I’m so excited to share a new spreadsheet I recently created to estimate tax liability and optimize long-term capital gains (LTCG)! I know this sounds like an odd thing to get excited about—but hear me out. Since retiring earlier this year, early retirement tax planning has become a major focus for us. We have more than a decade before we begin to collect Social Security. And without steady paychecks, we’ll be relying solely on our savings and investments. Of course, we’d li

When I first heard about the zero percent tax bracket for long-term capital gains, I didn’t believe it. Mind you, I’m not talking about Roth IRA withdrawals, which are always tax-free. I’m talking about capital gains from stocks held in a taxable  brokerage account . The IRS not taxing this money sounded too good to be true. But it is true—the IRS really does let some of your investment gains be taxed at zero percent. Long-term capital gains actually have their own set of tax

(and why getting bumped into a higher tax bracket isn’t the disaster people think it is) In my previous post , I mentioned that capital gains and dividends can fall within a zero percent tax bracket if you hold your investments long enough. Imagine: legally not having to pay taxes on thousands of dollars of income. Cha-ching! But before we get that fun part—we need to clear up one thing: how our progressive income tax system works. Many people misunderstand how ordinary incom

In my previous post , we talked about capital gains—the money you make when you sell stocks for more than you paid. But that’s only one way stocks can make you money. In this post, we’ll take a look at the second way of making money with stocks: dividends . We’ll break down key dates to know about dividends and how to minimize tax liability. And we’ll also answer the big question every dividend investor wants to know—Is it possible to live off of dividends only? WHAT ARE DIVI

When I first started buying and selling stocks, I never held any shares for longer than a few months. Then tax season rolled around, and I found myself staring blankly at a Schedule D tax form, thinking, “What the heck are capital gains , and why did my tax liability jump?” If you’re new to investing, there are two ways to make money through stocks: capital gains and dividends. In this post, we’ll break down what capital gains are, how they’re taxed, and why your holding per

So you have health insurance. But do you know what you’re actually paying for? If the words premium, deductible, coinsurance,  and co-pay  sound like gibberish, keep scrolling. I’ll break down the most common health insurance terminology you’ll come across—without the jargon. Trying to understand your health plan can be as painful as hemorrhoids UNDERSTANDING THE COSTS BEHIND YOUR HEALTH PLAN Before diving into the alphabet soup of plan types, it helps to understand the basic

Health insurance is one of the biggest puzzles of early retirement—right up there with "what day is it again?" Six months into early retirement, I wish I could say health insurance isn't on my mind. But it is—a lot. It’s hard not to with health care costs being so high in the U.S. compared to other countries. It is a lot easier when you receive health insurance through your employer. They do all the legwork—they find the best plan and negotiate the best rates. All you have to

Your 401(k) is one of your most powerful tools to escape the rat race and reach financial independence. But like any tool, using it correctly makes a big difference. Even smart savers sometimes miss out on thousands of dollars (and years of growth) because of a few small mistakes. Here are 10 common 401(k) mistakes  — and how to make sure you’re getting the most out of your plan. NOT UNDERSTANDING YOUR 401(k) TYPE When 401(k)s were first introduced, there was only one type. Y

In your quest for financial independence, you can picture your personal finances as a bucket being filled with water . We're all trying to fill that bucket to the top, but the flow rate of money (income) and the leaks (expenses/inflation) determine how fast we get there. If you've been wondering where to put your money to make that bucket fill faster, you're in the right place. In this post, we'll cover the best financial accounts for beginners —the essential tools you need

If you followed along in my last post, you would have calculated your net worth , which tells you where you currently are in the rat race. The next logical question is: How much to save for retirement? To escape the rat race, you must figure out your ultimate goal: What net worth do you need to achieve your Financial Independence Number? Why is it important to figure out this target number? Well, imagine if you were in an actual physical race, except that there’s no clear fin

If someone asked you what your current net worth is, would you know the answer? Knowing your net worth is the single most important step in creating your plan to escape the rat race. It’s the same as planning a hike or any other trip; before planning how to reach your goal, you first need to know where you’re starting from. Net worth isn’t a term exclusive to wealthy celebrities. Everyone has a net worth. It’s simply a way to measure your financial health at any given time. M

Before I officially retired, I told friends that I was going to start a blog titled “FIRE before 50.” The number one response I got was people asking if I got fired. They questioned if I was hinting that I got ( wink wink)  laid off. It made me chuckle and also realize that not everyone is familiar with FIRE (spelled in all caps). So, I thought I’d share the different types of FIRE retirement today because it is, at the very least, interesting. It’s also somewhat cool to lear

A close friend recently asked if I used CDs (Certificates of Deposit) and would recommend them. So I thought I'd share my thoughts on CDs and tips on how to build a CD ladder. Let me start by saying that CDs are not great investments if you want to grow your wealth. Because they have such low risk, their rates of return are also very low. The annual percentage yield (APY) of CDs usually falls somewhere between 1%-5%. Not great at all. Sometimes, the APY can even fall well bel

Keeping your money in the bank is safe. The bank won’t lose your money, so it will always be there!  While the bank technically won't lose your money, the old wisdom is dead wrong . Let me explain why a standard savings account loses money to inflation every single year. In my previous post , I talked about how inflation drains your financial bucket roughly 3% per year. That number may seem trivial until you actually see how it affects your finances. If you haven’t done so

If there’s one thing that is constantly in the back of my mind when it comes to personal finances, it’s inflation. The effects of inflation on your financial health and retirement are devastating. Like many people, I used to brush off inflation as just a minor annoyance to put up with. But then I finally sat down with a calculator and saw how 3 percent inflation destroys savings over 20 years. And that’s when I had another oh, shit moment because I realized we were screwed i

Did you know that only 50% of Americans are considered financially literate? If you’ve been out of school for a while, 50% would be a solid F grade. Yikes! This statistic isn’t a one-time fluke either. According to an annual study by the Global Financial Literacy Center , this average has held steady over eight years, from 2017 to 2024. Globally, the picture doesn’t get better. A survey of 150,000 adults in over 140 countries determined that only 33% of adults are financiall