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Index or fixed annuities are not designed for short-term investments and may be subject to caps, restrictions, fees, and surrender charges as described in the annuity contract. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products. They do not refer, in any way to securities or investment advisory products. Fixed Insurance and Annuity product guarantees are subject to the claims‐paying ability of the issuing company and are not offered by Brookstone Capital Management.
Information provided is not intended as tax or legal advice, and should not be relied on as such. You are encouraged to seek tax or legal advice from an independent professional.
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Tom & Hans, another great video. I’ve used multiple SSA calculators to maximize our benefits and the answer for both my wife and I was to wait to 70. What the online calculators I’ve found have failed to take a more holistic view with consideration of the “second to die” feature of SSA for couples. I now know to start my wife’s benefit retro a few months to her full retirement date and hold off on my benefit to 70 as planned. Thanks for the great advice.
Nice Video. I kind of wonder how a more holistic view of these folks retirement changes if: We make the savings at $750K and this is in a regular IRA. They want to optimize their spending rate to a reasonable probability of success. Roth conversions may make the plan more efficient along with any other tax management strategy. I recently reviewed my open social security report and I wondered how that might change if it considered Roth conversions and such tax implications. Thanks,
Great video thank you. Can you make a video talking more about 403b retirement account. I have just received one from my work and I would like to better navigate the fundamentals for such a plan. Thank you again for the video good and correct content.
If Social Security was delayed until 70, which parts of Medicare can be applied for at age 65? If only Part A, how would insurance play into it while 'waiting it out' and living on retirement savings? Thank you for the great information!
@@g.ajemian4968 The doubler pays while there is money left in the annuity. When the balance is zero, the annuity payments go back to the original amount and continue until both insureds are deceased.
Conversion to ROTH at certain age may not be beneficial/attractive for persons at certain age (late 70’s or in 80’s) due to 5-year rule for penalty free withdrawal. Separate 5-year rule apply for conversion done in each calendar year. Wish @CardinalAdvisor will address this in future videos
Crist, I tried, but your presentation is less entertaining, than watching goldfish. Slower than molasses and as boring as hell. Fer chrissake, get to the point, then justify it, not drone on.
I know Hans and he's not someone who is scared of negative feedback. But in this case, a private message with less emotion would be more appropriate than trying to humiliate him publicly.
Increasing tax rates are the reason I rolled over my 401k to a Roth. I don’t want to be 59 paying taxes on current income on withdrawals made from my retirement account. I'm now seeking best possible areas or ways to gain wealth in today's economy.
Pre-tax contributions may help reduce income taxes in your pre-retirement years while after-tax contributions may help reduce your income tax burden during retirement.
Both have their perks but you can also save for retirement outside of a retirement plan, such as in an individual investment account or employing the services of a retirement planner/investment advisor.
Private investing is the best way to go about the market right now, especially for near retirees, I've been in touch with a wealth manager, netted 370K the last downturn, made it clear there's more to the markets than we average joes know.
Katherine Nance Dietz is the licensed advisor I use. Just google the name and you’d find necessary deets. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
@@bryanharrell4059 I transferred my Roth IRA into several deferred income annuities. We can start the income in the future when we need it. Once started, the monthly income will continue until both my wife and I pass away. It is guaranteed for life. Because it is a ROTH, it is tax free.
only 1/4 of my retirement money is in pre-tax 401k the rest is in ROTH and Brokerage Accounts. Wondering If I should convert that pre tax to roth or just let it roll since it's only 1/4 of my retirement.
@@kona6451 it depends on the size of the 1/4? Also depends on your other taxable income year by year? There is room to pay little or no tax on a small income besides social security. Also, if you are charitable, you can use QCDs after 70 1/2 to give it away year by year
Another factor in making larger Roth conversions earlier in retirement is longevity. If married, and one of you has health risks ... earlier and larger Roth conversions make more sense, as once one of you passes, the other will be paying FIT as a single filer.
Doing exactly this strategy for the last 3 years. I will have all my IRA money converted to my Roth in 2025. I am paying more for my Medicare under IRMMA but after a few years that will go down to the minimum for the rest of my life.
