3 Ways To Create Tax-Free Income in Retirement

In this episode of Ready for Retirement, Ari Taublieb, MBA guest hosts the Ready for Retirement podcast to discuss the 5 mistakes to make sure you avoid when retiring early. Ari Taublieb, MBA is the Vice President of Root Financial Partners and a Financial Advisor. This episode is part two of a three-part series.

Episode Summary:
- How can you create tax-free income most effectively in retirement
- Common tax mistakes people leave on the table which could save tens of thousands of dollars (or hundreds of thousands)
- How to improve your overall early retirement strategy

Timestamps:
00:00 - Introduction
1:20 - Life over Money
3:03 - Legacy Goals
5:31 - Examples Examples Examples!
8:35 - Never Pay Taxes Again
10:52 - Standard Deduction v. Itemized Deduction
14:28 - Brokerage Account
19:17 - AAPL Stock Example
22:15- MASTER Tax Tip!
25:01 - Working With Us

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[ritafong]

I binged watching all your videos. You're a great presenter. Thanks for the great content:)

[jpturner]

Great job thank you very much, we always look forward to listening.

Getting ready to retire next year at 68 years old.

37 years serving our country in the Marine Corps, the past 15 working in the private sector.

I’ve been blessed to be able to work from home, and my wife and I have been taking pre-retirement trips for the past three years .

Thanks to your podcasts (and a lot of research as well as luck) we are financially independent and ready to go. !

[Ann-tfcu]

Great content. Curious abt what to invest in the taxable account? Not specific names but r u referring to individual stocks, MF, cash, etc?

[davipereira]

Today's inflation is a result of corporate avarice, not only problems with the supply chain. We know that the money obtained by the higher prices isn't being transmitted along the supply chain since businesses are reporting record profits. More pricing result in increased revenue for businesses, which stays with them and goes into their pockets. We can rule out supply-related inflation because of this. If your stocks are extremely weak, now is an excellent opportunity to take a battered 401k and convert it to a Roth. Then, your Roth will be tax-free, and you will just have to pay taxes on the substantially reduced current values.

[taloweryus]

Another issue you need to take into account is the Medicare IRMA. Roth conversions and tax gain harvesting, if not done carefully, can cause significant increases in Medicare payments 2 years down the road. Maybe not so much of an issue for early retirees who are not yet on Medicare.

[johngill]

Great video but the first way should be a 401k and up to the standard deduction. It's better than ROTH
You get a tax deduction up front and no taxes on the way out

[OHDANB]

Thanks for the video/podcast. It gets tricky for early retirees who are on an ACA health insurance plan since we have to be careful about falling off the "subsidy cliff". For the 2023 plan year, my subsidy is worth about $6, 000. It's hard to know when it's worth paying "full price" for a health insurance plan while realizing some gains at a long-term rate of 0 or 15%. Would like to do some ROTH conversions to reduce future RMD requirements, just not sure how to make it worthwhile. Thinking of waiting until I'm Medicare eligible, then doing some larger conversions for several consecutive years until RMD's kick in.

[mlee]

I’ll be 59.5 next year, I have 3.4 million pre tax between wife and I. I need to do large Roth conversions to move the needle. Still not sure what amounts to do up front. Over 4 -5 years large amounts. Retiring this year, since my tax bracket will be so high, not worth working and just get pension.

[mariviberrios]

Thank you! Very important information. 😁🇵🇷