Retirement Account Withdrawal Strategies 

Consider financial planning.

It really isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into investment advisors for a strategy that suits your timing.

I totally agree, I just retired with about 1.2 million in outside retirement funds, no debt and very small dollars in retirement funds compared to my balance of portfolio over the past 3 years to date. tbh, the role of the invt-advisor can only be overlooked, not denied. just do your research to find a reputable one.

I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.

I definitely share your sentiment about these firms. When I was starting out, I checked out a couple of freelance investors online, so you could do the same. I personally work with “Colleen Janie Towe”, and she's is widely recognized for her proficiency and expertise in the financial market. With a comprehensive knowledge of portfolio diversification, she is acknowledged as an authority in this field. Most likely, her deets can be found on the net, so you can confirm yourself.

Basically for me, i think i prefer investing than saving

wow... i think this will be the best option,... thanks, I found her

Marissa Saponare investment fees are relatively low

For retirees and those close to retirement, I believe it's particularly challenging. All those years of labor only to lose it all to a problem you weren't responsible for, my regrets to everyone retiring during this time.

I'm very worried about the future and where we're all heading, especially in terms of money and how to get by. I'm considering making my first investment in the stock market, but how can I do so given that the market has been in a mess for the majority of the year?

After the pandemic, things became extremely difficult, which is precisely when I sought a consultant's counsel. I've been investing on my own for nearly 3 years and have built up a stagnant reserve of $280K to $570K in just over 24 months.

I’m in dire need of guidance so i can salvage my portfolio due to the massive dips and come up with better strategies. How can I reach this advisor?

‘’Natalie Lynn Fisk’’ is my adviser and she is highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

I AGREE.

US government pensions do. But smaller than SS.

Well it is true, was tax planning taken into consideration along the way? Toth Conversions? Etc

Now you have my attention sir How did you do this? Who's the knight in shinning armour? I am slowly giving up on all of these

@@thesportsguruu Sir? It's funny cos I'm a lady or doesn't it suit the "narrative"? It takes quite some level of patience and "Nancy Lynn Lewis" is the "knight", she was in the news alot in 2018. You can check her out online for more.

@@trishawallor Low Blow right there ma'am. You didn't have to pull the gender card. Wasnt necessary. Thanks still. Ill check her out

@@trishawallor Wow I know this little lady. Once attended a seminar she was also in attendance here in Texas,, Great speaker. I still think the 401k or putting it in a high yield savings account is the more reasonable option, given the economy,,

@@the_jean_mum This right here is the second time I am coming across this name in a week. Came across her podcast and it was lit

We have clients all of the United States that we interact with virtually for this type of planning. Feel free to reach out to me for a complementary consult 518-477-6686 or mruger@greenbushfinancial.com (Comment is for education. Not advice)

Agree. I feel many miss reiterating this important detail.

The answers to these questions are truly on a case by case basis. There are more factors that come into play with a SS filing strategy. Feel free to reach out to us for 15 minute consult: 518-477-6686 (Comment is for education. Not advice)

You can withdraw your principal at any time but any gain would have to wait 5 years from the account open date. However if you happened to have an older Roth account of at least 5 years old, you can roll into it and any gain can be withdraw tax free immediately.

Non-qualified annuities are tricky. If you do not annuitize them, the gains come out first. If the plan is not to annuitize, we will sometime have our clients draw out a small portion of the gain each year so it does not spike their taxable income. Non-qualified annuities are one of the worst asset for a beneficiary to inherit because they inherit your cost basis in the annuity and there is no step-up in cost basis. (Comment is for education. Not advice)

You are correct in your thinking. If you’re in the same bracket you do get the benefit of the accumulation being tax-free and your beneficiaries potentially receiving a tax-free but there is the take back that it could expose it to a long-term event since it’s in a Roth IRA if you don’t have other assets to protect against that potential future event. The other thing to consider is while you’re in the same bracket potentially now when your RMD’s start at age 72, Your tax bracket could be higher with the addition of those taxable Distributions. The Roth conversion strategy also helps with that issue. (Comment is for education. Not advice)

Hi Jeannette. This will be a longer answer so feel free to schedule a 15 minutes call with me via our website www.greenbush financial.com (Comment is for education. Not advice)

