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Two retirees with identical $1.5 million portfolios can end up with $7,000 more in annual spendable income simply by living in Florida instead of California.
REIT and BDC distributions like those fromOandARCCare taxed as ordinary income up to 37% federally, costing a California retiree roughly $186,000 over a 25-year retirement.
Treasury interest is exempt from state taxes by federal law, makingSGOVa powerful income tool in high-tax states like California.
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Picture two retirees with identical $1.5 million portfolios throwing off $80,000 a year in taxable portfolio income.
If that income is taxed as ordinary income and falls in California's 9.3% bracket, the California retiree could lose about $7,440 a year to state income tax alone.
The state is not, and that single variable can rewrite the math of retirement.
Many retirement income plans still anchor on gross yield and stop there.
That misses the order that matters in real life: the IRS gets paid first, the state may get paid second, and Medicare can raise premiums when income pushes a retiree across an IRMAA threshold.
Here's a question most people 5y from retirement can't answer: at your current savings rate, how much do you need, and how long will itactuallylast? A good advisor can put a date on that in a single meeting.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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