How and when I changed my investments leading up to retirement.

[@joekuhnlovesretirement]

------------------------------------------------------------- *_PLEASE STOP USING Spreadsheets!_** It falls way short optimizing every retirement factor* Retirement Tool Link I reference and highly recommend -- New Retirement. Free 2 week trial. $120/yr after. You will buy this after trying (I have purchased for 3 years). www.newretirement.com/?nr_product=NRC&nr_a=35&nr_medium=affiliate& -------------------------------------------------------------------- Need a CFP to create your retirement plan for a one time fee? My Recommendation: Neil Fortwendel [phone]. Neil created my plan. Plan updates as you wish for a smaller fee. Check Neil out on Facebook and LinkedIn. ---------------------------------------------------------------------- *DO NOT GO IT ALONE!!!!!!!* *Money Pickle - FREE! use link to set up a FREE 45 minute dialog with a Financial Advisor* No obligation. Get answers to your questions. Get an expert to look at your plan. moneypickle.com/joekuhn --------------------------------------------------------------------- *Plant Manager, Maintenance Manager and Career Consulting -- 1 hour virtual via Teams/Cell Phone* sowl.co/s/bQifp ------------------------------------------------------------------------- Most Popular VIDEOS *Health Insurance before Medicare* kzbin.info/www/bejne/gYHWZYWOhLSGbJY *You Cannot retire with these 4* kzbin.info/www/bejne/aqLPdJWcnt-il6s *2 shocking surprises in retirement * kzbin.info/www/bejne/pnSng2Vvfd-npLM *15 things you must let go to retire * kzbin.info/www/bejne/fpiTn6l6mrJkjpY *My retirement budget* kzbin.info/www/bejne/d2azdKeVaZiFq9E * 5 early retirement regrets* kzbin.info/www/bejne/b6Kmk6l5e5eGrc0 *this convinced me to retire* kzbin.info/www/bejne/mYaZonqVrahoebc *Timing of Social Security* kzbin.info/www/bejne/i36rZYiDaKtmd8k *How I fill my buckets* kzbin.info/www/bejne/rHyweJ2YZrKsrJI *How I document my retirement plan* kzbin.info/www/bejne/l4rQmouKor90o9U *What I have learned from 300 retirement coaching clients: * kzbin.info/www/bejne/e6K9pqeuh8iei9ksi=dqz8JoLrcpfgjj9t --------------------------------------------------------------------------- RECOMMENDED FINANCIAL ADVISOR - Assets under Management or one time plan creation Neil Fortwendel with Northwestern Mutual ph: 812 471 2492 Video by Lean Driven Reliability LLC This is not investment advice. For entertainment ONLY. Seek professional help to understand your unique situation. #retirement #retirementplanning #retireearly #retireearlyandtravel #financialfreedom #financialindependence #retirementincome #retirementstrategy #findingpurpose #keto #ketodiet #ketovore #hiit #hiitworkout #healthylifestyle #howmuchcanIspend

[@mickster1780]

i live in central texas and got to see it. the eclipse was amazing!

[@brennenpowaski3290]

I’m 56, may retire in 18 months. I’m buying CD’s at 5% for my first “cash” bucket. I’ll have 6 years of expenses in there when I retire. Won’t need to touch investments until I’m 64 or later. Love your videos

[@joekuhnlovesretirement]

Great plan

[@tracyreaume6451]

I wish we had CDs in Canada!

[@RetirementbyDesign26]

@@tracyreaume6451they have great GIC rates in Canada right now! We just purchased one at 5%.

[@josephjuno9555]

I have 1yr CDs at 5% but can't find any longer that that paying much? Rates drop quickly

[@KA-jv9sz]

Charles schwab has 5% out to 18 months 4.2% out to 4-5 years not life changing money😅 ever think about municipal bonds? Lower rate but no tax in some situations. Good luck to you!

[@Abraham.Lincoln22]

Thanks for the transparency Joe. Much appreciated & congrats on your successful journey. 👍

[@douglasbuchanan4203]

Awesome content Joe-- I always get something new out of your videos.

[@joekuhnlovesretirement]

Glad to hear it!

[@ItsEricAZ]

Social Security and 2 pensions will cover our expenses and we'll have a small cash bucket leaving 80% or more in stocks. It's a different mindset when you know your retirement expenses and income.

[@iLuvpizza418]

Joe, really appreciate your transparency. Very good information.

[@PorscheSpeedster-kz6nc]

Joe - my story is very similar to you. I retired at 51 with deferred compensation covering the next 15 years and then my after tax brokerage and retirement accounts covering the rest of my life. Paid the house off in 6 years and bought 2 year old cars with a rule to hold for 10 years. First 5-7 years of deferred compensation is in fixed income and everything else is securities (>90%). Like you, I started with spreadsheets and now migrating to New Retirement and testing out RightCapital. But the spreadsheet sheets ensure I know all that is going on with the calculations. There are some issues with the black box calculations or fixed assumptions that I question. Congrats on the KZbin income! All the success!!!

