I opened an ROTH IRA at the age of 27 and put the maximum amount possible for 2025. I feel foolish for letting my life fall into order so slowly. The issue at hand is how to invest the funds most profitably in order to save for retirement
You're 27 years old. It is alright. The compound interest period has begun. To build a strong foundation and reduce risk while maximizing gain, I think all investors should begin with ETFs. From there, they should diversify across a range of asset classes and continue to invest consistently and systematically
You do not need to locate the next NVIDIA to be successful in investing. Simply choose top tier ETFs and work with a financial counselor, as I did. I turned $90,000 into $53,000 in annual dividends, which is a huge accomplishment for me today
Impressive! I admit I'm scared about retirement as I turn 60 on my next birthday. I need to ensure I have enough money to survive on. How can I consult your advisor? My retirement account isn't performing well
''Aileen Gertrude Tippy'' is the licensed advisor I use. Just research the name online you will find necessary details to work with to set up an appointment
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her
I’ve been hearing a lot about Roth IRA conversions lately, but I’m confused about whether it’s the right move for me. I’m 47, with a decent 401(k) and a modest traditional IRA. With taxes likely going up in the future, should I start converting now, or am I too late?
It’s not too late! The key is balancing the tax hit now with long-term benefits. Converting to a Roth IRA can help lock in today’s tax rates, but you have to be careful about bumping into a higher tax bracket. Timing and planning are critical here,consider speaking with a financial advisor
Exactly! One mistake I see people make is converting too much at once and triggering a big tax bill. Another is forgetting how those conversions could impact Medicare premiums or Social Security taxation later. You need a solid strategy to avoid those traps and financial advisors have these strategies, i have been working with one myself and this strategy has allowed me to navigate the financial landscape successfully, making informed decisions . Perhaps you should consider a similar approach.
My CFA ’’ Sharon Ann Meny, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
Just be careful when making your Roth conversions. I didn’t realize that I was close to the next tax bracket and my tax planner told me to convert because I would only pay 12%. But that was only true for 10K. I was going to convert 20K but when I ran the numbers I saw that I would be paying 22% on any amount greater than 10K. Not a fan of giving another $1,000 to the IRS.
The avg. American is having a tough time, I know I am not alone. There are others in same position as me. By certain statistics: 22% of americans have no retirement savings. 64% are worried that they will not have money in latter years while 47% of adults who are not yet retired think they have to work part-time in retirement. How can I best grow the 100k I have saved seperately outside retirement access which of course had depleted over the years?
It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimise financial outcomes, who can provide specialised advice and methods to decrease expenses and maximise income.
I completely agree; I am in my mid 40s, approaching retirement, and have approximately over 2million dollars in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.
I've experimented with a few over the past years, but I've stuck with ‘’Marisa Michelle Litwinsky” for about three years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
In most years approximately 43% don't pay any income taxes, or get back more than they pay in after returns and thats not including Entitlements (food, rent, heat etc). You want more!? If 60% of Americans didn't pay taxes, but you could not get back more than you paid in, and returns went back to pay for entitlements, America would collect way more money, and it would incentivize hard work! But I bet you don't want that do you!?
When people don't pay tax year after year they lose interest in their nations finances. Having lived in Scandinavia, I can attest that we (Americans) are ignorant about how the "other half" live. These are nations at the top of "happiest" nations yet they pay (much) more taxes. How is it possible to have less and be happier? This is not a plug for a social welfare system. It's already in trouble due to the lack of children / new workers / contributors and the increase in elderly / receivers / retirees. But taxes were easy - VAT (on most goods) and an income tax. I'd estimate 90% pay online - no advisors, accountants, long hours filling out forms, trying to contact the IRS, fear of breaking rules, etc It's a trade off - "free" college (tuition - no dorm, food, transportation), primary & high schools are far superior, health care is good but not "free". In Finland you paid for several things.
People who use "full stop" as an argument are almost always wrong. And in this case, yes you're wrong. If you don't pay taxes you don't care when the govt wastes billions or trillions on goofy nonsense. Where is the righteous indignation among Welfare recipients? Completely nonexistent. They don't care. If people don't pay taxes then they should have no say in where tax money is spent. I'd be OK if they aren't allowed to vote. Why should they?
Increasing tax rates are the reason I rolled over my 401k to a Roth. I don’t want to be 59 paying taxes on current income on withdrawals made from my retirement account. I'm now seeking best possible areas or strategy to keep my retirement contributions on track to my $5m goal.
That's right, My advisr helped me rebalance my $2m portfolio without triggering capital gains taxes by using tax-advantaged accounts and reallocating dividends and new contributions. They also recommended tax-loss harvesting and strategies to stay within my tax bracket. Thanks to her guidance, I maintained my desired asset allocation while minimizing taxes.
Your investment adviser must be really good, I hope it's okay to inquire if you're still collaborating with the same investment adviser and how I can get in touch with them?
glad to have stumbled upon this, curiously inputted her on the web, easily spotted her consulting page and was able to schedule a call session. Ive seen commentary about advisers but not this phenomenal
This is one of the best (if not the best!) income tax education and planning videos that I’ve seen in the past 5 years. Excellent, clear, correct! Thanks!!
I am looking for tax efficient way to rebalance my 800k retirement portfolio without triggering capital gain tax. what asset location strategies should i use?
The best strategy depends on your financial situation, account types, tax bracket, and investment goals. Consult a financial advisor or tax professional to tailor these strategies for maximum tax efficiency.
My advisor helped me rebalance my $2m portfolio without triggering capital gains taxes by using tax-advantaged accounts and reallocating dividends and new contributions. They also recommended tax-loss harvesting and strategies to stay within my tax bracket. Thanks to their guidance, I maintained my desired asset allocation while minimizing taxes.
I'm cautious about giving specific recommendations since this is an online forum and everyone situation is unique, but I've worked with Annette Christine Conte for years and highly recommend her. Look her up to see if she meets your criteria
I just turned 46 and awfully late to investing with barely any portfolio except my 401k, I have a decent amount of cash saved up and with inflation currently soaring AGAIN, I’m getting worried about retirement, my intention is to retire at 55. How best do I maximize my savings of over $150k
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect my funds and make profit from my portfolio this red season. I’ve made over $250k since then.
Absolutely, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with "Brenda Davies Clarke” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look her up.
Thanks for the suggestion! I really needed it. I looked her up on Google and explored her website; she has an impressive background in investments. I've sent her an email, and I hope to hear back from her soon!
It also pays to check into where you live. Property taxes are ridiculous in some states like New Jersey. It can take 25% of your income without insurance or any mortgage figured in. So you’re putting out big money just to live there even if your house is paid for. This is without figuring in car insurance then utilities and food. Have fun.
