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Thanks for watching and for the question. That strategy used to be an option, but is no longer allowed. Now you can not just claim spousal benefit while delaying your own. In order to receive spousal benefits, you must first claim on your own benefits.

Thanks for watching and for the question. Yes, pension income will count toward IRMAA.

Thanks for watching and for the comments. Regarding the tax savings from not taking early RMDs. We did not mention that because QLACs are not useful purely as a tax reduction tool. You are right they defer (and that can be valuable under specific circumstances), but in general, they are not useful solely for tax reducing your lifetime tax bill. I think this article is the best detailed description of this: www.kitces.com/blog/why-a-qlac-in-an-ira-is-a-terrible-way-to-defer-the-required-minimum-distribution-rmd-obligation/ Regarding MYGAs, while they are certainly not the worst, we just feel like there are many other options to get a similar return that doesn't require locking up money in an annuity. Again, for specific circumstances they could be very valuable, but not for the broad market. Thanks again for watching and for the comments!

Thanks for watching and for the question. For a non qualified annuity, the earnings that are withdrawn before 59.5 would be subject to a penalty, but not the original principal. Hope that helps, but let us know if you have any other questions!

Thanks for watching and for the question. While there is certainly nothing wrong with maxing Roth 401k, I think the correct answer will depend on current and expected future tax rates. HSA contributions from Payroll save you income tax and FICA, are you in position where giving up that reduction in taxes makes sense? If so, then that is a great strategy. If you are at peak earnings in a high tax bracket it may not. Hope that helps! Thanks again for watching.

I see, yes that's right. I am trying to get a handle or optimize on this weird one-time hsa roll.

Hi, are there any particular questions you still have?

Glad it was helpful!

Thanks for watching and for the question. Have you already purchased a QLAC? If so, the original terms of the contract will remain. If you are considering a new QLAC purchase, you can elect any age up to age 85. Does that help answer your question?

Yes, certainly a great option. Thanks for watching and for the comment.

Certainly! Thanks for watching and for the comment.

Thanks for watching and for the question. You would not owe NY tax in the situation.

@@ArnoldMoteWealthManagement ty,

Thanks for watching and for the comment. Sure, we simplified JEPI and certainly did not mean to imply the fund is managed exactly the same. But do you not agree that the same general limitations of the strategy apply? JEPI tilts a little more towards growth than income compared to QYLD, but the same principal applies - It will protect on the downside and cost you on the upside. If every year is like 2022, JEPI will be great. If every year is like the last year, not so much. Over the last 12 months total return for JEPI is +9% and even Vanguard's basic 60/40 fund VBIAX is +12.5%. You run into the same issues, though perhaps less than QYLD.

Thank you for watching and for the comment. Can certainly take some work to make sure you find the right investment. Not always an obvious answer! Thanks again,

Thank you for watching and for the question. In general ETFs are going to be more tax efficient than mutual funds, so look there first. And yes, there are advantages to using multiple funds in a brokerage account to increase tax loss harvesting potential. So instead of a total market fund like VTSAX (or VTI - the ETF equivalent), look for a large cap fund, a large cap value, a small cap fund, etc to recreate that one broad fund. Thanks again for watching and for the comment.

Thanks for watching and for the question. The interest from the bond funds would be taxed as income. There would also be some capital gains when the funds mature.

Thank you for watching and for the comment!

Hi Bobby, thanks for watching and for the question. You are only able to use $3,000 (or $1,500 if filing taxes as single) in carry forward losses each year. If you have $20,000 in losses that carried forward from last year for example, and you recognized $10,000 in long term capital gains this year, you would get taxed on $7,000 (or $8,500) of those gains and your carried forward losses would be reduced to $17,000 for next year. You will not be able to use more than $3,000 of carried forward losses. Hope that helps answer your question.

Hello, thanks for watching and for the comment. The alternative is just total return investing and selling assets as needed. The other funds we showed, QYLD for example, have the same philosophy as JEPI, they just have longer history. You can see the long term cost of this strategy compared to a total return approach. Also worth noting since you mentioned after-tax returns. JEPI, and other covered call funds, are relatively tax inefficient because of their high turnover and since the derivative income is taxed as income, not qualified dividends. Owning and selling appreciated stock leaves you with qualified dividends and long term capital gains which creates a much lower tax liability.

