Rusty Stalder: “Is there anyway for my brother and me to contribute to a tax deferred retirement fund on behalf of my parents that will not reduce the amount they can contribute to their own IRA’s?”
You could buy them a variable annuity, which grows tax-deferred, but I think that’s a rotten idea. Buy them, instead, a few shares of stock each year, or of an index fund, and just let them grow. (If they should shrink first, that’s OK, too. As long as you keep adding new money each year, any price declines just allow you to buy more shares “on sale.”)
Because most stocks don’t pay much by way of dividends these days (and neither do index funds), much of the growth will be tax-deferred without suffering any of the annuities’ costs and fees. And when the time comes to begin selling, 20 or 30 years from now, the gains, most likely, will be lightly taxed — versus fully-taxed withdrawals from an annuity.
Annuities are an expensive way to convert lightly-taxed long-term capital gains into heavily taxed ordinary income.
Your folks have good sons.
Quote of the Day
Being politically correct means always having to say you're sorry.~a T-shirt
Request email delivery
- Feb 19:
Power Walking With Chris Christie
- Feb 18:
The Inspiration YOU Need?
- Feb 15:
NYC. UK. Canada.
- Feb 14:
If Republican Officials Go To Prison . . .
- Feb 13:
The National Butterfly Center Is Taking A Stand
- Feb 12:
Home-Schooled For Christ. And Pence.
- Feb 11:
Russian TV Thanks The GOP (And Don’t Miss Bill Maher)
- Feb 9:
The Perfect Virginia Solution
- Feb 8:
The Case For A Better Wealth Tax
- Feb 7:
200 Times More Interest On Your Money . . .
- Feb 19: