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Old 10-02-2017, 07:15 PM
 
4,447 posts, read 2,624,703 times
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Quote:
Originally Posted by Nefret View Post
I'm interested in knowing what others do who have RMD's but do not need these funds for living expenses.

Some of my friends use this money for traveling, but I'm not really interested in traveling. Another friend puts his back into taxable mutual funds but he is already financially comfortable.

I guess, my feeling is, not knowing how many "good" years we have left, we should live it up a little and loosen up with our tight grip on our money.
Live it up a little, then as noted reinvest what you don't "live it up " with.

When my father faced this, he bought an annuity with some ( I don't care for annuities, but....), reinvested some and *gave me* a little ( NOT a hint to you to give me some, it wasn't much that he gave me, but it bought new tires and breaks on my vehicle). ( though if you have children you could * give* them some for an investment account for them, or help pay off student loans etc).you can also gift to favorite charity or PBS station.

But first, if you have been tight with your funds, ahem, I mean *frugal*, Live It Up a little first.
Take the vaaction you always,wanted, remodel your kitchen or bath, or just enjoy yourselves, splurge a little on restaurants out, a little shopping spree, invest in a new hobby you've always wanted to try.

Enjoy yourselves, if you can hold your own without the extra funds, enjoy It!

( of course in case medical issues show up in the future the prudent thing would be to invest for medical bills NOT covered by insurance. )

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Old 10-02-2017, 07:22 PM
 
Location: Central IL
15,253 posts, read 8,560,668 times
Reputation: 35693
Seems weird to treat it as "found money" and to "live it up" with it. You likely were doing calculations based on that money so to just spend more than you're budgeting seems unwise. If you weren't living it up before RMDs then why start when they do? Keep to your budget and reinvest whatever you don't need, hopefully getting a similar return as before.
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Old 10-02-2017, 07:34 PM
 
Location: Raleigh
8,047 posts, read 5,907,100 times
Reputation: 9785
Nope, invest it in crazy wild stocks and make the grandchildren rich.
I'd suggest Cobalt miners.

Last edited by Crashj007; 10-02-2017 at 07:35 PM.. Reason: add suggestion
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Old 10-02-2017, 07:35 PM
 
549 posts, read 254,821 times
Reputation: 2241
Quote:
Originally Posted by reneeh63 View Post
Seems weird to treat it as "found money" and to "live it up" with it. You likely were doing calculations based on that money so to just spend more than you're budgeting seems unwise. If you weren't living it up before RMDs then why start when they do? Keep to your budget and reinvest whatever you don't need, hopefully getting a similar return as before.
Well, I do want to treat it as found money. Our SS and pensions are more than enough to cover our living expenses and it would be nice to do something different with this "extra" money.

I have Vanguard make an automatic transfer into a taxable fund and with my other account at Rowe Price, I've put the money into granddaughter's college fund. This year we remodeled our bathrooms.

I like the idea of paying off our kids student loans. I'm also thinking it would be nice to purchase a vacation place, convenient to the whole family, where we could have family gatherings, hubby and I could spend part of the year there, and something to pass on to our 2 adult kids when we are gone. The yearly RMD's would cover the mortgage.

As I said in my OP, not knowing how many "good" years we have left, perhaps it is time to live it up a little. When I said that we live below our means---live frugally--I don't mean that we deprive ourselves. We just don't have expensive tastes. Also we live in a low cost area with relatively inexpensive golf, skiiing, etc.
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Old 10-02-2017, 07:55 PM
 
Location: Central IL
15,253 posts, read 8,560,668 times
Reputation: 35693
Quote:
Originally Posted by Nefret View Post
Well, I do want to treat it as found money. Our SS and pensions are more than enough to cover our living expenses and it would be nice to do something different with this "extra" money.

I have Vanguard make an automatic transfer into a taxable fund and with my other account at Rowe Price, I've put the money into granddaughter's college fund. This year we remodeled our bathrooms.

I like the idea of paying off our kids student loans. I'm also thinking it would be nice to purchase a vacation place, convenient to the whole family, where we could have family gatherings, hubby and I could spend part of the year there, and something to pass on to our 2 adult kids when we are gone. The yearly RMD's would cover the mortgage.

As I said in my OP, not knowing how many "good" years we have left, perhaps it is time to live it up a little. When I said that we live below our means---live frugally--I don't mean that we deprive ourselves. We just don't have expensive tastes. Also we live in a low cost area with relatively inexpensive golf, skiiing, etc.

Okay...if this "realization" happens to have coincided with your RMDs starting then good for you. Why weren't you doing this stuff before? Did something else happen to change your perspective? I guess you'd already pretty much made up your mind before you even posted this?
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Old 10-02-2017, 08:21 PM
 
Location: Houston
1,151 posts, read 953,420 times
Reputation: 1291
I am fine with leaving a lot to charity. However, that would probably amount to a lot more money if I donate later after I shuffle off this mortal coil. Until then, I will probably spend a reasonable amount to enjoy life while I can. Better to donate the rest after it grows some more ... probably more than it would in the hands of whoever would get it now.
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Old 10-02-2017, 08:49 PM
 
4,447 posts, read 2,624,703 times
Reputation: 10380
Quote:
Originally Posted by Nefret View Post
Well, I do want to treat it as found money. Our SS and pensions are more than enough to cover our living expenses and it would be nice to do something different with this "extra" money.

I have Vanguard make an automatic transfer into a taxable fund and with my other account at Rowe Price, I've put the money into granddaughter's college fund. This year we remodeled our bathrooms.

I like the idea of paying off our kids student loans. I'm also thinking it would be nice to purchase a vacation place, convenient to the whole family, where we could have family gatherings, hubby and I could spend part of the year there, and something to pass on to our 2 adult kids when we are gone. The yearly RMD's would cover the mortgage.

As I said in my OP, not knowing how many "good" years we have left, perhaps it is time to live it up a little. When I said that we live below our means---live frugally--I don't mean that we deprive ourselves. We just don't have expensive tastes. Also we live in a low cost area with relatively inexpensive golf, skiiing, etc.

OP, I say go for It!

( or you COULD give some to me )

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Old 10-03-2017, 01:02 AM
 
6,353 posts, read 5,170,148 times
Reputation: 8528
With the stock market up more than 200% since 2008, of course some of it feels like found money.

Buy a QLAC to the maximum permitted (to avoid income tax on the distribution), then invest in after-tax accounts or else just spend it.

QLAC: qualified life annuity contract.
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Old 10-03-2017, 02:53 AM
 
Location: Tampa, FL
27,798 posts, read 26,244,921 times
Reputation: 14611
Quote:
Originally Posted by Nefret View Post
I'm interested in knowing what others do who have RMD's but do not need these funds for living expenses.

Some of my friends use this money for traveling, but I'm not really interested in traveling. Another friend puts his back into taxable mutual funds but he is already financially comfortable.

I guess, my feeling is, not knowing how many "good" years we have left, we should live it up a little and loosen up with our tight grip on our money.
That's what I plan on doing, I guess. Maybe use it to keep the home nice/renovate as needed.
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Old 10-03-2017, 04:22 AM
 
Location: Ypsilanti, MI
2,452 posts, read 3,674,074 times
Reputation: 4835
If one of your goals is to leave a legacy to your kids and/or grandkids, then use some of the RMD proceeds to purchase life insurance. They will receive a larger legacy and it will be tax free for them.
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