Gilberto de Piento's Journal

Where are you and where are you going?
Gilberto de Piento
Posts: 1630
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento »

I listened to a podcast about taxes last night just as background noise and it occurred to me that I haven't really done any thinking about taxes. Two things I need to do:
1. Account for taxes in my calculations for when I am financially independent. I will be further away from the goal line once I account for taxes since the necessary withdrawals will be in the 10% and 12% brackets except for any dividends. :(
2. Research if I should be investing differently or otherwise doing a better job of avoiding taxes. It seems very complicated since I don't have a very specific plan and I have a partner who is on a different path.

Gilberto de Piento
Posts: 1630
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento »

March 2021

The good:
- Net worth (not just FIRE assets as shown in the chart below) is now over $0.6 million (note the use of millions - someone recommended that earlier in this journal and I like it :mrgreen: )
- Received a stimulus check and tax refunds from the government
- The stock market went wild again

The bad:
- I spend $324 repairing / maintaining my car
- I spent $600 on a touring bicycle. I definitely did not need this but it was something I wanted and one became available. It should hold its value well enough and I will probably sell some other bike stuff to offset part of the cost. #YOLO, aspirational purchase on this one. :roll:
- I paid for online tax prep twice

Despite my previous post I haven't looked into taxes yet. I fear that once I account for that in my planning I will be feeling far from FI again. Same for healthcare.

Haven't been able to find and purchase a "unicorn" car yet. Still looking. Need to check websites more often and move faster when one seems to meet my criteria but also be patient.

Expenses
Auto & Transport 324.41 (Parts to repair / maintain car, gas)
Auto Insurance 28.87
Bills & Utilities 149.26 (A little high)
Business Services 33.98
Charity 30
Entertainment 14.38
Fast Food 7.22
Groceries 322.75 (A little high)
Gym 46.95
Home Improvement 1.04
Mortgage & Rent 790.73
Restaurants 4.02
Sports 600 (Bought another bicycle)
Taxes 424.98 (200 is monthly property taxes. The rest is online tax prep by both HRBlock and TurboTax. See earlier posts.)
Total -FI 2778.56

Income
Paycheck 2664.28
Amazon 24.98
CafePress 26.18
Checking 2.62
Gift 100 (Payment for work)
457b 1500
Taxes 1812 (1400 is a federal stimulus payment, the rest is federal and state tax refund)
Total +FI 6130.06

Savings 3351.51
Savings wo 457b 1851.51

% Spent 45.3%
% Saved 54.7%

SWR 7.6%
SWR with Internet Income 7.4%

Years Remaining 13.3 (way up due to high monthly expenses)
Year Remaining with Interest 5


Any idiot can face a crisis - it's the day-to-day living that wears you out.
Anton Chekhov

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