I'm trying to plan for 6 years from now. We are comfortably FI and plan to be in 6 years. Looking at this table today:
I think we will be in the 24% bracket. RMD estimate $3M*4%=$120K plus about $70K*85%=$60K SS puts us at a minimum of $180K income. Dividend and interest income might add $40K or more depending on AA. We plan to make charitable contributions depending on how we feel financially. Assuming these are just budgetary numbers subject to change is my planning valid or am I missing something?
As a salaryman/wage slave (well-paid, albeit) I never really worried about taxes as I've been W-2 all my life with minor 1099 contracts here and there on the side.
But, once my wages go to zero (probably within a 12-month window at this point) I need to be writing quarterly checks to IRS and Cal FTB so it becomes a little more annoying as this is real money coming out of our bank account.
We plan to use charitable giving to keep us safely within a bracket or Medicare threshold if necessary as we would rather give to charity than to the government. Is this a sound strategy and starting point as far as thinking about this?
Tax Rate | For Single Filers | For Married Individuals Filing Joint Returns | For Heads of Households |
10% | $0 to $11,000 | $0 to $22,000 | $0 to $15,700 |
12% | $11,000 to $44,725 | $22,000 to $89,450 | $15,700 to $59,850 |
22% | $44,725 to $95,375 | $89,450 to $190,750 | $59,850 to $95,350 |
24% | $95,375 to $182,100 | $190,750 to $364,200 | $95,350 to $182,100 |
32% | $182,100 to $231,250 | $364,200 to $462,500 | $182,100 to $231,250 |
35% | $231,250 to $578,125 | $462,500 to $693,750 | $231,250 to $578,100 |
37% | $578,125 or more | $693,750 or more | $578,100 or more |
I think we will be in the 24% bracket. RMD estimate $3M*4%=$120K plus about $70K*85%=$60K SS puts us at a minimum of $180K income. Dividend and interest income might add $40K or more depending on AA. We plan to make charitable contributions depending on how we feel financially. Assuming these are just budgetary numbers subject to change is my planning valid or am I missing something?
As a salaryman/wage slave (well-paid, albeit) I never really worried about taxes as I've been W-2 all my life with minor 1099 contracts here and there on the side.
But, once my wages go to zero (probably within a 12-month window at this point) I need to be writing quarterly checks to IRS and Cal FTB so it becomes a little more annoying as this is real money coming out of our bank account.
We plan to use charitable giving to keep us safely within a bracket or Medicare threshold if necessary as we would rather give to charity than to the government. Is this a sound strategy and starting point as far as thinking about this?
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