Tax planning is crucial for optimizing investment returns. If not planned well, taxes can eat into your gains and significantly affect your portfolio growth.
Absolutely, proper tax planning can help minimize tax liabilities and maximize after-tax returns. It's essential to consider factors like capital gains taxes, dividend taxes, and tax-efficient investment strategies.
Absolutely. And with the fear of not being able to retire comfortably, people might be tempted to make risky investments or neglect proper financial planning, which could spell trouble for their portfolios in the long run.
Changes in tax policies, both domestically and internationally, can have significant implications for investors. It's crucial to work with financial professional who understand these complexities and can help navigate them effectively.
Financial planning and retirement strategies are crucial, especially in today's economic climate. With global economic fluctuations and uncertainties, it's essential to have a solid plan in place to protect your financial future.
indeed, most people downplay the roles of financial planners until burnt by there mistakes. Productivity is optimized and keeping up to date strategies and analysis makes it more lucrative. I've been able to navigate the volatilities and scaled up 880k from 60k with professional guidance.
I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $1m+ before retirement, I'm 55.
Those sound like great picks! consider financial advisory so you don’t keep switching it up, top 3 payers for the month were $OHI, $KMI, and $EDP... not bad for 350k
You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 14.3%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an advisor.
I'm intrigued by this. I've searched for financial advisers online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, Vivian Jean Wilhelm turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
The high levels of withdrawals for Roth conversions in the 7 percent range isn't all consumed. I don't track how reinvesting the unspent Roth conversion puts stress on the plan. I'm probably misunderstanding.
Great video. I like how you explain that some of the choices around tax planning are personal decisions and based on which are based on what each client is trying to optimize for. One thing that I wish you would have covered is how to capture the expected tax savings that result from doing Roth conversions and deploying those expected savings in the form of present spending. You seem to imply that paying taxes now as a result of Roth conversions creates pressure on the portfolio (and potentially mental stress) because it crowds out other potential discretionary spending and/or raises your withdrawal rate, but isn't it also true that the conversions themselves will increase after-tax lifetime cash flow and, if that is the case, who can't those savings be incorporated back into the current spending plan to essentially equalize the negative impact of paying additional optional taxes in early years? Thanks.
It would be nice to see the after conversion tax bracket chart for comparison and to know when the break even tax cost is which is normally in your late 80's when converting in your 60's.
Able to - want to = rith or gift wiggle room I would also consider what is comfortable tax rate right now and converting all surplus to Roth this would avoid regret of not leveraging lower tax brackets in earlier period.
Enjoyed the information. Liked the detailed comparison graphs (Want to Spend vs Able to Spend and Cost of Roth Conversion). Not to mention the examples of biting the bullet now to enjoy your money while at early retirement age. Thank you.
She should fill those 12%/15% brackets with Roth conversions and delay SS until 70. Maybe even the next bracket. She will save more than the subsidy she is getting for health care and actually increase the future post tax utility of her money (verses tax savings). You have performed a great analysis and provided a great way of looking at this planning. My guard rail system is different. Since my base spending is much less than my available funding. I perform a MonteCarlo(MC) each year and determine a spending rate for my desired probability of success and use that as my upper limit of spending. In the MC I have included one time spendings such as new cars and a one time move/downsizing even a stint in the nursing home.
Tax planning is crucial for optimizing investment returns. If not planned well, taxes can eat into your gains and significantly affect your portfolio growth.
Absolutely, proper tax planning can help minimize tax liabilities and maximize after-tax returns. It's essential to consider factors like capital gains taxes, dividend taxes, and tax-efficient investment strategies.
Absolutely. And with the fear of not being able to retire comfortably, people might be tempted to make risky investments or neglect proper financial planning, which could spell trouble for their portfolios in the long run.
Changes in tax policies, both domestically and internationally, can have significant implications for investors. It's crucial to work with financial professional who understand these complexities and can help navigate them effectively.
Financial planning and retirement strategies are crucial, especially in today's economic climate. With global economic fluctuations and uncertainties, it's essential to have a solid plan in place to protect your financial future.
indeed, most people downplay the roles of financial planners until burnt by there mistakes. Productivity is optimized and keeping up to date strategies and analysis makes it more lucrative. I've been able to navigate the volatilities and scaled up 880k from 60k with professional guidance.
I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $1m+ before retirement, I'm 55.
Those sound like great picks! consider financial advisory so you don’t keep switching it up, top 3 payers for the month were $OHI, $KMI, and $EDP... not bad for 350k
You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 14.3%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an advisor.
I'm intrigued by this. I've searched for financial advisers online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, Vivian Jean Wilhelm turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
Thank you for presenting this information through an objective lens. Very helpful to know. 🙂
The high levels of withdrawals for Roth conversions in the 7 percent range isn't all consumed. I don't track how reinvesting the unspent Roth conversion puts stress on the plan. I'm probably misunderstanding.
Lovely video! Thank you!
Great video. I like how you explain that some of the choices around tax planning are personal decisions and based on which are based on what each client is trying to optimize for. One thing that I wish you would have covered is how to capture the expected tax savings that result from doing Roth conversions and deploying those expected savings in the form of present spending. You seem to imply that paying taxes now as a result of Roth conversions creates pressure on the portfolio (and potentially mental stress) because it crowds out other potential discretionary spending and/or raises your withdrawal rate, but isn't it also true that the conversions themselves will increase after-tax lifetime cash flow and, if that is the case, who can't those savings be incorporated back into the current spending plan to essentially equalize the negative impact of paying additional optional taxes in early years? Thanks.
What asset allocation and rate of returns assumptions are you making ?
It would be nice to see the after conversion tax bracket chart for comparison and to know when the break even tax cost is which is normally in your late 80's when converting in your 60's.
Able to - want to = rith or gift wiggle room
I would also consider what is comfortable tax rate right now and converting all surplus to Roth this would avoid regret of not leveraging lower tax brackets in earlier period.
I don’t see the link in the description that you mentioned about the webinar that you gave.
Enjoyed the information.
Liked the detailed comparison graphs (Want to Spend vs Able to Spend and Cost of Roth Conversion).
Not to mention the examples of biting the bullet now to enjoy your money while at early retirement age.
Thank you.
Why is a person with $2.5 million getting health care subsidies?! Buy your own insurance.
Kessler Summit
She should fill those 12%/15% brackets with Roth conversions and delay SS until 70. Maybe even the next bracket. She will save more than the subsidy she is getting for health care and actually increase the future post tax utility of her money (verses tax savings). You have performed a great analysis and provided a great way of looking at this planning. My guard rail system is different. Since my base spending is much less than my available funding. I perform a MonteCarlo(MC) each year and determine a spending rate for my desired probability of success and use that as my upper limit of spending. In the MC I have included one time spendings such as new cars and a one time move/downsizing even a stint in the nursing home.