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This is the importance of having after tax accounts, like your brokerage account, Roth IRAs, and savings. I retired at 60 and live off of these assets which qualified me for a huge subsidy for the healthcare. So instead of paying the 10 K a year that you mention, I only pay 1K per year and that’s for a really good Blue Cross Blue Shield plan

Hi Jacob, New subscriber and I am sharing my story. My age is 55 and I have zero debt, 110k in the bank, 35k NVDA shares, 401k $270k, IRA 145K and 2 houses in Bay Area with zero mortgages. Just got a Mercedes SUV as my 3rd car. I started saving after marriage only after marriage but will all this be enough to retire?

The title is “how to pay taxes” not where the taxes come from, ie, from the converted amount or personal funds. There are no steps enumerated as to “how” one gets the funds from my account to the US Treasury Dept. if paying from personal funds.

These days, it seems strange. The value of the US dollar is declining due to inflation, but it is increasing when compared to other currencies and commodities like gold and real estate. Because they think it's safer, people are moving to the dollar. I'm concerned that my retirement funds may lose value due to the growing cost of living.

Real stuff starts at 2:20.

The title has "I'm 60" but your video is based on a 67 year old.

She needs a pension, like an extra 3000 a month

Yup, that $642K in pre tax 401K is over valued in this analysis. My analysis always right sizes anything pre tax, meaning, I would drop that value down to $450K-$500K. That tax of $120K-$150K (depending on bracket) will grow to a whopping $400k+ in taxes as gains grow in this great market. Don't forget the ensuing RMD that comes in the 70's. I would strongly suggest converting 100% to Roth while they are younger. Many want to believe they will pay less in taxes later and spend years (34 for my dad) paying thousands and thousands in taxes, then a final RMD grab upon death.

Does the IRS consider a Trad IRA Trustee-to-Trustee f/b/o check the same as a transfer to a separate entity for my Trad IRA,? Is this also considered a Direct Rollover, meaning is a transfer and direct rollover interchangeable concepts? I understand that a direct rollover (aka transfer if I'm correct) is a non-taxable, non-reportable event per the IRS if completed within the 60 day period. Please feel free to correct anything I'm misunderstanding. Thank you so much for your informative video!

Didn’t realize about that additional penalty but makes perfect sense. Great video!

I don’t understand how there is a 86% success while also ending with the same amount of money. What if you want to end with nothing. Would it be 100%

Thank you for this Video. My numbers are almost exactly like the example. I'm one year younger and my house is worth more but the other numbers were right on. Very helpful.

What brand shirt you have on? I like it

I agree with making 2 projections but not one with and without. Make one with current projections and one with a 20% reduction which seems to be the worst case.

Jacob calls it "pay as you go," but it might be more accurately described as current employees fund payments to current recipients. Unlike a 401(k), there is no individual account with "your" money in it.

90? What percentage of people live to 90?

When paying tax from pre-tax or from cash, one is pre-tax money and one is after tax money. They don’t seem the same to me.doesn’t IRS collect tax from the $27,000 from the pre-tax account?

If you're retired - I'd just like to point out because it's never mentioned...when you convert you cannot touch it for 5 years - so you have essentially 5 years to grow the remainder to basically cover it's cost via growth...

Terrific advice. My own situation is not that different, so it was helpful knowing that if nothing else, I’m not too far off.

So in 2026, if you're over 50, but you make >$161k and then you can't add the catch-up contribution to EITHER the 401K nor a Roth-IRA? Does one's employer, usually, handle these things? For example, say in 2026, since they know how much you make , they won't add the catch-up to your 401k if you're over the $140k limit? My employer automatically withdraws a percentage every paycheck, in order to reach the yearly limit ($23k 2023).. through the years, the amount has automatically increased as the limit laws have changed.. but the $7.5k catch-up seems different. Is the additional catch-up something that must be done manually every year, regardless of limits? i.e. if you're over 50 , then every year you must ask HR to add the catch-up amount? And after 2026, if you earn $140k-$160k you must also specify to them the reduced amount that goes towards Roth-IRA (if they offer it)? And if one turned 50 in 2023, then is it too late to add the catch-up amount in 2024? Or is it an HR specific kind of thing?

She should buy or allocate 20% of her portfolio to IBIT or to MSTR…..then she’ll never have any worries.

