Whenever people start to talk about IRAs and estate planning, you can almost see the numbness come over an audience. I can understand why confronting your own mortality comes well behind the name of the latest contestant to be kicked off Dancing with the Stars on the interest scale.
But one aspect of IRAs is genuinely exciting, because it permits you to take a humdrum, modest IRA and turn it into a huge windfall for your heirs. It’s very easy to achieve this goal. Just leave an IRA to a beneficiary of your choice.
This advice comes from Dan Solin, author of The Smartest Retirement Book You’ll Ever Read. He cites an example of a 45 year-old man who receives a $50,000 IRA from his mother. By following solid advice, the man was able to stretch those withdrawals into a staggering $303,113 over the course of 38.8 years.
For more information on inherited withdrawals, including Dan Solin's advice on how to take full advantage of their benefits, check out his full blog at http://retirement.equifax.com/2010/12/maximize-your-ira-benefits-with.html.
Ilyce Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com, The Equifax Personal Finance Blog and CBS Moneywatch She is Chief Content Strategist at RealtyJoin.com, a community for real estate investor