Financial gurus here?

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I agree with most of the recommendations of rolling it over into another sort of savings plan.
I've NEVER spoke or heard of a retiree that has said that they've saved too much for retirement; it's always the opposite. Most wished they would have saved more.
 
Calipag said:
I've NEVER spoke or heard of a retiree that has said that they've saved too much for retirement; it's always the opposite. Most wished they would have saved more.
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I know of one. I don't know what or how much, he has in investments or savings, but I have a good idea of his income.
1) military pension
2) county pension
3) social security
4) works part time from home on the computer as a consultant
5) wife teacher pension
6) wife social security
7) two rental properties
Plus no medical expenses
I could live on that. :)
 
greymouser7 said:
One time gift to the spouse? Is that a thing?
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It is if you're a guard at Shawshank Prison in 1951. :D

Generally, gifts to your spouse aren't taxable, but when this money leaves it's sheltered status, the taxman will want his pound of flesh. I think you can give a gift penalty free from an IRA for tuition and home purchases, but you'll still pay income tax. There are also lots of restrictions, depending on your age, and who is the recipient.
 
Charrlie_S said:
I know of one. I don't know what or how much, he has in investments or savings, but I have a good idea of his income.
1) military pension
2) county pension
3) social security
4) works part time from home on the computer as a consultant
5) wife teacher pension
6) wife social security
7) two rental properties
Plus no medical expenses
I could live on that. :)
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..
Sounds like a good planner to me.
 
Bodyperson said:
Depends on your age, filing status and income . A financial Guru will take that into consideration. You cant just dump 22000 into an IRA.
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If it's coming from a retirement account you sure can dump 22K into an IRA. I had a client dump 1.75 million from a company retirement to a self directed IRA account. Simple as can be.
 
As long as they remain retirement vehicles there are no tax consequences, hah, I said vehicles.
 
pishta said:
have an offer to cash out an old pension plan from a long past job, they wanna give me $22k lump sum or give me $120 a month after I retire. I honestly don't know how long Ill live past 68 but 22k pre-tax is about 15 years worth of those payments. Of course They'll take a chunk out of that lump sum for taxes but It could pay off interest bearing loans....any advice? I'm kinda leaning on paying off some debt with it...I am a home owner so I'm not going to be paying rent when I retire...knock on wood!
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Take the money and run, you could get run over by a bus tomorrow an never see a dime of it.
 
pishta said:
have an offer to cash out an old pension plan from a long past job, they wanna give me $22k lump sum or give me $120 a month after I retire. I honestly don't know how long Ill live past 68 but 22k pre-tax is about 15 years worth of those payments. Of course They'll take a chunk out of that lump sum for taxes but It could pay off interest bearing loans....any advice? I'm kinda leaning on paying off some debt with it...I am a home owner so I'm not going to be paying rent when I retire...knock on wood!
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Well, let’s do the math.

If they pay you the monthly payment it comes to $1440 per year that will be taxed.

If you take the lump sum at your current age of 51 and roll it into an IRA (no taxes) earning just 5% per year, your $22k will become $44k by the time you reach age 65. (Most IRAs do better than that)

If you only take the 5% you earn on it every year after age 65, you will get $2200 per year that will be taxed and never even touch the principal $44k in the account.

Don’t let them keep your money to make more off of it in interest than they are going to pay you every month.
 
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