Where Should You Pull Funds from First in Retirement?

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00:00 Retirement Has Changed
02:07 Step 1: List & Project Future Income
03:29 Step 2: Desired Expenditure
04:20 Step 3: Liquid Assets
04:50 Step 4: Assess Sustainability
05:33 Step 5: Cash Flow Management
06:30 Step 6: Tax Efficient Drawdown
11:40 Decision Framework
12:42 Rachel Reeves October 30th?!
14:34 Step 7: How to Invest

[JamesShack]

On 30th October, Rachel Reeves is expected to introduce significant tax changes that will affect investors.

[Tonyrobs]

I think the retirement crisis will get even worse. A lot of people couldn't save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, they won’t have a house to retire with either.

[stewartmclean]

The fact that you produce these videos for free so everyone can learn and plan their future is brilliant! Thank you for all your content James! I’d say that I’m obsessed in this field yet it’s not yet my career path and I’m 33! I think I need to change that! Thank you for the inspo sir

[ChristopherJeffreynx]

"Building wealth is like climbing a mountain; investing is the steady ascent, retirement is the summit."

[daveannis]

About 2 whole days of Excel modelling led me to the conclusion I could have reached by watching your 17 minute video! Namely that, if you expect your expenditure to exceed the higher tax bracket in the future, your best strategy is to maximise the lower band as much as possible in the early years, even if that means taking it out of your pension and re-investing it into an ISA. Still - nice to have it confirmed by someone more expert than me - thank you!

[ThrowBackZone]

I wish I had this advice when I started my retirement planning. It's crazy how much things have changed in just 10 years! 🤯

[timpearson]

Very good James, thank you! I have planned to take early retirement (age 60) from 31st December this year. The only way I can do this is by several income streams topping up my DB pension. This has confirmed my theory into managing those buckets, so brilliant and reassuring! Dreading 30th October....

[paulwright]

Would be good to have a video on how to choose a good financial advisor and what you should consider in doing so?

[PhilBradleyH]

Any money coming from first retirement, IRA's and 401[k]s should be manage by ' sophie kathryn jones 'she's the one up for the job.

[DavidForeman-mp]

This is awesome information. I am 53 and have been investing in small pensions, ISAs and have buy-to-lets. More effort has been on just growing these rather that planning what to do. My attention has turned to this planning and your video is a great start to 'what to do next' as I look at 'when can I retire?', 'how to manage those funds?', 'what lifestyle can I afford?' and 'when to offload the buy-to-let properties?' .... thanks. Planning (for me at least) has started.

[guyr]

Hi James good video as ever.
I retired last November at 63 just short of 64. I have a DB scheme due Feb 25 with a tax free portion.
Two DC scheme pots, one crystallised ( smaller pot) the other partiallly crystallised. A small rental
Property bringing in £5600 a year.
My mortgage has at present until 2034 to run but we’re overpaying currently via wife’s wages.
I am basically using the rental income and funds from the crystallised pot as my salary. Utilising my tax free allowance to access the DC pot. In Feb 25 when works DB scheme pays out ( hopefully with the 25% tax free) I can drop what I’m taking out of the crystallised DB pot. Then Feb 26 I will receive a full state pension, once getting that I should be able to have a combined income above what my net last salary was so fingers crossed all is good. When the crystallised pot is used up I’ll then be able to do flex draw down on second DC pot. When I take my DB scheme and the 25% tax free ill invest some into an ISA as well as add £2880 to the second DC pot my tax free sum should allow me to have that modest amount saved as easy access

[chrisatkinson]

The problem is we have governments and civil servants that have gold plated defined benefit pensions, and none of the pension changes they introduce in the budget will affect them. They continue to live in a world the working man/woman lost many years ago, and labor are no better that the previous government.

[nigelallen]

Another great video. I have friends who ask me about pensions, and I always give them your name to watch some videos to help educate and make informed decisions. Big decisions like this needs better than ‘bloke down the pub’ advice. Keep up the good work, and let’s see what tax hurdles we have to negotiate next month.

[DougVandegrift]

Man the example dude has rental income? He's already way better off than most his age.

[stevemorrison]

Great Video. Presenting a complex strategy with clarity and well illustrated choices. I love what James does on YouTube and will really look forward to his dissection of what Rachel Reeves does in the budget. One thing is for sure, change is coming !

[LopezDrake]

I just love watching and then rewatching your videos. I pick up so much helpful information.

[NeilScott-jg]

Thank you James. Great video. I look forward to seeing your post budget follow up.

[JamesShack]

Let me know if you have any questions about the video!

[tooexplore]

Great videos. All very interesting. I have no understanding of how pensions etc. work, but your videos are very easy to follow and understand.

[mkckfrancis]

Your explanation and clarity is superb. Thank you