Please excuse any random periods of seeming inactivity. I’m moving assets, and very busy with things at home. Thank you for your understanding.
I’m Pat Rosenheim, a.k.a. the PandA Trader.
Well, it’s official.
We’ve just filed our taxes, and our combined taxable income for 2017 was $4,665.
That puts us under the poverty level.
I’ve been dreaming of the day for quite a while, nearly all of my life.
The day when I don’t pay taxes anymore.
I need to put a little disclaimer in right about here…
We also had income that was untaxed from our Roth IRA accounts and from tax-free (some AMT-free!) holdings in our joint account(s) and my Robinhood account.
- I don’t feel obligated to give to charity (and enhance the salary of some CEO)
- It just feels good.
There’s more, but I don’t need to list them.
Any disadvantages would only begin to sound like advantages after closer inspection (I can’t afford to buy a boat that would be prohibitively expensive but I can rent one for far less money, I can’t buy a brand new fancy car for the same reason or I can keep my Prius, I can’t buy a big new house, nor can I hire the personnel necessary to ensure it was properly maintained and orderly, etc.)
I’m quite happy with my situation, and most of our income is untaxed. Far more that the $4,665 taxable income for 2017. About 3 times more. Plus Social Security.
Neither of us can cook, because it’s just too difficult. So, we go out to eat almost every day. I look for bargains, etc., and we don’t eat “fast food”. In fact, we eat pretty good.
If we had a car payment, or a mortgage, or credit card debt, we probably couldn’t survive.
We have a little cash saved, for emergencies.
I get more money every month.
We’re moving our investing accounts over to Merrill Edge, and will sign up for “Preferred Rewards” and we’ll get a free checking account and a savings account or two. We’ll pay no fees, and we’ll get free trades every month (at least 30 free trades, and I think it’s applicable to both of us separately so that would be 60 free trades a month). Either way, it’s more than enough for us.
I’m not really a “trader”, I’m more of an income investor. I like dividend income, and always look for more.
My wife doesn’t have an IRA anymore because we converted it to a Roth IRA. We lost some principal doing that, and consequently some dividend income. The trade-off is that now the majority of her income is untaxed.
I have a puny IRA with about $3,000 in it. I am slowly converting it to my Roth IRA each year so I avoid minimum distributions. Soon, I will also only have a Roth IRA.
We have a joint account that’s taxable, in which we hold some securities that pay tax-free distributions. And some of those are AMT-free! I doubt we’ll ever need that feature, however.
I don’t know how long we’ll keep the taxable account. Probably get rid of it if we have to start paying too much taxes on the income. Or, maybe we’ll keep it. Or, perhaps we’ll sell some or all of the holdings and use the cash for something we want/need.
The future looks bright indeed…
“Panda. Large black-and-white bear-like mammal, native to China. Eats, Shoots & Leaves.”
Don’t forget to get professional advice. I offer NO ADVICE because I am unqualified!
PLEASE TAKE NOTE AND REMEMBER THIS!
I’m not telling anyone to buy anything or giving anyone any advice, because that’s illegal. You see, I have no letters after my name, like RIA, CFA, etc. I SIMPLY DO NOT GIVE ADVICE. I only tell (and show!) what I do. You, like me, are all alone in this.
And remember, always do your own due diligence!