Gift Tax 101: The Tax Consequences Of Giving Large Sums Of Money

Gift Tax 101: The Tax Consequences Of Giving Large Sums Of Money

Not too long ago, a member of the ChooseFI Facebook group asked how much cash they could give to their parents without having to pay taxes on it. Now, for those of you who don’t know, this person is referring to what is known as a Gift Tax. If you gift large sums of money, investments (savings bonds, etc.), or items like cars, you could be stuck paying a Gift … Read more

How Estimated Quarterly Taxes Work

How Estimated Quarterly Taxes Work

If you’re taking on a side hustle or you’ve launched your own business in your post-retirement life, you may have little experience in handling your own estimated taxes. While almost everyone is required to file a tax return by April 15th, the self-employed will have some regular tax bills throughout the year. The basic rule of thumb is that if you think you will owe more than $1,000 in taxes … Read more

Health Flexible Spending Accounts: When You Can Use Your FSA Money

Health flexible spending accounts (FSA) allow you to pay for out of pocket health care costs with pretax dollars. An FSA is typically a bank account that offers a debit card or checks you can use to make purchases or reimburse yourself for qualified costs. Unfortunately, this benefit has to be offered by your employer in order to use it. The Benefit Of An FSA In 2018, you could contribute … Read more

How An HSA Fits With Your FIRE Plans

How An HSA Fits With Your FIRE Plans

When your primary financial goal is to retire early and become financially independent, sometimes it feels like you can only do so much. If you’re already maxing out your IRA and 401(k) every year you might assume that you are left with only taxable accounts to invest your cash in. Thankfully, the HSA is a perfect third option for investing in your future. It may sound like a basic savings … Read more

The Triple Tax Benefits Of The HSA

In the land of opportunity, one major question remains for those who seek to retire early: How will I pay for healthcare? The fate of the US healthcare system is always up in the air and it’s not clear what the future holds for those who retire before they’re eligible for Medicare. Some FIRE devotees have decades to wait before they qualify, which means decades to decide how to fund … Read more

Why You Should Fund Your Roth Even If You Won’t Need It

If you’ve read anything from the financial independence community, you’ve read about Roth IRAs. They provide tons of benefits to all retirees, like tax-free growth and the absence of required minimum distributions. There are some benefits more applicable to early retirees, like the ability to access principal before age 59.5. But, what if you don’t need to access principal early, or expect to have enough passive income to sustain your … Read more

HSA Study–How I Saved Thousands Switching To An HSA

I used to attend “Broke University” where most of my financial decisions were short-sighted, based on what I could afford today and ultimately resulted in a poorer me. I couldn’t see past what I needed right now. It was survival mode always and I often borrowed from Peter to pay Paul. There was no room for optimization or cost/benefit analysis in this lifestyle. I was stuck in the bottom level … Read more

How To Plan Itemized Deductions With The New Tax Bill

This new tax bill has really gotten some press coverage, huh? And let’s be honest, it hasn’t been too good. So, how about some real analysis so you can use it to your advantage instead of worrying about how it’s going to be detrimental? By Bunching Deductions, You Can Deduct More Than Your Expenses! Given that the new tax bill contains a higher standard deduction and limits itemized deductions, is … Read more

043 | Drawdown Strategy | The Retirement Manifesto

In this podcast we have a far-ranging conversation with Fritz from the Retirement Manifesto about retirement drawdown strategies, his ‘buckets’ system, and his upcoming retirement. In Today’s Podcast we cover: Retirement drawdown strategies with Fritz from Retirement Manifesto How Fritz focuses on what life is about after retirement such as how you’re going to spend your time Fritz is 9 months away from retirement himself A background on his story … Read more