Good stuff here, man. Enjoy these segments. Interesting to see all the knobs and levers you can pull to optimize the accounts. Keep up the good work!

Thanks Dustin love the case studies learn alot from them

4:55 Withdraw from taxable accounts first, then from tax-advantaged accounts 7:23 Defer filing for Social Security benefits as long as possible 7:57 Account for lower spending later in retirement 9:00 Stress test 11:11 Roth conversions before RMD

Thanks Justin! Love this scenario! I’m 56 in January and will retire at 60 . Great videos. I may be contacting you then or sooner. What about social security or pension?

Keep doing these scenario studies. They are fantastic.

As someone who has made almost 200% returns in a little over a year with very little diversification, I’d have to disagree! Diversification protects wealth but if you have such a high conviction in a single stock, Retirement withdrawal rate with $1 million. Just search her name Kyle Holt Karens online and check out her website for information concerning her retirement services, you can get her mail on there

Lol, Charlie apparently doesn’t need insurance or medical costs...

Best time to do Roth conversions in my mid 60s. Was going to convert when our combined income was at a lower tax rate. Hopefully a dip too. And if I do a conversion, can my wife and I contribute the full amount to our Roth without increasing our income. Got to stay in the lower tax bracket. Possible increase in RMD taxes scares the hell out of me .

10.9 percent this year, your the 🐐.

Also, if his retirement budget is 4200 per month, why is he withdrawing 80k?

How does it look like in real life? Ok, my wife and I have been lucky(?). In the past 5 retired years, we have withdrawn 3.5% of our saved money per year and not seen a decrease in our life style or our investments. (yes there have been ups and downs but so far it has recovered and then increased) Our income has remained near 88% post retirement amounts, as we were saving, decreasing debt with the other 12% of the pre-retirement income.

the 4% rule is by far the minimum you can withdraw. Between dividend paying stocks and on average stock market appreciation in the past 40 years you could safely withdraw 8%-12% and you portfolio will continue to grow. Adjusting also for down markets where as they say you can tighten your belt a little is something no one is talking about either. Years in a down market you can just use your dividends and not withdraw any capital. You need to be flexible.

His $5500 per month will drop when he goes on to MediCare.

Did anyone gather how Dustin got an 8% withdrawal rate from $4200 of monthly retirement expenses? How did the annual withdrawal jump to $88,800? $4,200 a month would equate to $50,400. Doesn't make sense... $88K would mean about $7,400 of monthly expenses. Lower in the input fields it says his current annual salary is $88,000. Maybe that was the mistake? I'm not seeing where his mortgage is paid in his "retirement expenses" or the effect of it going away in a few years either. There's a lot going on in this planning software and it isn't very apparent or easy to understand. He's also not withdrawing 8% of his $1M investment because you're allowing social security to kick in on top of his savings/investments. That skews the math considerably. The actual withdrawal rate on his $1M is equivalent to whatever his monthly expenses are minus any social security benefits. For a portfolio of $1M and monthly expenses of $5000, getting social security payments of $2000 would reduce his actual withdrawal rate from 5% to 3% not including any tax considerations. Much safer.

Question: why are his future expenses bouncing around from 80k one year to 66k the next, to 72k--shouldn't this be steady when you evaluate a plan?

I like the speed of your VDO. Just a comment: It doesn't make sense to end up with 2 mil at 90 years old, does it?

why use taxable first, that keeps coming again and again. instead keep taxable 60bonds 40stocks and use it as 6-12months buffer. use tax deferred first than use taxable than roth. if tax deferred goes down by 30% that is an opportunity to roll over tax deferred to roth Ira. no escape in paying tax on tax deferred!

What site is this?

How can we have access to this software? We have 4 Rental Houses (paid for) as Income to go along with my Wife’s 401K! We go aggressive on the Investments since we have the Real Estate as a chief Income!

What is that retirement draw down app? Nest egg? Where do I find that?

