The Retirement Payday Routine: How The Rich Pay Themselves

[@OchoVerde]

Sucha great illustration of how one size DOESN'T fit all in retirement planning. Thanks.

[@RetirewithJulia]

Thanks so much for watching!

[@learning.finances]

Excellent example! I once thought the conventional wisdom of withdrawing from after tax accounts first during retirement made most sense until I learned about the impact on taxes from examples like the one in this video. Now, my plan in retirement is to withdraw first from my tax deferred accounts up to the standard deduction and possibly up to the 10% and 12% tax brackets. My projected RMDs at age 75 will impact how much I withdraw from age 60 to 75 from my tax deferred accounts. My goal is paying the least total amount in taxes during retirement. Again, great example!

[@RetirewithJulia]

Awesome! Thanks for watching!

[@DavidKnicks]

Thank you for always being so helpful! ❤

[@RetirewithJulia]

Thank you for watching!😃

[@matthewowcarz8259]

Thank you for this video Julia. I was literally today having a conversation about pre and post tax accounts and strategies with a much younger co worker today and will be passing this along to them.

[@RetirewithJulia]

Awesome!! Thanks so much for watching!

[@stevenester3258]

A great example, you again make it sound so simple with the proper advice and software. See you tomorrow.

[@danielmartin2995]

Are you deciding which fund to draw from in December of each year based on modeling tax projections then?

[@tomatodo8334]

From a tax perspective, I would color the tIRA red while Roth IRA green and keep Saving blue.

[@TomRiggleman]

Another informative video Julia. I am so so happy to have you and Eric guiding my strategies.

[@RetirewithJulia]

Our pleasure, Tom! Thanks for watching!

[@djm95035]

Don't RMD's somehow fit into the withdraw strategy?

[@RetirewithJulia]

Yes, of course, they do. I cover that in the video. Please watch the whole thing. You'll see that this couple drains their IRA before and during the first few years of RMD age in the best non roth and roth strategy.

[@michaelsd284]

Interesting discussion. My only concern regarding your "Optimal" plan approach us the consumption of all the financial assets that are not influenced by the economy. I prefer to hold a reserve of cash equivalent assets that can be used to replace or subsides IRA/Brokerage (i.e. market based asserts) withdrawals during down market periods. Sequence of returns is my #1 concern in retirement. Tax optimization is important but only when balanced against investment returns as I would happily pay more taxes if it was offset by greater investment earnings. Retirees need to step back and look at the whole picture so they can make the best decisions for their needs and circumstances.

[@RetirewithJulia]

Of course. We look at all aspects of a financial plan before making recommendations. If I made a video going into great detail on every aspect of a solid financial plan, it'd be a three-hour video. I have plenty of other videos on how to combat Sequence of Returns risk. Thanks for watching!

[@michaelsd284]

@@RetirewithJulia Oh, I agree to cover all aspect in a single video would be significantly long. I might suggest creating a "top level" video to give the 30k ft overview and then more detailed video's like this one. I believe a large portion of folks do not know about the big picture so its hard to make informed decisions. Also, like all things plans change so knowing options is always helpful

[@richdewitt760]

Good video Julia. One of your best to date, you always stay under 15 minutes and get right to the point--great idea showing the stats & comparisons. All good stuff with no fluff. Appreciate you. Rich

[@RetirewithJulia]

Thank you, Rich!

[@DonniGilmore-x2r]

Thank you for these educational videos. Looking forward to a chat to discuss retirement goals for me and my wife.

[@RetirewithJulia]

I do too, Donni! Thanks for tuning in!

[@JM-gk1kp]

Great video Julie! Can you provide your fees for an appointment?

[@DJohnson-od6oj]

I really enjoy your videos but unless I missed it, it is unclear what strategy you used? Did you just use their taxable bucket to fill up a certain tax bracket? Also does your firm require a minimum portfolio balance? Thanks

[@RetirewithJulia]

I said that they should use the Best Non Roth or the Roth Strategy- up to them.

[@leftysidewinder]

Mental decline, lack of liquidity for 5 years+, and inability to take a tax loss deduction make Roth conversions a no-go at age 60. They should focus on converting pre-tax to taxable brokerage assets or cash.

[@Daaannn-g6k]

Retirees who struggle to make ends meet are often those who didn't accumulate enough wealth during their working years. The choices you make regarding your retirement investments can have a significant impact. My parents both spent the same number of years in the civil service, but my mom invested through a wealth manager while my dad stuck with his 401(k).

[@FerdLerd]

This resonates with me. I’m in my mid-50s now, and my wife and I were following a similar path. Two years ago, I shifted my funds to her wealth manager’s guidance. While I’m not matching her returns yet, I’m definitely seeing higher gains than I would have with just the 401(k). My retirement fund is growing faster than ever-even before I officially retire!

[@FrankJaaay]

It’s unfortunate that many people lack access to this kind of information. It’s understandable why some panic when they don’t have the right guidance. Personally, I've earned over $287k passively by investing through an advisor, without the need for much involvement. Whether the economy is booming or volatile, a skilled wealth manager consistently delivers results.

[@Toni__Michelle]

Your advisor seems to have a strong track record. May I ask if you are still working with the same advisor, and how I might get in touch with them?

[@FrankJaaay]

Rebecca Lynne Buie has consistently been my top recommendation. She’s widely recognized for her expertise in financial markets and has a strong track record. I highly recommend her.

[@ToreyLanez]

I just researched her online, and I must say she has an impressive background in investing. I will reach out to her via email shortly.

[@rmh691]

How could this possibly include long-term care? Both of my parents have dementia and they are in memory care. The cost of this care is $12,000 per month per person. They’ve been there for over three years. No one figures this into their retirement plan. The example you give here does not provide for long-term care , should one or both of these people meet it. This is what people should be worrying about and nobody ever mentions. Expenses do not reduce to 70% but increase exponentially if you find yourself needing full-time dementia, care

[@RetirewithJulia]

I mention it all the time, just not in this particular video. Thanks for watching!

[@DIAPERJOE]

She is too hot to trust.😮

[@MikeS-7]

Alternatively, they could invest $775,000, leaving a $$25k emergency fund, in dividend stocks yielding over $38k per year, and with even a modest social security easily double the dividend income with his and spousel social security (indexed for inflation) without touching a penny of their investment principle. Draining your investments to me is irresponsible.

[@RetirewithJulia]

We didn’t discuss their investment strategy. Thanks for watching!

[@MikeS-7]

@@RetirewithJulia I believe their strategy was to take a percentage of assets, typically the 4% rule. I could be wrong. Enjoyed the video.