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URL:  http://boards.fool.com/everyone-thinks-they-have-to-spend-the-rmd-they-30125077.aspx

Subject:  Re: Taxes & RMD's Date:  6/30/2012  9:03 AM
Author:  JeanDavid Number:  116365 of 121095

everyone thinks they have to spend the RMD, they don't, they can put it in a after tax saving account.

The tax law does not require me to spend my RMD, but the economic law does require me to do so. My expenses keep going up.

If I do not pay my property tax, I lose my house. When I bought this house, property tax was $800 a year. Now it is over $6000 a year. My income has not gone up anywhere this much. The original owner paid $10,000 to buy the house. In a few more years, the property tax will probably be that much EVERY YEAR!

If I do not pay medical insurance premiums, I must forgo medical care. Just when I had to pay for a stroke, heart attack, and other hospital-treated conditions that I never had to pay in the past. And this is in spite of being covered by so-called health insurance. Insurance for the insurance industry. Insurance for the pharmaceutical industry. Insurance for the hospitals. Deductables for me. Copays for me. Doctors who will not take my insurance because it is not enough.

If I do not pay for food, I do not eat.

If I do not pay my income taxes, the state and the feds will probably just get court orders and grab it from my savings.

I was going to defer collecting my social security until well after I was 65. But by then, even though my home mortgage was paid off, my monthly (actually quarterly) tax payments had risen to the point I needed my social security to pay my property tax (not all of my S.S., but quite a bit of it). Gasoline has gone up. Home maintenance mounts up: New roof: $8000. New windows: $12,000. New heating system and removal of old in-ground oil tank: About $12,000. Now these expenses are not all needed every year, but each year it is something, and my defined benefit pension has not been increased since about 1992. But my expenses have.

I really worry about my friends even more than me. I am the richest of all the people I know, and am in constant fear that inflation will get me.
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