Top 8 Tax Tips For Retirees in the 60s! 💰
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- เผยแพร่เมื่อ 25 ก.ค. 2024
- Is your retirement plan built for maximum tax efficiency in retirement? The first decade of retirement is the most important in setting your situation up correctly? You can schedule an appointment with one of our Retirement Experts to look at your situation and help you plan for your future. Call us at (920) 544-0576 or go to www.safeguardinvest.com/contact.
On average, taxes will be one of your largest, if not your largest expense in retirement. Now some retirees will just simply accept the taxes they have to pay.
But this is an expense category that is controllable with careful tax planning in retirement. Specifically, tax planning in your 60s.
The first decade of your retirement will lay the foundation for the remainder of your retirement.
In this video today, I am going to show you the Top 8 Tax Tips You Should Be Using to Build a Tax Efficient Income Stream in Retirement.
Here are the timestamps:
0:00 Introduction
0:43 Delay Social Security For Permanent Tax Savings
3:38 Use Strategic Asset Location to Increase After-Tax Wealth
6:07 Take Advtange of This Closing Tax Opportunity Window
7:04 Earn a Premium Tax Credit for Massive Healthcare Savings
9:48 Avoid the Widow Penalty
11:40 Control Your Tax Residency
13:51 Maximize this Underutilized Asset
16:53 Minimize RMDs To Avoid a Cascading Tax Problem
#TaxTips #RetirementIncomePlanning #TaxSavings
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Excellent! I like summation videos like this. I had heard some of these items before, but if I hear them enough maybe I will actually act on them!
Great comprehensive video !
Excellent. Thank you!
This is great, and very valuable indeed.
Cheers,
Jef
Another great video.
You are on a roll - Another video that is timely for me! Thanks Eric!
Thank you Terry!
Great video! Liked and subscribed. Turning 54 soon and been diving deep into retirement planning. Your channel.among my favorites and this video was LOADED with strategic advice on tax planning, including a number of concepts I had not heard before. THANK YOU!
Solid video, packed with lots of great advice. Does Safeguard offer fee based tax advice exclusively or is there a requirement to have assets under management with Safeguard?
Thank you for this excellent information. Do you have any other clips that explain the slide at 15:22 in more details? Thanks again
As always - great information!
I love your videos I’m close to retirement, but I’m a little confused by the suggestion to use the lower tax rate in the next couple of years to do Roth conversions and also showing all up lower income to take advantage of the healthcare premiums which would you consider to be more of a priority or is there another way to solve that and take advantage of both thank you
This guy is spot on clear concise simple information.
This guy appreciates the kind words! 😀
Does that ss tax savings work if you dont have cash or taxable accounts. If only deferred does delaying ss still save you as much as you indicate?
Eric, I value your financial information which is excellent. I am not sure if time is a constraint for your videos as it is run very fast with very little pause in order for me to comprehend and reflect.
Just pause it to reflect or slow down the speed. I just take notes.
Time is always constraint, so Eric doing it fast is the best. We always have the option to pause and rewind.
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Try adjusting playback speed to 0.75 or a custom speed. I often do it when listening to a fast speaker or thick accent.
I turned 66 in January 2022. I reached my full retirement age in May, 2022. I retired in July 2022 and started taking social security in September 2022. After watching your video, I decided to delay to 70. So I submitted a request form to social security to make that change. I was told if my request gets approved, I will need to pay back all the money I received since September 2022. I want to follow your other advice, which is to do a Roth conversion. So I will need to figure out how much to convert. My question is: will I be able to subtract the money I received from social security in 2023 when I calculate my income since I paid it back? Thank you very much for your videos. I wish I had discovered them earlier, before making all kinds of mistakes!
Does it make sense really to accelerate tax payments with today dollars than paying those taxes with devalued inflation adjusted future dollars? To do an Apple to Apple comparison, You need to compare each scenario either in then year dollars or current your dollars. It makes a difference
Great video , I am a subscriber and find your videos invaluable, if you can clarify something for me , I will be retiring at 62 my wife is 59 and would I think ach subsidies are the best way to pay for healthcare (I do have multiple retirement buckets to pull from) . Will that strategy work against a Roth conversion plan in those years leading up to Medicare availability? Thanks
Yes, ACA subsidies and Roth conversions are competing priorities (unfortunately).
Tip: ACA subsidies can have opportunity costs, if you have significant savings.
Living in 2 states sounds like a good idea on paper but I feel like having 2 homes, 2 sets of home owners insurance, 2 sets of furniture, travel expenses, 2 sets of property tax etc. would chew through all of the tax savings from being in a state without state income tax. It would be worth looking at the numbers but there are a lot of hidden expenses there
Great summary. As unusual I love the high information density and fast pace. However, I find the video inserts distracting and off point. They pull my weak mind off your points.
Thank you, we appreciate the feedback!
Caution - Simply living in another state for 6+ months (180 day rule) won't work for Minnesota (12.57). Minnesota will consider you a MN resident unless you can meet the 20 plus criteria in addition to the 180 day rule. As a seasonal resident I've been there, done that.
Given the long term stock market growth rate is 10% and waiting every year from full retirement to age seventy is an 8% gain in annual social security payments, how can using qualified funds to bridge the income gap between 66 and 70 and paying taxes on those withdrawals be a worse overall plan than delaying social security till 70? Is social security really that good of a tax deal???
8% real. 10% nominal
I think all your videos are very informative, but some of the more recent are edited at too fast of a pace for me to take in all the details. Wealth Wednesdays are always a great pace.
the pause button works miracles and I use it frequently!
