Where Should You Pull Funds from First in Retirement?

✅ SCHEDULE A FREE RETIREMENT ASSESSMENT ✅ www.foundryfinancial.org/reti...
How you choose to withdraw your retirement funds can significantly affect the taxes you pay and how long your savings last. Should I pull from first -- my Traditional IRA, ROTH IRA or Taxable Account?
In this video, we look at a realize case study to help make this important decision - and we even give you free access to the same tool financial advisors use. This information is particularly useful for those nearing retirement or who have just retired, offering crucial tips to maximize your retirement savings.
*RIGHTCAPITAL LINK*: foundryfinancial.typeform.com...
NOTE -- I ask a couple of questions, but feel free to scroll past the questions -- not required for the link.
Free Retirement Assessment // foundryfinancial.org/get-started
Private Facebook Group // / retirementforum
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ABOUT ME
I’ve always been passionate about personal finance, investing, real estate, and helping people find the freedom to live their life with purpose. But when my dad died in 2015, I tried to help my Mom find an advisor to sort out her finances. Instead of a helping hand, I found an industry of financial advisors dominated by glorified salespeople working on commission - pushing products that were not in my mother’s best interest. Or advisors with minimums that shut-out all but the ultra wealthy. Disappointed with the options, I took matters into my own hands and launched Foundry Financial, a wealth management firm with transparent pricing that specializes in helping provide clarity around money - so you have the confidence to make smart decisions.My goal is to help a million people retire without worry!
📅 THE BASICS OF RETIREMENT PLANNING
Retirement planning has several steps, with the end goal of having enough money to quit working and do whatever you want. Our goal is to help people master retirement and retire without worry.
Step 1: Know when to start retirement planning. When should you start retirement planning? The earlier you start planning, the more time your money has to grow. That said, it’s never too late to start retirement planning. Even if you haven’t so much as considered retirement, don’t feel like your ship has sailed. Every dollar you can save now will be much appreciated later. Strategically investing could mean you won't be playing catch-up for long.
Step 2: Figure out how much money you need to retire, The amount of money you need to retire is a function of your current income and expenses, and how you think those expenses will change in retirement.
Step 3: Prioritize your financial goals. Retirement is probably not your only savings goal. Lots of people have financial goals they feel are more pressing, such as paying down credit card or student loan debt or building up an emergency fund.Generally, you should aim to save for retirement at the same time you're building your emergency fund - especially if you have an employer retirement plan that matches any portion of your contributions.
Step 4: Choose the best retirement plan for youA cornerstone of retirement planning is determining not only how much to save, but also asset allocation. It can make a massive difference in your retirement plan.
Step 5: Select your retirement investments. Retirement accounts provide access to a range of investments, including stocks, bonds and mutual funds. Determining the right mix of investments depends on how long you have until you need the money and how comfortable you are with risk. It’s often helpful to talk with an adviser to discover the right mix of stocks and bonds.
❣ SPONSORED No, this video was not sponsored.
⚠️ "DISCLAIMER:⚠️This is not financial or investment advice. This Channel is meant for EDUCATIONAL AND ENTERTAINMENT PURPOSE only. None of this is meant to be construed as investment advice, it's for entertainment purposes only. #retirementplanning #retirement #passiveincome

[@foundryfinancial]

What is your strategy for deciding what account to pull from?

[@garyolshan4177]

Hey Kevin If I have 2 million in my Trust account at RBC can I withdraw around 100 K a year since at my age 70 i have around another 15 or some more years since life expectancy is 85?

[@foundryfinancial]

That doesn’t account for inflation. And also expected life expectancy and actual life expectancy aren’t always the same.

[@peacefulruler1]

May I ask where that calculator is?

[@briankelly7632]

I retired last June. I have a Rollover IRA, a Roth IRA and a taxable brokerage account. I've been living off of my taxable brokerage account, which I expect to do until I collect Social Security. I'm also doing Roth conversions this year, filling up the 10% and 12% tax brackets. I've done about $30,000 in conversions so far this year and will wait to see what room I might have left at the end of the year. I'd like to avoid pushing my LTCG into the 15% bracket. We shall see.

[@hownwen]

Moving to a cheaper country. Will live off cash for 4 yrs. Then we'll get social security and pull from taxable account first

[@pengily_emi]

We no longer have a mortgage, my husband is retired and wants to travel to Thailand. We don’t splurge, but inflation has hit hard, and I want to relocate while DCA-ing into his TTSA, which is less than $400k. I'm cautious with rising costs and have discouraged the idea due to current insecurities.