Thank you for the comment. Happy to hear it was helpful!

Hi Kevin, thank you for watching and for the question. You are technically able to roll money out of a SIMPLE and into a 401(k) or IRA. If going the solo 401(k) route, ensure whatever provider you use will allow incoming rollovers first, because it can vary. But, rolling to an IRA and then converting will work too. Lastly, have you participated in the SIMPLE IRA for at least 2 years? SIMPLE IRAs can have significant penalties if money with withdrawn or rolled out before 2 years.

Thanks for watching and for the comment! There's no secret sauce when it comes to similar investments. Finding a fund that follows a different benchmark is the general guidance. It doesn't help that the IRS is very vague with any specifics of what counts. So do what you are comfortable with.

No there is not a par value for these funds or guaranteed liquidation price. Just keep an eye at the yield to maturity of the underlying holdings for the best estimate of your total return. Also, there is plenty of history of these funds by now, and fund pages still have data up for funds that liquidated in 2023. So look at those and you should get a sense of how these funds perform at the end.

It will depend on your risk tolerance and desired spending in retirement. There’s no right answer. But I will say not having Social Security is a good reason to look for another source of fixed income. You have the flexibility to think about how much fixed income you need and match that with TIAA traditional.

@@ArnoldMoteWealthManagement than you

Because there are many variables that decide the answer, we recommend using this questionnaire from the IRS to find your answer: www.irs.gov/help/ita/whom-may-i-claim-as-a-dependent

Hello, thanks for watching and for the question. The webinar compares JEPI to SPY because the S&P 500 is the benchmark listed on the fund's factsheet and the funds says it's goal is " Seeks to deliver a significant portion of the returns associated with the S&P 500 Index." I see the argument that JEPI's strategy should have lower volatility than the standard index, but investors should at the very least have an idea of that long term cost associated with achieving that lower volatility. And then there is a second example with QYLD that is compared to QQQ for the same reason, since both are benchmarked to the NASDAQ-100. What would be a better benchmark for these funds in your opinion?

@@ArnoldMoteWealthManagement Thanks for the reply. I think a more appropriate benchmark is a 60/40 portfolio (VOO/BND). I see JEPI as an income tool so apply a monthly withdrawal. You do this for a living so please correct me if I’m thinking about it wrong. I’ll also add these type of funds are not for everyone especially the single stock covered call funds.

@@analyticsx3 Expecting returns closer to a 60/40 seems much more realistic for sure. JEPI's history is short, but has done better than a 60/40 over the last 3 years. Though that includes one of the worst years in history for BND... For some longer history - With just a quick look at QYLD vs a portfolio of 60% QQQ and 40% BND shows pretty significant underperformance by QYLD over a 10-year period. In general we favor a total return approach to investing rather than trying to match up income need by dividends or interest. Anytime you add expenses, derivatives, frequent trading, etc it tends to impact long term returns. There's rarely a wrong answer when it comes to investing, so I'd just say if you are comfortable with the prospect of less volatility but lower returns than it is ok. Just don't think that JEPI is some magic investment that does everything.

@@ArnoldMoteWealthManagement your absolutely right. I think long term there’s too much upside loss. From what options traders have said when interest rates come down more premium is generated on selling puts rather than calls (possibly anecdotal). If that’s true the yield and appeal for these funds will come down. The timing of the funds popularity and rates hikes could be coincidental but it’s sufficient as a short term income instrument.

Hi Sabb, thanks for watching and for the comment. Doing backdoor Roth contributions is certainly superior. This video is more targeted to those who have a large pre-tax IRA balance and so can not to backdoor Roth contributions. If you have $0 in a traditional IRA, then yes getting that into a Roth is a better long term solution. Thanks for making that point clear since we did not. If you have $500k in a traditional IRA and income that makes you ineligible to make ordinary Roth contributions, it is a whole different decision, and one that could favor brokerage account contributions for some.