I'm a veteran and the VA Is my medical coverage 100%. With that said you are still need to sign up for medicare. If the v a takes care of me , why you need medica Waste that service that I don't need
@@DavidGarcia-wc8js If you choose to rely on the VA for the rest of your life, you do not need to enroll in Medicare. If you later want Medicare, you will face a delay in getting Medicare and you will be penalized for the months and years past 65 that you didn’t have Medicare. I don’t make the rules, just interpret them. Thanks for your service defending our country.
I have a question that I am not getting a straight answer from my employers medical group. I am retiring on 12/31/2024 and turn 65 in 02/25. My wife is younger than me and will not be eligible3 for Medicare for many years. I know she can go on COBRA in 01/25 for 18 months. From what I read in government publications, when I go on Medicare in 02/25, that would be a second event and allow her to extend COBRA an additional 18 months for a total of 36 months. My employer is saying that she cannot extend COBRA. I believe they are wrong and not sure how to address this to get her coverage extended. Also, from what I read, I don't have to go onto COBRA for her to qualify for COBRA or the extension.
@@gregzavertnik1204 Her COBRA and your COBRA are separate from each other. Both are entitled to 18 months of COBRA based upon loss of coverage. The second 18 months for her doesn’t sound right to me. I don’t think the 2nd 18 months stacks on top of the first 18 months. I think it replaces it.
It would be interesting if this video identified what percentage of people on Medicare are going to be harmed by the new $2000 OOP regulation. Only 'a few' people had to pay huge amounts OOP for their specialized medicines. Now, all the rest of us (95%? 90%?) will pay a lot more and/or receive worse benefits. And who in the government were the primary people who gave us this disaster? Basically, 'the government' just screwed all of us on Medicare who didn't have those huge drug costs, instead of getting the money from all people who pay taxes. I know I'm going to dig into this and vote accordingly.
Great stuff. One point you glossed over that you should dig into further for us is how Advantage is shaving coverage. Hans said the insurance companies are making their biz models work by cutting Coverage. Ok so does that mean the plan G is now better? Worse? Same? In other words, the $3k or so a year I pay to be on a Medicare probably has more advantages than just being able to pick my own doctor, right?
@@kevinshea4117 They are trimming the extra benefits like gym membership, dental, vision. Adding premium where it was zero before. Plan G and Original Medicare leave you with an annual out of pocket $240.
@@larriveeman Most cola riders on annuites cost too much. We deal with inflation by laddering payout start dates and/or leaving the bulk of their money in the portfolio and drawing it out as needed for inflation. Most retirees spend less as they age except healthcare
I like this style of presentation! Thanks! What usually happen when I 1) used up the LTC benefits base; 2) still have money in LTC benefits base but no longer need LTC?
@@jiajia9582 The first 2 years of claim deplete the cash value. The next 3 years are on the insurance company. When the benefit base is depleted, the money is gone.
If the tax brackets do indeed change in 2026 to where they were in 2017, will the income for each of those brackets be adjusted for inflation, and be increased from where they were in 2017? The brackets going up 3-4% is only half the problem. If those income thresholds don’t change to the upside, it will mean a considerably higher tax bill for most in the middle class (22%/24%)? Just curious if the income thresholds will likely change with the tax brackets? Enjoy your videos! Thank you!
Those people who have minor children when they turn 62 have an additional consideration as their minor children can collect 1/2 as though their parent retired at the FRA. My son got enough social security in high school to pay for his state university college. As more people have children later in life it's not as uncommon.
Remember, most SPIAs are fixed payments, with no adjustment for inflation. If inflation was just 4%, the value of the payments would be cut in half in 18 years. Also, should the issuer go out of business, you probably lost your money. There is no FDIC here. There may be some state associations that might step in to help
Your SS is inflation adjusted and you are only using a percentage of the portfolio for the SPIA and using the other part of the portfolio for the inflation and other things in life. Also, I don't know of anyone in the last 30 years that have lost the payout of their SPIA due to the boogie man insurance company going out of business. You would be wise to stay away from small lowly rated insurers.
