@DreamDividend@jumpingleaves1 This is much riskier than it sounds. You’re trading away growth (capped upside) for yield, while keeping all the downside. Over a 50-year horizon, this strategy can lead to major principal erosion, not safety.
@ScrantonCapitol@The_Money_Buddy Dangerous advice. That high yield caps your growth. You take on full downside during a crash, but your upside is capped in a rally. Your principal will wither away. If making 30%/yr selling options were safe or possible, everyone would do it.
@KurtSupeCPA The biggest sticking point that a lot of people have is deciding who the trustee will be. Professional trustees are very expensive and often have high minimums.
@darrelltalksfi 2/The panic is also circularly flawed. Retirees have always held the most wealth in modern history and will very likely continue to do so. Even if a cohort were broke, they represent the ultimate voting block—they’d just force policy expansions.
@darrelltalksfi 1/ Limited perspective because it tracks accounts, not people. It misses multi-job accounts, spousal assets, home/2nd home equity, crypto, taxable brokerages, inheritances, defined pensions, and Social Security. The Fed household net worth tables are far more informative.
@chriswithans If they don't need the cash now a few possible ways to reduce the taxes:
1. Move in: Establish residency for 2 years to get the $250k tax exclusion.
2. 1031 Exchange: Roll the gains into a rental property to defer tax.
3. Hold until death: Give their OWN heirs a fresh step-up.
@chriswithans If they’re Joint Tenants, the Will is irrelevant. The survivor owns the house—and the tax bill—outright. Sharing with siblings is a choice, not a legal requirement. If they do, they can deduct the massive tax hit first.
@realEstateTrent@JBMason The forced partnership issue can easily be resolved by an estate plan that instructs the executor or trustee to sell for fair market value within a reasonable period of time. And then distribute the proceeds.