8:51 time mark: Graphic showing 2025 IRMAA brackets. There is an error in the last line of the chart. Part B Premium in the highest income bracket is NOT $432.00, it's $443.90. (I don't think those earning more than $750K will take notice. 🤭)
I'm 75+ and covered by VA Healthcare, and I tried to Cancel my Medicare Coverage, and the Government doesn't want to do that! Since the VA Covers Everything that Medicare Covers why do need Medicare/A Deduction from my Monthly Social Security Payment?
They shouldn't be charging you for part A, but they do charge for part B. You shd be able to cancel since you have VA. Keep trying till you get the right person to help you. Too many uninformed people.
Great point about Roth conversions. A lot of retirees overlook tax planning as part of their investment strategy, and it costs them big time. I’m semi-retired and made this mistake early on, but working with a financial advisor helped me restructure everything. My advisor, Joseph Nick Cahill, showed me how to avoid unnecessary taxes and improve my portfolio.
Thanks for sharing that! I’ve been doing everything myself, but I’m starting to realize there are too many moving parts-taxes, inflation, market risks. It’s overwhelming. Do you think someone like Joseph Nick Cahill could also help with balancing short-term income needs while keeping long-term growth in mind?
Absolutely! Joseph Nick Cahill has a lot of experience with both short-term and long-term strategies. He helped me shift some investments into tax-efficient accounts and suggested ways to lower my taxable income during retirement. Plus, his free consultation gives you a chance to see if his approach works for you before committing.
Nobody is asking the right questions. I'm worried about retirement and want to maximize my savings. I've tried various investments that didn't work out as I hoped, and now I'm unsure whether to invest in the stock market or index funds. Any recommendations would be appreciated.
The stock market is likely the best smart investment. However, if you are thinking of investing in the stock market and you are not well versed, its advisable to work with a financial advisor who is an expert to guide you through the process. this way you could make more profit with less risk
The truth is, the role of an investment advisor can often be overlooked but should never be underestimated. After facing a significant portfolio loss in 2020 during the COVID pandemic while trying to manage my investments on my own, I decided to reach out to an investment advisor. At that time, I had about $126K left in my portfolio. Now, without having to lift a finger, I'm semi-retired, working only 7.5 hours a week, and I'm just 12% short of my $1 million retirement goal thanks to my subsequent investments.
My CFA is Judith B. Richards, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
Thank you so much for the suggestion! I really needed it. I looked her up on Google and explored her website; she has an impressive background in investments. I've sent her an email, and I hope to hear back from her soon!
3% correction fir inflation is a bit off. Does ANYONE believe that taxes, insurance, food prices, automobile, fuel, rent, interest rates and incidentles have only increased 3% the past year? Its closer to +10%, at least, by my estimation.
Remember when Trump was in office and you could find prices for restaurant meals online? Now they simply don't show prices, since prices go up all the time. If customers took pictures of the menus over the years, compare today's menu vs. 2020 or 2018. Inflation is NOT at 3%.
Reagan had 18% inflation.. most of inflation since covid was from Trumps tarriffs ( most stayed in place) and supply chain issues. Inflation is a calculation over a broad spectrum of goods and services not just food.
After reading some of the comments, they compare countries with billions of dollars worth of mineral monies but have total population the size of Minnesota. It is great that the governments of those countries share the wealth with its citizens. In the US we spend more than we take in and will do so if we continue to put politicians in place that are more intent in filling their own pockets than that of the people who put them there.
hello, i have always understood that the 19k annual exclusion for gifts is not the limit for how much can be given to an individual in a year without being taxed, but rather the amount that can be given without formally reporting to the IRS.. you can gift more than 19k in a year without it being taxed.. up to the lifetime limit, which is over 1 million.. please let me know if i have been interpreting the law incorrectly
2 most important thing bmnot discussed - 1. Gapital gains on selling a home. You have a 1 lifetime deduction of $250K for single and $500K married. 2. SSA 50-85% tax on your benefits. If your collecting benefits and still actively working, you are allowed a cap of $23,400 for 2025. If your combined income is $23,401-$34,000, 50% of your benefits are taxed. $34,001+, your taxed 85% of your benefits. That's why the old saying sticks, There's only 1 thing in life that's 100% guaranteed, is Death and Taxes
I am aware that I am not the only average American going through a difficult moment. There are others who share my situation. According to certain estimates, 22% of Americans do not have any money saved for retirement. While 47% of those who have not yet retired believe they will need to work part-time in retirement, 64% are concerned that they will not have enough money in their later years. How can I increase the $100,000 I have saved outside of retirement access, which has obviously diminished over time?
It is advised that you contribute at least 20% of your income to a 401(k). You may determine how much you should save based on your age and income by using internet calculators. Setting aside a minimum of 20% of your earnings in a 401(k) can help guarantee that you have adequate funds for a comfortable retirement. You can use compound interest to increase your retirement savings over time by setting aside this much.
I absolutely concur; I am in my mid-fifties, on the verge of retirement, and have more over $2 million in external retirement accounts. Compared to the whole value of my portfolio during the last three years, I have very little in retirement funds and no debt. Actually, you can't reject the Fin-advisor-you can just ignore it. Just find a fiduciary one by doing your research.
The tax system in US is weird. The whole tax and banking system is so lacking regulation protection it helps no ordinary person except the thief’s stealing your savings.
What I hear you saying is we have a punitive tax system. So we’re looking to keep our income below a tax bracket, to avoid paying more tax. So make less money so you don’t have to pay more tax. That is punitive. We punish success in this country, at least in the last 50 to 75 years.
Taxing any income below $25K is criminal. I did pretty well in my career and watching the people just starting out live paycheck to paycheck was difficult for me. And then to see them taxed to death (in California) on top of that was disgusting. Now I am retired and I will do as many home improvement projects as I can afford to minimize my utility bills and income tax (solar, batteries, heat pump furnace, heat pump hot water heaters, etc).
@@tonycrabtree3416 I used to think that also. I paid for my own college by joining the national guard and working fulltime during school while my roommate went to school for free because he was hispanic (his parents made a little bit more money than my parents). I'm just stating facts, those were the financial aid rules at that time and you deal with the hand you are dealt, with that said, it pissed me off everytime I left for work and he was sitting on the couch playing his guitar and I was very angry about that for decades so I wanted everyone to pay taxes and I wanted the rules to be the same for everyone. I did well and have paid millions in taxes. I am retired now. The standard deduction for a single person is $15K, so out of the $25K a person is making, only $10K is taxable to the goverhment is taking 10% or $1K from that person. The government is also taking social security and medicare taxes from that person so that is around another 4.5% on the entire 25K. Some people might look at that and think "why should I even bother working when I can just collect welfare?" So if someone is willing to get out of bed in the morning and bust their ass at a job making $12.50 and hour, I don't think we should put another reason for them not to work by collecting $1K in taxes. Just my opinion.
