Відео

aaah... you don't want to pay taxes like everybody else. cuz you don't benefit from public services?

Awesome and understandable video. Thank you.

SS is terrilbly backlogged, I've heard people appeal and wait months and months hearing nothing from SS.

My full retirement age is 67. If I start taking it at 62, there’s 5 years of ss that I wouldn’t get if I waited.

I will be taking at 62 because I'll have an 11yo so they can collection 50% of my FRA till they are 19y 2mo. My wife who won't be collecting SS yet will collect 50% of my FRA till the child is 16. So this is a no brainer for me. Side note....Don't forget about Voluntary Delayed Retirement Credits. Someone who takes it at 62 can suspend and restart at 65 or later (and get the 8% yearly increase) Downside is if anyone is collecting off of that retiree's earnings that will also stop. But that could play a roll in how they plan on funding their retirement

The market has done a HUGE run-up the past few years. There's always a decent dip around the corner. Why would you pay taxes on your bloated 401k? To convert it. Wait for the dip.

Does the money you convert when doing a roth conversions show up as earned income when calculating SS benefits? Since we are taxed on them as income when the conversion takes place.

Fidelity cannot handle QCds, because they report it as taxable income and you are forced to explain it on your tax return.

quick question.... If the your assets depreciate when you cash it out do you get a capital gains credit ?

Not that easy. Had mandatory age 65 retirement last July. Income is now reduced by 75-80%. Sent in all documents via registered mail to the Naples, Fl office Dec 7, received in office Dec.9. Have proof of delivery (green receipt- but not signed). Haven’t heard a word. Finally got Social Security on the phone today. (After 3hours and 20 minutes on hold). No record of receiving my documents, nothing scanned in the system. What about my return receipt on registered mail I asked? Doesn’t matter, nothing they can do. Said I needed to start all over again and re-send everything. Great, wonderful. I’m paying the max IRMAA when I shouldn’t be paying anything.

You can bet your ass COLA adjustments will not keep up with real inflation. Historically they lag anyway, and pressure to save money will not induce SS to find you more money😂. Another factor is the national debt and political pressure to redistribute wealth in the future. It would be wise not to treat SS as some rock solid predictable asset 20 years from now. My plan is to work as long as I still feel like it so it might be another six months or six years. I have several serious health issues so that is my biggest factor in when to retire. One thing I’ll add is, my blind 92 yo father said he probably overestimated how much he would spend later in life. He has far more than he could ever spend and gives quite a large % of his income to charity and his net worth still grows every year.

so you are saying to work all my life and save to give it away to a charity, I don't think so

Great video ! Thank you! Very clear and concise.

Seems like a total no brained for someone who makes over 100k and has a pension keeping them already in same brackets

When do you stop paying Irma’s taxes?

My dream is to pay off my debts and downsize home to pay it off. The remaining year hopefully is gravy. 🤡

37% bracket......I guess we don't convert?

2020 info / need up to date 2024 tax year info

I’m 52 and just starting to invest for the first time. I’ve begun contributing to my 401(k) and opened a Roth IRA with automatic contributions. My question is, does asset allocation matter much in the beginning, or am I just overthinking it as a beginner?

why can't you take SS and do Roth conversions

"Only $100k in their Roth, started late". Why do these guys always assume Roth is best? Some of us can't afford to max out using Roth. I'm in the 24% tax bracket and my employer matches my salary 10%. With Fed and state, I would need to come up with another $12k to pay in taxes if I did Roth 401k. Since I can barely max my savings, I would have to decrease my 401K savings from $42k to $30k. Do the math on that 20-30 years and I will have so much more, I'm not worried about paying taxes on the backend. Also my effective federal tax rate will prob be ~15% when I retire and I'm moving to a state that doesn't tax retirees withdrawals.

So age 62 is when I think he should take it for sure. Reason being at age 78 (break even), he's nearing the time in life where many people already slow down their spending. At least for my parents, their 80's were spent mostly at home conserving money with short trips here and there.

So when you're working, you are paying 22% on your income over the threshold. If you have $140k income as a couple your effective tax rate is more like 15%. That's how I'd calculate it.

👏🏻 Nice video. Thank you.

5:55 Being in the 22% tax bracket and paying to convert today is NOT the same as being in a 22% tax bracket when we retire. Because if you convert @ 22% today, the capital gains won't be taxed in the future. If you don't convert, your capital gains will also be taxed at that 22%.

