I am 76 years old and had to make most of those hard decisions that James is talking about. I had to learn a lot from watching various youtube video and subscribing to a lot of financial newsletters over the years. James is good at what he does and he explains it in simple, understandable terms. Great job James.
@RootFP
Жыл бұрын
Thanks Gil!
@richardallen6432
5 ай бұрын
My sentiments exactly...I have limited brain cell capacity and James makes it easy to understand.
@francisdeans9610
2 жыл бұрын
Ok first your right about the $80,250 being tax at 12%. But that's after exemptions. Where you're wrong is that you get a tax exemption for being married of $25,100 so you can actually take out $105,350 and only pay $9235 in taxes which is more like 8.8 percent of the $105,350. You get to keep $96,115 not bad for only 12% tax bracket. Remember the first $19,750 is taxed at 10 percent. Plus the 25100 exemption at 0 percent tax gives you that 8.8 percent total.
@joycewright5386
2 жыл бұрын
But don’t forget IRMAA. The taxes on Medicare are calculated before any deductions.
@micheleyoungblood
4 ай бұрын
@@joycewright5386using the numbers Francis is speaking about - staying in the 12% tax bracket, IRMAA is not a problem requiring concern
@avantsoapstudio6654
2 жыл бұрын
I bought into always investing in 401Ks but now at 58 I'm having to plan for Roth conversions so I don't get slammed on taxes at 72 and RMDs. Wish I would have invested more in Roth IRAs when I was younger.
@AngelCruz-qi1ev
2 жыл бұрын
Why are you worrying about 72 worry about now. That's 14 years from now really. Retired when you want to. Not when the government wants to.
@avantsoapstudio6654
2 жыл бұрын
@@AngelCruz-qi1ev I agree - but knowing that when 72 hits I'll be paying excessive taxes on my RMDs it does make some sense to start planning now on how to offset some of that.
@keller1334
2 жыл бұрын
The fact that you have to jump through so many hoops to keep what is rightfully yours should be illegal.
@user-qc8vj3vp9v
2 жыл бұрын
Agreed
@user-ty2uz4gb7v
Жыл бұрын
Taxing social security or really any retirement funds is just stupid. I mean the whole point of social security is to provide income for people in retirement and then you're going to turn around and tax it?
@basehead617
8 ай бұрын
@@user-ty2uz4gb7vmost people who really need it aren’t taxed on it
@johnbrown1851
7 ай бұрын
@@user-ty2uz4gb7v would be different if the non taxable amount increased with inflation.
@elviegoodness
Ай бұрын
Biggest lesson i learnt in 2023 in the stock market is that nobody knows what is going to happen next, so practice some humility and low a strategy with a long term edge.
@Andrew-zh6jl
Жыл бұрын
Comprehensive video that pulls together all the aspects of income, taxes, provisional income, Roth conversions and Medicare surcharges that I am concerned about. Many financial planners are focused on growth of portfolio and seem to be less concerned with these things, which can end up being very costly to the portfolio.
@sct4040
3 жыл бұрын
Age 62 now, I plan to apply for SS, then my 403B/IRA accounts, then Roth in that order. My father died at 60 and never enjoyed a dime of his savings, working hard all those years. We never know how much time we have. SS is supposed to be for my lifetime, and what's left from hubby's account.
@RootFP
3 жыл бұрын
That's exactly right. We can plan all we want, but we really never know.
@Dr.TJ1
2 жыл бұрын
One more point about tax deferred accounts, which may only be a consideration if the amount in tax deferred accounts is significant. If you are single and die early, your heirs will have to withdraw all the money in those accounts within 10 years, which means if they are still working, they have to add those withdrawals to their work income. That means the withdrawals could be taxed at a much higher rate than if the retiree were taking the withdrawals. For example, if there is $1 million in a traditional IRA and you die with one heir (a child) and your child makes $80,000 at their job, the child would need to take at least $100,000 out of the traditional IRA every year for 10 years to draw the account down to 0. This would push their taxable income to $180,000, some of which is taxed at much higher rates. I say at least because if the traditional IRA is invested and continues to earn, the child will have to take out more than $100,000 per year which means even more of it would be taxed at the higher rates. On the other hand, a Roth doesn’t have to be closed within 10 years and there are no required minimum distributions. So my strategy is to move a portion of my traditional IRA to my Roth every year to potentially lessen the tax burden on my two daughters.
