Great show fellas! Thanks for having me on!!

Let's say I am 60 years old and currently have $50k in a Roth IRA. I also have a regular IRA with $50k in it. If I do a Roth conversion on the $50k regular IRA and put it into my existing Roth account, do I have $100k that I can withdraw at any time?

For God's sakes make the distinction between "retiring" and FILING for social security. This is extremely important!

I got a 150K mortgage, bought 75k worth of Brett with it. YOLO from profit of 10k thanks a lot celia dullpher.

I used to think that previous chapters when humanity was able to burn people at the stake was a very sad reflection on humanity generally... until I saw these financial advisor bots in the comments...

"The entire world is constructed to separate you from your money."

I keep a minimum balance of 2k - emergency fund savings account of 8 month income and another savings for vacation - I savings bonds for backup

First mistake: wasting my time filling out the form. It's invasive. And the purpose is to hammer me with emails, "Take out a loan!. Take out a loan!. Take out a loan! Take out a loan! Colleges are sooo predatory. And antiquated. Let them suffer the consequences of pricing themselves out of the market.

I was looking for the answer to how the inherited IRA that I was beneficiary for would be handled if I pass away before complete distribution. In my case, my stepson passed at age 49 and I was the sole beneficiary in Jul 2020. I have been taking RMDs of about 10% per year, this amount varies, due to earnings. I am retired with high income, so there is no waiting for a lower income strategy. I am mostly trying to stay below the 24% bracket. I also have to take RMDs from my own IRA, but learned that I can use the RMD from the Inherited IRA to satisfy that requirement. My question that was almost answered in your presentation but was side tracked with the focus on stretch options. How will my beneficiary have to deal with my Inherited IRA? The obvious choices are continue with existing 10 year time requirement which started in 2020, or reset to a new 10 year schedule. Of course, I hope be around to complete the 10 year distribution with only 6 years to go. I just like to consider both options, so my beneficiary can have directions about how to handle an unusual case.

there's a problem with this new catch-up has to go into a Roth IRA rather than tax preferred 401k -- should your employer consider you a HCE and restrict the maximum 401k contribution amount to much less than the normal maximum 401k contribution amount, you could find yourself having your normal 401k contributions limited to say $9k a year and double whammy, catch-up contributions become of no value to be placed in a Roth IRA. That's right: if 2025 tax preferred limit is $24k, the Roth requirement may make some sense, but not for those HCE's that are prevented from contributing that much! At least with current rules, those HCE's would have the option to use catch-up contributions to their max and still be limited BELOW the normal max contribution for taxes being deferred. In fairness, these new rules should be revised to recognize and prevent individuals from being prevented the same opportunity to defer taxes put to the normal contribution limits -- for years I have been prevented from saving more in my 401k and forced to a much smaller limit.There's a big problem with these changes that will affect lots of people & cause the opposite of encouraging saving for retirement - not everyone making catch-up contributions are allowed to contribute to the normal maximum -- these rules could cut the tax deferred contribution rate to be cut into less than half of the regular maximum cut-off -- I.e less than $12k tax deferred ... putting aside any more for retirement into a ROTH IRA has no value for these individuals.

You keep what you have and NOT what you want !!!!!!!

Very informative! Excellent video!

Thanks

I don’t think 43.00is going to help a lot with the inflation the way it is ! Utilities, property taxes,gas ,food not saying anything breaking down in the household or car expenses.

My dad got us involved in investing in individual stocks back in the early 70's; my teens. It wasn't as much about profit but the process and journey. Taught to plan, set goals and save. We live a modest lifestyle with emphasis on family...!! We're Still enjoying the journey but reaping the rewards of the small sacrifices of our early years. The wise council of professionals early in the process kept our ship on course and dry...!!

Iron Sharpening Iron...!!

Habits are the great difference-maker! Thanks, Wise Money Show!

Enough to pay monthly bills X2....Savings should have X3 to X4. Invest the rest.

I keep a months worth of expenses and have a larger brokerage account. Money Market with was better interest.

Excellent video!!

so if let's say you win $1 million from gambling, you lose $900k. You make $100k profit. In Illinois you will be taxed 4.95% on $1 million so you have to pay $49,500 to Illinois and on top of it there is no standard deduction from IRS b/c you've itemized $900k. Yeah, don't gamble then. If nobody gambles, the lawmakers will be forced to change the laws.

