Excellent presentation! It’s so unfair that taxes get more complicated in retirement! My head is spinning….and I have a B.S. in Accounting.

It’s raining knowledge….and it’s free. All you have to do is put a bucket outside and let Eric and Tony fill it.

@SafeguardWealthManagement

2 жыл бұрын

Hahaha, thanks Stuart. You're the man!

My father was responsible for running a profitable sawmill for many years. It was his job to get the most lumber yield from every saw log. That wall paper behind you… You don’t need more timber. You need a better plan

@PH-md8xp

2 ай бұрын

😂😂

Thanks for the info on the clean up zone. Useful!

You are phenomenal in this one! Usually I can’t keep up with you. Thanks !

So glad I'm a subscriber. I learn something every time. I made notes for my planning. 🙂

So glad to have found your channel! Thanks so much for what you do.❤❤t

Thanks Eric. This is one of the best videos out there that I have watched. It has cleared out a few clouds over me. Really appreciate it.

Thanks Eric, I ditto the comments directly below. Very very well explained. Excellent!

I have watched many of your videos. This is the best.

One of the best videos on this topic I have seen. Thanks!

Just found your channel. Fantastic presentation. Appreciate your information on retirement tax planing and strategies. subscribed!

Fantastic! Extremely useful, intelligent and well thought-out. You’re the best source I’ve found on KZread.

Thanks Eric, this is the best planning that I have seen.The examples of the ACA planning and the catchup zone helped me. I would love to see more examples.

Thank-You! Such good information.

Your well-designed slides massively help.

This was extremely helpful. Thank you!

Excellent review - thanks!

The best illustration I ever saw. Thank you🎉

This is great stuff. Very helpful and educational

Thank you, well done.

Very informative thank you!!

Awesome overview, thanks!

4 months to A62, this “clear zone planning” is exactly I need to work on. Thank you!

Some would call me poor. My income is $31K/yr. I spend about $10K/yr. So my wealth increases by about $20K+/yr. I live simply with no debt. I'm a 74 year old veteran. My only pre-tax account has about $100K balance with RMD about $4K/yr. That $4K goes into another account, I don't spent it. I pay no income tax at all and my property tax is $0/yr also. I could spend 3 times as much and still be stable financially in the current economic climate. I'm OK. My total wealth is slightly greater than $500K. If everything crashes, I would still be OK because I have actually been really poor in the past and I know how to do that too.

Outstanding presentation! Thanks for the information. I look forward to watching your other videos.

@SafeguardWealthManagement

2 жыл бұрын

Thanks Mike!

So so awesome. Thank you so much.

Thank you!!!!!!!!

Excellent. Thank you; just what I needed to learn (take some gains while I'm in lower income during low fed tax time and before taking social security). I think you referred to it as "cleanup time." I only have 2 years to do this before RFA so this may mean I might want to take ss later so I can do some more clean up before ss. Liked and subbed!

Very informative, I think a series of videos breaking this down a bit.

This was a fantastic explanation, thank you for sharing this information,

Great Information!!! thanks. Now I have an idea of what to do to plan my tax strategy for each year.

Great! And very thorough and well explained. Might mention in marriage QDRO (with younger spous) and QLACS and one off HSA payment as additional ways to reduce RMDs. Cheers Jef

WOW! This is very eye opening. I wish I had seen this ten years ago (71 years old).

Wow! So much good information. You're site is my go to retirement tax planning channel. Keep up the great work and thank you.

@SafeguardWealthManagement

2 жыл бұрын

Thank you Scott!

Excellent detailed presentation. Thanks

Great info, clearly explained. Thank you!

@SafeguardWealthManagement

2 жыл бұрын

Glad it was helpful. Thanks!

Good info. Been thinking about this now thay middle age.

I really enjoyed this ... ACA and Roth conversions are interesting ... I hope you cover singles more. Note that having a larger taxable account can mean a substantial forced dividends income source.

Great presentation! Glad to see the ACA benefit being integrated in planning. Most (including myself) don't see this one coming. Ouch!

This is the BEST withdrawal strategy video! Thank you. I think you saved me a lot of taxes from RMD.

