Overlooked tax free retirement income

[@TedErhartCFP]

👉Check this out for more information on how Social Security benefits are taxed: kzbin.info/www/bejne/mZPMcqd7idOSiqMsi=jhjMSc8uXffCf4lx

[@bjcycle]

Just discovered your videos Ted. Thank you. I especially like that you display the actual 1040 and schedules (the other video i viewed). I makes it so much easier to understand with real documents and numbers versus others that try to explain things on a white-board. Thanks so much!

[@learning.finances]

Great video Ted! About 2 years ago, I started learning more about taxes and am very grateful to have done so. I had watched another video (can't recall the name of it) that provided information similar to what you showed. However, your video, as another person stated, was very clear and easy to understand. Thank you for taking time to create these videos and providing me and others a "free" education. Regarding taxes, I am amazed how many people (including myself at one time) don't pay attention to taxes and tax strategies. What I hear most people say regarding taxes is "I don't like to pay them", lol. However, these same people are typically the same people that don't know much, if anything, about taxes. For example, I remember my parents always "hoping" to get a tax refund, which at the time, I thought yeah who wouldn't. However, now I realize that if a person understand taxes, you don't have to "hope" for a refund. You can strategize and plan to either get a small refund or plan to pay a small amount when one file's their taxes. Education is so important and unfortunately many don't see or desire to educate themselves about taxes and very likely end up paying thousands or even hundreds of thousands more in taxes than necessary. Based on my projections, my knowledge now of taxes and tax strategies will likely reduce my overall taxes by a few hundred thousand dollars over the next few decades of my life (I am only 48 years old). As one person stated, "A lack of knowledge (in this case about taxes) can be very expensive. " :)

[@karenxi91]

This is the best video to explain tax planning, great job!

[@lindatodd4411]

It was truly an emotional time for me when I got sudden $6m, I registered with a fiduciary ASAP, who helps me manage my portfolio. I diversified about $2.3m into a 6 funds portfolio, which is doing tremendous. now I have steady dividend income weekly depending on trade and its all Tax free. She is the best thing that happened to me as an investor. I honestly don't Let that little% bother me. 🌹✅

[@veliadisrosasjr1647]

I am looking for how to venture into Dividend investing on a long term basis, I really seek to create an alternate source of income. how did you find a good Fiduciary?

[@lindatodd4411]

Sincerely speaking i work with Essmildaa Morgan , and will continue to buy and trade. I will stick to her guides for as long as it works.

[@veliadisrosasjr1647]

Did quick research on her, She has pretty decent credentials, left a well organized mail after going through her webpages & reviews. I found this very helpful, Thank you!

[@peterbell1580]

Essmildaa Morgan has been the key factor in the buildup of my dividend growth portfolio. I am learning more and pushing more to buy assets, with one goal of steady dividend income.

[@anthonypayne8106]

Congratulations on your breakthrough. Essmildaa Morgan is finally getting the popularity she deserves and this doesn't come as a surprise.

[@swatigee]

It would have been nice to see you follow thru with a suggestion on how this hypothetical couple would actually withdraw the money. Examples help to round out the “academic” problem of how to take distributions. I do like that you showed the 1040 tax form.

[@rzhang3039]

What a great video! Thank you 🙏

[@adabamas]

Great stuff, I like the visual component, makes it easy to follow. I wonder if Warren could convert it to a new Roth IRA or is it too late. Also, even if SS were taxed, it still may make sense to convert more IRA money over to the Roth. I imagine it depends on various assumptions and the optimization math on that would be even more complicated.

[@TedErhartCFP]

You're thinking strategically! It definitely could make sense to take some additional income in the first two tax brackets which are 10-12%.

[@Maruman_man]

This is awesome information. Thank you. Is there a timeline the standard deduction had to be drawn off the Ira or the taxable retirement account?

[@RodHardin]

Very good. Then if you try and figure the Medicare, state income taxes, etc. it can become very complicated. It took me about 5 years to optimize all this. It would be great if there was software that just did this.

[@QuaaludeCharlie]

I Live on my SSI $943.00 a Month , I Own a House and Car.

[@puddy007]

I always find your videos very informative and easy to understand. I have a question as it relates to Warren and Susie making a withdrawal from their pre-tax IRA. What if they paid the taxes on the withdrawal during the quarter in which they made the withdrawal or even at the same time they made the withdrawal. Then, at tax time they realize they could have made the withdrawal tax free as in one of your examples? Is there some way they can get that money back and/or what other options can they utilize? Roger

[@TedErhartCFP]

Glad the videos have been helpful. 🙂 Very straight forward answer. If Warren and Susie withheld because they didn't realize their distribution would be tax free, they would get a refund when they ultimately filed their tax return.

[@vafp1]

At some point they have to take RMD’s and will probably have taxable income

[@TedErhartCFP]

Yes, depending on the size of their pre-tax accounts. That said, the concept in this video also applies to people that have no pre-tax IRAs/401k but they may have unrealized capital gains, tax deferred appreciation in non-qualified annuities or deferred interest from savings bonds. Might have to do a separate video on this! 😀