How is it criminal? So it's OK to not tax someone who makes $25k, but someone who makes say $30k should pay 20%?. If you make money, you should be taxed like everyone else, just at a different rate perhaps. But this is also why I think that a flat-tax rate with deduction is better (not progressive like we have). Besides, if people only make $25k and are single, they likely will owe very little after the standard deduction anyway. If you benefit from the same services as someone who makes $100k or $1M+, then you should be contributing to chose costs too through taxes.
Just to be clear. The tax bracket is applied after the standard deduction. So if I made 30, I would have 15 after the deduction and that 15 would be taxed at 12 percent
@@jongroubert4203 we had all those things before we had a personal income tax. Maybe not snowplows so much, because it was 1913, but the rest were just fine before DC got their hands in our pockets. You are free to make a donation if you feel the need, but they should stop borrowing money in my name. I know many of us feel the same way. (BTW all but military are largely paid from local taxes)
people should not have to jump throughall those hoops and loops to prevent the IRS from stealing their money. Push the gov to eliminate all the tax code and just have a flat 10% tax for all. Also make laws that only job income and business profit can be taxed. Every other form of income should be completely off limits to IRS. The requirement to file tax needs to be eliminated for non business owners. Just take 10% from paycheck and leave people alone.
Ah yes, let's only tax the people who create jobs and value to society and let everyone else go scott free. That'll really motivate people to start businesses and hire freeloaders with no loyalty
4:50 are you saying that any money from long term capital doesn’t go towards your taxable income? So if in retirment there is 45k from social security and say 35k from rental property, and I can take 94k out of investment accounts (non Retirement) and it won’t be taxed at all? It doesn’t put my taxable income up to 139k?
Well at 4:50 he explicitly said “the reverse is not true, long term capital gains cannot push you into higher ordinary income brackets” so y'all can’t both be right. I watched that video and it contradicts what he said in this video. I found the answer here ua-cam.com/video/QBAn7LRC0_0/v-deo.htmlsi=s89-RjuFfjEXzApk
A question i have after loosing my wife and state helping with med bills then they took most of a settlement she had and left me with barely anything l. I contacted the state of crooked Illinois and they said sorry nothing can be returned so basically they don't care unless its theres
What you should be teaching is that Taxation is illegal and not included in our Constitution. Although for now we have to pay it but if we all band together as We The People we can stop it.
All this is B.S. They say you will save gobs of money. Try $36.00. I dont consider that gobs of money. Thats like tipping your waiter/waitress a penny. The more you saved the more they will tax you!!!!
Thanks for the helpful video. Since you didn't mention it, I guess there is no "bucket" approach with respect to long term capital gains, as you described with respect to income and short term cap gains? If indeed different, just being one dollar over a range gets one's entire long term gains taxed at that higher rate... Important to keep-in-mind when deciding to take profits.
[LAUGHTER PUN] New law: The IRS will be removed in 2025, along with personal income taxes. The revenue can be garnished from higher tariffs and corporate taxes, ensuring companies can no longer avoid paying their fair share.
The middle cap gains should be 10%. Medicare part B for me is more expensive than my husband's employer plan for the WHOLE family. Which is why I don't understand why people want gov't insurance.
I can't see all the details in his example at the end of the presentation but believe what is insinuated is wrong. Capital gains taxes are not all or none,but stepped up for the incremental amounts over the capital gain brackets, ie if your capital gains are one dollar over the 15% capital gains bracket,you pay 15% of one dollar of capital gains for it,and zero on capital gains below the capital gains 15% bracket. Now IRRMA penalties are all or none,but not capital gains. At least that's what I believe and have confirmed using what if type tax planning software.
@RetireConfidently, have you made a video about the option of borrowing against a portion of one's stock investments to cover higher standard of living each year - the interest payments on that loan being deductible - then borrowing against another portion to both repay the previous year's loan & fund the higher standard of living. . . with the gains in stock value diminishing increase in portfolio percentage needed each year? ergo no capital gains tax for asset sales. there is no tax (yet) on borrowed money. if you've made such a video, could you post a link here as a reply?
How do your capital gains affect the capital gains rate? It is fully ignored. For example, if you have 0 regular income (like wages, etc) and only have cap gains, but you have $300k of cap gains. Is it still taxes at 0%. Or do you add wages + cap gains to determine the cap gains rate bracket you are in? For example, looking that the 2025 cap gains tables (married joint). If we make 0 wages and $95k of long term cap gains. It seems clear my cap gains tax rate is 0%. But what if we have cap gains of $100k? Does that mean we have to pay 15% on ALL of my cap gains? Or is it also graduated? I also assume pre-tax 401k withdrawals are 100% normal income and the cap gains doesn't come into play, even though we may be withdrawing what are basically gains withing the pre-tax account?
Do you mean if I take a withdrawal from my 401K that went in pre-tax and I keep the withdrawal under the $40,000 threshold I don't get taxed on the earnings? I thought the federal tax was 20% on the earnings.
the medicare chart as a math problem. first bracket is up to $103,000 and the next is $103,001-... Mathematically speaking if you fall between those numbers is not clear which you would fall under (you might argue you fall under neither...so maybe its free :) ). same problem for all brackets.
This is my fifth year after retirement. I’e been following the 4% rule thing I saw on a youTube channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get really worried.
Not a lot of people are able to save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
I’m closing in on retirement, too, and I have benefitted so much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who had been investing for many years.
'Carol Vivian Constable is her name. She is regarded as a genius in her area and works for Empower Financial Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I have a pension in addition to Social Security so I’m taxed on 85% of my Social Security income. I certainly hope that Social Security taxes are removed. After all Social Security was a tax I had to pay when I was working.
Income tax is unconstitutional. Paying for SS is unconstitutional. I learned this in high school 55 years ago. Many teachers never paid into it. Why should they get a payment?
Gross income. Because net income has taxes withheld. It’s calculating what your total tax burden is. If the amount of taxes withheld covers that burden, then you are good.
FLAT TAX is the only fair way and it will accumulate more when all the "Right Offs" are gone. It would also help tremendously if they stopped taxing SS ILLEGALLY! I'm paying $400 a month just in SS Tax. A tax I already payed when paying into SS.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks...
@@AlilatTiamiyu Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY*..
Hmm. I just double checked and the link is working. Here it is: onedegreeadvisors.com/wp-content/uploads/2025/01/2025-Annual-Limits-for-Financial-Planning.pdf
id like clarification at 2:12 you have an example of 100,000 but if your married shouldn't that be 130,000 because your first bucket would be 0% for the first 30,000 you make because of your tax credit then your next bucket would be taxed 10% from 30,001 to 41,600. so on and so on.
Thank you for your clear and detail explanation. I called SS office few days ago and learned that 2025 Medicare baseline premium was $185. This is a huge jump. Is this true?
