Just think of it as helping our First family to go on vacation...😩

You can also give your heirs slightly less than the gift tax exemption each year (I believe it is now $13,000/year per recipient) without having to report anything, and without it counting toward your estate. Of course this doesn't work with larger units of property such as real estate.

I wouldn't now. Obama has proposed seizing or heavily taxing retimement accounts. Savings need to be put in a place and form where they can't be found and grabbed.

I have somewhat shrugged, already, so I don't have that level of income now and I hate, I Hate, I HATE paying or doing taxes, but I learned that with most occupations I could find ways to avoid the taxes with desirable purchases or small business start-ups with personal benefits within the same year. For instance: farm not making a dime allowed to write-off $6-$8 thousand dollar 4 wheeler including mower deck for mowing new orchards. Some of these situations may have been eliminated, but I hate to someone having to pay exorbitant amounts if desirable alternatives exist. Just a thought.

Thank you. That's a wonderful thought

Excellent point. They can get away with it because they know they can count on people like me to keep working! Arghh!

I'm not an Attorney, or CPA unfortunately which means that if I give you advice, I would be breaking the law. However, one of my favorite books on the subject was written by my Tax Attorney (who is also a CPA). Check out, What Your CPA Isn't Telling You: Life-Changing Tax Strategies by Mark Kohler. He also has a free podcast every week on Blog Talk Radio and all of the past podcasts are available on iTunes. Like anything else in life the rule I go by is take the time to understand what you are doing, create a plan and follow it, and then review and revise your plan. The tax laws change, and you have to keep up with the changes.

It is really hard to make money in America, at least while using rational self-interest. I know...

Rental property - strip mall, small units like a 4-6-8-plex, whatever you can handle, just don't get too big and don't panic when the market goes down, it always comes back. These investments let others pay for them for you. At first they might cost you a little, then you improve them, or upgrade them, and the rents go up, inflation makes the biggest gains for you. If you have a good cash flow, pay them off early in the mortgage if possible. At least make some extra payments early, it saves a lot of interest. Interest is nothing more than rent, you are renting someone else's money. When you get close to retirement sell for cash and let someone else take over the headaches.

And stock in those companies that are going to be here more than 20 years from now.

I can already tell you'll do just fine. It's obvious just by you being here in the Gulch with these people, and not on the other side. Put together a plan and stick to your convictions. There will some ups and downs, but they are all just temporary. Just remember to live when you retire, some people forget what they put so much aside for.

It's a good time to be retired. Or is it? I sense some horrors coming at us seasoned citizens around the corner.

+10

Whether by design or not, A is A and the consequence is the same.

Great advice, if you write your book I'll buy it. I have 35 working years ahead of me to save, but I am trying to come up with a plan other than just the 401k.

Obama is trying as hard as he can to cut that death tax exemption back. If you are married to a citizen (has to be a citizen), you can give them the chance to spend it before its taxed. But I dont think the exemption amount is indexed to inflation, so they are probably hoping that it will be cut back on its own.

Made breathing tube sets and humidifier devices used when patients needed machines to breathe for them while they recovered, or in the case of premature infants while their lungs were still too young to function properly.

+10

We'll be here when you're ready.

"Work part time and spend more time with my [values]"

Excellent!!!!!!!! Worked for me.

Some 25 years ago, in a social setting conversation with a liberal leaning college professor, I responded, "And what will happen when the rational, productive people either quit or simply reduce their productiveness while retaining their work?" Her answer was, with condescending confidence, "Oh, that will never happen!"

I have said for decades that the root of all irrational people is "I (or we) can get away with it." The "it" they want to "get away with" is life, never grasping (as AR so frequently expressed)
that fear of death is NOT equivalent to loving life, and most particularly one's own life.

I started to put my two cents in here but instead will save it for that book some of have told me I need to write. It was huge.

What I'd like to say to those still working though is SYM, "Save Your Money". Find a specific percentage and save it, period. I saved in a 401K the most I could that would take the biggest advantage of the company’s contributions. I saved personal funds as well in the bank when the banks used to pay interest. And I bought all the company stock I could at 85% of current value, thanks to the company I worked for. And finally I bought some rental property, always owning at least a four-plex, and or a rental house or two. I did without a lot of things I really wanted, but then again, I was too busy to enjoy them anyway.

Today in retirement, some of my friends tell me they can't afford this, they can't afford that. It's getting so they can't afford me anymore. I tend to hang out with those friends that can afford what we like to do, we go out to eat a lot, take cruises, buy collector items, like guns and stuff, and just plain have a good time. And I finally got that Corvette that I've always wanted since I was in high school. My sister had her two Corvettes back then, but she doesn't have any now. I help her out on occasion now as she’s had some hardships, but we live our own lives.

Today I find my 1040's reporting more income than I ever had while working and I only draw a little over the minimum of my required IRA withdrawal. And my IRA still continues to grow. In the early years of retirement, before I was making more, I moved money and just paid the darn taxes from my IRA to a Roth IRA. That falsely inflated my income. I did this in fear of increased tax rates. I also sold all my company stock at $90/share with an average cost of $19/share, and just paid the darn taxes. This I did in fear of increased capital gains taxes. The balance is now mine to enjoy. That stock has recently been up to $170/share, thank goodness I bought some more of it after my big sale. My only stock recommendation, find what you think is a good company and ask yourself, "Will it be around 20 years from now?" (The best advice I ever got from Warren Buffett).

These days, with the biggest earning I've ever shown on my 1040's I now have to draw extra cash out of my IRA in order to pay the additional income tax. It really hurts, but it's a whole better than the alternative. In any case there is no better advice than “Save Your Money”. Taxes will never go away.

I salute you! Wish there were more teachersike you out there!

LOL, that occurs to me often, but maybe that's your good copyright!

This is why I work as a school teacher. I have already shrugged. While at the same time hoping to influence a precious few from the inside to take the struggle to the next generation.

In my experience Self Employment Tax is more than made up for by the expensing of costs as a business. Example, You have two cars and one is reserved for entirely business use.(Not absolutely required but better if possible.) If your office is not at the clients location your drive to the client may become deductible. Some travel expenses are more easily deductible. Expenses for your office are deductible (although home office expenses are limited.) You also should make your services available to more than just one client to retain your small business tax treatment. You can become more knowledgable by downloading IRS Pub 17 (individual) and Pub 334 (small business) and Pub 535(business expenses.) Be aware that these are the IRS suggestions that don't really give the leeway that the law does, but if you get familiar with some of this you will be able to better understand what your tax preparer tells you to do. Its not rocket science, but it does take some time to understand. At least the payment for understanding is lower taxes, and that is not taxable;^)

BTW, did you know that wall street traders have a special filing method so they don't have to pay Self Employment tax on trading profits?