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. !
Thank YOU for your service. We get to help because of people like you. I'm glad these podcasts have been helpful and hope you have a wonderful retirement next year!
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.
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.
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
Good video. One thing about a brokerage account is your tax will vary depending on what you invest in. For example if you invest $100k in a stock gradually that grows to $200k and some is at a gain and some at loss you can sell a portion and pay no tax or maybe even take advantage of a loss by selling the highest cost shares. If instead you invested the entire $100k at once and it doubled to $200k, you would pay some tax on dollar one sold.
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.
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.
