What's new
Fantasy Football - Footballguys Forums

This is a sample guest message. Register a free account today to become a member! Once signed in, you'll be able to participate on this site by adding your own topics and posts, as well as connect with other members through your own private inbox!

You get 100K what do you do? (1 Viewer)

IC FBGCav

IC FBGCav

Footballguy
This is a real situation for a family member.

The 100K is taxable because it comes from her spouses death and from a pension.

The right answer to me is roll into a 401 for 9 years until she is 59 . But she seems to want to cash out at least half of it. Any good plays to save on taxes?

 
You can't roll it into a 401k. Ira, yes.

You can't avoid the taxes, and never sweat taxes on big money.

Index funds.

 
A week Heli-skiing in Alaska. Two weeks in Caribbean. Then put the rest to paying off the house. The interest saved is better than the return on low risk investments.

 
Brady Marino said:
Kill debt first, invest second.
Click to expand...
Yep. Debt first.

How much are taxes? Assuming we'd walk away with $75k, we have no debt so we'd go with something like

$8k in the kids college funds

$45k towards our house fund

$5k on 2 vacations (Disney, cruise, or a beach house with the extended families)

$10k to charity

$7k blow money - I'd like a new bike, wife would like sewing stuff or whatever, plus day trips

 
Last edited by a moderator:
FatUncleJerryBuss said:
The 100K is taxable because it comes from her spouses death and from a pension.
Click to expand...
Pay for a consult with a CPA. On first blush I'd say this might not be taxable. You're gambling a hundred bucks over maybe saving 25k if it is shelterable. I'd have them gather paperwork and do this ASAP.

 
Do the right thing people....

Tithe it all to your church so your pastor can get that new S Class he's always wanted... that way he can help the needy in style. :thumbup:

 
Last edited by a moderator:
FUBAR said:
Brady Marino said:
Kill debt first, invest second.
Click to expand...
Yep.Debt first.

How much are taxes? Assuming we'd walk away with $75k, we have no debt so we'd go with something like

$8k in the kids college funds

$45k towards our house fund

$5k on 2 vacations (Disney, cruise, or a beach house with the extended families)

$10k to charity

$7k blow money - I'd like a new bike, wife would like sewing stuff or whatever, plus day trips
Click to expand...
That's a lot of blow.

 
Last edited by a moderator:
Sand said:
FatUncleJerryBuss said:
The 100K is taxable because it comes from her spouses death and from a pension.
Click to expand...
Pay for a consult with a CPA. On first blush I'd say this might not be taxable. You're gambling a hundred bucks over maybe saving 25k if it is shelterable. I'd have them gather paperwork and do this ASAP.
Click to expand...
That's the way to go. Paying off debt is counterproductive if it creates a large tax liability

 
FUBAR said:
Brady Marino said:
Kill debt first, invest second.
Click to expand...
Yep. Debt first.

How much are taxes? Assuming we'd walk away with $75k, we have no debt so we'd go with something like

$8k in the kids college funds

$45k towards our house fund

$5k on 2 vacations (Disney, cruise, or a beach house with the extended families)

$10k to charity

$7k blow money - I'd like a new bike, wife would like sewing stuff or whatever, plus day trips
Click to expand...
22k on crap and 8k into college funds.....great planning there...
 
I would have her roll it into an IRA for 9 years until she is 59.5 and let it grow. She has interest in improving the house 10k and she might need it to live off of after losing her husband's income.

It is a state of PA pension. On the paperwork the have the amount taxable as the full amount. My main concern is it going to be wasted but that is her choice.

 
sbonomo said:
FUBAR said:
Brady Marino said:
Kill debt first, invest second.
Click to expand...
Yep. Debt first.

How much are taxes? Assuming we'd walk away with $75k, we have no debt so we'd go with something like

$8k in the kids college funds

$45k towards our house fund

$5k on 2 vacations (Disney, cruise, or a beach house with the extended families)

$10k to charity

$7k blow money - I'd like a new bike, wife would like sewing stuff or whatever, plus day trips
Click to expand...
22k on crap and 8k into college funds.....great planning there...
Click to expand...
:lol:

 
cstu said:
FUBAR said:
Brady Marino said:
Kill debt first, invest second.
Click to expand...
Yep.Debt first.

How much are taxes? Assuming we'd walk away with $75k, we have no debt so we'd go with something like

$8k in the kids college funds

$45k towards our house fund

$5k on 2 vacations (Disney, cruise, or a beach house with the extended families)

$10k to charity

$7k blow money - I'd like a new bike, wife would like sewing stuff or whatever, plus day trips
Click to expand...
That's a lot of blow.
Click to expand...
No, it is not.

 
tangfoot said:
FUBAR said:
$10k to charity
Click to expand...
Are you supposed to tithe on net or gross?
Click to expand...
Gross, always gross.

I'd pay off ancillary debt except house, set up the kids for college, buy the Mrs. a car so she'll leave me alone, bank the rest.

Oh and based on a conversation I had with General Malaise years ago (like 10+) I would buy some gold coins. Not a lot, just enough to put into a small burlap bag, put on an eye patch and talk like a pirate when the mood hits #livethedream

 
FatUncleJerryBuss said:
This is a real situation for a family member.

The 100K is taxable because it comes from her spouses death and from a pension.

The right answer to me is roll into a 401 for 9 years until she is 59 . But she seems to want to cash out at least half of it. Any good plays to save on taxes?
Click to expand...
This needs more explanation. It depends on how the pesion survivor benefits are set up. She may not get a lump sum from the pension. Rather just a monthly % (0-100) of his monthly pay. S the lump sum from something else? Lifr insurancelikely not taxable. IRA or 401K there are tax efficient options (beneficiary ira for example) that can reduce tax penalties.

 
jabarony said:
FatUncleJerryBuss said:
This is a real situation for a family member.

The 100K is taxable because it comes from her spouses death and from a pension.

The right answer to me is roll into a 401 for 9 years until she is 59 . But she seems to want to cash out at least half of it. Any good plays to save on taxes?
Click to expand...
This needs more explanation. It depends on how the pesion survivor benefits are set up. She may not get a lump sum from the pension. Rather just a monthly % (0-100) of his monthly pay. S the lump sum from something else? Lifr insurancelikely not taxable. IRA or 401K there are tax efficient options (beneficiary ira for example) that can reduce tax penalties.
Click to expand...
She has many options. She can get 482.00 per month until she dies, she can get 480.00 for 10 years with a guarantee if she dies they will pay out the remainder to her beneficiaries, she can split payments and some lump sum, she can roll it over tax free,etc.

 
Last edited by a moderator:
When she ended up on deciding today was take it all. 29K in fed taxes she would owe, so she can pay off her house 62K.

 
You must log in or register to reply here.

Similar threads

Paddington
  • Locked
  • Poll Poll
How To Get To Heaven When You Die
2 3
Replies
105
Views
3K
Joe Bryant
Joe Bryant
BobbyLayne
Yes, Gen Z is staring at you. The question is why.
2
Replies
77
Views
2K
QUEZILLA
Q
odin33
Seeking medical and legal advice- Handling of daughter's outpatient surgery
Replies
15
Views
513
Terminalxylem
Terminalxylem

Users who are viewing this thread

Total: 1 (members: 0, guests: 1)
Back
Top