Tag: retirement at 60
Want to Lose More Than 50% of Your Retirement Savings? Don’t Watch This Video
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I don't care if you have $500,000 or a 100 million this video can help you I'm going to give you six reasons of why you may want to consider a trust as part of your retirement plan and exactly how it can benefit you and your family I'm not a lawyer and thank goodness for that but everything we're going to talk about today is to help you understand how trust can benefit you from a financial planning perspective we want to help you protect your assets pay less taxes and make sure there's more money left for those that you love and if you have a worth of 5 million and above stick around to the end of this video because I have a special bonus for you all right let's jump right to it so high level we have two types of trusts we have a revocable trust and an irrevocable trust now in reality there are hundreds of different types of trusts possibly thousands of them the concept of a trust goes back thousands of years but high level without getting into the legal definitions and boring you with some of the granularities of what a trust actually is and the different types and the definitions we want to keep this high level and make sure you can apply it to your particular situation so revocable trusts are money that you can access you have no creditor protection and they are inside of your estate then you have the irrevocable trust which is outside of your estate so when you put money into an irrevocable trust you have to gift it into that trust you lose control over those assets but by losing control it is now out of your estate you do have creditor protection because you no longer own that asset so we're going to talk a little bit more about this as the video goes along but understand high level there are revocable trusts no creditor protection you can access this money but the primary purpose is this helps to avoid probate irrevocable trusts are money that's outside of your estate you'll pay no estate taxes but you cannot access this money the trustee that you assign upon creation of the trust is the person who manages those assets can make distributions to whomever you've named as the beneficiary of the trust okay so I promise you I'm not going to get too deep here I just want to go over this concept because it will apply when we go through the benefits that we're about to get into some of you may have seen this but this is the national debt Clock we are spending $2 billion on interest on the national debt every single day in this country we're adding about $800 million per hour to the national debt so how does this impact you well right now per person in this country you can die with about $12.92 million before you pay any estate tax that's about 2584 million per couple but I want to take you on a little journey through history going back to the year 2000 you could die with $676,000 and that 1,000 above 675 you would actually owe 55% estate tax on so think about this if you died with $2 million everything above 675 you would owe 55% on now what if some of that money is Ira well then you also owe income tax on that money and if you pass it on to a grandchild you could very possibly ow generation skipping transfer taxes on that money you're talking 80 90% possibly even more completely gone of everything you've left now our estate taxes going back to the 2000 levels I don't know but my point here is we're paying $2 billion a day in interest we're adding 800 million per hour to the national debt at some point it's likely that politicians are going to come after the people that have money increasing the estate tax is one way they may do that so the information that we're sharing today for some of you out there that have accumulated very uh large amounts of wealth or own businesses it may absolutely apply to you right now in 2026 the estate state tax thresholds are coming down they're being cut in half essentially so you can die in 2026 with $5 million per person which is adjusted for inflation it's going to be probably somewhere around 6.2 or 6.3 as a married couple you're looking at about 12 12.5 somewhere in that range anything above that 40% goes to the government so the first reason why you may want to consider a trust for your family for the wealth that you've created is if estate taxes come down to a level of wealth that you exceed or if currently exceed the thresholds for the estate tax to be applied the government may take 40 50 60% whatever they deem is inappropriate estate tax rate from your estate in addition to that there are 13 states that impose an additional estate tax so the one I'm talking about is at the federal level but there are 13 states that also impose their own estate tax so you need to speak to a lawyer you need to include your financial planner but this is where the irrevocable trust comes in handy there's a lot lot of ways to do this a lot of times people use life insurance or they make gifts into the irrevocable trust to buy life insurance to leverage those dollars or we just start on a gifting strategy over time to get money out of the estate so this is why the irrevocable trust is out of your estate because once that money is gifted it can no longer be taxed at estate tax levels either at the federal level or the state level so one of the big reasons people use irrevocable trust is to get money outside of their estate so the government cannot tax it but also to create creditor protection the second reason to consider a trust applies to almost everyone to avoid probate so probate is the process where the court follows your wishes if you have a will and distributes your assets if you don't have a will you die what we call intestate and then the Court decides without your wishes being known where your assets are to be distributed so if you die right now and you do not have assets inside of a living trust or any type of trust let's talk about your home for example then that is part of the public record your investment accounts uh your bank accounts your jewelry everything that you own except for IAS because they bypass the probate process they have designated beneficiaries but anything that goes through the court system becomes public record anyone can look it up see exactly what your house is worth what your investment accounts were worth how much you had in the bank and then they know how much money your children have