What’s astounding is the gap between mean and median (median means half have more, half have less; mean is the numerical average, in case anyone forgot. )
Age 56-61: Median: $17K Mean: $164K
Age 50-55: Median: $8K Mean: $125K
I wish they showed the actual distribution curve, but the implications are pretty frightening for those of us who have saved a lot and are bringing the mean up. If a gridlocked Congress can’t fix SS, when the trust fund runs out and benefits drop 30%, how are these people going to survive? Based on that spread, probably 70% of people do not have appreciable retirement assets saved up. Guess who becomes an easy target?
Although there seems to be a lot of dispute about these numbers. This article says the median (they didn’t report mean) savings for people in their 50’s is $117K, and in their 60’s is $172K, which is hella better than $8K or $17K. Although those numbers are close to the means reported in the other article, so one wonders if they just bolluxed their terminology.
^ when the fund runs low, they will “fix” it with aggressive means testing rather than across the board cuts, I think. Still, it’s going to be tough for those on the edge
I think ultimately it will be fixed with tax increases, because at some point a certain more liberal party will control both Congress and POTUS. But I wouldn’t be surprised if part of the solution is more aggressive means testing than what we already have.
It is sad how much we do not trust our elected officials to keep their greedy hands off of our savings. Unfortunately, the lack of trust is for good reason. They never have enough, and we are never paying enough…we are selfish if we would like to keep what we already have saved for retirement.
Wasn’t income tax only to cover WWI and then there are all the temporary toll bridges that never stop charging. Once they get their greedy fingers in the pie, they won’t stop
It is obvious you know the local politics around here. It is never enough. We vote down a state income tax, and they keep trying to get another one. Now the latest with our pedophile mayor trying to distract by getting a city income tax that people can’t vote on. They are getting SO much money now with all the real estate transactions and the booming economy, but they just want to keep adding taxes that never go away (even long after they expire). I wish they would be spending less and saving for a rainy day, as that day could be right around the corner. If we ran our budgets like they do, we’d be spending more than we made, even as our income increased.
If only the people on cc would run for office, we would be so much better off!
^^Me neither, but it just never stops. How about this? This? This? Higher property taxes? Higher sales tax? Income tax? Car tabs massively increased? I’m afraid that when I do retire, I’m going to be taxed out of my home and out of my state!
In MA, we have a flat-rate income tax. It’s in the state constitution.
Something like 6 times in the last 25 years, the legislature has tried to modify it to a graduated tax by one scheme or another. The latest is putting a constitutional amendment on the ballot in 2018 so everyone can vote on it.
It is framed as only affecting people who make more than $1mil per year, of which there aren’t that many in the state percentage-wise, so they are hopeful people will make the easy grab for OPM (Other People’s Money).
Every previous attempt has failed, hopefully this one will as well.
I will vote with my both hands against any income tax in WA. We have plenty of other taxes FWIW. Plenty. I detest filling out any extra papers. The bank draft to pay the IRS was a godsend. No waiting at the PO to mail that darn check. But spending the entire Easter Sunday filling out the forms was way too much. So - no to any more forms, electronic or not.
No more forms, for sure. We messed up and filled out the state paperwork to be a sole proprietorship for our rental business. Or maybe it was an LLC. The packet of tax and information forms they sent for us to fill out was massive. Massive. And so confusing that I just cancelled my request.
They tried that with us not too long ago, with the OPM taxes. We’re not going to tax you, just the REALLY rich people, it won’t touch you. But as tax happy as the people in WA state are (they vote in almost every tax), even they realized what a load of garbage that was. Two years later, the legislature would be increasing it and changing it to affect everyone.
^ Yes, a tax package makes life much easier, especially if your taxes are complicated.
The printout of mine (fed + state; I like to keep a hardcopy) ran about 65 pages this year. I can’t imagine doing them with just a spreadsheet and a pile of paper forms, like I used to.
Yes, coffee and tax complaining session for Washington state!
If you file under your personal taxes for rentals, no B& O tax (yet). Think it’s a different deal if you incorporate, though. At least enough paperwork to scare you.
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