Senior Opinions hires retirees from all kinds of professions, life experiences, and financial backgrounds. The one thing they have in common? They all seek alternative options for their retirement funds. Their life journeys have taught them valuable lessons about retirement we feel are imperative to share.
David Piper is a 73-year-old widower with three children and one grandchild. He retired at age 65 and wishes to pass on his IRA to his daughters for the betterment of their financial situations.
David’s IRA is currently totaled at $1,900,000. He made a lump-sum pension payment at age 67 to his IRA. Social Security and his own savings provide $8,000 per month to cover his monthly income needs of $6,500. The current RMD on his IRA is $79,831 at age 74. Assuming a 20% tax rate, the taxes on his distribution would be $15,966.
Since joining Senior Opinions at age 70, David has saved over $65,000 in taxes.
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Sandy, a widow with one daughter and three grandchildren, is 78 and currently receiving a survivor pension. She lives with her daughter, and desires to use what she has to give her family the best financial security possible.
As of now, Sandy is a beneficiary of a spousal IRA of $2,700,000. Her monthly survivor pension reimbursement is $7,800. Sandy does live with her daughter, but her monthly income needs are $5,000. The current RMD on her IRA is $138,461 at age 73.
Taxes on her distribution would be $27,692.
Sandy joined Senior Opinions at age 75. She has since saved over $80,000 in taxes.
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Jim, 70, and his wife Karen, 64, have been happily married for 40 years. The pair have three children and four wonderful grandchildren. Looking towards the future, Jim wishes to leave his IRA to Karen.
The value of Jim’s IRA totals $650,000. Social Security and Karen’s pension provide the couple with $12,000 per month, and their monthly income needs are $10,000. To offer his beloved wife and family more financial security, Jim wants to maximize his IRA benefit to Karen at his death.
The current RMD on his IRA is $24,528; taxes on this distribution would come to roughly $4,905.The growth of an IRA to Karen, given her age, and at 5%, is $1,167,000 without taking an RMD.
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