@RootFP
2 жыл бұрын
Good point.
@TheFirstRealChewy
Жыл бұрын
Find the fountain of youth.
@Old_Sailor85
Жыл бұрын
Like I care what taxes my heirs need to pay. I saved that money for my wife and myself. They can have what's left, if anything.
@rayzerot
10 ай бұрын
@@Old_Sailor85Right? I'm raising my kids to be self-sufficient. Any money from me will be a pleasant bonus to them. You don't need generational wealth if you have self-generated wealth built off a solid childhood foundation
@jameswitte5676
8 ай бұрын
Wealthy families stay wealthy because they plan ahead.
@edwardlozano9619
Жыл бұрын
This is the best representation of the variables facing imminent retirees that I havd seen. Quite comprehensive. Thank you.
@janibeg3247
2 жыл бұрын
Taxes are the single largest expense in our retirement.
@denniskirschbaum9109
2 жыл бұрын
This is one of the best videos I have seen on this topic. You are a natural teacher.
@RootFP
2 жыл бұрын
Wow, thank you!
@patriceingrassia3862
2 жыл бұрын
I really got a lot out of your video as I am looking to retire in 1 year. Could you please always include stats for singles not just married filing jointly- there are a lot of us singles out there thank you for all your hard work
@stevewoods8116
Жыл бұрын
Agree with you, I need single information!
@dancasey9660
3 жыл бұрын
Live off taxable accounts or cash in the early years of retirement, delay Social Security and do Roth Conversions to the maximum of the lowest possible bracket possible. For most that will be the top of the 12% bracket.
@irishrover1417
3 жыл бұрын
Spot on and ACA credits to reduce HC costs
@Antandthegrasshopper
2 жыл бұрын
Doing exactly the same and I'm retiring early at 56.
@noureddineelalam75
2 жыл бұрын
Be careful. You may not see much of your ss income. If you don't use it, you lose it.
@dancasey9660
2 жыл бұрын
@@noureddineelalam75 Doing it for my wife as my benefit is larger than hers. Maybe I go early, but given how healthy my wife is, how well she eats, and how much she exercises, she'll probably live to 100!
@noureddineelalam75
2 жыл бұрын
@@dancasey9660 You are a good man. I didn't think of the spouse expecting less, and is perhaps younger. Good luck!
@christinecurto4140
2 жыл бұрын
this information is invaluable. the manner in which you convey is precise, easy to understand. It gives good direction on how to think differently about this whole retirement strategy. Thank you so much! Love LOVE your content!!!
@10469
4 ай бұрын
I’ll be retired with 100k So basically I’m going to be screwed still killing me with taxes. But I do intend to enjoy my retirement.
@acajudi100
Жыл бұрын
I do not eat pork, and I dropped Pepsi, and steaks. I like chicken wings, fish, greens, grits, eggs, cheese, potatoes, nuts, Schweppes Ginger Ale, powder milk, cereala,popcorn, chips. , Mazola corn oil,butter, beans. spaghetti, tomato sauce , Louisiana hot sauce, corn bread, coffee ice cream. 96% ground beef. turkey bacon. Corn beef hash, tuna, sardines, soups. crackers, wheat toast. etc, I left the USA in 2021 at 79, for a safer and less expensive country. My expenses are 70% less than the USA
@patrickchappell5821
2 ай бұрын
So very helpful! 5 years from an early retirement at 60. We are pretty much our example: 62,000 pension; 1/2 million in IRAs; & another 1/2 million in investment account. We'll supplement income with investment account while we convert IrA to Roth while ensuring we stay in that lowest tax bracket.
