How many sources of income do you have?

[1242Vintage]

Have several income sources

Pension x 2 (w/survivor benefits, COLA and healthcare)
Rental income on two homes (no mortgage on either house)
Part-time consulting engineer work
Part-time construction mtls quality assurance job
Investment income
Monthly distribution of income from family trust

Haven’t started social security yet. That’ll happen in a few more years.

 

[LateToFIRE]

I'm curious...
For all you lucky Pensioners who have listed a "Small Pension" as one of your sources of income... What is "Small" ? $500/mth... $5000/mth ?

Not yet retired, but my "small" pension will be ~$1100/month when I hit age 65. Combined w/DW, SS will be ~$5400/month at age 67. So, the pension is going to be "small" in comparison to that, and extremely small in comparison to spending plan.

 

[Jimonlimon]

Pre-retirement just 1: Salary. No OT, bonuses, etc. so I know exactly what it will be until retirement.

Post retirement (within 15 months) it will be:
1- immediate- defined benefit pension
2- as needed- withdrawals from 401k
3- in 3 to 11 years- Spouse’s Social Security
4- in 6 to 11 years- My Social Security.

5- maybe sometime- Sale of house.
6-maybe sometime- Inheritance from parent.

 

[ls99]

One is Columbia University pension of $29.xx. Yes, that is twenty nine dollars and some cents. I love it as it is vested pension for life. My coffee money for a few days every month.

Others are, SS, MAryland MTA pension and 403b from Columbia U. after they converted from guaranteed stuff, which I transferred to Vnaguard years ago.

 

[TheWizard]

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?

Withdrawals from tax-deferred, whether RMDs or not, are definitely income.
That's because those tax-deferred accounts are basically deferred income: make $100k and put $20k aside for later on and just live on $80 in the current year.
And the IRS agrees, since they tax RMDs as ordinary income.

Money you put away after paying income tax on it are just assets, whether Roth, a savings account, or a taxable investment account...

 

[Koolau]

Withdrawals from tax-deferred, whether RMDs or not, are definitely income.
That's because those tax-deferred accounts are basically deferred income: make $100k and put $20k aside for later on and just live on $80 in the current year.
And the IRS agrees, since they tax RMDs as ordinary income.

Money you put away after paying income tax on it are just assets, whether Roth, a savings account, or a taxable investment account...

Yeah, I basically think it's whatever hits my checking account from whatever source.


It's tricky (for some) because IRS considers some things (like tIRA to Roth IRA) as "income." For tax purposes, it is, but it's not something you can spend. Thus, my definition - if I can spend it from my check book, it must have been income. I understand everyone has a different idea about this.

 

[COcheesehead]

Income to me is something I didn’t have the day before. If it’s in a deferred account and I take an RMD, I had it the day before already - now I am just taxed on it.

 

[ShokWaveRider]

One of my favorite Tubers videos is quite timely relative to this post.

 

[Milkman]

Income from DW and myself:

RMD distributions from my TIRA
RMD distribution from DW's TIRA
Social Security from my account
Social Security from DW's account
Interest and dividends from my taxable brokerage accounts
Interest and dividends from DW's taxable brokerage accounts
Small pension (DW will inherit 100%)
DW Air Force retirement (inherited from former spouse)
Oil & gas royalties

We also both have untapped Roth IRAs

 

[thatguy]

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 would pick up a quarter because I can buy a cold bottle of water with it from a vending machine at SamsClub. It's almost worth the quarter to watch the machines robotic mechanism select your bottle and place it in the bin, than open the door.

 

[socca]

• Investment income:
> stock dividends
> taxable bond dividends
> tax-free bond dividends
> interest
> capital gains
• S-corp distributions
• partnership distributions
• irrevocable trust distributions
• labor - management fees
• book royalties:
> my books
> my dad’s book - inherited
• gifts received

Total: 12

 

[Kamei]

Let's see...

1. My SS
2. Wife's SS
3. My teacher retirement
4. My part-time job
5. Rental income
6. Writing gigs via BookBaby and TeachersPayTeachers

 

[Time2]

Oh!, Oh!, besides our savings, I received a $55.50 check from a class action lawsuit against Progressive because they underpaid customer claims.
The lawyers received $10M.
I'm not sure if there is more to come, or how I fit in. I did have one vehicle totaled and another damaged from Hurricane Micheal.
https://www.parissouthtotallossclassaction.com/Home/FAQ

 

[Koolau]

Oh!, Oh!, besides our savings, I received a $55.50 check from a class action lawsuit against Progressive because they underpaid customer claims.
The lawyers received $10M.
I'm not sure if there is more to come, or how I fit in. I did have one vehicle totaled and another damaged from Hurricane Micheal.
https://www.parissouthtotallossclassaction.com/Home/FAQ

Yeah, the lawyers usually get the lion's share of such suits. I think most of those suits are considered "punishment" of the "wrong doer" rather than making those "wronged" whole.

Heh, heh, I'd rather have the money than the punishment.

 

[Koolau]

I just recalled that I got into one of these lawsuits years ago. It was some "stock deal" or some such that I guess I had participated in years before. Honestly (and I'm ashamed of this) when the paperw*rk rolled in - I had no idea what it was for. I filled it all out and, amazingly, I got several hundred dollars in compensation.



I couldn't really recall exactly what for. I finally recalled that I had actually bought something (with that name) and never paid attention to it. In the end, I'm sure I lost money, but the chunk of money I got from the suit was nice at the time. YMMV

 

[unclemick]

Roughly in descending order:

1. RMD roll over IRA
2. SS
3. 2nd RMD inherited IRA
4. Roth
5. non cola pension
6. Mad Monet - taxable dividends and cap gains - varies by year.
7. Farm - Two govt. checks - land CRP-2 and this year 'Pollinator Habitat'.

Heh heh heh - Of course DW came at age 70 with a boatload of non monetary and monetary assets - tall cotton at age 80!!!

 

[albireo13]

I am 67 retired, DW is 63 and still working, until 65
Current income.

1. DW salary (for now)
2. my SS
3. my pension
4. savings, if needed

Once DW retires, we will add her pension and her SS at some point