10 Sources of TAX- FREE Retirement Cash-Flow

[@HolySchmidt]

Check out one of our most popular videos - *4 Major Social Security Updates for 2024: What You Must Know* -> kzbin.info/www/bejne/sHOmnnRrjd1qi5Isi=UKlzbdkAe1kuk20O

[@michaelbean4626]

😅

[@rdbeaz]

Live in Washington shop in oregon no income tax no sales tax

[@johncu7007]

Hey 👋Schmidt, I believe you may have forgotten one VERY important Tax Free option. That is, investing in either Tax-Free Bond Mutual Funds (or ETF’s), or straight “Muni” [Municipal] Bonds - the Interest being Tax FREE (on the Federal - and even on the “State” side, if these are invested in Muni’s that are State issued, where you’re located (also called, “Double-Tax-Free”)). Yes, the interest on Muni’s is not as much (or high) as other standard Bonds, but the Double-Tax-Free benefit is still a viable option. 👍

[@ryanmonti4903]

I retired early last year at 56 and moved to the Philippines. Bonus Strategy: When you get a bonus, you are taxed at about 34%. For years I had all bonuses received go directly to my 401K, this cut the taxes down to about 10%. Then my employer would match the funds by 6% on my 401K. This effectively reduced my bonus losses from 34% to 4%. I love your videos and thought I'd share this with you. Sincerely, Ryan Monti

[@HolySchmidt]

Thank you Ryan

[@Steve_in_NJ]

I had A LOT of money in a ROTH IRA until my company "laid me off" at 60 years old. Then the COVID-19 pandemic hit 6 months later (after I exhausted my State Unemployment). As I wasn't currently working in 2020, I wasn't eligible for the Federal Relief so I had to live off my ROTH for 2 years, until I almost exhausted it and then became eligible for Social Security at 62. Now, my ROTH is down to $0 and I'm taking a small monthly withdrawal from my IRA to supplement my Social Security income. P.S. I'm not 65 yet, so Medicare isn't an option, so I am paying a very reduced rate for Health Insurance run by my State of NJ (State run "Obamacare"). Without that, I'd be homeless as I have some medical issues, which is why I cannot work any longer.

[@JustinCase-em6ql]

Steve, do yourslf a favor, and get the he double hockey sticks out of New Jersey. Just ribbing you. Good luck to you, going forward.

[@Abraham.Lincoln22]

In my area people with “medical issues” often times bag groceries at a supermarket. You might want to look into it to supplement your income. The work is easy & part-time.

[@wellman867]

Hi I’m in a similar boat after the unexpected death of my husband , I hope it gets better soon

[@BadPhD777]

Think of an HSA as an account to use when you're retired. Keep track of your medical expenses, max out your HSA, don't use it until you're retired, and reimburse yourself for all those medical expenses tax free!

[@marciagagnon2487]

❤good thought! If I had been aware, instead of Obama's unafordable health care I would have 36,000 in my health account😂

[@halletts1171]

This one was confusing, retiring December 30th, I think I am average middle class. Geoff, with all the changes to Medicare, Social Security and all the taxes, how in the world do us older (70) follow this? Hiring an financial advisor is out of the question, the internet is B.S., and this generation at 65 to70 are lost because the tax/S.S/Medicare has become a thieves market for the elderly . Your advice is sound, but many of us were not clued into Roth. At this point in my life I might be living in a tent in 5 years with the tax rate increases from the debt spending...

[@brianmeek5236]

Another reason to eliminate the income tax and go with a transaction tax for everyone, every transaction

[@roberts.1400]

What about a reverse mortgage or home equity ??

[@stevenj9970]

Many thx, AGAIN. I didn't see the video, you pointed too, regarding not paying taxes on S.S.......do you have a link? Many thanks!!

[@legiontheatregroup]

I could not see the video he pointed to either. I suspect this is a browser thing (I’m watching on my phone using Safari) as I have this same issue all the time on KZbin. Presenters are always saying “if you like this video you’ll love that one” and I never see anything displayed. I’ve long wondered about it!

[@DorathyJoy]

Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determines a lot of things, my parents both spent same number of years in the medical profession, my mom was investing through a financial advisor while my dad through the 401k. On retirement, my mom retired with about $5million, while my dad retired with roughly $3.8million.

[@RaymondKeen.]

It’s unfortunate most people don’t have such information, I don’t really blame people who panic cos lack of information can be a big hurdle. I’ve been making more than $25k passively by just investing through an advisor, and I don’t have to do much work. It doesn’t matter if the economy is crashing, great CFA will always make good returns.

[@RaymondKeen.]

My financial advisor is "Margaret Johnson Arndt " she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversification and is considered an expert in the field, I recommend researching his credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

[@maaxt]

Here is another one….municipal bonds in your home state. Tax free at the federal and state levels.

[@agjomarkaj]

Hello! I love your videos, thanks for all the great advice you've given. I am 60 years old, and was preparing to receive a monthly pension at age 65 from a company I worked for during my career. This company just sent a letter advising that they are offering a lump sum option, with details to follow in the next few weeks. I wonder what your advice might be for this comparison? What specifics should I look out for etc. Any information you are able to share would be welcome. Thank you.

[@johnwalsh8010]

monthly check, and more total income over time.

[@markbernhardt6281]

Start asking around to get an idea of how long your relatives lived. If everybody died early then take the lump sum. Let us know how it goes

[@2ChukBuk]

Geoff, I'm kind of agonizing whether I should convert my traditional IRA to a Roth prior to forced RMDs at age 73. I know I will take quite a haircut on doing that and I will likely earn a lower interest rate. Your thoughts? I am currently 68 years old. Great info as usual.