@bigbri3410
2 жыл бұрын
Great info. You explained in clear simple information. You should do a fee based zoom meeting per person so you can expand your business reach. Not that you need it but there are few people out there who explain it as well as you do. Nice job
@jrcll7856
2 жыл бұрын
i`m 62.. but i`m delaying S/S till i`m 67... and till then i`m drawing from my 401k for my monthly income, thats why i put 12 % and more into my 401k for this reason ... unless you work and get paid under the table...YOUR PAYING TAXES
@roberttaylor667
2 жыл бұрын
Well done. I have been using these strategies for years, This video confirmed I was right. You never know what life will throw at you. I have tended to us my IRA last because as I get older my medical bill increase. Going to a nursing home would really add a lot of tax deductions, almost guaranteeing that the IRA distributions would be taxed low or zero. That would leave more cash to cover my bills and reduce the impact on my wife or my heirs.
@philschiavone101
Жыл бұрын
I will be a net saver for the first 5 years of my retirement. My plan now is to send small amounts from my 401K to my Roth and pay the taxes now. By the time I need money for health reasons I would be pulling from my Roth.
@chickenbohaine
2 жыл бұрын
Excellent job explaining the many variables at play in retirement planning! This is one of the best videos I have seen on this subject! You have gained a new subscriber here! 👏🏼👏🏼👏🏼
@RootFP
2 жыл бұрын
Thank you!!
@michaelwightman4358
Ай бұрын
💯 Great Advice 🥂
@edcastillo4456
2 жыл бұрын
If someone has to rely upon their portfolio for 50% of their income, then you also have to disclose the volatile nature of that portfolio, and the likelihood that in some years they might not be able to withdraw the amount intended. Even conservative allocations ( mostly bonds or fixed income) are susceptible to interest rate risk, and might not yield enough to meet income needs, unless it's a sizeable amount.
@seantango2754
2 жыл бұрын
Taxes is why I plan to start withdrawing from my 401K up to my tax bracket in pre-retirement and put those funds in my ROTH or maybe my HSA. Have another couple of years to decide that. When I retire in 10 years, I won't have to worry about a big tax hit.
@luisabellon5869
2 жыл бұрын
Clear and concise. Hopefully RMD age will be increased as we are now living longer than ever before. ROTH investments are not guaranteed to be tax free, as the fed needs money, they will change the rules, they have already done so! For example, SS payments used to be tax free, not anymore!
@SteveJC
2 жыл бұрын
It was two of JoJo Cabbage Brain Biden's votes to tax, then later increase the tax, on Social Security which is taken out of paychecks BEFORE taxes. You're right......They'll go after ROTHs next.
@mikethompson3534
2 жыл бұрын
Government thieves
@Roamey71
Жыл бұрын
Great video. Next, you should do a video on what investments to pull from for the actual RMDs. During bad years, do we pull from bonds or income mutual funds or growth funds, etc to meet the demands of the RMD. I assume you would want to pull from your better performing funds or stocks for your RMD income.
@joelpless4214
Жыл бұрын
Thank you, James. I hope to work until I am 70 and then collect Social Security, so what you said about income coming from non-retirement accounts was meaningful to me. Keep up the excellent work.
@RootFP
Жыл бұрын
Thank you!
@tomj528
2 жыл бұрын
Nice summary of the issues involved but at 9:15 you accidentally referred to a Roth IRA account as tax-deferred. Realize that taxation at any point is driven solely by spending. This "typical" example that "needs" a $100K/year income is nothing but a recipe for taxation on so many of the different levels that you mentioned from LTCG/QD, RMDs and higher medicare premiums not to mention the "Tax Torpedo" and the "Widow's Tax Trap". All of which can easily be sidestepped with a lower "need of money" and tax planning. Imagine how the entire situation changes when rather than trying to minimize taxes you don't settle for anything less than a complete elimination of both federal and state income taxes and because you're spending is low there's even "head room" in your income bracket to do Roth conversions slowly and under taxable limits. Honestly, with a paid off home and no other debt it's surprising how low spending goes and how income can easily be managed to remain tax free.
