Should You Draw Your 401(k) to Delay Social Security?

Подписаться 66 тыс.

Просмотров 100 тыс.

50% 1

✅ SCHEDULE A FREE RETIREMENT ASSESSMENT ✅
www.foundryfin...
Are you wondering whether to tap your 401k or IRA before claiming Social Security? This video dives deep into a case study using RightCapital to help you maximize your benefits. Get ready for an in-depth analysis that will have you reaching for your spreadsheet. If you want to make the most of your retirement planning, hit the subscribe button now!
✅ SCHEDULE A FREE RETIREMENT ASSESSMENT ✅ www.foundryfin...
How you choose to withdraw your retirement funds can significantly affect the taxes you pay and how long your savings last. Should I pull from first -- my Traditional IRA, ROTH IRA or Taxable Account?
In this video, we look at a realize case study to help make this important decision - and we even give you free access to the same tool financial advisors use. This information is particularly useful for those nearing retirement or who have just retired, offering crucial tips to maximize your retirement savings.
*RIGHTCAPITAL LINK*: foundryfinanci...
Private Facebook Group // / retirementforum
--------------------------------------------------------------------------------------------------------------------------------
ABOUT ME
I’ve always been passionate about personal finance, investing, real estate, and helping people find the freedom to live their life with purpose. But when my dad died in 2015, I tried to help my Mom find an advisor to sort out her finances. Instead of a helping hand, I found an industry of financial advisors dominated by glorified salespeople working on commission - pushing products that were not in my mother’s best interest. Or advisors with minimums that shut-out all but the ultra wealthy. Disappointed with the options, I took matters into my own hands and launched Foundry Financial, a wealth management firm with transparent pricing that specializes in helping provide clarity around money - so you have the confidence to make smart decisions.My goal is to help a million people retire without worry!
📅 THE BASICS OF RETIREMENT PLANNING
Retirement planning has several steps, with the end goal of having enough money to quit working and do whatever you want. Our goal is to help people master retirement and retire without worry.
Step 1: Know when to start retirement planning. When should you start retirement planning? The earlier you start planning, the more time your money has to grow. That said, it’s never too late to start retirement planning. Even if you haven’t so much as considered retirement, don’t feel like your ship has sailed. Every dollar you can save now will be much appreciated later. Strategically investing could mean you won't be playing catch-up for long.
Step 2: Figure out how much money you need to retire, The amount of money you need to retire is a function of your current income and expenses, and how you think those expenses will change in retirement.
Step 3: Prioritize your financial goals. Retirement is probably not your only savings goal. Lots of people have financial goals they feel are more pressing, such as paying down credit card or student loan debt or building up an emergency fund.Generally, you should aim to save for retirement at the same time you're building your emergency fund - especially if you have an employer retirement plan that matches any portion of your contributions.
Step 4: Choose the best retirement plan for youA cornerstone of retirement planning is determining not only how much to save, but also asset allocation. It can make a massive difference in your retirement plan.
Step 5: Select your retirement investments. Retirement accounts provide access to a range of investments, including stocks, bonds and mutual funds. Determining the right mix of investments depends on how long you have until you need the money and how comfortable you are with risk. It’s often helpful to talk with an adviser to discover the right mix of stocks and bonds.
❣ SPONSORED No, this video was not sponsored.
⚠️ "DISCLAIMER:⚠️This is not financial or investment advice. This Channel is meant for EDUCATIONAL AND ENTERTAINMENT PURPOSE only. None of this is meant to be construed as investment advice, it's for entertainment purposes only. #retirementplanning #retirement #passiveincome

Опубликовано:

29 окт 2024

Ссылка:

Скачать:

Готовим ссылку...

Добавить в:

Мой плейлист

Посмотреть позже

Комментарии : 177

@foundryfinancial 8 месяцев назад

Did anything surprise you in the analysis?

@Corgi_Saurus 8 месяцев назад

Do you do analysis of retirement plans? When I went to your website it said that you only work with people that want you to manage their assets? I thought your business was about financial plan analysis?

@foundryfinancial 8 месяцев назад

@@Corgi_Saurusmy job is to create and implement retirement plans, which allows clients to focus on enjoying their retirement.

