I'm 65 With $850K What Does My Tax Plan Look Like In Retirement

[@mikesalaiz3652]

Thank you, very informative video. In future videos would it be possible to include the fees and expenses of hiring a CFP to create and maintain a plan like this one and the effect on the success percentage? Thank again!

[@iron1215]

so who am i supposed to talk to to get this done... a tax agent? i talk to a edward jones person and they weren't really interested in doing this... they just wanted me to hand over the money and they just dole it out to me like a good little boy getting his allowance... :)

[@ebelen1]

Can’t say I watch all your vids but wanted to say that this was much more informative in terms of results. I think other videos try hard to explain the why that the what gets lost. Good job on this one!

[@OakHarvestFinancialGroup]

Thank you, Glad you enjoyed it.

[@truthbetold6942]

I well be reaching out to you soon. Thank you sharing your passion for financial wellness with us.

[@OakHarvestFinancialGroup]

Please give us a call.

[@maryburkholder4439]

Excellent video. Tax planning is critical to the entire process.

[@marshallhosel1247]

Well done, thank you.

[@phillyrphtom]

Great video. I am concerned with taking a roth conversion and the effects it will have on my Obamacare eligibility? Thanks

[@vistahawk1688]

For high social security one should be employed for a long time and consistently reach the max social security contribution. Since I don't have a pension I've always through of social security as a pension (with COLAs and tax advantages) when I retire.

[@gregschweers8738]

At the 12:33 point: how can they have $80k in social security and not have any taxes? There provisional income has to be at least $40k which should have made some of that income taxable... what gives?

[@OakHarvestFinancialGroup]

Yes, you are correct about the provisional income. But SS taxation taxation is more complex than what you find in most articles on the internet. Because of the "phasing in" of provisional income between the brackets, less than 50% of SS is taxable income in this scenario. If you read carefully it says, "Up to 50% of your SS is subject to taxation". If you are closer to 32k than 44k less than 50% of your SS is taxable. With 80k of SS income for a couple over 65, the taxable income portion is only 4k. The tax due is $0. Retirement planning is complex in large part due to all the IRS rules and uniqueness of everyone's situation. It's far different than the accumulation years.

[@viaggi3945]

@@OakHarvestFinancialGroup Sorry, but I don’t understand this explanation. Just like what the above person said, what gives?

[@cliffluxion7019]

Thank you!

[@OakHarvestFinancialGroup]

You're welcome.

[@desidog4169]

Thank you for the education 💡

[@OakHarvestFinancialGroup]

You're welcome.

[@spgallegos1]

With regards to Roth conversion, is the ultimate goal to convert all IRA to Roth?

[@jayegan2640]

what is your fee percentage?

[@ScottyOutdoorAdventures]

Are ROTH conversions on the chopping block? I believe they may be ending in 2021

[@andytan9238]

Did your 97% success rate include your annual fee in the recommended approach in your example? If not, what will be the after-fee success rate?

[@OakHarvestFinancialGroup]

Yes, everything we do assumes all returns are net of fees. Realistically, I would personally expect all portfolios and circumstances to fare better than we show, but it's more prudent to be conservative. Most scenarios are run assuming after-fee returns in the 5-6% range.

[@allandelossantos1392]

Hello Troy, majority of people gauging their retirement by using the 4% rule. 80k less 30k & 24k = 26K which is only about 3% withdrawal rate of 850k because the 4% is 34K. This hypothetical example seems very prepared but only gives 62% success rate. Im still 25 years before my retirement and im working at 3.5% withdrwal rate instead of 4% rule as our cushion. However, your example is very depressing.

[@jpg7616]

I don’t know all the details, but here’s what I gathered. Keep in mind the couple was 65 and 62. The 30k and 24k were at FRA = full retirement age (67 for most people), not current ages. So there are approx 5 years until both SSI begin. And thus all $80k + taxes needs to come from the $850k for 2 years, then $50k for 3 more years (50k is after the 30k SS begins) Also $80k may be the amount they need in hand - but because everything is in IRAs you have to take out more than $80k to account for taxes.

[@dancasey9660]

So it sounds like you don't do fee only planning.

[@OakHarvestFinancialGroup]

Here is a link to our fees: oakharvestfg.com/transparent-fees/?adpos=&locphisical=9061128&locinterest=&adgrp=135433635984&kw=oak%20harvest%20financial%20group%20fees&cpn=15000140364&device=c&pl=&gclid=Cj0KCQiAhf2MBhDNARIsAKXU5GRu_SnXYGVUJdA5PKJDHEVbnM0AAatmlfhG2i-OL9GjmjDIdKamVVUaAs8IEALw_wcB

[@viaggi3945]

I am 61 and my SS @ FRA will be 37512 and at 70 will be 47556 excluding the wife’s SS. So, Troy is correct. 30K per year is not uncommon.

[@amerlin388]

At first blush, I think if a team of tax advisors got my Federal Income Tax down to near zero I would FIRE them. Granted my spouse and I have more tax deferred money to manage than your case study, but I want to take out or convert as much as we can at the 12% tax rate. This means paying $9,328 in taxes for 2021, more in future years as brackets grow. Goal is avoid eventual RMD's forcing us into much higher tax brackets. I can't imagine any reasons to arrange lower taxable income, unless one is trying to qualify for Medicaid before Medicare age.

[@dancers10]

That’s funny, we’re on EBT!

[@Loralit4]

I thought this was about a single woman with $850K.

[@OakHarvestFinancialGroup]

Here is a link to a video of a single person: kzbin.info/www/bejne/nmHNq6qljdehqK8

[@tomblevins5020]

$850,000?? Taxes are the least of your issues.

[@jennifergraham3563]

That’s barely enough for a luxurious retirement. What’s the point of working so hard if you can’t spoil yourself during retirement.

[@Binatasj]

If you have a lot more than this, then consider yourself blessed. Everybody has different standard of living. Some people may find extravagantly wasteful what you consider luxurious. Happy Thanksgiving!

[@jennifergraham3563]

That’s true, but it’s better to have it first and consider it extravagant that not to have it. Luxury at the end of the day should be a necessity

[@volvotoyota4850]

Depends on ones age and needs.

[@jpg7616]

“That’s like saving up sex for your old age.” -Warren Buffett