CFP Explains 5 Changes Retirees Wish They Made At 60

[@JacqueScherrer]

Yes!!!!! I just figured out the entire ACA and “looking poor on paper” for actual “affordable” insurance earlier this year when displacements were announced at work! Most of my retirement savings is in tax advantaged accounts. Fortunately I got to keep my job and the medical insurance they provide but at 60, this was a wake up call. I’m saving more after tax now!

[@earlyretirementadvisor]

I love to hear good news like this. way to go!💪💪💪

[@JacqueScherrer]

@@earlyretirementadvisorthank you. I’m trying!

[@Peterl4290]

The big thing you missed in this video is the fact that taxes on Social Security should be illegal in the first place. Double taxation is illegal and that is exactly what is happening. SS recipients have already paid taxes on the wages when they were working and now when retirees desperately need this income the most to live the government gives them the shaft! Retirement may become a problem for Americans

[@larrypaul-cw9nk]

More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.

[@jerrycampbell-ut9yf]

I completely agree; I am in my mid 40s, approaching retirement, and have approximately over 2million dollars in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.

[@sabastinenoah]

This is exactly how i wish to get my finances coordinated ahead of retirement. Can you recommend the financial advisor you used to get ahead?

[@jerrycampbell-ut9yf]

Finding financial advisors like Annette Christine Conte who can assist you on things like investing, insurance, making sure retirement is well funded, going over tax benefits, ways to have a volatility buffer for investment risk would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.

[@sabastinenoah]

I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.

[@jjcnpa]

I am so glad I contributed to a Roth. If I retire next year at 61 I will rely on Roth money to keep my income down for Obamacare (ACA) premiums. Thank God for Obamacare.

[@gcs7817]

DT will end the ACA next year

[@SpookyEng1]

@@gcs7817in blue states only

[@RSV808]

Better check on that, I think Roth disbursements, although tax free, do count towards income with regard to the ACA.

[@keithwalters318]

Just turned 58 and you’re correct-very important to make sure you have enough after tax dollars if you decide to retire early. Provides loads of flexibility. I was a bit late to the Roth party but now funding that to the exclusion of pretax within my plan 401(k).

[@earlyretirementadvisor]

Definitely!

[@PASCALDAB]

More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.

[@DonaldStokes-p]

The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.

[@MargotRobbie-n9d]

I expect US stocks to return 10% next year and Nasdaq 15%. Well, mutual funds offer good diversification. But individual stocks could make you a fortune if you know how to go about it. Some people make upper six figures yearly from investing alone. But it's always a good idea to work with a financial advisor. It raises your chance of profit by a lot.

[@Resmith18S]

That's a good way to go. I had some difficulties two years ago when I wanted to invest some money in the digital cryptocurrencies, but I started with a CFP and investment just feels really easy since then and I've also made a lot of profit.

[@johnsteichen5239]

It is not ALWAYS advisable to use an advisor. If you do your homework you CAN save that advisor fee which can run 1-2%. I have no financial matters background when I retired at 58. I spent the time with the business channels. You can glean everything you need from them to become rather savvy. This is not rocket science. Be prudent, deciplined. I went from mutual funds to ETF’s to fixed income with a few carefully selected stocks. This has worked in spades.

[@johnsteichen5239]

$TSLA

[@davidbrooks8809]

Stick with index funds please don't try and be too smart😮😅

[@アランパーソンプロジェクト]

It’s rediculous how people save money their whole life and get punished at the end for additional health care cost 😵‍💫😵‍💫

[@rayanderson3164]

Definitely. Always planned on the 4% "rule" and now we have way over saved. We both have pension income to boot on top of two social securities. However, it has allowed a discussion on the creation of generational wealth as we will never really spend this ourselves even with early retirement this next spring at 55.

[@Amberabove]

I am currently in my 50s and This is no time to taper retirement savings. I want to max out my retirement contributions and I also have another $200k in a savings account that i want to invest in a non-retirement account. Where should I invest it now?

[@Dantursi1]

Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert

[@michaelmccafferty7341]

Great point about how social security reduces your need for a large portfolio.

[@Kristen289]

Nobody receives SS payout amounts as high as the example in the video.

[@RetrieverTrainingAlone]

Excellent! I retired 5 years ago and am using a recent inheritance for Roth Conversions to optimize tax liability and reduce our tax brackets at RMD age of 73.

[@earlyretirementadvisor]

Nice work!

[@larryjones9773]

I did the same with an inheritance ($100,000), along with a cash-out refinanced mortgage ($250,000). My Roth is up to $1.5 million, with four more years of Roth conversions to go.