@josephsullivan8654
9 ай бұрын
James - excellent video! Your senario was exactly what Im dealing with today in retirement. Im three years into retirement and now focusing on the taxes im paying and where do I pull for my income streams. Between social secuirity and pension, Im already in the 22% tax bracket. Any additional funds Im paying 22% and 24%. I keep looking at all three buckets and playing around with the numbers. As you said, there are multiple ways to get the amount I need to get to every year. I will reach out to you on your website and see what your consultation fees will be. Joe
@jacksummer854
Жыл бұрын
Begin collecting SS at 70, RMD at 73. Be smart!
@silverstar4289
9 ай бұрын
And not collect nearly 100,000 by drawing asap. Not too smart.
@denniss3980
Жыл бұрын
In my case I can take up to 12K a year from my pretax IRA and pay zero taxes, I will be doing this and as I don’t need the money right now I will be rolling it over to a Roth
@LNDN_73
6 ай бұрын
Clearly presented and easy to follow. Thank you.
@swingman50
Жыл бұрын
Between social security and 401k and investment accounts I'll have over $100k easily. I'm thinking i should start hitting up the 401k account first while delaying SS to 70 to help later tax wise with RMDs. Currently 66 yr old. Thoughts?
@ButcherBird-FW190D
4 ай бұрын
I'd say yes.
@GotGracexxxxx
2 жыл бұрын
Great points. Lots to think about there. I’ve been working on growing passive income (rentals), with the goal of not having to touch brokerage and retirement accounts after I leave my W-2 job. However, you have provided reasons to look at drawing from tax-deferred accounts, for instance, even before RMDs kick in. In fact, I suppose that in certain situations, it might maximize tax efficiency and life enjoyment to retire some number of years earlier, and substitute tax-deferred account withdrawals for active income.
@sandraconway
2 жыл бұрын
Hi I have listened to a few of your videos and find the advice very helpful planning for retirement. As a single person going from a twice a month paycheck to SS and a 401k, It’s all extremely overwhelming for me to say the least! I know I will have to change location since Cali living is unaffordable even before retirement! Help please for single people options. Thanks
@rylandcurtis
Жыл бұрын
It's worth noting that this withdrawal sequence is a general guideline, and there may be exceptions or variations depending on your unique financial situation.
@stanm2.0
Ай бұрын
This was a great piece of content. Super clear, straight forward to understand with great information and answers on where and why to pull funds from certain accounts. Thank you for this.
@papasquat355
7 ай бұрын
Everyone needs to understand this. Deferred comp and roth accounts are tax benefit accounts on the front and back end. In draw you would use a calculated combination of taxable and tax exempt to retain the lowest possible tax rate.
@Patrick-xo8ht
2 жыл бұрын
Fantastic video. These are all issues I’ve been thinking about and this video did a great job summarizing them all.
@RootFP
2 жыл бұрын
Glad to hear it!
@jedk1756
11 ай бұрын
You explain things very clearly. Thanks for the videos. Lots of helpful info.
@brahmmauer7437
9 ай бұрын
My income in retirement is more than double of what I was making just before I retired earlier this month. Dividend paying stocks (especially in a Roth IRA) is the way to continue to get income in retirement.
@gregorymcmahan3914
2 жыл бұрын
James, Good advice overall. You hinted at the onerous trade-off between immediate income today (from an investment portfolio) and taxes, and the trade-off between taxes and continued portfolio growth and longevity (while hopefully throwing off income). Keep up the good work!
@RootFP
2 жыл бұрын
Thanks, Gregory!
@johnd4348
2 жыл бұрын
I would like to know the percentage of people retiring who plan live on 100 K a year. Most people don't even make 100 K while working.
@RootFP
2 жыл бұрын
I’m not sure the exact percentage. I just use it since it’s a round number and makes it simple to do the math in my head!
@Binatasj
2 жыл бұрын
If you live in the Bay Area, $100K/yr may not be enough specifically if you still have mortgage to pay on top of health care cost.
@johnd4348
2 жыл бұрын
@@Binatasj Which is why no one should live in the Bay area and expect to retire comfortably. I moved to TN and the average income here is around $30 K. Being debt free I believe I can also live on this comfortably.
