Achieving a Tax Free Retirement

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  • Опубликовано: 26 ноя 2024

Комментарии • 83

  • @FinancialFastLane
    @FinancialFastLane  2 года назад +3

    Contact Us martinsenwealth.com/

    • @willmoguel4787
      @willmoguel4787 Год назад

      Great presentation. What are your thoughts about putting into 401K more than the employer match. I have heard that it’s better not to exceed the employer match.

    • @FinancialFastLane
      @FinancialFastLane  Год назад

      @@willmoguel4787 401k investment choices are limited. There are more options outside of the 401k, but even so, there are times when using the 401k will make the most sense. The answer is it depends.

    • @willmoguel4787
      @willmoguel4787 Год назад

      @@FinancialFastLane
      Thank you for your reply. By the way l’m reading your book and I enjoying it. So far on chapter 8 ( Annuities and Life Insurance)

    • @alanCalhoun2
      @alanCalhoun2 Год назад

      TAX FREE retirement is the easiest thing in the world to accomplish. And I am talking tax free anywhere you live in the USA. Invest all your money in City and State Tax Exempt US Government Debt via a T-Direct Account. They you are City and State Tax Free for Life. 100% AAA Rated Safe and never worry about losing a penny from investment advice.

    • @FinancialFastLane
      @FinancialFastLane  Год назад

      @@alanCalhoun2 100% of the interest from muni bonds counts towards the provisional income formula and it will cause taxation on Social Security benefits. So, what you are saying is not truly tax free. And for people that already have substantial savings in tax deferred accounts like 401k’s and IRA’s the process is much more involved.

  • @jasonpitt6503
    @jasonpitt6503 Год назад +26

    Looks like this guy sells life insurance.
    The LIRP bucket analogy needs one more detail. The water you put in the bucket is no longer your water. If you need more than what drips from the spigot, then you must buy back your own water using a loan or by paying considerable fees.
    LIRPs are great for insurance companies, the “financial advisors” who sell them, and very wealthy people who don’t need the money in their retirement. If you’re not in one of these groups, then buyer beware.
    Double-check any numbers that insurance salesmen give you. For example, this couple has $1.6M in their IRA at 65 and are broke at 88. Assuming they have no other money saved (they do), no other sources of income (they will have SS), and their investments make 0% (they don’t), then they must spend $70k per year. They only make $100k in this scenario and are able to still save money for retirement, so $70k per year is a generous annual cost of living for this couple. The numbers simply don’t make sense.
    The graphs look nice, though. I’m sure they get printed on the highest quality paper for the sales pitch.

    • @YingJwo
      @YingJwo Год назад +1

      Long post but spot on.

  • @Veronicastyle-
    @Veronicastyle- 7 месяцев назад +59

    Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

    • @Veronicastyle-
      @Veronicastyle- 7 месяцев назад

      @Gabrielyoung- However, if you do not have access to a professional like JUDITH ANN PEACE, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments

    • @Veronicastyle-
      @Veronicastyle- 7 месяцев назад

      @Gabrielyoung- Judith Ann peace is her name

    • @Veronicastyle-
      @Veronicastyle- 7 месяцев назад

      Lookup with her name on the webpage.

    • @Veronicastyle-
      @Veronicastyle- 7 месяцев назад

      @Gabrielyoung- You are welcome

  • @mvman4122
    @mvman4122 Год назад +3

    I’ve been retired for two years now from a financial advisor role after 46 years. Love seeing your presentation of what I’ve advised my clients to consider and many have done using the IUL tax free bucket. If a client said they loved it, the “accelerated death benefit” too, but didn’t need the life insurance part, I’d pause, smile and say you could always put my wife and I down as beneficiaries on this policy 😎. I purchased the first one I ever placed and still grateful!

  • @superslyko123
    @superslyko123 Год назад +1

    Wow! A lot of information here, good with the bad. My financial planner of 10 years NEVER explained this - the traditional financial advisor. He spent 1 minute explaining the Roth IRA & never mentioned Rule 72T. RUclips is a great resource! YOU are great resource. Subscribed.

