similar to getting people to invest 1% of their pay, and build from there.
Given all the benefits of exercise: longevity, improved brain function, improved sleep, etc. It is the most powerful "drug" we have that costs absolutely nothing, yet I can't remember any doctor ever asking me how much I exercised. And, in thinking back, while I almost always gave people exercises for their particular problem, I believe I didn't do enough to get people to take steps to exercise for their general health. So we all could do a better job there.
Jonathon: I would like to thank you for all your efforts with HumbleDollar but also congratulate for its success. I have been retired for almost 7 years and have remained an interested reader for all that time. I will note that over that time I have unsubscribed to many blogs and sites, mostly because I wasn't learning much that was new.
Here the strength lies in the vast diversity of opinions by "non-experts". A few days ago, I listened to a talk by Mike Piper at the recent Bogleheads Conference on involving your spouse in financial matters. Even with his vast knowledge and expertise, he frequently learned things from his wife that he had just never considered because she just had a different perspective or lens with which she viewed such things. I feel that is what HumbleDollar gives me: multiple ways to look at retirement and financial information.
Please keep up your great work and thanks again.
I have been on Social Security for almost three years and I certainly don’t enjoy paying taxes, but I think that the amount of tax collected is probably minimal for MOST people. Let me give three examples. Let’s assume a married couple filing jointly. I will give them a combined SS income of $60,000. In a Google search, an average figure for a couple both on SS was $33,000/yr. Standard Deduction for a couple both over 65 in 2022 was $28,700. We further assume that 3 couples will withdraw the following amounts from their traditional IRA’s: $10,000, 20,000, and 30,000. If these couples were using the 4% “rule” for withdrawals, that would represent portfolios of 250,000, 500,000, and 750,000 respectively, again above average. I used the website CalcXML to calculate each couple’s SS which was taxable.1. $60,000 + 10,000 IRA Taxable SS: $4,000Taxable income: $14,000. This is about half of the standard deduction so this couple could make some Roth conversions without any tax liability.2. 60,000 + 20,000 IRA Taxable SS: $11,100Taxable income: $31100. This is just a bit over the standard deduction, so tax is only $240, for an effective tax rate of .3%.3. 60,000 + 30,000Taxable SS: $19,600Taxable income: $49,600Tax liability: $2,097 for an effective tax rate of 2.3%.I have made assumptions for SS income and IRA withdrawals that are probably above average - except perhaps for many Humble Dollar readers - but even for a couple making $90,000 a year, the effective tax rate is still quite low. That 85% sounds bad until you do the complicated governmental calculations behind the scene.
Comments
I would just make another comment as far as security goes, which I would guess most readers here probably know about: the IRS will generate a unique ID PIN for your tax return (a new one every year) such that your return will not be processed unless you have it on your return. I got mine this year after logging into my account on February 2. My return was already complete so I could file at this point. The obvious benefit is that this makes a fraudulent return almost impossible. But another advantage, though, is you don't have to file at the earliest possible date, so if you don't have all of your documents, you don't have to worry about it. I have done AARP and RSVP returns and you would frequently have taxpayers come in having heard the advice that you should file a return even if you have no tax liability in order to prevent tax fraud. If they have one of these PINS, that should not be a concern. I would agree with the previous author, that setting up the IRS account was much tougher than just choosing a user name and password, but if you had a fairly tech savvy person to help, it does not take long. And once you get it, if you were not filing taxes because say you only had SS, you wouldn't even need to retrieve the number from the IRS. The fact that it has already been generated should be protection enough.
Post: Have you opened up your IRS Account?
Link to comment from February 20, 2025
Hi, I was a PT for 40 yrs and now have been retired for about 8. I have a few thoughts:
Post: Keep Moving
Link to comment from January 20, 2025
Jonathon: I would like to thank you for all your efforts with HumbleDollar but also congratulate for its success. I have been retired for almost 7 years and have remained an interested reader for all that time. I will note that over that time I have unsubscribed to many blogs and sites, mostly because I wasn't learning much that was new. Here the strength lies in the vast diversity of opinions by "non-experts". A few days ago, I listened to a talk by Mike Piper at the recent Bogleheads Conference on involving your spouse in financial matters. Even with his vast knowledge and expertise, he frequently learned things from his wife that he had just never considered because she just had a different perspective or lens with which she viewed such things. I feel that is what HumbleDollar gives me: multiple ways to look at retirement and financial information. Please keep up your great work and thanks again.
Post: Business Schooled
Link to comment from January 6, 2024
I have been on Social Security for almost three years and I certainly don’t enjoy paying taxes, but I think that the amount of tax collected is probably minimal for MOST people. Let me give three examples. Let’s assume a married couple filing jointly. I will give them a combined SS income of $60,000. In a Google search, an average figure for a couple both on SS was $33,000/yr. Standard Deduction for a couple both over 65 in 2022 was $28,700. We further assume that 3 couples will withdraw the following amounts from their traditional IRA’s: $10,000, 20,000, and 30,000. If these couples were using the 4% “rule” for withdrawals, that would represent portfolios of 250,000, 500,000, and 750,000 respectively, again above average. I used the website CalcXML to calculate each couple’s SS which was taxable. 1. $60,000 + 10,000 IRA Taxable SS: $4,000 Taxable income: $14,000. This is about half of the standard deduction so this couple could make some Roth conversions without any tax liability. 2. 60,000 + 20,000 IRA Taxable SS: $11,100 Taxable income: $31100. This is just a bit over the standard deduction, so tax is only $240, for an effective tax rate of .3%. 3. 60,000 + 30,000 Taxable SS: $19,600 Taxable income: $49,600 Tax liability: $2,097 for an effective tax rate of 2.3%. I have made assumptions for SS income and IRA withdrawals that are probably above average - except perhaps for many Humble Dollar readers - but even for a couple making $90,000 a year, the effective tax rate is still quite low. That 85% sounds bad until you do the complicated governmental calculations behind the scene.
Post: Getting Squeezed
Link to comment from August 17, 2023