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Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My Husband and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement

Ignore, no wisdom to be had here

Working on my vacation days, not because I have to, rather because I want to. Feeling very fortunate, while prepared to be let go by the company at anytime. I started from having less than nothing, and am confident in my ability to live simply or lavishly according to my giant spreadsheet 😅

I feel special. U used my question. 🎉🎉😂😂. I can't answer yes to all 7. Im on track to hit $2.5 Milly by age 60. Once i hit $2.5 i will retire no matter what age. 💪🏾💪🏾💪🏾💪🏾💪🏾

Becoming a millionaire through a Roth IRA or a 401(k) involves different strategies for maximizing profits. A Roth IRA offers tax-free withdrawals in retirement, which can be advantageous if you expect to be in a higher tax bracket later in life. On the other hand, a 401(k) provides tax-deferred growth and potential employer contributions, boosting your savings. The optimal choice depends on factors like your current and future tax situation, employer match, and investment options. Consulting a financial advisor can help tailor a strategy that aligns with your financial goals and circumstances.

how do you handle ira inhertited disbursements and tax deductions, seemed like there is nothing

Super helpful video, Ari! I've just recently discovered your content and everything you do is helpful. But this video in particular speaks to us directly. Thank you and keep up the great work! Now, I have to share this with my wife!

The key to avoiding high healthcare costs is to be healthy. I’ve been self-employed for over 16 years and have the ACA since it came out. I pick the cheapest plan which gives my coverage in case of an emergency and all my wellness care. I pay $131 per month for a bronze plan. I have paid up to $270 per month in past higher earning years. I pay out of pocket for things not covered if I need them and get a 45% self pay discount. I don’t pay a lot for healthcare per year and focus on being active and eating healthy non processed foods. I pay less on medical costs than many pay for insurance alone per year. This has been my way to not fund a ridiculously priced industry. I’m nearing 59. Protect your health at all costs!

Hey, everybody-Listen to this podcast soon, instead of worrying alone about your healthcare options in early retirement!

aistockadvisor AI fixes this. Vanguard not optimal for investing.

@Earlyretirementari​​⁠, Hi can you do an example video of a couple retire at 61 & 64, have all in pretax + Affordable care + income 34K a year? Should they do Roth Conversion? Will it impact their ACA? Thanks

I love love love this interview. My mom had some minor dementia in 2018 and I had to take over her finances and move her in with me. Her finances were a mess, but she had done some good things as well. It is really different parenting a parent. But we are 6 years in and still making it work.

this is information i have been looking for you. you guys rock!

Has VMSXX ever decreased in value? I am in the highest tax bracket and looking for a relatively safe place to park my after tax cash.

Hi Ari. Can you please talk about how to target the right tax payments. For example: Should you aim to under or over pay a little. What to do if you have some gains or losses you might take but aren’t sure so then the withholding is off by a few thousand dollars. Should the tax payments be estimated and paid quarterly or maybe withheld from the pension payment every month. How much can you under pay and not get an irs penalty. How bad is a penalty. How do federal rules compare to state rules in general. How much do state taxes influence how large a conversion to do. Thanks in advance.

I want to like your videos but you jump between examples too much and the plot is lost. Stick with one example all the way through and minimize the distractions.

As a 61 year old, I could listen to your mom all day. This was a great video.

At 32, I'm diving into investing for the first time. I’ve started contributing to my 401K and opened a Roth IRA with automatic contributions. My main question is whether asset allocation is crucial at this stage or if I'm just overthinking as a beginner.

@earlyretirementari we're in our 40s and want to get ahead by converting a $40k 401k now, instead of waiting until it's larger. Our provider does not offer in-service rollovers, and they're saying we can only do a distribution. Is a distribution-contribution combo the same as a rollover? What do we need to watch out for and factor in?

Thanks for sharing this. I'm thinking we could fill up our 12% bracket with Roth conversions and keep some of it in cash for expenses in the near future that we don't want to pay from traditional IRA accounts so we can avoid jumping up to the next bracket.

