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i started reading ed slotts book. some pretty cool ideas in the book. i figured id pass some on to you.
if you have a tradional ira thats will be taxable and faced with rmd's what you can do is instead of leaving your wife as beneficiary leave your kids as beneficiary... lets say you have a tira worth 500k... leave your kids as beneficiary instead of your wife... with some of the money from the ira buy a life insurance policy on yourself for 500k... at your death your wife gets to keep 500k tax free in life insurance, the kids get to take withdrawls over their lifetimes of the ira money allowing it to grow and producing much smaller taxable amounts over their life time then your wifes would have been. no more rmds either on that ira to contend with for your spouse
or take some of the rmd's and leverage that money big time by buying a life insurance policy on yourself with the kids as owners. give them a gift of the money each year to pay the policy... at your death they will get a tax free pay off far above what the policy probly cost and it passes outside your estate tax free. a side benefit is if you were concerned about over spending in your lifetime and leaving little for your kids then this is a way to get yourself to spend more as the kids will be taken care of with the insurance
your pretty much trading taxable money into tax free money of much larger amounts.
Last edited by mathjak107; 11-01-2009 at 02:20 PM..
i was curious too after seeing the show so i sprung for the book ha ha
it was nice easy reading and i did get quite a bit out of it so i figured i would share it. it certainly makes alot of sense.
ed is local to us being right here in long island so i have intentions of setting up a consultation next year before we put our final plans for retirement in motion.
your welcome, thats why i take the time to post all this crap... hopefully someone will see something that peaks their interest and they will do their own home work on it...
thats how i learned, on other forums folks would post things they knew or did and eventually you get lots of good ideas that are thinking outside the box.
then id check them out, and draw my own conclusions.
I'm sure these are dumb questions but here goes......are the books geared for those still contributing to their retirement nest eggs or for those who have reached the point of having to draw from them? Are they geared only for large retirement balances (excess of say $500K) or both? Since I am currently unemployed and at an age I could take early social security, I am watching what I spend my unemployment benefits on. Thanks for posting this information initially and any input from my questions.
Absoluetly for everyone.. its even more important for those on limited savings to not pay 1 penny more in taxes as well as get the biggest bang for the buck. everyone has a vested interest here otherwise uncle sam will put you on his plan and take whatever he can
If you're a Barnes and Noble member, you can access Ed's entire book online for free. I just so happened to pull it up after seeing him on PBS here in Tampa for a fundraiser.
to add insult to injury his show was on tv last night...everything in the book was presented in the show...
the truth is the info is priceless that ed offers and is well worth any price for most of us.
i find ed to be the best in the business for planning out the tax efficiancy part of the plan.
i love his analogys he makes to uncle sam being your partner in your retirement money and we all better buy him out while taxes are still on sale.
if you think about it ,its very true.. with our homes we have a mortgage and at least we know how much that mortgage is. with our retirement money that too has a mortgage and the problem is we have no idea what we owe on that.... sooooooooooo taxes are the lowest in history now, it makes the most sense to buy your partner out now before the retirement money grows more or taxes get higher.
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