Hi Chuck, thanks for watching and for the comment. The table does show drawdowns, so sorry for the confusion if I said returns in the webinar and it implied something else. Though I don't think that negates the argument - An asset that is supposed to be such a strong store of value shouldn't drop 25% in a banking crisis and have 40+ year periods where investors have not had returns that matched inflation. As far as Bridgewater and owning gold. First, I would say the average retiree shouldn't (and can't) invest like a multi-billion dollar hedge fund like Bridgewater. There's a lot more going on there than buying and storing gold bars in a vault for his clients. I can find other investors, with more assets than Bridgewater, that don't own gold, too. In general, the average retiree trying to build a portfolio off the strategy of a billionaire is probably a recipe for disaster. We did a longer webinar just on gold investing here, in case it is helpful: ruclips.net/video/DVE8jS7duSk/видео.html

The principles of modern portfolio theory apply regardless of account size. Diversifiers like gold can help retirees through stagflationary periods. On its own, gold isn't a great asset, but it is a great diversifier to a portfolio of stocks and bonds. Energy stocks can fill a similar purpose to gold, since they have also done well in inflationary periods. However, they have a variety of regulatory risks, and the last 10 years have been something of a lost decade for them. All assets have their downsides. Even "risk free" treasuries are 35% down from their all time highs.

We are strong proponents of using low cost, diversified index funds and spending time on what you can control and have an impact on like tax planning, tax efficient withdrawal strategies, etc. We have a video here that gets into it a little deeper on the active vs index topic: ruclips.net/video/hnqUoWeBHeU/видео.html

Hello thanks for watching and for the comment! Sorry for the confusion, in the video we were just implying that since many people do these contribution each year (and then need to file the form when withdrawing each year as well), that it seems to be a regular occurrence for most. But you are correct that if you just make a one-off contribution you will just need to file the form once for that contribution. Thanks!

Hello, thanks for watching and for the question. From our experience, contacting your Social Security office for questions on your benefits is usually the best way since they can pull up your account and actual amounts. With the info provided we can't give you an exact answer on the benefit you'd receive, but since you are working and earning about $50,000, it is true that your benefit will be reduced by about $1,150 per month. The recommendation you received is subjective, and is not based on a hard limit. There is no absolute maximum limit, it would just depend on your spousal benefit and your income to know what amount of benefit is withheld. If you are in doubt and were not happy with your prior experience with contact SSA, you can always call again to talk with someone else who can pull up your account and give a second opinion.

Hello, thanks for watching and for the question. We do not deal with options with our clients, so probably best to contact a tax preparer that focuses on this, sorry. I don't think your broker/custodian is going to flag it as a wash sale outright, so it will be up to you if the put option and the underlying shares are "substantially identical" and we don't have any experience on seeing if that stands up to IRS scrutiny.

Thank you for the comment and for watching. Glad you found it helpful.

Hi Frank thanks for watching and for the comment. It is tough to give specific numbers, but in general - If the wife claims at 62 she will obviously receive more benefits early on, but it will have a permanent reduction on spousal benefits. In the long run there will be a breakeven for the wife delaying - probably around the wife's age of 80-82. Because spousal benefits don't start until he claims, and because of the age difference, there could be less reason for him to delay past FRA. Technically, him delaying to 70 has a breakeven, but it would be out into the wife's age of 87-89 or so. However, this would also guarantee the surviving spouse a higher benefit once one spouse passes, since he would keep, or she would inherit, his age 70 benefit. Like everything in financial planning, there's a level of risk you need to be comfortable with and a lot of other variables. Do you have other savings to rely on for living expenses to allow you to delay? Are you more concerned about longevity, or spending early in the plan? Etc. Thanks for the question!

@@ArnoldMoteWealthManagement Thank you for your time and detail in that answer. I appreciate that very much.

@@FrankBatistaElJibaro Of course, thank you Frank!

Thanks for watching and for the comment. If your wife waits to claim until her FRA, her total benefit she receives will be 50% of your age 66+2 benefit, so $1,000. Or said another way, if she waits until 67 to claim, she will receive her $600 per month, plus $400 per month in spousal benefit.