@Binatasj
2 жыл бұрын
@@johnd4348 I totally agree with you, but it’s easier said than done. All my family and friends are in the Bay Area, and I’m not about to move unless they start moving somewhere else.
@johnd4348
2 жыл бұрын
@@Binatasj Understood, I did not move until I could no longer afford to live were I was and my parents had passed away. All I can say is SAVE , all you can.
@paulanderson2464
2 жыл бұрын
Sure looks like We'll be switching from an 8hr/day job to 24/7 guard duty on the nest egg... "halt, who goes there? " Hope there's still enough time to enjoy some of it.
@thomassciurba5323
7 ай бұрын
The accumulation phase is relatively easy, the draw down phase is very complex.
@johnd4348
2 жыл бұрын
4th account is CASH. If you have cash and live on that . CASH is not taxed.
@NachelBeerEducation
2 жыл бұрын
Cash was already taxed (if accumulated legally)
@johnd4348
2 жыл бұрын
@@NachelBeerEducation Then they cant tax it again. But you can spend it and live off of it and reduce your tax libility going forward. If I have $500K in cash. and live off of $40 k a year I can live for over 10 years and pay little to no federal income taxes. In the meantime my IRA and 401K money grows tax deferded for 10 years By that time I can live off the income of the retirement accounts.
@davidwarnke5990
2 жыл бұрын
@@johnd4348 I agree, we just have to hope inflation stays low👍🏻
@dforrest4503
2 жыл бұрын
If you had 500k ten years ago and it was invested, you’d have been able to live on 40k a year and still have 500k. I agree having a decent cash cushion is important, but ten years’ worth is ridiculous.
@jpcomp5159
3 жыл бұрын
Most informative & best info I have heard for someone like myself who is approaching retirement = THANK U SO MUCH!
@RootFP
3 жыл бұрын
Thanks JP! I’m glad it was so helpful!
@everlastingarms3065
3 ай бұрын
What you say is spot on regarding only taking from taxable income up to taxable income of $80,250. But as you know, there is the standard deduction (or itemized deductions) that are not included in taxable income. In 2021, the standard deduction for married filing jointly was $21,500, so the real limit isn't $80,250, but closer to $101,750, yes? I'm sure you left that out for simplicity & clarity in teaching purposes so that people understand the best way to pull from various sources of income and to belie the "pull from taxable accounts first" theory that isn't anywhere near as accurate as what you're saying. But there really is more leeway there. Great video, as are all of your videos. So much nonsense out there, but you break down the basic math very well for people.
@AgathaLOutahere
Жыл бұрын
I have a quarter million in I Bonds purchased from 2000 to 2004 that because of the high fixed rate offered back then are earning in excess of 11%. They will remain where they are until they mature.
@blackie-jm9tr
6 ай бұрын
Great advice, thank you James.
@BSGSV
2 жыл бұрын
This is an excellent presentation with good information. Well done, sir.
@RootFP
2 жыл бұрын
Thank you
@gstlb
Жыл бұрын
Very thoughtfully presented. As of now, September 2023, IRA minimum distributions have to begin by April of the year after you turn 73. For example, I was born in 1951, so I turn 73 in 2024 and have to start taking distributions by April 2025, and I will have to keep up with how much I take to make sure I take at least the minimum amount.
@CheckThisOut77
10 ай бұрын
I believe you need to take your RMD in April of the year you turn 73.
@jameswitte5676
8 ай бұрын
I believe if you wait till the following year to take your first RMD you will be required to take 2 RMD’s that year. 1 for the previous year and 1 for the current year.
@thebige333
2 жыл бұрын
Great video but you did forget about the standard deduction of at least $12,550 (2021) so you can actually go higher on pulling from your taxable accounts before you hit the 22% federal tax bracket because it’s only talking about your taxable income.
@DougASAP
2 жыл бұрын
The example was for a MFJ couple, so the Standard Deduction would be $25,100.
@lalitpandit1510
2 жыл бұрын
The best retirement videos I have come across. Thank you.
@RootFP
2 жыл бұрын
Thank you!
