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What if you continue to make a high income in retirement?

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  • #31
    Keep in mind that after you retire and you directly own investment real estate you can be classified as "Active" real estate professional and get all of the associated tax benefits. You may end up paying a lot less in taxes even with a high income. If you are 59.5 now and you want to move $ out of IRAs you can take a distribution to buy property outside of the IRA and use bonus cost segregation rules to delay/avoid tax on the distribution. You must do this before the law starts to sunset in 2022. Use the real estate tax laws to your benefit.


    • #32
      Originally posted by SiR99 View Post

      Hi everyone,

      I had a question and I tried to search but didn't find what I was looking for.

      What if you invest in multifamily real estate complexes or some other investment and you continue to make ~$400k/year even after you have retired.

      In this scenario, does it still make sense to save money in retirement accounts throughout your career? The tax advantage argument doesn't seem to apply here because you will still get taxed at a high bracket even in retirement, so why stash that money away instead of spending it?

      What would the advantage be in this situation?

      Yes. But do Roth contributions and conversions and rejoice in the fact that you will likely leave a great deal of tax-free money to your heirs.
      Helping those who wear the white coat get a fair shake on Wall Street since 2011


      • #33
        Making a high income in retirement is exactly the sort of problem we all wish we had!