The section at 37:22 on ACA planning for age 62-65 is very interesting. I was wondering if you have any videos that cover ACA planning and tax strategies for early retirement from, say, age 50 to 62 ?

Good explanation and advice!

Fantastic work Eric

THANK YOU.....

This is basically the vidio I have looked for vor years. I have always thought about taxes in this way. Not a tax planner ut accumulated enough knowledge over the years to basically force myself to maximize every year possible into roths from close to when they started. I will be sharing this link with a bunch of people that I hope will watch because you explain it better than I ever could.

This was a terrific presentation. I now understand the WHY behind my financial planner’s recommendations. He says that things will be preferable tax moves, but now I really get it. Thank you so much. I have a lot more confidence in the plan he provided.

Thank you for another great video! I wish you would offer paid consultations for those who manage their retirement plans themselves.

Excellent presentation. I like the framework you provided in this presentation. A lot of good food for thought. I was hoping you guys have a SaaS online to use for a reasonable fee of course. Thank you again!

Great video! Thanks Eric!

@SafeguardWealthManagement

2 жыл бұрын

You bet! Thanks Terry!

We are retiring at 54 (year we turn 55) plan is to utilize 401k and brokerage until 59.5, balancing each to keep taxes in 12% bracket and qualifying for ACA. From 59.5 until will gradually move income from IRA and 401k avoiding using Roth and Brokerage unless needed to keep tax bracket in 12%. From 70 on, will use both SS and spouse SS and Roth/brokerage to keep taxes close to 0.

@evargas9579

2 жыл бұрын

Like your plan.. I was going to utilize almost a similar plan 401k and pension.

Excellent segment! Knowledge is power! Especially, since I have 2 government pensions, government 401K, and social security. Fortunately, I also have tax free VA service-connected disability compensation.

aca strategy was extremely useful. Great information!

This is a very comprehensive overview, and a great video - thanks. I’m curious - how many years out from retirement does it makes sense to start planning this? It seems like we’re all guessing at future lax laws right now, but if retirement is farther away, it’s more of a guess. Is it best >7 years out to just focus on balancing the tax allocation buckets as much as possible? New rules will be there when you get there…

Excellent!

Wow Eric, drop the mic! Well thought out video on this topic!

@SafeguardWealthManagement

2 жыл бұрын

Thank you John! I really appreciate it!

Eric, excellent work. Thank you for sharing this like a teacher. The more you do this the better you get at it, and subsequently so too do those fortunate enough to watch and learn. Well done and well worth the time for your team to invest in. There is a tipping point that is reached (no one quite knows when) where all of these videos and presentations will begin to compound in returns. Keep up the work and stay the course.

@SafeguardWealthManagement

2 жыл бұрын

I really appreciate the kind words Jeffery. We won't be slowing down :) Thanks for taking the extra time for this comment. Means a lot

Excellent information. I may have to hire your firm in the near future.

Good advice in the catch up zone ..by delaying social security and using less recorded income more taxable income I went from $1550 dollars a month cobra health insurance to $0 monthly $0 deductible ACA /Medicaid insurance.Have to be careful how much of Ira tax deferred account are withdrawn.

Great video once again! Full explanation of the obstacles we will be facing. Fortunately, we have a modest Traditional IRA, good size Taxable account and small Roth. Gives us options to pay minimal taxes. Love your videos

Excellent video. Very clear explanations.

@SafeguardWealthManagement

2 жыл бұрын

Thank you Mr. J!

Great job explaining complex topics.

@SafeguardWealthManagement

2 жыл бұрын

Thank you!

Excellent analysis and explanation.

@SafeguardWealthManagement

2 жыл бұрын

Thank you Thomas!

TY

Hi there! Great video. Just recently learned about roth conversions with your videos we watched. How does the job & tax cut apply when trying to convert our 401k to roth ira while employed? We called Fidelity & asked if we can convert and they said we couldn’t but We weren’t sure if the representative knew what she was talking about. Thank you soo much for all your great videos!!!