@Corgi_Saurus 8 месяцев назад

@@foundryfinancialAhhh gotcha. That's too bad. I can't use an US based retirement manager because I will be retiring outside the US, and by law I can't invest in ETF or index funds... has to be individual stocks or bonds. I have a plan that I've been working and it looks pretty good. I'm really looking for someone to double check behind me and give me a thumbs up or point out things I may have missed.

@foundryfinancial 8 месяцев назад

@kirks4983 great question. She claims at age 67, but it’s her benefit until Phil claims and then it switches to the higher spousal. Because she waits till age 67 there’s no reduction when she flips to his.

@william4202 3 месяца назад

Can you tell me more about this law? Are you an American citizen? I am an American citizen and I'm thinking about retiring in asia.@@Corgi_Saurus

@christopherbilkey5237 8 месяцев назад

I am 71 years old and started SS at 70. I did not take break-even or longevity into my analysis. I just wanted to make sure my 5-year younger wife would always have enough income to be comfortable. Easy decision...

@dancurran8977 7 месяцев назад

I am looking at it the same way.

@b.coxemba6799 7 месяцев назад

80% of retirees die with most retirement savings intact. Social Security won't get depleted. No inheritance to pass on. If she just put out interest gains or 4% she'll be fine.

@christopherbilkey5237 7 месяцев назад

@@b.coxemba6799 Yes, she will be fine. The decision was made several years ago to delay SS to 70. Income is now sufficient no matter what happens to other savings. Thanks for the comment.

@bobackerman54 7 месяцев назад

you are a high character person ... good for you for taking care of your BETTER half ... God Bless and best of luck ...

@christopherbilkey5237 7 месяцев назад

@@July.4.1776That is because we are both good planners. Thanks for the comment.

@Toomanydays 8 месяцев назад

Great video. I retired at the height of the pandemic at 63 and took SS right away. It solved all my cash flow problems, short term and long term. My portfolio had just been kicked in the nuts and using it to bridge my expenses to FRA seemed kind of dumb. There are just too many variables with large uncertainties to calculate the right answer. I learned years ago that going in the right direction is often the best you can do.

@DonaldMains 5 месяцев назад

My portfolio had just been kicked in the nuts?? the stock market is at an all time high. What happened? you made some very poor investing choices??

@Toomanydays 5 месяцев назад

@@DonaldMainswhere was the stock market June 2020?

@onebridge7231 8 месяцев назад

Most base this decision on their health. My dad retired at 62 and took the hit to his SS, my mom retired at her FRA. Dad’s decision was based on his physical decline as his bicep ripped away and after 2 surgeries did not heal properly in his demanding tool&die job. My mom worked a desk as a insurance executive. Her health was much better. Dad’s quality of life has been much better at 74 now.

@sammyday3341 5 месяцев назад

I hope your parents are doing well.

@allengallegos7238 5 месяцев назад

With a paid off mortgage I can live on less than $2000 a month. Social Security will fund my frugal lifestyle. My investments will grow until I am forced to withdraw at 73. If I pass away before then, my heirs will benefit from my savings. Social Security will die with me.

@sammyday3341 5 месяцев назад

Excellent points you made. Thank you.

@wwz1011 6 месяцев назад

People continually equate the age of retirement with the age of collecting social security. You can retire at any age as long as you have adequate finances. And then you can collect social security at a later time to maximize the monthly checks.

@trainsplanesandotherthings5187 4 месяца назад

Most People in America can not afford to retire early..

@mnotlyon 3 месяца назад

@@trainsplanesandotherthings5187 There is no reason to not retire a millionaire in the US unless you were hit with some really bad luck most of your life. Making poor decisions is not the same as bad luck.

@tonylevine2716 Месяц назад

Why not? 🤔

@BorselinoThadchack 8 месяцев назад

THIS is exactly my situation! I ve been a freelancer and so is my wife. This is exactly what we wanted to know. YOU ARE THE BEST!

@foundryfinancial 8 месяцев назад

Glad it was helpful!

@kenmotta7862 7 месяцев назад

Wonderful analysis. This has been my test when interviewing potential financial advisors. Thank you for calling it straight!

@foundryfinancial 7 месяцев назад

Thanks!

@johntrimmer1706 8 месяцев назад

I'm taking SS early to supplement my military retirement, and my 401k will bridge the difference in my monthly expenses. Can't leave SS to your hiers, but 401k and IRA's you can. I don't want to worry about the ups and downs of the markets. I want to enjoy my go-go years with my better half while we still can.

