Page 1 of 2 1 2 LastLast
Results 1 to 25 of 35
  1. #1
    Join Date
    Jul 2005
    Location
    In Full Compliance
    Posts
    1,598

    Talking $600,000 Question

    For all the dopey shit that goes down, I've been impressed by the brain power on display here at TGR, so am seeking opinion from the financial maggots in the tribe. What I say is true. I'm not boasting - I need good advice.

    I am already living comfortably, happily, nomadically, and frugally. I survive as a landlord. I deliberately keep rents low. Make enough to get by, but ensure not to earn too much money to disqualify for free health care in VT. When I do work on the books I lose these important benefits. It's not worth it. So, I do all my own work, and I barter. A lot.

    I've just come into possession of $600,000 from a beneficial IRA. Based on my life span I am required to withdraw $1240 per month, per annum. What to do with the remainder?

    Also: I plan to apply for a resident visa in Panama. The basic requirement to qualify is a guaranteed monthly income of $1000. I need to purchase an annuity (or some other qualifying instrument) to provide for, and meet the financial means test. Could I fund the annuity from the mandated withdrawal from the IRA?

    This is my basic position before the windfall:

    47 yo
    3 rental properties in USA with $40,000 mortgage debt (monthly = $650)
    2 rental properties in Central America, no debt, no tax
    1 automobile in USA, paid for
    0 credit card debt
    0 children

    Was inspired to ask the mags after seeing this thread: [ame="https://www.tetongravity.com/forums/showthread.php?t=168249"]Intelligent Mags: What to do with $12K inheritance?[/ame]

    Laughing at my own dumb advice in that thread. Enlighten me, I'm a lummox.


    Tempus fugit ergo carpe diem

  2. #2
    BSS Guest
    $600K

    Man, that'll turn your day around.

  3. #3
    Join Date
    May 2002
    Posts
    33,434
    If this is going to be happening a lot, we might need a financial forum...

  4. #4
    Join Date
    Sep 2001
    Location
    The Cone of Uncertainty
    Posts
    49,347
    I know who I blame.

  5. #5
    Join Date
    Dec 2007
    Location
    Overpriced Orchards
    Posts
    1,792
    you seem really young to have mandated withdrawals. are you sure about this?

    edit: I don't know the specifics of your situation (Roth IRA vs regular IRA), or the specifics of the panamanian visa requirements, so I would advise to sit down with an advisor familiar with these rules. You have enough money that it might be worth it, and it might be difficult to sort it out by yourself (especially if you're coming to TGR for advice).

    Here are the IRS guidelines for IRA treatment: http://www.irs.gov/pub/irs-pdf/p590.pdf

    If your resident visa only requires you to prove income from a tax return, you should be fine; standard IRA withdrawals are considered taxable income. For all intents and purposes, an IRA account can serve as an annuity, although it has more flexible options and is not paid through a third party. Withdrawing the entire balance to purchase an annuity would be out of the question, I think, because of withdrawal limits and the associated tax penalties.
    Last edited by squatch; 12-30-2009 at 01:02 AM.
    Quote Originally Posted by Dantheman View Post
    ...I would have dove into that bush like Jon McMurray.

  6. #6
    Join Date
    Jul 2005
    Location
    In Full Compliance
    Posts
    1,598
    Quote Originally Posted by squatch View Post
    you seem really young to have mandated withdrawals. are you sure about this?
    Pretty sure. I think the annuity has to be a fixed in order to satisfy a means test. An IRA could be altered. But I'm no expert.

    EDIT: The visa issue is a secondary question. My primary question seeks advice for positioning the windfall.
    Last edited by boltonoutlaw; 12-30-2009 at 01:20 AM. Reason: Clarity
    Tempus fugit ergo carpe diem

  7. #7
    Join Date
    Jul 2005
    Location
    Columbia, SC
    Posts
    2,868
    plastics.

