Various Documents of Interest
Sample Tax Return - Fr. John Poulos (Fictional Priest)
Sites of Interest
Various Items of Interest...
Projected Living Costs
If someone needed $50,000 a year to live on in 2007, and if one assumes an inflation rate of 4% (the average inflation rate for the prior 25 years was 4.27%), they would need the following in the years below:
2012 – $60,833
2017 – $74,012
2022 – $90,047
2027 – $109,556
Interesting Facts from 1968
Average cost of a new home – $14,975
Average Income – $7,844
Average cost of a new car – $2,822
Gallon of milk – $1.21
Gallon of gasoline – $0.34
Loaf of bread – $0.22
Life Expectancy (from 2010 IRS Pub. 590)
Present age / Projected Life Expectancy
Traditional IRA – amount of contribution is pre-tax. All withdrawals are taxed.
Roth IRA – amount of contribution is after-tax. Earnings are not taxed when withdrawn.
The limit for 2017 contributions for IRAs is $5,500.
For those 50 and older the limit is $6,500 (often referred to as ‘catch-up contribution’).
A 403b is the 401k equivalent in the non-profit sector.
Most financial service companies are able to set one up.
Contributions to a 403b cannot be made directly by the clergyman. The contribution is deducted from his salary and sent by the parish directly to the company in his name.
The limit for 2017 contributions for a 403b is $18,000.
For those 50 and older the limit is $24,000 (often referred to as ‘catch-up contribution’)
Family Concerns and Other Issues
Umbrella Liability Insurance
Umbrella liability insurance is extra liability insurance that you purchase in addition to your regular insurance policies. As its name implies, umbrella insurance sits "on top of" your other insurance policies like an umbrella, to provide added financial protection in the event that other policies cannot cover the loss.
For example, let's say that you rear-end a luxury vehicle, and it turns out that you must pay far more than your insurance coverage allows. If you don't have an umbrella insurance policy, you'll need to figure out where to get that money. But if you do have umbrella insurance, then that policy would kick in and you would likely pay nothing out of pocket.
It used to be that only the very wealthy needed umbrella insurance. But anyone can be sued for any reason at any time, and umbrella insurance provides added protection against losses. If someone falls on your front steps or your tree falls on a neighbor's house during a storm, they can successfully sue you for damages. Anything that happens on your property or because of your property is your responsibility and may not always be covered by traditional homeowners' insurance. Umbrella policies provide protection in many situations that usual liability policies don't cover.
Coverage limits usually start at $1,000,000. However, premiums for Umbrella liability insurance are very inexpensive. Everyone should consult with their insurance agent about adding this valuable coverage.
© 2017 by Fr. Michael T. Kontogiorgis