Ah, the joys of QCDs! They turn traditional deductible IRAs into quadruple tax-advantaged vehicles: the money goes in with a tax deduction, it compounds tax deferred, then comes out tax free, and counts towards one's RMD. It's almost too good to be true. Perhaps it's karma for the charitably inclined! I prefer to give to smaller, local charities. They are usually mostly or all volunteer, and my donation is meaningful to them. I often have the impact of my donation doubled by having the charity use it as matching funds for fundraisers.
Great article, Jonathan! Living on $55,000 would be quite lavish for me. It helps that my last mortgage payment was in 1975 and I have yet to eat out, get food delivered or travel this century (all my preference).
If you already have enough and are charitably inclined, why pay any additional taxes when you can utilize qualified charitable distributions (QCD)? One can start as early as 70.5, give up to $100,000 per year, have it count towards some or all of one's RMD (when required to take an RMD) and--best of all--there are no tax consequences! It doesn't even show up as income. This is such a great gift from the IRS, that I worry it will go away one day. And, it can be a wonderful way to give meaningful amounts to charities that align with one's values. There are so many smaller (and often all volunteer) worthy nonprofits where a QCD could make a world of difference. I have struggled making the transition from accumulating savings to using it, but I have found giving via QCDs to be a great option and very rewarding.
I like the thanks-giving part. There is so much joy that comes from giving. And there are so many worthy causes in need of our support that align with our values.
To accurately assess my investment portfolio, I created my own fund way back in 1989. I track it weekly. I initially took my balance and divided it by $10 to give me the number of shares. When I add or withdraw money, I divide that amount by the current balance to calculate the number of shares to add or subtract. Each week I divide my total portfolio balance by the current number of shares and I get my net asset value (NAV). It's worked like a charm for for many years, I know exactly what my actual returns are. Of course, I actually like doing this!
I'm following the Warren Buffet plan. He's 93 and still working. I'm only 71, but also still working and have no plans to retire. Maybe it helps that I don't like to travel and generally enjoy my work. Also, I waited until 70 to start collecting Social Security, so now it's like getting a double salary. It's my form of FIRE: Financially Independent, Retire Eventually!
I fully agree that this is a great book. I am also reading it twice! Another terrific book that I've now read several times is William Green's "Richer, Wiser, Happier."
Not sure if layaways are still done at retailers, but back in the days of K-Mart it was a way for cash-strapped parents (or a single parent) to set aside Christmas gifts for their children and try to pay them off in time for Christmas. What a joy it was to pay off one of the layaway tabs and have the layaway department call the customer to tell them that a "Secret Santa" had just paid the balance due.
Comments
Ah, the joys of QCDs! They turn traditional deductible IRAs into quadruple tax-advantaged vehicles: the money goes in with a tax deduction, it compounds tax deferred, then comes out tax free, and counts towards one's RMD. It's almost too good to be true. Perhaps it's karma for the charitably inclined! I prefer to give to smaller, local charities. They are usually mostly or all volunteer, and my donation is meaningful to them. I often have the impact of my donation doubled by having the charity use it as matching funds for fundraisers.
Post: Give It Away Already
Link to comment from January 25, 2025
I have a vast immaterial strategic Bitcoin reserve!
Post: Worth Repeating
Link to comment from December 29, 2024
Reminds me of a colleague at work who is past age 70 and has not yet claimed Social Security because she doesn't want to pay taxes on it.
Post: Taxing Our Brains
Link to comment from December 20, 2023
Great article, Jonathan! Living on $55,000 would be quite lavish for me. It helps that my last mortgage payment was in 1975 and I have yet to eat out, get food delivered or travel this century (all my preference).
Post: Happily Ever After
Link to comment from December 16, 2023
If you already have enough and are charitably inclined, why pay any additional taxes when you can utilize qualified charitable distributions (QCD)? One can start as early as 70.5, give up to $100,000 per year, have it count towards some or all of one's RMD (when required to take an RMD) and--best of all--there are no tax consequences! It doesn't even show up as income. This is such a great gift from the IRS, that I worry it will go away one day. And, it can be a wonderful way to give meaningful amounts to charities that align with one's values. There are so many smaller (and often all volunteer) worthy nonprofits where a QCD could make a world of difference. I have struggled making the transition from accumulating savings to using it, but I have found giving via QCDs to be a great option and very rewarding.
Post: Running Up the Tab
Link to comment from December 9, 2023
I like the thanks-giving part. There is so much joy that comes from giving. And there are so many worthy causes in need of our support that align with our values.
Post: Room at the Table
Link to comment from November 23, 2023
To accurately assess my investment portfolio, I created my own fund way back in 1989. I track it weekly. I initially took my balance and divided it by $10 to give me the number of shares. When I add or withdraw money, I divide that amount by the current balance to calculate the number of shares to add or subtract. Each week I divide my total portfolio balance by the current number of shares and I get my net asset value (NAV). It's worked like a charm for for many years, I know exactly what my actual returns are. Of course, I actually like doing this!
Post: Confidence Game
Link to comment from November 18, 2023
I'm following the Warren Buffet plan. He's 93 and still working. I'm only 71, but also still working and have no plans to retire. Maybe it helps that I don't like to travel and generally enjoy my work. Also, I waited until 70 to start collecting Social Security, so now it's like getting a double salary. It's my form of FIRE: Financially Independent, Retire Eventually!
Post: Bracing for Evening
Link to comment from November 4, 2023
I fully agree that this is a great book. I am also reading it twice! Another terrific book that I've now read several times is William Green's "Richer, Wiser, Happier."
Post: A Profitable Read
Link to comment from October 31, 2023
Not sure if layaways are still done at retailers, but back in the days of K-Mart it was a way for cash-strapped parents (or a single parent) to set aside Christmas gifts for their children and try to pay them off in time for Christmas. What a joy it was to pay off one of the layaway tabs and have the layaway department call the customer to tell them that a "Secret Santa" had just paid the balance due.
Post: Random Acts
Link to comment from October 14, 2023