Retirement Money

I sold my company about a year ago and had to retired. The problem is the buyer is paying off the loan fast, which is good. However they are killing me tax wise. They are paying off the loan at 30,000 monthly for the next ten months. My house is paid for and I have very few deductions. I am on SS and have about 100,000 in savings and IRA. Any idea on saving some of the money so Uncle Sam dosen't get half?

If you're looking to your business buyout proceeds to fund your retirement but you could use some tax deductions up front, you might look at the charitable remainder trust as an option.

The money is put into a trust, which will pay out its annual income to you for your lifetime, then pay the proceeds to the charity you have designated after your death. The contribution to the trust will generate a tax deduction in the year the trust is established based on the amount projected to eventually go to the charity.

The typical annual payout percentage is about 5%. If you put $200,000 into the trust, the annual payout would be about $10,000 for your lifetime. The first-year charitable deduction would depend on the amount contributed and your age, primarily. A good estate planning attorney can advise you on the technicalities of a charitable remainder trust.

Regards,