inherited the third reason to consider a trust is to protect your children we live in a country where we have a divorce rate of about 50% if you pass money on to the kids everything may be fine in the marriage right now but down the road they get a divorce it's possible that half of your money will go to your child's future ex spouse if you don't want that to happen a trust could have Provisions in it that protects your child from divorce and his or her spouse receiving half of your money along the same theme of a divorce it could be creditors that are coming after your child because possibly there's a judgment against them they've been sued well without a proper trust in place with the protections the provisions written into that trust then your children could lose that money to some type of judgment could be a car accident could be a bad business decision could be uh something that they've done where they are personally liable those creditors could come after their assets and if that money is in their bank account it could be subject to complete loss the next reason is to actually protect your kids not from creditors or divorce but to protect them possibly from themselves even your spouse may fall into this category so you can have Provisions built into that trust that say an annual income of x% must be provided or they're not able to access the entire Corpus of the trust or principle that has been deposited into that trust until a certain age you can even name a co-trustee along with one of your children to make sure that there's some oversight with the decisions that are being made now if you don't care if your kids go out and buy Lamborghinis and throw wild parties then don't consider this a a good reason but if you do and you think it may be wise to have some Provisions in there at least to a certain age a trust is an excellent tool to accomplish that work the next reason is for your retirement accounts so inherited IAS don't have the same level of creditor protection that traditional IAS do or rollover iaas do now Ira protection from creditors varies by state so you want to make sure you understand what level of protection you have in your state for your IRA and that they may be different for your traditional IRA that you open and contributed to as well as it may be different for the 401K that has gone into what we call a rollover Ira but when IAS are inherited for the most part you lose creditor protection there may be some variances across states make sure to look into this but if you want your inherited IRA that you receive or you give to your children or possibly that you're going to receive from your parents you should look into a very specific trust that is designed to house IR IRAs you want to make sure it has specific language in this you want to work with an attorney who has drafted these trusts before and understand the correct wording because since the secure Act passed if you do not have the correct wording an institution can refuse to roll the money into that inherited IRA or to accept that Ira into that trust I've seen it happen with a client who did his own trust trying to save a little bit of money the language wasn't in there correctly he passed away money tried to go into the inherited IRA when the daughters accepted it and and it was rejected hundreds of thousands of dollars in taxes were due the last reason a trust could benefit you and your family and this is not an all-encompassing list there are plenty of other benefits and things to consider when it comes to placing a trust as part of your retirement plan but it's to create generational wealth usually a dynasty trust is created for this and I mentioned earlier in this video The Generation skipping transfer tax so when money goes to a skip person which is two generations Beyond you so your grandchildren your great-grandchildren the government imposes a generation skipping transfer tax which is an addition to the estate tax on the transfer of those funds so using your GST generation skipping transfer tax exemption as part of an overall Dynasty trust can help reduce or eliminate the impact of that tax now the law is very muddy here um you want to work with a qualified professional to help implement the right tools so you have the right language and the right tax returns are filed to make sure that you are in complete compliance with the law because there is a higher possibility when you have this type of wealth to be audited so make sure you're working with people who know what they're doing and again make sure to include the financial planner because after all the legal work is done there are still administrative items that need to take place there are financial planning considerations and if you have these different professionals not working together with one another you have a huge potential hole in your retirement plan all of this is step five of what we call the retirement success plan where we work with you and your attorneys to help build the financial plan they draft the documents we execute the financial plan so we have more videos on the channel about step five estate planning as part of our retirement success plan and now on to the bonus so if you have a net worth of over $5 million I'm sure you've heard of the certified financial planner professional but what you may not have heard of is the cpwa the certified private wealth adviser professional profal so this is a designation that myself has completed and also Ed Rossy here at our firm Ed and I both completed this program through the Yale School of Management and the designation is overseen by the investments in wealth Institute and the curriculum is designed specifically for those with 5 million and above so if you think of the cfp designation it's a very broad range of topics very very valuable but it goes very shallow on all of these different topics for the most part or at least compared to the cpwa the CP wa goes tremendously deep on a more narrow set of curriculum but it's designed specifically for those who have net worths of 5 million and above so if you go to the cpwa website you can probably find one in your area if you can't do that or you want to give us a call we're here to help but for this type of planning I would recommend working with a cpwa professional if you have a net worth of over 5 million is opposed to a cfp [Music] professional [Music]
Retirement: I’m 60 Years Old with $900K in Savings. Can I Retire Now? What is My Risk Capacity?