You think you’re so cool…love it!

No. You definitely cannot retire. You need 10x this amount.

Would love to know if I can work until 67 and get health insurance through Medicare? I do not want to retire at 65 or collect SS yet. But I need health insurance. My employer does not provide it. I had health insurance through my wife who will be leaving that employer.

You are great at encouraging people to learn how to spend well.

The rise in tax rates is why I decided to roll over my 401k to a Roth IRA. I don’t want to be 59 and paying taxes on withdrawals from my retirement account.

Can you please give me your opinion on investing in bitcoin and cryptocurrency? My nephew is my CFP and he is not a fan of it. Thank you!

God you ramble! 8 minutes in and what the hell is your point!

Great info for sure ! My wife and I (age 62 and 60) are still working(for 3-5 more years) and now contributing in our Roth 401K's. Prior we have saved aggressively in traditional IRA/401K, and have a sizeable amount (approx. 3,200,000 that will keep growing), so we are concerned about taxes especially at RMD time (75 for us); the issue is we do not have that much outside cash to do much Roth conversions to pay the taxes, we would consider QCD's to help with this. Paying the taxes from the conversion itself I've read is not ideal so not sure if its worth it. Would love to hear any suggestions and strategies you can offer. And does the software you offer if joining, would this assist us in potential strategies ? Much appreciated and thank you !

You may want to iron that shirt next time

Oooh. I feel famous for sneaking one of my questions into your videos, Ari! It's great to see this kind of case study. It does confirm the thoughts I had about this type of situation, but it's so helpful to see the same conclusions coming from "the experts". I also think it's helpful to think about taking extra income vs extra Roth conversions if you know you'll have an RMD "problem" in the future. I expect that by the time I hit 70, that our income + SS will be WELL above what we will need, and tapping traditional OR Roth accounts will be unnecessary, but it has made me start to think about the best use of my investment accounts pre-70: Weighing the thought of converting to Roth, vs just spending more $$ in the early years of retirement, to gifting to children now vs later. Like many people with this "problem", I have been fairly frugal and in "saving" mode for decades. Preparing myself to get into a "spend" mode sooner than later is a big mental change, but shouldn't we reap the benefits of our diligence? It seems better to spend what we can reasonably than piling up a large Roth account simply to transfer to kids upon death. I know you like to show the increased vacations or increased monthly expenses in many of your examples, and it's great advice for people who are projecting ever-increasing portfolio balances.

58 with $3.5M, and a full military pension (worth about $1.6m as an annuity). He makes a great point. Its tough to mentally shift from building wealth, to spending it. My whole life up to this point has been saving, investing, living (way!!) below my means, delaying gratification, etc.. Now I have to suddenly swing that whole mindset around and learn to spend. Yep, first-world problem, but thats why I found this video interesting.

Maybe I missed it, but are income taxes taken into account? If they want to spend $8,500/month, they would have to take out something like $14K to cover taxes. Is that included in the model?

Thanks so much for this. I have a pension that puts me in the 22% bracket and I am years away from SS. I am hoping in a few years you will have enough advisors to lower your required portfolio amount. In the meantime, I will sign up for your early retirement academy.

simple strategy if you dont need it dont use it if you need a little bit take just a little bit. seeing all that money it does make it tempting but just use only what you need keyword need.

Since I do have a 401k and a Roth 401k do I need to start a Roth IRA ? Or can I just raise my Roth 401k contribution to the max.

Can you roll a 401k into a ROTH IRA?

Your initial argument doesn't really make sense to me. I don't see an issue with them dying with over $300,000 (in today's dollars) left in their account. I understand it's considerably less than what they started with, but who wants to be the richest man in the graveyard.

I love watching these case studies. We're in the boat of "Don't convert, spend more instead!" It's great hearing you encourage others to do that. We're currently planning a nice trip to France over Thanksgiving with our son and his wife. And I have not had time to book a Disney trip.

The $300K+ is after 30 years. The $65K savings is in the 1st 3 years. What would this $65K grow to after 30 years? Wouldn't this be the better comparison?

