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

To: E_K_S who wrote (27579)	7/6/2017 1:23:58 AM
From: Steve Felix	Read Replies (2) \| Respond to of 34328

OT - estate planning. About two months ago, just off the cuff, I asked the wife what she would do when I pass. First thing she said was that she would sell the house and rent an apartment in town. That is all she got out as I was already saying no no no. First thought was all the sweat I put into building this place. Excavating, septic, well, basement floor, plumbing, and wiring up the panel box, I paid someone else for. The rest, from the footers, framing, wiring, drywall, to the last shingle, I did. Once I got past the emotional part, it seemed an even worse idea. She won't need the money, and she is giving up the one thing, at least here in Pa., that a nursing home couldn't take. In Pa. your spouse does not need to be the beneficiary on an IRA. I immediately changed the beneficiaries to my daughters. Once I pass, I can't force anyone to do anything, but we have discussed the daughters renting out the house, and giving those funds to their mother. It will still be her house, but the girls can handle the renting, hiring someone to keep up with the grass, and snow. When she passes, it is theirs. Son in law thinks it would be great to have a rental, and knows from experience how retirees from D.C. and Montgomery County Maryland drive up the prices of anything around Gettysburg with acreage. If they take RMDs immediately, they would currently be about $3,509, and $3239. I am thinking that would pay the taxes and expenses most years. Roof is only a few years old saving what would be one large expense. With current income over $18,000, there would be $11,000 to reinvest, or just let the cash build. Have discussed with the son in law that they all already have Roths on the DGI path. Investing this for income would allow them to continue that, maybe to their own RMDs. I know my youngest has some nice dividend growth stocks, but her yield is only 3.1%. Darn TIS, it was 3.2%. :) Easy to have income cover in an account, taking RMDs at a younger age. Portfolio yield needed to cover at 40 2.294%, 45 2.577%, 50 2.924%, 55 3.378%.