You invest it and lose it all in 2 years

Dude, she can retire! If she can’t figure that out I don’t know how she accumulated millions in the first place.

But if you have money invested; what is the difference between VOO invested money and taking at 62 vs waiting until 67. The money you leave in investments by taking SS early will continue to grow.

That will get you a tent in Wyoming.

Just learn about investing by reading. I have only lost money one year 2008 and make between 50-100k every year on 700k savings. Don;t pay some scum bag investment guy would will take 1-2% of your money every year and still lose your money. Only trust yourself.

Great info . Can you do it if you retired at 62 and move out the country (retirement out of the country) Ty 😊

Great explanation, this maybe our dilemma.

Serious question: Is it safe to trust the US mail to deliver that check to the new institution? They have lost $25.00 checks I have mailed. Why can’t they send it via direct deposit with the new company like a paycheck?

IF SHE LIVES !!! Want to chance it ? at 77 who the hell cares ? Take it 62, Nothing is guarenteed

Yikes wouldn't hire him

I'm 59 with 700k in my 401k and these 'success rate' charts (?) don't answer if I can retire, how much I'll have as income, and how to draw from the account. Anybody have any recommendations? Thanks!

Ultimately, computer models don't work. She is wise to be conservative in her situation. I was in a similar situation retiring at 56 with 700K in 401K and 700K pension cash out plus 150K in a Roth IRA. I also own my home with no debt and had 50K in the bank. I had all I needed to live a comfortable life but Schwab talked me into investing more in the market. Of course, as always happens in these situation, the market tanked and I was down 200K. I learned the hard way that if you have all you need to retire, why take the risk? Based on my own situation, if I start social security at 62 verses 65, I break even if I die at 84; my father and uncles all died around 84 do I doubt I will live much beyond that based on family history but even if I did, how much would I be able to do? So ... there is no need to lose sleep in retirement worrying about the stock market; invest in treasury ladders and CD ladders and maybe even Muni's; the market goes up and down but I always gain at a slow even pace. Nice video though and everyone has their own risk level and goals.

Retiring at 62 won't work for someone with no 401K, pension or savings to speak of BUT he/she is making very good $$$ in their late work years. You'll be leaving tons of money on the table to basically get crumbs from SS.

$108,000 per month in LTC?? WOW!! @3:50

Wait 15 years to collect your SS? You could be dead or in a wheelchair. Madness.

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for...

Leaving on $3,000 a month is not much of a living.

The risk is IF SS is there. She is 15 years ahead of the SS. Why can't she take more out of the 401K to supplement the income if she were to take out SS and then scale back the 401K when the SS is activated at 67?

Take more risk? That’s your advice? You’re an idiot

She's not living to 90

Retire with 700K at age 58? She’s nuts, the night she wakes up in a cold sweat because the market dropped, she will likely panic and make bad decisions. I’m 58, about $750G working capital, currently spending $3,800 each month. Sound similar? I’d be a fool to retire now.

I am 59 and trying to make the 62 vs 67 decision for SSA. If you decide to take at 62, you will have the opportunity to invest that amount which would not be available if you wait. Another unknown is if SSA gets cut 20% or so in 2032 as everyone predicts. Having a smaller amount would help make the cut easier and you would have a few years to invest until 2032. I am leaning towards 62, but am I missing something?

Great tool!

She has her $450,000 house paid for. The starting premise of 1.2m net worth is a no brainer…obviously she’s gonna be fine. Didn’t need to see the program spit out data that suggests she’s fine. Yes, you do need a million to ride the retirement wave.

I have over $2M at 56….no way could I retire. Probably because I don’t want to. My estimated retirement income at 65 is $24k a month.

What does Oridinary mean? (Just messing with you I know it was just misspelled)

Great Video, I was wondering, I'm worried about working with a retirement planner, cause the money I have in my retirement can't be made up if one gives the wrong advice. Do you know how the payment structure is for using an advisor, and is there key items to ask when choosing an advisor.

You don’t. Now log off YT and get back to work!

If she retires at 58 and collects SS at 62 or later will that effect her benefit amount? Since she won't be contributing for anywhere between 4-9 years. I ask because I check on my SS account every year and i noticed a drop in benefits one year when my income decreased.