  8. #8
    Join Date
    Nov 2005
    Location
    Land of Brine Shrimp and Magic Underwear
    Posts
    6,318
    Quote Originally Posted by ICEHOCEY77 View Post
    plastics.
    Fuck that.

    It's all ball bearings these days...
    There's nothing better than sliding down snow... flying through the air.

  9. #9
    Join Date
    Feb 2009
    Location
    Retardbumville
    Posts
    819
    Ammo,canned goods.

  10. #10
    Join Date
    Mar 2005
    Location
    Dystopia
    Posts
    17,661
    Quote Originally Posted by boltonoutlaw View Post


    Make enough to get by, but ensure not to earn too much money to disqualify for free health care in VT. When I do work on the books I lose these important benefits. It's not worth it. So, I do all my own work, and I barter. A lot.


    This is my basic position before the windfall:

    47 yo
    3 rental properties in USA with $40,000 mortgage debt (monthly = $650)
    2 rental properties in Central America, no debt, no tax
    1 automobile in USA, paid for
    ]
    Thread hijack

    Folks like you will bankrupt national health care. FREE FREE FREE GIMME FREE!
    cash under the table for me.

    Do you get gubmint cheese too?

    fuck. how do you own 5 properties and qualify for free health care.

    we r fucked

    [/hijack]

  11. #11
    Join Date
    Jul 2005
    Location
    In Full Compliance
    Posts
    1,598
    Really, I'm expecting better advice from all you Snow-Magnons & Skianderthals. So far I have:
    Quote Originally Posted by ICEHOCEY77 View Post
    plastics.
    AND

    Quote Originally Posted by senior researcher View Post
    Ammo,canned goods.
    So, are plastic bullets the answer?

    Tempus fugit ergo carpe diem

  12. #12
    Join Date
    Jul 2005
    Location
    In Full Compliance
    Posts
    1,598
    Quote Originally Posted by Core Shot View Post
    Thread hijack

    Folks like you will bankrupt national health care. FREE FREE FREE GIMME FREE!
    cash under the table for me.

    Do you get gubmint cheese too?

    fuck. how do you own 5 properties and qualify for free health care.

    we r fucked

    [/hijack]
    I knew before long I would get this "patriotic" bullshit.

    Sir, I'm not the folks that you should have a problem with. Because:

    I provide affordable housing for three families.
    I have three property tax payments, & pay state & federal taxes as well.
    I have no children, so I have consumed (in 5 years) less in government services than 1 child in 1 school year.
    My tax contribution more than pays for my health demand, so I am not draining the public coffers.

    I thought it would be particularly interesting to raise this question here, partly so I could watch some participants in our "fringe lifestyle" bash away at someone who managed to stay in the lifestyle by living outside of the box.

    No sir, 'tis you who r fucked. Bought into the dream to end up under the thumb. Pity.
    Tempus fugit ergo carpe diem

  13. #13
    Join Date
    Nov 2006
    Location
    on the edge
    Posts
    6,546



    If it's green, smoke it...if it's pink, poke it

    BUY THESE------> 193 iM 103 - $50 https://www.tetongravity.com/forums/s...d.php?t=179797

  14. #14
    Join Date
    Mar 2006
    Posts
    19,217
    Your getting smartass remarks because the question you ask has no easy answer. $600k at your age will safely yield about $25k a year for life.

    Where the economy and markets are now products like annuities and even life insurance can make sense for you. One of the best investments of the last ten years was the guaranteed annuity with a capital appreciation kicker.
    A few years ago these were competitively cheap but the fees and loading have risen. (pension and annuity guarantees are the main reason the govt bailed out AIG which sucks for investors willing to take risk.)

    Contact Fidelity Investments or T-Rowe Price for assistance. They both specialize in your situation. Caveat Emptor.

  15. #15
    Join Date
    Feb 2008
    Location
    Under the bridge
    Posts
    2,605
    Quote Originally Posted by booner View Post
    Makes me want to take a dump.