  • @Stacie480
    @Stacie480 Год назад +8

    30K in retirement income will trigger 50-85% of the couple's social security to be taxable, depending on how much their combined social security amounts to. And although it is a great idea to put some money into tax free accounts, I believe that your strategy places too much importance on future tax brackets at the expense of current tax savings.

    • @hartzogLovesScience
      @hartzogLovesScience Год назад +1

      I look at it as a lesson to plan using all three buckets. Plan to save in each bucket, a portion in the Tax Free bucket, the Life Insurance Retirement Plan, a portion in the Deferred Tax bucket, and a portion in the Taxed today bucket. The goal is having a balance so that each year, you budget how much income is being taxed, so you can balance how much you draw out against how much social security you get. Then you are not “(placing) too much importance on future tax brackets at the expense of current tax savings”. Just my view, having looked at this for sometime now.

  • @MarvinLikoPuha
    @MarvinLikoPuha 2 года назад +3

    Great presenatation! Thank you. The LIRP section affirmed a recent random video on my RUclips feed of a gentleman discussing the benefits of Life Insurance investment. The closing quote was perfect in addressing the “good citizen” concern. Now to look for an LIRP. Life insurance that doubles as long term care insurance is something I never knew existed.

  • @ianmackenzie8831
    @ianmackenzie8831 Год назад +3

    What is the process for taking money out of a LIRP?

  • @craigbutcher9872
    @craigbutcher9872 Год назад +4

    You can't get to zero (12% of X where X minus standard deduction = 0) if you also have NQ income coming in from other assets. You've left off all the NQ assets (i.e, stocks paying dividends, bond interest, maybe rental income) as well of course as any earned income, inherited IRA's with RMD's, annuities... unless you give money away, and even that you can only do to 30% of AGI (for stock etc assets) or a little higher for naked cash. And remember qualified dividends/cap gains calculation will be higher the more NQ you have.

    • @FinancialFastLane
      @FinancialFastLane  Год назад +1

      Full understood. Thank you for your comment! Everyone’s situation is unique and tax planning must be custom tailored. Zero is achievable for many. For those that can’t get there they can still get a significant portion of their assets in a zero tax environment.

    • @paulbradley5106
      @paulbradley5106 Год назад +2

      The point seems to be to move all or most of one’s NQ income into a Roth [and maybe a LIRP] (by paying today’s relatively low tax rates). Dividends, Interest, annuities - they all can be generated inside a Roth and delivered tax free. People can DEFINITELY get to a zero tax bracket.

    • @Zeric1
      @Zeric1 Год назад +1

      @@paulbradley5106 Some people can get to a zero tax bracket, but not everyone. Individual tax situations are highly variable.

    • @paulbradley5106
      @paulbradley5106 Год назад

      Agreed. What I was attempting to point out was that fallacy of the comment, “You can’t get to a zero bracket…”. That is patently false.
      Some people can definitely get to a zero bracket, though certainly not everyone.
      The comment I had responded to bad categorized dividend paying stocks and some other asset types as NQ (non-qualified).
      What I might have added in my first comment was that asset types are not typically qualified or not. Where you hold an asset determines its qualified status.
      Inside a Roth, dividend paying stocks aren’t adding to one’s taxable income. The serial reallocation of such asset types to holding vehicles like a Roth is at the heart of getting to a zero tax bracket (or as close as possible 👍🏼)

  • @Zeric1
    @Zeric1 Год назад +1

    I don't expect people who have been actively saving for retirement for many years (the type of people would be focused on saving taxes in retirement), look like the example couple. Most people I know around this age who have been actively saving toward retirement, have a fairly sizable 401K, are already maxing out their Roth IRA (if they can contribute at all), don't have a large traditional IRA, do have retail investment accounts generating a growing amount of income and dividends or rental real estate, and are likely to be inheriting IRAs that will need to be liquidated in 10 years. That's not to say they can't make some good moves also, it's just the example couple doesn't seem very "real" when considering the type of person most concerned about taxes in retirement and seeking videos like this.

