Ed Slott Advice - any good?

HpRyder

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I watched a KOCE pledge drive late last night and they featured Ed Slott talking about, essentially, his book content "Stay Rich Forever & Ever" scare stories. Of course it was lite on real how to information. Seemed to me to be like the "Rich Dad Poor Dad" series. I googled "Ed Slott" and only came up with 1 review not having anything to do with retirement planning material.

Has anyone had experience using Slotts approaches? Or his current material an OK top level reference source?

Any opinions?
 
YES. I use his material and website. He may be the best in the country and the responses on the board are usually by CPA's or Estate Attorneys.
 
I have read his books and seen him live. He is an IRA guru, no bones about it.
 
Don't know what material of his you saw, but he's the expert's expert on IRAs. His IRA books are among the best ever.
 
Don't know what material of his you saw, but he's the expert's expert on IRAs. His IRA books are among the best ever.

A local Orange County CA PBS tv station fund raiser showed him talking about retirement and tax saving. For a $200 "donation" you get his book "Stay Rich Forever & Ever", a "Stay Rich Retirement Work Book Kit" and an expanded dvd of the show with more material. The "donation" is certainly more than the individual pieces cost, assuming you could get the "Stay Rich Retirement Work Book Kit" and dvd. But it will be a convient starting point for me.
 
A local Orange County CA PBS tv station fund raiser showed him talking about retirement and tax saving. For a $200 "donation" you get his book "Stay Rich Forever & Ever", a "Stay Rich Retirement Work Book Kit" and an expanded dvd of the show with more material. The "donation" is certainly more than the individual pieces cost, assuming you could get the "Stay Rich Retirement Work Book Kit" and dvd. But it will be a convient starting point for me.
I wonder if he could've showed Orange County how to avoid that bankruptcy thing a few years back.

Before you spend the money, check your library for Ed's books (he's published several over the last 10 years) or post a question at his discussion board:
Ed Slott's IRA Forum :: Index
 
He has several books in my library that I have on order now thanks to this info.

One I am very interested in has the following title.

"Parlay your IRA into a family fortune, 3 easy steps for creating a lifetime supply of tax-deferred, even tax free wealth for you and your family."

Putting all this money away and managing it is one gigantic hurdle, figuring out how to take it all out and manage the tax aspects the absolute best you can is another. thanks for the link to the forum as well.
 
How to Parlay Your IRA into a family fortune, 3 easy steps for creating a lifetime supply of tax-deferred, even tax free wealth for you and your family."

Putting all this money away and managing it is one gigantic hurdle, figuring out how to take it all out and manage the tax aspects the absolute best you can is another. thanks for the link to the forum as well.

That book is on my desk at all times, it's a MUST READ for anyone with an IRA...........:D
 
More Ed Slott questions

I also watched the PBS Ed Slott show and two statements caught my ears. Since some of you seem familiar with him and his writing (or the topic!), can you confirm if I mis-heard these, and add any other advice:

--"It is better to pay IRA taxes now (if you can) and roll them into Roth IRA's because the taxes you inevitably must pay will be higher if you wait 20 years (when you might 'normally' draw out the IRA's."

--"The biggest benefit in the tax code is Life Insurance." --is he referring to tax exemption on life insurance proceeds, or on premiums?

Many thanks for any input!
 
--"It is better to pay IRA taxes now (if you can) and roll them into Roth IRA's because the taxes you inevitably must pay will be higher if you wait 20 years (when you might 'normally' draw out the IRA's."

Ed believes tax rates will be sunstantially higher in the future, and will stay high for a long time. Given our govt's current course of action, he is right to think that..........

--"The biggest benefit in the tax code is Life Insurance." --is he referring to tax exemption on life insurance proceeds, or on premiums?

Many thanks for any input!

He is referring to the proceeds going to beneficiaries tax free. He is BIG on Roth IRAs because you can create tax-free income for tour heirs........
 
Ed believes tax rates will be sunstantially higher in the future, and will stay high for a long time. Given our govt's current course of action, he is right to think that..........
While that may be true, what's really important is what your individual rate will be. If you will be in a significantly lower bracket in FIRE, then paying later may be smarter. This will likely be the case with us. We're in the 33% bracket now...and I'm estimating we'll be in the middle of the 25% bracket later. Sure, that 25% bracket may become a 30% bracket, but it's still lower than 33%. Could it be HIGHER than 33%? Doubtful IMO.

Each person will have a different set of circumstances and should weigh their options carefully.
 
Don't know what material of his you saw, but he's the expert's expert on IRAs. His IRA books are among the best ever.

A local Orange County CA PBS tv station fund raiser showed him talking about retirement and tax saving. For a $200 "donation" you get his book "Stay Rich Forever & Ever", a "Stay Rich Retirement Work Book Kit" and an expanded dvd of the show with more material. The "donation" is certainly more than the individual pieces cost, assuming you could get the "Stay Rich Retirement Work Book Kit" and dvd. But it will be a convient starting point for me.