So the 5 yr delay to take distributions from roth conversions makes them essentially useless unless one is very long lived or has completed a Roth conversion several years before age 59.5. Also, since taking distributions to make a roth conversion from qualified retirement plans b4 age 59.5 is subject to a 10% penalty it doesn't make sense in any case. For us folks in our mid sixties roth conversions seem pointless if income is fairly high and with inflation. High incomes become meaningless as the IRS rules confiscate 42% or more or marginal dollars over the baseline income tax brackets. Seems like for the average successful professional or skilled worker/tradesman the IRS has everyone's $$ coming and going.

Am I’m wasting my money by buying whole life insurance for me and my wife ? We pay about 1100 a month for this whole life insurance

does interest income, social security income count? i retired last year and my spouse will retire in 2025. We file jointly. Since she maxes out on her 401k and contributes to an HSA her gross income will be significantly reduced. she will only work until April 2025. Thank you

Great video. Thanks

So when you turn 59.5 can you take out all of your money? or is it a certain amount you can get every month. Also when you have roth 401k are you paying state taxes or just federal?

If I would have waited to 70 I would have left 96k on the table. No thanks!!

Thank you for this practical and comprehensive example of how QCD's work. By far, the best I've seen.

What regional dialect pronounces “withDRAWAL” with the stress on the first syllable (WITHdrawal)? Every time you say that I imagine a blade of hay between your teeth.

Thanks for making the video. I'm now looking at conversions as if each one has a lifecycle. The benefits at what year you do the conversion and compare it to the year you would have had to take the money out for use or forced to by RMDs.

Democrats are wedded to the idea that taxes will only be increased on incomes above $400k, republicans are wedded to decreasing taxes on the top 1%. My federal taxes increased with Trump over $2,000 on taxable income of ~$180k due to the cap on SALT taxes, yet the top 1% had massive tax cuts. Net effect is huge increase in debt. I project that with R’s in charge taxes on middle to upper middle class will rise, cuts for top 1%, continual growth of debt. If D’s get power, significant increase in taxes for top 1%, reduction in debt.

you missed the whole point of after tax 401k contributions: you can do an in-service Roth conversion, a "mega backdoor Roth". I can't see any reason someone would want to do a non deductible 401k contribution without a Roth conversion, instead of just using a taxable brokerage account

Make good use of your retirement plans and retire early

I thought that the discussion of tax rates here could lead people to misunderstand how the tax brackets work. If you make a little extra money and you get pushed from the 12% tax bracket into the 22% tax bracket, that does not mean that all of your income gets taxed at 22%. In this case for a married/joint return in 2024 - the first $23,200 of taxable income gets taxed at 10%, the money between $23,200 and $94,300 gets taxed at 12%, and the money between $94,300 and $201,050 gets taxed at 22%. So, if the taxable income was $95,000 then only $700 would get taxed at 22%.

When you take social security is when you feel financial able to retire, another big reason is we know our birth date but we don't know our death date . So take it as soon as you can

Also, when doing your taxes if you've done a Roth conversion, be sure to use the annualized income installment method or the feds could hit you with a late payment penalty since they will think your income is pro rata.

I thought I heard that there us a "5 year rule" about how long you have to wait before you can withdraw after conversion.....? Is this correct?

Can the spouse (now employed but was previously unemployed)open and contribute to a standard Roth IRA account (with the same broker or different broker if necessary) on top of his/her Spousal ROTH IRA that was opened when she was unemployed at the time?

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

When I retired from IBM in 2018, they didn't have a Roth 401K. I never heard of them until recently.

I pick age 62

Ugh. This example is always done with couples. Frustrating.

Planning to retire at 60. Wife will start SS at 62. My pension will start at 62. Might take my SS at 65 or 67. Need to figure out a way to bridge 60-62.

The big takeaway is that we need to be saving for our retirements and not relying exclusively on Social Security. Though in this example the monthly costs will decrease by maybe $1000 per month ($500 for groceries & restaurants, $200 Medicare Part B, $100 for copays & meds, etc). Thus that $2500 reduction is likely closer to $1500 net. At a 5% withdrawal you'll need saving of some $300,000 to cover this reduction.

Hi, Mr. Sierens. Thanks for great tips on taxes and saving money. Is there any way an investor can DEDUCT lending me $1M against my farm with a deed of trust in his name at 15% annual simple interest with a 4-year term and a balloon payment at the end?

My wife and I haven't live together for many years. I'm 64 collect ssi and ssdi under 1000$ combined. Can i collect some on hers?