...and I thought I was ready
- Thread starter cat4ever
- Start date
Thanks for all the feedback
I did notify employment of impending retirement sometime in august. Pretty sure I've settled on August 25 to maximize time I stay on company insurance when considering my remaining vacation time. Official date would be Nov 1, but I would keep my insurance until Nov 30 when likely COBRA would start.
I like the feedback from the 2nd home question. I was thinking about something that's a little too far away for spontaneous trips to occur that often, and if I could produce some income from it I could of course afford a nicer house/location. But I'm still listening.
I did notify employment of impending retirement sometime in august. Pretty sure I've settled on August 25 to maximize time I stay on company insurance when considering my remaining vacation time. Official date would be Nov 1, but I would keep my insurance until Nov 30 when likely COBRA would start.
I like the feedback from the 2nd home question. I was thinking about something that's a little too far away for spontaneous trips to occur that often, and if I could produce some income from it I could of course afford a nicer house/location. But I'm still listening.
Markola
Thinks s/he gets paid by the post
Congrats on making your decision! 
[emoji898]
[emoji898]Beyond 100K it's on them.
First child has chosen in town private university and is living at home (smart kid). His spend looking to be well under 100K as tuition with books is only 15K/year after scholarship. I told him any costs under 100K he keeps the difference, he can decide, and he did.
Will be the same decision for second kid, we will see.
First child has chosen in town private university and is living at home (smart kid). His spend looking to be well under 100K as tuition with books is only 15K/year after scholarship. I told him any costs under 100K he keeps the difference, he can decide, and he did.
Will be the same decision for second kid, we will see.
I've been keeping track of the budget the last several months. Of course they are Covid months but don't think it will be a problem, especially considering it includes money for 2 kids at home which won't last forever.
And I am including a travel budget item that will remain growing until the virus mess is over. Should have a good amount saved by then.Of course the big wildcard is the market, which is pretty scary I admit. I've pulled some money out with the recent highs, but can't maintain the level I have in cash long term. This isn't a finance forum though, so I digress.
This one topic has been bugging me. When I estimate my yearly spend for FIRECalc, should I be including income tax costs that I'll have to pay whenever I pull money out of a non-taxable account like a traditional IRA? That's one I may have missed, which would up my spend possibly 30K (is that right?). Although the Roth will help, there's a good chance this number is going to rise in the future.
Upping my yearly spend to $150,000 I'm still at 100% for 40 years, but only just barely with finishing range:
$252,213 to $52,117,595
Maybe I should wait on the vacation home.
Yes. FIRECalc says spending is spending, whether it's for groceries, automobiles, taxes or anything else.
USGrant1962
Thinks s/he gets paid by the post
It is unlikely you would need $30K for Federal income taxes on $120K of ordinary income - more like $12-14K. Or less with child/education-related credits. So with state income tax, perhaps $20K estimated income taxes for a $140K spend rate.
Yeah, looking at last year’s tax return you pretty much nailed it. Right at 20k for fed and state on $130k gross taxable. Of courses taxes may rise soon, unless they go after payroll taxes I guess.
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