Germany: Aller Anfang ist schwer = All beginnings are hard.
For those of us who grew up in 1970s America, the response to this saying would be “Duh” (translation: Everybody knows that). There is a whole host of psychological and physiological reasons why starting something new is so difficult. Our neural pathways for a new task are not yet formed, so there is literally no mental precedent on how to “do” this thing.
Let’s see what several notables have to say about the act of beginning…
Martin Luther King Jr. said: “Take the first step in faith. You don’t have to see the whole staircase, just take the first step.”
Arthur Ashe said: “Start where you are. Use what you have. Do what you can.”
J.P. Morgan said: “The first step towards getting somewhere is to decide you’re not going to stay where you are.”
Mark Twain said: “The secret of getting ahead is getting started. The secret of getting started is breaking your complex, overwhelming tasks into small manageable tasks, and starting on the first one.”
Saint Francis of Assisi said: “Start by doing what’s necessary; then do what’s possible; and suddenly you are doing the impossible.”
Yoda said: “Do or do not. There is no try.”
Although I hesitate to follow Yoda, I say: “That nagging sensation will slowly drive you insane until you act. Act now!”
I’m guessing you have something on your list that you know you should do. It may even be something you WANT to do but are afraid you’ll fail (or is that just me??).
Yes, you might fail – there's a 50/50 chance. But there’s a 100% chance that you'll learn something from it. Do. The. Thing.
RMDs from Traditional IRAs vs. Roth IRAs (vs. Inherited IRAs, Oh My!)
Do you have a traditional IRA or Roth IRA? No? Go ahead and skip this section of the newsletter. But if the answer is yes…
Most people know what an Individual Retirement Account (IRA) is and what it's for: a vehicle for saving for retirement in a world with rapidly diminishing pensions. The Traditional IRA was first introduced in 1974 as a tax-preferred savings vehicle (key: invest money without first paying taxes on that money). The money grows over time until the individual reaches retirement age and can begin to draw on their contributions PLUS decades of earnings (with taxes paid on withdrawals).
The Roth IRA was created in 1997 as another tax-advantaged retirement account (key: pay taxes at time of investment, thereby being relieved of taxes when the day comes to begin withdrawing funds in retirement).
Required Minimum Distributions (RMDs) from Traditional IRAs begin once the account owner reaches a specified age (72 for those born by 1950; 73 for those born after 1950). The percentage amount is determined by actuarial tables that reflect your age and gender. Note that if you withdraw from Traditional IRAs before you reach the current minimum age of 59½, you will be subject to an early-withdrawal penalty. And it will sting!
I have heard seniors complain about being “forced” to take RMDs, to which my 50-something mind always thinks, “And this is a problem??” However, these RMDs can, in fact, move the taxpayer into a higher tax bracket. You have options, of course: donate your RMD directly to a charitable institution, and the tax burden disappears.
The important thing to note is this: Once 73, you MUST take this RMD (or donate it) or face significant penalties. We’re talking 25% of that year’s RMD amount! And yes, other executors have told me that this rule was enforced when they failed to take RMDs as part of their deceased loved one’s estate.
With Inherited IRAs, the opposite is true: you cannot defer taking an RMD. You must exhaust the balance of the inherited IRA within ten years of the original account owner’s death (for deaths occurring after 2019). This does not apply to IRAs inherited prior to the 2019 rule change; those beneficiaries are permitted to extend distributions over the course of their lives. RMDs from an Inherited IRA (due to the shorter 10-year window) can often throw the taxpayer into a higher tax bracket.
A thought: Sure, it’s January. But I’m guessing you have some holiday bills that you can’t cover? Perhaps a trip you would love to take in 2025? Taking your RMD early in the year may be a win-win.
As always, consult with your tax preparer or financial advisor before making a large financial decision. But I recommend that you don’t wait until December 31st and wonder why you can’t reach anyone on the 800 number of your IRA holder.
Ethiopian and Eritrean cuisine
Welcome to a new segment I call “Best Thing I Ever Ate.” Today’s article focuses not on a single restaurant but on a whole ethnicity’s cuisine!
I was introduced to Ethiopian cuisine while in college (there’s a big expat community of Ethiopians in Washington, DC), and it blew me away from the first experience. Since those days, Ethiopia and Eritrea have split into separate nations; however, they share the same delicious dishes.
The key spice blend used in their cooking is called berbere – I would classify it as more flavorful than hot. Even cabbage tastes phenomenal in an Ethiopian or Eritrean restaurant!
The meal is served in a communal fashion, with the platter covered in their famous sour fermented flatbread known as injera. If you’ve ordered meat, chicken, or a hardboiled egg, that dish will be emptied in the center of the platter, while an assortment of fantastic veggies and legumes will be emptied in a circle around the main dish.
In addition to the injera covering the platter (which everyone at the table eats off), you also receive a basket of injera in smaller, “napkin” size.
Simply tear off some injera and scoop up food from the platter! It’s a blast and delicious and so good that, when you run out of injera napkins, you then move on to ripping portions of the injera from the platter (mmm... where the food flavors have seeped in).
Not a low-calorie meal but oh, so satisfying! Great fun with a bunch of family or friends as well.
Eritrean and Ethiopian communities can be found in many U.S. cities, but San Diego, DC, New York City, and Los Angeles have the greatest number of restaurants.
If you are in the greater NYC area like I am, I can recommend Mesob (in Montclair, NJ)...
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Also highly rated are Abyssinia (in Harlem)...
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and Addey Ababa (in Washington Heights)...
You'll want to check out Google or Yelp to find your closest restaurant and make a reservation today!
Come back next month for a new installment of “Best Thing I Ever Ate.”
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