I did the 'right' things: Invested fully to my 401Ks and IRAs. If you're like me, you'll face the same problem I'm facing: Have accumulated a fortune (fortunately) in your retirement accounts but you have to pay taxes (unfortunately) on your entire accounts.
Some non-savers like to share our wealth with all kinds of excuses. Legally we have to via taxes and I do not mind to share the wealth. However, it is not fair for savers who sacrifice current enjoyment to save for the future.
The poor can see the doctor without paying a penny or have free stay in nursery homes. We, the middle class, cannot. The system does not encourage folks to work hard and take risk. I hate that the lady in front of the check-out line bought the most expensive cut of the meat with her food stamp card. There are some needy we should help, but not the cheaters.
I try to see what will my minimum withdraw requirement be when I turn 70 1/2. You can find all the information in the web. I have to withdraw a large amount from now on to reduce the chance of going over $250,000 when the required withdrawal kicks in (if you do not do so, the penalty is hefty). It looks like my income from this year on is more than the highest total income during my work years.
Roth IRA is still the best way to go. 401K is only good if your expected retirement income (including 401K withdrawal) is less than (or close to) your current income. If I can do it all over again, I may not contribute that much to my 401K especially when my wife was not working.
The future blog will include my experience in planning for estate taxes. With taxes, there is no one size that fits all.
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