How many Doras are out there: day one of retirement, here's a million bucks, put it all in equities. Zero 401k, zero roth ira, zero else, 100% of retirement income coming in LTCG. I understand that this is just to compare two opposite hypothetical individuals, but her case has to be so uncommon that the whole thing is kind of unrealistic. Generally speaking, I am enjoying this channel, and the videos have by and large been helpful.
Being 60 I can say that most of my friends and coworkers died way before 70. Some died at 40. Most died somewhere between 55 and 65. . I know very few making it to 80.
So many things wrong with this presentation. The early tax savings that Doug would have had by putting away a million dollars over his career would have been enormous (or he could have had a significantly better standard of living during his working years) and he probably would have had one and a half to 2 million + if you took that into consideration. In other words if they made the same income, Doug could have put away more because he was getting preferential tax treatment which would result in considerably higher retirement funds. And astute thinker will find this presentation meaningless.
I agree! This video shows the AMAZING fact that having $1.1M after tax is better than having $1.1M pre tax. Who would have guessed! If this is typical of the company, wouldn't consider using them as advisors!
You’re right Ryan - someone who contributed to a tax-deferred retirement vehicle like an IRA would absolutely have more income during their earning years. Who’s to say Doug wasn’t driving a Lambo to work & leading a lifestyle of the rich & famous pre-retirement?! We don’t know. And that wasn’t the point. Also agree with Bernard that all things being equal, comparing two identical retirement portfolio amounts tax-deferred vs after-tax would absolutely favor after-tax during retirement. No one will argue that. Instead, I see this as an exercise in the 4% rule’s role & how it should (or shouldn’t) be used in retirement planning. In that light, this was an extremely comprehensive case study which any adherents of the 4% rule would be wise to heed.
Wow... you missed the entire point. The point was that once you are near retirement, and think you can follow the 4% rules to decide how much money you can safely withdraw... well it doesn't work that way. The answer depends on how much saving you have in which account types. This video has NOTHING to do with what you should have done at a younger age - it is for people already on the cusp of retirement to illustrate specifically how different the situation can look depending on when you claim Social Security and what accounts you draw out of.
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How many Doras are out there: day one of retirement, here's a million bucks, put it all in equities. Zero 401k, zero roth ira, zero else, 100% of retirement income coming in LTCG. I understand that this is just to compare two opposite hypothetical individuals, but her case has to be so uncommon that the whole thing is kind of unrealistic. Generally speaking, I am enjoying this channel, and the videos have by and large been helpful.
Outstanding financial content from one of the top advisors in financial planning.
Being 60 I can say that most of my friends and coworkers died way before 70. Some died at 40. Most died somewhere between 55 and 65. . I know very few making it to 80.
great info and presentation, very comprehensive!
But Dora spent a lot more money getting to a million since she payed taxes before she put her money in savings right? So pay taxes before or after.
As an owner of a business, she would have access to many more ways to reduce her taxes than Doug.
@@davidfolts5893 Most people do not have a business though
So many things wrong with this presentation. The early tax savings that Doug would have had by putting away a million dollars over his career would have been enormous (or he could have had a significantly better standard of living during his working years) and he probably would have had one and a half to 2 million + if you took that into consideration. In other words if they made the same income, Doug could have put away more because he was getting preferential tax treatment which would result in considerably higher retirement funds. And astute thinker will find this presentation meaningless.
I agree! This video shows the AMAZING fact that having $1.1M after tax is better than having $1.1M pre tax. Who would have guessed! If this is typical of the company, wouldn't consider using them as advisors!
You’re right Ryan - someone who contributed to a tax-deferred retirement vehicle like an IRA would absolutely have more income during their earning years. Who’s to say Doug wasn’t driving a Lambo to work & leading a lifestyle of the rich & famous pre-retirement?! We don’t know. And that wasn’t the point.
Also agree with Bernard that all things being equal, comparing two identical retirement portfolio amounts tax-deferred vs after-tax would absolutely favor after-tax during retirement. No one will argue that.
Instead, I see this as an exercise in the 4% rule’s role & how it should (or shouldn’t) be used in retirement planning. In that light, this was an extremely comprehensive case study which any adherents of the 4% rule would be wise to heed.
Wow... you missed the entire point. The point was that once you are near retirement, and think you can follow the 4% rules to decide how much money you can safely withdraw... well it doesn't work that way. The answer depends on how much saving you have in which account types. This video has NOTHING to do with what you should have done at a younger age - it is for people already on the cusp of retirement to illustrate specifically how different the situation can look depending on when you claim Social Security and what accounts you draw out of.