  • @goodnewsfromgod-bybob5710
    @goodnewsfromgod-bybob5710 2 года назад +1

    Great information and I appreciate you sharing this. Thank you

  • @tollermaus
    @tollermaus Год назад +1

    It looks like you're forgetting the impact of the IRA withdrawal on Provisional Income as it determines taxability of Social Security. The threshold isn't the standard deduction but $44K of Provisional Income (AGI+1/2 of Social Security), which is NOT indexed for inflation.

    • @FinancialFastLane
      @FinancialFastLane  Год назад

      Yes, Taxation on SS is a big factor. I discuss in this other video ruclips.net/video/92i1q3itr5I/видео.html

  • @andersonandrew112
    @andersonandrew112 9 месяцев назад

    What do you think of the Buy Borrow Die strategy? Throw a large amount into VOO shares, never sell the shares in your lifetime, and access the part of the liquidity tax-free through a margin loan that will never be paid back? Heirs get a step up in basis upon death, and the IRS never gets a dime. Also, the interest is tax deductible if used for investment purposes like a business or investment real estate. Thanks

  • @huntingscopes
    @huntingscopes 2 года назад

    Awesome; wish we were in same situation with the exampled scenario. However, sure Lane Martinsen can make it happen for different people with all sorts of situations. Thank You and Looking Forward to learning more.

  • @kathycolkitt4847
    @kathycolkitt4847 Год назад +2

    Excellent video My question be at 62 and a million in assets such as S&P 500 traditional and Roth IRAs I don't have those 15 years to take 25,000 out What is a good strategy to get it into the tax rebucket. My other question is how do you start the tax-free bucket? Am I able to do that on my own if I have my funds at Fidelity can I say I want to open a tax-free bucket and start putting those funds in there? How is it managed and does it grow?

    • @timbradley1575
      @timbradley1575 Год назад

      Frankly, there "no Tax Free Bucket" and selling people on fear that your tax rate will "double" is obscene. (The opposite has been happening and will absolutely happen as you age and your income goes down.) This is an advertisement to get you buy life insurance which will 1.) provide a large commission to seller. 2.) lock your funds up with a 3rd party 3.) limit your access to the money. Oh, sure you can some of the policy for longer term health, a paltry 8%. Life Insurance prey on the fearful and remove money form people's pockets. I would recommend you speak to Fidelity or a Schwab about tax advantaged planning. They do not commission on selling you stuff. Also look at Roth conversion. You can count on two things in life....death and taxes.

    • @Zeric1
      @Zeric1 Год назад

      Your situation is completely different than the example and no doubt will need a different approach. Depending on your needs, you may want to delay social security until as late as possible and start taking some money out of the tax deferred accounts now. Everyones situation is different and too complicated for a quick answer here. The devil is in the details.

  • @ethanbell8639
    @ethanbell8639 10 месяцев назад

    Really enjoyed this video!

  • @willlafreu
    @willlafreu Год назад

    Great educational video and thanks for sharing this with me

  • @matthines4470
    @matthines4470 Год назад +1

    we are married couple, age 61/62 with nearly identical parameters to your example, is it “too late” for us to implement the Roth plans in our case if we planned on retiring at 65 (we would love to retire at FRA/67, but are worn out now…)…???

    • @FinancialFastLane
      @FinancialFastLane  Год назад

      For a free consultation please contact my office: 480-550-6556

  • @EddieVelez-bk3dv
    @EddieVelez-bk3dv Год назад +3

    I’m confused on how a standard deduction allows you to take $30k annually with zero tax?

    • @matildagraham8704
      @matildagraham8704 Год назад

      Same here. I don't get it

    • @johnnykkynnhoj
      @johnnykkynnhoj Год назад +1

      @@matildagraham8704 The standard deduction will be 30k by the time they retire. (Offsetting the income and therefore the tax.)

