Is this a valid/legal Retirement Strategy?

Question

Means testing for social security is imminent. The age for full benefits can only be raised so high. Being responsible now by funding IRA's will backfire later when I will not be paid as much as someone who didn't save. Not saving is not an option. Can I begin transferring money to my children via gift, with the understanding they will return it later? I realize it would technically be income, however they could pay for my home, car, or my whatever; without actually transferring cash.

Answer 1

If you are really positive it would be returned .
You could be in for a rude awakening there .

Your IRA argument did not compute . . .
You get out of the IRA , what you put in plus growth .
(Will the kids return with growth ?)

And SS levels are not significant enough to make a difference unless you are talking 20 years out .

How long until you retire ?

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Answer 2

I doubt seriously you would see means testing for SS. Any new laws would have to get through Congress and a President and SS is about the most hotbutton issue you could find. Geezers love it, why I'll never understand, but they do and they will return to WWII status to keep it. SS can always be saved by a very small increase in SS taxes or a decrease in benefits. I just wish we could do away with the whole thing.

But you should talk to a real financial advisor or do some research on the internet. I do believe there is a provision that allows you to make a ONE TIME tax free GIFT to your children (or maybe whoever), but that's a gift not something they return. I think you are worried about something you don't need to be, but that's just me.

Answer 3

don't get your drift -- are you trying to say that you feel that the people who have more money in Ira's will draw less money from ss than folks who have no savings??? if so i can not see that happing === i would rather have control of my money in a ira than let my children handle my affairs!!!