Why is the thumbnail/table so laughably inaccurate? If you make under 13 grand, you literally pay 0 percent in taxes, not 10. Am I misunderstanding the table?
I’m confused about iRMAA calculations. You separated out Plan D. Are not the higher incomes subsidizing Plan D too, or do you not paying it if you don’t have a Plan D?
There is no Part F, only Plan F. There's Medicare with Parts A/B/D (technically Advantage is Part C). And then there are Medigap Plans A through N (maybe higher?), although some are obsolete and no longer available. F, G, N, and High-deductible G seem to be the most common at present. I think this confuses many people at one time or another, myself included.
@ Yep that had 2 typos. Although Plan F still exists and I just learned depending on age you could still enroll, I mean Plan D: there was no reason to suddenly change plans in the question -- I’ll fix it. For Medicare I have just A and B. With my husbands insurance from work we’re set. I’d still like an answer about the Plan D column that listed prices.
@@Reed-2big Are you talking about Medicare drug coverage? That would actually be Part D, not Plan D. 🤔 If you don't have Medicare drug coverage I don't think you would have a Part D IRMAA charge. But I'm happy to be corrected.
@ Originally, it was “advertised “ that the IRMAA was to pay for costs for others including I thought that included their drug plan cost being subsidized too. That’s why I’m confused about what IRMAA pays for. My Dad insisted it was to pay for the ACA but when he brought the letter to show me it was all Obama’s fault. When we saw the date, 2006, we asked him who was the president then! Not being hard core MAGA he admitted he was mistaken and I conceded that the extra charge was more than annoying!
@@Reed-2big Yeah the Part B and Part D IRMAA charges feed into to the same trust funds as the base Part B and Part D premiums. I can understand your dad's confusion, as ACA also modifies premiums based on past income. Except it works the opposite way-- Medicare starts with a low premium and then has a surcharge for people with higher incomes, while ACA starts with a high premium and then gives back subsidies for people with lower incomes. It's all very arbitrary and hand-wavy.
So if I withdraw money from my IRA (I'm 67 and retired) to buy a house or remodel my current house, I'll not only take a big tax hit but medicare will go up considerably as well?
Yes. In this situation you might want to do the math on a loan, personal, home, equity, or ? Reason being if you do this say for ten years the interest you pay on that loan, and you can prepay it, would be thousands less than what you would pay in taxes. May the math be with you! 😂
Yes, happened to me. And there is a delay in the Medicare liability while the SSA catches up. Increased adjusted gross income means Medicare premium hit.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks.
@@VivekLuna Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY*
I opened an ROTH IRA at the age of 27 and put the maximum amount possible for 2025. I feel foolish for letting my life fall into order so slowly. The issue at hand is how to invest the funds most profitably in order to save for retirement
You're 27 years old. It is alright. The compound interest period has begun. To build a strong foundation and reduce risk while maximizing gain, I think all investors should begin with ETFs. From there, they should diversify across a range of asset classes and continue to invest consistently and systematically
You do not need to locate the next NVIDIA to be successful in investing. Simply choose top tier ETFs and work with a financial counselor, as I did. I turned $90,000 into $53,000 in annual dividends, which is a huge accomplishment for me today
Impressive! I admit I'm scared about retirement as I turn 60 on my next birthday. I need to ensure I have enough money to survive on. How can I consult your advisor? My retirement account isn't performing well
''Aileen Gertrude Tippy'' is the licensed advisor I use. Just research the name online you will find necessary details to work with to set up an appointment
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her
I’ve been hearing a lot about Roth IRA conversions lately, but I’m confused about whether it’s the right move for me. I’m 47, with a decent 401(k) and a modest traditional IRA. With taxes likely going up in the future, should I start converting now, or am I too late?
It’s not too late! The key is balancing the tax hit now with long-term benefits. Converting to a Roth IRA can help lock in today’s tax rates, but you have to be careful about bumping into a higher tax bracket. Timing and planning are critical here,consider speaking with a financial advisor
Exactly! One mistake I see people make is converting too much at once and triggering a big tax bill. Another is forgetting how those conversions could impact Medicare premiums or Social Security taxation later. You need a solid strategy to avoid those traps and financial advisors have these strategies, i have been working with one myself and this strategy has allowed me to navigate the financial landscape successfully, making informed decisions . Perhaps you should consider a similar approach.
@@Tonyrobs2 Could you kindly elaborate on the advisor's background and qualifications?
My CFA ’’ Sharon Ann Meny, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
Just be careful when making your Roth conversions. I didn’t realize that I was close to the next tax bracket and my tax planner told me to convert because I would only pay 12%. But that was only true for 10K. I was going to convert 20K but when I ran the numbers I saw that I would be paying 22% on any amount greater than 10K. Not a fan of giving another $1,000 to the IRS.
The avg. American is having a tough time, I know I am not alone. There are others in same position as me. By certain statistics: 22% of americans have no retirement savings. 64% are worried that they will not have money in latter years while 47% of adults who are not yet retired think they have to work part-time in retirement. How can I best grow the 100k I have saved seperately outside retirement access which of course had depleted over the years?
It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimise financial outcomes, who can provide specialised advice and methods to decrease expenses and maximise income.
I completely agree; I am in my mid 40s, approaching retirement, and have approximately over 2million dollars in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.
This is exactly how i wish to get my finances coordinated ahead of retirement. Can you recommend the financial advisor you used to get ahead?
I've experimented with a few over the past years, but I've stuck with ‘’Marisa Michelle Litwinsky” for about three years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Anyone earning less than 60k should pay zero income tax. They already pay enough in other forms of taxation and fees to the government. Full stop.
In most years approximately 43% don't pay any income taxes, or get back more than they pay in after returns and thats not including Entitlements (food, rent, heat etc). You want more!? If 60% of Americans didn't pay taxes, but you could not get back more than you paid in, and returns went back to pay for entitlements, America would collect way more money, and it would incentivize hard work! But I bet you don't want that do you!?
When people don't pay tax year after year they lose interest in their nations finances. Having lived in Scandinavia, I can attest that we (Americans) are ignorant about how the "other half" live. These are nations at the top of "happiest" nations yet they pay (much) more taxes. How is it possible to have less and be happier?
This is not a plug for a social welfare system. It's already in trouble due to the lack of children / new workers / contributors and the increase in elderly / receivers / retirees. But taxes were easy - VAT (on most goods) and an income tax. I'd estimate 90% pay online - no advisors, accountants, long hours filling out forms, trying to contact the IRS, fear of breaking rules, etc It's a trade off - "free" college (tuition - no dorm, food, transportation), primary & high schools are far superior, health care is good but not "free". In Finland you paid for several things.
