The Absolute Worst Money to Leave Your Loved Ones!

(don’t forget to checkout the video of this blog too)

I talk with a lot of people who have plans to leave some sort of inheritance to their loved ones.

And a LOT of times the plan is to leave whatever is “leftover” from their retirement accounts.

While it’s a very generous consideration, it’s NOT a very good strategy (especially with recent tax law changes).

Leaving retirement assets to your loved ones is typically the WORST money you can leave them.

That’s not only because of the taxation, but also because the new distribution requirements.

Now leaving loved ones money is wonderful and thoughtful, but it should always be secondary to your own retirement planning.

But, if you’ve put together a comprehensive retirement income plan and there’s still money left over…

Then it’s important to start developing a wealth transfer strategy. 😎

Just a few years ago if you inherited a retirement account you could stretch that income over your lifetime.

That loophole has been slammed shut❕

Now, you’re FORCED to liquidate that taxable account in 10 years.

The problem with that is that most beneficiaries inherit money in their PEAK earning years.

That means they’re likely to end up liquidating that inheritance and paying all the taxes in their highest marginal tax bracket (or higher).

So if you inherit $1M you could end up giving half of it to Uncle Sam if you haven’t done the proper legacy planning…

Not exactly ideal.

That’s why it’s so important to develop a retirement income plan that secures some guaranteed income for your life.

Then, you can really determine how much you might have leftover.

From there, you can start repositioning that into vehicles that allow for a completely tax-free wealth transfer.

That way if you give your loved ones $1M they actually get $1M.

Let’s Chat 💬😎