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Originally Posted by LOL!
We didn't discuss how to make all this tax efficient because you didn't say what her marginal income tax bracket was and other aspects of her financial life. It's possible that she is paying thousands of dollars in taxes on investment income that could be avoided.
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True, and that situation hits close to home.
I've been managing my mom's money since my dad died (she's 74) and in a somewhat similar situation to the woman whose situation is being discussed. She doesn't have $1M, but she does have well into 6 figures and doesn't need any of it to live on. About half of it is in an IRA and the rest is taxable.
Part of my "job" is to find reasonable investments for the taxable portion that don't generate a lot of taxes. Of course, these days CDs and money markets pay almost no taxable income, either....
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"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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