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

Foodeefish · 08-07-2007, 05:26 PM

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 · 08-07-2007, 05:45 PM

A Beemer?

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

LOL! · 08-07-2007, 07:00 PM

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 · 08-07-2007, 08:36 PM

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 · 08-08-2007, 07:51 PM

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 · 08-09-2007, 07:16 AM

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

USK Coastie · 08-09-2007, 11:22 AM

Have you considered ER?

CourtneyC · 08-22-2007, 02:12 AM

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.

08-07-2007, 05:26 PM	#1
Foodeefish Dryer sheet aficionado Join Date: Nov 2005 Posts: 27	End of year windfall-for next 9 years- another home? 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?

08-07-2007, 05:45 PM	#2
kumquat Full time employment: Posting here. Join Date: Nov 2005 Posts: 812	A Beemer? Just kidding, but not enough info regarding current savings, income, living cost and ER plans to comment. __________________ Life's a bitch and then you come back - Hindu proverb

08-07-2007, 08:36 PM	#4
brewer12345 Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Mar 2003 Posts: 9,226	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. __________________ “When you realize that you are one of the rare few who observe moral principles in their relationships with others, there is a temptation to sink into amorality, not out of conviction or pleasure but simply to avoid further pain, because there is no greater suffering than being an angel in hell, whereas a devil feels at home wherever he goes.” – Martin Page, How I Became Stupid

08-08-2007, 07:51 PM	#5
Foodeefish Dryer sheet aficionado Join Date: Nov 2005 Posts: 27	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

08-09-2007, 07:16 AM	#6
brookiel Confused about dryer sheets Join Date: Aug 2007 Posts: 4	Wow, well sounds like you don't need it! Maybe give it to charity? __________________ Retire to Asia - Save and Live like Royalty

08-07-2007, 07:00 PM	#3
LOL! Thinks s/he gets paid by the post Join Date: Jun 2005 Posts: 2,271	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.

08-09-2007, 11:22 AM	#7
USK Coastie Recycles dryer sheets Join Date: Dec 2006 Posts: 329	Have you considered ER? __________________ Greetings from the Socialist States of Amerika. Maybe its time for pitchforks and torches for the weasels in Washington from BOTH Parties

08-22-2007, 02:12 AM	#8
CourtneyC Dryer sheet aficionado Join Date: Aug 2007 Location: san francisco Posts: 46	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. __________________ afteriretire.com

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