How to Organize Your Retirement (7 Must-Have Accounts!)
Dave Zoller, CFP®
✅ REACH OUT FOR A FREE retirement planning SESSION ✅
Videos mentioned:
HSA:
Brokerage:
Update:
❤️[MY FAVORITE retirement planning SOFTWARE + VIDEO WALKTHROUGH]❤️
Achieve Your Successful & Secure Retirement WITHOUT A Financial Advisor
My Favorite Retirement Calculator w/ no video walk-through
🍀Get The 5-Minute Retirement For Free🍀
———————–
POPULAR RETIREMENT VIDEOS
3 Reasons To Retire ASAP
7 Things Happy Retirees Do Well. retirement planning Tips From Recent Retirees
High Net Worth Retirement is Different
3 Lies That Could Delay Your Retirement
3 Must-Have Assets When retirement planning.
———————–
#retirement #howmuchtoretire #retirementplanning
MUSIC:
Stary Sky- Simon Grob
Disclaimer: Since we don’t know your specific situation, none of this information should be construed as tax, legal, financial, insurance, financial advice, or other advice and may be outdated or inaccurate. It is your responsibility to verify all information yourself. This content is prepared for entertainment purposes only. If you need advice, please contact a qualified CPA, attorney, insurance agent, financial advisor, or the appropriate professional for the subject you would like help with. Streamline Financial Services, LLC or its members cannot be held liable for any use or misuse of this content.
Affiliate Disclaimer: This post may include affiliate links where we may earn a payment when you click on the links at no additional cost to you.
Disclosures: Securities offered through LaSalle St. Securities LLC (LSS), member FINRA/SIPC. Advisory services offered through LaSalle St. Investment Advisors LLC (LSIA), a Registered Investment Advisor. Streamline Financial Services is not affiliated with LSS or LSIA. LSS is affiliated with LSIA….(read more)
LEARN MORE ABOUT: IRA Accounts
CONVERTING IRA TO GOLD: Gold IRA Account
CONVERTING IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
CFP® Explains: How to Organize Your Retirement (7 Must-Have Accounts)
Planning for retirement is a crucial aspect of financial management. As you work towards your golden years, it is essential to organize your retirement savings in a way that optimizes growth and minimizes risks. To help you navigate this process, we present seven must-have accounts for a well-organized retirement strategy.
1. 401(k) or Similar Employer-Sponsored Plan: If your employer offers a 401(k) plan, it is wise to contribute to it, especially if there is a matching contribution. This account allows you to set aside pre-tax income, reducing your taxable income in the present while benefiting from tax-deferred growth. If you don’t have access to a 401(k), consider an Individual retirement account (IRA) instead.
2. Traditional IRA: A Traditional IRA offers tax benefits similar to a 401(k). Contributions are tax-deductible in the year you make them, and earnings grow tax-deferred until withdrawal during retirement. However, keep in mind that withdrawals in retirement will be taxed as ordinary income.
3. Roth IRA: A Roth IRA is another type of individual retirement account, but with distinct tax advantages. Contributions are made with post-tax income, meaning you can’t deduct them from your taxes. However, the earnings on your investments grow tax-free, and qualified withdrawals in retirement are also tax-free. The Roth IRA is an excellent choice if you expect to be in a higher tax bracket during retirement.
4. Health Savings Account (HSA): An HSA is commonly associated with medical expenses, but it can play a crucial role in retirement planning. Contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses are also tax-free. Moreover, once you turn 65, you can withdraw funds for non-medical expenses without penalty (although they will be taxed as ordinary income). Considering the rising healthcare costs in retirement, having an HSA can be a valuable asset.
5. Taxable Investment Account: While tax-advantaged accounts are excellent tools for retirement savings, having a taxable investment account offers flexibility in accessing funds without penalties or restrictions. This account can hold a diverse range of investments, such as stocks, bonds, and mutual funds, and requires you to pay capital gains and dividends taxes based on your tax bracket.
6. Annuity: An annuity is an insurance product often used as a retirement income stream. It allows you to invest a lump sum in exchange for regular income over a specified period or for life. Annuities can provide peace of mind by offering a guaranteed income stream, but they come with fees and terms that require careful consideration. Consult a financial professional to determine if an annuity suits your retirement goals.
7. Social Security: Although not an account you create, Social Security benefits play a crucial role in retirement planning. Familiarize yourself with how your Social Security benefits will work and understand the best time to begin receiving them. Deciding when to start benefits depends on various factors, including your health, life expectancy, and overall retirement strategy.
Remember, retirement planning is not a one-size-fits-all approach. Your financial situation, goals, and risk tolerance will affect the types of accounts you choose. Seek guidance from a Certified Financial Planner™ professional to ensure your retirement savings align with your long-term objectives.
HSA only works for high deductible health insurance
Great video.
Keep up the great work.
At the age of 63, retired 2 years ago after 30 years on active duty in the US Navy as a physician it was the best decision that I made as a Family Physician.
The downfall is that my wife died on active duty in 2014, not from her deployments, but a terminal brain tumor.
She is buried in Arlington National Cemetery with full honors based on her incredible career.
I miss her.
Thank you Dave your video's are Very Informative. You mention brokerage account. I do have one within my IRA account in Fidelity. What is your opinion percentage should be in this account?
I'd like to know if someone wants to retire and have the $89K income to stay in that lower tax bracket, how much will they have after medicare, medicade, taxes etc to spend on a monthly basis
I would add having a Treasury Direct account to the list. Easiest way to manage fixed income assets.
