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I saw that the IRS made some changes to allow for a 5% return rate to calculating your annual distribution. This makes it pretty simple. It is basically the same % I was planning to use if I make it to 55.

Is it possible to withdraw more than the calculated amount? What happens if the account depletes before 59.5?

Great video as always. Refreshing to hear you say you may not want to convert unless RMDs cause you to take out more than needed. I will add to that to say don’t convert if you don’t need more tax free income unless it’s for your heirs. I already have a large life insurance policy, brokerage account and house all that will go to my heirs tax free. I can live nicely on my SS and IRA without touching anything else. Yes my RMDs may be $200k+ in 20 years. Today I need $10k per month after tax so with inflation $200k plus SS pre tax sounds about right without much of a cushion.

Very well explained. When you say you can't alter (take out or add to) your IRA while you're taking distributions, that doesn't include the money it's making while being a self directed IRA right?

Return of +5% is good enough. Again don't be greedy or you will be disappointed in the long run. Be moderate ❤

Thank you so much! 2 questions. 1 I have 401k in 2 different companies, do I need to combine them into one for 72T distribution? 2 is the withdrawal age starting from your B day or year end? Eg, birthday on 08/01, do I need to withdraw before 08/01?

What Account balance do you use if you are investing 100% of your money in stocks and the balance changes daily? Assume you have a balance of $1 million in the 401K, are you able to calculate based on the balance of $700k?

You made some really excellent points about bridge accounts. I was falling into the tax efficiency trap when deciding on what to invest in for my bridge account. I will have to rethink my plan to better take into account the potential risks you mention. Thanks!

Great information. Thanks

Awesome job my man!

This really helps! Thank you for the detail

Excellent content.

Thank you, this is very helpful info. Two questions did come to mind from listening to this... 1) If one IRA is structured for 72t, and a second IRA is not, can that second IRA be tapped into seperatly (if some additional money is needed) and pay the 10% penalty plus taxes on the withdrawals that were taken from it, or will this effect the overall 72t and penalties would be incurred accross the board? 2) (similar) If one IRA is structured for 72t, and second IRA is not, can that second IRA be tapped into seperatly for medical premiums and/or medical overall ? Thanks again! Regards, Steve

We experienced the pinnacle of our era in a flash. Just like Rome, the corrupt administration will bring this nation to an end. My condolences goes out to those close to retirement and may be worried about pension, surviving the rising cost of living alongside poor regulatory policies

Thank you James, just saw 1 of ur podcast. Valuable information

Thank you so much for this video!! Appreciate the person that submitted such detailed question and you for giving us such a detailed answer ❤

A married couple At age 70 with a 1.3 million 401K account and SS of $5000 combined what would the max amount you could take out to keep under the 12% to 15% taxes on it

With that much money , how on gods green earth there NOT retired yet to really enjoy life while There fairly young enough to do things. When your in your 70’s your not Going to be doing a lot unless your in too top shape. You don’t need 2million to retire…

They already fucked up by still working and not retiring earlier.

Hi James. Love the channel & your analysis. In this case their filing status is married filing joint. The real tax hit is if & when one of the spouses die. That married filing joint status becomes single. That's a tax increase that also needs to be taken into account. The 40lks/Ira's RMD's will still be the same %'s but based on a single tax filing.

I don't get why this is such a big debate? Even if you are 37% wouldn't you rather pay it up front on a smaller amount or pay it with RMDs at retirement?

Unless you are in a really high tax bracket now and will be in a really low tax bracket at retirement you are best going with a ROTH or taxable non retirement account. With a conventional 401k, IRA, and so on you will pay full tax rates on all money so up to 37%. With a ROTH retirement account when you withdraw you will pay 0% taxes on all gains. With a taxable non retirement account you would be paying long term capital gains which for most people will max out at ether 0% or 15% depending if you withdraw under or over $42k a year if single and $83k if married. You will only have to pay the top 20% $460k if you are single and $517k if married which most people will never see.

Always max out Roths, consider Roth rollovers from 401k if you are going to get NAILED with taxes when forced with mandatory withdrawal from 401k's at 72. The tax man sucks.

thanks

Great podcast James! Hats off to Ari as well! 😊

Great information By your numbers of how much you pay back in total over the life of your loan definitely makes me glad I'm renting a very affordable apartment and investing the difference. Home ownership just isn't my goal/choice

You summed it up really good at the end. While I am a big believer in one goal one portfolio, when the time comes for me to need my Social Security bridge account I will take that money and make it mentally a second account. It will be a second account because it's a different goal. This is where I 100% agree with you these funds need just to match your liabilities. My 6 year Social Security ladder will definitely be all and fixed income.

As a retiree I take a certain amount of income from my municipal Bond and corporate bond fund. Certainly they have gone down in value, but also my income is up considerably.

Great job on a complicated subject It is extremely important to pick the bond or bond fund that matches your goal in your portfolio

I want to play video games and take naps.

Thank you for great video. How do I figure out what it is that I would like to do in retirement?

👍👍👍👍👍👍👍 😻😻😻😻😻😻 💯💯 💖 💖 👏👏👏

Cheapskate James in Texas should go to a financial advisor and provide enough details. Meaningless analysis with so little info.

It’s really hard NOT to invest when VTI is down 25%. The budget is getting a little uncomfortable and my spouse doesn’t like it!

Great information and you not only teach us but you teach us how to think about financial matters. I do wish we had the details it would have made it a whole lot more interesting but still was great information

I am 72 this year and we are getting hit by the tax bomb. James does a nice job, but he really cannot answer this question. Karen should establish a relationship with a tax professional and do some specific tax planning.... Also, James, not every retiree wants to spend to the max. There are any number of reasons where it is a good idea to hold some back.

I'm glad I didn't convert my Traditional IRA to a Roth IRA. In less than two years, I am going to start making QCD'S.

I don't think the last two years are any worse than 2000 to 2010 also known as the lost decade

Thank you for answering my question, that was extremely helpful! If someone wanted to begin investing in stocks and precious metals where would you recommend to begin? Mutual Funds? ETFs? Gold Coins? Goldbacks? Have you heard about Goldbacks? I know that you advocated for stocks over gold in the podcast and I think that is probably where I will go, but I was still curious if it was good to diversify with precious metals.

Great information

Of course. You hit it on the head. This is a life style issue more than a financial question. Sending you a question is fine, but the writer has to figure who and what he wants to be...

Great video But my advice for someone asking this question with 2 million spread across retirement/ non retirement accounts "Don't let the tax tail waive the investment"

I am a more 70 30 or even 80 20.

Great information especially by stating first this doesn't apply to everyone. RMDs are often touted as a big problem in general for everyone.

This was an excellent episode. I think you should fold these podcasts back into your main channel since there’s a lot more subscribers. Another reason to have equity mutual funds in a Roth is if there are dividends and capital gains, those will also be tax free, and may also be more total $ than bond returns.

This is one area I definitely failed in. But not for lack of effort

Recent bias is definitely the downfall of many people trying to invest

Remember James, over the long haul. Let me try this again, over the Long haul we are all dead. When you are entering into retirement you have to have a reasonable visibility of where your income and money are coming from. The theory is fine, but life happens and that is what you need to plan for. Otherwise, you will not have a happy retirement.I enjoy your podcasts.

Hey James, I love your videos and podcasts. It must be weird for you to see tons of comments on this video promoting someone who supposedly gets astronomical returns. That's not what you're about and I'm confident the people who watch you are not going to fall for that.