Is it really worth it?

[Fernando]

What would you enjoy doing for the rest of your life? My brother and I both recently retired (pensions + social security), but I keep on doing freelance commercial appraisals because I like it, it stimulates my mind, and I get to travel. All his life he programmed missile guidance systems for the defense industry, but I don't see him wanting to go back to work. Now he just "day trades".

But there's not a lot of money at the moment for commercial appraisals, but this profession has always been cyclical, and I don't worry about AI because there has yet to be a successful commercial AVM product.

I like to retire but also continue doing appraisals.
How does the tax laws work. If I turn a certain age, how much can I make before I'm penalized by IRS for working?

 

[Terrel L. Shields]

how much can I make before I'm penalized by IRS for working?

they just tax you more.

 

[Fernando]

they just tax you more.

What is the max I can earn (it's only earn income, right?) before I get penalize with more taxation. It will be difficult to be competitive with younger appraisers.

 

[Terrel L. Shields]

What is the max I can earn (it's only earn income, right?) before I get penalize with more taxation.

from SS - if you start receiving benefits before your full retirement age, you can only earn up to $22,320 ($1,860 per month) and still get your full benefits. Once you earn more than that limit, the SSA deducts $1 from your benefits for every $2 you earn. Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.

You are screwed.

 

[Terrel L. Shields]

Perhaps if you have an S corp and pay yourself below the limit and then pay the rest as dividends - maybe to your spouse - ask your CPA.

 

[Tom D]

You are penalized on any extra income above something like $25,000. You then have to pay tax on part of your social security. Why not wait to 70 to max out your benefit.
They count all the income you put together on your tax form. No way around not paying it.

 

[shrubberyvaluation]

You are penalized on any extra income above something like $25,000. You then have to pay tax on part of your social security. Why not wait to 70 to max out your benefit.
They count all the income you put together on your tax form. No way around not paying it.

We have limited lifespans, there are times to not wait.

 

[Terrel L. Shields]

We have limited lifespans, there are times to not wait.

With a number of my relatives dying at or near 65, well, I took it early. Don't regret it even though at the break even point next year.

 

[Mark K]

We have limited lifespans, there are times to not wait.

Exactly. I took mine at 64, Full Retirement Age was 66/2 mo. Reason: Discussing it with my CPA. He asked "Didn't you just have cancer surgery?" I replied yes.. He said "Take it now." OK.

Breakeven point is around 78-80 for taking early or waiting. Live longer than 80+/- and you'll come out ahead. Take it early and they deduct $1 in SS for every $2 in earnings over about $20K. In your Full Retirement year you can make $50K +/- before they penalize you. After your FR year, you can make as much as you want, no penalty.

 

[Vernon Martin]

Regarding SS benefits -- what Terrell said. Unless you're making less than $20 K per year, there's a penalty to taking early SS retirement at age 62. I waited until 66 1/2, the standard age, so I could enjoy "semiretirement".