It is that time of year again. Time to pay the tax man. At least for most people.
For the past two years we have shared our tax returns (2013, 2014), showing investment income of nearly $100,000 and a Federal Income Tax bill of $0.
This year is a little different because we violated Principle #1, Choose Leisure Over Labor, and this little blog accidentally earned a few bucks. Apparently I’m a business owner now. While that opens up all kinds of interesting tax opportunities, which I certainly capitalized on, having earned income changes the game a bit.
So earlier this year I shared how International nomads like us can have earned income over $100,000 while still paying zero Federal Income Tax. Which is pretty cool.
But you are probably thinking, “Yeah, yeah, they earned $100k and paid zero income tax. Again…” *yawn*
I agree, that is sooo 2013. Which is why this year, I had the IRS pay us.
A year ago, I was evaluating moving our portfolio to 100% equities. Posterity will appreciate it.
A lot has changed since then, so I wanted to share an update.
Cycling in Paris (photo credit)
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“You guys are going to Europe for 4 months?! That sounds wonderful, but… isn’t Europe expensive?”
“How are you going to work the higher cost of European travel into your budget?”
“Will you have to miss out on some amazing European restaurants and eat more peanut butter and jelly?”
Since sharing our big 2016 travel plans a few months ago, various forms of these questions have been sent our way.
I prefer strategic lifestyle design to tactical spending plans like a budget. We aren’t going to limit our European gastronomic experiences with an artificial spending ceiling. (Thank you United States Congress for the inspiration!)
Certainly Europe will cost more than budget destinations like Thailand or Guatemala. So how will we pay for it?
The short answer is: I don’t really intend to.