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Strategies & Market Trends : Retirement - Now what? -- Ignore unavailable to you. Want to Upgrade?

To: Drygulch Dan who wrote (182)	6/9/2007 4:28:41 AM
From: Dale Baker	Read Replies (1) \| Respond to of 288

Everything I have read says spend your taxable investments now, let your IRA grow tax free then withdraw it later when you have less other income and your tax bracket is lower. That's just one view, of course, but it's the general plan I have in mind when I get to that point. The power of compounding your IRA another ten years if you can is pretty dramatic with good returns.

To: Drygulch Dan who wrote (182)	6/9/2007 4:54:12 AM
From: EL KABONG!!!	Read Replies (1) \| Respond to of 288

Hi Dan, For most folks, it makes more sense to delay tapping into an IRA (or 401b or 403k) for as long as possible. This is because the monies inside the IRA continue to accrue on a tax-deferred basis until you reach the maximum age where you must start drawing down on the plan. As long as you have earned income, you can also continue to fund the IRA as well. So, presuming that you don't need the extra income right now, the best plan may be to just let it sit and grow, and continue to fund it if you can. Another lesser known benefit pertains to your heirs or specifically to the beneficiary of the IRA. If that person is IRA-eligible, then the beneficiary may have the option to roll those funds into his (or her) own IRA, thusly shielding the funds from taxes until s/he is of retirement age and desires the additional income. Otherwise, taxes (income) will be due immediately upon receipt of the IRA monies when your estate is settled. Depending upon the size of your estate, these monies may be taxed twice, once as ordinary income (because the source of the money was tax-deferred, both on deposits and any interest/capital appreciation) and then (whatever remains) again under estate tax laws or inheritance taxes. It's probably best to have a talk with your IRA provider to see what information they may have for you on this topic. And, it's probably also in your best interests to consult your financial advisor (if any) and your accountant (if any) for their input. You can never have too much information when making these type of decisions... EK!!!

To: Drygulch Dan who wrote (182)	6/11/2007 12:59:15 PM
From: deeno	Read Replies (1) \| Respond to of 288

IMHO Well it completely depends on your situation. 1. I assume you dont need the money, becasue then you wouldnt have asked the question. 2. I assume youve retired on good terms for income/lifestyle as you sound like it was your choice. 3. I assume your in a reasonabley high tax bracket because of past querys on estate planning. 4. I assume those rates are not going to change much other then by congress. Obviously thats a lot of assumptions that may or may not apply. Suffice it to say if you want a real opinion based on your situation your acutually going to have to either pay someone or visit 3 or 4 brokers that say they speciallize in this stuff and form a conscienses. so you want an unusual way to progress. Start taking the money out now. As much as you can without increasing your bracket or AMT. Take that money and move it over to a ROTH. THIS money grows TAX FREE, you never have to take the money out at any age and your heirs can decide with their accountants how to best structure their situations. IF you wait till 70 1/2 you are likely going to have higher distributions you must take and may raise your brackets. You also run the risk of higher brackets in the future from congress and a whooping heir tax liablility if its any decent size. Finally, if its not all that much money, you need to go back to work becasue you have way to much time on your hands ;^D.