The trick in early/mid retirement years is to just withdraw dividends without touching the principle, combined with a pension or social security, then one should be fine
richard carlin I’m 40 y/o and have a SEP IRA, Roth IRA, HSA, individual brokerage acct, and ultimately Soc Sec at max withdrawal age (70, or whatever max age is down the road). What would be the most tax-efficient Sequential withdrawal/deccumulation approach for me? Roth would be last but I’m not sure about other accounts.
@@PCConditioning I know how much dividends each of my accounts generates. I can set the accounts (including from 401K) to deposit the dividends to a bank account, rather than reinvest. So here, I'm leaving the principle alone and just withdrawing the dividends. In your situation, if you still have to withdraw for minimum distribution more than you spend, you can reinvest in a regular investment account. The goal is to maintain the principle for as long as you can. Trust me, with inflation and other unknown expenses (usually healthcare), at some point we all will need to touch the principle.
This is similar to "the trick is just to have enough money!" The problem is that many people don't have nearly enough saved to avoid touching the principle
Why would any retiree wait until they retire to start selling stocks or sell bonds? You can start collecting dividends and capital gains from your IRA one year before you retire. This will allow you to ride through any market decline. If you have a IRA or 401K. It's not rocket science.
that isnt true. You werent listening. He clearly talked about sequence of returns risk of stocks that can happen in the years before and after retirement.
LOL - what % of viewers are in a $5,000 dollar cost averaging over 30 years income bracket - that is $180,000 per year in 1989 - in 2011 only 4.3% earned that
A $5,000 contribution wasn’t the point. The point was that you would have made an 8.5% return if you contributed an equal monthly amount over a 30 year period including the worst years to be invested.
@@RR-oj6co Then I would suggest using real world numbers (middle class experience). We know that using BS numbers destroys the credibility of everything you say there after.
@@kirkclements4893 Why are you so caught up with the monthly number? The point is the return you're getting. If it makes you feel better put away 20% of your income per year.
@@RR-oj6co that's bs. If you invested 2000 to march 23 2020 your return would be 2% lol .its only because the FED bailed you out it went back up..This guy is full of it because he's making commissions and risks nothing!
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Great topic. Always look forward to a new WealthTrack. Thanks.
$5k a month dca starting 1920, lol, a house was like $100 back then
Glad that volatility on the front end is being addressed instead of ignored. Thanks WealthTrack.
The trick in early/mid retirement years is to just withdraw dividends without touching the principle, combined with a pension or social security, then one should be fine
richard carlin I’m 40 y/o and have a SEP IRA, Roth IRA, HSA, individual brokerage acct, and ultimately Soc Sec at max withdrawal age (70, or whatever max age is down the road). What would be the most tax-efficient Sequential withdrawal/deccumulation approach for me? Roth would be last but I’m not sure about other accounts.
@@PCConditioning I know how much dividends each of my accounts generates. I can set the accounts (including from 401K) to deposit the dividends to a bank account, rather than reinvest. So here, I'm leaving the principle alone and just withdrawing the dividends. In your situation, if you still have to withdraw for minimum distribution more than you spend, you can reinvest in a regular investment account. The goal is to maintain the principle for as long as you can. Trust me, with inflation and other unknown expenses (usually healthcare), at some point we all will need to touch the principle.
This is similar to "the trick is just to have enough money!" The problem is that many people don't have nearly enough saved to avoid touching the principle
Could anyone point me to the Morningstar study on obtaining outsized cash flows from adding an annuity compliment?
No
Annuity can take out 5% yearly. Seems volition decreased. Fiddling with market volition in leer age can be achalleng
Does anyone have a good either value or growth dividend ETF that they use? Thank you.
Brian Moore not etf ..but look at vwiax or vwenx or go 50 50 ....just open account at vanguard....long long amazing record for these.
Why would any retiree wait until they retire to start selling stocks or sell bonds? You can start collecting dividends and capital gains from your IRA one year before you retire. This will allow you to ride through any market decline. If you have a IRA or 401K. It's not rocket science.
Normal peoples check may be just $4000 per month
Great insight and advice!
SPIAs are the way to go for pay the bills money.
Reference 60 40 portfolio. Does this mean 60stocks 40 bonds?
yes
60:40 portfolio means 60% of the portfolio in stocks and 40% in bonds.
Who can save $5000 per month
As a family yes , but for a single person its sound crazy high
Its almost like he sees no down side to investing in stocks. He must sell stocks for a living.
that isnt true. You werent listening. He clearly talked about sequence of returns risk of stocks that can happen in the years before and after retirement.
This guy is full of it. 2000 to 2020 people lost their shirt.
LOL - what % of viewers are in a $5,000 dollar cost averaging over 30 years income bracket - that is $180,000 per year in 1989 - in 2011 only 4.3% earned that
A $5,000 contribution wasn’t the point. The point was that you would have made an 8.5% return if you contributed an equal monthly amount over a 30 year period including the worst years to be invested.
@@RR-oj6co Then I would suggest using real world numbers (middle class experience). We know that using BS numbers destroys the credibility of everything you say there after.
@@kirkclements4893 Not really. The 8.5% return still applies.
@@kirkclements4893 Why are you so caught up with the monthly number? The point is the return you're getting. If it makes you feel better put away 20% of your income per year.
@@RR-oj6co that's bs. If you invested 2000 to march 23 2020 your return would be 2% lol .its only because the FED bailed you out it went back up..This guy is full of it because he's making commissions and risks nothing!
No one will be getting 11% in 2019
I got 8.9 percent.
The market returned almost 30% in 2019.