My wife and I use the Federal Income Tax Standard Deduction in conjunction with the Senior Tax Credit–for individuals 65 and over–which, automatically accounts for the quasi-Cost-of-living adjustment (that somewhat off-sets the cost of inflation.)For tax year 2024 we withdrew: Married Filing Jointly $29,200 Senior Tax Credit for Married Seniors $1,550 Total $30,750 Notes:1. We only take a withdrawal when we have a profit.2. And we put the withdrawal(s) in a high-yield savings account; that way when the market goes down, we have money set aside to riding out the markets downturns.3. Once we reach RMD age (75 for us) we’ll switch to withdrawing the annual RMD amount.
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My wife and I use the Federal Income Tax Standard Deduction in conjunction with the Senior Tax Credit–for individuals 65 and over–which, automatically accounts for the quasi-Cost-of-living adjustment (that somewhat off-sets the cost of inflation.) For tax year 2024 we withdrew: Married Filing Jointly $29,200 Senior Tax Credit for Married Seniors $1,550 Total $30,750 Notes: 1. We only take a withdrawal when we have a profit. 2. And we put the withdrawal(s) in a high-yield savings account; that way when the market goes down, we have money set aside to riding out the markets downturns. 3. Once we reach RMD age (75 for us) we’ll switch to withdrawing the annual RMD amount.
Post: Spending It
Link to comment from January 11, 2025