Tag: 401(k)
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Investing for Retirement
The Time Value of Money I spent more than half my working life saving in whatever guaranteed pension plan my employer offered, but a change to a 401(k) plan finally forced me into making my own investment decisions. My Portfolio After a lot of reading and some false starts, I retired with these assets: The…
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Savings & Withdrawals
A Savings Model Instead of using ballpark numbers like 25 times your annual expenses, or 8 times your annual salary, a better approach to estimate retirement savings needed is to use your personal history of income and expenses, adjusted for changes in retirement. You can do this with a program called FIRECalc. This chart shows my actual balance history, predicted…
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Taxes in Retirement ⚖
Goodbye Withholding, Hello Estimated Taxes Home Sales 🏠 The details are in IRS Publication 523, Selling Your Home. The summary is that there are exclusions from capital gains of up to $250,000 for single or $500,000 for joint returns for your primary residence. In general, there are three qualifying tests: There are other exceptions that may…