[@ParkerRoyce-ni5pw]

Roughly how much do you have in the RRSP? A financial advisor can help grow and budget your money for travel. My spouse and I always delegate our excesses.

[@Stephenrogzyyy]

Hiring a financial advisor means getting help with cash flow, investments, risk management, estate planning, and legacy.

[@Stevierockie]

An advisor can help you visualize how your RRSP fits into your overall plan and determine the best investment strategy.

[@pengily_emi]

The ones I find are young and charge 1%, which I’m not comfortable with.

[@ParkerRoyce-ni5pw]

Our FA emphasizes creating "worth-living assets" like memories, pursuing interests, and family trips, while growing finances.

[@jtixtlan]

You sound very knowledgeable and strategic and this seems like sound advice. You also seem out of touch in terms of being relatable. The “typical” family does not have $1M saved for retirement. The “average” retiree does not collect $4K per month. Try cutting those numbers in half, and then some.

[@azwileetoyote]

Subscribed 🙂 I've downloaded and played with the tool (so thanks for that) and compared it to the Fidelity retirement calculator I've used the past 5 years or so. The tax (and Roth conversion) information in this tool is non-existent in the Fidelity tool ( my guess is on purpose) but their income and expense details are so much more comprehensive allowing you to add or change particular items and amounts on a year by year basis. Looks like I'll be using both tools now until I find the 'one tool to rule them all' (haha, sorry about the poor dad joke). I've been early retired (55) coming up on two years and am still trying to navigate the nuances of budgeting and optimization until my wife retires around the end of the year. I've watched about 3 or 4 of your video's and realize you're definitely in the top 3 of the dozen or so I've watched or seen over the years. Keep up the great content.

[@Ellis1127]

I think if you are earning 200k a year in retirement and you are concerned about your Medicare premiums increasing $50-100 a month, you have issues.

[@greglaflame7759]

Need to be careful of triggering IRMAA. If you and your spouse are on Medicare and you trigger the next level, it's per person.

[@itsm3th3b33]

That is why you don't have 200k a year.

[@OldManDave1960]

Problems. Not issues.

[@annamartino5681]

It's not just by $50 it could be $750 per month for a couple difference, and it's $103,000 Income for singles to hit these IRMAA Monthly Surcharges on top of paying $5,000 per month for Medications for after heart surgery and loosing possibility for subsidies for these medications. Until you know it all, first learn from real people who are retired what these MEDICARE Insurance "HUGE ISSUES" with paying for anything from $0 for anything above Dental Cleanings and then finding doctors who accept your specific Medicare Plans (oh, wait including when you are in the hospital and the doctors there are not covered and the hospital is on your miny trip to your next door friend but in Out of Network for your Medicare Plan friends). Only when you start getting the need for Dentist, Doctors and Hospital on Medicare and you would need expensive medications (oh, wait and your Medicare Plan doesn't have it in formulary and you must pay $5000 to live another day after heart surgery for the rest of your life), only then you would understand what Medicare Extra Surcharges of $400-$750 per couple per month on top of your Uncovered by your Medicare Plan Medications of $5000 per month on top of your Uncovered by Medicare Plan Heart Surgery of $250,000 (and they would give you a little discount as you were out of Network), then you can come to appreciation of Planning to avoid IRMAA or anything else expensive, as you would need these money to cover things your Medicare Plan designed to Prior Authorizations to help you see some delays in months procedures or surgery which is a little bit too late to do as Medicare Plan did everything to not authorize such treatment. 😂

[@rnish2958]

My company charged me ~$1500 for medical insurance. Retired in 2018. For less care, Medicare is ~$8500.

[@valeriet5581]

This is invaluable info! Hope you do hourly consults. This is the missing piece to our retirement plan, along with protentional ROTH conversion.

[@seankrishnan6402]

Thank you and appreciate the link.

[@Stocks1986]

Thanks for the great videos and the link!

[@joeysocks5718]

Glad I found you’re channel, thanks

[@Kharris92130]

I love Right Capital! It helped me stop worrying we would outlive our portfolio!

[@jon34153]

This was amazing, very informative on such an important topic. Thank you Kevin!

[@danharvey61]

Thanks Kevin, great advice!

