I’d be retiring/working much less in 5 years and curious to know best how people split their pay, how much of it goes into savings, spendings or investments? I earn around $150k per year, but nothing to show for it yet.
@Castro-worldbravest8 ай бұрын
you should consider financial planning, never can tell what the future holds
@M.Morgan8 ай бұрын
Money advice is subjective, what works for you may not work for me, but it's always better to plan. I'm quite lucky exposed to personal finance at an early age, started job 19, bought first home 28, got laid-off work 36 amid covid-outbreak, and at once I consulted a financial planner to handle growing my finance. As of today, I'm only 25% short of my $1m goal after subsequent investments.
@Skye-xl5lx8 ай бұрын
@@M.Morgan bravo! i'm 34, inherited money from a childless relative, traveled overseas and got married to a girl almost my age, only issue is how to preserve and grow my reserve in this shaky economy, could you be kind enough with your advisor info pls?
@M.Morgan8 ай бұрын
Can't reveal much, the advisor that guides me is 'Katherine Nance Dietz' a renowned figure in her industry with over two decades of experience. I'd suggest researching her further on the internet, she has a noticeable profile.
@LupeBaptista8 ай бұрын
@@M.Morgan thank you for putting this out, just copied and pasted her full name on my browser, spotted her site easily and was able to send my message across, she seems impeccable..
@rickbackous10419 ай бұрын
Waiting until 70 increases your retirement success rate to 99%. Of course, it does. You're only going to live like 2 more years. I used to be subscribed to this channel and watched it pretty religiously, but I found I don't really agree with anything said. I unsubscribed a long time ago but for some reason he popped up again. My strategy. Take SS as soon as possible. You can't leave your SS check to your kids. Annuities next. if you have them. The longer you take them the better chance you have of winning that game. Taxable IRA next. To keep your RMD from getting out of hand when you turn 72. Individual account next because you can balance out gains and losses and adjust what you take accordingly to reduce taxes. Roth last if you need any money to balance the year out, again to reduce taxes. That's just me.
@situated49 ай бұрын
Thanks. This is helpful.
@Marl-hj8hh9 ай бұрын
Love this. Thank you.
@DavidMercen-bv6ls6 ай бұрын
Excellent videos. Great job and great explanations. Superb.
@chrisnettell25489 ай бұрын
With the amount of money this example shows, I don't think they would be paying 20% tax.
@sergiosantana46589 ай бұрын
100% If you are bringing in $6400 monthly from which $5400 is social security you will have a 0% fed tax bill , (mfj)
@sergiosantana46589 ай бұрын
$5400(social security)+$1000.00(pension)=6.400 monthly x12 months =$76.800 Annually with a 0% fed tax ,not the 20% mentioned@2:28
@micheleyoungblood9 ай бұрын
How do you get a 0% federal tax on $76,800?
@sergiosantana46589 ай бұрын
@@micheleyoungblood Because only $6400 of social security is subject to taxation . So if you add the 12k of pension with the $6400 of social security for a total of $18400 of taxable income ,which will offset by the 27k of standard deduction. Hence a 0% tax bill
@dancarroll9279 ай бұрын
How in the world does $8000 per month result in a 20% effective tax rate?
@cato4519 ай бұрын
Need to find a balance between all accounts.
@jessefletcher91168 ай бұрын
on the taxable investments I understand that there's a way to avoid cap gains tax altogether, for MFJ in 2023 if taxable income is below $89,250 then cap gains are taxed at 0%.
@everydayadventure666 ай бұрын
What about early retirees and the consideration of health insurance subsidies? Does that change the sequence of withdrawal strategy?
@DY-Hak19 ай бұрын
It all depends. When we pass, our investment accounts will get a step up basis when our kids inherit them. So if our goal is to pass our investment accounts to our kids, it's probably best to use the traditional IRA first.
@micheleyoungblood9 ай бұрын
IRAs don't get a step up basis. The brokerage account will get a step up basis
@Wayneman508 ай бұрын
What if you have no heirs?
@resterAnonyme8 ай бұрын
Does paying taxes from an IRA before age 59 1/2 during a Roth Conversion cause the 10% penalty as opposed to paying the taxes from a different source?
@davidcummings57119 ай бұрын
Too confusing to follow. Need some graphs, charts, or other visuals. As it is this is just a verbal mishmash. 😕
@situated49 ай бұрын
The whole system is rigged to be as confusing as possible to benefit accountants, tax preparers, politicians and tax attorneys. It's absolutely ridiculous and depressing.
@rocqitmon8 ай бұрын
I rewound four times because I'm used to the typical vlogs that give chart analysis. If you're talking real estate or other investing, it's less complex. Tax decisions based on multiple income streams needs charts or spreadsheets.
@livingontheedge86809 ай бұрын
Burning a $50k brokerage account before a $900k tax deferred account DOES NOT net them $500k+ over their retirement.
@daw77739 ай бұрын
It depends on the rate of return and dividends earned on the 401/403B accounts. Retire at 65 use 5 yrs of brokerage accounts, social security and pension amount. Delay withdrawing 401/403 until 70 and the $900,000 accounts gain average 8% per year compounded with dividends. Assuming dividends 2-3% added each year compounded/reinvest dividends. The 401/403 accounts could earn over $500,000 by age 70.
@livingontheedge86808 ай бұрын
@@daw7773 In the example given, the brokerage account had a total balance of $50k, essentialy 1 year of funds before exhaustion of said brokerage account.
@sharky61288 ай бұрын
IT WOULD HAVE BEEN MORE HELPFULL TO LIST THE SEQUENCE OF ACCOUNT WITHDRAWALS AND THE SUCCESS PERCENTAGES SO THAT YOU COULD VISUALLY COMPARE THEM AT THE END. 🤔