Financial independence encourages thinking about one’s financial future in a different way. You were told to “build a career and retire at age 65.” Financial independence says you should write your own financial script. The system, your parents, and a ...
The FIRE community loves the accumulation phase. Build up assets towards the goal of financial independence. Questions increasingly creep in when it comes to the distribution phase. Members of the FIRE community wonder: what do I live on when I get to ...
Are you married? Age 55 or older? You might have an opportunity to open up a small health savings account and get a $1,000 annual tax deduction! HSA Contribution Limits Health Savings Accounts (“HSAs”) have annual contribution limits. The limits depend...
There’s tax advice available on TikTok. Is it worth following? Does it miss the big picture? Retirement Saving Through Various Forms of Life Insurance TikTok tax advice often boils down to something like the following: don’t save in traditional retirem...
Tax loss harvesting is all the rage in a down stock market. Did you know that it can create a mystery worthy of the Hardy Boys? Read on to find out how tax basis can disappear because of tax loss harvesting and the wash sale rule. Tax Loss Harves...
Decisions you make today can subject you to more inflation tomorrow! Read below about ways to increase or decrease your exposure to inflation tomorrow. Tax Planning As a practical matter, most Americans have the majority of their retirement savings in ...
Why was your grandparents’ furniture horribly out of date? There’s a reason that has to do with financial independence! I had a great conversation about grandparents’ furniture, inflation, and the four percent rule with Brad and Jonat...
There’s a tax increase in the new SECURE Act 2.0 legislation. Unfortunately, it falls largely on those least equipped to shoulder it. Catch-Up Contributions Since enacted in 2001, “catch-up” contributions have been a great feature of ...
Introduction Worried about an early retirement based on the Four Percent Rule? Might the 4% Rule work because of natural backstops most early retirees enjoy? The 4% Rule The 4% Rule is a rule of thumb developed by the FI community. For example, J...
It appears some changes are likely coming to the tax-advantaged retirement savings landscape, as the House of Representatives passed (by a 414-5 vote) the Securing a Strong Retirement Act of 2021. It now goes the Senate where the Senate Finance Committ...
I can’t retire early! I’ll destroy my Social Security! Is that true? What happens to Social Security benefits when retirees retire early? Are significantly reduced Social Security benefits a drawback of the financial independence retire early (FIRE) mo...
To celebrate my new YouTube Channel’s one month anniversary, I posted two new videos this weekend. Enjoy! You may notice some new background art, which I purchased from the StolitronArtDesign Etsy store. FI Tax Guy can be your financial planner! ...
When it comes to the Backdoor Roth IRA, I’ve seen it all. Reporting a Backdoor Roth IRA on tax returns remains confusing for both taxpayers and tax return preparers. Here’s the recipe I recommend using to report the Backdoor Roth IRA on the tax return ...
I talk tax with Joe Saul-Sehy on today’s episode of the Stacking Benjamins podcast. Available on YouTube and all major podcast players. https://www.stackingbenjamins.com/stories-from-our-stackers-1158/ This post, podcast, and video are for entert...
Enjoy videos on my brand new YouTube Channel. The channel will focus on tax and personal finance topics. I have ten tax videos up there to watch. My goal is to post a new tax or personal finance video every Saturday morning at 7AM Pacific. Highlights i...
Did you receive a Form 1099-DIV which lists an amount in Box 5 “Section 199A dividends”? If so, you might be asking, what the heck are Section 199A dividends? You probably never came across the term “Section 199A dividends” in high school algebra...
The IRS and Treasury have recently issued two updates to the rules for payments which avoid the 10 percent early withdrawal penalty from retirement accounts. These payments are referred to as a series of substantially equal periodic payments, SEPP, or ...
The Backdoor Roth IRA lives! The proposal to repeal the Backdoor Roth IRA as of January 1, 2022 will not be enacted in 2021, as it is now abundantly clear that the Build Back Better legislative program will not be enacted anytime soon. But could ...
There’s an early Christmas present for tax efficient investors. The proposal to end the Backdoor Roth IRA is on life support, and as of now (December 18, 2021) it appears that even if the proposal passes, it will not pass until 2022 at the earliest. La...
Today and tomorrow my year-end tax planning post will be featured on the Optimal Finance Daily podcast. Listen to today’s episode on podcast players and here. Read my year-end tax planning blog post here. FI Tax Guy can be your financial planner!...