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

To: wilywilly who wrote (22005)	2/28/2015 5:12:42 PM
From: E_K_S	1 Recommendation Recommended By hivemind Respond to of 34328

Here is their specific answer: 18. Can a Roth conversion count as part of my annual required minimum distribution? With a traditional IRA, you have to begin taking annual required minimum distributions (RMDs) at age 70½. A Roth IRA conversion does not satisfy your RMD requirement. If you're planning to do a conversion, your RMD must be taken before (or at the time of) the conversion. ------------------------------------------------------------------------------------ I guess as a fall back plan, just do enough IRA to partial ROTH transfers so that if/when you must do an RMD from the IRA, you are in the lowest tax bracket and your IRA bucket is getting smaller while your ROTH bucket is getting larger. For me, the biggest hit are with State taxes so I moved and changed my residence to a no State income tax State. Hopefully, by 701/2 I will no longer have anything in the IRA account(s) and should have one large ROTH bucket. Since I have no "earned" income, I can not make any current IRA deposits but both the capital assets are increasing in value as are the dividend income streams. Therefore, getting those assets into the ROTH bucket as early as possible is my main goal. FWIW, I started my IRA at age 21 and only made contributions until I quit my job at Lockheed after 8 years. I made the maximum contributions and Lockheed matched those. I never made an IRA contribution after that, I just invested in stocks that paid dividends. Also, with my time at Lockheed and various jobs from 16 to 21, I earned the minimum number of Social Security quarters to qualify for guaranteed retirement income. I also earned a small pension form Lockheed (minimum 7 years working). From 1990 to date, I have been an investor, buying and selling assets (real estate, stocks etc) and never had earned income (only capital gain income) and could not contribute any monies into my ROTH and/or IRA. I still have been able to double my asset base both in the IRA/ROTH and taxable account(s) about every 7 years as well as generate enough income to live on (including paying for monthly medical insurance). The key is/was the use of compounding and spending w/i your means and not wasting capital on frivolous non performing assets (like boats, cars or other toys). I only borrowed money to buy and/or fix up real estate and paid those loans off when I sold the assets and/or generated enough rental income to pay off the outstanding debt. Every car I owned, I paid in full w/ cash and every month I pay off my previous month's credit card balance. I estimate that by the time my Social Security and small pension vest, the IRA/ROTH account(s) s/d be worth in excess of $1mln and generate $72K/annual income or about $6K/month. I expect those accounts to double in value every 7.2 years. I really do not need to tap the retirement accounts as I have plenty of assets and income from my taxable investments that include real estate, stocks and a small bond ladder. ---------------------------------------------- I guess the key thing now is to stay healthy and enjoy family and friends. I still know quite a few friends and even family members that must work well into their 60's as they have not saved anything and will need their monthly Social Security check to support their retirement. EKS