End of year windfall-for next 9 years- another home?

[Foodeefish]

I am 46 years old, no debt and I will receive after taxes $26,000 each year for the next nine years. This is due to a defered compensation payout.

What would you do with this money if you had zero debt, in a high tax bracket, and your income is too high for a taxed deferred IRA?

 

[kumquat]

A Beemer?

Just kidding, but not enough info regarding current savings, income, living cost and ER plans to comment.

 

[LOL!]

Assuming the income is available to invest, I would look at my asset allocation and use it to rebalance as needed. This would go into a taxable account, so I would add to my ETFs: SPY, MDY, IWM, VBR, DLS, VEU, VWO which are reasonably tax efficient in the asset classes that needed the money. I have REITs, TIPs, other bonds in my tax-deferred accounts, so none of this money would go into fixed income per se.

Since this comes from a deferred compensation package, is there any way to keep it tax-deferred, perhaps by a 1035 exchange? We need to find a tax accountant that can help.

 

[brewer12345]

Consult a competent tax accountant. You might just be stuck paying the tax man, but I bet a sharp accountant could figure out a way to shelter some of it.

Then invest the remainder in beever-chee3e futures, preferably levered. Or give it to Chapman Capital to manage and try not to pee yourself laughing when you read their investor letters.

 

[Foodeefish]

Help me tax accountant please !!!!!!!!

I actually have the 525 beemer and I paid cash for it. I am 46 my wife is 52 and we make over $250K.

- $100K in CDs
- $600K in 401K and IRAs
- House is paid for worth conservatively $700K
- Retirement land paid for in cash
- Retirement home to build in South Carolina - max $350K
- Moving from Maryland to Wagener South Carolina when we ER
- Will work only to get Benefits when we move south- but we will work
- No Kids

Thanks

 

[brookiel]

Wow, well sounds like you don't need it! Maybe give it to charity?

 

[USK Coastie]

Have you considered ER?

 

[CourtneyC]

I would probably invest it in real estate. It sounds like you are fiscally responsible, so taking on some debt might actually be a good thing because it allows you to leverage your returns. At the end of the day it just depends on your risk tolerance.