Hi Eric: This is very informative and very clean. Is there an Excel template you have where in one can enter the tax bracket one will be in and have suggested pull for a given income from Roth, vs Taxable vs Tax deferred...etc., including social security

You r amazingly excellent on your financial planning. I should have known you before I turned 65, now I’m delaying my SS to offset my Medicare IRMMA payment and planning to convert to Roth this year 2023 though very limited. Thanks a lot.

Special Thanks for the ACA section! My wife is retiring at 62 and we will lose her coverage. We are looking to tip toe thru this ACA zone by paying the ACA HSA high deductible premuims thru my S-corp business and still do some targeted roth conversions especially if the market tanks as in 2020. Traditional IRA's are $1 mil so we have only 10 years to convert before taking SS at 70.

Wow… Great presentation!

@SafeguardWealthManagement

2 жыл бұрын

Thanks Kwame!

Excellent

Great video! we are in the withdrawal phase ages 74-77 puzzling about which buckets to use each year; any suggestions on software, videos or books would be appreciated.

Great information. Could you create another that includes 20% declines in stocks and bonds that occurs on average every 10 years.

Always good content. I just retired and looked into Roth conversions but now thinking differently. If I divide my assets into 2 buckets, (which are about equal in total) tax deferred where either I or my heirs will pay tax and tax free or step up in basis where heirs pay no tax, which includes stocks, cash equivalents and life insurance. My tax deferred combined with SS and a pension is enough for me to live on even after paying tax for 30 years. So I will treat it like a salary as if I am still working and pay tax as I go. This will allow the non taxed bucket to grow so it becomes a higher % of the total so my heirs collect more tax free.

You covered exactly what I plan to do. 65 in 6 months. Filing single for the first time in a long time. Starting over. Fixed pension, convert as much to Roth as possible from 401 and willing to take the irmaa hit if it makes sense. Delay ss until forced to take it etc. lots of room left for 2023 to stay under the second irmaa tier, still room under first tier.

I need to watch a few times so I can absorb it

Great point on SS. I am delaying until 70 for the reason you mentioned. At least 15% will not be taxed for federal and zero in my state. So in the 25% bracket instead of 31% with state I only pay 21% for a 10% savings, thus I want to maximize that income and COLA.

Thanks Eric, very comprehensive!! Are there any conditions for single filers over 60 to commit Roth Conversions up to 32% (within Catch-Up Zone) and forego some ACA benefits to avoid SS Tax Torpedo and IRMAA penalties in the future?

This was awesome! Everyone who wants to DIY their early retirement needs to watch, study and understand every aspect of this. Sadly, most people are looking for the "one size fits all" answer and won't take the time to comprehend all the moving parts involved.

@SafeguardWealthManagement

2 жыл бұрын

Thanks Eric!

@josephj7991

2 жыл бұрын

Yes! All connected and make tangled web tax trap! Cascade into tax Nitemare !

Nice presentation. A couple of times you emphasized "tax savings" but the real criteria to optimize is 'after tax' account value or utility. Working on converting my IRA to Roth prior to SS.

@SafeguardWealthManagement

2 жыл бұрын

Thank you Ralph! I mean them synonymously. Understand the distinction but know that we care about after tax wealth and distributions ultimately.

Nicely done. I'm not understanding what "life expectancy factor" I would use if withdrawing IRA at age 65? The table I'm using starts at age 70 or I guess in 2022 72. Do I use the first year for each year until I reach my withdrawal year?

Most deductables on aca are more than 5000 per person. Bronze plans are 9000 per person max out of pocket. If you get the 5000 deductable plans are hundreds per person on premiums

NIce presentation. However, it would be nice to see more examples and your recommended action plan. Including an explanation as to why they should follow that specific strategy. Nice job!

@SafeguardWealthManagement

2 жыл бұрын

Fair point. I was trying to avoid making this a 3 hour presentation. I am planning on recording case studies in terms of optimal withdrawal strategies

This was very well done and aligns with my research into this topic. Some of my friends thought it was nuts for me to say I was delaying social security until 70. When I explained to them it was about tax planning, medical coverage pre age 65, and an overall decumulation strategy they started to get it.