I really enjoy appreciate the videos, but I think tip #2 is just wrong. In your own video "Does a MEGA Roth Conversion Make Sense?" at 3:40 you say that whether or not you should do a conversion from a traditional IRA to a Roth IRA depends on the Roth conversion tax rate vs. IRA withdrawal tax rate and you say "the growth trajectory doesn't matter". The same applies in this case.
Lets do a simple example where we have a Roth IRA worth $100k, a traditional IRA worth $200k, and to keep the math simple we will say the traditional IRA will be taxed at a %50 rate when we withdraw money. The first thing to note is that these two accounts have the same spending power because they are initially both worth $100k of after-tax money and we should think of our investments in terms of their estimated after-tax value. Lets say that we can choose to invest in bonds for 10 years and get a 10% return, or stocks for 10 years and get a 50% return. If we put all the stocks in the Roth IRA as you suggest the Roth IRA will be worth $150k, the traditional IRA with bonds would be worth $220k before taxes and $110k after taxes, which will give us a total of $260k after taxes. If we do the opposite strategy and put all the bonds in the Roth IRA the Roth IRA will be worth $110k, the traditional IRA will be worth $300k before taxes and $150k after taxes, and we end up with exact same amount of $260k after taxes. So assuming we allocate bonds vs. stocks based on the accounts after-tax value the asset location of a Roth IRA vs. a traditional IRA does not matter.
To make sure anyone reading this isn't mislead, asset location does matter when choosing between a retirement account and a taxable account (don't put bonds or high yield dividend stocks in your taxable account). Also required minimum distributions would make us prefer to have assets in a Roth IRA (as Eric has explained well in other videos), but that issue is separate from the above. Thanks again for the great videos!
The two ideas of doing Roth conversions and keeping income low pre 65 years old in order to qualify for ACA premium tax credits are at odds with each other.
I have an inherited IRA (pre 2020j that I had RMD’s while at the same time was on ACA and trying to keep income low enough to qualify for a PTC. It was tough to be able to pull out extra funds and still qualify for PTC. Now I am on Medicare and having to deal with pulling out extra distributions from inherited IRA to reduce future RMD’s once on Social Security, which I am deferring until 70. Plus dealing with IRMAA surcharges. Head exploding.
I think you dont have REQUIRED RMDs until you're 72, and you can withdraw from Roth without affecting Medicare OR SS taxation, ??
@@sz4179 inherited IRA’s have RMD’s prior to age 72, unfortunately. There are separate rules for RMD’s from inherited IRA’s.
Ugh, I am in this same boat, except my inherited IRA is post 2020 and I'm forced to take it all within 10 years while wanting to do Roth conversions, not pay a fortune for healthcare pre-65 , IRMAA penalties, and all of the rest. Head exploding here, too.
I can't come back to your tax amounts of $5,090 and $1,827 in your delay social security tip. Will you please share with me your computation of those amounts? Thanks.
Same problem. The tax figure at age 70 is too low.
And I find my life at age 73 in the midst of the coming RMD trap. I wish I planned more sooner...
Love your information. However you need to slow down speaking so your ideas can sink in. Thanks
The problem with Roth conversion strategies in the 60's "clean up" period, is that many 60+ yo may be at peak earning capacity. Any Roth conversion is going to be tax death unless someone simply stops working. There are many types of careers that can easily be held into one's eighties, if one wanted. And with many such careers, yearly income may be increasing, not decreasing into one's 70's and 80's.
Yeah, If I keep working to 65, I'm at top tax bracket for my earning years and kids all grown, house paid for. Seems like a bad time to convert I would think. I guess I could start at 65 for 5 years.
who wants to work into their 80's??
@@michaelkaufman9625 Lots of people. Only people who trashed out their bodies early really care about retiring at the usual retirement age. And as touched on, there are many jobs that are not that physical and can be continued well past the traditional 65 yr boundary.
I think the clean up period is the gap between retirement and start of Social Security. Not everyone will have a clean up period.
These are great tips but the speed that you talk at just seems very rushed which causes confusion for old people
with TH-cam you can adjust the playback speed. I usually speed them up, but you can also slow them down. But slower sometimes seems to distort the audio more than speeding up, depending on the speaker's style/cadence.
Too fast, gives me a headache.
As usual, the so called Financial advisors are blind to real estate, either they don't know or don't talk about real estate. You can take your IRA and invest in Real estate - there are many firms that can do that. Are there some tax advantages to invest in real estate - ask yourself that question!
Can't we think that paying tax is a good thing for the country and next generations, especially if your retirement coffer is such big that you save tax to this extent...? Why are the rich so fussing about saving tax?
Primarily so people that think like you do someday quit expecting other people to pay for everything YOU think is important. Please quit trying to spend my money. You are always welcome to ‘contribute’ more to the government. I prefer to ‘contribute’ to things that are important to me, which may not align with your priorities.
Why don't you toss a few extra thousand dollars to the government this tax season so you can feel good about yourself and stop fussing about other people's money.
Can't you stop fussing about things that are none of your business? Other people's hard earned money is absolutely NONE of your business.
Learn to take a breath. YOu speak way too fast. Good info though. Thanks.
Can you talk any faster?! Sheesh. I doubt many who watched this video could follow it. Great content but should have been broken into two videos with you speaking slower.
You will lose your money fast if you pursue this aggressive goal.
?
What about getting a second passport in a country that doesn't tax foreign income, live overseas, renounce us citizenship and have your money vs giving it to the us govt? OR the 183-day rule of living overseas and reducing us taxes and not renounce?..just curious