The SIMPLE Withdrawal Strategy You Should Use First in Retirement...

Timestamps:
0:00 Which Account to Pull From First?
0:33 Your 3 Tax Buckets in Retirement
1:58 The Cost of Forced Income
3:37 The Traditional Withdrawal Method
4:22 Reversing the Traditional Withdrawal Method
4:56 Additional Options You Have in Withdrawing
5:27 A General Withdrawal Framework
7:42 Your Taxable Account Facilitates Tax Savings
9:37 Roth Conversion Optimization Before 63
10:43 Roth Conversion Optimization After 63

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Always remember, "You Don't Need More Money; You Need a Better Plan"

[tonioyendis]

Taxing retired senior-citizens on their own SS is just pure evil.

[Blublod]

The American tax system is so convoluted that it generates this kind of complex strategizing to navigate it successfully. This is some dense material you presented but you did a fine job of explaining it, even if I'm going to have to review it several times to fully understand it. Great job.

[hammer]

The only financial Youtuber I don't watch on x1.25 speed. Thanks for the good info.

[southernbelle]

I loved your video, but I recommend that if you could slow down just a little bit, it would help me, at least, catch on. You know what you are talking about, but for me, it takes a few seconds for each point to sink in. I’m going to watch the video again, so I may better understand. Thank you so much for your time and hard work🙏

Eric is sharp as a tack! I'm glad i've discovered his presentations especially since I'm just a few years from retirement.

[alphamale]

Not sure I would call this a "SIMPLE" strategy. 😆 I need to watch a second time!

[slimdawgwoof]

Your content is the best stuff out there!

[msnoonan]

While Roth conversions may look attractive when crunching the tax numbers, in my opinion, it's best to recognize that you have no idea what your situation will be in retirement. Specifically, by doing a Roth conversion, you are betting against the odds that you won't have substantial medical expenses later in life. The example I use is my Mom who has dementia and is in a memory care facility, all expenses of which are not covered by insurance or Medicare but are tax-deductible medical expenses on Schedule A. Look it up if you're not convinced. To pay the expenses, she cashed out all her IRA's, but paid ZERO in tax as the withdrawals were offset by medical deductions. Had she taken the advice of the many financial "experts" out there and done a Roth conversion, she would have been left with substantially less. Think about it before doing a Roth conversion.

[randyratkowski]

Really enjoy all of these videos - well done and well articulated!!! Would really be great if Safeguard had a one time fee based plan one could I recognize plans change but a baseline plan for us DIY'ers would really add confidence to my plan and execution!!!

[helenrhettgordon]

I’m 48, sad to say I made terrible money decisions growing up which I'm presently paying for, been dedicating every waking hours towards my retirement and I'd really love to retire to Portugal with atleast $3million by, the market up and down is not helping at all.

[tncoltsfan]

Great video, you have the best retirement planning videos on YouTube!!!

[Lolatyou]

I've knew most of this information, except in regards to IMRAA. Thanks for mentioning that.

[InvestingBookSummaries]

And this is why I swapped to 75% roth-in-plan conversion in my 401k and only 25% of contributions being pre-tax.

Helps keep it simple for down the line.

[andersonlegacy]

Appreciate your content as it is more informative than most information out there

[dogegamer]

Also if you have no ordinary income you wouldn't be taxed at 15% tax on capital gains or on dividends. Assuming no ordinary income beyond the standard deduction you can take $89, 000 tax free 0% tax. Then $27, 500 for standard deduction. So if you pull from taxable you'll be 0% tax on $117, 000 a year or roughly $9, 700 a month tax free. You just have to take the money out every one year and one day and then pay yourself monthly from a savings account. So like you stated it makes way more sense to live off taxable (especially at 0% tax rate) and keep that roth growing as long as possible.

[dchin]

The tax saving chart did not take into account the cost of the $22K needed for the $100K IRA to Roth conversion. The stradegy is still valid in avoiding Medicare and SS surcharges and reducing SS benefits.

[davidcloyd]

My eyes glazed over, I slapped myself, two minutes later my eyes glazed over again

[jefflloyd]

Thanks Eric, always good. Now add HSA and put off SS for longevity insurance and spous, and allow bigger roll over window, and hedge down turns with more roll over, and reduce income for IRMA, cool, is coming together maybe.... 😅

[jefflloyd]

Always good Eric, note in a down market we should do more, HSA is also a powerful tool and SS should be left until last, after spending or converting tax differed accounts, for longevity. insurance.
If the market dies great and we are left with a bunch of taxes, it is ultimately a nice problem to have.
Cheers,
Jef

[austenbaier]

I think you touched on this briefly in one of your videos, but what would be very helpful would be how to determine, when withdrawing from taxable nonretirement accounts, how much of the withdrawal would be reported income (would show up on your federal tax return). In other words, how to determine the gains, as only the gains would be taxable and therefore would be reported income. This is not so much for determining income tax on the gains but rather for health insurance purposes. This can get very complicated, so I think you could probably make a whole video about it. FYI, the two brokerages I use wouldn't help with this and referred me to a CPA, however, the CPA I talked to (just one so far) didn't seem to have the knowledge to be able to help with this either.