myogawa
myogawa t1_iufcoeh wrote
Reply to I will receive a stipend of $150 a month for the rest of my life. How should I handle it? by [deleted]
You can run a spreadsheet to give you some projections. Assuming an investment with a 3% return (conservative, especially now), you would have $1,887 at the end of year 1, and $9,679 at the end of year 5. The income at the end of year 5 would still only be under $25 per month.
Taking the income destroys the "power of compounding."
The idea of living off the income works for larger figures. If you had a $1 million investment, it could generate $40,000 per year in income at 4%, the commonly-accepted figure for annual distributions. To tell you the truth, people who can set aside $1 million for this purpose won't be impressed with $40,000 per year as income.
myogawa t1_iubdurk wrote
Reply to Asked Edward Jones to rollover my IRA to Charles Schwab, and they took out federal income tax, even though I made it perfectly clear it's a rollover, not a disbursal. by MaximumRecursion
A note for everyone: always ask the destination custodian to take care of doing it via a trustee-to-trustee transfer, to avoid this kind of problem.
myogawa t1_iuk6s0l wrote
Reply to How do I select trustworthy charities to donate a windfall I do not want? by Most-Star-7094
Many cities have a community foundation who have people who research this kind of thing for a living.