2023 IRS Updated Limits and Deductions
The IRS just came out with the tax year 2023 update for a few essential items, which were all favorably adjusted:
- The employee contribution to 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased to $22,500
- The Standard Deduction was increased to $13,850 for individuals and $27,700 for married filing joint
- IRA annual contribution limit was increased to $6,500
- The Gift Tax exclusion was increased to $17,000 per year
Free Course on Creating an Extraordinary Life
I recently had the pleasure of recording an episode with Alan and Katie Donegan on the topic of index funds, which will go live in about a month (that will be a great week of podcasts starting with a JL Collins episode releasing on Monday and the Donegan episode on Friday!).
They told me that to celebrate the 10th anniversary of Rebel Business School they are launching a 100% free course on creating and designing an extraordinary life for 2023 and beyond and wanted to make sure the ChooseFI community knew about it as early as possible.
It is called the Extraordinary Life Course and it starts November 21st so sign up today to get registered.
Per Alan it is “One session a week for 5 weeks, 90 minutes each session, with a new topic each week.”
They premiered this course at the Mr. Money Mustache HQ and in Colombia at Chautauqua, and this is the first time it’s going online, so this is a very cool opportunity to learn directly from Alan and Katie and start planning an extraordinary year and life!
To Buy or To Rent?
My favorite guest podcast appearance of all time just went live this past week:
The easiest way to listen is to search for the podcast “Preconceived” in a podcast player and download the “To Buy or to Rent?” episode – I think it’ll be worth your while to listen to my logic on this particular subject as it’s one I have strong feelings about, but haven’t gone into in-depth on ChooseFI.
If you listen to podcasts via the web, here’s the link to all of the Preconceived episodes and my appearance should be at or near the top.
On this same topic, one of my favorite Twitter accounts is StripMallGuy who had four tweets this past week that I thoroughly enjoyed (all directly quoted from his account):
- “Greatest marketing ploy of all time was convincing the American consumer that their home is an investment property. Many middlemen have profited from this narrative.”
- “Let’s change societal pressure from: “Buy a house before 30” To “Buy an income-producing property before 30″”
- “Commercial real estate is about math. Residential real estate is about emotion.”
- “I’ve purchased 34 strip malls. I’m 42. I rent.”
ChooseFI Community Taking Action This Week
- Genny said, “My 99% better is leaving a job at a law firm where I worked a ton of hours and was constantly on the phone with clients. The court appearances generated a lot of anxiety and I had to be in the office 5 days a week with two afternoons a week from home. I asked for a raise I knew the firm was unlikely to grant to leverage it into more PTO or more days from home. They declined those requests as well, so I found a new job. I got a significant raise with better bonuses and cut my health insurance costs in half due to the larger employer. I get to work from home four days a week, get 19-21 paid holidays, a week more PTO, and can count on one hand the number of times my phone has rung. I’ve been a paralegal at the new place for a year and highly recommend any burned out attorneys consider a shift to corporate work. It may not be as exciting as my old job, but I love the lack of stress and being fully present with my 12 year old.”
- Nestor said, “My 1% better this week was maxing out my Roth IRA for the first time! I opened my Roth IRA in 2020 but this year is the first time that I’ve been able to contribute the maximum amount allowed. I’ve been working towards this milestone since the start of my journey to FI and I’m thrilled that I was able to accomplish this at the age of 23. My recent transition into a career in tech/Salesforce (shout-out Talent Stacker!) has given me a huge boost towards accomplishing my financial goals.”
- Megan said, “I don’t check my investment accounts too frequently, but this week I noticed that I hit my first $100K in my investment accounts! I’m a 37 year old single mother who started late. I’m extremely proud of myself and thankful for everything I’ve learned from the podcast.”
- Tom said, “I did better this week by a little more than 1%. After hitting a pretty lean FI number, I ve spent the last year wondering what to do. I pondered quitting my full time job, working for myself as a realtor / real estate investor, finding a part time job, a new full time job, and versions of each of those options put together. It’s stressful not knowing the best course! This week I signed a job offer, leaving my company of 11 years to start a new and exciting role that will pay me over a 100k per year MORE than my old job. I’m looking forward to the new challenge, working from home, and stuffing the bank account for a FAT FIRE years down the road.”
- Gavin said, “My 1% better was: Splurging on a Broadway show with my girlfriend and her sister in NYC. Having an amazing Indian buffet with my mom since it was the first time she ever had Indian cuisine. Not feeling guilty taking time off work to spend time with family. Buying lots of tasty and cheap groceries at Aldi’s! Sharing the lessons of the ChooseFI newsletter with my mom and downloading the library extension on my parents’ computer. Decorating pumpkins for a library Halloween activity.”
- Ben said, “My 1% better this week was starting a new job. My last job was very toxic with every bonus cancelled for the last 18 months and almost 100% turnover amongst leadership. This new role will help move me closer to FI while also giving me the ability to permanently work remote. I’m already using my credit card rewards points to book a trip in which I’ll work remote from the woods in a cabin for a week!”