[@kay203]

36 now, planning to retire between 50-55. Will remember all your points!

[@joekuhnlovesretirement]

You will win if start early

[@cperryisnow]

Always well done Joe and very appreciated ! I was also in “path of totality” and it was quite remarkable to witness under clear skies. Currently 2 years out and trying to build cash funds to build a 3-4 year bucket 1. Also prepared to sell our home at retirement and slow travel so anticipate having nearly 1/2 of bucket 2 filled as well Keep up the excellent content ! Cheers.

[@martybabitz9590]

Love the video and guidance on an important time period to help ensure retirement success. Love the eclipse video and thanks for it! We had a bit of a dud here in southern New Jersey where cloud cover hit just around the max percentage eclipse. Looked great in southern Indy!

[@BadPhD777]

I've been retired five days now!!! I have been seriously watching KZbin videos to learn about how much I need to retire, taxes, buckets, etc... since about January 2023. Only in the last six months have I started moving my money away from 100% stocks. I have a little under five years until I am going to start collecting SS, and so my plan is to have all the money I need until then in safe investments.

[@joekuhnlovesretirement]

Scary but you got it now

[@BadPhD777]

Your videos have helped me A LOT!! With Joe's videos and NR I'm set!

[@vincentdesalvo1464]

Remember, don't make knee jerk decisions on this or that. Educate yourself on whatever area you want to upgrade to and learn.

[@livezero264]

I have a very similar story and philosophy to Joe. I saved early and often, always thinking of the long term goal. I’ve taken criticism from peers about not spending my bonuses and driving 10 year old cars. Now that I’m well positioned financially, planning to retire next month at 59, it all seems worth it. Also with no set plan, just lots of learning and adjusting as I went but always keeping the goal in sight. Thanks for the info that you share, Joe.

[@joekuhnlovesretirement]

It’s like we’re twins

[@livezero264]

@@joekuhnlovesretirement I also bought some Hokas on your recommendation and they are great!

[@genglandoh]

I should have moved my money for 100% stocks into my retirement investments 5 years before retirement. But the market was up and I was still working so I did not get around to it. Then the market dropped and I did not want to sell any of my stocks. I did get lucky in that the market came back so I was able to move my investment around Today I set with my buckets for my retiring on May 31 2024.

[@joekuhnlovesretirement]

A lesson learned right? We all have them

[@Hammett1969]

Love your comment about spreadsheets. I have spent 100s of hours. I love being able to make constant adjustments.

[@joekuhnlovesretirement]

Me too!!

[@abr7192]

Excellent video on the eclipse! I retired at 63 and immediately rolled over my 401k to a traditional IRA and a Roth IRA. In addition, I rolled over my lump sum pension to a traditional IRA. As a bridge to social security full retirement age (67), I maintain a brokerage account to cover 4 years of living expenses. Like you, I take nice vacations but live below my means.

[@irmafranke1012]

Love this Joe. Thank you for all you do. I am still pretty far from retirement but I think about it a lot. The years seem to fly and retirement is not something that may or may not happen (like a trip to Hawaii), this is an event that will happen. You have helped me a lot. I am fortunate to have a job with a pension and I value it so much more than I ever did thanks to all the education you share. Thank you. And thank you for the eclipse video. Love it ❤ Greetings from Los Angeles.

[@joekuhnlovesretirement]

You can do it!

[@pcash4088]

Hi Joe. Great video. I did just 3 years of deferred comp before I retired at 55. I chose a 5/10/15 yr payout upon retirement to help bridge me to 65. However, the downside impacted my Roth Conversion strategy as it limited how much to convert. Unless I wanted to go into a 35% bracket which the math and my heart said no. But was still glad I did it to help cover expenses. Roth conversions will just take a few extra years.

[@joekuhnlovesretirement]

Nice work!

[@virginiagirl977]

Drove 8 hours to be in the path of totality - the eclipse was amazing!! I think your $16K pension is pretty good! I'm looking at only $5K.

[@joekuhnlovesretirement]

Thanks

[@michaelperry7871]

New retirement is a game changer!!!! Thanks so much. Also buying CDs like crazy 😂

[@jamesr1021]

Around 2015, I was about 75-25 in Stocks, I was 53 then. I am pretty conservative so I started shifting that mix to where I was about 55-45 Stocks by 2020 and still am. Hindsight is 20-20 and, of course, I wish I had started that shift a bit later (especially since I do have a pension) but that’s okay. I feel I have plenty.