Hi Steve, thanks for watching and for the question. First of all, I would say don't worry about the price volatility if you have no plans to sell. However, I understand it is confusing to see. What brokerage firm are you with? They may just be showing the price of the highest "bid" that is currently outstanding for the CDs. And since these can be thinly traded, it may just be some low offers hoping to take advantage of people that need to sell. They may also just be using a data feed from another provider that is reporting the most recent sales price, which may be low if someone had to sell in a hurry and took a low offer price.

@@ArnoldMoteWealthManagement Fidelity. Thanks so much for responding to my very simple question. I posted this same question to well over two dozen youtube "financial advisors" and yours was the only reply. Shows me that 99% of these "experts" have ZERO interest in actually answering a simple question from a viewer but only interest in blasting out videos. Should have known all these guys were losers just trolling for new leads. Thanks again for your well thought out answer...I will continue to watch your videos.

Thanks! Hope it will be helpful. But please reach out if we can be any further help

Thanks for the question. Yes for most it will have the exact same result as long as they are over age 59.5 and not subject to early withdrawal penalties.

@@ArnoldMoteWealthManagement Thanks, it is interesting they call the IRA to HSA rollover a "once in a lifetime" thing when you can just do it every year with a withdrawal to savings and a move from savings into the HSA and have the taxes wash out on the tax form.

Yes correct. There are a few special scenarios where it can be advantageous, for those under 59.5 for example without the cashflow to fund an HSA or have a small rollover IRA or IRA funded with some non-deductible contributions they want to reduce taxable growth on before doing a Roth conversion. Those with inherited IRAs who are trying to reduce RMDs can benefit from this as well. But you and your friend are right that for a lot of people over age 59.5, it is the same as just a simple withdrawal from a retirement account and then a contribution to HSA. @@ccgaskell

Hi John, thanks for watching and for your comment. The strategy of delaying works out well for many, but certainly isn’t right for everyone.

Hi ccgaskell, thank you for watching and for the question. Yes, it is our understanding that US Code 408(d)(9)(E) makes this IRA to HSA distribution not fall under the IRA Aggregation or Pro Rata rules. That means you can do this conversion/distribution using exclusively either of your IRAs.

Thank you so much for watching and for your comments. We are glad you found the video useful!

Thanks for watching and for the comment George

Thank you Denny! We are glad you find them helpful

Glad it was helpful! Thank you for watching and for the comment

Thanks for watching and for the comment!

Hello, thanks for watching and for the question. Yes, unfortunately any amount rolled over from a 529 to a Roth IRA will count towards the annual contribution limit.

Hello, thanks for watching and for the question. As a general disclaimer, these numbers can change based on wages earned between now and retirement, inflation, etc. But for some approximate numbers, your wife would get an additional $80 per month in spousal benefits once you begin your benefits. She would receive $700 per month for a few years, and then once you begin your benefits at age 65 she will be bumped up to approximately $780.

@@ArnoldMoteWealthManagement Ok. Thank you very much

Hi John, thanks for watching and for the question. You can not use an HSA to pay for a Medigap supplement plan per IRS Publication 969, page 9, which says: "You can’t treat insurance premiums as qualified medical expenses unless the premiums are for any of the following: ...Medicare and other health care coverage if you were 65 or older (other than premiums for a Medicare supplemental policy, such as Medigap)."

Hi Mike, thanks for watching and for the question. I am not sure I fully understand your question? The income that ends up subject to income tax is what is left after the standard deduction. For example, if you are married and your household net pay was $100,000 after any payroll deductions, the income that is subject to the tax brackets is $72,300 ($100,000 - $27,700) $27,700 being the standard deduction for 2023. That would come close to "filling up" the first 2 income tax brackets (10% and 12%). Does that help?

Right the first $27,700 of income is in the zero bracket if you will. Then after that amount you start counting . So if I make for the 12% bucket I can make up to $117,150 (89,450+27,700) before I get into the next bracket 22%. You fail to mention that the Standard Deduction bucket gets filled 1st at zero then the next bucket 10% etc….

@@mikeh7203 Got it, thanks. Yes any numbers we talked about are taxable income in the video. Good to clarify if that was unclear.