@@smb-zf9bdJokes on you. I pay too much in taxes and I'd dodge the draft, much less care about the nation's finances. 😂
People who use "full stop" as an argument are almost always wrong. And in this case, yes you're wrong.
If you don't pay taxes you don't care when the govt wastes billions or trillions on goofy nonsense. Where is the righteous indignation among Welfare recipients? Completely nonexistent. They don't care.
If people don't pay taxes then they should have no say in where tax money is spent. I'd be OK if they aren't allowed to vote. Why should they?
Agree. Obscene that lower/middle income folks pay more tax than the billionaires and their corporations. Revolution is needed.
Increasing tax rates are the reason I rolled over my 401k to a Roth. I don’t want to be 59 paying taxes on current income on withdrawals made from my retirement account. I'm now seeking best possible areas or strategy to keep my retirement contributions on track to my $5m goal.
That's right, My advisr helped me rebalance my $2m portfolio without triggering capital gains taxes by using tax-advantaged accounts and reallocating dividends and new contributions. They also recommended tax-loss harvesting and strategies to stay within my tax bracket. Thanks to her guidance, I maintained my desired asset allocation while minimizing taxes.
Your investment adviser must be really good, I hope it's okay to inquire if you're still collaborating with the same investment adviser and how I can get in touch with them?
glad to have stumbled upon this, curiously inputted her on the web, easily spotted her consulting page and was able to schedule a call session. Ive seen commentary about advisers but not this phenomenal
Open a business and expense business expenses. Reduce your income bracket.
If LEAVING tax free wealth is your goal, and you live in Florida … I can help you do that.
This is one of the best (if not the best!) income tax education and planning videos that I’ve seen in the past 5 years. Excellent, clear, correct! Thanks!!
Glad you enjoyed it!
I am looking for tax efficient way to rebalance my 800k retirement portfolio without triggering capital gain tax. what asset location strategies should i use?
The best strategy depends on your financial situation, account types, tax bracket, and investment goals. Consult a financial advisor or tax professional to tailor these strategies for maximum tax efficiency.
My advisor helped me rebalance my $2m portfolio without triggering capital gains taxes by using tax-advantaged accounts and reallocating dividends and new contributions. They also recommended tax-loss harvesting and strategies to stay within my tax bracket. Thanks to their guidance, I maintained my desired asset allocation while minimizing taxes.
I'm worried about my retirement portfolio and could use some guidance. How can I get in touch with your advisor?
I'm cautious about giving specific recommendations since this is an online forum and everyone situation is unique, but I've worked with Annette Christine Conte for years and highly recommend her. Look her up to see if she meets your criteria
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
I just turned 46 and awfully late to investing with barely any portfolio except my 401k, I have a decent amount of cash saved up and with inflation currently soaring AGAIN, I’m getting worried about retirement, my intention is to retire at 55. How best do I maximize my savings of over $150k
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect my funds and make profit from my portfolio this red season. I’ve made over $250k since then.
Mind if I ask you to recommend this particular coach you using their service?
Absolutely, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with "Brenda Davies Clarke” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look her up.
Thanks for the suggestion! I really needed it. I looked her up on Google and explored her website; she has an impressive background in investments. I've sent her an email, and I hope to hear back from her soon!
Great information!!!
Very helpful. 👍
6k page? tax code 🙄 is beyond ridiculous! WAY too much government!!!!
This was a great video. Thanks for posting.
Glad you enjoyed it!
It also pays to check into where you live. Property taxes are ridiculous in some states like New Jersey. It can take 25% of your income without insurance or any mortgage figured in. So you’re putting out big money just to live there even if your house is paid for. This is without figuring in car insurance then utilities and food. Have fun.
Maybe you could do a side by side comparison of the tax if the tax breaks are not extended in 2026…that would be a awesome video
8:51 time mark: Graphic showing 2025 IRMAA brackets. There is an error in the last line of the chart. Part B Premium in the highest income bracket is NOT $432.00, it's $443.90. (I don't think those earning more than $750K will take notice. 🤭)
Interesting. I’ve been using the college for financial planning sheet for years and never had any issues. I wonder what happened. Good catch!
@@onedegreeadvisors Premium for under $106k is $185 not $0. You made me go look it up to be sure.
I'm 75+ and covered by VA Healthcare, and I tried to Cancel my Medicare Coverage, and the Government doesn't want to do that! Since the VA Covers Everything that Medicare Covers why do need Medicare/A Deduction from my Monthly Social Security Payment?
They shouldn't be charging you for part A, but they do charge for part B. You shd be able to cancel since you have VA. Keep trying till you get the right person to help you. Too many uninformed people.
I think Bigbear is confused. Should like all he has is part A which is free. That’s why it’s not cancellable. Part B can be. Part B is now $185/month.
@@ramonalee2368 Thank - I will pursue the Issue!
@@janetsmiley6778 BigBear isn't that confused! It was Part B - The $185/Month that they told me they would not Cancel...
You dont psy for part A and you dont have to have part B
With inflation still an issue, taxes might eat up more of my savings than I expected. What can retirees like me do to minimize the impact?
Great point about Roth conversions. A lot of retirees overlook tax planning as part of their investment strategy, and it costs them big time. I’m semi-retired and made this mistake early on, but working with a financial advisor helped me restructure everything. My advisor, Joseph Nick Cahill, showed me how to avoid unnecessary taxes and improve my portfolio.
Thanks for sharing that! I’ve been doing everything myself, but I’m starting to realize there are too many moving parts-taxes, inflation, market risks. It’s overwhelming. Do you think someone like Joseph Nick Cahill could also help with balancing short-term income needs while keeping long-term growth in mind?
Absolutely! Joseph Nick Cahill has a lot of experience with both short-term and long-term strategies. He helped me shift some investments into tax-efficient accounts and suggested ways to lower my taxable income during retirement. Plus, his free consultation gives you a chance to see if his approach works for you before committing.
@@Andres_853 I tried Joseph Nick Cahill and he sucked. terrible underperformance in my portfolio. Stay away from that clown
What can you do? Keep voting MAGA to reduce taxes.
Nobody is asking the right questions. I'm worried about retirement and want to maximize my savings. I've tried various investments that didn't work out as I hoped, and now I'm unsure whether to invest in the stock market or index funds. Any recommendations would be appreciated.
The stock market is likely the best smart investment. However, if you are thinking of investing in the stock market and you are not well versed, its advisable to work with a financial advisor who is an expert to guide you through the process. this way you could make more profit with less risk
The truth is, the role of an investment advisor can often be overlooked but should never be underestimated. After facing a significant portfolio loss in 2020 during the COVID pandemic while trying to manage my investments on my own, I decided to reach out to an investment advisor. At that time, I had about $126K left in my portfolio. Now, without having to lift a finger, I'm semi-retired, working only 7.5 hours a week, and I'm just 12% short of my $1 million retirement goal thanks to my subsequent investments.
