Comments on: Layoff: Getting by in unwilling retirement

By: funnyaboutmoney1

funnyaboutmoney1 — Wed, 08 Apr 2009 01:29:50 +0000

@ Abigail: Thanks! It’s hard for me to figure all this stuff out, because I have money in traditional & Roth IRAs, a 403(b) (which will be rolled over to the traditional IRA), and non-tax-deferred funds. Plus money comes from several directions: limited partnerships, my little business, the job, a drawdown from the IRA to pay the Investment House mortgage…arrghhh! Impossible to figure out.

What I would like to know, though, is whether the $14,100 you’re allowed to earn while on “early” Social Security is gross or net. If you itemize your returns, does SS penalize you if you make more than 14 grand overall, or do they go by your net earnings?

By: Abigail

Abigail — Wed, 08 Apr 2009 01:04:28 +0000

Depending on your other income — ie, whether your IRA money is traditional or Roth and how much investment income you bring in — you shouldn’t be taxed on Social Security.

If you look at the 1040 booklet, there is a spot where you figure out how much of your social security income is taxable. I would use those raw numbers you have and see.

And if it’s not, then that helps keep your overall income low, which ensures lower taxes on investments etc.

By: Chance

Chance — Sat, 04 Apr 2009 10:39:05 +0000

Your detailed planning is inspiring me. All I can add to others comments is a heartfelt thank you for your posts.

By: funnyaboutmoney1

funnyaboutmoney1 — Sat, 04 Apr 2009 02:08:08 +0000

If you have a master’s degree, you should be able to teach your subject at most community colleges. Some require that you have a course or two in teaching in the community college; in AZ it’s one three-credit thing that (last I heard) you could take online.

People are swarming into the community colleges, and so despite suffering their own budget cuts, many schools are looking for adjunct instructors. Pay’s abysmal, but it’s better than nothing.

Another possibility is substitute teaching. But you have to be a strong person to tolerate that job.

By: Revanche

Revanche — Fri, 03 Apr 2009 23:35:20 +0000

I like the way that things seem to be looking up. But it’s stirring me back off my rump to re-evaluate post-layoff income possibilities. (I’ve taken a break from the hustle.)

By: funnyaboutmoney1

funnyaboutmoney1 — Fri, 03 Apr 2009 21:24:03 +0000

Since the community colleges don’t provide office space — and since my specialty is teaching online & I hope to get at least one online course — I should be able to deduct my office space against the teaching income. That and what little advantage we’re getting from mortgage interest deduction may save in the tax department.

By: frugalscholar

frugalscholar — Fri, 03 Apr 2009 21:05:53 +0000

That’s the blessing of teaching! When I suffered 15 years under a department head who disliked me (and had the power to make me feel it every single day), I had this mantra: I only go in 3 days a week; after 3 1/2 months, I get a month off; after the next 3 1/2 months I get 3 months off. For me, the blessing of frugality was that I didn’t have to work in the summer, as many of my colleagues do.

Happy ending: wonderful department head.

I also think your taxes will be less than you think, given the great tax advantages of self-employment (for your other editing money or blog income).