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Originally Posted by l2ridehd
One item you also need to factor into this plan is taxes. You will be taxed on SS benefits if your other income with SS puts you in a taxable position. And my guess would be that if you can afford to save and invest it, you will be taxed on it. And probably at a much higher rate then you 4% required return.
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From what I have read you get a refund or credit for the taxes paid. I have not tried to work it out so I do not know if you get dollar for dollar back or not. Understanding how taxes will work is an important part of this plan.
Also where the money is coming from for the repayment. Short term money earns very little. If you keep the funds in the stock market and it went up you could sell and be ahead of the game. If the market went down you could skip the repayment but then your benefits would also be lower. The point is everyone has a different situation and when to collect SS is a lot more complex than a lot of us know. Seek advice from the SS administration and anyone else you can talk to.