2014 Tax Brackets and Standard Deductions

On April 20, 2014, in Finance, by Early Financial Freedom
0

We’ve just wrapped up our 2013 taxes but it is never too early to plan for the next year’s taxes!

 

2014 Tax Brackets and Standard Deductions

 

Married Individuals Filing Joint Returns and Surviving Spouses

 

If Taxable Income Is:                       The Tax Is:

Not over $18,150                                10% of the taxable income

 

Over $18,150 but                                $1,815 plus 15% of

not over $73,800                                 the excess over $18,150

 

Over $73,800 but                                $10,162.50 plus 25% of

not over $148,850                               the excess over $73,800

 

Over $148,850 but                              $28,925 plus 28% of

not over $226,850                               the excess over $148,850

 

Over $226,850 but                              $50,765 plus 33% of

not over $405,100                               the excess over $226,850

 

Over $405,100 but                              $109,587.50 plus 35% of

not over $457,600                               the excess over $405,100

 

Over $457,600                                    $127,962.50 plus 39.6% of

the excess over $457,600

 

 

Single Taxpayers

 

If Taxable Income Is:                      The Tax Is:

Not over $9,075                                  10% of the taxable income

 

Over $9,075 but                                  $907.50 plus 15% of

not over $36,900                                 the excess over $9,075

 

Over $36,900 but                                $5,081.25 plus 25% of

not over $89,350                                 the excess over $36,900

 

Over $89,350 but                                $18,193.75 plus 28% of

not over $186,350                               the excess over $89,350

 

Over $186,350 but                              $45,353.75 plus 33% of

not over $405,100                               the excess over $186,350

 

Over $405,100                                    $117,541.25 plus 35% of

not over $406,750                               the excess over $405,100

 

Over $406,750                                    $118,118.75 plus 39.6% of

the excess over $406,750

 

 

Standard Deductions

 

Filing Status                          2014                2013

Married Filing Jointly               $12,400           $12,200

Single                                      $6,200            $6,100

 

10 Characteristics of Debt-Free People

On February 6, 2014, in Finance, by Early Financial Freedom
0

I just read an article on MarketWatch.com titled “10 characteristics of debt-free people”. I am a debt-free person so I was curious to see what they have listed. You may read the original article here.

 

10 Characteristics of Debt-Free People 

1. They pay attention to details [I totally agree with this]

2. They know their stuff [I totally agree with this]

3. They pretend they make less [I agree with this]

4. They think long term [I totally agree with this]

5. They aren’t afraid to ask [I totally agree with this]

6. They save [No brainer - I totally agree with this]

7. They set goals [Another no-brainer, I totally agree with this]

8. They say no [Skipping That Latte Alone Won’t Make You Rich! but I agree with this]

9. They know the value of cash [I personally like using credit cards so I can keep track of my expenses to pennies. I of course pay it off every month]

10. They value experiences over stuff [I totally agree with this]

 

Here are the Some Financial Rules that Our Family Practices:

First and foremost, have your family in order. A stable family where husband and wife have similar or same set of goals is the bedrock of financial and emotional stability.

It’s always The Family Finances, never his or her finances.

Be happy with what you have, not with what you could or should have!

Do not compete with Joneses! One of the best ways of doing this is to live in a neighborhood that does not force you to compete with others in the first place. For example, drive a modest car and live in a place where everyone drives modest cars. Don’t get me wrong competition can be a good thing, but in the case of “Keeping up with the Joneses” it can lead many to an unhappy bankrupt life.

Be mindful of your financials. Always plan ahead. Never ever carry any credit card debt. That does not mean don’t use credit cards. Do use cash reward credit cards all the time so you can track your expenses AND earn money, but don’t go above what you know you can’t afford.

Try to make as much money as you can. One of the best ways of doing this is to work for you; own a business. Keep in mind that owning a business could be as simple as having a website or selling something that is in demand and you know how to make or provide!

Save as much as you can. Choice of saving may vary, but do save!

Always live below your means, regardless of your income.

Know, plan, and track your cash flow for short-term and mid-to-long term

OVER estimate your future/potential expenses and UNDER estimate your future/potential income.

Live in a good public school district so you can avoid the expense of a private school and take advantage of the free amenities, such as library, community center, tennis court, etc.

 

Retirement Roadmap: 12 rules of the road

On January 23, 2014, in Retirement, by Early Financial Freedom
0

I have an account with Fidelity and like their weekly Viewpoint articles. In the latest Viewpoint, they have rules of road suggestions for a successful retirement. I am just mentioning the main points, you may read the full article here.

 

1. Aim to save 10%–15% or more of your income each year, including any company match

2. Don’t be too risk averse

3. Be mindful of taxes and expenses

4. Location matters

5. As a starting point, plan on needing 85% of your preretirement, after-tax income in retirement

6. Aim to accumulate at least 8X (eight times) your ending salary before you retire

7. Plan for success

8. Guard against inflation

9. Plan on covering essential expenses in retirement with guaranteed income like Social Security, pensions, and annuities

10. Be careful not to withdraw too much too fast

11. Stick with your plan

12. Take action if you’re behind

 

I think these 12 rules of the road followed properly would make you a happy and healthy retiree when it is time!