The accountant says we can retire early. Woohoo!!!

[CloverKnollFarms]

I want to avoid paying a double tax, as I believe this does. You are putting in already taxed dollars, if you do any withdrawals, profit basis are taxed. If you move the money later to say an annuity, that is taxed prior to purchasing due to buying at present value, not future value.

I have not found an investment vehicle that allows for not being taxed twice for that gap between retirement and 59 1/2.

You are taxed on gains, those tables are based on long term or short term investments, and on taxable income/filing status. It’s possible to have 0% capital gains tax. It depends on tax bracket and filing status.

 

[Snobdds]

Very true… a small time upscale builder that never graduated high school but very sharp builds spec homes…

He has 3 designs depending if flat, up slope or down slope so knows his material cost, labor with engineering, etc. all ready done and proven.

He lives in a 3 million home he built and his success is self funded…

Each home is owner builder…

He is a firm believer in education saying without doctors, lawyers and CPAs he would loose most of his buyers.

You can have a car in any color...as long as it's black.

People must really like their only choice in a house.

 

[Snobdds]

You are taxed on gains, those tables are based on long term or short term investments, and on taxable income/filing status. It’s possible to have 0% capital gains tax. It depends on tax bracket and filing status.

I know. That is why I said only profit basis are taxed.

If your living off the profits, how are they not being tax...twice.

 

[CloverKnollFarms]

I know. That is why I said only profit basis are taxed.

If your living off the profits, how are they not being tax...twice.

First, ours is a buffer. If I sell, I'm taxed on the gains, as per the long term capital gains tax brackets. Since my taxable income is under $93k, that bracket is 0%. I don't pay a federal tax.

Since our all-in expenses total $40k... I have zero incentive to earn much more than that, ever again. The wife can work part time and accomplish that.

The key for us was saving our retirement nest egg very early, then swapping to our brokerage savings to cushion the early exit. Now we just pay simple expenses as a debt free family, and enjoy life.

Even our sons 529 college savings, we stopped funding years ago, because growth would take care of the rest.

We were blessed that I had a $30k/month income, and we lived like I earned $50k per year. We saved fast and furious so that time would pay us, and it was less about what we invested in real dollars. Most of my peers still live paycheck to paycheck... There is no limit to what one can spend, or how long one needs to work to support consumption.

 

[ultrarunner]

You can have a car in any color...as long as it's black.

People must really like their only choice in a house.

Spectacular views with the same footprint… gingerbread easily adapted.

His current homes are 2m+ with 5 bridge views…

Specialty is downslope and where a typical owner builder maybe many years in design review complying with many facets getting a permit he is able to get through in 6 months…

When objections come up he says I built the same home last year at another city address and this has a lot of sway… city planners always cover themselves and saying no to the applicant only ticks off the applicant where saying yes can tick off lots of powerful and connected neighbors.

A lot of owner builders want things that will never get through and every revision costs money… sometimes a lot of money with no guarantee of success.

Many would not want a multi level downslope but for those professionals at want the location and views and the school district it’s money in his pocket…

A lot on my street has changed hands more than a dozen times in 35 years… no site issues but a bright eyed owner builder buys and then reality sets in and after a couple of years throw in the towel…

The university provost bought that lot for 500k and after 3 years gave up and sold during the 2009 downturn for 200k… rinse and repeat.

 

[Snobdds]

First, ours is a buffer. If I sell, I'm taxed on the gains, as per the long term capital gains tax brackets. Since my taxable income is under $93k, that bracket is 0%. I don't pay a federal tax.

I looked it up and your are correct. $0 tax on profits if income is less than 94,050.

Damn, that is crazy.

I make too much and get taxed on everything I do.

 

[CloverKnollFarms]

I looked it up and your are correct. $0 tax on profits if income is less than 94,050.

Damn, that is crazy.

I make too much and get taxed on everything I do.

I used to make too much, then I retired... Problem solved. We went from $30k per month to $4k per month and I couldn't be happier.

 

[ultrarunner]

What about tax on unrealized gains Im hearing about?

 

[CloverKnollFarms]

What about tax on unrealized gains Im hearing about?

Supposedly that is for the ultra wealthy... You know, the evil people that need to be punished

 

[LittleBill21]

Supposedly that is for the ultra wealthy... You know, the evil people that need to be punished

I would love to see how that's not going to backfire massively...