This is somewhat correct; this is from the IRS website regarding Roth 401k’s, but with a caveat; so if you’re kickin the IRS doesn’t make you take RMDs, but whoever you leave it to will.

“The RMD rules also apply to Roth 401(k) accounts. However, the RMD rules do not apply to Roth IRAs while the owner is alive.”

https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-required-minimum-distributions#2

This same rule applies to a Roth IRA.

https://www.rothira.com/roth-ira-required-minimum-distribution-rmd

Like some others, I focus my funds on Roth accounts, to me it is “tax insurance”. I’m betting on the fact that taxes go up over time, and I don’t want the government to dictatate withdrawals and move me into higher tax brackets. I think the distributons from the company contribution will provide a decent balance Of taking the tax relieve now and will be subject to government imposed RMDs. A lot do argue that it only makes sense to take the tax break now, the whole “bird in the Hand” thing. It’s a valid argument.

My side hustle; options. Sitting on my butt and letting volitility produce additional income.

 

I'll also throw this out there for those who have the TSP option available and are looking to rathole away more retirement money.

415 limits are per EMPLOYER. If the only contributions to your DPSP are the company contributions and 401a (ie...NO personal 401k contributions), you can still contribute to your TSP up to the full $18,500 (or more if you earn the money in a tax free combat zone). As always DYODD.

 

False. Cheaper healthcare with better coverage and a retirement will get plenty of guardsmen and reservists to quit the side gig. Anything the airlines can do at little to no cost would be more accurate.

 

He can do that. But remember, part of the mortgage (Principle and Interest) goes to principle thus help paying off the house.

Renters help. Although Liabilities could be the issue.

TEN

 

On their days off, most DAL guys earn extra income as the guard police.

 

Oh, I thought they were just challenging someone in a sword fight.

 

You could do that if paying off the house was your primary goal. But it's cheap to borrow right now so what I think is a more prudent strategy (especially if your goal is to grow your rental business) is to keep those profits in an account ready for future investment or to cover the inevitable pop up expenses. As I said earlier, vacancies happen (planned and unplanned), evictions happen (months of lost rent plus some extra move out/make ready expense is probable), repairs happen (planned and unplanned). As a data point, in the last 12 months I have had a water heater go bad ($1200), an AC unit need replacing ($2500) and hurricane damage ($1200...and of course I carry a $1500 deductible, go figure). Best not to be sweating it to cover those expenses or covering just basic mortgage payments and upkeep while the property is vacant (as my dad was fond of saying, "that lawn ain't gonna mow itself!").

For me, the side hustle isn't about income now. I get plenty of that for my current needs from Momma Delta right now. Its about replacing that income when Momma Delta is out of the picture, be it because of retirement (early or otherwise), medical issues (car wrecks happen even to the best drivers), or these JVs don't pan out after all and Delta goes T-U during the next economic downturn or black swan event. That's my bottom line.

 

How many properties do you have? How many to you want to end up with? What kind of LTV do you have on the mortgage(s)?

We moved out of our old house (about 50% LTV now) and I'm contemplating paying it off completely or using cash on hand to put ~50% down on another one.

It sounds like you lean towards hanging onto the debt since it's cheap money, which is why I'm curious what your long term plan is.

I like the idea of having a handful of houses paid off by retirement, but am torn on whether to pay one off at a time (safer) or spread it out and let the tenants pay them down.

 

Slightly off topic but the money gurus seem to be here in force. Selling a piece of inherited investment property that is in mine, my mother's, and sister's names. Are we required to split the proceeds equally or can we distribute the profits in any way we choose without any other tax implications other than the capital gains we'll have to pay on the profit?

 

How is the property titled and how long ago was it inherited?

If all 3 are on the title then you may have an issue splitting it up other than 1/3’s. It would essentially be as if you were gifting some of those proceeds to the one taking the largest %.

Depending on the value you’re talking about though, it might be achievable. You can gift up to $14k to/from an individual per tax year. For example, you could sell the place and then you and your wife could each give $14k of proceeds to your sister and her husband, for a total of $56k in 2018. If it’s a big amount you could “give” another $56k in 2019 without incurring a tax liability for anyone.

I ask about how long ago it was inherited, because typically there is a step up in basis on death, meaning if you sell soon after it is inherited there should be little to no capital gains.

All of this is just from past family experience and I’m not a tax lawyer or accountant, so DYODD. It does sound though like you have some options available to get creative with what you’re trying to accomplish.