Test Blog

I was updating my net worth info at NetWorth.Com  when I noticed that I had three questions.  Wow, I have a few readers out there in cyberspace...awesome!  Here are the questions followed by my answers: Cheers posted:   "I am curious if I am understanding your profile comments correctly. You max out all your retirement accounts, and because of this, you need to supplement your income with 72t SEPP distributions from your IRAs?  So basically, you are still funding your IRA's, but taking 72t distributions at the same time? Is there an advantage to this? It seems like it would make more sense to just cut back on your retirement contributions, so you don't lock yourself into the 5 (or more) years of required 72t distributions." EM :  Cheers, good question.  My wife and I started our SEPP plans to provide us with a stream on income that will give us more flexibility.  Currently, we have a stream of  $18,000 per year that we use to pay our mortgage and other living expe...

In May of 2009, my wife and I were exhausted and in need of a change of scenery.  Our teaching jobs in LaGrange had become more and more hectic and less and less enjoyable.  One morning as I perused my Teach Georgia account, I came across jobs for both of us in Echols County . On a whim, I decided to apply for the jobs just to see if we might get an employment nibble. Later that morning around ten o'clock, I saw that I already had an email and a phone message expressing an interest in interviewing us.  That night I spoke with the assistant principal and set up an interview for the following week.  In a span of twelve hours, our job prospects had dramatically changed for the better. Naturally, I started researching the area and found out that Echols County was very different from the rest of Georgia.  First, the county had less than 4,200 people in its 421 square miles.  Most of the economy consisted of agriculture and timber...not exactly big city living.  I had always heard th...

     Taxes…everybody complains about them, but nobody does anything about them.  If you want to control your tax obligations, you first need to determine how much “free money” the government allows you to earn in a given year before it starts taxing you.  Free money is your 0% effective federal income tax bracket; any money earned after your free money limit is going to be taxed.  Once you know at what point the government starts taxing your income,  YOU   can decide how much you will pay in taxes.      There are three components to your free money calculation:  the standard deduction, your personal exemptions and any tax credits you qualify for.  Here is a basic breakdown of these three free money factors. Standard Deduction  – To calculate your standard deduction you have to first determine your filing status.  Depending on your circumstances, you will file as single, married filing jointly, married filing separately, or head of household.  For 2013 these amounts range from $6,100 to...

Okay, it’s time to state a few goals that we hope to reach in 2013. Our savings goals are in the box below. We plan on saving over $100,000 by maxing out all of our retirement, educational and health savings accounts. Since I will turn 50 this year, I am now eligible for the catch-up contributions to my various retirement accounts. Consequently, I will be able to add an extra $1,000 to my IRA and $5,500 to both my 457 and 403b accounts; this will result in an extra $12,000 to my retirement savings. Getting older is not all bad. 2013 Savings Goals Accounts Self Wife Total 457 $23,000 $17,500 $40,500 403b $23,000 $17,500 $40,500 IRAs $6,500 $5,500 $12,000 Health Savings $6,450 $6,450 Total Retirement and Health Savings $99,450 Educational Savings Son Others Total Coverdale ESA $2,000 $0 $2,000 529 Plan $300 $300 $600 Total Educational Savings $2,600 Grand Total $102,050 Our spending goal this year is to live on $51,750. That number is based on our “free money” plus the 10% federal inco...

  Happy New Year to any and all Millionaire Educator readers!  Overall, 2012 was another great year in many ways.  Financially, we made out like bandits by savings over $91,000 in our various accounts.  Once again we maxed out all of our retirement accounts, funded various educational accounts, and started a health savings account at Alliant Credit Union ( link ).  Professionally, we left our jobs and moved back to our home in west Georgia.  My wife landed a job at a middle school and I took a job at my old high school.  Unfortunately, it only took me about ten days to realize that I had made a mistake; I should have realized that I was too burnt out to take a new job.  I next did what I had to do and resigned. Ever since late August I have been on a self-imposed sabbatical.  I now occupy my days with jogging, exercise, books and cooking.  All in all, my decision to resign was the best thing for me, but I was not happy about my abrupt departure.  I hated bailing out on co-workers...