[@gcs7817]

You don’t have RMD with a Roth

[@tonimartini-zo8ho]

The income examples in your health insurance segment are a bit misleading. Unless you sit on a pile of cash and don't have any stocks or bonds, pretty much every income source that early retirees depend on counts towards your MAGI. Specifically, dividends, capital gains, rental income, social security benefits (if taken at 62), etc. One option to lower health insurance costs is to build up your HSA account as much as possible before you retire and then go for the lowest plan with the highest deductible until you're old enough to qualify for Medicare. But the Federal or state-run ACA marketplaces all let you play around with the numbers to bake into your financial plan.

[@vipuldesai4556]

I think that the point is that the cost basis of an investment in a non-retirement brokerage account serves as essentially cash, so one isn’t taxed on that part of the withdrawal in this type of account. Whether one withdraws or doesn’t from this type of account, taxes on capital gains or dividends will always be paid annually. In other words, this type of account can be understood as a checking account where one would never report as income their withdrawals, but only report their gained interest. I’m not an accountant, to be clear.

[@youtubeuser1052]

@@vipuldesai4556Exactly. Suppose your investments did well and doubled in value, so $60k grew to $120k. When you withdraw $120k you can spend $120k, but you only have $60k of capital gains, the other $60k is money you already paid tax on before you invested it. For ACA purposes your income is $60k, but you're living on $120k.

[@1stoptech]

I'm so glad I served the country so I can go to the VA for emergencys USA has the highest medical bills by far in the world. its ashame

[@chrisbuckley8807]

I’m confused as to how my wife and I take advantage of the ACA credits. I’ll be 61 next month; my wife is 62. We are retired living off of savings (not our retirement acct). We have an IRA and I have a pension which I haven’t starting taking yet. This year was our first with ACA insurance (HealthFirst Silver @ $1,600/mo). Last year, our combined reportable income was under $30K and will likely be similar for 2024 reporting. How do I receive the credit back for 2024? Is there a form to fill out with my tax return? The example that you used appeared to indicate that the insurance would be lower on a month-to-month basis. So, what are we doing wrong with regard to taking advantage of the credit we’re due? Apologies if my question sounds naive - first time we’re doing this!! Thanks! CB

[@brentfeldman7475]

Not sure what you ended up doing with this, but the credit comes directly off your premium. It IS reconciled on your taxes the next year, but you “receive” the credit by paying a much lower premium. With your income, $1,600 sounds very high and like your credit was not applied. You likely elected not to save money off your premiums when asked.

[@michaelshin69]

Learned a lot. Thank you

[@mikepeterson6052]

I retired at 52 and did 2.5 years of COBRA (TX requires companies to offer an extra year) then another year of catastrophic insurance around $500 a month, not medicaid. :( It had a $10K deductible. Then I moved to Arkansas with medicaid, free if I made less than 1.33 times the poverty level. I have been living cheap with long term capital gains for another 8 years. At 59.5 years old, I could withdraw $6K from my retirement accounts AR tax free. Long term capital gain tax is way cheap, and with 100% gains, I get $10K of income on $20K of spendable money. AR only taxes 1/2 of capital gains, so only $5K of gains are AR taxed. In 2026, I will hit 65 and be able to withdraw more when medicare kicks in. I wish I had saved more in my brokerage account, especially early on, and less in my 401K!

[@dmitryg6353]

So they don’t look at assets only adjusted reportable income? For example you can have $5 million in assets but show low income to qualify for subsidies?

[@SpookyEng1]

Correct, Obama made sure his wealthy tech bro donors get subsidized healthcare care.

[@nopenope6012]

@5:20... you need to explain that this is for traditional accounts, not Roth accounts. There is a reason Roth is so much better...

[@Rick-s5d]

Do not spread the falsehood that Roth is always better. Why? Tax bracket management. If you think your highest tax bracket is higher than what you think it will be in retirement, traditional is better. If it is lower, Roth is better. Same = go with Roth because it is more flexible.

[@nopenope6012]

​@@Rick-s5d Maybe rewatch the timestamp and actually read what I said before commenting?

[@shilver101]

I am retiring in three years my wife will be working another 15 years or so. She will be adding me to her insurance. I am retiring early, and she is quite a few years younger than me.

[@adabamas]

No mention of Roth retirement account? Very weird.

