TAXES! Watch this to Pay No or Low Taxes in Retirement

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Our Rich Journey - TAXES! Watch this to Pay No or Low Taxes in Retirement: Let’s talk taxes! We talk a lot about taxes on your journey towards financial independence. But, this video is different. In this video, we’re talking about taxes after you reach financial independence and retire. When you’re retired, you need to understand how drawing from your multiple income sources will impact the taxes that you pay. So that’s what we break down in this video. We talk about how your different income sources will be taxed differently (including your various tax-advantaged retirement accounts, your traditional brokerage accounts, your pension and social security) and we also give you four tips for reducing the amount of money you pay in taxes in retirement.
▸▸▸Check out some of our other videos!
Our Vanguard Portfolio: How We're Investing for Financial Independence: • Video
Best Vanguard ETFs (Exchange Traded Funds) for Financial Independence: • Video
HSA Accounts - How to Invest Them for Financial Independence (The Secret Early Retirement Account):
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#FinancialIndependence #FinancialIndependenceRetireEarly

[@OurRichJourney]

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[@cynnechocolat3439]

I would love to see a video on filing US taxes when you live abroad. My friends who do this suggest that it is a real night mare. I'd love your perspective.

[@DestinationRetirement]

I second that request! I'd love to know that as well as I'm moving to Merida Mexico.

[@druwsdaman]

Would also be interested to hear if you are considering renouncing US citizenship and getting Portuguese citizenship in order to lower taxes.

[@lindafinch6252]

@@DestinationRetirement That’s awesome 😎 👏🏻 My daughters in-laws moved to PROGRESSO, Mexico 🇲🇽 last year from Spring, TX. They live right on the beach and they love it! They’ve already made so many friends that are expats as well. Safe travels and enjoy!

[@CreativeCashflow1]

Having money in your savings but still telling people "im broke" is a different kind of discipline 😂

[@OurRichJourney]

Different kind of discipline. :) Thanks for watching!!! :)

[@LifeofaLandlord]

You ain't lyin

[@ging-gingw2406]

Isn't that a lie? How about not to talk about your money at all. Let them talk!!!!

[@viceanterra3]

@@ging-gingw2406 not really. The savings is not to be spent. I'm broke to me means "I don't have any DISPOSABLE income". Savings is not meant to be disposable.

[@SagRising19]

@@viceanterra3 Very true!!

[@Jetfuture737]

It’s important to know not only the states with no state income tax, but also the states which do not tax qualified retirement account income and Social Security income.

[@jaxonwilson4722]

The Why I relocated from California to Pennsylvania !

[@whatzupLizzy]

One of the most important videos you have put out - ever. Thanks for the good advice!

[@fran2688]

I'm already subcribed, but I'll hit the "Like" button even before I watch the video because I know it's going to be good and full of helpful information 😊🙂 Thanks guys! Enjoy your day!

[@lindawilmarth3300]

Same !

[@georgd3013]

Boy oh boy, I took a lot of notes on this! It's all about strategy and keeping those taxes at a minimum. Roth accounts are THE best! Amon and Christina, once again you've delivered such great content. Obrigada!

[@cubingdad6355]

Hoping you guys would address what paying state tax looks like when you live abroad? Do you guys have to pay state tax from the state you used to live in or does living abroad make you exempt from paying state tax?

[@ketanmehta4309]

Leaning a lot watching your journey and videos. First off, very easy to follow and clear examples makes it enjoyable. I have restructured our retirement strategy watching (and learning) from you both. I hope to one day retire early and enjoy life the way it was meant - stress free (at least financially!)

[@rgallegos2234]

Man I don't know what id do without you guys. I have bee studying to get my enrolled agent license and have been learning a ton about taxes and tax planning and I was starting to put things together and then this great video comes out to really help fine tune everything that I have been learning. Thank you guys for the great content because of you guys I definitely feel have a much better sense of my finances since I've started watching you guys a from the very beginning. I hope to reach FIRE one day with everything that I'm learning from you both.

[@sol9877]

Reducing taxes? I’m here faster than Bolt! Love you, beautiful couple! Beijos e bom domingo! 🇧🇷

[@OurRichJourney]

Hehe! Reducing taxes is a must!!! :) Thanks for watching Sol!

[@ClassyPrissy27]

😂😂

[@stevenjustice8258]

Republican?

