Adjusting spending downwards a bit can get people so much more time in retirement. Can't imagine what your clients are spending on that they need to wait so long to retire with that kind of money ...
I plan to retire soon at 55, hubby retired a few years ago at 56. We know our budget (both minimum dignity floor and discretionary) and plan to review quarterly at first then every six months. To help us actually spend, we’ll deposit funds into our checking account in the same cadence as a paycheck. Initial withdrawal rate is 2.7% for what we need and want. We’ve talked a lot about what life will look like in retirement. We are looking forward to doing QCDs once old enough.
Very good video! I’m 1.5 years into retirement (albeit with a part-time job I really enjoy) and I definitely need to work on the spending thing. I’ve been a saver for so long, it’s really tough to change that. This year I’ve got a few possible ways to spend more, and doing just that was my New Year’s resolution.
To me, not talking about shared travel goals in retirement ranks right up there with not discussing whether or not to start a family before getting married! Imagine getting married only to discover that you are 100% for having a kiddo and your spouse is 100% against it!
I feel like I’m stuck. I have $500,00 in a IRA and on Medicare at 67 and my wife, still working, and we bring in around $150,000 a year. I want to convert my IRA to a Roth and not pay huge tax hit on it. I’m concerned about higher premium on Medicare also since it may take years to move my IRA to a Roth and maintain at low tax bracket. The Medicare premiums keep going up on every threshold. I could end up paying 3 to 4 times my premium on Medicare. Any suggestions?
I love your videos, Ari! I think I've watched darn near every one! I'd love to see a video on using your Early Retirement Academy with an "AND" scenario on tax strategy. For example, we have a few years post retirement where we have a very low ordinary income. However, the retirement academy is suggesting we use the ROTH conversion strategy for "No IRMA." I'm trying to figure out how to calculate the impact of filling up the NBB during the 3 - 4 years of living off capital gains. Any ideas on how to smash those two scenarios together?
Your videos are so helpful! Future ideas: I loved the example you did with your wife and her pension/403b. As a firefighter in Texas, I am desperate for some more examples like this. Trying to figure out an appropriate strategy for my wife and I is tough. Is my pension looked at as "bonds" in my asset allocation? When I retire, should I pull form my 457b or my brokerage first? I could technically retire and not draw my pension, live off of superhero and 457b and then when that runs down pull my pension that would be a little higher than if I activated it day one. If I retire at 51 and my wife works till 55 or 61 or more? how to figure it all out. As many examples as you can do with state pensions or similar would be amazing!
How about an even MORE obscure idea: 457b in-plan Roth conversions for people who are under age 59.5??? lol. I've recently been thinking about doing this in my first few years of retirement, but there's really not a lot of info out there about it. I know, I know, it's kind of niche, but I do believe one of the advantages of having a 457b vs 401k is that (if your provider allows in-plan conversions) you can pay Roth conversion taxes out of your 457b plan before age 59.5. Always love your content, Ari.
@@Lissa1988 As I understand it, a 457b doesn't have any penalties for withdrawing before 59.5. There age limits are typically determined by your plan, so as long as you are eligible to retire, you can withdraw without penalty. I also understand that IF your plan allows, you can do in-plan Roth conversions, and since withdrawals should be allowed before 59.5, I believe that you should be able to pay Roth conversion taxes with 457b funds as long as you meet the age requirements of the plan. No rules of 55 needed.
The more invested, the higher paid out in commissions and fees. Another CFP suggested that fact affects many financial advisors when marketing to their clients. Case in point: $2,000,000 is your bottom line. Do you agree? Thanks!
Adjusting spending downwards a bit can get people so much more time in retirement. Can't imagine what your clients are spending on that they need to wait so long to retire with that kind of money ...
I plan to retire soon at 55, hubby retired a few years ago at 56. We know our budget (both minimum dignity floor and discretionary) and plan to review quarterly at first then every six months. To help us actually spend, we’ll deposit funds into our checking account in the same cadence as a paycheck. Initial withdrawal rate is 2.7% for what we need and want. We’ve talked a lot about what life will look like in retirement. We are looking forward to doing QCDs once old enough.
