countrygirl2
Senior Associate
Joined: Dec 7, 2016 15:45:05 GMT -5
Posts: 16,836
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Post by countrygirl2 on Sept 10, 2021 12:20:50 GMT -5
We pay tax on 85% of our SS, but aren't so high we have to higher insurance premiums. If something happens to one of us or I should say when, the other is going to have a surcharge on that too.
I would have to look and see what our marginal tax is, I'm not sure right now. But with rental income we will now pay a lot, before were dumping a lot of it into remodels. But we stopped. This year the tax credit from the solar panels should cover our taxes, I hope, as I have not paid but one quarter of estimate for the federal. I worked it out roughly and believe we are covered.
Have to see where we are next year with only ins and property taxes on rent property.
I wish we had done differently with the IRA's and such, I tried to tell hubs we were going to be paying a bunch of taxes, he was no, our income will be lower. Yeah, but not that low and our personal insurance and supplement is already to what we figured for max and its only been 6 years since he retired. I don't see anyway to get that down, just going to continue up, plus I'm paying over $400 a month out of pocket for scrips they pay little or nothing on. Going to change part D again this year. Insurance is going to eat us up before we die if it keeps raising every year like it is.
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countrygirl2
Senior Associate
Joined: Dec 7, 2016 15:45:05 GMT -5
Posts: 16,836
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Post by countrygirl2 on Sept 10, 2021 12:26:56 GMT -5
I did look at the Principal Fund, its not much in it, but its more money then we put in. The Vanguard had been doing ok and we are ahead of what we put in but for some reason the earnings are low this year?? I need to look at it and maybe move some things around. Anything in CD's is a bust. Hubs is wanting to take money out of those and pay the taxes, that is a mistake we are earning in those and he won't invest in stocks outside of it. I need to sit him down and talk to him, he is going to lose a ton of income doing that. I couldn't get him to invest in what he needed to but at least kept him in those.
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Lizard Queen
Senior Associate
103/2024
Joined: Jan 17, 2011 22:19:13 GMT -5
Posts: 14,659
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Post by Lizard Queen on Sept 10, 2021 12:28:23 GMT -5
So, I'm grandfathered into the old inherited "stretch" IRA RMD's. It goes much earlier and quicker than I realized. This year, my denominator was 34.6, and I guess it decreases by 1 each year. My balance for that denominator was $193,643. After taking my RMD this year, plus an extra $1000, my current balance is $218530, and this account has some crappy investments in it. I can see this getting out of hand quickly now that my little RMD is growing by $1000/yr. I have a 6th grader, so also need to be mindful of FAFLA in a few years. I wanted this inheritance to go mostly towards retirement, not mostly towards college.
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Lizard Queen
Senior Associate
103/2024
Joined: Jan 17, 2011 22:19:13 GMT -5
Posts: 14,659
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Post by Lizard Queen on Sept 22, 2021 9:41:06 GMT -5
I switched the rest of the years 457 to pretax instead of Roth. That will take care of the problem for me this year. Going the traditional IRA route didn't work that great because our income was venturing over the threshold for doing both (trad IRA+401k) and getting the full deduction out of it.
The pretax 457 is set at a flat dollar amount, while the Roth is at %. I think it's just a quirk with whatever profile was set up for me. The main Payroll lady had to add the pretax option to my profile.
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