Not one mention of RMDs on those tax deferred plans. All that 4% withdraw rate that people plan for goes bad real fast when the government forces you to withdraw far more than that. If most of your retirement balances is in an account subject to an RMD (401k/roth401k, IRAs etc) you have to account for Government mandated distributions which START at 4% and increase annually. So for a lot of people who are good savers, but in the wrong types of retirement accounts, they end up having to withdraw MORE than they need just to satisfy the tax man. Then the issue can lead to how do they figure out how to save or invest that extra withdraw amount (assuming it wasn’t eaten up by taxes to begin with).

You made an important statement/question near the end - "hopefully that helps you there". Unfortunately no. What I'd really like to know is what my withdrawal rate should be if I have a million dollars, which coincidentally, is the title of your video. Fast talkers who direct and redirect constantly don't help anyone. Most people watching this know the answer is not going to fit everyone perfectly, but shoot for 75% and the rest will figure it out. Sit down, get off your KZfaq stage, and just be yourself.

How does he spend $5K plus on health care per month? How is that possible? Maybe he should consider either moving to a country with cheaper but still good private health care or a country with free health care?

Too complicated. I want to give two relatives $3,000 a month till they die. They are 63 & 72. How much do I need to put in an account to cover them?

Why not invest whole mil in dividend growth stocks with 5% ave yield; that's around 4k/mo without worrying about withdrawal rate?

How timely - valuable walkthrough. Was able to follow your pace - keeps my attention :)

Is paying off the mortgage accounted for?

Charlie better never need assisted living.

Yeah, that was too fast. I would benefit from that being done again a little better. There was no reason for the video to be short it could have been longer.

He is starting with 1 million. 4% of that is 40,000 dollars/year. Unless he has another 40,000 dollars coming in from other sources, he cannot afford to take more than that out, and have his money last. It’s not rocket science. Sanjosemike (no longer in CA)

That was too fast to see how the Roth conversions and taxes on the qualified accounts that get converted. I did not see how much he was converting each year. Is he in the 24% tax bracket during his conversion years for 6 years. Before age 70. Spend more time on this example showing him converting to Roth before RMDs or the best mix of conversions with some rmds and that effects his Medicare. ERMA will be expensive with conversions and the rmds. Means testing will have a big effect on his expenses so will future tax hikes on Rmd’s and his exposure to taxes on his social security if he takes it while doing conversions or suffering from RMDs. I got very little out of this example because it was to brief.

Justin, thanks for the modal. appreciate if you can modal something for FIRE community. 1.2M in assets 30% non retirement accounts. retire at 53. 60k / year expenses

$5500/month for health care? Is that really what it costs?!?

Back off on the caffeine dude. All over the place.

You'll spend less as you get older and can't do as much as you can now. I learned something else when my mom went into assisted living. If you have a million in the bank, or are flat broke, you get the exact same care. My sister and I were paying $1000 a week. Her neighbors were right across the hall and it didn't cost them a dime...:)

My plan is to not withdraw, but live on dividends and interest. After I die a few years of economic collapse and hyper inflation will take care of the value. Inflation and high taxes is how governments steal wealth from investors and savers.

Slow it down for us dumb dumbs lol

His initial plan of having 770k at age 90. 770k Should be good unless the world ends!

1 Million. And this is relevant to what percentage of the people? 2 percent....5 percent? How about the majority of people who may have the three legged stool... ie, pension, investment, social security but one leg is very weak as in investment. Maybe someone only has $270,000 put away and are not sitting on a million dollars?

I really want my portfolio to be up to $100,000,000 before a year, I guess it can be possible 😀

Way too fast.

Why do most of these wealth managers sound like used car sales men using smoke-n-mirror software to sell their services.

Don't like fast talking salesmen...

This is a "Cluster", assumptions are stupid, $600 a month charitable? $850 for partying money? An idiot put the assumptions in and then you run with the ball. Makes no sense at all. You actually have his expenses rising when he turns 70? WTF He deferred SS, get a huge monthly payout by waiting and your software has his withdrawal going up. Buyer beware with this planning. You know what they say right junk in, junk out and your a professional going on You tube with this.

Millionaires are watching KZfaq videos?

1 million nest egg at retiremeny may be too low. Suzir Orman recommends 5 million.

Why not increase your chances by trading cryptocurrencies?