One of the biggest surprises you’ll encounter that could drastically affect your future is taxes in retirement. It’s important to know how taxes affect different retirement accounts and how to properly allocate your savings and investments so that you can protect your nest egg. CFP® Matt Balderston stops by the show to talk about the success of the S&P 500 as well as the risks associated with shifting money toward hot investments. Learn how to get money into a Roth IRA, how different pools of money are individually taxed and how to ultimately work toward a tax-free retirement. CFP® Joe Anderson and CPA Big Al Clopine give you the tools you need to be educated and fully prepared before entering retirement.
0:49 “If you take a look at the tax code today, we are already feeling the higher rates. More things are going to happen, so now is the time to protect yourself.”
1:16 “I’m 49 years old, and am wondering how much I should be putting in my Roth IRA every year so I can retire comfortably around the age of 65?”
1:50 “$5500 is the maximum amount you can put into a Roth IRA. Once you turn 50 then you can put another thousand dollars into that overall plan”
2:39 “If you can create some of your income tax-free, you’re going to be ahead of the game, compared to others because we have a progressive tax system which means the more money you make the higher the tax rate”
2:50 “If some of your dollars are tax free, you stay out of those higher tax rates “
7:07 “Today’s retirement planning is different from when your parents retired. You have to look at things differently”
8:09 “There are a lot of problems with these standard retirement accounts because you’re handcuffed; there’re so many laws and regulations around these and if you screw it up, you’re going to pay a ton in taxes”
9:40 “We see this over and over again, people end up in higher brackets in retirement than while they were working”
16:10 “There are three different pools of money that you can invest in and they’re all taxed differently. You have tax free money, taxable money, and tax-deferred money
18:19: “When are you the most vulnerable? It’s when you’re retired! Wouldn’t it be nice if you had a nest egg that you could pull from and not pay a dime in tax?”
18:34 “Take a look at it, figure out what your goals are, and then look at the taxes before you dive into the investments”
22:20 “Typically when it’s your own IRA or your spouse passes and you inherit their IRA, there is no required distribution. But when you inherit a Roth IRA, you do need to start taking a distribution based upon your life expectancy”