    • @todddunn945
      @todddunn945 Год назад +7

      You are confused because it doesn't put you in the 0% bracket. At that income level their social security would be in the $35K range. So taking their IRA distribution plus half of their SS comes to $47.5 which makes 85% of SS taxable. SO this couple would have .85 x $35K +30K = $59.75K of potentially taxable income. Subtracting the $30K standard deduction he postulates would leave $27.5K taxable for a tax (at 2023 rates) of $2,860 assuming they have no other taxable income. . The mistake he is making is to consider income that is offset by a deduction as tax free, when for the purpose of calculating tax on social security that income is taxable even if the tax rate is 0%. That he made such a basic mistake makes me very skeptical of ALL of his other suggestions. Also, insurance products are only as safe as the financial security of the insurance company, so I am very "insurance" averse. Of course none of this applies to me since I have a pension and thus can not escape taxes.

    • @matildagraham8704
      @matildagraham8704 Год назад

      @@todddunn945 great explanation.
      How do you do?

    • @todddunn945
      @todddunn945 Год назад

      @@matildagraham8704 You are welcome.

  • @felisak6053
    @felisak6053 2 года назад +1

    This is a great information! I am glad my financial decision is align to your suggestion. It pays off to educate yourself. I agree with you not to deferred paying taxes. I would rather do it now coz you don’t know what’s in the future. At least when retirement comes I know I have less taxes. I also obtain that life insurance retirement plan under Universal Index Fund. Great presentation and worth sharing!

  • @howardgilbert5008
    @howardgilbert5008 2 года назад

    WOW. Thank you for such a clear explanation.

  • @rickc2098
    @rickc2098 Год назад

    If i retire at age 62 and keep working can i contribute my social security payment directly into a Roth Ira not to be touched for 5 years? If so what are the advantages or disadvantages??

  • @donnamorgan6511
    @donnamorgan6511 Год назад

    Can you address the best tax breaks for over 70 and retired? IRA?

  • @johnorminski
    @johnorminski Год назад

    Is there any particular time of year to perform the conversions? Early in the year, pay the estimated tax, and let the Roth funds grow all year?

    • @FinancialFastLane
      @FinancialFastLane  Год назад

      Conversions do need to be done within the calenar year. The decision on how much to convert would depend on your income/tax brakets. It can be easier to estimate after most of the year is behind us. So October or Novemer is a good time. I would say have them done before December because processing often gets backed up in December. Here is video on this subject ruclips.net/video/Y-ftpKc-9KY/видео.html

  • @PorscheSpeedster-kz6nc
    @PorscheSpeedster-kz6nc Год назад

    Good principle but your presentation makes some assumptions that there is no taxable bucket or it is not gaining dividends or capital gains and at low limits that are not realistic for most.

  • @gcunningham9937
    @gcunningham9937 Год назад

    In your discussion about Rule 72T. You use an example of 5% per year. Where did you get that number? is that a max per year number? is it based on your age and number of years left until 59.5 yrs of age?

    • @Zeric1
      @Zeric1 Год назад

      IRS has rules based on age or other factors, just search, it's easy to find.

  • @valgarcia4514
    @valgarcia4514 9 месяцев назад

    Do you give classes? I am interested

    • @FinancialFastLane
      @FinancialFastLane  9 месяцев назад

      Yes! We have an online course you could check out www.universityofretirementplanning.com/

  • @user-st2ix9qh4v
    @user-st2ix9qh4v Год назад

    Brilliant

  • @dlg5485
    @dlg5485 Год назад

    My situation is quite different, but there is still useful info presented here. I am a soon to be 54 year old single male and I just started maxing out my 403b this year ($30000). I have already been maxing out a Roth ($7500) and HSA ($3850) for years, and I put about $6k per year into a taxable account, which I increase a little each year. My question: is there any way to get more money into the Roth now, as opposed to waiting until I retire (at 63) to begin doing Roth conversions? Unfortunately, I don't think I am permitted to convert money out of my 403b while I am still employed. I want to get as much into the tax free bucket as possible, as son as possible.

