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Old 11-03-2009, 10:02 PM
JS1
 
1,898 posts, read 6,127,025 times
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Quote:
Originally Posted by hawkster View Post
My parents struggled all their lives. My dad died with $70 in his pocket, thats it. I'm trying to be financially responsible with my money, which my wife and myself are teaching our daugter as well. That said, my intention is to leave her the money because quite honestly, while money does not buy happiness, it certainly makes life a heck of a lot easier. In addition, If my daughter takes the money and allows it to grow and takes out little, and passes it on to her kids, her kids kids do the same....well you get the idea. It's no secret that across several generations the power of compunding interest is just that...powerful.


Now that said, looks like I'll have to look up ed slotts and get his book to get into. Sounds like I have a lot more to think about.

I'll look further into this and I honestly never thought of rolling it over to a Roth but it sounds good.

So....if I had a $1,000,000 at retirement how much would I loose from it if I rolled it over to an Roth IRA? Good point about rolling over to a Roth, never thought of that
Giving your retirement savings to your daughter has nothing to do with whether your parents died with $70 or $70,000. If you're poor and you only have $70 when you die, so be it. That's life.

Most of the time when people are handed a gigatic amount of money, they're going to spend it. Maybe not all of it, but they are going to spend a lot more than what you were thinking.

If you are trying to start a dynasty, you need to set up a trust. If you give money to your daughter, she could spend it on lottery tickets and cocaine and there's nothing you can do about it.
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Old 11-04-2009, 02:53 AM
 
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there is whats called a roth legacy trust ... that will dictate the rules for recieving the money... depending on your daughters age the money is spread out over her lifetime but coupled with growth inside the roth that exceeds the withdrawl rate that money can span generations ...

lets face it rich or poor its nice to have some money.... being good parents is most important.... if you can be good parents and leave your kids a little something then that just icing on the cake... many do have the money but think they are better served by supporting a cause rather then their kids... thats cool too but your kids may not think so.

if i was doing it id leave my kids a roth and take some of the roth money and buy a spl life insurance policy and really try to pass on some serious wealth . anything worth doing is worth doing well right? id structure it with a roth legacy trust so the irs withdrawls came out, no more then that , and that money could hopefully span generations. they would get just enough based on the irs tables to be a treat but not enough they could go lottary crazy or not have to worry about their own financial lives.

whatever you do make sure you do it right.. there a default plan called the gov't plan just waiting to take your money if you dont have your own better plan in place... if you got some serious money i would recommend you dont seek info from us on the internet but get someone highly specialized in the preservation and withdrawing end of retirement.. almost all the guys i know are good at helping you accumulate assets , buy stocks and products and asset allocations.... they arent the guys id go to for the 2nd half of the game..

Last edited by mathjak107; 11-04-2009 at 03:57 AM..
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Old 11-04-2009, 06:06 AM
 
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I have spent a lot of years supporting and helping out the kids. Now I want to spend my money and hope to live long enough that only a modest amount is left. I will spend the after tax money first.
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Old 11-04-2009, 06:13 AM
 
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ideally i want to spend my last few bucks on the casket ha ha ha
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Old 11-04-2009, 06:16 AM
 
71,630 posts, read 71,777,271 times
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Quote:
Originally Posted by jrkliny View Post
I have spent a lot of years supporting and helping out the kids. Now I want to spend my money and hope to live long enough that only a modest amount is left. I will spend the after tax money first.
im doing after tax money first, that has no capital gains attached to it. we do own funds in our taxable account with substantial appreciation.. those are going last as if i can hold off touching them the kids inherit those totally tax free as they get a step up in basis. thats really cheating the tax man.

next the 401k and traditional ira money goes, then finally roths... then finally the after tax money in the funds we are trying to pass to the kids never ever paying taxes on any gains like you would in a roth conversion up front

Last edited by mathjak107; 11-04-2009 at 06:28 AM..
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Old 11-04-2009, 11:37 AM
 
93 posts, read 314,947 times
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Quote:
Originally Posted by JS1 View Post
she could spend it on lottery tickets and cocaine and there's nothing you can do about it.

Are you the kettle or the pot

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Old 11-04-2009, 06:36 PM
JS1
 
1,898 posts, read 6,127,025 times
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Quote:
Originally Posted by hawkster View Post
Are you the kettle or the pot
That's MY money I spend on entertainment, not my dad's.

Besides, coke and gambling can be several orders of magnitude more expensive than pot.
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Old 11-05-2009, 03:09 AM
 
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im going to spend 95% of my money on women , beer and sporting events.

the rest ill just spend frivoulusly
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Old 11-08-2009, 02:48 PM
 
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we have to watch out you know......our children could get spoiled
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Old 11-08-2009, 04:52 PM
 
29,782 posts, read 34,876,173 times
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Quote:
Originally Posted by JS1 View Post
Giving money to your children makes you a good parent? Does this mean that working-class parents are crummy parents?
Just not able to avail wealth transfer as easily as those with wealth. Having affluent parents affords you lots of advantages in life if your parents are of the mind set to value you and your future. That's why we studied, worked and saved to offer our children a heads up in life. Not that other didn't but money brings a lot to the table. I think by good parent he meant utilizing your resources as much for your children as yourself.
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