Could you kindly elaborate on the advisor's background and qualifications?
My CFA is Judith B. Richards, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
Thank you so much for the suggestion! I really needed it. I looked her up on Google and explored her website; she has an impressive background in investments. I've sent her an email, and I hope to hear back from her soon!
3% correction fir inflation is a bit off. Does ANYONE believe that taxes, insurance, food prices, automobile, fuel, rent, interest rates and incidentles have only increased 3% the past year? Its closer to +10%, at least, by my estimation.
Remember when Trump was in office and you could find prices for restaurant meals online?
Now they simply don't show prices, since prices go up all the time.
If customers took pictures of the menus over the years, compare today's menu vs. 2020 or 2018.
Inflation is NOT at 3%.
I think he is assuming income has increased by 3%. Meaning the tax calculation is not based on cost of goods or services.
Guess what... you'll be paying a lot more, until the oligarch evil mongers have all of your money and assets.
Reagan had 18% inflation.. most of inflation since covid was from Trumps tarriffs ( most stayed in place) and supply chain issues. Inflation is a calculation over a broad spectrum of goods and services not just food.
After reading some of the comments, they compare countries with billions of dollars worth of mineral monies but have total population the size of Minnesota. It is great that the governments of those countries share the wealth with its citizens. In the US we spend more than we take in and will do so if we continue to put politicians in place that are more intent in filling their own pockets than that of the people who put them there.
hello, i have always understood that the 19k annual exclusion for gifts is not the limit for how much can be given to an individual in a year without being taxed, but rather the amount that can be given without formally reporting to the IRS.. you can gift more than 19k in a year without it being taxed.. up to the lifetime limit, which is over 1 million.. please let me know if i have been interpreting the law incorrectly
the life time gift limit is over 13 million
2 most important thing bmnot discussed -
1. Gapital gains on selling a home. You have a 1 lifetime deduction of $250K for single and $500K married.
2. SSA 50-85% tax on your benefits.
If your collecting benefits and still actively working, you are allowed a cap of $23,400 for 2025. If your combined income is $23,401-$34,000, 50% of your benefits are taxed. $34,001+, your taxed 85% of your benefits.
That's why the old saying sticks, There's only 1 thing in life that's 100% guaranteed, is Death and Taxes
One of the best no nonsense video.. It would nice to talk through Obamacare subsidies for pre-medicare retirees.
There are many channels who specifically talk about the affordable care act and how the subsidies work
@@Starfish2145 There are many channels talking about medicare too. This video was meant for retirees. There are retirees below 65 too.
I am aware that I am not the only average American going through a difficult moment. There are others who share my situation. According to certain estimates, 22% of Americans do not have any money saved for retirement. While 47% of those who have not yet retired believe they will need to work part-time in retirement, 64% are concerned that they will not have enough money in their later years. How can I increase the $100,000 I have saved outside of retirement access, which has obviously diminished over time?
It is advised that you contribute at least 20% of your income to a 401(k). You may determine how much you should save based on your age and income by using internet calculators. Setting aside a minimum of 20% of your earnings in a 401(k) can help guarantee that you have adequate funds for a comfortable retirement. You can use compound interest to increase your retirement savings over time by setting aside this much.
I absolutely concur; I am in my mid-fifties, on the verge of retirement, and have more over $2 million in external retirement accounts. Compared to the whole value of my portfolio during the last three years, I have very little in retirement funds and no debt. Actually, you can't reject the Fin-advisor-you can just ignore it. Just find a fiduciary one by doing your research.
The tax system in US is weird. The whole tax and banking system is so lacking regulation protection it helps no ordinary person except the thief’s stealing your savings.
What I hear you saying is we have a punitive tax system. So we’re looking to keep our income below a tax bracket, to avoid paying more tax. So make less money so you don’t have to pay more tax. That is punitive. We punish success in this country, at least in the last 50 to 75 years.
two ways to look at that
Taxing any income below $25K is criminal. I did pretty well in my career and watching the people just starting out live paycheck to paycheck was difficult for me.
And then to see them taxed to death (in California) on top of that was disgusting.
Now I am retired and I will do as many home improvement projects as I can afford to minimize my utility bills and income tax (solar, batteries, heat pump furnace, heat pump hot water heaters, etc).
Negative. Everyone benefits. Everyone should put some skin in the game.
@@tonycrabtree3416 I used to think that also.
I paid for my own college by joining the national guard and working fulltime during school while my roommate went to school for free because he was hispanic (his parents made a little bit more money than my parents). I'm just stating facts, those were the financial aid rules at that time and you deal with the hand you are dealt, with that said, it pissed me off everytime I left for work and he was sitting on the couch playing his guitar and I was very angry about that for decades so I wanted everyone to pay taxes and I wanted the rules to be the same for everyone.
I did well and have paid millions in taxes. I am retired now.
The standard deduction for a single person is $15K, so out of the $25K a person is making, only $10K is taxable to the goverhment is taking 10% or $1K from that person.
The government is also taking social security and medicare taxes from that person so that is around another 4.5% on the entire 25K.
Some people might look at that and think "why should I even bother working when I can just collect welfare?"
So if someone is willing to get out of bed in the morning and bust their ass at a job making $12.50 and hour, I don't think we should put another reason for them not to work by collecting $1K in taxes.
Just my opinion.
How is it criminal? So it's OK to not tax someone who makes $25k, but someone who makes say $30k should pay 20%?. If you make money, you should be taxed like everyone else, just at a different rate perhaps. But this is also why I think that a flat-tax rate with deduction is better (not progressive like we have). Besides, if people only make $25k and are single, they likely will owe very little after the standard deduction anyway. If you benefit from the same services as someone who makes $100k or $1M+, then you should be contributing to chose costs too through taxes.
@@HR-wd6cwThat's not how brackets work. You'd leave the 25k untouched then tax the 5k above at 20%
@@HR-wd6cw flat-tax makes sense. If you make 10 times more money, you pay 10 times more in taxes. Sounds pretty fair to me.
Why do filing together get a greater increase than single filers?.
Wow, a $850 dollar difference MFJ in the standard deduction from 2024 to 2025.
0:35 Per each spouse? Is there a limit on the number of spouses you can claim?
haha, good question
😅😅😅
Thank you for including singles in your examples.
Just to be clear. The tax bracket is applied after the standard deduction. So if I made 30, I would have 15 after the deduction and that 15 would be taxed at 12 percent
nice info, good things to think about as I approach retirement
Glad it was helpful!
The government bucket has got a big freaking hole in it. Stop trying to fill it out of my bucket. Balance the budget and be accountable.
Stop using roads, schools, the protection of the military, fire, police, snowplows, and then we'll talk.
