Tractor News What is driving up the demand for tractors?

[CloverKnollFarms]

True, he said withdrawing from investments so my mind went to my situation.

I want to withdraw a couple hundred thousand from an IRA to supplement proceeds from my current home to build a new home in 3 years. My plan is to be debt free so no mortgage.

I ran my idea past my advisor. He said the tax implications would a large chunk of money. He advised a mortgage.

I'm 70 so I can see his point.

This isn’t from retirement, this is from our overflow brokerage

 

[5030]

I haven't been withdrawing from my 7 figure IRA except for hunt money because our wonderful state imposed a retirement tax on 401 proceeds so I've been holding out in anticipation of them (Michigan) repealing the pension tax (something I feel is very unjust in the first place) and looks a though they are. About time.

I don't consider building a new house now is a wise investment, but then the farm is free and clear anyway. I have very little in the way of liabilities and I like to keep it that way.

 

[rScotty]

Don't they have to pay capital gains on dividends?

Yes they do, but it depends on the type of account. Dividends on simple investment accounts are taxed as income, just like the interest on a savings account is taxed as income.

The rules are different for retirement accounts because there are a couple of types. The most basic is a "simple IRA", which you can start yourself at any bank or brokerage.
For simple IRAs, the dividends can stay in the account and are not taxed until withdrawn. After a certain retirement age (about 70) , an annual withdrawal is required from the account. It amounts to about 10% of the total each year and is taxed as income. For that reason, most IRA accounts automatically reinvest the dividends until retirement and sometimes beyond.

rScotty

 

[ovrszd]

True, he said withdrawing from investments so my mind went to my situation.

I want to withdraw a couple hundred thousand from an IRA to supplement proceeds from my current home to build a new home in 3 years. My plan is to be debt free so no mortgage.

I ran my idea past my advisor. He said the tax implications would a large chunk of money. He advised a mortgage.

I'm 70 so I can see his point.

I did just that to the tune of $50K. It was taxed at 17%. I got most of it back thru deductions. But it still left a mark. But I'm living in a new house and sitting in a new shop right now with no mortgage. It was worth it to me. I'm 70 and debt free. I will stay that way.

 

[coobie]

I haven't been withdrawing from my 7 figure IRA except for hunt money because our wonderful state imposed a retirement tax on 401 proceeds so I've been holding out in anticipation of them (Michigan) repealing the pension tax (something I feel is very unjust in the first place) and looks a though they are. About time.

I don't consider building a new house now is a wise investment, but then the farm is free and clear anyway. I have very little in the way of liabilities and I like to keep it that way.

If you don't like the state Rules Move to another state.Pretty simple math IMHO.

 

[check]

I did just that to the tune of $50K. It was taxed at 17%. I got most of it back thru deductions. But it still left a mark. But I'm living in a new house and sitting in a new shop right now with no mortgage. It was worth it to me. I'm 70 and debt free. I will stay that way.

Really? You guys only pay 17% tax?

 

[5030]

I did just that to the tune of $50K. It was taxed at 17%. I got most of it back thru deductions. But it still left a mark. But I'm living in a new house and sitting in a new shop right now with no mortgage. It was worth it to me. I'm 70 and debt free. I will stay that way.

Got enough left for a new Mavic?

 

[5030]

I did just that to the tune of $50K. It was taxed at 17%. I got most of it back thru deductions. But it still left a mark. But I'm living in a new house and sitting in a new shop right now with no mortgage. It was worth it to me. I'm 70 and debt free. I will stay that way.

I had no idea you were that ancient....lol You don't look like it and you still work too, but then your job is an office job and your office is on wheels...

 

[ovrszd]

Really? You guys only pay 17% tax?

The final rate we pay varies tremendously. Haven't you heard us whine about that down here?

In the situation I described 17% was withheld from my withdrawal. Fortunately I was able to recoup most of it thru deductions. But not all of it.

So I paid a price to be mortgage free. It was a very thoughtful decision. I'm content with my choice. I wasn't drawing any monthly income from that money anyway. So it only affected my net worth if I die. And I don't care much about that. It was preferable to create a debt free situation for my wife if I suddenly died.

 

[ovrszd]

I had no idea you were that ancient....lol You don't look like it and you still work too, but then your job is an office job and your office is on wheels...

If I'd have known I'd last this long I would have taken better care of myself.....