ownyourfuture
Thinks s/he gets paid by the post
- Joined
- Jun 18, 2013
- Messages
- 1,561
Went over the cliff in 2018 & it was painful
I carefully reduced my dividend paying securities during 2019 & my MAGI came in well under. The ‘mistake’ I made early in 2020, was following one of Warren Buffett’s rules.
“be greedy when others are fearful” Between late February & early April I purchased 600 shares BGS, & added 500 shares of NHI (REIT)
The problem: At the time, I didn't consider the fact that both of these pay very generous dividends. Knowing this would put me closer to the cliff than I was in 2019, in mid November, I did something I haven't done since1998.
I contacted local CPA’s until I found one that agreed to sit down with me for one session to see how close it was going to be.
Met with her in late November.
The conclusion: She said that barring any ‘substantial/unexpected capital gains’ I'd be fine.
On December 18th, a long-term capital gain distribution that amounted to a little over $900.00 was paid out by a fund I own (FSMEX)
I should've seen that coming, but didn’t. (My mistake) I ran the numbers myself & figured I was still going to be OK.
I thought about it again last weekend & decided to schedule another appointment with her just to be sure. Called her office on Monday, December 21, & found out via a recorded message, that someone in her office tested positive for corona, & the office would be closed until at least Monday, January 4th.
Because of this, I'm hoping ERF members can help me out.
My income is fairly easy to track. $3,058.00 private sector pension ($36,696.00) + whatever income is derived from a taxable brokerage account at Fidelity. That's it.
For that reason, all I have to do is make a simple text file with comparisons of income from Fidelity starting in 2017
Copy & paste doesn't work so I’ll use a screen capture.
The fact that, according to my calculations, I'll be more than $2,000.00 under the cliff, when the CPA told me any unexpected capital gains could make it too close for comfort, makes me think I'm overlooking/missing something.
Thanks in advance.
The file on the bottom is very blurry. For whatever reason when you host them here at early retirement, that's just the way they are.
Here's a link to a much better version.
I carefully reduced my dividend paying securities during 2019 & my MAGI came in well under. The ‘mistake’ I made early in 2020, was following one of Warren Buffett’s rules.
“be greedy when others are fearful” Between late February & early April I purchased 600 shares BGS, & added 500 shares of NHI (REIT)
The problem: At the time, I didn't consider the fact that both of these pay very generous dividends. Knowing this would put me closer to the cliff than I was in 2019, in mid November, I did something I haven't done since1998.
I contacted local CPA’s until I found one that agreed to sit down with me for one session to see how close it was going to be.
Met with her in late November.
The conclusion: She said that barring any ‘substantial/unexpected capital gains’ I'd be fine.
On December 18th, a long-term capital gain distribution that amounted to a little over $900.00 was paid out by a fund I own (FSMEX)
I should've seen that coming, but didn’t. (My mistake) I ran the numbers myself & figured I was still going to be OK.
I thought about it again last weekend & decided to schedule another appointment with her just to be sure. Called her office on Monday, December 21, & found out via a recorded message, that someone in her office tested positive for corona, & the office would be closed until at least Monday, January 4th.
Because of this, I'm hoping ERF members can help me out.
My income is fairly easy to track. $3,058.00 private sector pension ($36,696.00) + whatever income is derived from a taxable brokerage account at Fidelity. That's it.
For that reason, all I have to do is make a simple text file with comparisons of income from Fidelity starting in 2017
Copy & paste doesn't work so I’ll use a screen capture.
The fact that, according to my calculations, I'll be more than $2,000.00 under the cliff, when the CPA told me any unexpected capital gains could make it too close for comfort, makes me think I'm overlooking/missing something.
Thanks in advance.
The file on the bottom is very blurry. For whatever reason when you host them here at early retirement, that's just the way they are.
Here's a link to a much better version.
Last edited: