The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: znzn31 on September 09, 2013, 03:02:18 PM
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First-time poster here - great forum
I am in my early 30's and have saved 435k after paying off my student loans from undergrad and graduate school (~50k), vehicle (~8k) and credit card (3k). Although I do not have a solid investment plan yet, I am happy with where I am financially.
After working very hard the last few years, I am ready for a break. Currently overseas, I'll be headed back to the US before reaching my 330 days for the Federal tax exemption on the first ~90k...I'll only be at 5-6 months. Instead of losing the tax benefits, I am thinking about extending my time overseas by taking a round-the-world vacation for 6 months.
I would recoup around 5k in state taxes and 20k in federal taxes from the exemption, giving me a very nice paid vacation, right?
Any feedback on what I may be missing here? Is this a good idea?
Thanks all
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Sounds FANtastic to me!
And kudos to you for your excellent savings!
Only question I have, is whether the break in employment will in any way affect your future prospects? (Although it seems to me, an around-the-world trip wouldn't exactly hurt you in most fields, and might help in some).
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Isn't 435K about the amount you need to retire and not worry about future employment at all?
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This is actually kind of brilliant. Well done, znzn31! The only concern I have is making sure the exclusion works if you travel to other countries rather than maintaining a tax home in one country. If it does, that's an awesome plan!
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Frugal - thank you. You bring up a point I didn't mention, but have thought of. I will have to take a break in employment, and there is a chance that I would not be able to return to my employer. I've weighed this and decided that I'm willing to risk it, given that I am somewhat burned out beyond what a 1-2 week vacation would help with :)
Half-Borg - I would like to think so, however I am no expert, and it depends on the person (or so I've learned reading the forums). I do know that I don't need a lot of money to survive. At the end of the day, I don't think I will ever truly settle down or retire until I have to; I'm too much of a busy-body. The money I've set aside will give me freedom, allowing me to take jobs that pay less but make me happier, or take breaks from work if I want.
Beltim - Thanks. My research is fairly solid. For US taxation, it doesn't matter as long as you remain outside of the country for 330 or more days (excluding flight time to/from). I am definitely shooting for awesome!
Thanks all!