[@sol9877]

@@stevenjustice8258 nope…we know, for the FIRE journey, that we must consider ways to reduce taxes in order to achieve our goals, and some of them can even contribute for the environment and society.

[@mastermind6767]

How does Roth withdrawal work in Portugal at the new 10% NHR?

[@BlaxitGlobal]

I’m very curious about that also.

[@chicatita4753]

Do you pay taxes to withdraw $ from these accounts in Portugal? Would be nice to know how it works for retirees like you guys! Thank you for all this info!!!!

[@IAMElsLife]

Thank you so much. I didn't know that about the HSA accounts. You are so appreciated. ❤❤❤❤❤

[@howardwylie1620]

You two are great ! So glad I found your channel ! Keep it up !

[@marteanderson7963]

Be cognizant of a State's other taxes. For example, if they have no state income tax they are likely to have high property or sales taxes. You need to consider all taxes in retirement as well as cost of living variables in your target destinations.

[@dahaus6802]

Was wondering if you fine folks could do a video on implications of the NHR and if it goes away, what can expats expect to pay? You are both so knowledgeable on all things portugal.

[@rodneystewart7758]

Thank you for the info!

[@livingworkingoutsidebox]

You guys are awesome. Great tips. I set up a living trust and special wholelife insurance so our daughter and her children can build generational wealth. Especially from her documentary film and content creator earnings

[@jamesspitzercashout]

Good Afternoin my friends. Be safe happy and healthy.

[@yestohappiness2721]

Besides the 8 states with no income taxes there are other states (like IL) that have high income tax but does NOT tax on any 401K or IRA - so you don't necessarily need "no income" you just need "no state tax on IRA distributions". Just a clarification.

[@jaxonwilson4722]

Illinois is considering changing this:/(

[@strawmummy]

Thank you guys, u just answered a question that was bugging my mind. Am grateful for u and pray for you to be blessed. U made me understand what and why am working hard and I started investing with a goal, all because I understand financial matters better than before. Thanks to you again, you are changing people's life's, be blessed!

[@adam6674]

Wait if you make 34K your Social security gets taxed at 85 percent??? That's insane for such a low income.

[@hrhsophiathefirst4060]

Excellent information as always! You guys are so inspirational and educational, win-win. So my take-away is have a knowledgeable CPA!

[@chantelcastellano9672]

Hi there! My husband and I are currently in the process of selling an investment property, and we want to diversify with the money from the sale. We are planning on reinvesting in a couple smaller rental properties and then the rest into our Vanguard portfolio. We are currently dealing with the confusion of 1031. Do y'all have any advice or resources that you've used as far as reinvesting money from an investment and the taxes that go along with it? Thank you! Love y'all's channel!

[@nancylargent6203]

You guys, I just love your wonderful videos. You are so amazing!!!

[@nostrilsopen]

Love your content and this one really hits home. Make money, keep money.

[@OurRichJourney]

📈Looking to learn how to invest? Enroll in our Stock Market Investing Course: www.ourrichjourney.com/investingforfire 🔥Learn more about financial independence and retiring early: Enroll in our F.I.R.E. Master Class: www.ourrichjourney.com/firemasterclass ✈Want to move to Portugal? Enroll in our Moving to Portugal Course: www.ourrichjourney.com/movingtoportugal

[@willmallory9085]

Excellent video Team.

[@maguchka1952]

Great video. Can you make same video but for taxes when you retire early in Portugal or Spain? It can be a rating of countries for retirement.

[@kenesa]

Would y'all recommend paying debt off using investments from a Brokerage account i.e. Invesco or Vanguard?

[@GutsAndGall]

About the Roth, do you have any hacks for when you move to a country (like Portugal!) that doesn't recognize a Roth and requires you to pay taxes on the withdrawals?

[@WoodworkingforAnyone]

Keep the receipts for medical expenses that you pay out of pocket (never pay from your hsa). You can then pay yourself back for those expenses tax free.

[@choicewf]

Hi Amon and Christina. Was wondering how is portugal doing on Covid these days? My family is interested in starting our own journey and wondering if now is a good time

[@EngineeredMojo]

love the info and strategies presented in this video

[@toniawills1465]

Happy birthday Sunoa. U you out parents are blessing us with an impeccable knowledge. May your wisdom and knowledge grow astronomical.