I can only respond to this as it pertains to my own Situation. Since I was born in 1958, my Full Retirement Age (FRA) is 66 years and eight months. At my FRA, I would draw $2,338 per month, versus $2,961 per month if wait until age 70. Please understand that these are expressed in today's dollars, and do not contain any future Cost Of Living Adjustments (COLAs), since those obviously cannot be known at this time. Applying the Compound Annual Growth Rate (CAGR) formula (which I will get to in just a moment), my CAGR would be 7.344%, NOT 8%. Again, while this pertains only those of us born in 1958, I cannot imagine that the calculated rate would be significantly different regardless of one's year of birth and resulting estimated SS Benefits. Here's why. The CAGR is simple to calculate. There are only three variables: The easy part: Divide your monthly benefit at age 70 by your monthly benefit at your FRA. These would be on your statements from the Social Security Administration. My number calculated to 1.26646707. I will refer to this number as "The Factor." The third number is where it gets tricky. It's the Growth Period in years. My interpretation? There are three years and four months during which I would draw starting at my FRA versus waiting until age 70. Thus, the period in years that I used was 3.3333. This number is then divided into 1. In my case, 1/3.3333 equals .3000003. I will refer to this number as "The Root." Since you stated that your FRA is 67, your Factor (the quotient of your age 70 benefit divided by your FRA benefit) would be smaller than mine. However, the number of years between your FRA and 70 would result in your Root being larger than mine. In your case, presuming it's 3, your Root would be 1/3, or .3333. Thus, your larger Root would offset your smaller Factor. While it might seem counterintuitive that your smaller number of years between your FRA and 70 would cause your Root to be larger, please remember that the Multiplicative Inverse (or Reciprocal) of that number of years is what is used in the Formula. Hence, your larger root. 1/3 or .3333 is larger than mine, which is 1/3.3333 or .3000008. All that said, some might argue that, in my case, the number 4 should be used, since I would draw in calendar years 2025, 2026, 2027, and most of 2028 (and each year would receive a COLA in January) before beginning to draw at 70. If someone wants to use that Methodology, fine. In that case, the CAGR drops to farther away from 8%, to 6.0837% Thus, if anyone tries to tell you about that "8% 'Guaranteed' annual raise if you wait until 70," you can not only tell them that they are wrong, but you can easily prove it. Hoping that was helpful. Cheers and All Best!

No! Your “investment” income from the markets isn’t guaranteed. It could be negative.

The answer to this question varies plan by plan. Some plans allow partial distributions while others are lump sum only, meaning, Once to initiate a distribution you have to take it all. Most individuals when they retire will open a rollover IRA and then consolidate all of their 401k accounts into one IRA and then take distributions as needed from there. (Comment is for education. Not advice)

@@greenbushfinancialgroup so if I roll them all in to one IRA I can choose the amount per year I want to take out in this example $40k and pay only the tax’s on that amount? i want to stay in the lowest possible tax bracket I.e 12% so I want to stay under that limit . I assume since I will be 55 years old I will be paying the 10% penalty on the amount I pull out, I also assume at 59 1/2 I will stop paying the penalty Thanks so much your wonderful

To my knowledge, if your income is above the thresholds mention in the video, SS is subject to Fed Tax. I have never come across an exception that makes SS 100% exempt from Fed Tax. If you find there is in fact an exception, please share it in the comments so others can benefit. (Comment is for education. Not advice)

@@greenbushfinancialgroup I understood that SS is not federally taxed because certain pensions are not considered earned income and therefore are not counted against the SS income limits. In my case, I paid SS taxes from the employer that is now providing me with a traditional pension.

@@greenbushfinancialgroup This is a copy from the AARP site and it's what I was originally referring to." In the vast majority of cases, no. If the pension is from an employer that withheld FICA taxes from your paychecks, as almost all do, it won’t affect your Social Security retirement benefits." To be clear, I retired from my job 2 years ago and no longer work. I'm only living off my pension, but filed for SS a few weeks ago. Thanks

@@roadking9680 Indeed, thanks. I looked into it further and realized I was confusing the federal taxing of my SS with having my SS cut back if I got a new job and made more than the amount allowed earned before penalizing me for making too much money and collecting SS at the same time since I'm younger than my full retirement age. One is a tax, the other is a penalty. Again, thanks for helping to clear this up for me. I was conflating two different Social Security scenarios.

@rvoit Retard, a mutual fund can be invested with after-tax money. When you withdraw the after-tax money from the mutual fund to spend, it can generate capital gains. Capital gains, depending on your income, is taxable --- typically at 15%.

While there is no "step up" to Roth IRA's beneficiaries are able to withdrawal the full account balance tax free as long as the previous account owners held the account for more than 5 years. This is why it's one of the most beneficial accounts to inherit (Comment is for education. Not advice)

You can always withdraw your conversion amount. Any gains have to wait 5 years on each conversion.

@@michaelbokowy5494 there is no 5 year waiting period in his scenario because his conversions were made after the age of 59.5. The waiting period only applies to conversions made before age 59.5.

In his example with no gains he can take it at any time but each conversion even after 59.5 has it's own 5 year clock for any gains on the conversion amount.

Scenario 2: In 2020, at age 67, I CREATE my Roth IRA. My initial deposit is $5.00 - In 2025, at age 72, I take my first RMD (from my traditional, tax-deferred, IRA). Call it RMD-2025. - I deposit some of RMD-2025 into the Roth. Call this Roth-Deposit-2025. - The following year, in 2026, at age 73, I take my second RMD. Call it RMD-2026. - I deposit some of RMD-2026 into the Roth. Call this Roth-Deposit-2026. - and so on, in 2027, 2028, 2028, etc MY QUESTION: Are the GAINS on Roth-Deposit-2025 subject to a 5-year wait (until 2030)? .And are the GAINS on Roth-Deposit-2026 subject to a 5-year freeze (until 2031)? etc. In other words, are the gains on each Roth deposit subject to a (their own) 5-year wait? .

@@FlaschDJ contributions are different then conversions, each conversion has their own 5 year waiting period. Not 100% on contributions but believe once you open your account there is only 1, 5 year period. I also believe that you cannot put RMD's into a Roth. In order to deposit into a Roth account you must have earned income from a job.