[@janethunt4037]

Thank you for sharing this. I'm 63, and I've had a car since I was 17. I'm on my 4th one right now with almost 200K on it with no plans anytime soon for a new one. We could have had a house 5 miles away for another $100K in 2006 but decided to live here instead so we would have funds for travel.

[@kerstinlampert7337]

Notable and educational...thanks! I had the greatest employer which allowed me to build quite a nice retirement savings in Profit Sharing 401K, etc.... Upon retiring (early) I was allowed to choose a lump sum over a pension BIG DIFFERENCE , if you invested it....I was 47 years old....and that translated to a nice nest egg.

[@joekuhnlovesretirement]

Fantastic!

[@vernshird711]

Debt-free and retiring at the end of 2025 (age 60) and will get a monthly pension right away. SS at 62 (or later if I get a p/t job). Doing TDFs for my 401k and 457b. The 457b TDF is tied to the year my RMD goes into effect (2040 - age 75). My logic is that I plan on drawing on the 401k first and letting the 457b sit and grow until age 75 - I can afford to be more aggressive on it.

[@rickybreaux2607]

We have a lot in common. I don’t hunt or spend big on trucks or big house. I maxed out my 401k 1991 or 92. Only thing I divorced at 46 yr. Old in 2011. Stayed almost maxed till retirement in April 2022. We still driving our 2015 Honda Pilot. Took pension lump sum to pay house off. Only have a note on rv. We live modest and try to take my walks and eat right. Thanks for your videos Joe.👍 I’m about 80/20 also. Couple years cash in fixed acct.

[@E.E.F.]

I will retire in less than two months with a pension that pays the bills. was always a conservative investor and am not really changing my allocation. However, all of a sudden having access to all this money that needs to be rolled over, reinvested, etc. is more daunting than I anticipated with every institution having different rules. I feel that I just enrolled in a course "Retirement 101." 🙂

[@JohnMcLaughlinPlus]

FYI your deferred comp account (the one that was 'on paper') is also called a Notional Account.

[@pattifabok9414]

Love your videos. Live in Canada but your advice applies no matter where you live. Going to retire ebd of this yr and am not very savvy in understanding stocks bonds etc u do use a financial advisor for that and trust him. I also have funds in GiCs which is locked in rates as well. Like your idea of the buckets. Doing all the expensive maintenance to my home now before i retire so dont have to ever do it again...new roof...furnace...windows next. House 35 yrs old and time for big expenses....but never again lol. Thanks again for your videos

[@BarnabyBarry]

Cool video-I can brag with my CALPERS w COLA at 56 over 100K USD annually though had to work 32 years in a college law enforcement position!

[@kooljb298]

I am retiring end of this year at 53 years old. No debt and paid of primary residence and rental properties. I will have 75% of my annual living expenses through rental income. I have cash in money market account with that will take care of emergencies, kids education and weddings. I have a 401K (>2M current value) waiting for me when I turn 59.5 Years old in 7 years. Love your videos and advice. Very genuine and real. Can you make a video on how to spend time in the first year. It is scary and big mental shift to retire and stop steady stream of income.

[@joekuhnlovesretirement]

Good topic

[@jimdoran3603]

Joe, I subscribe to the same line of thinking. Video idea: Using newretirement transfers to be prescriptive in moving money instead of allowing auto pilot withdrawal order. This way we can top off B1, B2 when needed.

[@joekuhnlovesretirement]

I like it

[@michaelsd284]

Hi Joe, question on your bucket strategy for withdrawals. Do you factor in any of the "tax status" of the assets in this strategy. For example, you could have assets from both a 401k and ROTH in buckets 2 & 3. I would think taking $$ from a 401k in a down market would be more painful than taking from a ROTH.

[@joekuhnlovesretirement]

I always look at taxes. Not sure I'm with you on taking from ROTH first. Selling is selling in a down market.

[@michaelsd284]

@@joekuhnlovesretirement Just thinking that the ROTH is tax free where as the 401k is ordinary income so its a double whammy with lower returns + tax.

[@joseperez2003]

Great video!

[@jackfordmac]

Nearly at 50k Joe!

[@patonsmith]

Hi Joe, my story is fairly similar to yours. Lived within our means and were able to save to a deferred compensation scheme. Still have 7 years of payout to come from that. Any suggestions on how you managed the portfolio allocation within that deferred account while utilizing an overall ‘buckets’ strategy?

[@joekuhnlovesretirement]

The payout reduces bucket needs.

[@Naufrago_Sur]

Thanks for the video Joe! Two years before retirement when you moved the three years of expenses out of your investments to cash was that from a pre-tax or after tax account that it came from? Did you have to pay taxes on that money you moved to cash? I'm in a simular situation and am not sure if I should take it from pre-tax or after -tax. Any ideas anyone? Thanks again Joe.