@foundryfinancial 8 месяцев назад

Enjoy your retirement!

@johntrimmer1706 8 месяцев назад

Thanks!

@tonylevine2716 Месяц назад

VA disability too? If so, take SS early and invest it.

@randolphh8005 8 месяцев назад

Nice discussion. For the not so wealthy, trying for one larger SS check just makes a lot of sense. Knowing that this is more true while drawing from the portfolio, makes it even more desirable.

@jwilder2251 8 месяцев назад

I plan to take SS at 62 no matter what, but your video did a nice job showing the ancillary benefits of waiting. My wife will probably keep working until at least 65, so we can wait on hers

@joeatnara7518 7 месяцев назад

One consideration is growth. Typically 401K will be balanced to minimize risk, maximize income toward retirement age, so a Rate of return could be 5%-7%. A delay in SS per year will give you about 8% increase per year. Also there is COLA. The 401K does not have a COLA. Taxes are interesting, If income is less than $44K, then only 50% of SS is taxable. So limiting the 401K to $44K and maximizing SS will get you close to the $8K per month income. You can fill in the gap with Roth to reach the $8K per month.

@Darwinq84 3 месяца назад

I thought 401k distributions are considered passive income and not earned income when it comes to taking into account early SS and the 50% taxable thingy?

@joeatnara7518 3 месяца назад

@@Darwinq84 that is only on the income test for early SS. It is still taxable for regular income. After 67 the earned income test goes away

@mnotlyon 3 месяца назад

The only reason I'd wait to draw SS is if I had other taxable income. The stock market has better returns than waiting on SS, and I can pass those investments on to my heirs. I can't do that for SS. My taxable income at 62 will be near 0 if they don't take away the large standard deduction, so I'll be taking SS as early as I can to protect my investments.

@MarieGlovan 3 месяца назад

13:24 I’m 64, and looking to retire as soon as possible. Your videos are so helpful in sparking questions that I’ve never thought about. Thank you!

@DougASAP 8 месяцев назад

Thanks for the great content! I am happy that I had good tax diversification when I retired - I was able to delay Social Security to 70 AND do Roth Conversions.

@chemquests 5 месяцев назад

That’s my plan

@bobackerman54 7 месяцев назад

thank you for the video ... I retired last month with a similar situation ... One thing you did that I really liked was keep it relatively simple ... i.e. social security with a 401k only ... in doing my stress tests I did not concern myself with SS being reduced ... I do not see politicians ever cutting it and then have to face voters ... I do not consider that very likely ... The one stress test I accounted for which you failed to do completely is what if one spouse dies prematurely and the other lives into their 90's ... (this is what happened to my parents) ... this meant having only one SS income as well as loosing the MARRIED FILING JOINTLY tax advantage ... My WORST case scenario is where I would die in early 60's and wife would live into her 90's ... with just a modest portfolio my first concern is will she have sufficient funds if I am no longer alive ... For me, the time which makes most sense to take social security is anywhere from ages 65-67 ... how the stock market is behaving will determine when I begin ... by delaying the SS the SS COLA will help counter the effects of inflation ...

@chrisforker7487 7 месяцев назад

It’s definitely not an easy decision! It’s so individual and there’s a lot of factors to be considered, most importantly, when your expiration date comes. Nice job putting the math out there for people to consider.

@foundryfinancial 7 месяцев назад

Thanks, Chris! Yeah, there are so many unknowns - it’s tricky.

@robnelson6545 7 месяцев назад

For me it’s simple. It’s an insurance. I’m not using it to get rich but to protect my downside. If I have to use it I can trigger it after 62 and if not, it is an option when things get bad.

@DavidDLee 6 дней назад

The first true analysis of when to take social security, taking into account the opportunity cost of using up your savings. I guess Right Capital already calculated the optimal age.

@jimmywalters3071 7 месяцев назад

I will retire at 62, with Social Security and a Pension at $60,000 per year plus dividend paying stocks at 15k per year., non retirement stocks...I have money in my 401k and will let that grow and/or will take some out of it for big expenses only. Every retiree must pay attention to Inflation and urge policies that curb Inflation to a more reasonable rate of 2-3% per year .

@philmarsh7723 8 месяцев назад

I'd rather minimize risk than to maximize lifetime income. They're not the same.