[@roguecoytoe]

Great retirement content, This is the precise guidance I've been searching for; the last piece of the puzzle for me. Thanks!

[@foundryfinancial]

Honestly, this just scratches the surface - lots of variables. But, it helps you start down the right rabbit hole!

[@jhors7777]

Thank you for posting this helpful video

[@AndEyeOop]

This was a really good explanation. Thanks!

[@AmysSewingRoom]

Thanks for the great video. I use Right Capital too!

[@susannac3894]

It is very complicated in retirement planning especially most of us aren't good in math. I am gonna try to the software you provide here and hope I can get some advice out of it. Thanks for sharing this tool.

[@scottpetersen2835]

Thank you, very helpful

[@SunvalleyMetaphysical]

Started working with the Right Capitol program, getting familiar with it by changing the inputs (as I dont know all the finance lingo). After several hours I have it matching fairly closely to my Excel workbook. Going to start working with adding Roth Conversions for the next two years and see what happens with my very low taxes..... It is a powerful tool, thanks for sharing.

[@foundryfinancial]

Of course. Glad it was helpful

[@jefftyau9660]

@@foundryfinancial I clicked on the links but didn't get or see how to download the program. I did get an email, but no program. How do I get the program?

[@CNArea51]

Very Informative Thanks

[@investingmusician]

Great content, thank you Kevin!

[@foundryfinancial]

Thank you!

[@doraklein6951]

Thank you for sharing this info☀️☀️☀️

[@michaeleames8225]

There sems to be a focus here on minimizing the taxes rather than maximizing the after- tax wealth. The latter is to be preferred. It becomes rather complicated when considering the fact that wealth is inheritable and for some accounts you must consider your life expectancy and the tax rates of those inheriting your wealth.

[@stephelast9161]

He does mention the tax adjusted ending portfolio a few times in passing.

[@IAmTheEggMan111]

Looking forward to the Roth conversion topic

[@johnwallace5892]

Thanks!!! Can't wait to see the Roth & RMD info

[@foundryfinancial]

Working on it now. Actually, it’ll end up being part two of this scenario. I’ll stick with Phil and Claire’s situation and how you can model it out on the same page as the withdrawal.

[@Will67267]

I retired at 55 so I have access to my 403B without the 10# penalty. I take 50% from 403B and 50% from my brokerage account.. the last account I would touch is my Roth IRA

[@FoxxStar77]

This is why I’m focused on maximizing my ROTH accounts over a 401k.

[@Wayneman50]

I think you missed the boat on someone who retires early. I retired at 61 1/2. I have 3 1/2 yrs until i can go on medicare. Healthcare is the number 1 thing i will not skimp on. Going through the ACA plans, the subsidies are tied to your gross income, this also includes your spouse. In order to get a decent policy under $500/month we had to cap our income at 40 grand. That means no roth conversions, no ira withdrawls. I planned this a few years ahead and stock piled enough cash to pay bills for 3 1/2 years. So, sometimes one does not really have a choice. Btw, the policy without subsidies was $1325/month. I also waited to retire until my wife hit 65 and went on medicare. She has a cancer history which is a whole other ball of wax.

[@johnemanuele8695]

My spouse and I decided to retire at 62. We knew we would incur an income monthly loss of $1000. We also knew we had to bridge our health insurance for 3 years. The ACA ( Obama Care) came to the rescue and so did Trump ( bless his heart). We had IRA's totally $600,000. Are income at retirement decreased from $110,000 to $45,000. We were not married at the time we retired. The ACA premium is based on individual income. Our premiums for the ACA was $75 monthly for me and $50 monthly for my partner. Then Trump was elected and his first act was eliminating the tax subsidy. By doing so, another subsidy kicked in..resulting in my premium falling to $50 monthly and my partner's to $25. Total coverage with a max out of pocket of $1700. Bless Trump's little heart. Lol Anyway ..65 arrived ..partner and I celebrated our 25th anniversary by joining hands in marriage. We were met with Medicare..after contributing to Medicare since age of 18..Medicare premium was $165 monthly plus another $35 monthly for supplemental coverage. And out of pocket cost soared to $4000. EACH. Long story short..our $600,000 is invested in a 6% government agency bond (.not callable for 6 months) we have always lived within our means. Home is mortgage free and any credit card debt to choose to carry is always with a zero interest card. . We will have to begin RMD at age 72. The withdraw will simply be transferred to our joint non IRA account. One thing I noticed...when we withdrew $15 000 to cover cost of a new home ..our tax return for that year was zero..for both state and fed.

