How many sources of income do you have?

[bada bing]

Someday (within 6 years), I'll have a "3 legged stool" of pensions, SS and savings withdrawals. If I defer until 70, the legs will be roughly similar size as well so my stool won't be tippy. For now, I'm living on withdrawals and hobby business income at roughly 2/3-1/3 split.

A couple non-typical variable income sources I have are Alaska permanent fund dividends (last year $3200, this year $1300). Another is my former employer pays my health insurance premiums and will pay my Medicare part B and D when that starts the end of this year, I'll still be paying for part G. I sell some covered calls, but count that as just portfolio income.

Another form of "income" is that my state taxes are going away totally the end of this year. At age 65, I qualify for a homestead exemption from property tax. There is no State sales tax or income tax in Alaska. I even get "free" car license tabs because both my truck and car are now over 10 years old. Sort of makes up for a higher cost of living, although not as high as some of the big cities in the lower 48.

 

[Koolau]

Another is my former employer pays my health insurance premiums and will pay my Medicare part B and D when that starts the end of this year, I'll still be paying for part G.

Another form of "income" is that my state taxes are going away totally the end of this year. At age 65, I qualify for a homestead exemption from property tax. There is no State sales tax or income tax in Alaska. I even get "free" car license tabs because both my truck and car are now over 10 years old. Sort of makes up for a higher cost of living, although not as high as some of the big cities in the lower 48.

That is some nice income there! I especially like the old empl*yer paying much of your health care. That could be worth a lot. It may be hard to quantify, but it will make a noticeable difference. Hail to Alaska from a Hawaiian!

 

[1242Vintage]

Like many here, have a variety of income streams.

Two pensions
Part-time work at a rock quarry
Part-time Engr consulting gig
Investment income

And

Wifey gets a quarterly “allowance” from her Dad.

 

[mojavesue]

Interest from taxable accounts
Dividends from taxable accounts
Long term capital gains from taxable accounts
Rental income
Had a part time W2 up until last year. That's now gone

 

[albireo13]

It's funny that some folks won't bother to bend over and pick
up some change on the ground yet, will have no problem picking
up a golf ball many times in a day.
LOL

 

[F.I.R.E User]

It's funny that some folks won't bother to bend over and pick
up some change on the ground yet, will have no problem picking
up a golf ball many times in a day.
LOL

What about picking up $100 bills?

 

[NW-Bound]

Only three - pensions, investing, small change I pick up off the ground.

Only SS and investment return for me.

If I saw money on the ground, I would only pickup paper bills. It's not that I sneer at coins, but in this heat I may get my fingertips burnt picking them off the sidewalk.

And I do not differentiate between different kinds of investment return (dividends, interests, realized cap gains, etc...) until tax time, and only because they each have different tax treatments. The IRS wants to know, and I oblige.

Until tax time, the various incomes simply add to the grand total at the left bottom corner of my Quicken screen, and that's the only number I watch everyday.

Are we only considering legal sources of income or should we also mention the other kind. For example, online fraud, drug dealing and such. Just wondering …

One may want classify these further. For example, pickpocketing is different than shop-and-run, and different from armed robbery, extortion, etc... They all produce moolah, but the law treats them differently. Same as the IRS treating various legal incomes differently.

 

[Koolau]

What about picking up $100 bills?

I recall a conversation we all had at megacorp years ago about it not being worth Bill Gates time to stoop over and pick up a $100 bill.

 

[Gumby]

I recall a conversation we all had at megacorp years ago about it not being worth Bill Gates time to stoop over and pick up a $100 bill.

Not worth my time to stoop for a penny, but I still do it. Force of habit, and a good reminder of earlier, humbler days.

 

[Koolau]

Not worth my time to stoop for a penny, but I still do it. Force of habit, and a good reminder of earlier, humbler days.

Hear, hear! Good for all of us to remember when a penny was a penny.

 

[Car-Guy]

Not worth my time to stoop for a penny, but I still do it. Force of habit, and a good reminder of earlier, humbler days.

And one of these days, as you get older and you realize the likelihood that you'll throw your back out is increasing, you may think twice about picking up that penny.


Now if looks like an old wheat cent, I'll still pick it up in the extremely remote possibility that's it's a 1909s VBD cent.

 

[Mr. Tightwad]

It's funny that some folks won't bother to bend over and pick
up some change on the ground yet, will have no problem picking
up a golf ball many times in a day.
LOL

Picked up 11 cents yesterday.

 

[Koolau]

And one of these days, as you get older and you realize the likelihood that you'll throw your back out is increasing, you may think twice about picking up that penny.


