Thank you!

I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.

@@GabrielAnthony-09 That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well

@@Elliot-Ivan My advisor is Victoria Carmen Santaella

You can look her up online

@@GabrielAnthony-09 The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?

You’re so welcome!

Ha, glad you enjoyed that and that it was helpful!

cayenne is orange. like the spice

I’m so glad!!

Thank you!

So glad it was helpful

I am a math nerd as well and 100% agree. For me, using the 24% marginal rate as the limits avoided the 30%+ brackets. Also, to get even more nerdy, i look at the net present value of differing tax patterns, and there are ways to push off taxes to later time periods without increasing the total amount of taxes paid.

Thank you!

I’m enjoying my money more at 77

You’re so welcome!

You’re welcome!

Oftentimes, yes. Every situation depends

I like New Retirement, but I prefer ours for Roth Conversion purposes. They’re both good though!

Wise 🙌🏻

There are no RMDs on Roth fyi. We do roth now anyways too. I keep some in pre tax to play with.

My wife and I are in the same age group. In addition to maxing out 401K , I have IUL’s, variable annuities for growth with 50% market risk and Growth annuities with 100% protection. I plan to move 401k money to guaranteed lifetime income so When RMD kicks in, I don’t have to worry about market conditions at the time.

It's not that simple for all. For those that have to go the Backdoor Roth route, this may (likely will) move you into a higher tax bracket. For those that are in the 22% tax bracket that will likely move you into the 24% tax bracket. Perhaps deep into that 24% bracket with Roth conversion.

I agree. Taking larger normal distribution during up time, put the money in CD or cash. prepay tax now for “ wishful” future tax saving might not be the best option.

As always it depends- here’s when NOT to convert: 5 Situations When You Should NOT Implement ROTH Conversions! kzfaq.info/get/bejne/odSIgdxlrpu2Zp8.html

Bingo the grass is not necessarily greener. KZfaq can brainwash making you believe a Roth conversion is great for your circumstances.

I absolutely would if it was that simple! It depends entirely on what you want to spend, how much of your account is tax-deferred, estate goals, health, etc...

@@earlyretirementari you’re absolutely right, there are so many factors to consider. I’m thinking I really need to get us to a financial planner soon as we’re projected to be at 5.8 m by 58/60 with only about 600k in after tax. My overall goal is to build generational wealth as we’re already 100% debt-free (currently ages 43/45 with investment portfolio now at 2m). Thank you for taking the time to respond to my post! I’ve been binge watching Root content lately 😄.

@@irisflower9030 you’re so welcome! Glad you’ve enjoyed it

⁠​⁠@@irisflower9030 At a 10% return and ‘no’ additional contributions, I have your portfolio at $8.35 million when you plan to retire. Fifteen years past that, when RMDs kick in, it would have grown to $34.9 million if you didn’t take any withdrawals. Looks like you’ll have some substantial “generational wealth” to pass on! You certainly need some financial/tax guidance. Best wishes !

I knew you had been requesting it ;)

@@earlyretirementari Plus I got the extra cyan chuckle!

@@gizmobowen HA!

Using a 401(k) or IRA is a valuable strategy for retirement planning, providing potential savings growth and tax advantages. While the stock market is promising, expert guidance is essential for effective portfolio management

Opting for an inves-tment advisr is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 85% since 2022

How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?

Sharon Marissa Wolfe is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.

I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look her up and send her a message. You've truly motivated me. Thanks.

403(b) and 401(k) are with same employer? Ask if you can move the 403(b) to 401(k).

More bang for your buck when you convert at a lower price!

Of course.

It's not that hard. Obamacare is based on gross adjusted income and number of people in your household. Just Google it or go to the ACA website. It'll tell you the maximum dollar amount you can show on your tax return. From there you can decide if converting is a good idea or not. Remember, you want to look poor on paper. Good luck!

Watch this! kzfaq.info/get/bejne/bJ6EZth9ybm7aXU.htmlsi=O9dIHytR9gfWk22s

The linked video is a good video, but it talks about the exact same thing as this one. It didn't answer the question of subsidy for Obamacare.

Exactly my question. I'm retired and wife is self-employed and semi-retired earning ~$35K. We're in our early 50s with two kids still in college. We will be moving to an ACA healthcare plan in 4 months. If we do Roth conversions we'll pay the income tax and we could pay an additional $15K for healthcare due to the increase in ACA premiums.

@@BrianW211 So the Roth conversion will backfire on you in regards to the ACA premiums because it will inflate your income? Is that correct?

Not this software.

@@earlyretirementari Seems like something a user with "earlyretirement" in their name might want to include and even emphasize. 😀

@@BrianW211 it is factored in for all of my clients and we do all the planning around it to optimize. It’s just not in THIS specific software!

