I’m 62 with a $2 Million IRA, $700k in Non-Qualified Accounts: Which Distribution Strategy is Right?

[@DavidBleggi]

Love all the information you provide, would love to see video with demostration of couple with account balances in the 600-800 thousand account balances at retirement age.

[@mitchthornton1820]

Oh you mean a dollar amount that’s more realistic ? If you are sitting on 2 million you probably graduated from the I need a financial advisor already … When the examples are based on such lofty numbers they are speaking to a much smaller group than the masses .

[@brianjohnson4722]

Great video, My plan has always been to live off the non deferred acounts and take SS Later. I have learned so much from your videos. In 13 years when we retire we will be in a better position. This video is the closest to what I predict our scenario will be and it has given me more to think about.

[@marka9073]

More of delay SS strategy and live off tax deferred vs taxable. What about health insurance costs impact of the 2 scenarios, (maybe more expensive in multiaccount strat due to showing income)? Also to make comparison fair, Roth conversions should be taken in those Zero tax years (filling up the low tax brackets). Hard to compare the actual numbers and factors used for comparison. Please make that video.

[@mrbigglesworth375]

Great video-- I have been questioning roth conversions for my situation. Then started to think why not just start pulling from my traditional ira first and then let the brokerage taxable account just continue to grow. My Ira and taxable brokerage account are about equal in value. I am lucky enough that I do just fine pulling from either account by themselves. In addition I was thinking about moving my taxable brokerage accounts holding to Berkshire Hatheway class B. As his holding company doesn't issue dividends or distributions which essentially turns the taxable brokerage account into a Roth. Warren Buffett isn't just brilliant but also tax efficient... thoughts???

[@maryburkholder5237]

Excellent video!!

[@OakHarvestFinancialGroup]

Thank you very much!

[@gizmobowen]

Good example of how everyone's situations are different. This situation isn't relevent to me because over 90% of my retirement savings are in tax deferred 401k accounts. Sure would like to have a big lump in a non-qualified account, but that's not how it worked out.

[@OakHarvestFinancialGroup]

Thanks for your comment, @gizmobowen! There are many different strategies and tools that can be used to manage your retirement portfolio, and if you'd like to discuss your options with one of our advisors, click click2retire.com/which-distribution-strategy-is-right and request a free appointment.

[@jerrylabat550]

I don't understand why you don't funnel all withdrawls from the IRA through the Roth account as conversions on the multiple account distribution. Since your annual spending was less than the yearly withdrawal, keeping the excess in Roth would save on taxes long term because future earnings are tax free. With him being 62 and her 59 they will both be over 59.5 in 6 months so there would be no restrictions on withdrawals assuming they established a Roth 5 years ago.

[@keithmachado-pp6fv]

There are other tax free options vs Roth for the money not needed. I personally prefer a brokerage account, where my heirs get a step up in basis, they don’t need to liquidate the account in 10 years, and I can take advantage of capital losses. Contributions to universal life insurance or municipal bonds also get the same result as the Roth if you don’t want stock market risk. Be careful of a Roth during bad times. If you paid tax and converted in 2021 (or 2000 or 2007) it would be a challenge to come out ahead. One other point is the time value of money, as $1 paid today is worth more than $1 paid many years down the road. Also, many Roth conversion calculations compare payments of tax on all the IRA balance. If you live an average lifetime, you will likely pay tax on less than half the balance as it continues to grow. You then need to consider your heirs tax rate to see what is the best answer

[@jerrylabat550]

@@keithmachado-pp6fv Inherited Roths are tax free as well, so they are basically a little better than brokerage accounts in that they won't have taxes on earnings (E.G. capital gains or dividends). At the end of the inheritance window you can simply transfer everything to a brokerage account with no tax impact. Since my original comment was related to IRA withdrawals needed for yearly expenses, there is reason to worry about tax rates beyond not taking too big of a withdrawal.

[@keithmachado-pp6fv]

Yes i actually inherited a Roth from my Dad. The issue is that he had it invested in an account in funds that I will need to sell (they won’t allow an in kind transfer) and i am also not allowed to add any new funds to the account (which is the case with all inherited IRAs). If this was in a brokerage account I would get the step up in basis, be allowed to add funds and harvest capital losses.

[@alextock]

What is your assumed rate of return?

[@davidparker7156]

i like to see how medical discounts play into this,,,,

[@OakHarvestFinancialGroup]

Hi David, we can add it to the idea list when filming upcoming episodes! Until then, you're welcome to set up a complimentary consultation with our team to get your question answered :) click2retire.com/schedule

[@davidparker7156]

@@OakHarvestFinancialGroup Thanks I am not in need of any consultation just feel your video was flawed not to address it. It may lead people down the wrong path.