Sign up, and you'll be able to vote in polls. Sign up
Apr 8, 2021
3:23:29pm
hansel All-American
I disagree with most of their logic. It may make sense for the person making the
median income of $54k/year, but anyone who has income-generating investments in retirement outside of a traditional IRA - or even just a really large traditional IRA - is gonna get destroyed in taxes later on.

And I hate that because then clients watch their wealth dissipate right when they’re actually relying on it since every time they take anything out of their IRA they’re paying 1/3 of it to the IRS.

Wanna take $20k out of your IRA to take your family on a vacation? Actually you’ll need to take $28k out. And it’s harder to make that up since your investments are more likely to be pretty safe and stock-lite at that point.

And once they’re 72 - with no kids at home, no mortgage interest, etc. - they’re just paying through the nose every year on RMDs. Once you’ve got SS, dividends/interest on taxable investments, and RMDs on top of that, get ready for the 30%+ tax bracket every year. And if they pass it down to their kids, there’s effectively an estate tax on it with no exemption payable within 10 years of your death.

But yeah, if you make $54k/year and don’t save anything outside of your IRA, it’s probably ends up a wash.
This message has been modified
Originally posted on Apr 8, 2021 at 3:23:29pm
Message modified by hansel on Apr 8, 2021 at 3:24:52pm
Message modified by hansel on Apr 8, 2021 at 3:25:26pm
Message modified by hansel on Apr 8, 2021 at 3:27:06pm
hansel
Previous username
LouisvilleCoug
Bio page
hansel
Joined
Oct 25, 2004
Last login
Apr 21, 2021
Total posts
22,559 (1,715 FO)
Messages
Author
Time

Posting on CougarBoard

In order to post, you will need to either sign up or log in.