Which Account Should I Withdraw Money From To Retire Early?

Рет қаралды 5,847

Күн бұрын

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In this crucial episode, We do deep into the most important strategies for optimizing withdrawals in early retirement.
We'll go over which accounts to withdraw from first, how to minimize tax burdens, and the significance of a long-term tax planning window.
With detailed examples and real-life scenarios, this video provides actionable insights for anyone planning to retire early.
Whether you're considering Roth conversions, managing brokerage accounts, or planning for healthcare expenses, this episode covers it all.
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Time Stamp
00:00 Introduction
00:30 Importance of Withdrawal Strategy
03:00 Example Scenario Introduction
04:00 Viewer Comment Highlight
06:00 Explanation of Different Accounts
08:30 Where to Pull Money From First
12:00 Strategic Roth Conversions
15:00 Tax Planning Window
18:00 Capital Gains and Pre-tax Balances
20:00 Projected Future Tax Brackets
22:00 Detailed Example of John
25:00 Conclusion and Final Tips
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Ari Taublieb, CFP®, MBA, is the Vice President of Root Financial Partners (Fiduciary) and host of the Early Retirement Podcast.
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⚠️ "DISCLAIMER:⚠️
All content is not to be received as financial advice, and each individual should consult with their dedicated financial planner, tax preparer, estate attorney, etc., before making any financial decisions.
This video contains content I created and got permission from its creators to use. This Channel DOES NOT Promote or encourage Any illegal activities; all contents provided by This Channel are meant for EDUCATIONAL AND ENTERTAINMENT purposes only.

Пікірлер: 35

@AmeliaJohnson-qp9uw 5 күн бұрын

I am in my early 60s and retired at 53. Lots of people gave me pushback because they had difficulty grasping the concept of not working if you don’t have to. I looked at my life as stages. I earned everything I have now through a lot of hard work, but I owe it to myself to “stop and smell the roses” in my final stage of life. In my case I left the country after I retired and live in Latin America. It allowed me to get away from all the negative things happening in America while appreciating my new environment. I have yet to meet anyone who regrets retirement.

@LukeJackson-q2v 5 күн бұрын

Nice way to retire. For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement fund has grown way more than it would have with just the 401(k). Haha.

@kaitlinFunds 5 күн бұрын

I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.

@kaitlinFunds 5 күн бұрын

Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.

@ReadyAF1 5 күн бұрын

Good topic. Thank you. Followed the commentary but this is where a chart could be useful.

@markb8515 5 күн бұрын

Thanks Ari, this was a very informative vidoe!

@theladder06 5 күн бұрын

Excellent educational information-thanks 👍

@SusieCraig1 2 күн бұрын

Great video Ari! Super helpful information. I've been watching all of your videos and signed up for new newsletter recently. Everything is awesome but if possible, I'd love to see more scenarios for single, unmarried people like myself as it relates to taxes and retirement. Thank U!!!

@earlyretirementari 2 күн бұрын

Thanks! You may like this one: kzfaq.info/get/bejne/h9KgqdNnz7fGmnU.htmlsi=3MGh3xbMMCRSN6z5

@patrickoconnor2547 5 күн бұрын

Should have used a scenario retired at 55 and on ACA insurance. This is where most people are situated. That would change many strategies. Good content though but using ACA changes everything.

@user-tb7rc1uj5u 5 күн бұрын

Me!!

@Jl-620 5 күн бұрын

His example and reasoning can also actually apply to ACA, as you usually may need the brokerage account first to keep your MAGI low to get the subsidy. This competes with Roth conversions so, depending on your situation, you will either forego Roth conversions while on ACA or it might make sense to forego the ACA subsidy now to protect you from much higher taxes due to RMDs in the future, or even alternate each year. You need to have a long term projection rather than making a decision only on what will help you for this year or the next three. It is also not an all or nothing decision, since you can convert some, harvest some, and use some cash, while still keeping your MAGI low enough for ACA, if you can produce this way enough funds for your expenses by pulling from different accounts.

@patrickoconnor2547 5 күн бұрын

@Jl-620 good explanation.

@user-tb7rc1uj5u 5 күн бұрын

@@Jl-620 exactly! Well explained! Excellent!

@KB-jw8jf 2 күн бұрын

Very true but there are so many different situations (no cookie cutter) as he always says. I retired at 61 but had Roth and Roth 401k along with Brokerage and pretax 401k. Split it up through the years to allow for different tax situations. Moved the Roth401k to Roth and use dividends and interest from that and brokerage and never touch principle or the pre tax 401k. Allows for lowered MAGI.

@user-xh3zm7vl1k 5 күн бұрын

If you don’t have a brokerage acct but have 400k in Roth, would it make sense to live on some Roth in order to do Roth conversions (of 1m ira). Everyone says spend Roth last but I never see examples where it gets spent!

@user-tb7rc1uj5u 5 күн бұрын

Im in this situation but on a 600k scale! Only 100 k in an ira. 58. It has been my mission 8k a yr conversion to Roth for 6yrs now. I hope it paid off. 59 1/2 next April. 🎉 Cash helps!

@lindagurnish7540 5 күн бұрын

Any videos on finding health care . Between retiring and medicare

@earlyretirementari 5 күн бұрын

Here you go! kzfaq.info/get/bejne/eN-bqdKpr6u7d6M.htmlsi=f02mz-VOG_dUxgGn

@BF2021-kf8xz 5 күн бұрын

What about couple 65/66 with $2M IRAs, pensions, and small brokerage ($100k)? I’m thinking pulling from IRAs unavoidable plus conversions aren’t appealing due to our fixed annual income of around $120k.

@alk672 Күн бұрын

This is such a weird non-explanation. Ok so I fill the 0% LTCG bracket with tax gains from the taxable account - great. Then how do I do Roth conversion? If I do that - that would be taxable income, so I'm stacking it underneath my LTCG, correct? So now it's taxable? What are we doing exactly?

@dforrest4503 2 күн бұрын

I think I want to pull from my 403b and 457 first, because I want to not leave anything to heirs that would have a full tax basis. If I have some left in that account, I’d leave that to charity, and other accounts to family who won’t have to worry about taxes.

@michellegreen1072 2 күн бұрын

What is your tax rate and what is their tax rate? Ours are 22 and 15. Our daughters is 15 and 0. They can get their tax money after we are gone. Lol.

@stevecarroll5011 5 күн бұрын

Do Roth conversions still make sense if you are a widow or widower?

@Travlinmo 5 күн бұрын

Age based and income based decision. My goal is to set myself/wife up so if one of us passes we are not hammered by the widow tax issue. You have to make do for yourself because if you both survive to the same ripe old age, you just gave Biden money.

@cdub357 5 күн бұрын

Federal Employees with TSP but no Traditional IRA: Move from Traditional TSP to new Traditional IRA and then to Roth IRA.

@leehaskins307 4 күн бұрын

I don’t understand how u say the first 94k is tax free? Why ?

@SirManlyPowers 4 күн бұрын

For 2024 if your AGI is less than 94k and you are MFJ the LT capital gains tax is 0%. Therefore you can have ~30K of ordinary income and 94K of LTCG. The 30K gets a deduction and the remaining LTCG gets 0% tax. Therefore- the total tax is 0%.