  16. #16
    Quote Originally Posted by Core Shot View Post

    People will bankrupt national health care.

    [/hijack]
    FIFY.

    Human nature is the Achilles heel of socialism. bol isn't any different than anyone else with common sense. Why should he do something that is not in his best interest just to help the state?!!!! That would be stupid. I would do exactly the same thing if I were in his situation.


    bolton, I've got no advice to offer. Sounds like you have a good thing going, good luck with it.
    it's all young and fun and skiing and then one day you login and it's relationship advice, gomer glacier tours and geezers.

    -Hugh Conway

  17. #17
    Join Date
    Apr 2006
    Location
    Movin' On
    Posts
    3,359
    What is the IRA currently invested in? Look into low cost indexing diversified with bonds, etc.

  18. #18
    Join Date
    Nov 2005
    Location
    Making the Bowl Great Again
    Posts
    13,621
    You should buy a house at Tamarack.

  19. #19
    Join Date
    Oct 2006
    Location
    MA
    Posts
    6,662
    Quote Originally Posted by squatch View Post
    you seem really young to have mandated withdrawals. are you sure about this?
    might be mandated based upon the age of the deceased. im assuming it wasnt your 70.5 year old wife that passed, so youd need to withdraw based on that age (the $1240). wouldnt this pass the test for panama? getting that 1240? if you need more, maybe a variable annuity? with a chunk of that 600k? revenues grow tax deferred, though im not sure if you take out a 250k variable annuity if youd still get free health care.
    Decisions Decisions

  20. #20
    Join Date
    May 2009
    Posts
    1,201
    Quote Originally Posted by gatorboy View Post
    Makes me want to take a dump.
    #1 reason it sucks for road trips.

  21. #21
    Join Date
    Sep 2001
    Location
    The Cone of Uncertainty
    Posts
    49,347
    Quote Originally Posted by gatorboy View Post
    Makes me want to take a dump.
    Buy better blow. Mannitol is a laxative.

  22. #22
    Join Date
    Jul 2002
    Location
    Suckramento
    Posts
    20,833
    Althugh I kinda like the H&B suggestion, here's an idea:

    Ask around about a fee based financial advisor...one who doesn't live off of commissions for selling you stuff. If all you have to do is show 1000/mo income, he/she ought to be able to set up an annuity, discuss the issues with them (surreneder charges etc.) and give a plan to invest the remainder.
    Quando paramucho mi amore de felice carathon.
    Mundo paparazzi mi amore cicce verdi parasol.
    Questo abrigado tantamucho que canite carousel.


  23. #23
    Join Date
    Mar 2005
    Location
    Denver, CO
    Posts
    6,867
    Check your PM's ... sent you something helpful.

  24. #24
    Join Date
    Nov 2003
    Location
    Stuck in perpetual Meh
    Posts
    35,248
    Quote Originally Posted by iceman View Post
    Mannitol
    I'll take "Names they should have given Viagra" for $1000 please, Alex.

  25. #25
    Join Date
    Jan 2007
    Posts
    46
    The best thing to do is educate yourself about investing with Lazy Portfolios. I suggest starting with Paul Farrell's articles on Marketwatch.com
    http://www.marketwatch.com/story/qua...hipping-sp-500
    http://www.marketwatch.com/story/laz...nds-2009-09-07

    Then, I would do the following;
    1. Transfer the IRA account to Vanguard
    2. Adopt the Arronson family portfolio. As this is an IRA, using mutual funds is fine.
    http://www.marketwatch.com/LazyPortf...family-taxable

    3. Arrange for Vanguard to send the monthly checks for minimun distributions

    4. Don't sweat the details... the market is going to go up and go down... dramatically at times. Know that this portfolio is doing better than most other strategies and no one is getting rich off your assets.

    5. Enjoy life!

    Hope this helps

    Mike

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •