Increase Retirement Income Using Little Known Tax Loophole (QLAC)
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- เผยแพร่เมื่อ 30 มิ.ย. 2024
- Today we are diving deep into one of the most pressing issues concerning retirees: managing taxes and controlling income in retirement.
Especially, when those RMDs can cause a significant portion of your social security benefit to be taxed.
Another looming issue is the longevity risk, the fear of outlasting benefits which often leads to retirees spending way less during their golden years.
However, recent changes in the tax code through the use of a QLAC now provide us with effective tools to tackle both these issues.
So, in this episode, we will:
-Introduce these recent tax changes
-Explain how they work
-Illustrate them with a real-life example
-Walk you through the pros and cons
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Private Facebook Group // / retirementforum
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ABOUT ME
I’ve always been passionate about personal finance, investing, real estate, and helping people find the freedom to live their life with purpose. But when my dad died in 2015, I tried to help my Mom find an advisor to sort out her finances. Instead of a helping hand, I found an industry of financial advisors dominated by glorified salespeople working on commission - pushing products that were not in my mother’s best interest. Or advisors with minimums that shut-out all but the ultra wealthy. Disappointed with the options, I took matters into my own hands and launched Foundry Financial, a wealth management firm with transparent pricing that specializes in helping provide clarity around money - so you have the confidence to make smart decisions.My goal is to help a million people retire without worry!
📅 THE BASICS OF RETIREMENT PLANNING
Retirement planning has several steps, with the end goal of having enough money to quit working and do whatever you want. Our goal is to help people master retirement and retire without worry.
Step 1: Know when to start retirement planning. When should you start retirement planning? The earlier you start planning, the more time your money has to grow. That said, it’s never too late to start retirement planning. Even if you haven’t so much as considered retirement, don’t feel like your ship has sailed. Every dollar you can save now will be much appreciated later. Strategically investing could mean you won't be playing catch-up for long.
Step 2: Figure out how much money you need to retire, The amount of money you need to retire is a function of your current income and expenses, and how you think those expenses will change in retirement.
Step 3: Prioritize your financial goals. Retirement is probably not your only savings goal. Lots of people have financial goals they feel are more pressing, such as paying down credit card or student loan debt or building up an emergency fund.Generally, you should aim to save for retirement at the same time you're building your emergency fund - especially if you have an employer retirement plan that matches any portion of your contributions.
Step 4: Choose the best retirement plan for youA cornerstone of retirement planning is determining not only how much to save, but also asset allocation. It can make a massive difference in your retirement plan.
Step 5: Select your retirement investments. Retirement accounts provide access to a range of investments, including stocks, bonds and mutual funds. Determining the right mix of investments depends on how long you have until you need the money and how comfortable you are with risk. It’s often helpful to talk with an adviser to discover the right mix of stocks and bonds.
❣ SPONSORED No, this video was not sponsored.
⚠️ "DISCLAIMER:⚠️This is not financial or investment advice. This Channel is meant for EDUCATIONAL AND ENTERTAINMENT PURPOSE only. None of this is meant to be construed as investment advice, it's for entertainment purposes only. #retirementplanning #retirement #passiveincome
Have you considered a QLAC?
Great content. I was not aware of QLAC and how it could help to lower RMD and provide fix income later on. Have to look into getting the annuity.
I’m not typically annuity fan, but it is an interesting concept.
To answer your question: this was just about the right amount of info. Not too long and not too short. If anything, there were a few terms in there I didn't know so I thought could have been explained better and at greater length, but that's only because I'm a bit of a newbie to the financial investing world.
I just need to keep plugging along, putting in the time to watch another dozen or two of your videos, and I'll know more of the lingo. Once I get to that point, I'd think explanations would have been superfluous here. So you're good!
Hey Linda! Thanks for the feedback. Very helpful. My wife always says I assume everyone knows what I do and leave out definitions. I’ll try to watch that.
That was very interesting. Like you, I’m very hesitant about insurance products, but it would be some thing that I would look into.
Thanks!
Yeah, I’m always suspect - but they can serve an important function, especially with the current rates.
@@foundryfinancial Just an idea for a future video I’m looking to get a handle on where I stand for retirement. I have accounts with Vanguard Fidelity in Voya and I find the retirement planning severely lacking. Would you recommend a program like new retirement or empower/Personal capital as a starting point?
Great idea, thanks!
Glad I have 350k all roth so not worried about taxes
Where is the link to access the free calculation tool online?
can you make a video about Roth Conversions ? And maybe one for freelancers a decade away from retirement?
Both great ideas. I’ll add them to the list for early this year.
You are the best. Glad you're in LA! Close by@@foundryfinancial
Maybe a list of some quality insurance companies that sell QLAC's ???
Good idea. There’s not many yet, but the list is growing.
I haven’t looked recently, but we bought all of ours from well known A+ companies.
Im not convinced this would be the best deal. Theres better stuff out there tax free and dont have to wait until 85. Roth conversion and tax free annuities cost analysis is better... especially for heirs.
Depends on your goals and your tax situation. Definitely not right for everyone, but there’s a subset where it makes sense. ROTH conversions don’t make sense for everyone either. Retirement income planning is very specific and honestly I’d have agreed with you for quite some time, but I’ve come to see the usefulness in some situations.
I just don’t like all the hidden fee’s!! It would be better just to take the money out, bite the bullet and pay the taxes… and then invest in the stock market. I’m currently stuck in a cash balance plan. And even though the stock market was booming last year somehow I ended up owing them money. Sorry, I don’t believe in all this BS anymore. The investment community tries to complicate things, but I think most people can figure out their own finances… if they try.
You might be a con. Maybe a good guy?
😂im not sure how to respond to that. :)