@trainsplanesandotherthings5187 17 дней назад

The Question is what is wrong with this country, when retirement is so complicated.... one has to figure out all these strategies, Pull your money out to early or too late you get fined... on and on..

@HoustonTom 5 месяцев назад

I like the idea taking SS later as an inflation mitigation plan.

@kinggeek1960 5 месяцев назад

a surviving spouse may receive a higher Social Security benefit if the deceased spouse delayed receiving benefits until age 70. This is because survivor benefits include any delayed retirement credits the deceased spouse earned. Between full retirement age and age 70, Social Security benefits increase by 8% annually due to delayed retirement credits. For example, if a spouse dies before reaching age 70, their survivor benefit may be about 20% larger than if they had started receiving benefits at full retirement age

@suerawley3141 4 месяца назад

I hadn't thought about the tax implications. I'm glad I saw this video before I meet with my advisor.

@mnotlyon 3 месяца назад

I made that mistake when I was younger. I listened to standard advise and put as much into a 401k as I could afford. That's pretty good sized mistake. Long term capital gains has much better tax advantages than a standard retirement account.

@RealTechSkills 8 месяцев назад

Great content and clearly explained planning information.

@foundryfinancial 8 месяцев назад

Thanks!

@kinggeek1960 5 месяцев назад

Nice Video, would like to see another version when spouses are different ages, say 4 years apart. This also impacts Medicare vs ACA, which then impacts IRMAA. Also same use case, with both spouses claiming at 70 (4 years apart)

@elgringoec 3 месяца назад

This is our complication as well. Can't draw much without driving health insurance costs through the roof! So it's wait until she's on Medicare.

@1515cando 8 месяцев назад

Your scenario very closely aligns with my situation. Wife is 62 drawing SS, I'm 59 working for 2.5 yrs yet. Was planning on taking SS at 62. But! We have 882K in 401k and IRAs. I'm determined to try to break through the million dollar mark by 62 or I won't retire until I do. So I've been putting some thought into drawing on the investments and retirement but wait to claim SS at a later date. It seems like that plays out well with your example.

@foundryfinancial 8 месяцев назад

There are a lot of variables, but it can often be the smart decision - although there is some market risk on the front end.

@bobackerman54 7 месяцев назад

Good luck ... if you can, i urge you to consider delaying as long as possible ... for me age 67 makes most sense ... the one issue i most want to account for is what happens if i die early ... me delaying social security will make my wife's situation better if i pass early ...

@damondiehl5637 4 месяца назад

With an 8% return, you will hit the million dollar mark in two years. There are any number f videos talking about how getting to 100k is 25% of the way to a million dollars. It takes about 8 years to get to 100k; the jump from 900k to a million is about 1.5 to 2 years.

@tonylevine2716 Месяц назад

If you are relying on SS to fund your retirement, you already messed up!

@aaronross3392 8 месяцев назад

Liked this analysis. I would add, however, that I’m not sure why you’d analyze 60/40 in both scenarios. Delaying SS is essentially taking funds out of your retirement account to buy a (great-yielding) bond. If you are comfortable with 60/40 drawing SS at 62, you should be comfortable with a much more aggressive portfolio when drawing SS at 70. Would be interesting to see how the “die earlier” scenario looks if you made this adjustment.

@foundryfinancial 8 месяцев назад

Yeah. I was just going fairly conservative, but that’s definitely a possible adjustment and could make a significant difference.

@Toomanydays 8 месяцев назад

Brilliant comment. I took SS early and I’m 95% SP500, 5% cash. To reduce risk bought a smaller motorcycle.

@vernshird711 8 месяцев назад

I plan on retiring at the end of 2025 at age 60. I'll get a pension and also have pre-tax retirement savings. I'm probably getting a p/t job so that will determine my SS strategy. I'll have the 3 income streams (pension, pre-tax, p/t job) and when I end the p/t job, SS will kick in. If I don't get a p/t job, then I'll simply take SS at 62.

@billl1127 26 дней назад

Currently 66 but have no plans to take SS before 70. I have 4 years to do some Roth conversions and will fund those 4 years with cash in taxable accounts.

@jc10907Sealy 7 месяцев назад

I want maximum monthly income. So I’ll try to fund myself until 70 to take SS with a combination of continuing to work, use of savings, reverse mortgage, to cover the expenses from 63-70.