[@RC-hn8sj]

Social Security will be around but there are major changes coming. There will be reductions in benefits and increases in the retirement age. Furthermore there will be a Means Test clause coming in the near future. Which means, if you have retirement assets above a certain level you will not receive social security or a very reduced benefit. I am certainly not counting on Social Security for my retirement.

[@earlyretirementadvisor]

Maybe

[@davidgolden8517]

Lots of pronouncements here which or may not be accurate. No one has a crystal ball.

[@PakZa808]

I'm 40 now, at what age should I look into consulting a financial advisor and tax expert for retirement? Looking to retire at 60

[@earlyretirementadvisor]

The sooner the better. 💪 calendly.com/earlyretirementadvice/free-retirement-assessment

[@Rick-s5d]

If you don't think it is realistic for you to educate yourself and manage this DIY, I advise you pay a flat fee financial advisor to help you set up a plan. Don't get suckered into letting an AUM financial advisor have control of your money.

[@KA-NV]

So, let’s say l use my brokerage account to generate more gains through the use of selling options, is the premium I get on each contract consider as income?

[@earlyretirementadvisor]

Yes, option premiums are considered income

[@armydudeguy]

at 60, if I live of my bank account instead of drawing from portfolio, do I have to report that as income, would that qualify for better health credit?

[@itsme-nt6yu]

No

[@earlyretirementadvisor]

Yes, living off of distributions from a savings account rather than your portfolio would most likely qualify you for a better health insurance credit. You won't experience capital gains when you take a distribution from a savings account, as cash savings have already undergone taxation. And at the end of the day, managing income that has to be recognized for taxes is how you manage health insurance tax credits.

[@RC-hn8sj]

With the ACA (aka Obamacare) on the chopping block the option of buying subsidized health insurance on the marketplace will be gone. Making it almost impossible for anyone to retire before getting access to Medicare. Assuming Medicare is also around in 10-15 years.

[@earlyretirementadvisor]

Maybe yes, maybe no.

[@turbocfn39]

It’s won’t go away. If anything it will be tweaked or changed for the better.

[@danhayes4941]

@@turbocfn39 John McCain, Dems, and Chief Justice Roberts saved us by preserving ACA thank you

[@jjcnpa]

@@turbocfn39 doubtful

[@ErikSaur-y8n]

@@danhayes4941Worst mealymouthed unconstitutional decision ever. If we're lucky we'll be able to buy catastrophic policies again instead of the ACA crap.

[@mocheen4837]

I am hoping to retire at age 60 with $3-4 million saved and a paid off $2 million dollar home. I also have a small pension and plan to take social security as early as possible. I switched to working part time from home at age 50 and have four days off per week. I stay at my job for the health benefits. I have always used the 4% rule and now wondering if I can possibly retire sooner.

[@earlyretirementadvisor]

It’s definitely worth taking a closer look, you’re probably closer to being able to retire than you think 💪💪💪

[@AZTXguy]

Yeah you’re golden! You’re probably in the top 0.1% in retirement savings and home equity, even while in your 50s. Retire now! I would!

[@Kristen289]

People like to brag

[@deerrudy]

Great video, great points to think about. As someone in the home stretch retirement find it very useful

[@earlyretirementadvisor]

Absolutely!

[@augurcybernaut4785]

I know what he’s saying is important I just need it simpler

[@davidbrooks8809]

So true 😢😮😮😊

[@miked5357]

Can you still put tax-free money into an HSA if you are on a high deductible government tax plan if you retire early? 😊😊

[@earlyretirementadvisor]

Yes! I cover HSA accounts during retirement in this video if you want the details 💪 kzbin.info/www/bejne/eJPIdJyMpLCXjJo

[@SuperSonicDude164]

This is confusing. It’s all so fast. You are putting those incomes in, at around 5:00. Why would incomes make you pay less in health insurance? The things you can incomes, are they some sort of heath savings account? You kind of glossed over that if it was said.

[@DJ-fk1ci]

What if i live off of my ROTH IRA from 60-65. Do i still need to report that

[@earlyretirementadvisor]

The custodian (financial institution where the account is held like Schwab or Fidelity) might send you a 1099R to report how much money you take out from your Roth but it won’t be taxable or negatively impact your health insurance subsidy. Hope that helps!

[@rickyaz8640]

If you don’t show enough income you’ll be kicked off ACA and forced into Medicaid

[@gcs7817]

The bottom line Money taken out of a 401k or non-Roth IRA is taxed at your ordinary income Money that comes from a taxable brokerage account can have much more favorable tax treatment. Long term capital gains and qualified dividends get taxed at a lower rate rate and possibly 0 tax if your income is under a certain amount

[@daw7773]

Good retirement subjects, I think that using something like a white board to show comparisons(e.g. taxable/retirement incomes) would really help to understand your points(e.g. medical insurance costs) in the video.

