Pre-Retirement Tax Planning: Things to Know to Save Big in Retirement

[@PhuongTran-dj6hl]

Thank you for the tax strategies you suggested

[@richdewitt760]

Great knowledge James! Rich

[@michaelswami]

Excellent presentation. Thank you!

[@markb8515]

Thanks James for another very informative video! I hope that you had a Happy Birthday!

[@russlavalle]

It sounds like Jodie might want to consider not contributing as much to the Roth vs Traditional while she's working since her tax rate at retirement will likely be lower than her current rate.

[@polymath5119]

Good show. Kudos to Jodie for the significant homework done prior to submitting the scenario for podcast discussion. The reminder that it is ok to use a reasonable amount of Roth savings to stay in a lower tax bracket is poignant.

[@sergiosantana4658]

keep in mind that the standard deduction and the personal exemptions also are indexed for. inflation

[@andrewgarcia2868]

If the standard deduction stays at the same calculation that is true, but the standard deduction is going back to 2017 levels in 2026 unless something changes. So it will be cut in half approximately.

[@markstone6263]

out of curiosity when you compare the scenarios of taking all from traditional IRA in year 1 and all from Roth in year 2 vs a mixed approach, do you also have to consider that you are losing $85k in her Roth that would have otherwise been making future tax-free earnings? but perhaps that is why you mentioned that looking at cash-flow makes more sense, bc in your example in the mixed approach wouldn't they just pull less from the accounts bc they would be paying less tax overall, bc they would end with the same amount to live off of in the first scenario?

[@BlindArmyVetern]

Inflation is never going to stop increasing or even keep goods and services at the current prices and proof is below with historical averages of the cost of living increases that beneficiaries receive in the past 48 years. The cost of living increase for Social Security Benefits between 1975 to 2023 is 3.8%. Of course, that'sj just the average. There were some yearsi with 0% increases (most recently, 2015) and some with double-digit increases (1980 andi 1981). There has been no increase of 6% or more since 1983 -- except for 2022, which featured an 8.7% hike. That means that inflation rate increase total of 182.4% over the past 48 years! Which in 1975 the average benfit was $157 and if that individual lived in 2023 their benefit would be $942 a month. In saying that not being proactive and not planning personal finances for future inflation of goods and by budgeting, eliminating debts, and saving for the future unexpected expenses will lead to financial hardships. 0:32

[@EsperanzaCarrion-gl3gz]

Hi James, I'm a big fan of your channel and getting ready for retirement in 18 months. I still have to better figure out the tax planning piece and wanted to seek your firm's assistance. I went to your website but didn't find tax planning services. Can you direct me to the right person? Thank you so much, MariaFromNJ

[@nutria12247]

Jodie seems to have a good handle on things. I'd probably hire her to manage my money!

[@toddmaniatoddmania9844]

How does one put $55,000 into a Roth each year?

[@SpoonyLuvification]

Mega back door roth conversion if plan or employer allows

[@rayhughel1508]

Over 50 in 2024 can contribute $8k/yr (under 50 = $7k) so a couple can do $16k but in separate accounts of course. If $55k is the question then the remainder would have to be via conversion.

[@andre-l3j]

Large scale traditional IRA to Roth IRA conversions to cap out taxable income brackets on an annual basis is one way. As there's no limit to the size of said conversions, if one had ample cash reserves to pay the tax of the conversions from the IRA to the Roth IRA ($10-15,000) based on the brackets involved, one could get / put $55,000 into a Roth annually.

[@jamesvalley3456]

Matching

[@CManinLa]

How can someone age 57 with a high annual salary same 880K in Roth IRAs?

[@Sylvan_dB]

Either growth (purchase cheap stock and it goes up a lot, like buying NVDA 10 years ago) or doing 401K rollovers/conversions.

[@jeffreyreid]

I could see this if they were under the income limit in the past or did backdoor Roth contributions, but she wrote that they put $55,000 to the Roth per year!? That makes no sense to me. 1:29

[@chrisbck]

Could be the Roth IRA is from a rollover from a former 401k where there's no income limit and the contribution limit is 3X Roth IRA limit. Currently someone 50+ can put away $30K in their Roth 401K with the catch-up

[@johnh5008]

Maybe they converted some of their regular IRA's to Roth IRA's, and paid the taxes on those conversions. Hard to say.

[@richmurphy8144]

Mega backdoor Roth for many years, and long bull market?

[@MidlifeCrisisManagement]

Jody has paid a lot of taxes already. hope it was worth it moving forward...

[@kelmartjack]

Please don't. I find that distracting and won't be able to concentrate on your voice.

[@mandypdx]

Jody has not actually researched anything (and understood). She is someone who needs help :)

[@FIRE_DrNinjaTurtle]

I saved this episode so that I can do a KZbin video on my tax plan based on the thresholds

[@jordanaddley1832]

Would you want to play some soft music in the background? Can increase the engagement and create a nice ambiance lol

[@stephelast9161]

or some visual numbers, rather than just running through them verbally.

[@RoninKurosawa]

Please no. That is terrible advice.