@@jongroubert4203 If that's where the money went, people wouldn't complain.
Over 50% of taxpayers don’t even pay federal taxes and 90 some percent send their kids to the welfare schools. Entitlement abounds.
@@jongroubert4203 we had all those things before we had a personal income tax. Maybe not snowplows so much, because it was 1913, but the rest were just fine before DC got their hands in our pockets. You are free to make a donation if you feel the need, but they should stop borrowing money in my name. I know many of us feel the same way. (BTW all but military are largely paid from local taxes)
people should not have to jump throughall those hoops and loops to prevent the IRS from stealing their money. Push the gov to eliminate all the tax code and just have a flat 10% tax for all. Also make laws that only job income and business profit can be taxed. Every other form of income should be completely off limits to IRS. The requirement to file tax needs to be eliminated for non business owners. Just take 10% from paycheck and leave people alone.
Ah yes, let's only tax the people who create jobs and value to society and let everyone else go scott free. That'll really motivate people to start businesses and hire freeloaders with no loyalty
4:50 are you saying that any money from long term capital doesn’t go towards your taxable income? So if in retirment there is 45k from social security and say 35k from rental property, and I can take 94k out of investment accounts (non Retirement) and it won’t be taxed at all? It doesn’t put my taxable income up to 139k?
Long term gains stack on ordinary income. I think you’ll find this video useful! ua-cam.com/video/_JTFjIPXces/v-deo.htmlsi=GPVSlTOO1mpVujIf
Well at 4:50 he explicitly said “the reverse is not true, long term capital gains cannot push you into higher ordinary income brackets” so y'all can’t both be right. I watched that video and it contradicts what he said in this video. I found the answer here ua-cam.com/video/QBAn7LRC0_0/v-deo.htmlsi=s89-RjuFfjEXzApk
A question i have after loosing my wife and state helping with med bills then they took most of a settlement she had and left me with barely anything l. I contacted the state of crooked Illinois and they said sorry nothing can be returned so basically they don't care unless its theres
What you should be teaching is that Taxation is illegal and not included in our Constitution. Although for now we have to pay it but if we all band together as We The People we can stop it.
All this is B.S. They say you will save gobs of money. Try $36.00. I dont consider that gobs of money. Thats like tipping your waiter/waitress a penny. The more you saved the more they will tax you!!!!
very much appreciated this video!
Important stuff. Thanks so much.
Thanks for the helpful video. Since you didn't mention it, I guess there is no "bucket" approach with respect to long term capital gains, as you described with respect to income and short term cap gains? If indeed different, just being one dollar over a range gets one's entire long term gains taxed at that higher rate... Important to keep-in-mind when deciding to take profits.
Will be tax forgiveness for those who owns the IRS?
This is great information. Well thought out.
Thanks for watching!
Love this video. Just found your channel. New Subscriber !!!!
Is there a link to that tax planner you have in the video to compare
Thank you! Good stuff to consider!
Glad it was helpful!
Good job. Well done.
[LAUGHTER PUN] New law: The IRS will be removed in 2025, along with personal income taxes. The revenue can be garnished from higher tariffs and corporate taxes, ensuring companies can no longer avoid paying their fair share.
The middle cap gains should be 10%. Medicare part B for me is more expensive than my husband's employer plan for the WHOLE family. Which is why I don't understand why people want gov't insurance.
Wow -- very clear, great advice.
Glad it was helpful!
71years still working.
Get Omers pension.
Do you still get cpp and oas ?
This was a very helpful video. Thank You.
Glad it was helpful!
People forget IRMAA. The brackets are barely altered every year.
I can't see all the details in his example at the end of the presentation but believe what is insinuated is wrong. Capital gains taxes are not all or none,but stepped up for the incremental amounts over the capital gain brackets, ie if your capital gains are one dollar over the 15% capital gains bracket,you pay 15% of one dollar of capital gains for it,and zero on capital gains below the capital gains 15% bracket. Now IRRMA penalties are all or none,but not capital gains. At least that's what I believe and have confirmed using what if type tax planning software.
Very good video. Thank you very much!
Glad you liked it!
@RetireConfidently, have you made a video about the option of borrowing against a portion of one's stock investments to cover higher standard of living each year - the interest payments on that loan being deductible - then borrowing against another portion to both repay the previous year's loan & fund the higher standard of living. . . with the gains in stock value diminishing increase in portfolio percentage needed each year? ergo no capital gains tax for asset sales. there is no tax (yet) on borrowed money. if you've made such a video, could you post a link here as a reply?
How do your capital gains affect the capital gains rate? It is fully ignored. For example, if you have 0 regular income (like wages, etc) and only have cap gains, but you have $300k of cap gains. Is it still taxes at 0%. Or do you add wages + cap gains to determine the cap gains rate bracket you are in?
For example, looking that the 2025 cap gains tables (married joint). If we make 0 wages and $95k of long term cap gains. It seems clear my cap gains tax rate is 0%.
But what if we have cap gains of $100k? Does that mean we have to pay 15% on ALL of my cap gains? Or is it also graduated?
I also assume pre-tax 401k withdrawals are 100% normal income and the cap gains doesn't come into play, even though we may be withdrawing what are basically gains withing the pre-tax account?
Why are IRA distributions ordinary income? They are absolutely long term investments.
As a retiee, I moved to Nevada because there in no state Income tax.
Do you mean if I take a withdrawal from my 401K that went in pre-tax and I keep the withdrawal under the $40,000 threshold I don't get taxed on the earnings? I thought the federal tax was 20% on the earnings.
You mentioned the couple is over 65. Does the standard deduction in the calculation correct? Senior deduction addition?
Yes, $30,000 plus $1,600 each since both age 65+
Why no mention for VA Disability payments and SSI??? Do we have to pay taxes these???
the medicare chart as a math problem. first bracket is up to $103,000 and the next is $103,001-... Mathematically speaking if you fall between those numbers is not clear which you would fall under (you might argue you fall under neither...so maybe its free :) ). same problem for all brackets.
Just like on your electronic tax form my guess they will round it so no whole dollar between the brackets so no luck on free ride ;(
Except all income numbers are rounded in many filings. So the trick there may be whether everything is rounded down so you fall under the cap.
What about not paying taxes at all this year?
Great information! Thanks!
Glad it was helpful!
This is my fifth year after retirement. I’e been following the 4% rule thing I saw on a youTube channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get really worried.
Not a lot of people are able to save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
I’m closing in on retirement, too, and I have benefitted so much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who had been investing for many years.
I really need help, please. Can I ask who the financial advisor you work with is?
'Carol Vivian Constable is her name. She is regarded as a genius in her area and works for Empower Financial Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Charge a flat sales tax of 15 percent on everything you buy for everyone , then you could get rid of most of the IRS dept
Flat tax proponents want to hurt poor people.