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Hey just a short Disturbance here to ask you to subscribe to the network now what that does for you is that puts us Oak Harvest Financial Team as well as all the web content we create in your little TV Overview so you have a much less complicated method to come back and locate it later share this video with a good friend or household participant as well as also comment down below I enjoy to react to the remarks currently if you have any questions about your particular circumstance or you'' d like to take into consideration ending up being a customer of Oak Harvest really feel cost-free to get to out to us there'' s a link in the description below but you can always reach out to us and also provide us a telephone call and have a conversation to see if we might be a great fit for each other James informs us that given that he wants to retire as quickly as possible he he thinks it makes sense to take Social Protection the first time available so claiming at 62 a little bit more than two thousand bucks a month at twenty 5 thousand bucks per year he additionally has that nine hundred thousand bucks damaged out to four 401K money of 700 Grand then 200 000 in a taxable account or what we call non-qualified outside of the retirement account very important to aim out right here that the tax obligation attribute of these two accounts as well as the Investments inside them and the interest as well as returns and also the withdrawals from them are exhausted in a different way so that'' s part of a total tax obligation strategy currently James likewise has a residence that ' s completely paid for and also worth six hundred thousand bucks however he'' s informed me that I don'' t desire to utilize this to fund any of my retirement objectives I'' ve lived in this home for a long time I want to remain in the home but we recognize from a preparation point of view that we do have that in our back pocket if it'' s required down the roadway so James'' s total internet well worth right here is about 1.5 million looking at the paid off home of 6 hundred thousand the 700 Grand inside the 401K and also the 200 000 of non-qualified or taxed account properties now as component of the process to recognize where someone is as well as where they'' re attempting to get to we have to comprehend just how is the portfolio currently assigned so James tells us that Troy I understand I'' ve wanted to retire so I'' ve been spending boldy and trying to obtain in advance of the video game however here we are in 2022 and the markets have pulled back some so that double-edged sword is beginning to kind of rear its rear its head yet we see James'' s 93 supply so one of the questions that we have from an internal planning viewpoint is if we maintain this exact same level of risk while we retire and begin taking revenue out of the profile what does that do for what we call the risk capability or the portfolio'' s capability to take on threat while Distributing earnings in the retired life stage so we have to look at the guard rails and guard rails are essentially a statistical estimation of likelihoods of the portfolio returning this much on the high side as well as a good year as well as this much on the downside in a negative year if these guard rails are as well far apart and we'' re taking in earnings out if we run right into a bad couple of years that bump up versus that bottom guardrail however we considerably increase the danger of running out of cash so part of the evaluation of the preparation is is this a suitable guard rail for this type of profile given the desired revenue degree so with every little thing we'' ve looked at so much the inquiry is if James proceeds doing what he'' s presently doing and also retires with the wanted costs level the possessions that he'' s built up living up until age 90 what is the chance that he has success well it comes in at concerning 61 so that'' s probably not a great retirement number it'' s something we want to see if we can work to enhance so I ' m going to pull up the what if evaluation here and start to look at some of these different choices that we can make and also see if we can get this chance to raise alright so currently we have the what if analysis where we have two various columns up right here on the board right now they'' re identical we ' re going to keep this one the same as the base instance whatever that we simply went with but currently we'' re going to begin to transform some of these variables to see what the impact those decisions have on the total retired life strategy and also this is a lot even more of an art at this stage than it is a scientific research because we want to start to discover different scenarios as well as after that see what is most comfy for you when you understand the effect of these various choices you can take some time to kind of way think concerning them evaluate the the pros and disadvantages and now we'' re starting to function together to craft you a retirement plan that offers us raised probabilities of success but additionally something that you feel very extremely comfy with so the initial couple of options we have which are the most easy as well as usually have the greatest effect on the plan is that we can either function much longer or spend much less so James claims no I wear'' t desire to invest less I have a details plan I want to get my Motor home I want to take a trip the nation I want to play some golf I'' ve done my budget I need to invest that 70 000 for the first 10 years so the first