Doingitwrong
Recycles dryer sheets
Or maybe a new drug (thanks Huey).
Beginning in 2022, we can now live off DWs pensions and social security. Issue is that it’s mostly from Canada. VA disability, military pension, and 90% of her social security are paid in Canadian dollars. She went on Medicare in 2021 and our medical expenses dropped significantly. Her net is about $60k a year (@ 80 cents on the Canadian dollar).
DW is pretty well set, if she survives me, with her pensions and the $700k we’ve saved. Plus $400k in home equity. For simplicity sack, I’d have about $30 coming from Canada as a survivor. I’m six years younger.
Paid no US income tax from 2017 to 2021; our ACA years. I deferred 45-60% of my part time income in those years to “hit the number”.
No US tax paid = no US foreign tax credit, so our carryover is about $8,000 (only the military pension is taxed in Canada and I file a return for her to reduce the tax).
I want to get a little international in my equity allocation, but I can’t rationalize more foreign taxes or currency risk. When Covid hit her income dropped almost 15% on an annualized basis.
I’m coming to the realization that we are becoming US taxpayers again. We’ve spent down our after tax savings in our ACA years; $100k of that on medical (not insurance).
I just signed a one year contract extension so my S Corp gross, in 2022, will be $96k ($72k in the prior two years). I can defer more, but again we have no after tax money (about $50k).
My current normal doesn’t feel like a plan. US market hiccups, foreign markets choke, US dollar jumps, DWs income drops. Is that a retirement plan?
I’m just looking for thoughts, if not recommendations, on foreign funds/ETFs. Or if I’m over thinking it and just need to stay US focused.
I’ve been thinking about dollar hedged funds and country specific funds (UK has no foreign withholding on US citizens).
IDK. And I’ve been doing US taxes for three decades.
Beginning in 2022, we can now live off DWs pensions and social security. Issue is that it’s mostly from Canada. VA disability, military pension, and 90% of her social security are paid in Canadian dollars. She went on Medicare in 2021 and our medical expenses dropped significantly. Her net is about $60k a year (@ 80 cents on the Canadian dollar).
DW is pretty well set, if she survives me, with her pensions and the $700k we’ve saved. Plus $400k in home equity. For simplicity sack, I’d have about $30 coming from Canada as a survivor. I’m six years younger.
Paid no US income tax from 2017 to 2021; our ACA years. I deferred 45-60% of my part time income in those years to “hit the number”.
No US tax paid = no US foreign tax credit, so our carryover is about $8,000 (only the military pension is taxed in Canada and I file a return for her to reduce the tax).
I want to get a little international in my equity allocation, but I can’t rationalize more foreign taxes or currency risk. When Covid hit her income dropped almost 15% on an annualized basis.
I’m coming to the realization that we are becoming US taxpayers again. We’ve spent down our after tax savings in our ACA years; $100k of that on medical (not insurance).
I just signed a one year contract extension so my S Corp gross, in 2022, will be $96k ($72k in the prior two years). I can defer more, but again we have no after tax money (about $50k).
My current normal doesn’t feel like a plan. US market hiccups, foreign markets choke, US dollar jumps, DWs income drops. Is that a retirement plan?
I’m just looking for thoughts, if not recommendations, on foreign funds/ETFs. Or if I’m over thinking it and just need to stay US focused.
I’ve been thinking about dollar hedged funds and country specific funds (UK has no foreign withholding on US citizens).
IDK. And I’ve been doing US taxes for three decades.
