Sorry, I didn't mean to cause you any sleep loss, but welcome to my world. Hardly a week goes by that I don't seriously consider purchasing an immediate income annuity, especially now that I am in my 70s and LT interest rates are higher—payouts are up considerably. But up to now, I haven't been able to get up enough courage to pull the trigger. I've read Jonathan's articles about his retirement plans and how annuities fit in them and have definitely found some help and encouragement there. I even promote them in certain situations on my blog. But still no annuity.
I enjoyed this article, and I have an idea for another. You are fortunate to have both Social Security and what sounds like a considerable pension. What would you do differently if you only had Social Security and your IRA for retirement income, which is the case for most retirees? Would your decisions align with what Jonathan espouses, or would you stick with your current approach?
Thanks, Church. Several HD readers made similar comments. Since I first learned about them, I have been a "QCD evangelist" at my church. But I sure don't want to be the "oh no, here comes the QCD guy again" guy LOL. (It's like the newly minted life insurance salesman, a guy you almost never talk to, who invites you to lunch ostensibly to help you "secure your financial future.")
Thanks, Nick. I'm sure many advisors and CPAs know about them (and I hope they regularly discuss them with their clients). But it points to the value of at least some level of self-education if only to have intelligent conversations with those we consult with.
I think that's the question every taxpayer who makes QCDs asks when they work on their taxes. I guess nothing is "super simple" when it comes to the IRS.
If you were making sporadic charitable contributions, or starting for the first time, then I agree that it might make more sense to wait until age 73. I am effectively already taking RMDs for income as my IRA withdrawal strategy. And I have already made charitable contributions. Therefore, starting QCDs at age 70 1/2 makes the most sense for me.
Since QCDs are tax-free they should therefore lessen the effect of RMDs on higher IRMAA brackets for Medicare recipients. But that's something to double-check with the IRS.
Comments
Sorry, I didn't mean to cause you any sleep loss, but welcome to my world. Hardly a week goes by that I don't seriously consider purchasing an immediate income annuity, especially now that I am in my 70s and LT interest rates are higher—payouts are up considerably. But up to now, I haven't been able to get up enough courage to pull the trigger. I've read Jonathan's articles about his retirement plans and how annuities fit in them and have definitely found some help and encouragement there. I even promote them in certain situations on my blog. But still no annuity.
Post: He Asked, I Answered
Link to comment from March 10, 2024
I enjoyed this article, and I have an idea for another. You are fortunate to have both Social Security and what sounds like a considerable pension. What would you do differently if you only had Social Security and your IRA for retirement income, which is the case for most retirees? Would your decisions align with what Jonathan espouses, or would you stick with your current approach?
Post: He Asked, I Answered
Link to comment from March 9, 2024
Thanks, Church. Several HD readers made similar comments. Since I first learned about them, I have been a "QCD evangelist" at my church. But I sure don't want to be the "oh no, here comes the QCD guy again" guy LOL. (It's like the newly minted life insurance salesman, a guy you almost never talk to, who invites you to lunch ostensibly to help you "secure your financial future.")
Post: QCDs and Me
Link to comment from March 8, 2024
Thanks, Nick. I'm sure many advisors and CPAs know about them (and I hope they regularly discuss them with their clients). But it points to the value of at least some level of self-education if only to have intelligent conversations with those we consult with.
Post: QCDs and Me
Link to comment from March 8, 2024
You could start your own blog, "The Charitable Gambler."
Post: QCDs and Me
Link to comment from March 6, 2024
I think that's the question every taxpayer who makes QCDs asks when they work on their taxes. I guess nothing is "super simple" when it comes to the IRS.
Post: QCDs and Me
Link to comment from March 6, 2024
Good plan, Doc. And no, you can't use a DAF to fund the QCDs (only IRAs), but they have their advantages in addition to those of QCDs.
Post: QCDs and Me
Link to comment from March 6, 2024
If you were making sporadic charitable contributions, or starting for the first time, then I agree that it might make more sense to wait until age 73. I am effectively already taking RMDs for income as my IRA withdrawal strategy. And I have already made charitable contributions. Therefore, starting QCDs at age 70 1/2 makes the most sense for me.
Post: QCDs and Me
Link to comment from March 6, 2024
I've heard of that strategy but have not used it. It's perhaps something to look into. Thanks!
Post: QCDs and Me
Link to comment from March 5, 2024
Since QCDs are tax-free they should therefore lessen the effect of RMDs on higher IRMAA brackets for Medicare recipients. But that's something to double-check with the IRS.
Post: QCDs and Me
Link to comment from March 5, 2024