Wasn't there a 15% bracket between the 12 and 22%? If so, when did it change?
I have a pension in addition to Social Security so I’m taxed on 85% of my Social Security income. I certainly hope that Social Security taxes are removed. After all Social Security was a tax I had to pay when I was working.
Ugh both my husband and I HAVE to take RMDs and that’s going to kill us. We have as yet to take any distributions as we are in good shape.
Don’t know your situation but it sounds like you don’t need the income. May be worth exploring QCDs if you’re charitably inclined!
They can't ever leave well enough alone !
Right now, I wish there were a flat tax. Everything is confusing especially at my age of 78.
My wife got her social security letter ss he got a raise but Medicare went up so now gets 33 dollars less.
Just 10% for all and not reclaim at end of the year
Which software are you using to record this video? specifically video becomes small and slides comes with it vs Only video
Income tax is unconstitutional. Paying for SS is unconstitutional. I learned this in high school 55 years ago. Many teachers never paid into it. Why should they get a payment?
If teachers never pay into SS how would they get a SS benefit?
Hi, does tax bracket apply to net or gross income please give some example thank you, I like your videos so much.
Gross income. Because net income has taxes withheld. It’s calculating what your total tax burden is. If the amount of taxes withheld covers that burden, then you are good.
FLAT TAX is the only fair way and it will accumulate more when all the "Right Offs" are gone. It would also help tremendously if they stopped taxing SS ILLEGALLY! I'm paying $400 a month just in SS Tax. A tax I already payed when paying into SS.
Nut job alert!!!
"FLAT TAX is the only fair way"
Question: when you say “in 2025” does it refer to income made in 2025 or income made in 2024?
Income earned in 2025 taxed at 2025 rates
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks...
@@AlilatTiamiyu Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY*..
@@MaelleShaker Oh please I’d love that. Thanks!
@@AlilatTiamiyu *MARGARET MOLLI ALVEY*
Lookup with her name on the webpage.
You don't need to pay income taxes if you understand the law
On the Medicare chart for married couple does that mean both individuals must be over 65 to use the couple deductible income number?
link isn't working for the cheat sheet. Thanks for the video very helpful
Hmm. I just double checked and the link is working. Here it is: onedegreeadvisors.com/wp-content/uploads/2025/01/2025-Annual-Limits-for-Financial-Planning.pdf
id like clarification
at 2:12 you have an example of 100,000 but if your married shouldn't that be 130,000 because your first bucket would be 0% for the first 30,000 you make because of your tax credit
then your next bucket would be taxed 10% from 30,001 to 41,600. so on and so on.
It’s a single person example
Nothing about tax bracket creep due to inflated income due to trying to keep up with inflation.
Thank you for your clear and detail explanation. I called SS office few days ago and learned that 2025 Medicare baseline premium was $185. This is a huge jump. Is this true?
$10.50 more than 2024.
Yes baseline for 2025 is $185/mo
@@joelsheebs728 That is a 6% increase.
But social security only went up 2.3% for 'inflation'.
this is for this taxes we filling here in month or next years?
If I get married in mid year (2025) can I still take married filed jointly deduction for the 2025 tax year (due in 4/2026) ?
Good job.
Thanks for watching!
Hi, are you taking new clients for 2024 taxes filing
Our role is tax planning - we work together with a/your CPA who files your taxes to optimize your short and long term tax plan.
Is the Medicare amount we pay through SS automatically adjusted or do we have to do something?
Don't worry. They will just take it out of your pocket automatically.
12-5=7 not 6 as you said in your presentation.
Why is the thumbnail/table so laughably inaccurate? If you make under 13 grand, you literally pay 0 percent in taxes, not 10. Am I misunderstanding the table?
Yeah, what if you have 299’s mixed in with this?
Sir i have total income 61575 dollars, hw much tax is charged,please
I’m confused about iRMAA calculations. You separated out Plan D. Are not the higher incomes subsidizing Plan D too, or do you not paying it if you don’t have a Plan D?
There is no Part F, only Plan F. There's Medicare with Parts A/B/D (technically Advantage is Part C). And then there are Medigap Plans A through N (maybe higher?), although some are obsolete and no longer available. F, G, N, and High-deductible G seem to be the most common at present. I think this confuses many people at one time or another, myself included.
@ Yep that had 2 typos. Although Plan F still exists and I just learned depending on age you could still enroll, I mean Plan D: there was no reason to suddenly change plans in the question -- I’ll fix it.
For Medicare I have just A and B. With my husbands insurance from work we’re set. I’d still like an answer about the Plan D column that listed prices.
@@Reed-2big Are you talking about Medicare drug coverage? That would actually be Part D, not Plan D. 🤔 If you don't have Medicare drug coverage I don't think you would have a Part D IRMAA charge. But I'm happy to be corrected.
@ Originally, it was “advertised “ that the IRMAA was to pay for costs for others including I thought that included their drug plan cost being subsidized too. That’s why I’m confused about what IRMAA pays for. My Dad insisted it was to pay for the ACA but when he brought the letter to show me it was all Obama’s fault. When we saw the date, 2006, we asked him who was the president then! Not being hard core MAGA he admitted he was mistaken and I conceded that the extra charge was more than annoying!
@@Reed-2big Yeah the Part B and Part D IRMAA charges feed into to the same trust funds as the base Part B and Part D premiums.
I can understand your dad's confusion, as ACA also modifies premiums based on past income. Except it works the opposite way-- Medicare starts with a low premium and then has a surcharge for people with higher incomes, while ACA starts with a high premium and then gives back subsidies for people with lower incomes. It's all very arbitrary and hand-wavy.
So if I withdraw money from my IRA (I'm 67 and retired) to buy a house or remodel my current house, I'll not only take a big tax hit but medicare will go up considerably as well?
It could, depending on how much your MAGI is.
Yes. In this situation you might want to do the math on a loan, personal, home, equity, or ? Reason being if you do this say for ten years the interest you pay on that loan, and you can prepay it, would be thousands less than what you would pay in taxes. May the math be with you! 😂
Yes, happened to me. And there is a delay in the Medicare liability while the SSA catches up. Increased adjusted gross income means Medicare premium hit.
0% Tax Rate for Qualified Dividends under $48k income sounds pretty good!
@@ransonhall4834 Oh I know. My Taxable Brokerage account will be very happy.
@@ransonhall4834 It does n't have to Qualified and also add 15K and tax deductible contribution you might take.
Someone recently made a great argument that the only investment strategy based on history is Bitcoin right now.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks.
@@VivekLuna Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY*
@@FreuleinBey Oh please I’d love that. Thanks!
@@VivekLuna *MARGARET MOLLI ALVEY*
Lookup with her name on the webpage.
maybe a 79% drop in bitcoin + 50% IN MANO to make money put everything in the red solve