@ecs1749

2 жыл бұрын

The caveat is - we don't know when we will "go"

@stephenwright133

2 жыл бұрын

@@ecs1749 You are correct. There are no guarantees in life. I can only plan based on what I know and what I’m comfortable with.

@samc9156

2 жыл бұрын

I am not sure I will wait until 70 for SS but watching this video and other ones by Eric has convinced me to delay SS for several years in order to at least convert a large portion of my 401K and IRAs to Roth. I knew I had a tax time bomb with the deferred accounts but I see the reality that converting a large portion now to take the tax hit without SS makes the most sense. Its especially important to convert now knowing that the tax brackets revert back in 2026 so its a definite tax increase at that time.

@robdupree5687

11 ай бұрын

​@@samc9156But aren't Roth conversions limited to $7500 for 2023? I don't consider that a large amount compared to the whole account value.

@godblessyou7376

10 ай бұрын

@@robdupree5687No, the amount you are referring to is the CONTRIBUTION limit to your Roth - not what you can convert into it. There are no limits to how much you can convert into it, but you have to pay taxes on whatever amount you choose to convert.

Would like to have seen. Numbers for us late 72 year old retiring folk...there have to be more then just me. Just found your channel. Thanks.

We only have two years before starting rmd,s and both of us are getting ss so I feel trapped!!! I wish I would have known about this clean up zone before I started social security

Waiting on SS is a gamble on if you live long enough for not. Are you willing to take that gamble? People seem to be passing much young in my generation that previous so it doesn't appear to me we are actually living longer. Maybe one could take SS at 62 and invest it and then if they die early, at least the heirs will get some of it that the deceased has worked all their life paying into. If you need it, then you at least can take less from your retirement savings since you are getting SS and still leave a bit to the kidos. Everyone preaches delaying and the government hopes you do because they figure you will pass away before breaking even since Life Expectancy is 78 for a male and break even will likely be more like 81.

Great video! I project out our assets, income, expenses and taxes for life. I am inflating the standard deduction and tax brackets with inflation. Do most tax advisors’ software do this? This makes RMDs look not as bad as I would have thought.

Awesome presentation

@SafeguardWealthManagement

2 жыл бұрын

Thank you Joseph!

you said to plan for what is going to happen in 25 years of retirement. How do you know what the tax laws/parameters are going to be in 5 years much less 25? Really interested in how you plan for that.

cannyou add a video like this if you must take social security disability (based on different ages, what accounts you should draw from and when)?

thank you for not talking so fast:)

Great session: Love you channel and the level of expertise. Is there a level of deferred assets below which roth conversion don't make sense? Say i have 850000 in deferred 401k with small pension say 32000 per year. I retire at 60. good chance i will stay in 12 % (or 15) bracket as Married filing jointly. Does doing a 40000 per year roth conversion make sense? does the growth in the roth conversion make the conversion strategy worth while? I have used some calculators that say it doesn't. What are your thoughts?

Please do some for peep w smaller amounts? So many are for >$1million what about those w

My plan has always been to convert part of my tax deferred 401k into a Roth IRA, live off money from my pensions and what is left of my t401k, let the Roth grow over the next 10 years on my conversions. I would then draw from Social Security at age 70, and live off my pensions, Roth, and Social Security, and hope that my t401k has minimal distributions at 72.

SS is protected to only pay 78% of its monthly benefits in the future. How do you see this affecting the concept of delaying SS?

I’ve got taxable, pretax, and Roth accounts. Which account should I take my “fun money” from? (fun money can be used any time…)

Could you provide a link to your "Putting the Right Assets in the Right Accounts" video you mention at 28:05 please?

Can one do Roth conversions prior to retiring ? Wonderful how you present this information.

@SafeguardWealthManagement

2 жыл бұрын

Of course! You can perform a conversion at any time

Excellant presentation. Isn't it true that money you convert to Ruth IRA can not be touched for 5 years (both converted amount plus subsequent earnings)? If that were true, how do you have optionality by "pulling money out of Ruth"? Are you assuming we have a large enough non-converted money in the Ruth account to cover the amount you need to pull? Thank you.

5th bucket is a pension.