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2.85% 15-year mortgage. Paid it off 12 years early this Feb 2024. House appraised at 700K. I've never slept better and have never had more peace of mind. Both unexpected. Now I'm putting 6k a month away at 52 years old. this is in addition to my 401K and IRA's.

I didn't hear much about the tax-free growth that you get from converting to Roth - maybe it was in the math somewhere, but it may be even more of a benefit in the long run (compared to avoiding big tax bills on RMDs)

Who cares about charitable donation? SMH

IRS won't see a cent of your charitable distribution, and neither will you.

Retirement is now more difficult than it was in the past. I've been saving for a long time instead of investing, and right now I only have about $400K. considering all the inflation, i'm thinking of investing in stocks, i dont just have idea on market strategies.

You seemed to be focusing on how much you save in taxes. That is the wrong focus. There is a mathematical reason that this is true. But you want to optimize is the after tax spendable assets. That may be what is represented by the "Total Net Legacy" column. The mathematical reason is that if you convert to Roth early and you pay say 10 % in taxes you would pay less in taxes that if you convert later: [P*(1-TR)]* (1+GR)^n= [P * (1 + GR)^n ]* (1 - TR) but the taxes you pay after waiting is a whole lot more. Basically, the IRS's share grew along with your share. What you want to do with Roth conversions is to manage the tax rate to lower values and is where the savings comes in. Basically, it is the progressive tax rates that help make Roth conversions worthwhile.

Interesting case study but at 8:50 why is converting to 24% bracket considered “better” than 22% bracket? Only saves $3k in lifetime taxes but results in $300k less net legacy - seems like converting to 22% bracket is a better trade off and 24% is a good example of doing “too much” conversion. OK - I watched to the end and Alex touches on it at 12:12.

Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.

59 .. you look 75

My Spouse will get no survivor SS benefits due to WEP rules. That makes waiting until 70 problematic..

I would love it if you would do a a little plan for me 350 K I am investing with Wealthsimple. I will be right now. I’m with the bank and they take 1.78% from me but I’m going on my own and I’m going 60/40 XBAL I’M ONLY WITHDRAWING 1000 A MONTH RIGHT NOW. IT’S ALL I NEED I’M 57 I’d like a plan that keeps my money growing rather than depleting. Do you think taking 1000 a month will make that happen? Excuse me I’m very new at this stuff. I’m just learning.

How does it work if you have plans for the low earner to take SS at 62 and the high earner to take it at 70, and the high earner dies at 68 or 69 unexpectedly?

Social Security TRAP? Everyone is different, I am not comparing myself to others.

I lost over $70k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Natalie Rose Strayer

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

2:58

Loading up on more cash IS the necessary objective.

Simple interest earned on a savings account is not the same as apr for mortgage or amortization stop having people think it is aligned it is not. That 5 percent u make is no where close to apr % u pay even if it is 2.5 % the numbers 5 percent saving account u make 500 a year on 10k 2.5 apr on mortgage say u owe 100k u pay 500 a month mortgage 200 a month is interest so in a year u pay 6k and 2500 go to interest that is more like 40 percent in interest a year open ur eyes the numbers dont add up

Luckily, my spouse and I were able to pay off our mortgage early. We took the money we were spending to accelerate our mortgage repayment and invested it right away while we were both still working. We were able to retire early after accumulating what would have been our home payment for over 7 years and maxing out our 401K/403B plans. Thankfully, both of our parents taught in us the importance of living within our means.

The main reason I'm choosing to delay to 70 is to maximize survivor benefit.

Both taking at 67 if both have good earnings records is likely a mistake. The higher earner delaying often is the best compromise. Assuming both die close together goes against the reality of most couples, so a large survivor check is desirable. The lower check goes away!

Why aren't they drawing down that tax deferred account while they have such a low tax rate? What about Roth conversions while they;re still at a low tax rate? Why use up their after tax brokerage only to be hit with higher RMD taxes and possible additional tax on their SS payments by waiting? Doesn't sound like the way I would approach the SS age to start drawing from!

Several things to think about. Before taking SS pull all of the needed money from the IRAs and let the brokerage account grow. When SS kicks in at 70 take enough from the IRA so that their provisional income is such that less that 50% of their SS is taxable and pull the rest of their spending needs from the brokerage account. I think this will provide the best performance and the lowest taxes.

I would have Lisa take SS at 63 and Don at 70. Assuming Don is the highest earner. This gives Lisa the higher survivor benefit. The only reason they would both wait until 70 is if they were doing Roth conversions. But they’re aggressively spending their portfolio early in retirement. So they don’t really qualify there.

You said that by taking SS at 67, their legacy to their heirs will be less. So it seems like in the long run they are better off delaying. Also I would be withdrawing some portion of their tax deferred income in early years rather than getting hit with bigger RMD’s later pushing taxes into higher brackets. In your scenario you are depleting the taxable acct before touching tax deferred. But passing on assets with a low basis to your heirs would be the best assets to pass on (aside from Roth) given the step up in basis they would get.

If I had 3 million dollars, I wouldn’t even worry about collecting SS.

How many viewers of this video actually fall into this level of financial wealth??? The point is, how relevant is this to the viewers or is this just a FLEX as in look how smart I am. For the average couple these decisions aren’t applicable.