@@earlyretirementari Bummer. I just got the e-mail that your Early Retirement Academy gives access to software, so I guess it's not really what I'm looking for.

@@BrianW211 I’m so sorry about that! The software I use for this planning for my clients is Holistiplan.

Probably not saved. Invested. Huge difference. As in the S&P 500 has doubled 3 times plus some since the market bottom in 2009 and savings went nowhere. Were they in 12% their entire life? (I don't know but most change brackets all around during a career.) Currently a couple married filing jointly (the only scenario I know) might make $145,000 gross income, subtract $25,000 into 401k, subtract standard deduction for an AGI of about $90,000 and be in the 12% bracket. The more costs you avoid, the more you can accumulate. The more you accumulate, by investing your money can do the work. But you have to work at it and get started now. That's why accumulating $100,000 is so hard - you have to work for almost every penny. Say it takes 8 years. If you keep it up for another 8 years you'll likely be closer to $300,000 than $200,000 - you had to work for half that gain and your money did the rest. Most likely by now you are making more, so maybe it only takes you another 4 years to accumulate $100,000 - after another 8 you will have added $200,000 you worked for, but the total could well be nudging up to $1,000,000. Another 8 years you'll be at $2m. There you go. (It doesn't go that smooth and regular in real life - I had some unemployment, took pay cuts to get a new job and avoid moving, I lost more than 50% in 2000-2002 and another chunk in 2007-2009 but the long-term average held, and does better than the prior illustration.) If you delay, you skip the ending, not the beginning. It's critical to start accumulating and investing today. But to accumulate, you have to want to. Think sacrifice. Try ideas: Do not escalate your lifestyle when you get a raise, instead put more into your investments. Choose to live somewhere with low to average cost of living, married filing jointly to a partner for life might double your income but not double the expense, kids you'll send to public school not private schools or summer camps but swimming lessons at a community or neighbor's pool, buy 1/2 the house the bank would lend, drive 10-15 year old cars with no car loans, use a prepaid cell phone plan with minimal data, no TV subscription, eat out only 2 or 3 times per month, date night usually free or cheap, vacation is driving to visit family or friends or camping in a tent (and again, not eating out). Learn to do for yourself as much as possible rather than paying someone else to do what you can do, with the easiest example being cooking for yourself. And realize how much it costs you when you spend - not the price tag, but the opportunity cost. In your 20s, 80x the price tag. In your 30s, 40x the price tag.

How?

Sorry to hear that

You can convert money from an IRA to Roth regardless if it’s a loss or gain. It often makes sense to do so when markets are down so when markets recover the growth is tax free. Only certain plans allow for “in plan conversions” from 401k to Roth 401k. Ask your HR. The timing should be discussed with a financial advisor for your specific situation to optimize.

@@earlyretirementari thanks…

Exactly. Some people actually want to draw from their Traditional IRA, 401K (or both) from age 59 1/2 until *potential* RMDs kick in, and enjoy that money. That’s why it’s important to have several types of accounts that each serve a specific purpose. I doubt that I’ll ever have to do a Roth conversion, because my tax-deferred accounts aren’t massive, plus the fact that I have a Roth IRA, a taxable brokerage account, HSA, high-yield savings account, cash, etc. I also plan to take Social Security at 70.

Agreed. I mean if they start withdrawing soon, they won’t have a ton of RMDs above their needs. There’s also charitable deductions. I don’t think filling up the 12% tax bracket is a bad idea, but I wouldn’t sweat over it. If I’ve got that much money, I don’t care if the government gets some.

I have another $500k example on the way!

Regarding the massive accounts, the major point of moving funds to Roth is to avoid the greater taxes when RMDs push you into a higher bracket like 32%. If you have a million, you don’t have to worry about that as you’ll never get pushed that high.

Agreed.

Here ari-taublieb.mykajabi.com/early-retirement-academy

Good job. Roth is the best thing going. You don't have to worry about IRRMA, RMD taxes, SS taxes, widow tax trap after you are gone, capital gains taxes, estate taxes, and any other tax they come up with in the future to pay the 35 dollar us trillion debt bomb.

Now that’s a conversion!

@@cutehumor can’t escape estate taxes if it gets too large. Which everyone predicts. So I’m starting gifting to the kids now. And helping with getting a home and eventually pay it all off. Once you get so much. You can’t gift it away fast enough later on when it’s double digit millions. Net worth $10 million now. Just retired and I only made $32 hour when I left. So anyone can do it.

May i ask how many years did you work? ​@@mlee1308

great testimonial.

Yes kzfaq.info/get/bejne/nrhjhraenpymgJc.htmlsi=_vKGtJwyCNYi01HE

@@earlyretirementari thank you

I’ll give you the name of my doctor 😂