Thanks, everyone! I should have mentioned that I discovered YNAB (You Need A Budget) at the end of 2022, and have completely turned our finances around since then. There is zero chance that we will ever get into debt again; I have our finances well in hand now, and have built up emergency funds in addition to everything I listed here. Both our jobs are very secure, and mine will grow over the next few years.
Our gross income is quite a bit higher than our AGI - it’s just under $100k. We have a short term rental that allows us to deduct up to $25k in losses. (No, we’re not selling it!) That’s the only home we currently own. I’m inheriting half of my parents’ house, which we’re currently living in. We’ll sell in 2 years, when our youngest graduates from high school, but that money will go to purchase a new home to live in (smaller and further out!). Fortunately my sibling, the other inheritor, completely supports us staying here so we don’t need to change schools.
We’re in the 12% tax bracket, but I don’t know what the investment funds will do to that. Right now the $500k I’m about to inherit is in the trust Schwab account - we’re in the process of disbursing it. Those investments have a stepped up basis, of course, but I feel like I won’t really have a good handle on all this until we do our taxes for this year.
One reason why I’ve been trying to maximize how much we get into retirement funds is that our older child is about to start college, and received quite a bit of financial aid, based on our 2022 tax return. FAFSA looks at all accounts except retirement accounts. I don’t know if there is any way he’ll keep any of his financial aid, but I’m hoping to maximize his chances. Especially since we really don’t have the kind of retirement savings we should at our ages!
Our gross income is quite a bit higher than our AGI - it’s just under $100k. We have a short term rental that allows us to deduct up to $25k in losses. (No, we’re not selling it!) That’s the only home we currently own. I’m inheriting half of my parents’ house, which we’re currently living in. We’ll sell in 2 years, when our youngest graduates from high school, but that money will go to purchase a new home to live in (smaller and further out!). Fortunately my sibling, the other inheritor, completely supports us staying here so we don’t need to change schools.
We’re in the 12% tax bracket, but I don’t know what the investment funds will do to that. Right now the $500k I’m about to inherit is in the trust Schwab account - we’re in the process of disbursing it. Those investments have a stepped up basis, of course, but I feel like I won’t really have a good handle on all this until we do our taxes for this year.
One reason why I’ve been trying to maximize how much we get into retirement funds is that our older child is about to start college, and received quite a bit of financial aid, based on our 2022 tax return. FAFSA looks at all accounts except retirement accounts. I don’t know if there is any way he’ll keep any of his financial aid, but I’m hoping to maximize his chances. Especially since we really don’t have the kind of retirement savings we should at our ages!
Statistics: Posted by SooooMuchToLearn — Fri Aug 09, 2024 11:59 am — Replies 5 — Views 249
