I would like to get some input for what to do with the money after we sell our house. We will after sale have 400K extra available to invest, in addition to the 300K that we have invested now.
I live in Norway with Norwegian tax rules. After FIRE, we can each have a 5,5K yearly income without paying taxes over that. The next bracket it still taxed pretty low. Our planned expenses during FIRE are 50K per year on average.
On stock sales, we need to pay almost 32% tax, which is defined as income.
Currently we have roughly 300K in a stock account with deferred taxes. If we sell stock and take it out of that account, we first take out all the money we put into it, tax free. When the original sum is gone, we take out the remaining profit, which is then fully taxable. Until that time, you can use the profit to make passive money.
If we put all our money into this type of account with deferred taxes, we can take out our yearly expenses for 13 years without being taxed for profit, and the 7 years after that being taxed for the entire sum that is taken out.
After 20 years, we will receive our pensions and the stash will be mostly gone.
Would it be smart to put the money from the house sales in a stock account that is normally taxed? When I then sell, I pay taxes over the part that is profit and hopefully that is within the range of tax free yearly income.
The issue is that I think we might generate some income from side gigs in the first couple of years. But I think it is difficult to tell on forehand how much income that will generate.
My idea is to put the house money in a normally taxed account (and an amount in bonds). And maybe decide per month from which account we can best sell the stock, from the normally taxed account, or from the deferred taxed account.
Any insights on this plan?