@onebridge7231 8 месяцев назад

The perfect answer is to focus on building multiple income streams for when you retire.

@foundryfinancial 8 месяцев назад

What multiple income streams are you building?

@turdferguson12 6 дней назад

I’m currently 52, I’ll be retiring on savings and 401k at 55, and starting SS at 62. By waiting until 65 it will take years to break even. I just don’t see it being worth waiting.

@colleenhouse7869 4 дня назад

Agree! When I took my dad to the SS office (now this was a while back and he had federal government pension) the difference in waiting from age 62 to 65 was $3 a month. He said I'll take it at 62, who knows if I'll make it to 65. Haha

@turdferguson12 4 дня назад

@@colleenhouse7869 yeah my grandpa took it at 62 and died in a car wreck at 64. If he had waited, he would’ve gotten nothing.

@ajwhite8235 2 месяца назад

Your comments about living longer than the average are VALID! I don’t recall who or where I read it, but average lifespans are based on the entire life, meaning those that died early on due to accidents, etc, skew the stats down. However, of those that live till 65, the average lifespan shoots upward into the higher than total lifespan numbers.

@notyet2345 8 месяцев назад

This is a good question. I"m 60 and retired. I live off rental income, side hustle income and about 500.00 a month from my savings account when necessary. My monthly expenses are pretty low. I don't have a mortgage and I'm debt free. Because of having low monthly expenses, SS can cover all of my monthly expenses and leave me about 600.00 a month left over even if I take it at 62. I have about 500k in various investments. I will be selling the rental property within the next few years and investing the profits, I was thinking about taking SS between 63 and 64 and living solely off SS. If I do this, my investments and savings hopefully will last a lot longer.

@foundryfinancial 8 месяцев назад

Your question will be less about making the plan work (congrats on that) and more about tax optimization. A great problem to have.

@notyet2345 8 месяцев назад

@@foundryfinancial thx. It’s nice to know i’m on the right track.

@mnotlyon 3 месяца назад

@@notyet2345 You're going to take a large tax hit when you sell your real estate. However, if you live in the house for at least two years before you sell, it becomes your residence. You are exempt from capital gains tax on your residence up to $500,000. This is HUGE tax savings. You might consider selling your current house, then moving into one of your rentals. rinse and repeat every 2 years to save HUNDREDS OF THOUSANDS on taxes. Talk to your tax adviser to help make a plan, and tell them about this strategy. Many advisers don't think of this as an option. If you wanted to keep your current home, you could consider renting it while you move into the others, and move back into it when the others are gone.

@marcdalanni5817 8 месяцев назад

the threat to retirement is inflation, taxes, age and longevity, medical cost, personal cost of living, vs economics of the time your retirement, did you invest in a taxable account or tax deferred account, or use a Roth, account in investment, putting money in a Roth you don't worry about tax, the SSI won't really matter if your investments are giving you your cost of living, with a little extra. and besides their are ways to reduce or eliminate tax upon transferring the remainder or your investments to those family members while you are still alive or after you pass. investing in dividends give you income so you don't spend principal. It's more about saving and investing to live in a quality of life you want to be comfortable, not just retirement, when you are too old to do the things you wanted to do when you where younger.

@mnotlyon 3 месяца назад

Most of my retirement is real estate inside a ROTH. This helps protect against inflation and taxes.

@spookietowne7932 5 месяцев назад

Bridging. In my opinion, if your financial situation is $800,000 in investments you can take SS at 62 & be able to tie up $600,000 of it to gain interest/dividends. If your financial situation is $150,000 you will probably be better off to use that to delay SS until 70

@88888gerald 7 месяцев назад

its all according to your circumstances....in my case the answer would be yes....if only because you will get a larger raise every year that cola (cost of living adjustment) which will really make a lot of difference thru the years....

@foundryfinancial 7 месяцев назад

Right. That inflation protection is important.

@gg80108 7 месяцев назад

I like to maximize my networth. Take SS early.

@TheodoreHolroyd 8 месяцев назад

I was surprised by the difference in probability of success. I can plan for age 95 but sure hope I go sooner.

@foundryfinancial 8 месяцев назад

Now, that probability of success would probably drop with a more conservative portfolio. There are so many variables.