[@joekuhnlovesretirement]

Mine all post tax accounts. To decide you must look at shot and long term tax consequences

[@Naufrago_Sur]

​@@joekuhnlovesretirement Thanks

[@Toomanydays]

On a smaller scale, I’ll use the same strategy for RMDs.

[@DrBilly90210]

Another great video Joe; thanks for putting it out. Your deferred compensation plan sounds like a 457(b) and/or 457(f) type plan. I have a 457b and plan on doing some Roth conversions (from a 401k) between 65 (retirement) and 70 (SS starts). I'm taking the 10 year distribution as well and wondering how much it'll influence my ability to do Roth conversions (trying to keep taxable income in the lower brackets). Has your deferred comp income impacted any Roth conversions you'd planned? Eclipse was awe inspiring! I was in Mountain Home, AR; had about 3 minutes totality. You're right, those were planets. Lower right is Venus. Upper left is Jupiter. If you looked really closely, Mercury was just to the left of the Sun.

[@joekuhnlovesretirement]

Yes on Roth conversions but not too great. I’m converting to 22% bracket so lots of room.

[@J-2024-v8i]

@@joekuhnlovesretirement It’s great that you have that room in the 22% bracket for Roth conversions, probably because you don’t use ACA and don’t need the subsidies. For someone dependent on ACA subsidies, deferred comp will have more of an impact in limiting Roth conversions until 65.

[@57054]

It's difficult to avoid spending $$ on "Man Toys". I'm eyeing a $3,000 offset smoker. I'm going to buy it! I'll keep driving my 17 yr old Buick Rendezvous because of it.

[@joekuhnlovesretirement]

Live life on your terms.

[@karens6053]

What do you do or have to medical insurance being retired early?

[@joekuhnlovesretirement]

See video link in show notes

[@kevinfestner6126]

I was in totality in 2017, glad I did it. As to building my tier 1 to 3 levels, I'm building them, T1 is cash, T2 is bonds and balanced funds, T3 in the market.

[@joekuhnlovesretirement]

Nice

[@kevintressel6599]

When you say equities what do you mean?

[@joekuhnlovesretirement]

Stocks

[@kevintressel6599]

@@joekuhnlovesretirement thank you

[@genabarclay2465]

So if you pulled 3 yrs worth of expenses out of a qualified account before 59.5, I assume you had penalty as well as paying taxes on all of that at once?

[@JAT922]

If you’re 55 or over, you can pull money out of your current employer’s 401k penalty free. You still pay taxes either way. Look up “Rule Of 55”

[@joekuhnlovesretirement]

No I did not. Brokerage account

[@genabarclay2465]

Ok, this is where I'm struggling trying to figure out how to fund a 3-5 yr bucket with several hundred thousand when everything is in qualified accounts. I'm 5 years out so will be working toward that but this is the hardest bucket to try to figure out how to fill.

[@jerrywilwerding7699]

​@genabarclay2465 look into the rule of 55 and see if it applies to your situation

[@J-2024-v8i]

@@genabarclay2465 If you have already a decent nest egg but all in qualified Trad/Roth accounts and you are 5 years from retirement, it is probably best to save now mostly in your taxable brokerage and only contribute to the 401k up to the match if you have any. The brokerage account is key for those years before 59.5 and now is also a good time to have some cash and bonds in it with the current interest rates.

[@danitzm]

That is more about me than you but sometimes when I watch your videos, I feel inferior. I was wondering if anyone else had that reaction. You have your finances, marriage, success of your children and relationships with your children, relationship with parents, quantity and quality of your social circle, physical and mental health all in order. I might equal you in one or two areas others I am just ok and in still others it’s a total disaster. I have some ideas for videos. In the past did you ever do something really dumb and with the passage of time it seems funny or do you have any regrets that you are willing to share with the KZbin audience.

[@joekuhnlovesretirement]

Don’t beat yourself up and never compare. Comparison is the therapy of joy. Good video topic. Look for it.

[@danitzm]

@@joekuhnlovesretirement Thanks for responding. Good comment that I heard before but I should now contemplate on. You should contemplate on how your “fortune man”(There is story with that title that I read in high school). There are very few people who are so blessed or lucky (depending on your religious view) to be given your genes and geographic location and opportunities.

[@RoboCatch22]

There was a baseball announcer that routinely said “when I played, I’d…” It was off putting. Your story is great, but comments like “I have a small pension of $16K per year”. Etc are wonderful to have. They also can be off putting.

[@joekuhnlovesretirement]

I only know my situation. I talk about my firsthand experience. You can’t learn from my experience if I withhold information. I’m confused on what to do with feedback

[@cathymason6222]

It’s helpful information you share. I use the knowledge if I can as it applies me! Some things are new to me but it helps me learn! Take what you can and leave the rest!!