Don't Use the Wrong Accounts First in Retirement!

[@bukki07]

I’d be retiring/working much less in 5 years and curious to know best how people split their pay, how much of it goes into savings, spendings or investments? I earn around $150k per year, but nothing to show for it yet.

[@Castro-worldbravest]

you should consider financial planning, never can tell what the future holds

[@M.Morgan]

Money advice is subjective, what works for you may not work for me, but it's always better to plan. I'm quite lucky exposed to personal finance at an early age, started job 19, bought first home 28, got laid-off work 36 amid covid-outbreak, and at once I consulted a financial planner to handle growing my finance. As of today, I'm only 25% short of my $1m goal after subsequent investments.

[@sirgentguy]

@@M.Morgan bravo! i'm 34, inherited money from a childless relative, traveled overseas and got married to a girl almost my age, only issue is how to preserve and grow my reserve in this shaky economy, could you be kind enough with your advisor info pls?

[@M.Morgan]

Can't reveal much, the advisor that guides me is 'Katherine Nance Dietz' a renowned figure in her industry with over two decades of experience. I'd suggest researching her further on the internet, she has a noticeable profile.

[@chadgriffith1969]

@@M.Morgan thank you for putting this out, just copied and pasted her full name on my browser, spotted her site easily and was able to send my message across, she seems impeccable..

[@rickbackous1041]

Waiting until 70 increases your retirement success rate to 99%. Of course, it does. You're only going to live like 2 more years. I used to be subscribed to this channel and watched it pretty religiously, but I found I don't really agree with anything said. I unsubscribed a long time ago but for some reason he popped up again. My strategy. Take SS as soon as possible. You can't leave your SS check to your kids. Annuities next. if you have them. The longer you take them the better chance you have of winning that game. Taxable IRA next. To keep your RMD from getting out of hand when you turn 72. Individual account next because you can balance out gains and losses and adjust what you take accordingly to reduce taxes. Roth last if you need any money to balance the year out, again to reduce taxes. That's just me.

[@situated4]

Thanks. This is helpful.

[@DavidMercen-bv6ls]

Excellent videos. Great job and great explanations. Superb.

[@sergiosantana4658]

$5400(social security)+$1000.00(pension)=6.400 monthly x12 months =$76.800 Annually with a 0% fed tax ,not the 20% mentioned@2:28

[@micheleyoungblood]

How do you get a 0% federal tax on $76,800?

[@sergiosantana4658]

@@micheleyoungblood Because only $6400 of social security is subject to taxation . So if you add the 12k of pension with the $6400 of social security for a total of $18400 of taxable income ,which will offset by the 27k of standard deduction. Hence a 0% tax bill

[@chrisnettell2548]

With the amount of money this example shows, I don't think they would be paying 20% tax.

[@sergiosantana4658]

100% If you are bringing in $6400 monthly from which $5400 is social security you will have a 0% fed tax bill , (mfj)

[@jessefletcher9116]

on the taxable investments I understand that there's a way to avoid cap gains tax altogether, for MFJ in 2023 if taxable income is below $89,250 then cap gains are taxed at 0%.

[@dancarroll927]

How in the world does $8000 per month result in a 20% effective tax rate?

[@cato451]

Need to find a balance between all accounts.

[@Marl-hj8hh]

Love this. Thank you.

[@DY-Hak1]

It all depends. When we pass, our investment accounts will get a step up basis when our kids inherit them. So if our goal is to pass our investment accounts to our kids, it's probably best to use the traditional IRA first.

[@micheleyoungblood]

IRAs don't get a step up basis. The brokerage account will get a step up basis

[@everydayadventure66]

What about early retirees and the consideration of health insurance subsidies? Does that change the sequence of withdrawal strategy?

[@davidcummings5711]

Too confusing to follow. Need some graphs, charts, or other visuals. As it is this is just a verbal mishmash. 😕

[@situated4]

The whole system is rigged to be as confusing as possible to benefit accountants, tax preparers, politicians and tax attorneys. It's absolutely ridiculous and depressing.

[@rocqitmon]

I rewound four times because I'm used to the typical vlogs that give chart analysis. If you're talking real estate or other investing, it's less complex. Tax decisions based on multiple income streams needs charts or spreadsheets.

[@livingontheedge8680]

Burning a $50k brokerage account before a $900k tax deferred account DOES NOT net them $500k+ over their retirement.

[@daw7773]

It depends on the rate of return and dividends earned on the 401/403B accounts. Retire at 65 use 5 yrs of brokerage accounts, social security and pension amount. Delay withdrawing 401/403 until 70 and the $900,000 accounts gain average 8% per year compounded with dividends. Assuming dividends 2-3% added each year compounded/reinvest dividends. The 401/403 accounts could earn over $500,000 by age 70.

[@livingontheedge8680]

@@daw7773 In the example given, the brokerage account had a total balance of $50k, essentialy 1 year of funds before exhaustion of said brokerage account.

[@resterAnonyme]

Does paying taxes from an IRA before age 59 1/2 during a Roth Conversion cause the 10% penalty as opposed to paying the taxes from a different source?

[@sharky6128]

IT WOULD HAVE BEEN MORE HELPFULL TO LIST THE SEQUENCE OF ACCOUNT WITHDRAWALS AND THE SUCCESS PERCENTAGES SO THAT YOU COULD VISUALLY COMPARE THEM AT THE END. 🤔

[@Wayneman50]

What if you have no heirs?