The Scotch Stipend

I enjoy a glass of Scotch—especially a Speyside.  My favorite is Glenlivit 18 year old.

The problem with Scotch whisky (not whiskey) is the price tag.  Here in Montana, thanks partially to steep taxes on alcohol, you are going to plunk down more than $100.00 before that kid with the long face at the liquor store will slide you a bottle to take home.

Back in the late 1980’s, my late wife and I created a simple investment scheme.  Part of that plan saw each of us setting aside $50.00 every month.  We faithfully set aside this money for many years.  Eventually, we converted the fund to individual Roth IRAs.  Following the passing of my wife, I rolled the IRAs into a single fund.

Recently, I got to thinking about this Roth IRA.  For the last few years, the IRA has consistently provided between $200.00 and $350.00 of income (which rolled back into the IRA) every month.  “What if,” I wondered, “some of the tax-free income rolled out of the IRA and into my pocket instead?”

This week I made my move.  I created a permanent Scotch stipend with this IRA.  Each month from here forth, $200.00 will automatically be deposited in my personal bank account from the Roth IRA.  At such a rate, the IRA should still grow a little, but I will be provided a permanent source of money for a bottle of Glenlivet 18 and a bottle of Balvenie Doublewood 12.

Now I simply need to figure out how to cover my living expenses.

--Mitchell Hegman