[@johnemanuele8695]

I truly hope your wife remains in remission and you both have many blissful years enjoying your hard earned retirement

[@CT-lo9ot]

Great content! Very informative.

[@foundryfinancial]

Thanks!

[@user-py7wp6nw9h]

Good stuff!

[@foundryfinancial]

Thanks!

[@briankelly7632]

Kevin - your videos are excellent; well explained and full of common sense. Thanks so much.

[@foundryfinancial]

Thanks, Brian! I really appreciate it.

[@reverendblkgrape1]

Great video.

[@2ndSprings]

Phil & Claire are my favorite Dunphy's. They sound like a really modern family. ;-)

[@wwz1011]

Been using taxable accounts since I retired early. This will continue until I hit the RMD age. Then RMDs will exceed living expenses. Roths will likely never be touched. Will claim SS at 70. So between SS, small pension, and RMD, I am fine.

[@RobC1999]

Knowing that your RMD will far exceed your living expenses seems like a reason to convert more before you need to take the RMDs

[@JimMunchbach]

Hi Kevin @foundryfinancial I appreciate your content. I teach Personal Finance at the Bauer College of Business at University of Houston and was hoping to get your permission to use your videos in my course. I have been teaching since 2012 and one of my favorite lessons is the 3 Bucket Strategy, its really just and introduction to Tax-Advantaged Investing. Your video goes deeper than mine and I wanted to share your videos with my advanced students and also those who are now well into their careers. keep up the great work, my friend!

[@c7042]

I don't have a gap. I only spend 30% of my fixed income and invest 70% but I also get interest income from bank CDs and RMDs that I use QCDs to negate.. I don't pay taxes Fed, State, and Property Taxes. I use my negative gap to make Roth conversions so I'm rapidly knocking the RMDs down. Over the next 5 years, my QCDs will be about the same as I give to charity anyway and I' will about halved my rollover IRA. After 5 years, I'll recalculate. The only downside is I have to do my taxes for 2024 as an estimate to manage my future tax liability (recheck Dec1) and also file my taxes for 2023 too. I do my own taxes.

[@tncoltsfan]

Why wouldn't you draw from your IRA first and reduce that account and in turn reduce the RMD required when you hit 73, then use your taxable, RMD's and SS to fund your retirement. It seems like anything you can do to reduce your RMD's will help later in retirement. I'd like to see those numbers.

[@user-jr5gc8gc3x]

I’m interested in the software you mentioned. Thanks

[@paulab984]

We pull from tax deferred accounts until we hit the spot where the 2nd level of IRRMA kicks in and then we pull the rest from ROTHs since that extra 4% the 2nd level of IRRMA cost essentially gives us 4% more on the ROTH. Not pulling a lot from the ROTH, but some.

[@oteu3422]

You said to take from your taxable account first, then from your tax deferred account. But if you’re 73 don’t you have to start withdrawing?

[@OurRetireEarlyJourney]

Great stuff!

[@foundryfinancial]

Thanks!

[@TexasGirl1633]

Great information!! New subscriber!

[@foundryfinancial]

Thanks, Elizabeth!

[@cindyhenry1410]

In the example shown....the couple draws from a taxable LTG account....there are 2 other columns that show their qualified acct & tax free act gaining wealth.....what are those gains based on (average 5% stock market??) gains in any account are never guaranteed! Please comment on these accounts and their value....TYFS!

[@AndyTempleman-ot6lu]

Thanks for your video. I learned and am now a new subscriber.

[@nashorn8485]

Thank you

[@foundryfinancial]

You're welcome

[@RafaelSantander-zc9dd]

I have dreamed of making more than $200,000 in income all my life and would not care getting hit with high tax rate but that dream never comes true, now that I have a chance in retirement to make that dream comes true without even working that is already a pretty good deal. I will just sleep through this tax issues and enjoy life then when I have time and I may do something about it with the information provided here, thank you Kevin

[@tomatodo8334]

Great video. Signed up for RightCapital, but many features are missing. No Retirement or Tax tabs.

[@foundryfinancial]

It takes 24 hours after signing up.

[@biggstile]

Makes sense.

[@delayedgratification581]

Kevin, does your software cover California tax for retirement planning? Thanks!

