Ep 20: Listener Questions – Gifting Money, Running Out of Money, and RMDs

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Today we are going to focus on your questions. We will discuss gifting money to your children, the fear of running out of money, and required minimum distributions. No matter your financial question, we’re here to help guide you.

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Show Notes

Do you have some questions about gifting money, having enough money, and RMDs? Many people do. So let’s jump into these questions.

Charles asks: I’ve been very blessed, and I probably have more in investments than I’ll need in my life. Should I start giving money to my kids and grandkids now so they don’t have to worry about estate taxes and probate costs?

Great job. It sounds like you were a saver, and this puts you in a great spot. You have up to a certain threshold before those estate taxes are charged to your estate. Currently, the threshold is $11.7 million per person or $23.4 million per couple for federal estate taxes. 

Your state might also have an estate tax, and you should look into that and find out what their limits are if any. 

You could definitely gift money to your children and grandchildren. For example, if you’re $15,000 over the threshold, you could gift $15,000 to your children. That would lower your estate amount and will get you back within the limits. 

You can gift $15,000 per donor, per recipient. Let’s say you have three children. You could give each child $15,000 without submitting any forms. 

I’m seeing more and more clients who want to see their children and grandchildren get money while they are alive to watch them enjoy the money instead of getting it as an inheritance. 

Jamie asks: I looked forward to retirement for many years, but I can’t shake the feeling that I’m going to run out of money. Should I spend less or go back to work?

Those who don’t have a plan or a financial advisor often feel like this. You need to devise a plan so you know the answer. Retirement is a major step in life, and you need to be prepared. 

You need to have a vision for your retirement. What do you plan on doing? How much money do you need to live on? Do you plan to travel? Do you want to do more charitable giving?

Listen to the full podcast or use the timestamps below to jump to a specific section. 

Listen to the full podcast or use the timestamps below to jump to a specific section. 

[5:21] Gifts to children

[12:07 ] Running out of money

[18:17] Getting daughter started

[22:25] Required minimum distributions

Thanks for checking out this episode. We’ll talk to you again soon.

“I can‘t stress enough to everyone to have open conversations and communication with your kids when it comes to money.”

-Scott Sierens