Financial Independence Passing Down Retirement Wealth to Kids |
| Passing Down Retirement Wealth to Kids Posted: 29 Nov 2021 02:24 PM PST Need some help pointing my parents in the right direction with their retirement. About to retire at 62 with no debts and in a fantastic financial position. They've been maxing both of their retirement accounts for quite some time. 2 mil in Roth IRA 1 mil in Roth 401k 1.2 mil in traditional IRA (all pre-tax contributions) Now, their biggest challenge in retirement is going to be breaking out of the frugal penny pinching mindset. There's an unhealthy obsession with it at this point, and the thought of buying name brand ketchup at normal price causes grief. Coupons, discount aisle, and limiting spending have become a pretty core part of who they are. There's probably a therapy component of this needing to be addressed, but I don't think they'll ever take a significant step up in their spending. Between social security and their taxable brokerage, they likely don't need access to much of this retirement account money. One of their main goals is to pass down as much of these funds to their 3 kids. That said, what's the advisable path forward? Is converting 81k (married 10% + 12% income bracket limits) to Roth IRA each year in retirement a good idea? Does this bring pro-rata rule into play? Are there benefits to that as opposed to withdrawing it to cash? Live and plan to stay in TX. They have financially already provided each of us an abundance of help with college and early starts to funding Roth IRAs. We all encourage them to spend their money on themselves, or even doing activities making memories with (us) their kids while still in prime retirement years. I hope this doesn't come off as selfish, trying to approach things with a level head. I don't know their yearly spending, but I would estimate around 80k/yr is a good high upper limit. I believe they estimated 50k/yr beginning at 70 from social security. [link] [comments] |
| I need some help with what to do with my money and with my 401k Posted: 29 Nov 2021 03:00 PM PST I am 20 and work full time, this year I have made roughly 63k and have but about 23k into my 401k so far this year and that's before company matched. My 401k contributions follow Employee vested: 3K Company matched: 2.2k Involuntary contributions: 20.6k Rate of return: 9.27% with a moderate model What other waves to invest can I use and is there anything I can do to help improve my 401k? [link] [comments] |
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