point we'' ll look at is the impact of working an additional pair of years so I'' ve altered the age here to 63 as far as Retired life the only variable we'' re going to change at this time I wear'' t want to change also lots of variables at once I want to see the influence of different decisions just how they influence the total strategy all right so that offers us a little bit of a rise yet the following point I want to look at right here is social safety so Social Safety and security is a really valuable source of assured lifetime earnings first it'' s an increasing stream of income it raises with rising cost of living yet two no matter what occurs with the supply market that revenue is always going to be coming in so instead of taking the 62 and also having a considerable reduction in the lifetime revenue that we obtain since I don'' t want to alter spending we still have the 50 and also 20 in right here I want to alter the Social Safety and security from taking it a 62 to taking it at complete retirement age all right so changing the Social Security political election day gets us up to 76 we'' re definitely moving in the ideal instructions right here after a discussion with James as well as he recognizing that you understand what I do feel truly safe and secure with that raised social safety and security income since if the market doesn'' t coordinate I'recognize I ' m still going to have that a lot greater revenue later on in life so that would lead us down the roadway to say alright let'' s look at including much more guaranteed life time revenue if we can obtain your Standard earnings to cover a majority of your costs requires then we don'' t need the market to perform always as well later on in life so now we desire to look at the impact of including more guaranteed earnings to the plan which has the result of giving more protection later in life since if the markets wear'' t coordinate we know we have a specific degree of earnings being deposited every single month no issue how long we live so if you go to our internet site here it'' s Oak harvestfinancialgroup.com com we have up leading a revenue author quote where this is regularly searching for the highest amounts of guaranteed life time revenue that are readily available in the market merely input the variables here so in Texas age 60 Individual retirement account money revenue starts we ' re going to begin looking at 7 years below as well as I know the buck quantity I would desire to place in 300 000. I want to look at one more variable below due to the fact that you might want to get a part-time task James may want to be a starter at a golf training course perhaps he wants to function in the church and he can get 10 thousand or fifteen thousand dollars a year perhaps just desires to work 2 three months out of the year so the next thing I desire to look at is if we ' ve done all this currently what happens if throughout this initial 10 years of retired life he chooses he desires to work three months out of the year or perhaps just a part-time task and job one or two days a week so instead of requiring twenty thousand bucks per year we simply need an additional 10 thousand allowed ' s state from the portfolio so actually that ' s only earning ten thousand bucks extra in retired life income you can do that driving Uber several different choices there you know what I ' m just going to lower this no I ' ll leave it there currently with James determining to perhaps work part-time here to reduce that investing demand in the very first 10 years allow ' s see if we can likewise obtain them retired at 61. We'' re going to alter this back to his original objective 61 determine all scenarios and currently this obtains us up to 94 so we began at 61 if where James was initially at whenever he came in if he maintained doing whatever he was currently doing we got him up to 94 percent below fine I desire to take a minute prior to we finish the last Principle in this video clip to go over some of the changes we ' ve made so far to get James from 61 to 94 so initial as well as primary we changed the Social Protection election strategy second of all we included that deferred revenue annuity finally James has actually decided to function part-time to produce ten thousand dollars per year in those beginning years to assist lower the problem of taking out an extra twenty thousand dollars of retirement income and also then lastly we ' ve brought the guardrails in on the Investment Profile which aids to get rid of really bad results that can happen with his initial 93 appropriation to stocks we haven ' t completely went to bonds or money we ' ve just brought those guard rails in by minimizing our Equity direct exposure in the beginning years of retirement we can always readjust that later now last thing I desire to do is look at what we call the consolidated details all of these things with each other in a spreadsheet just so we'can see just how these various pieces are functioning with each other and also then look at what we call different Monte Carlo examines so currently I desire to share with you some of the private trial analysis that we run simply like we would for a regular client to aid recognize not just where the weak spots are in the portfolio however just how these different choices that we ' re making impact the total client balance and it ' s not simply looking at what we call a typical rate of return it ' s looking at a thousand various simulations we ' re going to look at a pair right here as well as the Order of the return so check out the video