ABOUT HOSTS

Joe Anderson
ABOUT Joseph

As President of Pure Financial Advisors, Joe Anderson has led the company to achieve over $2 billion in assets under management and has grown their client base to over 2,160 in just ten years of the firm opening. When Joe began working with Pure Financial in 2008, they had almost no clients, negative revenue and no [...]

Alan Clopine
ABOUT Alan

Alan Clopine is the CEO & CFO of Pure Financial Advisors. He currently leads Pure Financial Advisors along with Michael Fenison and Joe Anderson. Alan joined the firm about one year after it was established. At that time the company had less than 100 clients and approximately $50 million of assets under management. As of [...]

Published On
August 27, 2016

Did you know there are strategies you can use to reduce your required minimum distributions (RMDs) from your individual retirement account? Find out six ways to do this so you can keep more of your hard-earned money.

1:45 “Once you turn 70 ½, you have to start pulling money out of an IRA (individual retirement account). If you are 70 ½ and still working, and own less than 5% of the company, you can delay your required minimum distribution until you retire.”

4:13 “Once you turn 59 ½ you can withdraw money from your tax-deferred accounts without paying a 10% penalty.”

6:54 “A lot of people don’t realize that you can do these Roth conversions even before 59 ½. You could be any age and do a conversion.”

10:45 “This is a valid way to reduce your RMDs – invest in a QLAC (quality longevity annuity contract).”

12:20 “You can invest in your IRA up to 20% of your IRA or 401(k) or $125,000 – whichever is less.”

13:04 “Another way to lower your RMDs is to use tax-deferred accounts for bonds and bond funds, and use taxable accounts for stocks and stock funds.”

16:30 “If you invest in stocks outside of your retirement accounts and you hold a stock or stock mutual fund for at least a year and you sell it, it’s subject to a special long-term capital gain rate.”

23:38 “(Another option is to) donate your required minimum distributions.”

29:42 “A lot of men and women are living into their nineties and hundreds…if you haven’t really thought this through, it sort of messes up your retirement plan.”

32:30 “If we’re living a lot longer, how do we adjust our retirement plans to be able to accommodate that?”

34:43 “The old rule used to be ‘save 10% of your income.’ A lot of advisors are now saying 15%, that’s what we say.”