@manuvns 5 месяцев назад

Use margin to grow your assets and pay it with social security

@habbadabbado5765 5 месяцев назад

Is this a joke? Leveraging for retirement funds is not bright.

@warrengamble2786 7 месяцев назад

Hey brother can you maybe do a video on the 72t retirement option to get your IRA a little sooner than waiting till 59.5 thanks

@foundryfinancial 7 месяцев назад

That’s actually a great topic. I’ll add it to the list.

@Iamgrateful2day 7 месяцев назад

The taxes are really based on your state and deductions you have. The first $13,610,000 of an estate is exempt from taxes starting in 2024. Also recommend putting your estate/accounts into a trust.

@foundryfinancial 7 месяцев назад

If your money is in an IRA, your heirs are taxed when they withdraw the money -no matter the size of the estate. But, I completely agree on the trust.

@Iamgrateful2day 7 месяцев назад

@@foundryfinancial good to know so that does limit the taxes significantly since you probably don't have all your money in an IRA.

@andrewmorris5779 17 дней назад

Why was income zero when they were taking 401k distributions? Maybe I missed something, but that should be taxable income while delaying SS income?

@donniesmith8779 6 месяцев назад

66.5 and just started SS, not using and in saving at 5%. I have no debt, married, annuity, 401, savings intact. Thinking about quitting and be full time. Scary times in 2024. Just want to know for myself if the time is right to 100% retire. It is a hard decision..

@jeanah685 12 дней назад

I wish you'd use more practical numbers. Your examples show they shouldn't have any money problems

@glockman99 8 месяцев назад

Great video!! Thank you!!

@foundryfinancial 8 месяцев назад

Thanks!

@KarenClemes 7 месяцев назад

In one of your videos, you said access to Right Capital is free. How do I get access? Thanks.

@foundryfinancial 7 месяцев назад

foundryfinancial.typeform.com/rightcapital

@babszollak2512 4 месяца назад

You seem like a nice enough knowledgeable guy. However, a quick look at your topics. Do you do any videos for people who are single and maybe consideration for retirees who are women?

@josephjuno9555 8 месяцев назад

There are so many more things than just how much money you get when you are Old? It's when you want to Use the money to be able to do what you want while you still can do it? Like Travel? Hike Bike, Camp Hunt Fish ect not just sit in Retirement home in rocking chair?

@foundryfinancial 8 месяцев назад

Did I say there wasn’t? I would completely agree. In fact, I tried to be very clear I’m trying to help you evaluate one specific question. Both scenarios retire at the exact same age.

@mdevorah6833 3 месяца назад

Exactly my view... at 67 RMA, w/drw for 401k. Hold out till 70 to max out my $$

@reebeeable 5 месяцев назад

I thought a person couldn’t file for spousal benefits until the spouse claimed. In your example Clare claimsT age 67, 3 years before her husband.

@foundryfinancial 5 месяцев назад

You are correct. I wasn’t clear. She can take her own and then switch to the spousal.

@sewnsew6770 6 месяцев назад

Actually working as long as can seems best option financially But then miss out on experiences like traveling

@stephenr2195 7 месяцев назад

interesting, our situation is a bit more complex, with pensions, taxable investments, real estate rentals.... But my main concern with pushing SS and our pensions back are they die with us, as in not being able to leave that income to our children. I'd hate to pay down our accounts and leave all that money on the table in case of an early demise.

@brianmanning9271 5 месяцев назад

What if you take it at 62, draw off your retirement, while using your ss check to reinvest in the market?

@foundryfinancial 5 месяцев назад

I have a whole video where I explore that.

@clarencelipke6902 5 месяцев назад

Not correct I believe spouse can not collect spousal until main worker is colllecting

@foundryfinancial 5 месяцев назад

They can claim their benefit and then switch. I just wasn’t clear enough. It does reduce their benefit slightly, but not fully.

@Will67267 7 месяцев назад

I take social security at 62 and invest it in VOO while I draw from my 401K.

@foundryfinancial 7 месяцев назад

You should back test VOO between 2000-2013. Careful you don’t fall to recency bias.

@mrs.sanchezssuperstars1010 6 месяцев назад

Curious, I will receive a pension (public school teacher) and will be unable to collect my husband's social security (or very, very little survivor benefit). He is 8 years older and I have about 5 more years before I can retire with a full pension. We are planning for him to take his retirement at 62 so we can both enjoy the SS whether we use it for travel or reinvest while I am still working. Anyone else in this situation?