[@KrazyKittyTailz]

This is great! Would you be able to do a video on taxes while living abroad? I understand there are many tax benefits to living abroad as a US citizen.

[@bmahoney1568]

You failed to cover ex-pat strategies like living in Portugal 🇵🇹.

[@F2512-p7f]

That’s all good but if you retire in a foreign country they probably won’t abide by IRS rules right? Means the income you’re talking about will be taxed per local regulations, no? Then of course tax treaties apply for the unfortunate US citizens who still have to file in the US regardless of where we live. Also how do you deal with risk on the exchange rate? Right now if you live in Europe of US based investments you pretty much loose 20% of your income in translation!

[@laurar9748]

Thanks for another fab video! Love learning something new every Sunday! You all are the BEST! 💶+🇵🇹=🥰

[@vernonfloyd5167]

Thank the both of you. As always this was so helpful!👍🏼

[@OurRichJourney]

Thank you Vernon!!!

[@felipepipe18]

Could you please do an episode of taxes in Portugal and how they affected your FI plan?

[@johnl9135]

So much good info to take in, had to watched it over and over again and take note. There goes the social security benefit, up to 85% tax? Good luck depending on social security benefit for retirement. Thank you

[@Ayohima]

How do you access your money in a foreign country? I want to retire abroad but us banks dont transfer to forign countries and i cant find a good option other than taking money out from atm. What service do you use? Is it easy to pull from retirement accounts if your in Portugal?

[@Chaseosa]

Another great thing about Roth IRAs is that you can withdraw the money you contributed before 59 1/2 penalty-free. It's just the capital gains that would be penalized. It'd be great if you guys went over the Roth IRA Conversion Ladder too.

[@mxtone83]

Great video and relevant information as usual :). What are your thoughts on Annuities?

[@tobirates916]

Great video with clear presentation of a tricky subject! Commenting on the tip to look at moving to states with no state income tax. Just remember that states need money to function and they’ll get it somehow. I’m in a state (Oregon) with no sales tax but our income and property taxes are relatively high. Next door in Washington, there’s no state income tax but the sales taxes and property taxes are high. Best of both worlds for retirees is to live in Washington but make most, or at least big, purchases in Oregon. Of course, people have other reasons beyond taxes in choosing where to love in retirement.

[@raychirayath]

Christina and Amon - Thanks for putting this video together - great advice. My question is - is the tax treatment on withdrawals (on IRA's, brokerage accounts and Roth accounts) valid even while you live under the NHR scheme while in Portugal? I was led to believe, that the tax treatment on all withdrawals (or earnings as the case may be), including Roth accounts is 10%. Is that correct? Thanks again for your time and effort in putting these videos together - They are most useful!! Best!!

[@lucchese20]

Great question. I think you’re correct but defer to Christina and Amon. Would like to also if state taxes fall into this same category. Thank you.

[@raymondeinspiration1106]

Is this course only for American people, or for people in Europe too, I am living in Holland, greetings

[@grizzygriz7957]

I’m going to be more mindful of my choices of where to park my money. Helpful information, thank you. My great great grandparents on my mom’s side are Portuguese. Does that help me gain citizenship in Portugal?

[@blckjedi]

2 years ago I watched one of your videos on investment accounts that support FI. It opened my eyes wide to HSA accounts....better late than never! Great video as always!

[@alliphil1]

Can you contribute to a Roth IRA when you’re self-employed? Im wondering how do they validate “after tax contributions?”

[@dopolla1]

Does Portugal tax you on Roth withdrawals, or are Roth accounts only considered exempt from US income taxes?

[@FreeToBe_Me]

My research showed that the UK and France respect Roths as tax-free income but not Portugal. As they always say: Consult your own tax advisor.

[@Cathy-nr5qi]

Great video, I love your videos, you guys are awesome!!!! I learn so much from you guys, so glad you did one on taxes. I would love it if you could do a video on tax optimization strategies for us fire people who plan to move to Portugal with NHR status. For example what accounts would you recommend withdrawing from first if under 59 and half, strategies such as withdrawing dividends before capital gain stocks, since capital gains is 28% in Portugal, withdrawing from Roth etc . How to manage having to pay taxes in both US and Portugal. That would really help so many people who are thinking of moving to Portugal.

[@IAMElsLife]

👍 Thank you.🤔

[@dlittleton6514]

Thank you both for the information; highly informative! I hate I missed the Tiffany’s session

[@danelledautrievesanford]

Going to have to watch this again later. Very useful information.

