Comments on: What Happens if it Costs Too Much to Work? http://allfinancialmatters.com/2007/06/21/what-happens-if-it-costs-too-much-to-work/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 20 Nov 2009 19:56:44 -0800 http://wordpress.org/?v=abc hourly 1 By: TH777 http://allfinancialmatters.com/2007/06/21/what-happens-if-it-costs-too-much-to-work/comment-page-1/#comment-235883 TH777 Sat, 16 Feb 2008 23:59:42 +0000 http://allfinancialmatters.com/2007/06/21/what-happens-if-if-costs-too-much-to-work/#comment-235883 I realized a few years ago that it was better for me to QUIT my job in Oct of each year, take the holidays off, visit family during Thanksgiving and Christmas. Then after the New Year, I would start sending my resume out to new companies and I have NEVER ONCE had a problem finding a new job. A few times, I have left and then went back with the same employer. This is great because I discoved that the last few months of the year I was ONLY working to pay taxes!! Now that I quit each year, I reduce my income to the point I get a REFUND each year. The only hitch is I have to save up enough during the year to live on from Oct - Jan but with Christmas gifts and eBay it has always been easy and the time with family is priceless. I realized a few years ago that it was better for me to QUIT my job in Oct of each year, take the holidays off, visit family during Thanksgiving and Christmas. Then after the New Year, I would start sending my resume out to new companies and I have NEVER ONCE had a problem finding a new job. A few times, I have left and then went back with the same employer.

This is great because I discoved that the last few months of the year I was ONLY working to pay taxes!! Now that I quit each year, I reduce my income to the point I get a REFUND each year. The only hitch is I have to save up enough during the year to live on from Oct – Jan but with Christmas gifts and eBay it has always been easy and the time with family is priceless.

]]> By: Century Benefits http://allfinancialmatters.com/2007/06/21/what-happens-if-it-costs-too-much-to-work/comment-page-1/#comment-205645 Century Benefits Tue, 08 Jan 2008 01:29:17 +0000 http://allfinancialmatters.com/2007/06/21/what-happens-if-if-costs-too-much-to-work/#comment-205645 There are new medicare plans for 2008. I would strongly recommend reviewing your current plan each year as there are sometimes dramatic differences. If you think outside the box you will find some great health plans. The big companies such as Blue Cross will charge whatever they want because they assume people will just go with the name and they spend a ton of money on advertising which reflects in the premiums and benefits. If you look at some other companies you may be pleasantly surprised with the benefits you will find. There are new medicare plans for 2008. I would strongly recommend reviewing your current plan each year as there are sometimes dramatic differences. If you think outside the box you will find some great health plans. The big companies such as Blue Cross will charge whatever they want because they assume people will just go with the name and they spend a ton of money on advertising which reflects in the premiums and benefits. If you look at some other companies you may be pleasantly surprised with the benefits you will find.

]]> By: Alex http://allfinancialmatters.com/2007/06/21/what-happens-if-it-costs-too-much-to-work/comment-page-1/#comment-115211 Alex Fri, 22 Jun 2007 16:21:22 +0000 http://allfinancialmatters.com/2007/06/21/what-happens-if-if-costs-too-much-to-work/#comment-115211 It's not just in the US that couples find they can't afford to both work. Here in the UK, we have a top income tax rate of 40 per cent, with National Insurance at 9 per cent. Even couples who pay basic rate tax (22 per cent and 9 per cent)often can't afford to both work and pay childcare costs. Of course, some people simply don't want to work - and the state has a role to play here too. I was reading a magazine article in my doctor's waiting room this morning about a guy with 14 kids who gets £26,000 a year in state welfare payments (over $51,000) and a low-rent house from his local authority. No wonder he can't see the point of going out and getting a job. Sometimes it seems like the whole world's gone crazy. It’s not just in the US that couples find they can’t afford to both work. Here in the UK, we have a top income tax rate of 40 per cent, with National Insurance at 9 per cent. Even couples who pay basic rate tax (22 per cent and 9 per cent)often can’t afford to both work and pay childcare costs. Of course, some people simply don’t want to work – and the state has a role to play here too. I was reading a magazine article in my doctor’s waiting room this morning about a guy with 14 kids who gets £26,000 a year in state welfare payments (over $51,000) and a low-rent house from his local authority. No wonder he can’t see the point of going out and getting a job. Sometimes it seems like the whole world’s gone crazy.

]]> By: Stacey http://allfinancialmatters.com/2007/06/21/what-happens-if-it-costs-too-much-to-work/comment-page-1/#comment-115082 Stacey Fri, 22 Jun 2007 04:43:31 +0000 http://allfinancialmatters.com/2007/06/21/what-happens-if-if-costs-too-much-to-work/#comment-115082 JLP, you are exactly right re: Medicare at 1.45%. For everything you ever wanted/(did not want!) to know...follow this link. PS $97,500 is the 2007 max. earnings cutoff for OASDI. When will the government take THAT away from us?!! http://ssa-custhelp.ssa.gov/cgi-bin/ssa.cfg/php/enduser/std_adp.php?p_sid=yKUXmi2h&p_lva=&p_faqid=310&p_created=959284761&p_sp=cF9zcmNoPSZwX2dyaWRzb3J0PSZwX3Jvd19jbnQ9NjM3JnBfcGFnZT0x&p_li= JLP, you are exactly right re: Medicare at 1.45%. For everything you ever wanted/(did not want!) to know…follow this link. PS $97,500 is the 2007 max. earnings cutoff for OASDI. When will the government take THAT away from us?!!