[@DrSchor]

You know the cons: 1. haircut 2. lower interest rate What do you think are the pros?

[@johngill2853]

Have you tried a conversion calculator?

[@DougASAP]

@2ChukBuk, I am same age, not agonizing about if, but how much. I have been doing medium sized Roth Conversions for ~8 years, and am doing bigger ones until I take Social Security at 70. It seems like a no brainer to at least fill up your current tax bracket (while keeping an eye on likely IRMAA thresholds, not necessarily avoiding them but being intentional) through 2025 and the expiration of the Tax Cut and Jobs Act. If you are married, remember your rates are likely lower now than they would be if you were widowed or divorceed.

[@whatsup3270]

Odds are it is a bad idea, but it is a good plan for some. Who is it a good plan for #1) high income people, if the retirement income is noticeably over $100k, #2) the retirement account isn't used to retire, if that doesn't make sense don't worry about it, and #3) special circumstances, as business owners, or early retirees who can report near zero incomes for a few years. Again, if those don't make sense don't worry it likely doesn't apply. What are the down sides #1) often the breakeven exceeds age 90! #2) taxes paid upfront are typically gone forever, #3) Net worth often tanks for decades before breaking even. WARNING : Financial planners often hide the cost of the upfront taxes and intentionally mislead clients WARNING : A marginal tax rate is not the tax rate, it may be restricted to a couple of dollars or more. Compare effective tax rates which is what is paid. Simply many lose $10s of thousand upfront to change their future effective tax rate (taxes paid) from 9% to 6% and that payback is too slow.

[@whatsup3270]

@@DougASAP why won't "medium sized Roth Conversions for... years," work? Why not continue, if avoiding the widow's trap is the objective.

[@denniss3980]

Hi Jeff, love your content, Here is a problem to solve, I am 64, retired, and receiving survivor benefits of about 24K a year, at age 70 I will change to my own SS and receive about 52K a year, I have 500K in 401K , what is my best strategy to draw down that 401K account over the next 5 years before age 70 when I will be at a much higher tax bracket.

[@williammccaslin8527]

Thx for the vid Geoff

[@vinyl1Earthlink]

You have made a small error. There were already income limits for a Roth when Peter Thiele put the PayPal shares in, but Thiele had no official taxable income for that year. The real problem was the valuation of the PayPal stock, which was probably totally improper.

[@kellyfrench]

I caught that too, the calculation he mentioned was probably affected by prior stock splits.

[@bjaneharding584]

I’m a 69 y/o registered nurse. I am disabled. Can you make any suggestions for me. I’m not as wealthy as some of those areas mentioned. I need help to supplement my social security. Thank you if you have the time. I can only work 2 days a week due to disability.

[@51dbail]

Stocks that pay dividends. Long term dividends you will pay little to no tax.

[@denniswong1438]

You did not mention that capital gains on primary residence and certain bond coupons are tax free??? to me this is income not how to avoid taxes with IRS rules

[@boblove2lrn84]

During covid I was forced into retirement. Now I only have income from Stock Investments. Is there a way to contribute to a Roth/Ira? if not then how can I minimize my taxes. Thanks

[@tino1761]

Greetings Geoff, I have a question regarding the Roth Limitation of "Opened for at least 5 years". Does that account have to be held at the same bank/brokerage firm for the entire 5 years in order to be able to make a withdrawal, or is it a cumulative time, i.e acct opened at Scwab for 2 years, and then tranferred the funds to Fidelity for 3 years. Does that acct now meet the 5 years limitation? Thanks

[@charlielipthratt7291]

I'm pretty sure it's based on the opening date of your first Roth.

[@patrickdaugharty7475]

Misleading about withdrawals. Contributions can come out anytime tax free. No 5 year wait.

[@janicenunn101]

Just penalties

[@68orangecrate26]

So, I should get married because the government will shake me down if I don’t. Makes a lot of sense…😵‍💫

[@sergiosantana4658]

#11 Reverse Mortgage.

[@Leftists_are_Losers]

I’d rather keep my house and pass it on to my wife/ kids. So a hard pass on reverse mortgages.

[@nunyabidness-y2r]

​@@Leftists_are_LosersWhat if you have your primary home and your vacation home? And you can do both.

[@Leftists_are_Losers]

@@nunyabidness-y2r you do realize that most people own only one home. Or less. So if you own two houses, you can sell one or the other and live full time in one of them.

[@georgestone0123]

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.

[@JLMcneal54]

I’m not sure where you got your Pay Pal share price, but it is way off: it’s IPO was at $13 per share on 2/15/2002 and it’s all time was $9.00 in November of 2008. It never traded as low as you state

[@Grilledexpectations]

He created PayPal along with Musk. He set the price of his stock well before they went public.

[@bridgetlove1884]

In 1999, he bought 1.7 million shares of PayPal for $0.001 a share, totaling $1,700. He had access to private shares as a founder so this type of opportunity is not available to most people.

[@JBoy340a]

Theil was an original investor prior to the company going public. Another Sand Hill billionaire.

[@pascalbruyere7108]

Roth IRA: You must also be a 🇺🇸 taxpayer. If you leave abroad and pay your taxes abroad then you pay taxes I.e no benefit.

[@DarthWaffle.]

Your thumbnail screams block me,..ok