UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: tsouth Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75838  
Subject: Re: Tax Liability and House Payoff Date: 6/28/2001 1:44 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
1) If I were to take a 4% distribution annually (from funds/stocks that has been invested for over 2 years), what are my tax liabilities at the time of withdrawl? Do I still pay FICA, etc? Is my Federal tax capped at 20%? What about State (VA) taxes? Is there an advantage to getting a part-time job?

2) If the 4% withdrawl is a good assumption and I have a $250K mortgage with annual payments of $30K, should I not pay off the mortgage (25 years left) since the $250K would only generate about $10K long term? This would allow me to withdraw less than 4% annually since my salary requirements would be reduced drastically.

....................

Just a couple of thoughts: Any interest in moving to a less expensive cost of living area in a state with no income tax? Also, have you considered selling your house and moving into something smaller/less expensive. In general, I would think a few changes in lifestyle might help for early retirement.

Having said that, how you spend your money and time is entirely your decision.

Congrats on the ability to consider early retirement!

Teresa
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Should You Be an Index Investor?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement