Mandatory Withdrawals - What to do with the money if you don't need it? (weather, inherit)
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Dude, I've worked in business and finance most of my career. I know all this stuff. I do retirement and tax planning. I'm doing the planning now so that I don't have to worry about it later.
Maybe it's flippant thinking or because I don't have heirs, but at age 70+, I don't plan on giving a "F" about taxes. I'm heading towards death. Who cares. Of course, taxation is a concern but it's not a main motivator in my late in life financial plans. I'm not going to be concerned about fighting Uncle Sam for the equivalent of a couple of hundred dollars a month. I should have enough to last me comfortably until I die.
I've never been one to have serious angst against taxes. People waste more money on useless things than they pay in taxes.
i much prefer to see our kids and grand kids enjoy anything left rather than our gov't . so my goal was to keep my good ole uncle sam out of my money as much as i can
If you reach the age of mandatory withdrawals (70?) from your IRA and Roth, you you don't actually need that money because you are just living on saving accounts, what do you do with that cash?
Do you just shift to a regular savings accounts, or is there some other kind of sheltered account you can send it to? Or is this when you starting giving a lot of money away?
If you are pleased with the vehicles (say a specific Mutual Fund) you presently have the money in, then re-invest in the same vehicle as a non-IRA.
I take nothing from my IRA's other then the RMD's.
I put my RMD (from Fidelity) in Vanguard Wellington.
i much prefer to see our kids and grand kids enjoy anything left rather than our gov't . so my goal was to keep my good ole uncle sam out of my money as much as i can
I once told my Brother In Law I knew how to pay no taxes. He was all ears saying tell me. I said: Make no money.
I say give me the money and I will worry about the taxes.
Dude, I've worked in business and finance most of my career. I know all this stuff. I do retirement and tax planning. I'm doing the planning now so that I don't have to worry about it later.
Maybe it's flippant thinking or because I don't have heirs, but at age 70+, I don't plan on giving a "F" about taxes. I'm heading towards death. Who cares. Of course, taxation is a concern but it's not a main motivator in my late in life financial plans. I'm not going to be concerned about fighting Uncle Sam for the equivalent of a couple of hundred dollars a month. I should have enough to last me comfortably until I die.
I've never been one to have serious angst against taxes. People waste more money on useless things than they pay in taxes.
Makes sense to me!
However, my concern is what others have said, long term care since I have no relatives to help. My aunt was well off and gave everything to her only son, but she would have been better off trusting strangers as the place he put her was disgusting. So, while I agree with you that taxes should not be main concern, for some it is difficult to know how to balance the LTC and taxes. Under the new tax reform, I am not sure how many will need to worry about moving money around to avoid taxes.
I also agree with you that local charity funding is important since many families have seen jobs leave the country which left their children without sufficient education options.
i much prefer to see our kids and grand kids enjoy anything left rather than our gov't . so my goal was to keep my good ole uncle sam out of my money as much as i can
Which is why our trains are crashing, our bridges falling, our deficit is rising, etc.......
On the other hand, it's a fact that "free money" to kids and grandkids can often actually hurt them. Sure, there is a fine line...and it depends on the mindset of your family members. I could give mine each a million and their outlook on life and lifestyles wouldn't change much.
Others, just like lottery winners, could have problems like divorce, drugs and booze addiction, not knowing when to stop (excess purchases and debt), etc.
I've always paid my taxes and never played the game....plenty of chances to, but it often is self-defeating. Example - we paid off all our houses, but I would pay less in taxes if I took out mortgages. Silly.
Taxes are the admission price to civil society. The fact that so many avoid them (many legally, many cheating) might have something to do with our 21 Trillion dollar debt.
So - we will leave our child 300K but his share of the public debt is likely to be 200K in 5 years.
Someday the piper will want to be paid and it won't be pretty.
Which is why our trains are crashing, our bridges falling, our deficit is rising, etc.......
On the other hand, it's a fact that "free money" to kids and grandkids can often actually hurt them. Sure, there is a fine line...and it depends on the mindset of your family members. I could give mine each a million and their outlook on life and lifestyles wouldn't change much.
Others, just like lottery winners, could have problems like divorce, drugs and booze addiction, not knowing when to stop (excess purchases and debt), etc.
I've always paid my taxes and never played the game....plenty of chances to, but it often is self-defeating. Example - we paid off all our houses, but I would pay less in taxes if I took out mortgages. Silly.
Taxes are the admission price to civil society. The fact that so many avoid them (many legally, many cheating) might have something to do with our 21 Trillion dollar debt.
So - we will leave our child 300K but his share of the public debt is likely to be 200K in 5 years.
Someday the piper will want to be paid and it won't be pretty.
our fair share of taxes are whatever the tools left in place to be utilized and our laws get that amount down to legally.
Only if paying as little in taxes is a goal. I know some people enjoy this as sport.
it is everyone's prerogative to pay no more than they are required to . like i said , if you don't want to utilize what was put in place to arrive at your lowest fair share , that is up to you , and we all thank you for your contribution so it can be squandered .
If you reach the age of mandatory withdrawals (70?) from your IRA and Roth, you you don't actually need that money because you are just living on saving accounts, what do you do with that cash?
Do you just shift to a regular savings accounts, or is there some other kind of sheltered account you can send it to? Or is this when you starting giving a lot of money away?
I'll send you my address.
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