@danielt.3152
2 жыл бұрын
I think he is assuming that one is spending the principal base investment, but if you have the right portfolio you are only spending some of the capital gains and dividends which you take as cash. One other problem I see is the lumpy nature of dividends and capital gains which are weighted toward the end of the year, I think the other challenge is leveling income from your investments over monthly, quarterly, semi annual and annual distributions. Also don’t forget muni bond interest is typically not taxable so you can use that instrument
@dforrest4503
2 жыл бұрын
I agree. I have a couple Vanguard mutual funds that have significant capital gains and any withdrawals would be at least 50% taxable. So this year (getting closer to retirement) I’m investing the dividends and capitals gains in a new fund. That way if I need to withdraw funds within the next few years the tax hit would be lower.
@KatieLibby1315
2 жыл бұрын
Semi retired at 59 1/2 so have had a few years to do further research. Have about $375,000 in traditional IRAs I plan to convert before age 72. We give about $10,000 a year to charities and have about $12,000 in property taxes. I was disappointed that our tax advisor never mentioned opening a Donor Advised Fund as another way to draw down our traditional IRAs. Putting $25,000 a year in our DAF and converting $25,000 a year to ROTH keeps us in 12% tax bracket and will easily have it all converted in time.
@sandraconway
Жыл бұрын
Hello, this retirement prep is causing me so much anxiety, but it should be easy-I will be pulling from my 401k, it is my only account! I really wish someone would talk about that!!!!
@Ray3645
2 жыл бұрын
Great, helpful video, James. You explain things very clearly. Thank you!
@RootFP
2 жыл бұрын
Thank you!
@HB-yq8gy
Жыл бұрын
Best explanation ever!
@mikea7942
2 жыл бұрын
Well, I for one, want to thank our awesome government for keeping everything fair, equitable, and simple to understand. Such BS ! Good vid, thanks.
@howellwong11
2 жыл бұрын
I should be so lucky to have a choice of what fund to pull first.
@snocone6228
7 ай бұрын
What a great video with what many retirees are facing. The detail was fantastic so thank you so much!
@rustymcconnell2779
Жыл бұрын
What about cash in money market or checking accounts being used first to supplement social security before withdrawal of IRA accounts? This allows tax deferred money to continue to accumulate.
@twilde3754
7 ай бұрын
Thank you! Good information.
@Kim-J312
Жыл бұрын
The only income I will have as of now is my savings account ( I saved 150k ) and had to switch to part time due to health issues. I started savings 50% of my income and live way ways below my means due to health problems 15-20yrs ago. I knew 15yrs ago I won't make it working full time till retirement age. As long as work part time till retirement and have 150K in savings as a back up . I'm 55yrs old with a lot of health problems so I'll have to wing it and will move out of Chicago because it's too expensive here and I'm really not a city person trashed with crime. Doing almost cash deal on a small home in MI or IN , so no or minimal mortgage payment. Start saving early as possible and live below your means is best advice I can give.
@davidpratt5456
2 жыл бұрын
Thanks for this clear and concise explanation.
@RootFP
2 жыл бұрын
You’re welcome!
@bvs4051
2 жыл бұрын
I found your video to be very informative and easiest to understand especially now that I'm entering early retirement. By the way, you could pass as twin for New England Patriot's Quarterback, Mac Jones
@RootFP
2 жыл бұрын
Ha! I haven't gotten that one before but I can see it. I'm glad you're finding the information helpful!
@anacaona1982
Жыл бұрын
Great Video! Very helpful & educational. Thank you for doing this.
@davewhetton8932
2 жыл бұрын
This was so helpful to us as we approach retirement. Thanks for this info. Just subscribed!
@RootFP
2 жыл бұрын
Welcome to the channel!