@mnotlyon 3 месяца назад

I will absolutely take SS the second I'm eligible so I can leave more investments intact. The only thing that would change that is if we had other taxable income. It sounds to me like you will since you'll still be working. You need to talk to a tax professional.

@keyvictoria608 7 месяцев назад

Can I get the link to do the calculations

@foundryfinancial 7 месяцев назад

foundryfinancial.typeform.com/rightcapital

@Sisilane 3 месяца назад

Not at retirement yet but, planning. I want to payoff debt now by using my 401K, is that a good ideal?

@turdferguson12 6 дней назад

No!

@michaelvadney5803 4 месяца назад

How can you prepare any plan with uncontrolled inflation? I don't think that it is possible and most planners that I have seen don't really address this possibility.

@mnotlyon 3 месяца назад

Inflation exists, and we can't control it. I have taken steps to mitigate its effects though. 90% of my retirement income will come from real estate inside my ROTH. Real estate is less prone to inflation, and the ROTH protects me from taxes (until they change it). The other 10% in in Bitcoin. Bitcoin is risky, that's why it's a small portion, but it should be more inflation resistant than the US dollar.

@johnnybq2 7 месяцев назад

If you withdraw SS at full retirement age, and even if you don’t need it, at least you’ll have it instead of the US Treasury. If by chance you die, at least that money, and interest earned, will go to your kids…. They can’t collect your delayed SS. Spending down your savings or paying taxes in advance to maximize your monthly SS check in your mid 80’s ( if mid 80 ever comes for you) seems crazy to me.

@donf4227 Месяц назад

Everyone's situation is different, but taxes on investments age 62-69 could be a much lower rate than they are 15-20 years later, if the economy takes a downturn in USA, or simply if some politicians decide to raise tax rates. I'm fortunate that my mom took her SS early, because she ended up passing away at 73, but if she had somehow lived to 90 she would have run out of money somewhere in her early 80s. Around 65-67 may be the sweet-spot for people who have limited investments but are in good health. I'm hoping / planning to have enough in investments to be able to wait until 70 for SS, but I wouldn't hesitate to take it at 67, even if my health is still very good at that age, if I needed to. Health plays a big part, I believe, but taking SS at 62 seems very risky to me, if there's any decent chance of living to 90, under most circumstances. It may provide a higher average $ to leave to heirs, if you run it 100 times, but there would also likely be a higher % of running out of money, needling care, and leaving nothing.

@MB-rr1fb 4 месяца назад

Time after time the MATH shows SS at age 62 is the best way to go...........

@KMarik 4 месяца назад

Not for everybody.

@mnotlyon 3 месяца назад

I mostly agree if that person is a good manager of their finances. The exception may be if they're still working. The added taxes may cause that to blow up.

@turdferguson12 6 дней назад

Absolutely, I calculated it, I don’t remember exactly, but I would be something like 73 before I break even. Who knows if I even live that long. A bird in the hand is always worth two in the bush.

@BlackMan614 8 месяцев назад

This is math 101. And the chances of a male living to be 95 who was born in 1960 is less than 20%. If you were asked to bet your assets on a plan based on a LESS THAN 20% probability of outcome - you would go all in?!? And it's why these financial plans are worthless in a mathematical sense.

@Toomanydays 8 месяцев назад

Duh, that’s what he just said.

@BlackMan614 8 месяцев назад

@@Toomanydays No he didn't. He went right back to using 95 and blowing off the age 80 - which should be the starting point.

@Pje3ski 6 месяцев назад

Male living to 95 is 20% ? That sounds very optimistic.

@donf4227 Месяц назад

Perhaps 20% living to 95 is high, but I'd believe 20% of 60 yr old men will live to 90 soon. Looks like average life expectancy for 60 yr old American man is currently 82. If average will be 22 more years, I believe close to 20% will live 30.

@tiffanyalberti2029 7 месяцев назад

Is it really worth it to have a retirement plan?? Wouldn't it be better to just save 12K a year in a savings account for retirement or take that 12 K a year and invest it wisely?? I am taking steps and studying to become a back end software engineer which means that I will be making over 90K a year.