My experience with a DFA advisor was to do factor investing (overweighting in small-cap growth/value relative to a total market weight). There is a lot of academic research supporting factor investing in domestic small and mid capitalization companies and emerging markets in the long term for additional alpha generation. The 'price' of this using DFA is: threefold a. Need to work through a financial advisor, b. Number of funds employed (18+ for just the equity portion of your portfolio), and c. rebalancing; likely more frequent than annual. I do not find the discussion points compelling as it relates to 'price' of an index fund or ETF. This maybe an issue for small asset management firms, though between held float (cash), places like Vanguard/Fidelity have significant capacity to absorb significant fund flows on a daily basis. Also, the disciplined individual investor maybe targeting withdraws in 5 to 20 years, so a daily price change should not be impactful, rather the performance over long timeframes.

I dont expect to ever take out but the minimum. I will be only using those dividends that will be in my account. Take the apples dont cut the tree

Can a reasonable argument be made that whenever someone has a really bad RMD problem - they are simply not spending enough? Assuming they don't have some kind of incredibly aggressive legacy goal.

Advisors over 1% AUM is crazy. I wouldn’t even go off a percentage anyway. Just pay a flat fee and check in from time to time as the markets and taxes change. Otherwise once you get set you usually are good to go for several years. No need to pay $12,000 a year to manage a portfolio worth $1m. They’re likely not saving you $12k annually.

It is really not enough. $1.1 million in property will mean a lot of property taxes even if its paid off. I feel bad for these folks that won't be getting a pension. It makes all the difference. At 60 my pension will be around 5300 a month. Plus my projections will show I'll have 1.4 million in 401K. Sad to say, that may not even be enough.

I have traditional and roth 401K. I'm 65 and retired. I want to withdraw from both account each month. How do I go about withdrawing without paying so much tax. Thank you

Excellent content Ari! Your stories and information have helped me critique our retirement plan. The comments about not using rule of 55 unless necessary is making me do a little more assessing of my plan. I am planning to use the rule of 55 and here is why. We are able to Roth convert most of our funds, staying within the 12% tax bracket, staying in the lowest IRMAA bracket, and avoiding capital gains. However, my wife's tax deferred 401K may have too high of a balance to stay within the parameters I mentioned previously, resulting in higher taxes and RMD's late in retirement. In about 16 months, I will be retiring at 59 and my wife will be retiring at 55, so there is 2 years of no income before I start pulling SS and she starts pulling her Pension. We may need to pull funds from one of the retirement accounts to bridge that two years, so I was going to use rule of 55 to draw about $100K from my spouses tax deferred account. This draw would bring the balance down, then the smaller Roth conversions in the following years will allow us to avoid the RMD's. Note, we are using Boldin for retirement planning, and all her current contributions are going to Roth 401K(except for Employer Match). Of course a change in the market could cause a change in plans as well. What is your thoughts of planning to use the rule of 55 for this situation? Thank you for all you do for us!

Thank you for all of your content Ari. My wife and I found your and James's podcasts / youtube channel a few months back. We have absolutely learned more in the last few months than we have in the last ten years! We also have completed the 'retirement academy' that James offers and have found access to the Right Capital software very helpful. Question: If we sign up for your academy, would the content be similar to what we just completed, and would it also be access to the same software we are currently using? Keep up the amazing work!

My wife used to say that I “nerd out” on the early retirement and spend too much time working on it. I retired in 2021 at 60 with a small pension and lots of time on my hands. In 2021 our net worth was approx 1.5 mill. Mainly rental real estate and some stocks etc. Recent net worth is much higher and I just bought my wife a dream home for 800k cash. Believe me when I say the time spent learning to understand the details of what Ari is teaching and how it applies to your particular situation are well worth the effort! I get a new reminder or good tip every time I watch one of his videos

Really enjoyed the part where you discussed what to do with parents wealth after they move on. Would love to see an episode based on discussing this topic with elderly parents. Questions for them, and broaching the subject.