[@stephanebogen5411]

Great video and user friendly planner. I have a question about the Estimated terminal tax rate setting (0 to 50%) when running distribution scenarios on the planner. Keeping Roth conversion off for now (not filling up the tax bracket), selecting Taxable, tax-differed, Tax free I get "more" versus pro-rata as expected. However, I don't understand why have Estimated terminal tax rate setting at 0% gives the highest tax adjusted ending portfolio value and 50% the worst tax adjusted ending portfolio value. My understanding was that this would be the tax rate heirs will be subjected to for the left over balance. So 50% would mean that the ending balance is really high (they have lots of tax to pay) so why does this correlate with the worst tax adjusted ending portfolio value? II might not thinking this right so if someone has an answer, please help. How do you select the optimal "Estimated terminal tax rate" when you run scenarios (like 22% in the video Kevin went through) ? tax adjusted ending portfolio

[@franksenkel2715]

if you retire early you will need healthcare and the cap gains impact your aca magi income and hence your subsidy. fidelity offers a tax managed account the washes the gains out of the portfolio while tracking an index...helpful for income planning with regard to aca magi...healthcare cost is a huge factor when retiring early....

[@foundryfinancial]

It’s called direct indexing. Lots of companies now offer it. And you’re right about healthcare costs being expensive.

[@talltodd]

I target and track my income in order to get the subsidy. Little extra planning but not too much.

[@gauravipal5691]

You are missing out the fact that the dividends and interest from taxable account is taxable as regular income. That should be factored in while determining how much Roth conversion is possible.

[@Darwinq84]

At around minute 12:45, in reality the tax brackets are adjusted yearly which allows retirees to take higher distributions without moving to a higher tax bracket. For example, a couple in 2023 filing jointly can withdraw up to $89,450 in taxable income (401k for example) and remain in the 12% tax rate whereas in 2024 they can take up to $94,300 (almost a 6% increase). I guess if I were retired today, I would strategically give myself and spouse a raise up to the IRS adjusted bracket only to avoid moving to the third tax bracket- 22%!

[@PH-dm8ew]

have small 34000 pension, with almost all the rest in tax deferred accounts. Retired at 60, not much i try reduces future tax rates.

[@KayKay0314]

Every time I lose or quit a full-time job, I always roll the money from the 401k to the appropriate brokerage account. I'm planning on pulling from tax-deferred first and only pulling when market conditions are good. The money would either go into a taxable brokerage account and/or a high-yield savings account to make safe interest. I would pull enough to cover 3 years worth of expenses. This should nearly eliminate sequence of returns risk (I hope). Then when that money runs out, I finally pull from the Roth.

[@swright5690]

You roll it over to an Ira? Or do you mean withdraw and pay tax and then but in brokerage acct?

[@cindyhenry1410]

Don’t you pay IRS 10% penalty if you withdraw from a qualified (tax deferred) acct before age 59 & 1/2??

[@MrSean03839]

​@@cindyhenry1410Yes, if you withdraw before being eligible you are fined and taxed at existing rates. Rule of 55 can be used to withdraw earlier though, but it has catches. I think the original comment meant he was rolling over employer tax deferred accounts when he changed jobs.

[@chrisforker7487]

Something else to consider is inherited IRAs. Obviously not many people have them, but it can ruin a good plan, especially if you’re not Medicare age and using ACA.

[@foundryfinancial]

Great point!

[@jefftyau9660]

I went to your links and website and downloaded some items, answered the questions and don't see the link to the spreadsheet. How do I get that??? Thanks!!

[@stanleyfilipiak7758]

I have a question when you are talking about the retirement sources are you referencing net dollars (post tax?

[@dwaynemauk566]

Maybe I heard wrong, but around 7:10, I thought it was mentioned that if you put $20k into a 401k or 403b, it reduces your taxes by $20k. I believe it was meant to say that if you earn $70K a year, and you put $20K into your 401k or 403b, that your federal taxable wages are reduced by $20K and the fed taxes are calculated on the $50K. FICA I don't believe is affected by this. I could be wrong on what I heard.

[@foundryfinancial]

Yeah, that’s what I meant to say. And FICA is not impacted. Although that’s only applicable on a certain amount of income.

[@dtr579]

How about if your IRA is 4X bigger than your 401K balance, would you still pull from 401K last or move Ira to last money to touch.

[@madmeh2929]

Aren’t Capital Gains tax free if you are under the minimum income limit for the 15% capital gains tax bracket? If true this would favor pulling from your stocks first and let your trad and Roth IRAs cook until you need them.

