RHA VEBA Vacation email
12-17-2017 | 07:29 AM
#41
Gets Weekends Off
Joined: Feb 2011
Posts: 3,866
Likes: 0
OK, just to be clear. That's recharacterization, not conversion that's being done away with.
Roth conversion: Converting Traditional IRA/401k money to a Roth IRA/401k.
Recharacterization: Changing one's mind after a Roth conversion and undoing it.
Roth conversion: Converting Traditional IRA/401k money to a Roth IRA/401k.
Recharacterization: Changing one's mind after a Roth conversion and undoing it.
12-17-2017 | 01:04 PM
#43
Gets Weekends Off
Joined: Mar 2006
Posts: 5,213
Likes: 14
From: guppy CA
No worries; I figured that you knew the difference but I can see where it's easy to get confused on the subject.
Pilots are good at two things:
1) making money, and
2) urinating away money.
Money strategy/management/investing isn't for everyone. If your brain's hurting, I'd suggest that you find a trustworthy team to manage this kind of stuff.
I can unequivocally state that not stressing about my finances (or concern over whether or not my heirs burn through everything I've saved) is priceless.
Pilots are good at two things: 1) making money, and
2) urinating away money.
Money strategy/management/investing isn't for everyone. If your brain's hurting, I'd suggest that you find a trustworthy team to manage this kind of stuff.
I can unequivocally state that not stressing about my finances (or concern over whether or not my heirs burn through everything I've saved) is priceless.
12-17-2017 | 02:44 PM
#44
Line Holder
Joined: Mar 2005
Posts: 410
Likes: 3
If you're planning on leave a decent sized estate, I highly recommend setting up a trust; I really like the dynasty trust (established in either SD or NV - you don't need to be a resident of either state). The trust allows you to avoid any estate taxes and also allows you to specify how the funds will be used/distributed and has a number of protections against being wiped out by lawsuits against your heirs. You can specify distribution of the funds to make sure that your heirs don't urinate it all away. A further feature of the dynasty trust is that if established in NV, it has a duration up to 365 years; in SD, it can run in perpetuity.
My only concern is family tree dilution and my heirs urinating the money, to use your term.
http://www.bankrate.com/finance/smart-spending/wealthy-families-who-lost-their-fortune-1.aspx
12-17-2017 | 04:39 PM
#45
Gets Weekends Off
Joined: Mar 2006
Posts: 5,213
Likes: 14
From: guppy CA
I've thought about doing something like that, especially for creating a charitable organization. Take $1,000,000 and let it compound for 50 years and your family name will be famous. Allow the trust to withdrawal 2% a year, and only in up years, and you could live on forever.
My only concern is family tree dilution and my heirs urinating the money, to use your term.
5 Wealthy Families Who Lost Their Fortunes
My only concern is family tree dilution and my heirs urinating the money, to use your term.
5 Wealthy Families Who Lost Their Fortunes
12-20-2017 | 08:07 PM
#47
Gets Weekends Off
Joined: Sep 2014
Posts: 481
Likes: 0
From: Airbus 320 Captain
Assuming you live to 95, you're looking at about $200,000 in medicare expenditure. Since the VEBA money is tax free going in AND coming out, it's really a great retirement asset.
12-23-2017 | 04:47 AM
#48
Gets Weekends Off
Joined: Dec 2008
Posts: 199
Likes: 0
From: 777 Cap
RHA is fantastic. Tax free in, tax free growth, tax free withdrawals. I would think MOST people will spend enough on health care post retirement to make this a great place to stash money.
However... if you are not married and/or don’t have kids, you cannot designate a beneficiary. So if you die, that money goes back into the pilot pool. Just FYI
However... if you are not married and/or don’t have kids, you cannot designate a beneficiary. So if you die, that money goes back into the pilot pool. Just FYI
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