@alcw625 7 месяцев назад

isn't that still a plan? Investing wisely can mean many things to many people...does wise mean growth, income or value? Does it mean muni bonds, t bills, etc depending on what you need...SS in itself is an ever changing government program with new rules as does 401k programs

@damondiehl5637 4 месяца назад

A savings account will get eaten by inflation. It will barely keep up or even lose against inflation. You need to invest on an asset that has a higher rate of return. Funds/stocks are the easiest to manage and can be liquidated easily when necessary. Real estate is another option but comes with a whole other set of headaches.

@mnotlyon 3 месяца назад

I am not a financial adviser, or a tax professional and this is not financial or tax advice. My experience is that maxing my 401k was one of the larger mistakes I made. Here's what I wish I had done; 1) invest up to the company match in my 401k 2) max out my roth 3) max out an HSA when I qualify. 4) Invest the rest in a standard brokerage account. (this assumes you are a buy and hold type of investor, and that you do NOT have a ROTH 401k available) Here's why; 1) The company match is worth the taxes you MIGHT have to pay. 2) ROTH is tax free at retirement, and can be used without penalties or taxes within limits before retirement. 3) You're gonna have health care expenses, and why not pay them tax free? 4) There is NO long term capital gains tax on your first $89,250 of GAINS PER YEAR (if you're married). This is MUCH better than a traditional 401k tax treatment. So, during retirement, I'd draw nearly 30k per year from my traditional 401k. This would be tax free because of standard exemptions. Then, I'd take out about 60k of GAINS from my brokerage account that would also be tax free. If needed, I'd pull additional money from my ROTH, and of course pay my medical with the HSA. This gives me a tax free income in excess of 100k per year if I've made good investments.

@donf4227 Месяц назад

Almost everyone young should be trying to max out their Roth IRA contributions, IMO. (Max is currently $7000 per year, I believe.) Roth IRA is great even if you are saving to buy a house, but don't know whether it will be 5 or 15 years from now. You can take out contributions without penalty, unlike some other retirement accounts. So say you put in $5000 and invest it. If it grows $5000 (doubles) in 8 years then you can take out the $5000 you put in-- without penalty-- and leave the other $5000 in the Roth IRA to grow until you retire. How to Money podcast has a good episode explaining Roth IRA and why it's great, especially for the majority of people under 35 or so.

@cheryldubois3205 4 месяца назад

There’s still the mandatory withdrawal that has to happen.

@mnotlyon 3 месяца назад

You need to consider doing a ROTH conversion. Be careful though, if you do it all at once the tax hit will be insane.

@chessdad182 5 месяцев назад

I'm getting tired of reading all the obituaries of folks I knew that passed away in their sixties.

@bruceeigsti5274 8 месяцев назад

No never u dint want to drain your retirement to delay ss *unless u know my date of death) we are retiring nxt year at 63 takung ss at 65.. all my funds are in tax free investments so not worrued about Any tax after 2024..

@kyebo1776 8 месяцев назад

Are you a fee only financial advisor?

@foundryfinancial 8 месяцев назад

I am a fiduciary, independent, fee-based advisor. I’m paid my clients - not some fund company.

@anthonyvanburen3998 8 месяцев назад

Are you fee based for AUM?

@foundryfinancial 8 месяцев назад

@anthonyvanburen3998 we charge based on AUM.

@kyebo1776 8 месяцев назад

@@foundryfinancial okay thank you- I will check out your website.

@Bill-vk7fh 8 месяцев назад

@@foundryfinancialCan you explain fee-based vs fee-only ? Thanks.

@inquisitvem6723 5 месяцев назад

I’d rather touch my Roth before withdrawing from 401k

@chemquests 5 месяцев назад

That’s the inverse of common advice. Why do you use this strategy?

@mnotlyon 3 месяца назад

Bad idea. Every bit of income your roth creates is tax free. Every bit of income your 401k creates is taxable. Draw from your 401k asap, and consider doing a ROTH conversion too. You need to talk to a tax adviser to help you plan this properly. If you do it wrong, they taxes will eat you alive. The ROTH is the last thing you want to draw from.

@elgringoec 3 месяца назад

Maybe the best hedge against inflation is your vote. Jus sayin

@mnotlyon 3 месяца назад

You can't vote out the Fed. They're not part of the government. They are private bankers soaking the wealth out of the country.