8% per year 67 to 70

Thank you for bringing this SS claim strategy. I claimed my SS retirement benefit this month (June 2024), at my FRA (66-1/2 born 1957). I’m initiating a strategy to recoup the 3-1/2 years (or an 8% per year) of increase in waiting until 70 to claim. I’ll invest 100% of my monthly SS benefit in high-risk high-return ETFs, for 42 months, or at least until I turn 70. See where we’re at then. The distinction here for return is simple interest (a straight 8% which is static cash flow), and personal investment which generates compound interest). I collect four hard pensions with zero debt, so I can afford to play high roller for awhile. We'll see how the "great experiment" pans out. Best of luck to your clients!

Not to worry, the corrupt republicans are coming for everyone’s social security so it may be gone enough soon.

Lisa aged quickly from 63 to 64, lol. I question not looking at Lisa claiming SS today while Don delays to age 70. Preserve and grow the highest SS benefit for the surviving spouse. Also, consider tapping the IRA now whether for cash flow or Roth Conversion. Taxes are on sale in 2024-2025 so take advantage of them! The taxable account can be accessed strategically instead of being exhausted first. The tax plan should look further down the road than just 2025 and 2026. Lots of planning opportunities to evaluate annually.

Assets way over average retirees,get real

New subscribe. Their monthly expenses are way too high. What are they spending their money on? 🤔 Take a vacation every other year if they refuse to cut expenses. Why haven’t they paid off that small mortgage already? The sad part is FDR never meant for SS to be taxed but a certain Pres and party did that but that’s another story. Great breakdown on their taxes. I retired this past Oct at 55 and blessed to have a military pension and VA disability. I’m looking to take SS at 62 and investing it. The Rule of 55 also applies to me but I don’t plan to use it and will let my retirement accounts continue to grow. Great video and info!

Go in person to a Social Security Office because they put you on hold for hours if you call. Show up on Wed. or Thurs. I got tired of waiting for at least an hour on the phone. I went in person and they interviewed me in 20 minutes. They then gave me an appointment in two days which completed the process.

When I retired, there was no choice between lump sum and monthly. I’m fine with my monthly. I also have my monthly Social Security payments .

I’m in trouble with California Tax Board because after my husband and away in 2015; I had no idea that he wasn’t paying for California taxes just filing them! I found all the tax letters and never being opened! So, I opened them and found out that he was filing under his name, my name and some with both names when filing! I called the IRS and they said “forget about those!And they would take time to assess everything!” I did call caliber Tax Board and an agent there, basically said the same thing, not to worry because they needed time for assessing everything! I finally got tax warnings from IRS and California Tax Board; that I needed to file some years again! I was scared to get such short notices, not ever knowing how to file these forms! I’ve settled with the IRS and now making small payments monthly! California taxes are being thrown at me to pay all the taxes owed, by June 27th in the amount of $57,000 in back taxes and interest fees! Help me! Not only that but also I’ve been scammed by a tax company that said they were going to help me with taxes and didn’t do anything! Thanks, Cynthia

I sell at vesting and turn the money around into ETFs.

Having non-retirement accounts are critical. The tax flexibility from loss harvesting may add value to many investors. Great video

Yeah…. My spouse passed 10.2023. I took care of his funeral and then sat on the insurance money for 6 months just in case. Also, I tithed his mother, brother and sister money also. Now I just found out today that my mother in law allowed my husband’s niece to fix my husbands Harley without my permission. I balked and then I prayed….and then I responded in such a way so as to inform them that I didn’t appreciate not being consulted.

Having a paid for home and property tax exempt: PRICELESS!!!

2.875% 30 year fixed. Been overpaying the principal ever since our first payment was due. Knocked years off the life of the mortgage in 3 years. We also have the Double Homestead exemption, Home owners who are 65 and older who make under 25k a year are property tax EXEMPT. 100% Disabled Veterans are PROPERTY TAX EXEMPT, Current Military are PROPERTY TAX EXEMPT. We will be totally property tax FREE in 6 years, As soon as we claimed the Double Homestead Exemption, Our property taxes were CUT ALMOST IN HALF.

I've just started the retirement journey. I will admit it is a different mindset from what I'm used to. Much of what you're suggesting is what I've been shifting to. Equity position is the lowest it has been in many years at 40% equities, 20% bond funds, 40% cash invested in Treasuries and Brokered CD's.

What you see is not what you get! Why do they tax us if they can just print $$$?

Why bother with bonds. Just go with dividends (stocks or funds). Stock market drops, dividends still continue. Just my 2 cents.

Its been 3 years and I have made one mistake after another, I don't know what to do, got a lot of bad advice from people I trusted. Now I am in a bad place. I wish I had this advice earlier

That pre-retirement mortgage is killing them. You must be mortgage free prior to retirement. Everyone knows this. Downsize!!

More of this please.. also would be nice to see a follow up of the same clients after 3 or 4 years to see what changes they had to make over time.

Great video! If this couple had 2 million in Roth and 1 million in pretax cash. That would give them at least 7 years or more income. Delaying SS till 70, paying off house. Hopefully Roth assets double in 7 years, then have SS income and Roth only at 70. That’s my plan.