Comments on: The Government Doesn’t Want you to Work (Too Much) https://thehappyphilosopher.com/the-government-doesnt-want-you-to-work/ A Guide to Freedom and Happiness Wed, 09 Mar 2022 09:49:31 +0000 hourly 1 By: Wes https://thehappyphilosopher.com/the-government-doesnt-want-you-to-work/#comment-11631 Wed, 09 Mar 2022 09:49:31 +0000 https://thehappyphilosopher.com/?p=2241#comment-11631 Awesome article, year before last I ended up in the 24% or 22% bracket, upped the contribution to 401k and stayed in the sweet spot of 12%.

]]> By: Gasem https://thehappyphilosopher.com/the-government-doesnt-want-you-to-work/#comment-11389 Sun, 02 Jun 2019 00:58:17 +0000 https://thehappyphilosopher.com/?p=2241#comment-11389 One thing to be aware of is you are investing in TAX DEFERRED accounts. The government is coming after their money at the RMD age (presently 70 hopefully soon to be 72) RMD is taken out on an accelerating schedule 3.6% the first year 5+% the 10th year and 8+% the 20th year. As more money comes out more taxes get paid and often soon you are pushed into the next up bracket for even more taxes, like you said it happens on the margins. The bigger the tax deferred account the bigger the percentage that is coming out. Plan accordingly

]]> By: TheHappyPhilosopher https://thehappyphilosopher.com/the-government-doesnt-want-you-to-work/#comment-11313 Mon, 06 May 2019 22:22:52 +0000 https://thehappyphilosopher.com/?p=2241#comment-11313 In reply to Tom.

I’m not sure if everyone has to participate, but I know there is a bit of flexibility as to how much one contributes to these plans. This is a good starting point:

https://www.whitecoatinvestor.com/cash-balance-plans-for-solo-and-group-practices/

]]> By: Tom https://thehappyphilosopher.com/the-government-doesnt-want-you-to-work/#comment-11311 Mon, 06 May 2019 14:08:39 +0000 https://thehappyphilosopher.com/?p=2241#comment-11311 In reply to TheHappyPhilosopher.

Thanks. Does everyone in your group participate in the cash balance plan? I am in a private practice, currently with 16 partners and 4 employees. We currently have a 401K retirement model….I’m not sure anyone else in the group besides myself would be interested. Do you have any suggestions about how to go about looking for a plan administrator or do you have any recommendations?

]]> By: TheHappyPhilosopher https://thehappyphilosopher.com/the-government-doesnt-want-you-to-work/#comment-11258 Thu, 25 Apr 2019 16:39:26 +0000 https://thehappyphilosopher.com/?p=2241#comment-11258 In reply to John S..

Great article, thanks.

]]> By: John S. https://thehappyphilosopher.com/the-government-doesnt-want-you-to-work/#comment-11254 Wed, 24 Apr 2019 19:43:12 +0000 https://thehappyphilosopher.com/?p=2241#comment-11254 Hi THP – I’m a lurker who rarely posts, but I thought you might enjoy this.
https://www.nytimes.com/2010/10/10/business/economy/10view.html

The rates have changed since Mankiw wrote this (and when I first read it), but your post made me think of it again. Law of Diminishing Returns, indeed.

]]> By: TheHappyPhilosopher https://thehappyphilosopher.com/the-government-doesnt-want-you-to-work/#comment-11234 Tue, 16 Apr 2019 20:41:57 +0000 https://thehappyphilosopher.com/?p=2241#comment-11234 In reply to julietkilo19.

Non-W2 is the way to go. W2 money is a terrible way to earn at the highest brackets.

]]> By: TheHappyPhilosopher https://thehappyphilosopher.com/the-government-doesnt-want-you-to-work/#comment-11233 Tue, 16 Apr 2019 20:40:26 +0000 https://thehappyphilosopher.com/?p=2241#comment-11233 In reply to xrayvsn.

31% effective is painful, but ultimately a good “problem” to have 🙂

I can vouch for the three day workweek. It is great!

]]> By: TheHappyPhilosopher https://thehappyphilosopher.com/the-government-doesnt-want-you-to-work/#comment-11232 Tue, 16 Apr 2019 20:38:34 +0000 https://thehappyphilosopher.com/?p=2241#comment-11232 In reply to Wealthy Doc.

$321,450 for married filing jointly. I should have no problem staying below that.

]]> By: TheHappyPhilosopher https://thehappyphilosopher.com/the-government-doesnt-want-you-to-work/#comment-11231 Tue, 16 Apr 2019 20:35:35 +0000 https://thehappyphilosopher.com/?p=2241#comment-11231 In reply to Dave @ Accidental FIRE.

People on Twitter are angry? 😉

Most people don’t understand how the tax code works. The “rich” high W2 wage slaves pay massive amounts of tax. The super rich are the ones who pay often pay very little.

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