Average Income

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Brute he should take that 6000 dollar income tax return and buy a piece of land.
I have one pretty nice house I built for 2 or maybe 3000 dollars in the 80's.
I would tear down old building's shed's barn's for people. Took all the wood pulled the nail's and sorted it.
It is a pier and beam house got the beam's from old creek bridges the county was tearing out, the pier's are old telephone pole's cut to length. Got enough wood to build the entire place. Got enough metal to roof it off oil field compressor shed's being tore down. It is warm cool and dry and I lived in it for several year's before building my current house.

Nobody say's this is easy
 
highgrit":33vhxoh0 said:
I had to put 20% down and pay closing cost when we bought our first house. And disability or SSI is B.S. I have paid into SS and income taxes for over 40 years now, so don't take it away from me. The deadbeats and the freeloaders should not be intitled to the money that I have paid. I have went and tried to get it myself, but if your not going to lie your not getting it. Even though you have a broken back and 2 herniated disc in your neck. I told my doctors that I was turned down and they could not believe it. I can't work hard anymore, but I will never quit working. The best way to get on your feet is to get off your azz. It's just a shame some folks don't want to work at all.

The reason a person like you can't get the disability you deserve is they are giving it to people that have not paid a dime into the system. Again buying vote's. Disability again as it was set up was a good idea we were buying insurance and that is what it is called. This was set up in the event of some bad medical condition, seriously hurt on the job or in an accident your family wouldn't starve. My wife's dad died in Carla, MIL had 5 kid's from 5 yr's to 4 weeks old they wouldn't give them a penny in help. That was what he paid in for, they lived as paupers in a shack. This is were we as a country are supposed to help. The only organization that steped up was the VA as they paid veteran's benifits to the widow.
It was pretty slim they lived off what came out of the wood's and powdered milk.
 
skyhightree1":3jsbi0lh said:
Brute the 6k was his closing cost money he had saved up. He has 3 kids and pays a good amount for rent and he hasn't been evicted out of his place. Brute I understand what you are saying but in the land of dreams are you saying because he does not have the saved capital he should not be a home owner ? Banks are out to make money with every investment you make there is a risk associated with it. I mean if banks are not going to be reasonable and lend are we really moving ahead ? It sounds like to me banks want a guaranteed way to make sure they don't loose money. I do agree not everyone is cut out to be a home owner but the man makes in the 40k's a year and can't get a home built.His mortgage will be less than what he pays in rent a month its crazy everything is out of whack. His house and land total was 156,000 basically cheap in this day and age its not like it was a 300k home which to me its insane.

Something is wrong with this picture. Why 20% down? That's unusual unless it's the "modular". $156k over 30 years at 6% (arbitrary #) is $935.30 per month. If the $156k does not include insurance and taxes, then you have to bump that monthly number up. If his credit is lousy and/or this is not a stick-built house then I could understand 20% down.

I would completely agree that he should get into a house and start developing some equity as opposed to throwing away rent each month (been there, done that) So, if he's paying out around $1200 a month for rent then he should invest in home. A total income of $40k for a family with 3 kids is a tough row to hoe.

Any lender will be critical about the value of the home/property, available collateral and the down payment. Maybe he should reverse engineer this plan and instead, go out and see what he can buy that would cost no more monthly than the rent he is currently paying out.
 
James T I contacted the banks I deal with to ask them and they all say its industry standard now that it be 20% down and or land equity to achieve that because they will only finance the 75% - 85% of a house at most these days. I did ask about the modular but they said that wasn't the issue because its a " Off Frame " modular and they finance those all the time. His wife works but I don't know how much she makes I know his salary cause i pay it lol Yea I told him maybe he should buy for now and then worry about building later he may do that. When I built my house last year my land was the 20% needed and I didn't have to come out of pocket for anything but closing.
 
skyhightree1":cbjhbq7n said:
James T I contacted the banks I deal with to ask them and they all say its industry standard now that it be 20% down and or land equity to achieve that because they will only finance the 75% - 85% of a house at most these days. I did ask about the modular but they said that wasn't the issue because its a " Off Frame " modular and they finance those all the time. His wife works but I don't know how much she makes I know his salary cause i pay it lol Yea I told him maybe he should buy for now and then worry about building later he may do that. When I built my house last year my land was the 20% needed and I didn't have to come out of pocket for anything but closing.