Very good video! I’m 1.5 years into retirement (albeit with a part-time job I really enjoy) and I definitely need to work on the spending thing. I’ve been a saver for so long, it’s really tough to change that. This year I’ve got a few possible ways to spend more, and doing just that was my New Year’s resolution.
To me, not talking about shared travel goals in retirement ranks right up there with not discussing whether or not to start a family before getting married! Imagine getting married only to discover that you are 100% for having a kiddo and your spouse is 100% against it!
Ari, you are so encouraging. So glad to hear you say that it's ok to spend more than 4 % for a few of the early years. Thank you!
Great point about balancing spending in Y1. I just retired early at 55 a few days ago and working hard to transition into that “successful spender”.
@@user-bs1lj3kv7h thank you
Would like to retire in about 3 years and found your tax suggestion to be most relevant for me. Thanks Ari and Happy New Year!
Great- thank you!
It was helpful to hear the example for someone retiring without a partner. Thank you for the content.
@@kaytee1617 my pleasure :)
I am going to check this video out... Even if you do seem kind of young to be talking about this subject 😆 😊
I feel like I’m stuck. I have $500,00 in a IRA and on Medicare at 67 and my wife, still working, and we bring in around $150,000 a year. I want to convert my IRA to a Roth and not pay huge tax hit on it. I’m concerned about higher premium on Medicare also since it may take years to move my IRA to a Roth and maintain at low tax bracket. The Medicare premiums keep going up on every threshold. I could end up paying 3 to 4 times my premium on Medicare. Any suggestions?
I love your videos, Ari! I think I've watched darn near every one! I'd love to see a video on using your Early Retirement Academy with an "AND" scenario on tax strategy. For example, we have a few years post retirement where we have a very low ordinary income. However, the retirement academy is suggesting we use the ROTH conversion strategy for "No IRMA." I'm trying to figure out how to calculate the impact of filling up the NBB during the 3 - 4 years of living off capital gains. Any ideas on how to smash those two scenarios together?
@@susanlee594 here you go! th-cam.com/users/liveXkurjny1-Dc?si=PaVne3kNS8sg-3vr
@ thank you!!!! As always!!!! Happy New Year to the Earl of ERP!
... i once managed a gutter ball with the bumpers. Would have been impressive if it was on purpose. :)
@@SaraAnderson-di6hf HA
Your videos are so helpful! Future ideas: I loved the example you did with your wife and her pension/403b. As a firefighter in Texas, I am desperate for some more examples like this. Trying to figure out an appropriate strategy for my wife and I is tough. Is my pension looked at as "bonds" in my asset allocation? When I retire, should I pull form my 457b or my brokerage first? I could technically retire and not draw my pension, live off of superhero and 457b and then when that runs down pull my pension that would be a little higher than if I activated it day one. If I retire at 51 and my wife works till 55 or 61 or more? how to figure it all out. As many examples as you can do with state pensions or similar would be amazing!
@@pvillepat thank you! I have videos on those if you go through the history!
How about an even MORE obscure idea: 457b in-plan Roth conversions for people who are under age 59.5??? lol. I've recently been thinking about doing this in my first few years of retirement, but there's really not a lot of info out there about it. I know, I know, it's kind of niche, but I do believe one of the advantages of having a 457b vs 401k is that (if your provider allows in-plan conversions) you can pay Roth conversion taxes out of your 457b plan before age 59.5. Always love your content, Ari.
@@kersting13if your 457b is thru a state or local govt, you may be able to withdraw funds at 50 or 55 using the rule of 55.
@@Lissa1988 As I understand it, a 457b doesn't have any penalties for withdrawing before 59.5. There age limits are typically determined by your plan, so as long as you are eligible to retire, you can withdraw without penalty. I also understand that IF your plan allows, you can do in-plan Roth conversions, and since withdrawals should be allowed before 59.5, I believe that you should be able to pay Roth conversion taxes with 457b funds as long as you meet the age requirements of the plan. No rules of 55 needed.
The more invested, the higher paid out in commissions and fees. Another CFP suggested that fact affects many financial advisors when marketing to their clients. Case in point: $2,000,000 is your bottom line. Do you agree? Thanks!
@@user-dixk2rx5gz8f no