The SIMPLE Withdrawal Strategy You Should Use First in Retirement...

Panthers fans don't throw real rats, they throw plastic ones. John Vanbeisbrouck coined the phrase "Rat Trick" after Scott Mellanby killed a rat in the locker room and then scored 2 goals in the game.

Excellent video explained things perfectly

Great content

Great quality stuff dude, 👏

Lots of useful info but plenty of trees and lack of the view of the forest (imo). That creates a confusion. If people harnessed S/W like MaxFi (by Kotlikoff - can be Googled) they would see ALL these scenarios and be able to make the optimal choices by themselves - not a goal of this video. MaxFi is NOT super complex, once a base case is established (individual situation) the options such optimal Roth Conversion, optimizing SS filing, variety of other options - can be all investigated and compared. I would highly recommend for those who fully want to control their own destination (i.e. Retirement Finances and taxes). It works for me and few friends who use MaxiFi.

The tax saving chart did not take into account the cost of the $22K needed for the $100K IRA to Roth conversion. The stradegy is still valid in avoiding Medicare and SS surcharges and reducing SS benefits.

how can retirees do Roth conversions?

I will be fortunate to have a FF state pension in retirement. Could you please make a video dealing with the differences I might face due to have due to having $45,000+ dollars a year of pension income?

I love your videos, but I know I will be in the 85% SS tax bracket, that Roth conversions will be Uber important, but I only get 1 chance at retirement, and I don't want to mess it up!

Appreciate your content as it is more informative than most information out there

And this is why I swapped to 75% roth-in-plan conversion in my 401k and only 25% of contributions being pre-tax.

Helps keep it simple for down the line.

Great video, but it does not address one crucial issue: if one is on the losing side of a lawsuit, retirement accounts are generally judgment-proof, while regular investment accounts are not.

One can somewhat reduce that danger with various forms of insurance, but even that isn’t 100% protection.

For this reason, I think it’s a good idea to preserve retirement accounts as long as possible.

How do you put money from taxable to Roth? I thought it has to be earned income. Also, can I put Traditional 401k money into Roth IRA? Or Traditional 401k to Traditional IRA and use that as more tax deferring? Is this video suggesting withdrawing from Traditional account, then paying the taxes using a taxable account?

Would have liked the HSA included.

Doesn't a Roth conversion reset the 5-year clock on tax free Roth withdrawals?

Govt gangsters sure make things complicated . Funds a total waste of human capital...tax accountants

Thought IRMMA threshold was $194k for married couples. Can convert more than example if wanted...correct? The example is trying to keep conversions in a lower tax bracket. When does it make sense to convert in higher brackets?

Selling losers from taxable can pay for Roth conversions and be tax loss harvesting at same time.

Why does every video think everyone has a Million dollars? I would love to find a video where you do it for the guy that maybe has half that. As soon as I hear a Million dollars I’m out

I’m sure there is a lot of useful information in this video but it is presented too quickly. Please slow down just a bit. There are complex tax strategies here that can be difficult to digest at this pace. Thank you though for the information.

Waiting for the government geniuses to start counting Roth Interest in the calc for paying SS tax. bet it comes. They won't tax earnings but can figure them into your provisional income. Watch it come.

Capital gains are only taxed if realized, right? Only if you sell at a profit, right?

He needs to explain less at a time

I’m 48, sad to say I made terrible money decisions growing up which I'm presently paying for, been dedicating every waking hours towards my retirement and I'd really love to retire to Portugal with atleast $3million by, the market up and down is not helping at all.

You guys need to be able to take on more clients

Don't forget about standard deduction, which in many situations with cover RMD

Ok, let’s say i have a million dollars. Now I have 10 holdings in the portfolio. 5 of them had a horrible returns year, 3 broke even amd 2 killed it. Do I sell equal portions of each to fund my lifestyle or to do Roth conversions?

I loved your video, but I recommend that if you could slow down just a little bit, it would help me, at least, catch on. You know what you are talking about, but for me, it takes a few seconds for each point to sink in. I’m going to watch the video again, so I may better understand. Thank you so much for your time and hard work🙏

I've knew most of this information, except in regards to IMRAA. Thanks for mentioning that.

this is complicated. I need to review

You did not really touch upon qualiifed vs unqualified dividends which for me is a big problem since I am generating over six figures of them right now but nice video can I hire you as my accountant?

Excellent information, however, my brain doesn't comprehend that fast. Slllllllllllllllow down, please.

I had an easier time understanding quantum mechanics in college. That's due to our ridiculously complex tax law, not your presentation.

Always good Eric, note in a down market we should do more, HSA is also a powerful tool and SS should be left until last, after spending or converting tax differed accounts, for longevity. insurance.
If the market dies great and we are left with a bunch of taxes, it is ultimately a nice problem to have.
Cheers,
Jef

If you wanted to do 100K a year in Roth conversions over multiple years, with no income, is it possible to take your standard deduction or does it apply for conversions?

What about a Roth ladder? Should I try to deplete my traditional Ira before tapping into Roth?

These videos give me headaches.

Really enjoy all of these videos - well done and well articulated!!! Would really be great if Safeguard had a one time fee based plan one could purchase!!!!! I recognize plans change but a baseline plan for us DIY'ers would really add confidence to my plan and execution!!!

I think you touched on this briefly in one of your videos, but what would be very helpful would be how to determine, when withdrawing from taxable nonretirement accounts, how much of the withdrawal would be reported income (would show up on your federal tax return). In other words, how to determine the gains, as only the gains would be taxable and therefore would be reported income. This is not so much for determining income tax on the gains but rather for health insurance purposes. This can get very complicated, so I think you could probably make a whole video about it. FYI, the two brokerages I use wouldn't help with this and referred me to a CPA, however, the CPA I talked to (just one so far) didn't seem to have the knowledge to be able to help with this either.

Great Video!

My entire retirment will be funded by ROTH and long term capital gains money. I won't be paying more than a few hundred to maybe a thousand in income taxes after retiring. The only bummer is where most people will be paying 10% on income I will be paying 15%. But when others are paying in the high 20s I will still only be paying 15%

Thanks Eric, always good. Now add HSA and put off SS for longevity insurance and spous, and allow bigger roll over window, and hedge down turns with more roll over, and reduce income for IRMA, cool, is coming together maybe.... 😅

Great info. Had to watch a few times. You are talking way too fast.

freakin awesome. i didn't know about irma and I will definitely be converting. i will have about 5 million @55 and am retiring with my elementary age kids early. I need to minimize the taxes big time as i live in a high tax state, so this might be the ticket.

My eyes glazed over, I slapped myself, two minutes later my eyes glazed over again

I live off my dividend and options income. I don’t have to rely on selling shares 👍.

OMG - you almost need to go to college just to retire. Why did they have to make it so complex?

Appreciated the information. We are at least 7 years from being able to use our IRAs. Now trying to plan out this and it gives me a headache. We are starting a ROTH 401K for my wife to max out to give us more ROTH funds.

Vanguard VTI. You can count on a net 9% with a reasonable standard deviation of 15 to 17%. Start early, be consistent and the miracle of compound growth will take over.
Use time as the real basis of growth...it takes about 5 years.

Great information and explanation. I will need to watch this a few times.

I recently adjusted my Roth IRA to 50% in SCHD, 25% in SCHX, and 25% in SCHG. For my Roth 401k, I went with 70% in Vanguard's S&P 500 Index, 20% in the Vanguard Growth Index, and 10% in the Vanguard International Index. My goal is to grow my $350k to over $1 million within the next three years.