Top 8 Tax Tips For Retirees in the 60s! 💰

On average, taxes will be one of your largest, if not your largest expense in retirement. Now some retirees will just simply accept the taxes they have to pay.

But this is an expense category that is controllable with careful tax planning in retirement. Specifically, tax planning in your 60s.

The first decade of your retirement will lay the foundation for the remainder of your retirement.

In this video today, I am going to show you the Top 8 Tax Tips You Should Be Using to Build a Tax Efficient Income Stream in Retirement.

Here are the timestamps:
0:00 Introduction
0:43 Delay Social Security For Permanent Tax Savings
3:38 Use Strategic Asset Location to Increase After-Tax Wealth
6:07 Take Advtange of This Closing Tax Opportunity Window
7:04 Earn a Premium Tax Credit for Massive Healthcare Savings
9:48 Avoid the Widow Penalty
11:40 Control Your Tax Residency
13:51 Maximize this Underutilized Asset
16:53 Minimize RMDs To Avoid a Cascading Tax Problem

#TaxTips #RetirementIncomePlanning #TaxSavings

- - - - - - - - - - - - - - - - - - - - -

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

[shaynelaw]

Great video! Liked and subscribed. Turning 54 soon and been diving deep into retirement planning. Your channel.among my favorites and this video was LOADED with strategic advice on tax planning, including a number of concepts I had not heard before. THANK YOU!

[krishnadevulapalli]

Eric, I value your financial information which is excellent. I am not sure if time is a constraint for your videos as it is run very fast with very little pause in order for me to comprehend and reflect.

[rayzerot]

Living in 2 states sounds like a good idea on paper but I feel like having 2 homes, 2 sets of home owners insurance, 2 sets of furniture, travel expenses, 2 sets of property tax etc. would chew through all of the tax savings from being in a state without state income tax. It would be worth looking at the numbers but there are a lot of hidden expenses there

[PH-mdxp]

Solid video, packed with lots of great advice. Does Safeguard offer fee based tax advice exclusively or is there a requirement to have assets under management with Safeguard?

[alphamale]

Excellent! I like summation videos like this. I had heard some of these items before, but if I hear them enough maybe I will actually act on them!

[terryadams]

You are on a roll - Another video that is timely for me! Thanks Eric!

[theresapoon]

I turned 66 in January 2022. I reached my full retirement age in May, 2022. I retired in July 2022 and started taking social security in September 2022. After watching your video, I decided to delay to 70. So I submitted a request form to social security to make that change. I was told if my request gets approved, I will need to pay back all the money I received since September 2022. I want to follow your other advice, which is to do a Roth conversion. So I will need to figure out how much to convert. My question is: will I be able to subtract the money I received from social security in 2023 when I calculate my income since I paid it back? Thank you very much for your videos. I wish I had discovered them earlier, before making all kinds of mistakes!

[klok]

I really enjoy appreciate the videos, but I think tip #2 is just wrong. In your own video "Does a MEGA Roth Conversion Make Sense?" at 3:40 you say that whether or not you should do a conversion from a traditional IRA to a Roth IRA depends on the Roth conversion tax rate vs. IRA withdrawal tax rate and you say "the growth trajectory doesn't matter". The same applies in this case.

Lets do a simple example where we have a Roth IRA worth $100k, a traditional IRA worth $200k, and to keep the math simple we will say the traditional IRA will be taxed at a %50 rate when we withdraw money. The first thing to note is that these two accounts have the same spending power because they are initially both worth $100k of after-tax money and we should think of our investments in terms of their estimated after-tax value. Lets say that we can choose to invest in bonds for 10 years and get a 10% return, or stocks for 10 years and get a 50% return. If we put all the stocks in the Roth IRA as you suggest the Roth IRA will be worth $150k, the traditional IRA with bonds would be worth $220k before taxes and $110k after taxes, which will give us a total of $260k after taxes. If we do the opposite strategy and put all the bonds in the Roth IRA the Roth IRA will be worth $110k, the traditional IRA will be worth $300k before taxes and $150k after taxes, and we end up with exact same amount of $260k after taxes. So assuming we allocate bonds vs. stocks based on the accounts after-tax value the asset location of a Roth IRA vs. a traditional IRA does not matter.

To make sure anyone reading this isn't mislead, asset location does matter when choosing between a retirement account and a taxable account (don't put bonds or high yield dividend stocks in your taxable account). Also required minimum distributions would make us prefer to have assets in a Roth IRA (as Eric has explained well in other videos), but that issue is separate from the above. Thanks again for the great videos!

[samrobison]

I can't come back to your tax amounts of $5, 090 and $1, 827 in your delay social security tip. Will you please share with me your computation of those amounts? Thanks.

[paulstein]

The two ideas of doing Roth conversions and keeping income low pre 65 years old in order to qualify for ACA premium tax credits are at odds with each other.

I have an inherited IRA (pre 2020j that I had RMD’s while at the same time was on ACA and trying to keep income low enough to qualify for a PTC. It was tough to be able to pull out extra funds and still qualify for PTC. Now I am on Medicare and having to deal with pulling out extra distributions from inherited IRA to reduce future RMD’s once on Social Security, which I am deferring until 70. Plus dealing with IRMAA surcharges. Head exploding.

[jefflloyd]

This is great, and very valuable indeed.
Cheers,
Jef

[adisuwanichkul]

Thank you for this excellent information. Do you have any other clips that explain the slide at 15:22 in more details? Thanks again

[HB-yqgy]

This guy is spot on clear concise simple information.

[mgallagher]

Great summary. As unusual I love the high information density and fast pace. However, I find the video inserts distracting and off point. They pull my weak mind off your points.

[g.ajemian]

I love your videos I’m close to retirement, but I’m a little confused by the suggestion to use the lower tax rate in the next couple of years to do Roth conversions and also showing all up lower income to take advantage of the healthcare premiums which would you consider to be more of a priority or is there another way to solve that and take advantage of both thank you

[joan]

I think all your videos are very informative, but some of the more recent are edited at too fast of a pace for me to take in all the details. Wealth Wednesdays are always a great pace.

[Zues]

Does it make sense really to accelerate tax payments with today dollars than paying those taxes with devalued inflation adjusted future dollars? To do an Apple to Apple comparison, You need to compare each scenario either in then year dollars or current your dollars. It makes a difference

[g.ajemian]

Great video, I am a subscriber and find your videos invaluable, if you can clarify something for me, I will be retiring at 62 my wife is 59 and would I think ach subsidies are the best way to pay for healthcare (I do have multiple retirement buckets to pull from) . Will that strategy work against a Roth conversion plan in those years leading up to Medicare availability? Thanks

[Zuckerpuppekopf]

The problem with Roth conversion strategies in the 60's "clean up" period, is that many 60+ yo may be at peak earning capacity. Any Roth conversion is going to be tax death unless someone simply stops working. There are many types of careers that can easily be held into one's eighties, if one wanted. And with many such careers, yearly income may be increasing, not decreasing into one's 70's and 80's.

[PH-dmew]

Does that ss tax savings work if you dont have cash or taxable accounts. If only deferred does delaying ss still save you as much as you indicate?