@davidmalone9022
2 жыл бұрын
It's also important for people to understand the meaning of a marginal tax rate. If, for example, you withdraw taxable income of $80,255 (i.e., just $5 past the 22% threshold,) only the extra $5 will be taxed at 22%. So, you don't have to be terribly precise, you just have to try and minimize the amount over the threshold. I'm always surprised how many people don't understand the mechanics of that. And, remember, it's not raw withdrawals of $80,250 - there are also standard deductions (for married filing jointly for FY 2022, that amount will be $25,900) that will automatically reduce your taxable income that can allow you to exceed the threshold by that amount. So again, in other words, if you are married filing a joint return in 2022, you can withdraw taxable funds of $106,250 while still remaining in the 12% marginal bracket.
@RootFP
2 жыл бұрын
That’s exactly right
@yt12363
Жыл бұрын
Shouldn’t taxable long term gain be tax free if it is less than $80,250?
@boywaja
Жыл бұрын
While tax brackets are marginal some government programs have cliffs. If you’re trying to keep an Obama care supplement you have to be very precise as I understand it. As one dollar over the limit and it becomes extremely expensive.
@jameswitte5676
8 ай бұрын
Same with IRMAA, $1 over and you’re paying the premium.
@markandrewsmall3984
Жыл бұрын
The critical true north should be increasing net worth. Minimizing taxes is one strategy but there are times when it makes more sense to pay more taxes because of the relative improvement in gaining net worth. Doing an IRA to Roth conversion can be an example of that. Be careful what you measure!!!
@corneliusashton287
2 жыл бұрын
Great job explaining. I almost decided to move to the next video because you look so young lol. However, you've explained the options better than the older dogs lol. Go James!
@RootFP
2 жыл бұрын
Glad you stayed to watch!
@RickyMitchell-hz4id
Жыл бұрын
Great explanation, thank you!
@stevewoods8116
Жыл бұрын
Great Information!!! New Subscriber!!!!
@Elephantine999
6 ай бұрын
Another great video--such clear, authoritative information. 👍
@cceerr11
Жыл бұрын
In the 'Understanding Your taxable income" you don't seem to realize that you should add at least the standard deduction on top of the $80,250. You need to study up on tax laws.
@loud9090
Жыл бұрын
This is my fifth year after retirement. I’ve been following the 4% rule thing, but this isn’t really how hard I expected things to be. I still have about $460k outside funds in my IRA to invest in stocks. Pls how do I take advantage of the market turnaround?
@SharonFoster852
2 жыл бұрын
There's a minimum Part B surcharge of approx. $144/month.
@tracisanders3445
2 жыл бұрын
If you want to help and educate people, use the median income! My hubby has worked for 38 years at the same company…never have even made $100,000 on a W2. You are using examples for a smaller population of retirees.
@RootFP
2 жыл бұрын
Hi Traci, thanks for the feedback. I try to use round numbers for simplicity, but I’ll look to do examples with other numbers too.
@dww1213
Жыл бұрын
Thus is great information. Thanks. I was just about to make the mistake of withdrawing from my one Roth account
@johnd4348
2 жыл бұрын
I plan on living on 25 K per year. 30 K if I travel. I'm debt free
@RootFP
2 жыл бұрын
Awesome!
@Joelegs
2 жыл бұрын
I've listened to a fair number of these videos when trying to plan for my retirement. I really liked your content and the manner in which you presented it. I'll need to listen to more of your videos. It would be nice to have some specific scenarios and add in some calculations (or maybe refer to other videos to get that detail). I know that part isn't for everyone, but I tend to get pretty detailed. Regardless, great video and thank you!
@johngill2853
2 жыл бұрын
Instead of depending on KZitem, just run your own calculation using calculators on internet. You'll find nobody knows your situation like you do
@Joelegs
2 жыл бұрын
@@johngill2853 I've got a really detailed set of calculations that I use. I've built up all those over years. Working through the math ensures I really know what is going on in the decisions. But that doesn't mean that I don't find learning more about taxes or withdrawal strategies isn't a good idea.
@johngill2853
2 жыл бұрын
@@Joelegs you are person to figure out your situation. Cookie cutter advice isn't very good in taxes
@ClaraDonnett-f2r
6 ай бұрын
Thanks so much I really appreciate u.. and I'll be reaching out to u tomorrow
@donwilliams2206
Жыл бұрын
What about qualified charitable distributions? What about calculating provisional income to see how much income tax you'll have to pay on your social security?