[@earlyretirementadvisor]

Unfortunately my handwriting and poor spelling would render the exercise useless. Thanks for the feedback though!

[@TheFirstRealChewy]

So most people managed to save and invest enough to retire early?

[@earlyretirementadvisor]

Of the people I work with, yes. Of the general public, no.

[@ang8479]

Your goal is to save $100K ASAP at younger age like early 40’s to mid 40’s so that $100K can invested in s&p or others premium stocks to get 10%/ yr and 20 yrs later you’ll have more than 1 million to retire on.

[@kellyfrench]

Is it me or is his sound only coming from one speaker?

[@Fred-l5l]

Thank you I thought I was having a stroke.

[@Jetfuture737]

The medical insurance plans you were selecting as examples that had "free" or "reduced" premiums were HORRIBLE plans with very little coverage/high deductibles. I'd rather work the extra 3 years, knowing that I now have a "Cadillac plan" with a $400 annual deductible, not a $17,000 one. The example plan also has a $18,400 out-of-pocket maximum in relation to my current $3,000 maximum. I guess if you are self-employed and you already pay through the nose for a plan, then early retirement makes sense.

[@earlyretirementadvisor]

Yah the plan I used was a high deductible plan. There are definitely lower deductible options. Also, depending on where you live the available plans are different. The plans where you live might be better then in UT

[@keithwalters318]

None of us can predict the future, but if you’re relatively healthy and have/ continue to make healthy lifestyle choices and you generally don’t spend anywhere near the max deductibles, the plan he shows seems reasonable. . Probably what I’ll go for if I retire early.

[@michaelmccafferty7341]

Those high deductible plans allow you to contribute to an HSA. That contribution can come out of your IRA tax free.

[@Nephilimator]

Do you see the ACA getting the axe with Trump taking office? (Great content but the autofocus on your camera going in and out is really distracting!)

[@earlyretirementadvisor]

I don’t have any special insight around ACA getting overturned but my gut says it’s not likely. Thanks for the feedback on the camera…the auto focus has been the Bain of my existence

[@Mary-tj5qx]

Too many people who vote, depend on it. He’ll go after stuff that supports the poor. Because the poor don’t vote and Republicans generally believe the poor are just lazy.

[@Kristen289]

@@Mary-tj5qxsounds like you are projecting your own beliefs and biases.

[@sj2073]

Isn’t the maximum SSA at 70yo $4,873?

[@earlyretirementadvisor]

That sounds about right

[@sj2073]

@@earlyretirementadvisorso why in your last example you have the husband drawing $5600 per month???

[@earlyretirementadvisor]

@@sj2073 Excellent question! Because that is his projected Social Security factoring in cost-of-living adjustments for 10 years. When you look at a Social Security benefit estimate, it doesn't take cost of living adjustments into account between the date of the statement and the year you take your benefit. 💪💪💪

[@GordonSux]

This is good to know..

[@g99se9]

If only returns went up in a straight line.

[@earlyretirementadvisor]

If only indeed.

[@iflyabus320]

Not trying to troll here but really who cares what happens to your money when you're dead? That's the least of my worries!

[@earlyretirementadvisor]

Ha! Yeah, your perspective is certainly a common one. I'd say wanting to leave money to family or charities is also a common perspective. Thanks for sharing, and no worries, trolls can be endearing as long as they are not too nasty 💪

[@richards144]

Guess you don’t have kids

[@iflyabus320]

@@richards144 you miss the point..... you're dead. Who cares?

[@fritzbert8395]

I care about what happens to my money when I’m dead. I got a living trust to avoid probate fees. I got ROTHs for my beneficiarie & need to inform them of the 10yr rule for inherited IRAs

[@dlzoso74]

​@richards144 MY kids are grown get their own shit like I did

[@stephenhegarty6179]

What are the differences between a Roth and Brokerage account?

[@hozhx]

You don't pay tax on the gain after you sell in Roth.

[@Seikologist]

You’re the smartest meat eating VIKING on KZbin🍖🗡️

[@earlyretirementadvisor]

💪💪💪

[@keysay9897]

Sorry President Musk is going to get rid of this.

[@dlzoso74]

1000 a month or more lmao

[@dlzoso74]

At 60 I ain't working fuck it put me in a home

[@earlyretirementadvisor]

Oh dear.