I've heard Ed Slott talk about IRAs and he's basically selling knowledge and strategies that you can pick up free of charge with some Googling and application of a little tax knowledge. You could also ask on this board.

He knows what he's talking about, but I'd give the $200 to support PBS rather than to get the book, that's just a bonus.
 
I think his plan is a good one, but not for the living. If you are the next generation he's on target IMHO.
 
While that may be true, what's really important is what your individual rate will be. If you will be in a significantly lower bracket in FIRE, then paying later may be smarter. This will likely be the case with us. We're in the 33% bracket now...and I'm estimating we'll be in the middle of the 25% bracket later. Sure, that 25% bracket may become a 30% bracket, but it's still lower than 33%. Could it be HIGHER than 33%? Doubtful IMO.

Each person will have a different set of circumstances and should weigh their options carefully.

DW and I will have current taxe rate at 33% today and will wait to convert at at up to the 15% rate based on taxes rates today once ERd. Which we hope is soon. Another big consideration is lost the opportunity cost due to time value of money on the tax paid upfront when deciding to convert to a Roth.
 
DW and I will have current taxe rate at 33% today and will wait to convert at at up to the 15% rate based on taxes rates today once ERd. Which we hope is soon. Another big consideration is lost the opportunity cost due to time value of money on the tax paid upfront when deciding to convert to a Roth.

As I have mandatory 401a contributions of $15k, 457 at $22.5k and 403b also at $22.5k and then you add in itemized deductions I end up paying 16% tax. In the first ER years I'll live on after tax money and do IRA to ROTH rollovers up to the 15% tax bracket. I should end up paying around 10% tax and when I take IRA income it will be around $40k a year so my tax bill will again be close to 10%.
 
--"The biggest benefit in the tax code is Life Insurance." --is he referring to tax exemption on life insurance proceeds, or on premiums?

Many thanks for any input!

Life insurance done how most people do it will be added to your estate upon death. If your estate is large enough to worry about estate taxes, setting up a life insurance trust can move the proceeds out of your estate to your beneficiaries and not taxed to your heirs. This requires multi-generational planning.
 
I think another reason for favoring the Roth account and taxes now is to save higher taxes later if RMDs are high. Ed Slott advocates saving large amounts so that total IRA size could result in a substantial balance and potentially large RMD.
 
Life insurance done how most people do it will be added to your estate upon death. If your estate is large enough to worry about estate taxes, setting up a life insurance trust can move the proceeds out of your estate to your beneficiaries and not taxed to your heirs. This requires multi-generational planning.

Mr. Slott also recommends using life insurance to pay whatever estate taxes are unavoidable. If your heir(s) own a policy on you (they pay the premiums), the payout upon your death isn't part of the estate and can be used to pay the estate taxes. He mentions that you can gift the heirs the money needed to make the premium payments. This works well up to a certain point, and assuming you can get the heirs to keep up the payments.
 
I have watched the Ed Slott specials on PBS a few times over the years and have found them more entertaining than useful, not that I am questioning his expertise. This is because a large portion of his advise relates to people who have children, and I am childfree. This casues me to zone out until he can return to discussing something useful to all people, not just those with children.
 
My take on Mr Slott is that he is certainly a subject expert on IRAs. I follow him for his knowledge and to better understand the subject. However, he does spend a considerable effort on the sales of his products (books, DVDs, and training sessions). My take for what it is worth, is that he is particulary valuable for financial planners and those interested in the broad area of maximizing your IRA and passing along the IRA to future generations. While I try to learn from his publications, I don't follow his advice completely. My goal is to be FI and stay that way. Anything left for the next generation is way down on my priority list. :-}
 
I think his plan is a good one, but not for the living. If you are the next generation he's on target IMHO.
Exactly. His advice is not necessarily geared to the current generation but more to the multi-generational scenario where a lot of his "techniques" make sense in the long term view.

Of course, the current generation - who may put this plan in place, will never see the results :cool: ...
 
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I had him taped on my dvr so i started watching him last night. I so wanted to love him...i would love to get a book read it and keep it under my pillow...but alas I was left with only a sales pitch from someone that says he is not a sales person....i think i will buy a couple shares of wellesley rather than his book. Or worse life insurance.

I would have liked him to come out with a black board and go over ten example cases...maybe he does later i did not watch the whole thing. I have been warned so many times NOT to buy whole life.
 
I had him taped on my dvr so i started watching him last night. I so wanted to love him...i would love to get a book read it and keep it under my pillow...but alas I was left with only a sales pitch from someone that says he is not a sales person.....
He isn't a salesperson, he is a CPA who has become the expert on IRAs. PBS specials by experts are nothing more than infomercials for the presenter and fund-raisers for the station. The fund-raising part is what the tv station wants you to focus on.

Go to the library, check out one of his books -- they will provide you with much more info than a 90 minute informercial.

-- Rita
 
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