@barbarahall5514
Жыл бұрын
I'm 62 and I have a ways to go, but when you brought up IRMAA surcharges I lost it. For God's sake....! first....NOBODY teaches you this CRAP! O.M.G.! and what do people do when they're half crocked and clueless when they get older???? Lord have mercy. I'm so damn proud of myself for staying healthy and educating myself on all things MONEY FINANCE & RETIREMENT~! F-ing government and their F-ing taxes...that's all I got to say. James.....YOU ARE A GODSEND~! and so it youtube....❗❗❗❗❗❗❗
@Matteo-tg2vc
Жыл бұрын
> When you read articles about financial freedom, you may hear people talk over and over again about how they spend next to nothing to be able to retire at a younger age like 30. Instead, they may have already achieved financial freedom and boast about how frugal they were in order to retire well before the typical retirement age.
@toddmaniatoddmania9844
3 ай бұрын
EXCELLENT video!
@alphamale2363
2 жыл бұрын
Good overview. Thanks.
@RootFP
2 жыл бұрын
Thank you for watching!
@pedrogarces6876
2 жыл бұрын
Great explanation! This is a topic that needs plenty of attention to reduce tax burden in retirement. New subscriber!
@Post4JM
9 ай бұрын
Great video 🎉 Very informative. Thank you for the hard work ❤
@josephj7991
3 күн бұрын
Does money used for an Anuitiy count as income if money is from an IRA? IN the Obamacare subsidies calculation? Wud a $100K annuitie purchase Not the income from it count as income?
@xavieracoleman2657
Жыл бұрын
I loved this video.. you explained it excellently
@juliemarkham4332
2 жыл бұрын
Awesome information, James. Thank you!
@RootFP
2 жыл бұрын
You’re welcome!
@bingrao2876
2 жыл бұрын
great pointers overall. Thank you! Thinking about early retirement to mobilize and invest my (401)k funds accumulated over the years for two reasons: 1. Hope the self-managed investment return generate greater income than my current salary; 2. Give myself ample time to convert the traditional IRA in my 401k plan to Roth IRA before the RMD hits. Just wondered how much I could convert each year after retirement at age, say, 62, is there a amount like the maximum contribution of $26,000 i'm currently having? Thanks
@RootFP
2 жыл бұрын
Hi Bing, There's no IRS maximimum amount you can convert. Just keep in mind the more you convert the more you pay in taxes so just be mindful of what your tax bracket is when you're doing this.
@stevenbernard7991
Жыл бұрын
Bing, also consider the dollar amount you will pay in taxes and what account you will use to pay those taxes and remember to pay estimated taxes, which you can do at the time of the conversion.
@kanakCO01
2 жыл бұрын
Very helpful information in a simple language.
@RootFP
2 жыл бұрын
Glad it was helpful!
@xxxx-tb4de
5 ай бұрын
Very informative. One question - With RMD age going up to age 73 and so number of years having to take out RMD (assuming you die by age 85) becoming lesser, how do you plan for taxes for you and your beneficiaries?
@analyticreason
2 жыл бұрын
You never include the standard deduction which allows you to draw more down from your traditional IRA before you start jumping into the next tax bracket
@anthonygardner400
2 жыл бұрын
2k subs! Congratulations! Well deserved.
@RootFP
2 жыл бұрын
Thank you!
@Blublod
2 жыл бұрын
To be honest, it would help a lot if the federal government returned to not taxing social security income. This was the case prior to Reagan’s tax reforms. But I don’t see any present or future government returning to this policy because our country’s deficit is akin to that of a drunken sailor on shore leave. So let’s all prepare to be taxed to death in the future, hence the importance of this video’s content. It’s hard to remain optimistic when facing these kinds of prospects. Nothing worse than a government that takes your hard earned money to then give it away recklessly.
@cindimeyers8074
2 жыл бұрын
I was planning on drawing from investments first (62 years old)so my SS is at it's highest when i start collecting that. (67-70years old). Good plan or not? Plan is to pull $50,000 a year...no where near $80,000.
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