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'average' people might see it in a year with an inheritance. That was me two years ago. It was a finanically interesting time before the money got placed in mor
by Damogran6 3y ago
'average' people might see it in a year with an inheritance. That was me two years ago. It was a finanically interesting time before the money got placed in more safe places than the checking account.
By the same token, it's not hard for a person to be worth $1M+...steady long-term investment in a 401k over the course of your career can get you there.
But it's _unavailable_ to the average person. They'll get taxed brutally if they touch it, and when managed correctly, will be divvyd out over the course of their retirement...so having 1M doesn't mean it's liquid.
- sokoloff 3y ago> 'average' people might see it in a year with an inheritance. inherited money is not taxable income to the recipient (in the US).
- boringg 3y agoActually the current rule is not taxable up to $12M but that changes with the whims of politicians and has changed quite frequently.
- sokoloff 3y agoNo, it is not income (nor taxable) to the recipient regardless of amount. There is a tax on the estate of the decedent if the estate is larger than the exclusion amount.
- boringg 3y agoI think we are saying the same thing. Not taxable until it is over $12M. The only difference is that I didn't state that it wasn't taxed as income (which it shouldn't be) - it should be taxed as inheritance if it should be taxed at all.
- sokoloff 3y agoIts unusual to start an agreement response with “actually” but glad we cleared up my misunderstanding of that phrase. In the context of “an inheritance put me in the top 1% of income”, that’s obviously wrong, which was my point.
- massinstall 3y agoReality check: 'average' people do not get inheritances of such significance.
- panopticon 3y agoYeah, the median household receives ~$12k in inheritance (average is $46k). And that's lifetime inheritance, so it's spread over several years.
- Damogran6 3y agoI haven't researched the actual numbers...but isn't that kind of sad? We may get two more, not near as sizable as the last one...and if we manage things right, my kids will get some, too. It doesn't take hardly any money at all if you start early enough. $100 a month becomes $320k at retirement. (yes, handwavey tax implications, but still, 100 a month at 7% for 44 years is $320k)