[@rickyricardo9917]

Thank you Kevin, very informative video. Would this withdrawal strategy apply when there’s a gap between retirement and Medicare ?

[@foundryfinancial]

Most likely, but if you’re optimizing for ACA subsidies it can be trickier.

[@chiburu_uchinanchu]

wow i had no idea that a taxable acct could be passed onto beneficiaries tax free due to step up basis.

[@esquivelmail]

I cannot find the tool either. Can you please send the link to the tool ? Thank you!

[@jimscott1607]

While I agree that using the funds from a taxable, investment account first is a good strategy, what about RMD's? Should I start taking distributions from my IRA/401k to reduce the balance before I am required to take distributions?

[@timothyfossa15]

Where do after tax regular ira accounts fall in the withdrawal matrix?

[@m42666]

When I leave a job I have the 401K company rollover my 401k to a Traditional IRA. IMPORTANT I had NO CHECKS sent to me, it is the 401k company that sent the check to the brokerage company. I never saw or touched the money transfer for tax reasons. The 401k company charges yearly fees in addition to the mutual fund fees. Good brokerages only charge mutual fund fees. The company you worked for *MIGHT* have paid your 401k fees, but they probably won't pay after you leave the company. The only drawback is that I cannot be sued for any money in my 401k, but I can be sued for brokerage funds. So I don't do anything to get sued & have adequate Home Liability, Automobike and additional Umbrella Insurance.

[@tylercampbell6058]

Everyone says that 401k is taxed like regular W2 income but you already paid FICA taxes so it’s not quite as bad as regular paychecks get taxed while working. Also, I may have missed it but you can have about $90k per year of long term capital gains as a couple before those are taxed. -update: you mentioned that at 12:27. 👍

[@foundryfinancial]

I have a whole video on it. kzbin.info/www/bejne/r6HQeKiQZcxnp5Ysi=ZHpRIrehiPHMWgoD

[@cindyhenry1410]

You are also no longer paying Medicare funds as you would in a paycheck....

[@MrSean03839]

The easy way to think about 401k taxes is just apply what your federal income tax bracket will be. If you are in the 12% bracket just deduct the standard deduction for single or married and tax the remaining amount you will withdraw from you 401k. Example: For 2023 standard deduction for single is $13,850 and $27,770 for married filing jointly. So assuming a $50k 401k withdrawal and filing jointly would be $50k - 27.7k, leaving $22.3k taxable. Now look up what tax bracket $22.3k falls under, which for 2023 is the 12% bracket. Tax would be $2,676 in 2023 on a $50k 401k withdrawal with no other tax deductions considered. So a withdrawal of $50k from your 401k in 2023 would net you $47,324 after federal taxes and no state income tax. Also, the current tax brackets and deductions are all set to sunset the end of 2025 and return to what they were previously. The only portion of the Trump tax cuts which will remain are the corporate/wealthy tax cut portions. For my example above that will mean the 12% bracket will be reverting to the 15% bracket with far less standard deductions and other deductions available. Or to put it simply, unless Congress extends the current tax laws taxes will be rising for individuals starting in 2026.

[@Snipely]

If your roth is set up to provide cash yields, then doesn't pulling that out make sense as part of your income mix? Does the analysis assume every account increases in value equally? It seems that depending on the value of your equities and how your income is generated from all the accounts, it could flip the analysis entirely on its head.

[@sbromagem]

Thank for the informative video. I signed up for RightCapital a few days ago and I couldn’t find the scenarios you mentioned. Can you share how to access it?

[@foundryfinancial]

Should be on now.

[@user-py7wp6nw9h]

do a freelancer jobs video

[@rayking8944]

Thanks for the video! Great information. where is the link to the software so i can try some what ifs??

[@foundryfinancial]

In the description

[@staceystovall7583]

Fantastic video. I'm approaching 61 and am at the stage of wanting to figure this out. Are you a fee only financial advisor? I would love to schedule a call.

[@kevind8752]

Start by access SS.gov to determine your SS monthly benefit then determine how much you need monthly from investment income.

[@m444ss]

very complicated ==> why we need Congress to pass HR 25 7 get rid of the (punitive) income tax

[@CapnD505]

Please explain exactly how we download your software. thank you.

