I recently read Die with Zero by Bill Perkins. I didn’t agree with all of his thoughts, but Chspter #5 What about the kids? suggests that we periodically gift monies to our kids and charities when we’re living and the kids and charities need the money to better their lives. ie Do you want to be gifted $200K when you’re 60-65 years old, or would you have preferred to receive the gifts when you were 35 and your family is young and looking to buy a bigger home or remodel your old kitchen? And don’t be guilted into thinking the kids NEED/DESERVE it all!! Hopefully, you/spouse have meaningful non-profits that would appreciate your financial generosity now!
Now that we are retired, at the direction of our financial planner (Thank you for guiding us for the last 15 years), we’ve started Roth conversions in coordination with funding our DAF. We’re planning to closely manage the benefits of Roth Conversions, funding our Donor Advised Fund - every other year to maximize the benefits of Itemized Deductions vs Standard Deduction and enjoy our grandkids! As others have shared, QCDs will be used to cover part of our RMDs when that time arrives. How you prioritize your legacy and future gifting may influence how aggressive you may want to convert to Roths.
Comments
I recently read Die with Zero by Bill Perkins. I didn’t agree with all of his thoughts, but Chspter #5 What about the kids? suggests that we periodically gift monies to our kids and charities when we’re living and the kids and charities need the money to better their lives. ie Do you want to be gifted $200K when you’re 60-65 years old, or would you have preferred to receive the gifts when you were 35 and your family is young and looking to buy a bigger home or remodel your old kitchen? And don’t be guilted into thinking the kids NEED/DESERVE it all!! Hopefully, you/spouse have meaningful non-profits that would appreciate your financial generosity now!
Post: Giving Advice
Link to comment from April 5, 2025
Now that we are retired, at the direction of our financial planner (Thank you for guiding us for the last 15 years), we’ve started Roth conversions in coordination with funding our DAF. We’re planning to closely manage the benefits of Roth Conversions, funding our Donor Advised Fund - every other year to maximize the benefits of Itemized Deductions vs Standard Deduction and enjoy our grandkids! As others have shared, QCDs will be used to cover part of our RMDs when that time arrives. How you prioritize your legacy and future gifting may influence how aggressive you may want to convert to Roths.
Post: To Roth Convert or Not
Link to comment from March 8, 2025