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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Triffin who wrote (5863)	9/20/2010 7:28:07 PM
From: JimisJim	Read Replies (3) \| Respond to of 34328

And you don't have to liquidate a ROTH after the owner dies... they get special treatment for estate purposes. Or at least that's what I've been told. But you pt. #3 really hit home when I saw my father's PF devastated by the combination of minimum withdrawal requirement based on pre-crash balance, but having to sell stock and distribute post-crash. Now I'd recommended to him prior to that to keep NEXT year's distribution in cash or something like it in his traditional IRA so that he'd never have to sell stock unless he wanted to at a time of his choosing... even if he'd followed that last bit of advice, he'd be way better off now. Let's just say the master is now the student in our relationship and he listens to me -- or at least appears to -- more closely. Should have been a no-brainer to exclude tax year 2008 from min. dist. as they did for 2009, but no.... For now, the old man has converted as much as he can afford to into ROTH and watches his cash balances in his IRA more closely. As for me, I'd already grown a sizeable IRA, but have used the special rules now in effect to convert as much as possible/makes sense into an existing ROTH I already had. The only... only... potential downside to ROTHs would be if one's tax rates -- marginal tax rates, that is -- are significantly higher now than anticipated in retirement... or, political in that the rules might change -- if so, hopefully, there would be a "grandfathered" provision for ROTHs/ROTH contributions prior to some date. Jim