[@sct4040]

The ACA is based on your gross income, so 🤦🏻‍♀️ I had to pay for it completely without subsidies. 🤷🏻‍♀️ What can you do? I decided I can afford it if I don’t buy anything except for groceries and decided to sell some stuff. So I went ahead and paid for it. Healthcare is too expensive to go without insurance.

[@lorenwillis425]

Don't know how their income can be so high, and to have saved so much at only age 55, but have so little in SS benefits. I have had very few years where I earned about that. My age 70 benefit is calculated at a third more than Phil.

[@SHerzlich]

Very interesting and informative video. My only conflict with the advice is the idea of being able to take $100,000 of money out of a taxable account without income or capital gain "assuming that you have no other income". That's a big assumption for someone with a +1 million taxable portfolio as in the example. It's hard to envision a well diversified portfolio of that size that isn't throwing off a meaningful amount of dividends and capital gains (especially if it's mutual fund based) income each year.

[@foundryfinancial]

Well that’s why I try to never use mutual funds and I am very careful about dividends. But yes, for an account that’s not optimized - that’s an issue.

[@naveenjoshi4030]

Is it okay to withdraw from Roth IRA to pay off high interest credit card debt because retirement?

[@bigdaddycraze]

Very nice video. When you say that a proposed strategy is 500k more... that's 500k more in taxes over that couple's lifetime? And it's 500k more than what?

[@foundryfinancial]

500k more than a pro-rata strategy - pulling from all accounts equally. And thank you!

[@colinschott5994]

I think there was a big SS income clarification needed. If Phil has filed SS he would get $3200 per month, his wife would only get $1,600 not her $2,800. Unless she files before Phil. She might want to file at 62 since her reduced income would be greater than $1,600. When Phil files her amount would be reduce to half of his $3200.

[@hainesjw]

I got to the part of the video that said “click the link, and set up an account”. But I couldn’t find the link anywhere… how do I get the login set up to try out scenarios with the software?

[@ItsEverythingElse]

A Roth conversion would affect your tax bracket and hence your SS too, just as withdrawing from tax deferred accounts would, right?

[@foundryfinancial]

Yes, it can. I have a video on conversions coming out soon.

[@virginiamoss7045]

Well, I guess this video is not for me. I have so little saved after losing $50,000 of it a few years ago, like everyone else did, that I have no tax issues. So, does it matter whether I draw from my traditional or SEP IRAs or my investment accounts first?

[@leroifou2442]

Thank you for this clear presentation. I would like to access the tax planning software you referred to and to then input some data related to my investment portfolio. I came to the Free Assessment, but could not access any software. Can you please send it or post it clearly for me? I already hit the subscribe button above. Thanks.

[@foundryfinancial]

RIGHTCAPITAL LINK: foundryfinancial.typeform.com/rightcapital

[@DATo_DATonian]

The ROTH is the last thing you should draw from in my opinion. The money you take out is tax free, yes, BUT once it is out of the account it can no longer be returned, and that money was _earning_ money (presumably) which would have been tax free.

[@MchlV-es7qf]

Good point. Thank you

[@Donkeyearsa]

Question on ROTH conversions. If I saved up a years income to live off of where I an not making any taxable income then I do the ROTH conversion I could convert the maximum amount from a traditional retirment account to a ROTH account with the least taxes. Is that correct?

[@foundryfinancial]

I’m not sure what you mean by maximum, but yes you can convert at a lower tax bracket - depending on the amount you converted.

[@KeithStedman]

Thanks for the video. Who has visibility for the data that I put in the RightCapital tool? Is the data protected from anyone is seeing?

[@foundryfinancial]

Our firm can see, but it’s protected other than that. You’re also welcome to create a dummy name.

[@PeterCox-xi2vy]

Where is the software I can put my numbers to try ?

[@kevingervais7678]

Great Video and planning advice! I'm not willing to give access to my accounts (I can't get past your privacy policy). Is there any utility to the RightCapital software if I don't provide access to my accounts? In other words can I use the software by entering just my account balances and play "what ifs' without giving my account numbers, usernames and passwords?

[@foundryfinancial]

You can use the manual mode and enter approximate info. Not perfect, but it’s helpful.

[@bruceeigsti5274]

Don't matter I have all tax free funds no taxes fir me forever starting next year feels so good

[@foundryfinancial]

Congrats!

[@Osborneloto]

Where can I find someone who can run this analysis for me?