Great advice! That's the very same thing I did. The land appreciated, which created equity so, no down payment and the monthly mortgage is no more than what I was paying out previously. Some of the others pointed out some important things though; you have to be financially prepared to handle the maintenance costs, tax issues, insurance, etc. And heating/cooling costs will definitely be much higher than what they are used to paying out.
 
skyhightree1":136fvm99 said:
I will post this in here because its something one of my workers came to me about today and has something to do with average income / way things are for people trying to make it. My employee came to me head hung low which he is never that way so I asked him whats wrong he said society I said i know but what happened. Long story short he bought some land 3 years ago and finally has the $ to build on his land or so he thought. He is getting 6 grand back on his taxes and went to a bunch of banks asking about lending to build a modular every bank told him he will have to have 20% of the houses cost to put down or 25% as they will not do a 100% finance on builds he may be able to squeeze by that maybe but he then will have to pay an additonal 8k for closing. I don't know how they expect the economy to get any better with crazyness such as that i was shocked apparently when i build my house they used the equity in the land for the so call down payment. He is a hard worked and its sad that he can't even live out his dream in the greatest country of the world without having to go through this bs this place is bass ackwards. I pay him $40k a year so its not like hes making 20 grand a year trying to build a house.

Sounds like the banker has some reservations about making the loan at any cost so is basically setting the bar high. IF the guy can comply then both sides are happy. 8 grand for closing cost on a small loan does sound a bit out of sight tho. Back in the dark ages when we truly made people qualify for loans the anticipated mortgage pmt. couldn't be more than 25% of gross monthly income and total installments monthly for all things couldn't exceed 35-38%...we eventually raised these a few pencentage points but not much.
 
Caustic Burno":1fdb020a said:
Lightining has struck twice I agree got to pay to play again.
If you can't come up with 20 to 25 % you are not ready to be a homeowner.
Need to have a lot of skin in the game. This guy hasn't saved anything.
But then again I am the guy that think's you shoild have at least one year's salary in savings.



Couldn't agree with you more. :clap: :clap:
 
Caustic you dead on about the years salary and even buying land and putting it up collateral. The whole package has to have equity in it so it can be sold if need be and not be under water. That's thru the highs AND lows... Not just the highs.

The social security deal is a mess. I will try not to screw this up but my understanding is it does not matter how many years you pay in for the most part. You are trying to reach the 40 credits. You can get a max of 4 credits per year no matter how high your income is. So 10yrs of 4 credits and you are maxed out. As an example on my statement this year I am at like $22XX of the $2346 monthly cap at 26. Asidide from the fact I could make a better return in the stock market, in the very near future every thing I pay in from now on is going to some one else.

Basically the Govt tried to become an insurance company for widows and elderly. In true govt fashion they sucked at it and are losing money doing it. They are promising me an insurance that I will not recieve. The govt prosecutes companies for not paying on flood damage or what ever... But when the do it... It's all ok.
 
Brute 23":1iehtnlx said:
Caustic you dead on about the years salary and even buying land and putting it up collateral. The whole package has to have equity in it so it can be sold if need be and not be under water. That's thru the highs AND lows... Not just the highs.

The social security deal is a mess. I will try not to screw this up but my understanding is it does not matter how many years you pay in for the most part. You are trying to reach the 40 credits. You can get a max of 4 credits per year no matter how high your income is. So 10yrs of 4 credits and you are maxed out. As an example on my statement this year I am at like $22XX of the $2346 monthly cap at 26. Asidide from the fact I could make a better return in the stock market, in the very near future every thing I pay in from now on is going to some one else.

Basically the Govt tried to become an insurance company for widows and elderly. In true govt fashion they sucked at it and are losing money doing it. They are promising me an insurance that I will not recieve. The govt prosecutes companies for not paying on flood damage or what ever... But when the do it... It's all ok.

This is to the point of getting scary.
I paid the max in for 35 years, I would have been better off with my part and the companies part in a savings plan some where. This doesn't even come close to what we paid in from the business we had for years. The program as originally designed was actually pretty good. Politican's just couldn't stand all that money sitting there and them not playing with it. The last five or six year's I worked the company and I were putting in right at 20,000 a year. Am I entittled you are dam right I am that is my money. The point system is to low and has been. I would have much rather that the money had went into purchasing an annuity through Met Life or Hartford than into the SS system.
 
They spent it Brute. I used to "pay up" my social security in June every year. Not any more.

Each nuke plant pays 10 million a year per unit for a repository. Its been going on since the early 70's. They have no money for the repository. Where did the money go? Over 200 units. 40 years for many. no repository and no plan.

Many ways to save your nickels. Many ways to earn extra nickels. Too many spending more than they have and the government is no different. I do not mind them feeding kids and the elderly.
 
Caustic Burno":3jacsdou said:
Brute 23":3jacsdou said:
Caustic you dead on about the years salary and even buying land and putting it up collateral. The whole package has to have equity in it so it can be sold if need be and not be under water. That's thru the highs AND lows... Not just the highs.

The social security deal is a mess. I will try not to screw this up but my understanding is it does not matter how many years you pay in for the most part. You are trying to reach the 40 credits. You can get a max of 4 credits per year no matter how high your income is. So 10yrs of 4 credits and you are maxed out. As an example on my statement this year I am at like $22XX of the $2346 monthly cap at 26. Asidide from the fact I could make a better return in the stock market, in the very near future every thing I pay in from now on is going to some one else.