Now if looks like an old wheat cent, I'll still pick it up in the extremely remote possibility that's it's a 1909s VBD cent.

Heh, heh, let us know when you find that rarefied coin. We'll celebrate with you. Drinks around the (new) pool!

 

[clifp]

Not worth my time to stoop for a penny, but I still do it. Force of habit, and a good reminder of earlier, humbler days.

I'm proud of myself there was a shining penny on the ground, and I didn't pick it up, but my friend did. Although, when I dropped a quarter by a parking meter I spent a few moments searching for it.

 

[Alan]

Hear, hear! Good for all of us to remember when a penny was a penny.

So true. In those days it cost less than a penny to make a penny.


https://www.coinnews.net/2023/02/17...22, the U.S.,Jefferson nickel was 10.41 cents.

In 2022, the U.S. Mint spent 2.72 cents to make and distribute each Lincoln cent. The Mint's cost for each Jefferson nickel was 10.41 cents.

 

[Surewhitey]

Forgot one.... DW'S conspiracy money jar. Starting to look like a modest bank account.

 

[latexman]

My non-COLA pension with 100% survivor benefits.
DW's non-COLA pension with single life benefits.
DW's SS. Her own record 66.5-69, then spousal 70.
My SS at 70.
Nest egg.
Selling the 42 acre family farm with 3 siblings.

So, 6.

 

[old medic]

Current and future plans
My state pension with 100%survivor benefits. I also have done some side hustle stuff just for some extra cash.
DW paycheck. And like I did the last few years of work, We figured what her pension would be, and everything above that goes into her 401K. Its comforting to know we can manage on the pension amount. Plus the 401K growth is nice.

Future according to my cracked crystal ball...
We both will have SS, just a matter of when.
We both have 401Ks and Roth IRAs. Not really large compared to some folks on here. But $300K is a lot to us. I also have an HSA that I'm hoping to build up.
Cash value stuff we have and liquidating once the house gets done will easily add 20-30K to our coffers.

 

[MarieIG]

Current and future plans
My state pension with 100%survivor benefits. I also have done some side hustle stuff just for some extra cash.
DW paycheck. And like I did the last few years of work, We figured what her pension would be, and everything above that goes into her 401K. Its comforting to know we can manage on the pension amount. Plus the 401K growth is nice.

Future according to my cracked crystal ball...
We both will have SS, just a matter of when.
We both have 401Ks and Roth IRAs. Not really large compared to some folks on here. But $300K is a lot to us. I also have an HSA that I'm hoping to build up.
Cash value stuff we have and liquidating once the house gets done will easily add 20-30K to our coffers.

Don't forget about survivor benefits going from DW's pension to you, notwithstanding your propensity for motorcycles. (I'm hoping you're doing better each day.) If you are older than DW the reduction may not be that significant.

 

[Fermion]

For us, it is:

SSx2
401K
IRAs
Roth
Uncle Sam

The last one has been doing quite a good job for our ACA premiums!

 

[old medic]

Don't forget about survivor (I'm hoping you're doing better each day.) If you are older than DW

Thanks Marie... We already decided hers will also be 100% survivor. And since I'm 5 years older the difference is minimal.
Most days improvement seems there, but some days are harder than others. Today is a bit rough.

 

[pacergal]

Pennies from Heaven. I always pick up any money I find, very rare that I find one that I can not relate the date to someone I know. Weird.
It drives DH nuts.
But I bring them home, shine them up and put them in our change jar.

 

[INTJ10]

So far, just rental income, part-time work and after-tax fund withdrawals. As soon as I reach Full Retirement Age Social Security.

 

[Retired Expat]

Seems to me from this thread we are not agreed as to what is Income? Many of the sources mentioned here are purely cash flow. You can receive money but it might not be income. The repayment of an interest free loan for example. Installment payments on something you sold.

For me taking money out of my savings is not income… the interest earned or capital gains are income

Now cash flow is important and maybe more so than income as that cash flow will pay for our spending needs. If I die on the day I spend my last dollar is that good timing? (Assuming I don’t leave debts for others to pay, my funeral and other such expenses were prepaid and I don’t need to leave money for the care of others? Etc)

 

[Tracer]

For me taking money out of my savings is not income… the interest earned or capital gains are income

How about RMD's?.. Essentially mandatory withdrawals from IRA savings. In my case, a monthly deposit to my checking account used to pay expenses. Part of that is interest and capital gains and part is a return of principle. While you may not consider that source as income, the IRS does as the entire deposit is considered ordinary income and taxed as such.

Also, how about annuities I purchased years ago that are annuitized and payout a lifetime income stream like a pension does. Is that considered income even though a portion of that I'm getting my own investment back?