Retirement Planning: How to Save Potentially $600k in Taxes By Avoiding These Common Mistakes

Having the right strategy when it comes to withdrawing your retirement funds is KEY to potentially saving hundreds of thousands in unnecessary taxes. Join Troy Sharpe as he breaks down the differences between the traditional Income Tax System and Capital Gains System in Retirement, and how a few key mistakes could cost you a lot more money than most are willing to risk.
01:25 Long-Term Capital Gains Example
03:40 The Importance of Visibility
05:56 Two Tax Challenges
08:36 How the wrong distribution strategy in retirement can drag you into higher taxation
10:21 The benefit of tax analysis and planning
14:01 The price of retirement portfolios that aren’t optimally structured
15:45 Strategies to balance and optimize your portfolio
Do you need a Retirement Success Plan that goes beyond allocating funds to truly fit your needs? We can help you create a retirement life plan customized for your retirement vision and legacy. Call us at [phone] or fill out this form for a free consultation: click2retire.com/tax-mistakes
Disclaimer:
This video discusses fixed-income investing and utilizes the 10-year U.S. treasury as a general representative fixed-income investment. Conclusions reached, opinions stated, and downside risks and potential returns presented should not be construed as applying to other types of bonds or fixed-income assets. Other types of fixed-income products carry different levels of risk and return potential and should be evaluated as an element of a diversified portfolio with your specific risk tolerance, investment objectives, and timeline in mind. Nothing in this video is investment advice, an investment recommendation, or an offer to buy or sell any security. Investing involves risk.
#retirementplanning #retirementtaxes #investmentstrategies

[@bluecollarbudgets]

Even though this was a complicated topic, I appreciate Troy's explanation! Thanks Oak Harvest!

[@OakHarvestFinancialGroup]

Thank you for the comment! We appreciate your kind words @bluecollarbudgets!

[@firstlast3192]

At 7:58: Why is the 2023 marginal rate at 10%? This income is long-term capital gains and dividend and as such these rates should be used: 0%, 15%, 20%. Correct? For 2023, the tax on $92,300 of taxable income is $458. How is that derived?

[@M22Research]

A perhaps trivial issue, but we have hung onto a handful of stocks that were gifted to us. Part of the challenge was we had no easy way to determine the cost basis. But thinking this thru - we could assume 100% of the sales price to be long term capital gains… and due to our currently modest income (managed low to get ACA credits prior to Medicare), the tax impact would be zero.

[@dallison1961]

Thanks Troy! While I understood the concepts this video really brought it home for me. Tax planning is by far the most complicated part of retirement planning given how all the income streams interact with each other over the long term. That being said, it's a great problem to have vs. the alternative of living off of social security.

[@OakHarvestFinancialGroup]

Thanks for your support - we're glad to hear you enjoyed this video! You're right - tax planning can be complicated and it's something our team works hard to help our clients with in step 3 of our Retirement Success Plan. Feel free to click the link below to speak to one of our advisors if you have any questions: click2retire.com/tax-mistakes Take care!

[@mackieboy9973]

Troy, you are to potential retirees what John Bogle was to investers. Thank you for your service.

[@OakHarvestFinancialGroup]

Thank you for that feedback, @mackieboy9973! We really appreciate that you enjoy our content. Feel free to click the link below to speak to one of our advisors if you have any questions: click2retire.com/tax-mistakes

[@DougASAP]

Good stuff, thank you!

[@M22Research]

Hah! I came here to say literally, word for word, the same thing!

[@OakHarvestFinancialGroup]

Glad you both liked this one @DougASAP and @M22Research!

[@mmhodler5753]

Great tips

[@OakHarvestFinancialGroup]

Glad it was helpful!

[@ibrahimseth8646]

Taxes=600K Yield=6% Year=30 Taxes(30 Year)=600K*1.06^30 Taxes(30 Year)=3500K Payout(30 Year)=7000K { Taxes(30 Year)=3500K Income(30 Year)=3500K } Insurance: Payout(30 Year)=7000K Premium=? Yield=12% Year=30 Premium=7000K/1.12^30 Premium=240K(Cash=360K) { Taxes=600K } Note:I give the government now=360K and 30 Year later 3500K, is it ok for you. Thank you.

[@OakHarvestFinancialGroup]

Thanks for watching, Ibrahim!

[@firstlast3192]

At 10:02: For 2023, the taxable income of $92,300 is $2,694. How is that derived? I got $5,599.80. Of the $50,000 IRA distribution, $20,550.00 to be taxed * .10 = $2,055.00 $50,000.00 - $20,550.00 = $29,540.00 $29,540.00 to be taxed * .12 = $3,544.80. Total income tax system (the ‘ordinary income tax’ system): $2,055.00 + $3,544.80 = $5,599.80 Of the $50,000 long-term capital gains, 0% tax as it is under $89,250.

[@michaeleldridge5640]

standard deductions.