Episode 207: Mailbag – Withdrawal Woes, Rental Properties, Tax Hassles & More

On this episode of Cover Your Assets KC, we’re answering four listener questions on our latest “Mailbag” edition of the show. Join us as we touch on questions about Roth conversions for a 60-year-old, inherited money with forced withdrawals, using rental properties for retirement income, and concerns about being hassled to pay quarterly taxes in retirement.

We’ll cover a lot of ground on this episode, so whether you’re nearing retirement or already there, there’s sure to be something of value for you in today’s conversation.

We'll start by addressing the question of whether someone who's 60 and retiring in the next 5-6 years should start converting as much of their IRA to Roth as they can. Next, we'll discuss the letter that one listener received informing them that they need to withdraw some money from an inherited account. We'll also delve into a question from a listener who has multiple options for how to fund the purchase of a rental property. And finally, we'll tackle someone’s concern about not knowing how their tax situation will change in retirement and if they’ll have to pay quarterly taxes.

Join us as we explore these important retirement planning topics, and as always, if you have any questions, feel free to send them in!

 

Here are the questions we cover on today’s episode:

• I’m 60 and probably retiring in 5-6 years. Should I start converting as much of my IRA to Roth as I can? (2:35)
• I inherited some money from my mom when she passed away last year, and I just got a letter telling me that I have to withdraw some money from the account this year. What’s that all about—I thought I didn’t have to do that until I’m in my 70s? (6:07)
• I’m interested in buying a rental property for some additional retirement income. Which of these options is better? Should I cash out investments and pay cash for the property, should I take out a home equity loan to raise the cash, or should I just have a mortgage on the rental property? (9:24)
• My income will be different once I retire in a few months, so I’m not sure what I’m supposed to do about taxes. Should I be making estimated payments every quarter? How do I know how much I should be paying since I’ll be in a different tax bracket than I’ve been in the past? (14:00)

 

For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.