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Old 11-08-2009, 08:20 PM
JS1
 
1,898 posts, read 6,126,377 times
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Quote:
Originally Posted by TuborgP View Post
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.
Handing your child a bag of money isn't going to teach them anything. How will your grandchildren fend for themselves when their parents know nothing about working hard and balancing a household budget?
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Old 11-09-2009, 01:47 AM
 
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Quote:
Originally Posted by JS1 View Post
Handing your child a bag of money isn't going to teach them anything. How will your grandchildren fend for themselves when their parents know nothing about working hard and balancing a household budget?
thats a silly assumption that just because someone inherits something this is the end result.... you may as well say if you dont inherit something you will grow up financially responsible and be the hardest working people...

hogwash!

my wifes family was some of the biggest builders of new york city hi-rise buildings... she inheirited alot of real estate... shes more responsible then i am and worked her entire life in pre-school . i on the other hand grew up pretty much in a nyc housing projeect because my dad could barely make ends meet.

my wifes son inherited part of the same real estate business and is responsible and works just like everyone else... i wish i had a head start like that as a kid, i would have built an empire by now with the money.

Last edited by mathjak107; 11-09-2009 at 03:16 AM..
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Old 11-10-2009, 04:47 PM
 
93 posts, read 314,922 times
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Quote:
Originally Posted by mathjak107 View Post

i wish i had a head start like that as a kid, i would have built an empire by now with the money.
You hit the nail on the head...head start
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Old 11-12-2009, 10:26 PM
 
Location: Seattle, Washington
8,435 posts, read 8,672,221 times
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Quote:
Originally Posted by hawkster View Post
Not sure why this is boggling my mind.

Assume that when I retire I'll be living off pensions, SS, savings, etc. That said, I'll have about $1.1 million in my company's 401 K plan.

Question - My intention is to basically turn that over to my daughter so she can roll it over into an IRA, Roth, her company 401K (is that possible even). The main question - would taxes be paid on it when its turned over to her or can she roll it over with out paying taxes. It would stink to think that I'd turn that over and she'd be hit with crazy taxes.
I think if you liquidate it then yes you have to pay taxes.... I also think you can leave it to her in your will and then she will have to pay taxes since it is pre-tax money. I hear that in 2010 there will be a window to transfer to a Roth regardless of income (may want to confirm that) but still taxes have to be paid. What you could do is transfer the funds to an fixed annuity or single premium whole life insurance, so at least you know it won't shrink in value and is then given to your daughter without her being taxed... but you will still have to pay taxes on it.

Pay tax now or later I guess is the question!
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Old 11-13-2009, 02:40 AM
 
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AAAAHHHHHH , forget about the fixed annuity but that single premium life insurance is a financial gift from the tax gods... the annuity is still taxable money and its still realitivly a puny payout compared to spl for the same money put in.

its pay a little now , pay alot never!

the biggest bonus we get is the ability to take relativly little money from our ira's pay relatively little tax and leverage it many times over thru life insurance into a nice big TAX FREE pile of money ..


tax free money is a beautiful thing. odds are your heirs will collect many times more then what you put in. and your poor uncle sam gets not 1 penny for his share....


this is one investment that is guaranteed , because you will die...... thats a given... you can pass the taxable money in your ira to your heirs or you can pass a bigger pile of tax free money to your heirs. i know which im picking...


this shows you how you need to stop listening to all the wrong information that circulates both the media, the forums etc...

their is an amazing wealth of ideas and products out there that when used outside the box of what they were intended for turn into quite great products..

the ill-informed hear the words annuity, or life insurance with cash values or even waiting to take social security if you can as long as you can and they turn off never opening their minds any further..

these same people financially are generally the same ones who have uncle sam as a partner for life in everything they get and never benefit from all the cool stuff out there because someone said annuties, thats bad or life insurance, dont need it once the kids are out and the house is paid for.

theres lots of really smart people out there who have books and seminars that are worth there weight in gold if you expand your horizons and stop believing your own bull-s*it about what you believe to be true.

we arent talking the get rich quick bunch or the latest tax scam bunch. we are talking the likes of ed slott, harry brown, bill bernstein, ray lucia etc....

these are some of the smartest financial planning people on the planet and they all think outside the traditional box.. no they wont to tell you what to buy as far as stocks or the next market predictions, that we will leave to the folks in the forums since they always know whats coming next. ....



no magic here either, the life insurance exclusion is a popular way of passing wealth for congress too as surveys show over 90% of congressman use it themselves to plan. think its a safe bet its sticking around?

Last edited by mathjak107; 11-13-2009 at 03:18 AM..
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Old 11-13-2009, 10:48 PM
 
93 posts, read 314,922 times
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Still have a lot of reading and research to do regarding thoughts on this thread.....

That said, non-taxable vs taxable made huge sense to me so I have made an appointment for next week to discuss with my banker about switching my IRA's to roth IRA's
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Old 11-13-2009, 10:52 PM
 
93 posts, read 314,922 times
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I know what I was going to ask........

Assume my daughter receives the 1,000,000 when I kick the bucket. What will my daughter net after taxes?

Hence the thought of an insurance policy to cover that loss makes sense
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Old 11-14-2009, 02:14 AM
 
71,611 posts, read 71,751,865 times
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its impossible to say... it becomes part of their income and their tax bracket..

if your overall estate is over 3.5 million right now with your house and all assets , there could be federal estate

taxes. depending on your state there could be a state estate tax , death taxes which are in addition in some states to a state estate tax. , regular estate income taxes.

on your daughters side she will most likely be hit with federal taxes , state taxes, local taxes and the ALTERNATIVE

MINIMUM TAX on her total income especially if she takes the lump sum out in 1

shot. .. it doesnt end there either because she will pay so much in state

and local taxes that next years tax deductions for the state and local taxes will trip the amt again but this time not based on income but based on the proportion of taxes to income.



HERES THE GOOD NEWS, THERE IS A RECENT TAX COURT CASE WHERE AN UNLUCKY FELLOW INHERITED A HUGE IRA AND ACTUALLY OWED MORE THEN HE GOT, SO THE RULING BY TAX COURT IS THANKS TO THIS CASE YOU
CAN NO LONGER OWE MORE THAN YOU GET.. nice guys that irs ...... see they really do like out for us.. lol . the pont is it could be all gone under the deafault government plan so you better have your family on your own plan which is to pass this money tax smart..

Last edited by mathjak107; 11-14-2009 at 02:44 AM..
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Old 11-14-2009, 02:33 AM
 
71,611 posts, read 71,751,865 times
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Quote:
Originally Posted by hawkster View Post
Still have a lot of reading and research to do regarding thoughts on this thread.....

That said, non-taxable vs taxable made huge sense to me so I have made an appointment for next week to discuss with my banker about switching my IRA's to roth IRA's
do it next year not this year... next year the irs has a special deal, you can covert in 2010 and pay no taxes on it in 2010 then pay half the taxes in 2011 and 1/2 in 2012...
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Old 11-14-2009, 08:20 AM
 
1,340 posts, read 2,492,603 times
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Keeping a million in US dollars is a very iffy .
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