3535: [Part 2] Multi-Generational Tax Minimization by Jeremy of Go Curry Cracker on Generational Tax Planning

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🗓️ 23 April 2026

⏱️ 10 minutes

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Summary

Discover all of the podcasts in our network, search for specific episodes, get the Optimal Living Daily workbook, and learn more at: OLDPodcast.com. Episode 3535: Jeremy explores how long-term tax strategies can shape not just your retirement, but your child’s financial future, showing how compounding, RMDs, and account structure could turn a modest IRA into a multi-million-dollar inheritance. He highlights how proactive Roth conversions at low tax rates today can shield future generations from higher taxes later. The takeaway: thoughtful, flexible planning now can dramatically improve after-tax wealth across decades. Read along with the original article(s) here: https://www.gocurrycracker.com/multi-generational-tax-minimization/ Quotes to ponder: "The simplest way to become rich is to be born to the right parents." "Mathematically speaking, choosing to pay 10% now on a Roth conversion is equivalent to paying 10% on a larger withdrawal 60 years from now (associative property of multiplication.)" "It’s hard to take action when things are a little vague." Episode references: The Economist: https://www.economist.com/ Learn more about your ad choices. Visit megaphone.fm/adchoices

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0:24.0	This is Optimal Finance Daily. Multigenerational tax minimization, part two, by Jeremy of go
0:30.8	currycracker.com. Multi-generational tax minimization, Go Curry cracker junior edition. I'm unlikely to predict our
0:40.9	own taxes over the coming decades, let alone juniors over the next seven. But we can give it a shot.
0:47.4	Here's a simple enough thought experiment. I'll be 45 this year. Junior just turned four.
0:53.9	If I earmark $200,000 in my IRA as Junior's inheritance,
0:59.0	invested for future real growth of 7% a year, then it will be worth about a million dollars when
1:04.7	I hit required minimum distribution age in 25 years or so. My life expectancy is somewhere around 85 years old. Even with
1:13.8	RMDs, the original 200 grand will grow to about 1.3 million by the time I reach age 85.
1:21.3	If I pay tax on those RMDs, if any, out of my own pocket and let the RMD funds continue to
1:27.4	grow 7% in a taxable account,
1:30.1	then they will grow to an additional $1.3 million.
1:34.0	Junior's total inheritance, $2.6 million around age 40, $1.3 million in a traditional IRA,
1:40.9	and $1.3 million in stocks in a taxable account. The economist was right about this
1:46.6	one. The simplest way to become rich is to be born to the right parents. Based on the 4% rule,
1:53.3	this could sustain a cost of living of $104,000 a year. Dividends of 2% would pay $26,000 a year. The RMD the following year would be about
2:04.3	$36,000 or 2.58%. Now what would his tax situation look like, assuming the tax code of the future
2:12.5	resembles that of today? If he were married with no other income, spending 4%, withdrawing additional funds from
2:20.3	an IRA, taxes would be about $6,500 with the top marginal rate of 12%. If he instead withdrew
	...

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