Your IRA Is Not a Trophy

Jose Alvarez, CFP®, MBA
2 minutes ago
8 min read

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What Should You Do with an IRA You Do Not Need?

You worked hard, you saved faithfully, and now your pension and Social Security cover your lifestyle. The IRA sits there, rising and falling with the market, but not really providing any real value to your life.

Is doing nothing the best move? Sometimes it can be fine but, often, it's not the most purposeful choice. What I would consider is simple: give that account a role that reflects your values, your family priorities, and your goals for the years you care most about.

Why This Feels Hard for Smart Savers

Most retirees spent decades cutting away parts of their income and devoting it to saving and investing. Shifting to a season of drawing from savings and investments can feel wrong. It can feel like a violation of what you've accumulated over your lifetime... it can even feel like failure.

That's bullshit... I don't see it that way.

The point of saving was always freedom, options, and impact. Letting an account sit untouched forever can be a choice, but it can also be inertia in disguise. What I would consider is replacing the fear of spending down with a plan for using well. Using well is not waste, in fact, planning for intentionally using well is called alignment.

Begin With Some Grounding Questions

Before tactics, I think we all need to consider three basic questions:

What would make the next five to ten years meaningfully better for you and your family
What do you want the money to accomplish after you are gone
What would bring your life more meaning - using it with alignment or letting it continue to accumulate?

Real answers, not perfect answers, will sort your IRA into buckets of purpose. Some of that purpose may be enjoyment, some may be family support, some may be generosity, or some may be legacy design.

Once those buckets exist, the account is no longer just a number on a page. Instead, it becomes an engine that funds a life you'll recognize when looking at pictures, a life you'll be proud of, and create family memories that no one can ever take away.

Joy Today, On Purpose

If travel lights you up, focus on the parts that change the experience. A seat that lets you arrive rested. A room that gives you quiet and a view you will still talk about next year. One dinner, one show, or one excursion that turns a good trip into a favorite memory.

If the outdoors is your lane, choose gear that gets used. A road bike that fits your body. A kayak that tracks well and keeps you on the water. Garden tools that make time outside feel like therapy, not work.

The goal is not to buy toys that gather dust but, rather, to fund memories and energy. Start small so you can measure how it feels to spend that money. If a small upgrade added real value, repeat it with confidence. If it felt like fluff, skip it and redirect the dollars to a different purpose.

Spending money can be a trial-and-error process that can lead to immeasurable value later.

A Living Inheritance You Can See

Many parents and grandparents prefer to help while they can witness the impact. I would consider small, steady gifts tied to real needs.

Clearing a lingering high interest balance your adult child cannot seem to kill gives them oxygen and momentum
Seeding a 529 for a grandchild and making the contribution part of a birthday tradition builds a story that the child will remember
Covering a critical home repair reduces stress without undermining responsibility
Funding a certification or licensure that boosts a career can change a decade

The dollar amounts can be modest. The relief can be huge. The point is not to rescue capable adults from every hard thing. The point is to turn money into momentum and to do it in a way that respects work and accountability. If you pursue this path, document gifts cleanly, keep the pattern consistent, and set expectations early.

Boundaries and generosity can live together.

Charitable Impact That Is Simple to Run

If generosity is central to your values, build a habit instead of writing a once in a decade check. Choose a short list of organizations that match your convictions. Set a yearly target and automate support so the habit does the heavy lifting. Share the "why" with your family and invite them into the story.

Decide in advance what success looks like.

You might want to see a certain number of local students attend a camp each summer, or a food pantry that never has to turn a family away, or a sanctuary that expands its work by one more acre each year.

When you can see outcomes, you stay engaged, and the giving feels less like paperwork and more like purpose. If you like to roll up your sleeves, add a volunteer day each quarter. Money plus time is a powerful mix that builds meaning beyond the transfer itself.

Future Flexibility and Clean Estate Design

If you truly do not need the IRA for lifestyle, consider moves that simplify tomorrow. Review primary and contingent beneficiaries so the right people and charities inherit the right accounts.

If you hold multiple accounts, decide which ones are best suited for heirs with different needs. Some heirs may need structure. Some may need flexibility. You can plan for both. In years when your income is lower, consider measured conversions to a Roth account. The goal is not to chase a perfect tax win. The goal is to reduce future tax friction, diversify your tax buckets, and give heirs cleaner options.

Keep the steps moderate and matched to your broader plan, not one-off stunts that create surprise bills. Future you will appreciate the simplicity. Your executor will, too.