[@OurRichJourney]

Watch it again and again! Hehe! :) Thanks for watching Danelle!!!

[@ogo316]

@Our Rich Journey .. because of you guys I enrolled in a HSA account with my job . Learned a lot from you two

[@KingWillSkill]

First comment. Y'all are awesome.

[@OurRichJourney]

Aww, thank you so much Will!!!!

[@mimiwallen]

This video is so on time! Especially taxes on brokerage accounts. Let’s goooo

[@heartfullydone]

Thank you, Christina and Amon! I didn't yet know that the HSA money can also be used for non-medical purposes. That's a big game-changer in my thinking. Sending a hug from Porto and happy birthday to Sunoa! OMG 15 years already! Time is passing!

[@genji4239]

Is rental income generated in Portugal taxed by the Federal Gov't in the US?

[@aprofessor5862]

i assume depends on your nationality and resident status eg do you live outside of the USA most of the tax year. that is how it works with UK tax.

[@marcosdebrito2028]

We are moving to Portugal: We have a small pension from USA and income from a few rental apartments, We are confused about the tax that we are going to need to pay here in the USA and in Portugal, Could you please explain it to us? Thank you so much,.

[@deshakon]

Since it seems Portugal recently made changes to the NHR status it would be helpful to know what these changes are and how this will affect people hoping to return win Portugal in the future. (Me included) thanks again for another great video!

[@stacyjohnson7395]

As Always Great Content...Thank you!

[@vickieng4260]

Very helpful . Thx so much

[@primepanda]

Thanks for the video! Does the tax law change now that you are tax residents of Portugal? I understand that as a US citizen, you are still required to pay US tax. But, for example, Portugal has a different system for capital gains tax.

[@sharmainewilliams8950]

This is a gem 💎

[@Jim-gq6ws]

Great video, thanks. Have you all done a similar video that covers the Portugal side of the equation? I've searched your channel, but unless I missed it, I don't see one. If you haven't done one, do you have any plans to? I'm considering a move from the US to Portugal, but want to better understand what my tax obligations will be in both the US AND Portugal (both with and without NHR) to plan my budget accordingly. I've yet to find clear information as to how Roth IRA withdrawals are taxed, for example. I *think* I understand how traditional IRA and 401K withdrawals are taxed, but wouldn't mind some info on that too. Another thing I'm not clear on. I plan to sell my house in the US, then move, but don't know if I'll be taxed on its capital gains when I get to Portugal. I'm sure you two have been through all this already and your insights would be appreciated. Thanks again for your videos

[@frenchiemomma201]

Another great video! No fluff, all meat!

[@paxman76100]

thank you

[@christinecoleman6460]

What if you rollover your 401K to a Roth IRA and you withdraw from the Roth IRA and you are 60 and older?

[@me-lg1yw]

Rolling a 401(k) to a Roth IRA is a conversion and the taxes will be paid in the year converted. After that, you can take the money out of the Roth IRA tax free.

[@scottc9573]

This channel has really helped me over the years! Fyi, I do a ROTH 403b for my contributions. Pretty cool!

[@vanaanne7129]

What are your guys’ opinion of the new bill about Roth IRA conversion and closing the loophole??

[@christopherhorruitiner1067]

Don't qualify for an HSA because I have great government healthcare. I know you guys were fed workers, how did you take advantage of the HSA?

[@valsacar1]

Easy, by selecting one of the HSA eligible plans.

[@mimarievega6804]

Me too same question??

[@markellis7350]

GEHA HDHP OR AETNA HDHP

[@cato451]

Don’t forget about cash. In retirement, cash is king because there’s no tax.

[@CanUNotToday]

Can you do a video about paying taxes as an expat? Do you have to pay double the tax for both places?

[@CydnieDaniel]

I am very interested in this. I know you must pay America, even if you live in another country. Even if that new country’s taxes are below 10%, it must be tough having to pay both countries? I understand the agreements to avoid double taxation, but it still must be difficult paying more than you would if you retire in US???

[@aprofessor5862]

US national? expat where? double taxation country agreements may apply

[@rosaromero7]

You read my mind, 57y and having those thoughts about taxes. Thanks you smart couple for sharing your knowledge.

