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Lovely market! Hit ACA income goal today
Old 04-20-2016, 09:51 AM   #1
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Lovely market! Hit ACA income goal today

April 20,

short term realized gain in $100,000 trading account: $14,000.
long term realized gain in same account: $6,000.
capital one 360 saving account reward bonus: $1000
interest in saving account for full year: $750
dividends from taxable accounts for full year: (~$1500)

2016 MAGI estimation $23,250

ACA income goal: $23,000

Federal tax due: $0

Close enough for government work. Now to not make any more money the rest of the year. That will be tricky. I had thought we would not hit our goal until November or I would need to do IRA conversions. Time to shut down the trading account for the year.
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Old 04-20-2016, 10:09 AM   #2
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Congrats, I guess...

Without knowing everything about your situation, I would say if you are living on only ~$23K a year, it is a pretty sparse living.

While I could probably survive decently on that amount, it would be less restaurants, less travel, less spontaneous and frivolous items, etc.
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Old 04-20-2016, 10:11 AM   #3
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^ that's just a MAGI number
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Old 04-20-2016, 10:20 AM   #4
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23k a year, that is totally spendypants in my book.
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Old 04-20-2016, 10:30 AM   #5
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That is just MAGI. Toss in another $30k a year or so from already taxed money or money from sale of house (we are not buying another) and you get to our $53,000 living expenses.
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Old 04-20-2016, 10:52 AM   #6
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Fermion:

Good planning!

That's the way I play it too.
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Old 04-20-2016, 11:01 AM   #7
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Fermion:

Good planning!

That's the way I play it too.
There are few of us who do. I think sharing our strategy is good for the young uns who might not realize what is available out there for ERs.

Some might advocate going to the 10% or 15% bracket but we retired early enough and have modest expenses such that I do not believe we will have big taxes when we hit RMD. Also I predict sometime in the next 20 years there will be lean times where MAGI income will need to be generated from IRA to Roth conversions. Right now though with this market there is no need for that...party like it is 1999!
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Old 04-20-2016, 11:13 AM   #8
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... Time to shut down the trading account for the year.
Why stop? Don't you have an IRA account where you can continue to trade?

I do most of my short-term trades in a tax-deferred account so I do not have to worry about taxes or wash sales rule. In the past, worrying about tax liabilities kept me from selling an appreciated stock when it was at its prime and on the way down. Bad, bad, bad...
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Old 04-20-2016, 11:26 AM   #9
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Why stop? Don't you have an IRA account where you can continue to trade?

I do most of my short-term trades in a tax-deferred account so I do not have to worry about taxes or wash sales rule. In the past, worrying about tax liabilities kept me from selling an appreciated stock when it was at its prime and on the way down. Bad, bad, bad...
I did have some cash in my IRA account but now it is all tied up in very illiquid mining company bonds with a 50% yield (12.5% yield but I bought them at 23% of par). They are trading at 34% of par right now but I am super greedy and don't want to sell to free up cash in that account. In May I will get another interest payment of $8,000 or so which will give me some free play money to trade.
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