http://ssa-custhelp.ssa.gov/cgi-bin/ssa.cfg/php/enduser/std_adp.php?p_sid=yKUXmi2h&p_lva=&p_faqid=310&p_created=959284761&p_sp=cF9zcmNoPSZwX2dyaWRzb3J0PSZwX3Jvd19jbnQ9NjM3JnBfcGFnZT0x&p_li=

]]> By: Foobarista http://allfinancialmatters.com/2007/06/21/what-happens-if-it-costs-too-much-to-work/comment-page-1/#comment-115075 Foobarista Fri, 22 Jun 2007 02:37:20 +0000 http://allfinancialmatters.com/2007/06/21/what-happens-if-if-costs-too-much-to-work/#comment-115075 They were being a bit aggressive in their discussions, but only somewhat. And they only counted the "employee's share" of SS and Medicare, when in truth the "employer's share" is part of your salary, but is magically invisible - after all, pointing out to the nation that it's paying 7.2% more in taxes than it thinks it is would be difficult... My wife's aggregate tax bracket _is_ close to 50% on her self-employment income. They were being a bit aggressive in their discussions, but only somewhat. And they only counted the “employee’s share” of SS and Medicare, when in truth the “employer’s share” is part of your salary, but is magically invisible – after all, pointing out to the nation that it’s paying 7.2% more in taxes than it thinks it is would be difficult…

My wife’s aggregate tax bracket _is_ close to 50% on her self-employment income.

]]> By: JLP http://allfinancialmatters.com/2007/06/21/what-happens-if-it-costs-too-much-to-work/comment-page-1/#comment-115050 JLP Fri, 22 Jun 2007 01:03:27 +0000 http://allfinancialmatters.com/2007/06/21/what-happens-if-if-costs-too-much-to-work/#comment-115050 Dave, Actually, you don't ever max out Medicare, which is something like 1.45%. Dave,

Actually, you don’t ever max out Medicare, which is something like 1.45%.

]]> By: Dave http://allfinancialmatters.com/2007/06/21/what-happens-if-it-costs-too-much-to-work/comment-page-1/#comment-115047 Dave Fri, 22 Jun 2007 00:46:12 +0000 http://allfinancialmatters.com/2007/06/21/what-happens-if-if-costs-too-much-to-work/#comment-115047 It is hard to think that a medical doctor would not max out Fica and Medicare during the year, so I doubt if they really were in that high a tax bracket. It is hard to think that a medical doctor would not max out Fica and Medicare during the year, so I doubt if they really were in that high a tax bracket.

]]> By: KMC http://allfinancialmatters.com/2007/06/21/what-happens-if-it-costs-too-much-to-work/comment-page-1/#comment-114880 KMC Thu, 21 Jun 2007 20:11:55 +0000 http://allfinancialmatters.com/2007/06/21/what-happens-if-if-costs-too-much-to-work/#comment-114880 I think if many parents included all of the costs associated with working (the ones Debt cites, for example), and saw what they're really making by doing so, we'd see a lot more stay-at-home moms and dads. You don't have to be losing money as the writer of the letter to the editor is. But you might reconsider working when you realize after all expenses you're bringing in $200 every two weeks in exchange for all the crap you put up with at work. I think if many parents included all of the costs associated with working (the ones Debt cites, for example), and saw what they’re really making by doing so, we’d see a lot more stay-at-home moms and dads.

You don’t have to be losing money as the writer of the letter to the editor is. But you might reconsider working when you realize after all expenses you’re bringing in $200 every two weeks in exchange for all the crap you put up with at work.

]]> By: Miguel http://allfinancialmatters.com/2007/06/21/what-happens-if-it-costs-too-much-to-work/comment-page-1/#comment-114876 Miguel Thu, 21 Jun 2007 19:43:27 +0000 http://allfinancialmatters.com/2007/06/21/what-happens-if-if-costs-too-much-to-work/#comment-114876 Long ago, we decided that it really did not pay for my wife to earn a salary. We too live in NYC, an extremely high tax region, and are subject to AMT. She now works for herself and the business deductions are a big help come tax time. Long ago, we decided that it really did not pay for my wife to earn a salary. We too live in NYC, an extremely high tax region, and are subject to AMT. She now works for herself and the business deductions are a big help come tax time.

]]> By: Danny at Money Socket http://allfinancialmatters.com/2007/06/21/what-happens-if-it-costs-too-much-to-work/comment-page-1/#comment-114874 Danny at Money Socket Thu, 21 Jun 2007 19:24:20 +0000 http://allfinancialmatters.com/2007/06/21/what-happens-if-if-costs-too-much-to-work/#comment-114874 Yet another perk of owning an online business. No need for gas or another car. No need for work clothes since you can walk around in PJs all day, no need for daycare. Yet another perk of owning an online business. No need for gas or another car. No need for work clothes since you can walk around in PJs all day, no need for daycare.

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