Guardrails That Make This Comfortable

A plan beats vibes. Create simple guardrails that keep the approach comfortable and repeatable. Set a legacy target for heirs or charities that feels right for your values and your balance sheet. Set a yearly budget for joy and giving that will be funded by the IRA. Make the budget real rather than aspirational so you can stick to it during quiet markets and noisy markets.

Automate monthly or quarterly transfers from the IRA into a separate spending account that exists for these purposes only. Automation eliminates second guessing and reduces the chance that good ideas die in the inbox. Review once a year to confirm that spending stayed inside the lines, that gifts landed well, and that the legacy target still fits. Adjust for markets, health, and priorities.

With guardrails in place, you can enjoy the money without guilt, and you will also know when to tap the brakes because the plan will tell you.

Keeping Taxes Human Without Letting Taxes Be the Boss

I have never seen a family regret matching withdrawals to goals. I have seen families regret letting the calendar dictate every decision.

Coordinate gifts, charitable giving, and any conversions with your tax bracket and Medicare thresholds. Align timing so support arrives when it helps most. Stage family gifts so they build habits, not dependency. Fit any conversion into a year when the impact is manageable. Keep an eye on brackets and state rules, but do not let the tax tail wag the dog.

The aim is fewer surprises and more control, not a gold star for squeezing every last dollar from the code. Clean execution with clear intent usually beats a complex maneuver that nobody wants to repeat.

Required Minimums Still Matter

Even if you do not need the cash flow now, required distributions will begin in your early seventies. Plan ahead so those dollars do not show up as an afterthought. Tie them to your purpose buckets in advance. Use them to fund the joy and giving budget. Use them to support a living inheritance rhythm. Use them to meet charitable goals in a way that feels clean and consistent. When distributions are part of the script, they stop feeling like a nuisance and start feeling like another tool that pushes your plan forward.

If You Still Feel Stuck, Try a Pilot

Some clients still feel a mental block even with buckets and guardrails. In that case, run a pilot.

Move a modest amount from the IRA into checking this quarter and give the dollars a single job. Book a better flight that lets you arrive without back pain. Host a weekend with the grandkids and cover the fun. Make a donation that buys something tangible your favorite nonprofit can point to with pride.

Afterward, ask a simple question. Did that feel like waste, or did that feel like life. Your honest answer will point the way. If it felt like life, keep the pilot running for another quarter and then formalize it in next year’s plan. If it felt flat, redirect to a different bucket and test again until you find the mix that fits who you are.

When Leaving It Alone Is the True Goal

Some readers decide that they truly want the account untouched for life. That is a valid choice. If that is your goal, still be intentional.

Confirm beneficiaries and contingents
Keep records tidy and stored in a place a trusted person can access
Make sure someone knows where the accounts are and how to reach your advisor
Consider a short letter of wishes that gives heirs context for the gift, along with encouragement and any practical guidance you want to pass along.

When you choose purposefully to preserve, you remove the quiet doubt that can creep in later.

Common Traps to Avoid

Do not turn every decision into a tax contest that drains your energy. Wise planning matters, but perfectionism creates stress and often backfires. Avoid one time splurges that do not match who you are the rest of the year. It is fine to do one grand trip if it fits your story. It is better when that trip reflects what you value most. Do not rely on silent gifting that later creates resentment among family members who discover it after the fact. If fairness matters, define fairness in your family, write it down, and follow it. Do not let the market alone determine your mood. Balance matters, but purpose matters more, and purpose is under your control.

Bottom Line

IRAs are not trophies. They are tools. If your account is just sitting there, I would consider giving it a clear role that serves your values. Spend with intent where it adds real life. Support the people you love in ways that build momentum. Strengthen the causes you believe in with habits, not one offs. Simplify the future so heirs inherit with fewer surprises. Start small, automate where you can, review yearly, and let the plan evolve as your life evolves. The win is not a perfect spreadsheet. The win is a life that looks like you, funded by the savings you worked hard to build.

Jose Alvarez, CFP^®, MBA

Founding Advisor

Harvest Horizon Wealth Strategies

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The information presented in this blog is the opinion of the author and does not reflect the views of any other person or entity unless specified. The author may hold positions in any securities discussed in this blog. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. Images included in this blog are created by artificial intelligence. Any resemblance to any existing persons, past or present, is purely coincidental. The information provided is for informational, entertainment, and educational purposes and should not be construed as advice. Advisory services are offered through Harvest Horizon Wealth Strategies LLC, an investment adviser registered with the state of Wisconsin.