[@cindyhenry1410]

What is your advice for someone with no heirs to be concerned with? I have an annuity, a qualified (trad. IRA) acct, a Roth IRA and a Roth 401k (which up until about a year ago was a regular 401k). My biggest concerns are when to take SS (will it become insolvent by the time I reach FRA?? Or will cuts be implemented by then?) and if I retire before age 65....what do I do about health ins??

[@foundryfinancial]

Hey Cindy! Lots of great questions you’ve posted. A bit too in-depth for KZbin comments. I think it be helpful for you to hire an advisor, even if just for a plan.

[@cindyhenry1410]

@@foundryfinancial can you at least comment on the SS question? Or do you have a previous video about that?

[@learninglessons7428]

good informative video. I would like to try the software program but is it safe and secure?

[@foundryfinancial]

It’s very safe, but you can also just use a fake name and approx info. But, it’s very secure.

[@learninglessons7428]

Ok, reviewing your software... can you explain what Fill Up The Tax Bracket & Est. Terminal Tax Rate and correct inputs should be for these two items?@@foundryfinancial

[@deannichols7829]

On a taxable account, have you not already paid the taxes before putting the money in? Therefore, your non-taxable accounts should be much bigger because taxes are deferred, right? If you were really going to compare the taxes being paid on non-taxable accounts and taxable accounts, would you not have to take into account and discuss the tax paid prior to putting the money in, the taxes you have paid on dividends, interest, and capital gains, and then compare that amount to the amount you are paying in income tax when taking the money out of a non-taxable account like an IRA? I did not see you address this. Am I missing something?

[@zee_928]

What does "Pro rata" mean. when comparing to "Taxable, tax deferred, tax free"

[@zee_928]

NVM. Missed it watching "2X speed"... Pro rata means equal amount from each bucket

[@cutehumor]

I'm pulling 401k pretax first at age 55 with IRS rule of 55 to reduce RMDs and to have taxable income for Obamacare subsidies. My RMD age is 75 years old. I don't ever plan to spend a dime out of my Roth IRA, that's for my kid's inheritance, and that dumb secure act with 10 years of forced withdrawals.

[@coastalhillbilly3419]

Awsome, life is too short to retire in the 60s if it can be avoided. Retired at 50 several years ago, was going to take social security at 62 but factoring in RMDs at 75, probably use pretax accounts and delay social security as well. The more I learn, the more I earn 😂

[@daveharness70]

I'm doing the same thing in a year. Spending it down to near zero, then living off some cash and real estate after that. Then Roth IRA if necessary. But the Roth is an "in case SHTF" fund and inheritance/gifting.

[@cindyhenry1410]

Roth IRA goes to heirs tax free....their are no RMDs on it.....

[@Thegeeman68]

I'm not gifting anything unless I happen to have anything left.

[@jhansen3000]

@@cindyhenry1410 Secure Act requires RMDs for inherited Roths.

[@1timby]

The hole I see is if you don't keep a rainy day fund when you need it then you may be pulling funds out at a loss when the market is down.

[@foundryfinancial]

Of course, this one video is not meant to be a financial plan.

[@chemquests]

The short way to reference the scenario you described is “sequence of returns risk”.

[@bryan_witha_whyy]

It’s too easy. At all time highs increase your cash buffer to the point it’ll see you through without withdrawals.

[@1timby]

@@bryan_witha_whyy so, how do you increase your buffer without selling off your shares? Where dividends come even if the market is up or down. Also, if you plan right and buy those shares that have good dividend growth your money will grow over time. My 3 uncles worked blue-collar jobs. All retired rich with good blue chip stocks that paid good dividends. They lived off the dividends way into retirement.

[@Bill-vk7fh]

I signed up for Right Capital and can only see the Dashboard (Balance Sheet, Liquidity and Budget) and Profile options, so it's useless. Can the other portions be enabled as you stated in this video ?

[@foundryfinancial]

As I say in the note, I have to enable it and it takes me about 24 hours to get to it. Refresh after a bit and it should show. Email me if it doesn’t.

[@Bill-vk7fh]

@@foundryfinancialI originally thought you meant access to setting up the account. I have access to the other features. Thanks. How do you model ACA tax subsidies ?

[@foundryfinancial]

@Bill-vk7fh manually. :(

[@jefft9729]

Why is a NONDEDUCTIBLE IRA treated differently than a Roth IRA when money is withdrawn? Both types of IRAs offer no tax advantage when money is put in.