Tax Efficient Withdrawal Strategies to Reduce Taxes in Retirement

You need income in retirement. Where will it come from?

Which of your retirement accounts will you withdraw from in a given year to save on taxes, not only this year but for years to come?

This is one of the most important questions in retirement.

Decisions you make in Year 1 of retirement will affect what happens in Year 15 of retirement.

As you start to think about all of the variables you need to consider in this withdrawal process, it can be overwhelming.

There is a lot of advice pertaining to this topic that a retiree can follow. Unfortunately, a lot of the advice I see is destructive at best. We'll show why in this Wealth Wednesday...

In this presentation, we lay a framework for building a tax-efficient income stream in retirement. We will discuss:

✅ Retirement Tax Strategies you can begin using in your retirement immediately

✅ Why the optimal withdrawal strategy to reduce taxes will vary for everyone. There is no one-size-fits-all

✅ Why tax planning and using the right retirement withdrawal strategies in your retirement plan can be one of the most critical steps you can take to increase your after-tax wealth

✅ How to reduce taxes in retirement in surprising ways with focused retirement income planning

#taxefficientwithdrawalstrategies #retirementincomeplanning #taxplanning

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

[CurlyTonya]

Excellent presentation! It’s so unfair that taxes get more complicated in retirement! My head is spinning….and I have a B.S. in Accounting.

[c]

Some would call me poor. My income is $31K/yr. I spend about $10K/yr. So my wealth increases by about $20K+/yr. I live simply with no debt. I'm a 74 year old veteran. My only pre-tax account has about $100K balance with RMD about $4K/yr. That $4K goes into another account, I don't spent it. I pay no income tax at all and my property tax is $0/yr also. I could spend 3 times as much and still be stable financially in the current economic climate. I'm OK. My total wealth is slightly greater than $500K. If everything crashes, I would still be OK because I have actually been really poor in the past and I know how to do that too.

[swright]

It’s raining knowledge….and it’s free. All you have to do is put a bucket outside and let Eric and Tony fill it.

[donmountford]

We are retiring at 54 (year we turn 55) plan is to utilize 401k and brokerage until 59.5, balancing each to keep taxes in 12% bracket and qualifying for ACA. From 59.5 until will gradually move income from IRA and 401k avoiding using Roth and Brokerage unless needed to keep tax bracket in 12%. From 70 on, will use both SS and spouse SS and Roth/brokerage to keep taxes close to 0.

[wcorey]

Thanks Eric, this is the best planning that I have seen.The examples of the ACA planning and the catchup zone helped me. I would love to see more examples.

[stephenwright]

This was very well done and aligns with my research into this topic. Some of my friends thought it was nuts for me to say I was delaying social security until 70. When I explained to them it was about tax planning, medical coverage pre age 65, and an overall decumulation strategy they started to get it.

[ericchang]

This was awesome! Everyone who wants to DIY their early retirement needs to watch, study and understand every aspect of this. Sadly, most people are looking for the "one size fits all" answer and won't take the time to comprehend all the moving parts involved.

[wkrick]

The section at 37:22 on ACA planning for age 62-65 is very interesting. I was wondering if you have any videos that cover ACA planning and tax strategies for early retirement from, say, age 50 to 62 ?

[alr]

My father was responsible for running a profitable sawmill for many years. It was his job to get the most lumber yield from every saw log. That wall paper behind you… You don’t need more timber. You need a better plan

[vince]

This is basically the vidio I have looked for vor years. I have always thought about taxes in this way. Not a tax planner ut accumulated enough knowledge over the years to basically force myself to maximize every year possible into roths from close to when they started. I will be sharing this link with a bunch of people that I hope will watch because you explain it better than I ever could.

[priola]

This was a terrific presentation. I now understand the WHY behind my financial planner’s recommendations. He says that things will be preferable tax moves, but now I really get it. Thank you so much. I have a lot more confidence in the plan he provided.

[ttiger]

WOW! This is very eye opening. I wish I had seen this ten years ago (71 years old).

[davidhuang]

Thanks Eric. This is one of the best videos out there that I have watched. It has cleared out a few clouds over me. Really appreciate it.

[dougjuliehowell]

Fantastic! Extremely useful, intelligent and well thought-out. You’re the best source I’ve found on YouTube.

[johnkumpelis]

Wow Eric, drop the mic! Well thought out video on this topic!

[hankchang]

The best illustration I ever saw. Thank you🎉

[jefferydevens]

Eric, excellent work. Thank you for sharing this like a teacher. The more you do this the better you get at it, and subsequently so too do those fortunate enough to watch and learn. Well done and well worth the time for your team to invest in. There is a tipping point that is reached (no one quite knows when) where all of these videos and presentations will begin to compound in returns. Keep up the work and stay the course.

[Mike_L]

Eric I really enjoy your style of confering this information. Delaying SS to 70 isn't in the cards when your at 62 but still have 2 minor children at home thru to your 70th birthday. The children are eligible for SS checks if you claim at 62. I would love to see a video on this scenario because most older parents don't know about it.

[fesenal]

You r amazingly excellent on your financial planning. I should have known you before I turned 65, now I’m delaying my SS to offset my Medicare IRMMA payment and planning to convert to Roth this year 2023 though very limited. Thanks a lot.

[FakePersonna]

This is the BEST withdrawal strategy video! Thank you. I think you saved me a lot of taxes from RMD.