Great that’s just what do I have Two months in each of my checking accounts for bills only . I have four checking account Then in savings when needed pay bills on checking accounts and some are withdrawn. From my savings I transfer to checking for bills when needed. I have a vacation account with one credit unit that pays interest I have $ 5000.00 in that account. and I still add to it.Then I have money on the side for spending once a month and yearly expenses, and personal spending. You are right about less money in savings and more in checking , in savings at the end of that month you get your interest with the two months ahead. So every month I have some spending and saving on hand also. if I chose to use when I want to spend or hold until it build up an amount that I want. Glad to hear some talk like I think I like to I enjoy myself now I have plenty of insurance for my daughter, I ‘m 77 years old CD’s are good

I am risk taker and a dividend investor, My wife and I have invested in the S&P500, both through my TSP with the government, and through fidelity in her 401-k. Cashed out 270k from the S&P and invested with a Fin-Planner, MonicaMary Strigle. Until around 3 years ago we were 100% in the s&p after over 30 years. I’m retiring at the end of this month at 62, while my wife will retire next year at 60. Under Monica, I bought Bitcoin, Ethereum, Solana, Cardano during 2022. I got 173% gains in 2023. I anticipate further gains in the upcoming months of 2024, with additional speculative assets in play, such as my recent shorting of the Chinese Index. Currently have 3.7 million in our tax deferred savings. I am putting this out there for anyone looking for how to help themselves in this time of crisis.

Enough to support me for more than 3 years Nothing you say will convince me to change

TL:DR 2:45 Get the full company match 3:29 Pay off debt and then contribute funds to retirement 5:24 Build a budget 7:35 Have an aggressive saving policy - ie save 15% of income for your whole career, max out 401K and Roth-IRA 8:45 Build a 5 factor retirement plan - Age, spending, income sources, savings, risk. Objective clarity on where you stand and what you need to do for retirement.

If you don't need access to your money right away, a CD might be a good savings tool for you in 2024 while average interest rates remain high. CD interest rates are high in 2024 .

All this is assuming that the FDIC is itself solvent.

I agree with your "Float" idea. My "Float" in the past was always the minimum balance requirement to avoid a monthly service charge. With now wanting to maximize interest return, I have a new strategy. Most checking accounts will waive the minimum balance requirement if you have a direct deposit (Payroll, SSA). This has taken the stress away of going below the minimum but managing the funds. Still have the "Float", but don't worry about fees if you go below.

Finally someone that got to the point, answered my questions, and I didn't have to sit through a lot of sponsors and junk.. very professional, loved the channel ❤

Appreciate this content.

Out of curiosity, CFP don't do taxes like accountant, right? So one would need an accountant too?

Checking accounts are not for savings, because they’re called CHECKING. If not, they’d be called SAViNGS. Duh.

I only keep what is needed to cover monthly expenses in checking. If I need more I just access my savings. I get high interest on savings and some interest on checking.

I have scheduled an aggressive goal to pay off my home mortgage by age 50 which is in 42 months . . .already making double payments and probably will have triple payments by this time next year!

Outstanding information,with world crisis,rising inflation and economic instability due to poor governance, consider digital assets as a means to attain financial freedom.

You can build a ladder of 6 6-month CD's , where every month one of those CD's finishes its term. In this situation you can decide whether to renew this CD or pull that money to pay for something, ie. your credit card bill.

Quite a bit more optimistic than some others. Some speak of 3 - 4 months before my first check.

I currently am using two $ 2,500 4 wk T Bills, 2 wks apart set for automatic renewal for my "float" . I can turn off the automatic renewal if I need to pay off an unexpected expense on my credit card.

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for....

Yes. You can easily do it and sleep well at night.

I feel the biggest hurdle is people knowing how much they are spending and plan to spend in retirement. The other 4 items are usually straight forward to determine with different software packages.

Most people believe what the person [all have different titles] at their bank says, soooo wrong! Either run the #'s yourself on multiple online retirement calculators [I used 10-12 different ones] using multiple scenarios [age. life expect, income streams ect.] or hire an independent certified financial planner someone not involved in your investments at all, spending the money on a CFP for retirement is an investment in yourself, your future your retirement. A good CFP will probably save a client enough in taxes alone to off set the price they will charge to draw up a plan. 🍁

2012 I put 2 k in tesla stock as emergency fund. Now it is worth more than my 401k? I admit I got lucky. My ex divorced me about 24 months too early.. hahaha

Get New Retirement Software and run the numbers yourself

Bond ladder fund over bond fund fail.

When you and your spouse are both on full retirement age. Can you claim spousal benefit now at age 67 then claim your own benefit at age 70? By initially claiming spousal benefit at age 67, Will you get the step up benefit (delayed retirement credit) for waiting to claim your own benefit until age 70?

Huge fan of CD's, but short-term 5.2% T-Bills may actually yield better results because they're exempt from State and local taxes.

Can you do an updated video once the final rules have been issues and the IRS starts to roll this out? I am particularly interested in the 5 years distribution period to the Roth Ira and if the work or earned income requirement will still apply. Because as it stands, I did not see that the beneficiary is required to be working in order to receive the 35k towards their Roth Ira. Are you saying otherwise?

In my mind, any risk-free return over 5% is a good deal.

THIS is the video I’ve been looking for on this topic! It took a minute (about 4 minutes) for him to get started with the good stuff…but excellent information! Practical information. Great job! Thank you.