Investments and withdrawals
Terry,
I’m 75, married with an Edward Jones account totaling $190 k . One is a TOD, joint tenants . One is a traditional IRA, and one SEP account. We are not adding to it , it just grows as the market grows. We can borrow on it , but the rates are still high. My question is if we take money out is that considered income and we would have to pay taxes on it? It’s nice looking at it but frustrating not being able to use it and of course being nervous as to the markets volatility. Suggestions?
Terry Says
Whoa — you can’t “borrow” on an investment account. You CAN sell some of the stocks or mutual funds and withdraw money! You can spend that money or put it in the bank. But since it’s not a retirement account, there would be capital gains taxes (very low at current rates) on any sale of stock at a profit. Don’t let that deter you.
As for your IRA or SEP accounts, you should ALREADY be withdrawing — because that had to start at age 73, with Required Minimum Distributions. Please tell me your broker told you about that!!
I think you need a fee-only FIDUCIARY advisor to look into your entire financial situation — not only the investments inside these accounts. Remember, brokers typically only get paid when you buy and sell, or based on the amount of money you have with them. They are NOT financial planners.
Please use this link to learn how to find a planner you cantrust — just to do a review of your entire situation.
