wyecrabber1
Recycles dryer sheets
- Joined
- May 20, 2015
- Messages
- 148
Reading the thread, Retirement budget what to watch out for...
Taxes are a concern. DW and I have tracked expenses and have a good handle on what our retirement spending is going to be. Firecalc shows 0 failures and other predicators say the same thing.
Taxes are budgeted at 20% for Federal and State. Our plans are to relocate to Florida shortly, so the State tax bill goes away. Together our SS benefit is $50,000 and our pensions will be another $50,000 -- which cover expenses, health and taxes. Adjusting the SS benefit for the 0.85 taxable income and taking the standard deduction of $12,700 -- our taxable income is $80,000. RMD start kicking in in 4 years and will add $30K. So taxes are going to take a bigger bite. Plans are to pay the tax bill and transfer the balance to a Roth -- we may even spend some and spoil ourselves.
Do we have other options?
Thanks!!!
Taxes are a concern. DW and I have tracked expenses and have a good handle on what our retirement spending is going to be. Firecalc shows 0 failures and other predicators say the same thing.
Taxes are budgeted at 20% for Federal and State. Our plans are to relocate to Florida shortly, so the State tax bill goes away. Together our SS benefit is $50,000 and our pensions will be another $50,000 -- which cover expenses, health and taxes. Adjusting the SS benefit for the 0.85 taxable income and taking the standard deduction of $12,700 -- our taxable income is $80,000. RMD start kicking in in 4 years and will add $30K. So taxes are going to take a bigger bite. Plans are to pay the tax bill and transfer the balance to a Roth -- we may even spend some and spoil ourselves.
Do we have other options?
Thanks!!!