I'm dealing with the flip from earn to spend. I retired 22 years ago at 45 not with a pile of money. I slow flip my house to fund retirement, a hobby that earns. But now at 67 I'm planning to sell house #4 next year and move to SE Asia. That will start retirement 2.0. The common idea I see online is $1500-2000/mo USD to live "well" there. Plus the medical issue because no Medicare benefits outside the US. I should clear $530k selling my house. That will earn about $2000/mo and be my medical insurance in combo with actual insurance. Then in 2 years take SS estimated today at $3800/mo so income about $5800/mo at that point. For the past 21 months my total spend has averaged $592.04/mo. So I'll have 10x more income than I currently spend. I get many will think "good problem to have". True. But I think I still have to be careful. People have no problem over spending and getting into trouble. Do I get a big house just because my income allows even if I prefer a small house? Do I eat out more even though I prefer my own cooking and it's healthier?
I have absolutely known people who were happier and healthier living within a reasonable budget… I suspect you’ll be fine because you’re already aware that spending more money isn’t necessarily better for you 😊
Honestly, I don't see much of anything I want to spend more on. I spend less than half my after-tax retirement income which is mostly dividends from stocks, and some fixed income interest. I haven't come near touching the principle, which has been growing quite a lot in my first three years of retirement. I just turned 62 but probably will not take SS till 67 - 70. I'm trying to decrease the stuff I've accumulated so need very little new stuff. Also, most of my things last a long time before needing replacement (computers and cell phones, dishes, clothes, etc.) My hobbies are painting, cooking, guitar playing, walking, reading which all are relatively inexpensive to pursue. I don't care about cars or golfing or boats or even pickleball. When I travel, I prefer to live close to the people by staying in one place for about two weeks renting a room in a pension (French guest hotel) or b&b instead of a 5 star or corporate hotel or cruise ship, I use public transportation or foot power, and I eat where the locals eat, so I do not spend a lot traveling. I don't think my spending would go up if I had some annuities, as the dividends come in every month much like an annuity payment or a paycheck, and, as I said, I don't see anything more to spend on.
Your story reminds me of looking through estate sales this week. In each sale there was so much junk. I think the owners must have been semi-hoarders. Dolls, tools, ceramics, toys, etc. Maybe that brought them happiness? Just seems like a lot of clutter to me. I'm not retired yet, but the first thing I want to do is try to de-clutter and make it so that my heirs won't have to have a large estate sale to get rid of my junk. Best wishes.
Love the title! There's definitely underspending of personal savings in retirement (Will my money last until I die? What if there's a market crash?). And annuities don't run out, no matter how long you live, no matter what the stock market is doing. The sweet spot is deciding what percentage of your savings should go into annuities, accepting the fact that it won't appreciate as much as the other savings. But with annuities, the peace of mind that your slow-go and no-go years are covered, that's priceless.
Why wouldn't the people keep their own money invested safely and withdraw their own money at 7.42% or 7.92% or whatever percent as they need it? Why hand over life time commitment to an insurance company ?
One reason is that the income is guaranteed for life. Not many investments guarantee you will receive income for life. Many investments fluctuate going up and down. Many retirees don't want the stress of normal investments.
Towards the end of the presentation, Hans mentioned that some people are more inclined to actually spend some of the money they saved if it is given to them in smaller amounts month by month than if they must withdraw funds themselves from the 'total' amount. I agree with this. If I had a million $$ (I wish!), I wouldn't want to withdraw funds to spend because that Million is such a nice number to let sit and 'admire'! However, if I got a little allowance of $500-1000 every month then it would be like I'm getting it 'free'. It may seem weird to some, but that's they way my brain works at this point. Also, my spouse would be more in favor of getting 'bonus' money and letting the larger amount stay 'large'! Probably some funds in annuity and some not in annuity is best plan for some of us old 'savers'!
You sound like Dave Ramsey. Statistically using historical data what would be the success rate of your suggestion. Your suggestion is more market risk than many people want
This is great and very useful for what-if scenarios. Would you be willing to post a similar video showing the impacts that a pension can have? I'm a federal employee thinking about retiring and that FERS income will have an impact, too, on looking at distributions from TSP or other investments. Thanks!
I'm 62 now disabled at 50 My husband passed in 1994,I tried to apply for his sec.soc sec told me? I could not apply for his,, because he had no work quarters. They gave me 212, amth and his daughter 212 a mth. Then cut it off because 🎉 was working and made more than 212 a mth.iade quarters all of them. When I got rea🎉l I'll? I got SSDI but it's very low.