Basically the Govt tried to become an insurance company for widows and elderly. In true govt fashion they sucked at it and are losing money doing it. They are promising me an insurance that I will not recieve. The govt prosecutes companies for not paying on flood damage or what ever... But when the do it... It's all ok.

This is to the point of getting scary.
I paid the max in for 35 years, I would have been better off with my part and the companies part in a savings plan some where. This doesn't even come close to what we paid in from the business we had for years. The program as originally designed was actually pretty good. Politican's just couldn't stand all that money sitting there and them not playing with it. The last five or six year's I worked the company and I were putting in right at 20,000 a year. Am I entittled you are dam right I am that is my money. The point system is to low and has been. I would have much rather that the money had went into purchasing an annuity through Met Life or Hartford than into the SS system.

Don't forget millions in SS donations made by thousands of illegal immigrants with bogus SS cards. Where's that money?

As it stands now:
Higher earnings limit. People between ages 62 and 66 who work and collect Social Security benefits at the same time might have part or all of their Social Security benefit temporarily withheld. Workers between ages 62 and 65 can earn up to $15,120 in 2013, after which $1 in benefits will be withheld for every $2 of income above the earnings limit. People who turn 66 this year can earn up to $40,080, and then $1 of benefits will be withheld for every $3 earned above the limit. However, once you turn age 66, the earnings limit no longer applies. And benefits may be recalculated at age 66 to reflect the withheld benefits and continued earnings.

Bigger payments. Social Security beneficiaries began receiving payments that were 1.7 percent larger in January. The average monthly Social Security benefit in January increased from $1,240 to $1,261 as a result of the cost-of-living adjustment.


BUT, the wonderful folks in Washington are still talking about SS reform. Like hiking up the retirement age and wage income subject to SS tax. And the cost of living method of SS disbursement increases might be ditched for increases based on the Consumer Price Index which equals smaller increases.

I think they should leave it alone and start tackling where all the welfare payments are going, take those savings and dump them back into SS to makeup the shortfall.
 
James T I would have to live to be 92 to draw out what I put in.
That is not happening and I don't have a problem with it going to help someone else.
The average 1200 you quoted is skewed by doctor's, lawyer's and Indian Chief's that opt in and pay the maximum for 10 years they work to draw the max. Little old widow lady down the road from me barely draw's 800 a month, I don't know how she lives on it, her husband worked hard all his life just didn't make a lot. Then you take we are giving billion's in foriegn aide to countries that hate us anyway. Put it back in the pot it was our money to start with and give the widow a raise. Had the politician's stayed out of the pot starting with Ike we would have never been able to have used it up.
 
I personally would love to see ss only for older people widows and to help kids. I have no faith in ss being there when I am 62 or whatever the case may be so I have my own retirement savings account. I definately do not agree with helping other countries that hate us or love us when people here need help. Help is something that you do after taking care of your own. My grandpa who left me the entire row crop farm was Cherokee and for the life of me until I became an adult never understood why he had stickers all around the farm that said " sure you can trust the gov't ask any indian " ... I truly understand that now
 
Brute 23":1512ug3t said:
James T, that illegal immigrant money goes in to a slush fund for the politicians. It doesn't even stay in SS. :x

Let us opt out after we hit 40 credits. The govt already got more money than they will pay us back at that point.

I'm at the max of what can be paid out too but it boggles my mind as to why SS has a shortfall after reading this:

(Copy and pasted from http://seattletimes.com/html/nationworl ... xes29.html)

In 2009, the last year for which figures are available, employers reported wages of $72.8 billion for 7.7 million workers who could not be matched to legal Social Security numbers.

That total hit a record $90.4 billion, earned by 10.8 million workers, in 2007, just before the recession. Some of those were legal workers who simply made paperwork mistakes, but the majority are believed to be illegal immigrants.

Because those wages were reported by employers and not paid under the table, Social Security and Medicare deductions had to be made. A total of 12.4 percent of those wages went into the SSA system — 6.2 percent paid each by the worker and the employer. An additional 2.9 percent was paid into Medicare, half by the worker and half by the employer.

That means about $11.2 billion went into the Social Security Trust Fund in 2007, and $2.6 billion went into Medicare
 
I believe SS benefits is calculated on your 35 years highest wages, with some adjustments. A check with SS Admin. will give you the exact methoid.
 
"methoid" probably a typo but I like it. Made me chuckle and that hurts right now. No better way to describe the government's ways.
 
"The maximum benefit depends on the age a worker chooses to retire. For example, for a worker retiring at age 66 in 2012, the amount is $2,513. This figure is based on earnings at the maximum taxable amount for every year after age 21." (http://ssa-custhelp.ssa.gov/app/answers ... nt-benefit)

I believe they drop out some lows and highs to figure what you will receive. In the recent past, SS would send out a statement. I think in 2013 you will need to go online to determine you current track.
 

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