Hi. I'm James 👋 … Certified Financial Planner® and founder of Root Financial. Each week I release videos to teach you about investing, spending and saving, tax strategies, and more to help you get the most out of life with your money.
But getting the most out of life is about more than your finances. I also cover topics that help you think more deeply about your life's purpose and how your money fits into it.
My advisory firm, Root Financial, works with people like yourself with retirement, investing, and financial planning. If you'd like to learn more and schedule a time to meet with an advisor, visit us at rootfinancialpartners.com.
--- Root Financial Partners, LLC is a RIA (Registered Investment Advisor). All content is not to be received as advice and each individual should consult with their dedicated financial planner, tax preparer, estate attorney, etc. before making any financial decisions.
This was an excellent discussion, one that from my personal experience, I can say was spot on! I have been retired for 13 years and totally skipped phase 2, spent little time in 3 and moved right into phase 4 within 10 months or so. I had thought out and planned the personal side of retirement long before I took the step. It was just stepping from one role into another and I had a good plan on what that was going to look like. Dr. Moyne's comments from about 19:00 on were exactly right and descriptive of my journey thus far. It does take effort and for me it was the pre-thinking and planning of my personal future - that made the transition fairly smooth and easy. The 4 phases are a reality and if people simply become aware, put in the time and effort, their retirement will be just as successful, enjoyable and fulfilling. It is simply a new path on life's journey and you can absolutely make the most of it.
I’m a recently retired pharmacist. We were so fortunate to have an amazing delivery driver, who had retired from his career and found himself bored. He went above and beyond for our customers and always had the most positive attitude. He inspired me!
I feel really lucky. I’m close to 10 years since I retired. I guess in many ways I’m still in phase 1, but with a mixture of phase 4. I’ve RVed up to north Canada & Alaska several times, and each time I go up I explore new places including camping on the Arctic Ocean. I was trained as a musician - mainly as an organist, but became a software engineer during my working years. For a while I was also doing part-time musical work as church musician, but stopped doing that in my early 50s. When I did retire, I got my first RV and headed to Alaska for the first time. Prior to retirement, I purchased a condo in the Colorado mountains and began working there during the summer months. About 5 years ago, I started acting as a moderator for a facebook group of RVers heading up north, and I really like doing that as it involves advising others on making the trip and writing essays on things to do/see/and planning their trips. Also I started playing the piano again - getting a grand for the house and a digital keyboard for the Colorado condo. I think nothing of practicing much like I did when I was in college, and am playing compositions that I couldn’t even attempt when I was in college. I initially started playing again - and playing by memory - because I wanted to keep exercising my mind to avoid mental decline, but now am exploring new techniques and styles that I shunned in my earlier years, such as Jazz improvisation. Depression? Hardly. Board? Nope.
My dad died at age 69. Waiting to return until age 70 would have been a huge mistake. Fortunately for him, he retired early at age 52 and took a buyout from New York City and enjoyed 17 years of retirement.
Remember it was Joe Biden was the one who introduced the bill to tax Social Security! Totally untaxed until 1984. Biden ruined it once again for all of us!!!
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Where's the link to the e-book mentioned at the end of the video?
My budgeting “trick” is just when I get my paycheck and maxing out all of my retiring accounts i then dump a set amount into my taxable brokerage account. Then we spend whatever is leftover- don’t sweat the small stuff.
Fantastic video as usual May I make a suggestion on the rate of withdrawal graph to show an additional line of what is required versus letting it being dominated by RMD's in the later years
For the scenario explained at 11:00 (i.e., the spouse first takes his/her own $600/mo benefits and then adds on the spousal benefit of $400/mo when the worker turns 70), how does one go about getting the spousal benefit? Does the spouse need to go back into Social Security website and identify that they want to start collecting the spousal benefit when the worker turned 70? Or is this decision made back when the spouse first filed for his/her own SS ?
Thank you, James! I wanted to ask a related question. My wife does not work and has a traditional (non-Roth) 'spousal' IRA (cash balance with no earnings) funded with my after-tax dollars. I have my IRA funded with pre-tax dollars. We file jointly. Our income makes us ineligible for Roth IRA contributions. Suppose my wife decides to use a backdoor conversion of her Traditional IRA (funded with after-tax dollars) to a Roth IRA. Will my IRA (funded with pre-tax dollars) be counted in pro-rata rule calculations for this conversion triggering the income tax liability?
I'm having trouble watching this as I'm shaking my head at the obvious security that they have. Retiring at 67? That's fine if you want to, but they definitely don't need to. They need to pay off the mortgage payment NOW...dumb to go into retirement with home debt in this scenario.
Best wishes as you grow the business…the right way. I too didn’t quite meet your current minimum but look forward to you potentially reaching back out to me in the near future. I sure do resonate with and appreciate the approach evidenced in your videos.
Unless I'm not understanding something... one scenario that seems to be missed here (for someone who tithes every year for example), is to open one of these funds in the year one sells a house (i.e. downsized) in which there was a large capital gain that exceeds the exclusion. Couldn't one then offset a lot of that by putting 50% of the cash windfall into a donor-advised fund? Thanks!
If you retire at 62, you won't have any medical coverage until you qualify for medicare at 65. Getting ill or hospitalized within those 3 years could ruin your financial stability. Am I right or wrong?
The biggest difference between the cash in my bank account and the "cash" (bonds/mmkt/conservative) in my IRA portfolio, is that the bank account cash is tax-free. So once I come up against the 12%->22% tax bracket confiscating punishment for being a productive member of society, that's when I can pull the bank account cash if need be, similar to how many use the Roth
Great video. Over the past 10 years my wife and I have created an awesome program on Excel using our past experiences budgets and “ what if” scenarios.
Most people who supported their parents or in-laws due to their poor planning swear they will never do that to their children. This is why they’re overly cautious. If you’d been there you’d understand.
A detail that doesn't often get mentioned in the context of RMD's is, just cause you have to take it out doesn't mean you have to spend it. So especially if the distributions exceed the need, ensure the excess goes into a brokerage or any savings vehicle and that money will remain available for the future and can resume growing.
It's as if you're in my brain. I've watched quite a few of your videos now, and you just get it, both lifestyle-wise, and math-wise. There's so much nonsense out there that may or may not apply to every situation.
All the money in the world never buys a guarantee… God I can’t believe some people have this kind of privilege and choices. A bunch of brats. Live simply. This is none sense clicky baity. Won’t need your assistance buddy. The amount of glutton and consumer none sense is just hard to comprehend. These people are fragile as they come. So needy. Weird stuff
You should consider editing the part that discusses RMDs for inherited IRAs. The rules have been clarified since you recorded this and some people do need to take RMDs before the end of the 10 year period and can't wait until the end.
Actually, at 1:20, if you are earning more than $200K (single or $250K married filing jointly) it's no longer 1.45%, it goes up to 2.35% for income over those thresholds. This was added in 2013 as part of ObamaCare.
If they could work part-time for a couple of years, that would mitigate a lot of their risk without costing them two whole years of prime-time healthy life.
It seems to me that based on what they want to do when, and the compounding issue, simply taking SS at 62 fixes a lot and levels off the withdrawal rates.