    • @Zeric1
      @Zeric1 Год назад

      If all your retirement money is in a 403b with your current employer and you don't have a traditional IRA or other tax deferred accounts, then no, you don't have a way to do a Roth conversion. If you have an old tax deferred account from another employer, that could be converted. You could change jobs to make the existing 403b convertible, providing change would result in you no longer being in the same 403b plan.

    • @dlg5485
      @dlg5485 Год назад

      @@Zeric1 That's what I figured. I guess I have to wait, which will create a challenge in paying the tax on conversions, but it is what it is.

  • @MarvinLikoPuha
    @MarvinLikoPuha 2 года назад

    Much appreciation!

  • @cbass2755
    @cbass2755 2 года назад

    Question: I want pay off home, but if I take money out to do this, I have to pay 40k taxes! I fear collapse of the stock market, I won’t have any money. What do I do? Im thinking of selling and buying a home cash?

    • @FinancialFastLane
      @FinancialFastLane  2 года назад +2

      Your question has too many unknowns for a simple answer. I recommend discussing with a good financial planner.

    • @cbass2755
      @cbass2755 2 года назад

      @@FinancialFastLane Ya, I know. I need a new one. Thank you anyways…

  • @tomkarpus6658
    @tomkarpus6658 Год назад +2

    This strategy does not work for professionals with decent compensation and working for a company that provides a 401k with match. It also is a bad strategy if you are in a higher tax bracket now than you will be in retirement.

  • @Peter-xq9tz
    @Peter-xq9tz Год назад

    If you collect SS and live abroad full time, can you claim the foreign earned income exemption on your SS earnings and avoid paying taxes?

    • @FinancialFastLane
      @FinancialFastLane  Год назад

      Social Security is not considered earned income, and there are no taxes unless you have other additional sources of income that are taxable. I explain how that works in this video here: ruclips.net/video/92i1q3itr5I/видео.html

  • @steveschein6935
    @steveschein6935 Год назад

    Side hustle cash jobs always helps as well. Uncle Sam takes enough of of my money.

    • @rajbeekie7124
      @rajbeekie7124 Год назад

      I don't know about side jobs and cash only. This sounds like tax evasion. People have done jail time for that.

  • @dontoh95121
    @dontoh95121 Год назад

    any office in California ?

  • @honestdudeguru
    @honestdudeguru Год назад

    What is TF again? 5%

  • @rajbeekie7124
    @rajbeekie7124 Год назад +1

    Slick presentation. The folks being broke in their 70s make absolutely ZERO sense.
    You do come across as a life insurance agent. I see all those bucket scenarios as trying to separate me from my money.

    • @FinancialFastLane
      @FinancialFastLane  Год назад

      Hahaha, I am a holistic financial planner and a fiduciary investment advisor with all the tools in the toolbox. There are always some trade offs regardless of which tool you may use. Typically you will want a combination for a well balanced and diversified plan.

  • @Idahomie
    @Idahomie Год назад

    The fella is a clear communicator without any rt-wing doomsdayer' side remarks. Hope subscribing wont trigger doomsdayer adds .

  • @a-borgia4993
    @a-borgia4993 Год назад +1

    Well, he came out of the closet.... Lane pushes life insurance to fill his own pocket. Do not follow his advice. You will be taken to the cleaners.

    • @FinancialFastLane
      @FinancialFastLane  Год назад

      I have all of the tools in the tool box as a holistic planner. Life insurance is just one of the many tools. It's not for everyone but can be important for some depending upon situation. I do not have a bias or agenda other than doing what is best for each client. I am a fiduciary investment advisor and planner.

  • @CraigCastanet
    @CraigCastanet Год назад

    We don't need a judge to tell us that abiding by the law is lawful and ethical.

  • @cherriBrook
    @cherriBrook Год назад +2

    One bad thing about taking the citizenship to be an American. Uncle Sam loves his taxes 😂😂😂😂

    • @johnorminski
      @johnorminski Год назад

      Please explain which country doesn't tax their citizens in one way or another. I moved from Canada and have half the tax liability that I had there...