[@slaltemus]

Avoiding state income tax sure but don’t forget of the other taxes like property tax and if your asked me property taxes are out pacing income taxes in state. Salaries are going up as fast as property values in my area. Still do what’s right for your situation. At least you can get creative with property taxes.

[@mmacrini]

I really appreciate the information you provide. It's clear and concise and has helped me greatly. Thank you.

[@pongop]

Thank you so much for another excellent video with more knowledge and tips. Your channel has been so helpful and like a blessing to me.

[@michellet204]

When it comes to a capital gain, you are technically selling your original contributions right?

[@WalletInvestUSA]

Can we cash out the money little by little from the Roth IRA after 59.5 ? Ex: cashing out a little every month/year etc so we keep most of it in it growing still

[@ccul0439]

Please universe give me an Australian equivalent of the Our Rich Journey dream team

[@annettewess1572]

Thank you so much for this video. I was stressing thinking about paying taxes when I retire.

[@TheahLil]

I have the option of doing traditional AND roth style of 403b and 467b. Should I look at them as the exact same as Roth IRA? What should be the order of operations betweent these kinds of accounts?

[@a.f.2099]

Always good stuff on this channel, BIG THANKS 🤙🤙❤❤

[@saracain620]

We would love to move to Portugal and have started looking into taxes. Can you please do a video on taxes for expats in Portugal?

[@claudiamarques254]

Yes, please!! We are planning to move to Portugal in the next two years and would love a video on taxes in Portugal.

[@tamarahildegard1688]

AS US citizens and Portugal tax residents, you have not discussed the required 28% capital gains tax you have to pay to Portugal every year. Can you elaborate on that? Or are you under the NHR status? thanks

[@tonysomewhere5920]

Parabéns, ótimo vídeo.

[@OurRichJourney]

Obrigada Tony!!!

[@kaneethagrant8113]

Thanks for content. Is it recommended to move funds from a 401b to a roth account?

[@liveurfabexistence]

Thank you for this video. What retirements 457 account where you can withdraw at any age without penalty as long as you separate from service.

[@deshakon]

Question: If I remove 55k a year from my brokerage (50k is what I contributed and 5k is capital gains/dividends/earned) would my income be considered 55k or just 5k? Since I already paid taxes on the 50k

[@druwsdaman]

Only the 5k profit would be seen as income

[@valsacar1]

You sing the praises of Roth, but left out the downsides of possibly having paid more in taxes earlier and having less to withdraw then traditional...

[@AKim-uu4hg]

Such valuable information - thank you both! This is a saver to listen to multiple times in order to get the gist of all the important info you’re sharing!

[@hiroyasusugihara3897]

Very helpful. Thank you. I look forward to watch next video related to tax again!

[@HighCountryRambler]

I vote for a flat tax with no exemptions. So regardless of income EVERYONE has a dog in the fight.

[@jerryb1901]

Thanks for the HSA!

[@yogi2596]

Will your Roth IRA will be taxed in Portugal if you continue to live there when you start getting its distributions later in life? I understand that Portugal now has taxation of 11% on worldwide assets for new residents. This includes Social Security payments. Can you address these topics for expats from the US?

[@slaltemus]

I am not 100% on this but I was told to save all my medical receipts where I paid cash while I was accumulating the HSA over many many years then say at 65 I can pull it out without any taxes if I turn in them receipts in at one time I can get it out tax free as long as receipts over the lifetime cover the value I remove.

[@jdp486]

Money for reimbursed "qualified" medical receipts is tax free no matter when you get reimbursed, not just in retirement (Not insurance premiums unless you're 65+ and paying for Medicare Parts A, B, D premiums and Medicare HMO premiums). You wouldn't want to remove funds/pull money out, so much as submit the receipts for reimbursement. The reason some people recommend keeping the receipts until retirement instead of getting reimbursed right away is the portion of your HSA that you're investing can keep earning interest if you delay reimbursement. If you're not investing your HSA funds, it makes more sense to get reimbursed now.

[@edyeagle1961]

Are dividends from VTSAX qualified dividends?

[@navin800618]

I've been waiting for this, thank you!

[@cyclops9125]

Do you invest in real.estate

[@denorrisd]

Great video and information as usual. Could you go over the pros and cons of transitioning funds you have from a brokerage firm into a lower cost firm like fidelity or vanguard or leaving the account and starting over with lower cost firm.

[@sport07-o2l]

Me too!