if you desire to understand more'regarding this idea you can click the web link up above and also the title of the video clip is just how eleven percent typical returns can damage your retirement and also that ' ll really get residence that principle of it ' s not about what you balance yet it ' s regarding the order in which you understand returns over the program of your retirement throughout the day circulation phase so below we have this individual trial and also we ' re gon na it ' s the mean situation out of a thousand different scenarios so I just want to go'through this relatively promptly with you and also based on some of the changes to the profile we see the financial investment return column below so all of this I assume averaged out to I believe it was regarding 4 and also a half percent gross returns I can go'back and double examine that in a 2nd yet you see it ' s it ' s never four four four 4 four 4 4 4 or six 6 6 six this is what it looks like in the real globe so James retires basically the beginning of 2023 we have the Deferred income annuity clicking on here we ' ve transformed Social Protection to click on right here so if we include these two together come heck or high water there'will'be minimally 74 000 practically 75 000 deposited into his financial institution account every solitary year now if we look at the retired life need it ' s about sixty one thousand bucks plus the discretionary Go-Go costs is about twelve thousand 2 ninety nine so concerning seventy three thousand bucks yet what this does is since we ' re getting so much from these 2 resources it actually lowers the need for the portfolio to do as well as if we kind of go out go on out through retired life you see Social Protection isn ' t boosting income so later on in life currently we ' re up to regarding 89 virtually 90 000 of revenue and also our ninety thousand bucks inflation modified retired life revenue demand is covered by the amount of guaranteed lifetime earnings that we have in the profile which then permits our portfolio equilibriums to support due to the fact that we ' re not needing it to sustain our lifestyle later in life so this is simply one instance right here yet we see the finishing portfolio worth also though it invests down a little bit in the beginning years okay it starts to support due to the fact that the income offered from the decisions that we ' ve made put us in a situation where we put on ' t have to withdraw so much from the portfolio Okay so now I desire to look at a different trial and just to verify here the 500th circumstance was an average of 4.6 but you saw the different order of those returns and just how we really obtained to 4.6 okay so if we glide this up right here allow ' s think it ' s a pretty negative situation this is going to allow me change it below discover a worse return okay so this brings the standard down to 3.05 as well as we still see in bar graph form right here that the portfolio value still is supported and it ' s primarily since that modification in the Social Safety and security decision and adding the Deferred revenue annuity it still places us right into that setting to where if the market doesn ' t do we have enough earnings from ensured sources'that we ' re not reliant on the stock market to give us revenue in retired life especially later in life when we commonly are extra traditional as well as many people that I ' ve worked with don ' t have the same stomach at 80 or 82 to stay spent in Big Market pullbacks as they did when they were 52 or 62.
How To Save $350k In Taxes In Your Retirement Planning and Live Your Retirement DREAM!
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does saving over 350 000 in potential taxes audio great to you in retirement I'' m going to show you how swiftly we can obtain that done so this is the pair that concerned see us and they needed to know do I have enough can I retire how do I pay less tax after experiencing the situation we struck the switch ends up that they only have concerning a 65 probability of success our task is to obtain this number up means more than 65 percent so we can obtain you retired as well as most of the moment that indicates overlaying a tax strategy creating a new income plan altering exactly how the Financial investment Profile is structured and also all of this together is what we call your retired life success plan so when we check out the tax strategy if we proceed down the standard knowledge it'' s a projected 550 000 of taxes however if we check out a recommended tax obligation strategy to conserve that approximated 350 000 we obtain the tax obligations down to regarding 173 throughout retirement along with that we have an estimated finishing balance of concerning 2.5 versus 1.7 by implementing the tax obligation plan as well as adjusting when they intend on taking social security as well as producing an actual earnings strategy so they recognize when where and just how much revenue to withdraw in addition to modifying the portfolio to see to it the quantity of threat in there as well as the anticipated growth equals with their capability to remain in the we do all that which'' s what we call the retired life success plan and also that obtains them up to a 99 possibility of success to get going with your really own tailored retirement success plan click the web link in the summary listed below to schedule a visit with one of our consultants that has a fiduciary responsibility to place your rate of interests initially thanks [Songs]
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