I've had a HSA for years and it will cover my healthcare costs between my retirement (62) and Medicare (65). However, it is bs that these funds can't be used to pay insurance premiums, which is obviously a healthcare expense. Now I will run the risk of having too much money in my HSA since I am very healthy and don't expect to have a lot of healthcare expenses in retirement. I will likely convert much of my 403b to my Roth and use the HSA to cover living expenses after age 65 in order to spend it down. Ideally, I want to only leave Roth funds to heirs.
Looks like you passed over the DAF account. That’s a good one for planning. Especially pre-retirement
Retiring next week at 62. Your videos are very useful and I will continue to watch. Thanks!
Yes. Please do a video on back door Roth
Thanks
Definitely would like to hear more about non-deductible IRA to back door Roth conversion!
Very helpful. I’ll have to rewatch to take notes.
Retiring next year at 67. Plan is to live off of 401K withdrawals and Treasuries for the next 3 years. Hold of SS until 70 as it is a big tax advantage in addition to the big kick up in amount! Longevity in the family on both sides into the 90s.
Great Video, I prefer the on screen print
I believe that Dave is the best on the Internet regarding these related topics. Solid presentation.
And as a 15 years successful retiree in his 70s, I would like to add a number 8. We all know KISS. Don't complicate this. Keep it simple.
Of course do some planning. But this is your life and retirement. Enjoy yourself. It is OK if you leave a penny or two on the table.
Great video!
To your question: like the bullet text overlays (easy-to-see summary), hate the all-orange screens (distracting), love the iPad drawings (very interactive/visual). You always have a great delivery…appreciate and enjoy the videos.
The back door IRA video would be very helpful. The videos you produce are very informative and truly appreciated.
How do you have an HSA when on Medicare.
Yes, I like the text.
Thanks, Dave. Nice video. It would be great if you could speak to my issue. You allude to the fact that you need enough money in the taxable brokerage account to cover your expenses while doing traditional to Roth conversions in those years before SS. I am already in retirement and unfortunately I didn’t prepare properly for this. The majority of my funds are in my traditional IRA and I need to get some of these funds into my taxable brokerage account to have available to live off. Is there any good strategy for this or do I just have to bite the bullet and pay the taxes?
Where does the Roth401K come into the picture? Can I use that to convert my 401K funds?
Dave – I have just retired and have been enjoying your videos, including this one, for a while. Thank you!
New video idea: The first 90 days of your retirement.
Very informative and current. Thank you!
Great video! A dedicated video on back door Roth conversion would be helpful given the complexity related to that strategy.
Good topic! I recently retired at 60 and am starting to work through the income / tax plan within my different accounts so appreciate the insights.
The big yellow screen with text on them were very distracting. I did not like them. I do like the iPad drawings; they are almost always helpful.
Not nerding-out too much. You explained things very well. Thanks!
13:13 What better alternatives to CDs were you talking about? Please explain.
Excellent information. I agree with your account strategies and the Roth conversion window between retirement and Social Security starting. I’m not sure I agree with your advice on the checking floor being at that level. If you use an app to pay your bills like Mint or Banktivity or other, and you charge most of your expenses on a credit card, you will download your bills 3-4 weeks before due. That gives you plenty of time to move some extra cash to cover a future bill and not have idle cash in a checking account. I might keep a $1000 or $2000 floor not 1 or 2 months. Now that I’m getting nearly 5% on savings, I’m more careful to keep my checking balance minimal.
This was a very helpful video! I would love it if you could do a video on back door Roth IRA conversions. Thanks for the great information!
This is a great video, very helpful – I would like to know more about the non deductible ira that can convert to a roth, thanks again.
Thanks for the tremendous ongoing content. Great job!
This is very helpful information. I especially like the new "floor" of the checking account and using the high yield savings account (or similar type account) as the source of the checking account. Definitely minimizes any potential risk or having to withdraw investments when the market is low.
You always have great information. And…. I do like your ipad drawings.
Love that I subscribed to your emails which includes more info and a link to your newest video.
I am a self employed 63 yo and am ready to retire, my CFP tells me we have saved enough, but my Husband doesn't want me to, he doesnt feel as if we have saved enough. He doesnt believe the CFP is correct. I worked an extra year so far…
Hate to go against my hubby, but I am ready.
Thanks Again!
I like the bullet point text on the screen when sharing Pros & Cons, or use cases, etc. But I also like your real-time diagramming when talking about a process flow or sequence of actions, with arrows and lines between steps. I do think after diagramming though it would be helpful to the summarize the points made once again with bullet points text on the screen at the same time you are verbally summarizing. In general I must say I always enjoy your videos because you explain these concepts better than almost anyone else I listen to, with easy to understand language and a very personable style of delivery. Thanks so much for putting these out.
Great video. Some of these are applicable to my situation. Also, I prefer the on screen print version the whiteboard.
I retired at 68 (currently I'm 71) and started Medicare right away using my HSA to pay the Medicare Part B premiums. I also use the HSA for dental, glasses and deductibles. My salary, when I was working, was too close to the next tax bracket to make Roth conversions of my IRA feasible and my job didn't offer a Roth 401k, so all my investments are in IRAs. I had an IRA from a previous job and rolled my 401k over to an IRA when I stopped working (more flexibility for the investments in IRAs). I don't think having a 401k after leaving my job made sense because of the limited options in the 401k. I used some of the money in my High Interest Savings account to tide me over from 68 to 70, when I started Social Security. I also have a saving account tied to my checking account with a couple more months of money because the transfers from saving to checking are immediate. I'm using the dividends generated in my IRAs to fund the HIS account until the RMDs start, and since I won't use all the RMD money for expenses, that's when I'll start a brokerage account in order to make my kids inheritance a little easier.
tldr: I currently have 5 of the 7.
Good information. I have no preference about the text on screen or the iPad drawings, whatever makes the point easiest to understand.
Thank you