Dave Ramsey Can’t Answer This Caller’s Question
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Finally someone that asked a real question instead of something stupid
"Real" as in "Boo frikkin hoo, I want to evade taxes because I am too greedy to pay my fair share"? I can imagine better questions.
@RiiPapa sounds like someone has a wee but case of wealth envy, lol.
@@RiiPapaespecially since the agreement was “deferred” did he think deferred meant oh I’ll never pay taxes on this
@@RiiPapa i don’t know where tax evasion comes in. He’s asking about how to reduce his lifetime tax liability rather than some stupid question about someone financing a car at 28% or taking out 150k in student loans to only make 40k.
@@RiiPapa Keep your hand out of my wallet.
You DEFERRED your taxes. If there was a way to never pay taxes, we would all do it.
Deferred on his investments not all of his income.
Exactly what I was thinking. You did this to yourself. Deal with it.
Pay your damn taxes. Geeze. Taxes suck but they're necessary for a civilized society.
@@dr_pinna543 people are seriously confused. Wasting your time. Once they hear a regular person managed to become a millionaire, nothing else matters. They automatically must pay an exorbitant tax rate because they did better in life
Why is Ramsey ranting when this man did not figure out his taxes earlier, now blaming the government???
Rising prices have affected my intention of retiring at 62, working part-time, and building my savings. I'm worried about whether individuals who weathered the 2008 financial crisis found it less challenging than my current situation. The stock market's volatility, coupled with a reduced income, is making me anxious about having enough for retirement.
Consider investing in stocks especially during a recession . While recessions can be tough, they can also offer good chances to buy low and sell high in the markets if you're cautious. Just remember, this is not financial advice, but it's a good time to think about buying stocks since having cash on hand isn't always the best option.
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@@roxdietren I'm actually considering it. It might be time to reassess my investment strategy. much more info needed please, what did you invest in?
@@EdmundEthan093 My CFA claire robert's durand , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..!
@@roxdietren I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
Glad to hear people in these comments just telling the guy to pay the taxes he owes rather than cast him as a victim.
Can someone on Dave’s team answer this? Why is it a crime for people to pay taxes on tax deferred retirement accounts? I’m so confused with how Dave ended that segment. What am I missing? To me the caller made the mistakes that put him in the situation. To have that much money and not have a plan is callers fault, not the govt.
Dave loves rich people and hates taxes.
@@GAFB1122look up how federal income tax revenue is spent.
Paying taxes isn't the crime. The way government uses our taxes is the crime. Just in the last few years, how much money have we given to corrupt foreign governments? There is so much waste, "lost" funds, pork projects, etc. Dave hates taxes because he knows he's just filling the pockets of corrupt politicians.
I know, like don't call 911 or drive on roads or go to a nice park if you hate taxes that much.
@@clarice4426 I hope you can see how silly that argument is. If government used our taxes properly, I'm sure we all would be more okay with paying taxes. And our tax bill would be MUCH lower. It's because of the poor usage that so many make a big fuss about paying taxes. The trillions of tax dollars wasted every year is absolutely sickening.
He isn’t getting screwed, he deferred his taxes. Gotta pay sometime, we all do.
He is, but by himself.
Spoken like a true boot licker
I was thinking the same thing! You defer your taxes and are now attempting to avoid paying the taxes you originally deferred, while the poor who are struggling to get by continue to pay their fair share.
@@joshualubin784 $6 million is 200 TIMES the federal poverty level for a family of 4. Some people are so entitled.
Yep, he didn't build $7M dollars worth of wealth it was like $4M because all that matters is how much cash you can have in your hand at the end of the day. If he didn't defer this money and paid taxes on it when it was earned he would be looking at less than $4M so really he should be appreciative of having utilized those tax deferred accounts. The only issue really for him is to try to make it worth $4.2M instead of $3.8M.
66 years old, with millions, live your life a bit man. Taxes are awful but you’ll be fine
Giving also includes taxes. It helps other people
In Ukraine and illegal aliens.
@@siva47931Said no one ever. Why is the government in debt then by the trillions? And where does the tax money in states like CA go where you have awful roads, infrastructure and public schools?
@@bryandelcid4065 just because someone is in debt that doesn't mean they don't deserve income. So are you saying people in debt shouldn't get paid?
@@siva47931 He's saying the government wastes the money at best or embezzles the money at worst you donut. In reality, it is likely a shitty combination of both.
I'm always amazed how someone can be smart enough to amass that kind of wealth and not smart enough to forsee the taxes.
The only problem is he doesn't want to honor his end of the agreement....the gov't let him get away without paying taxes on that money for 60 years and now he wants to welch on his end of the deal.
you can't take money out of 401k without paying tax. You can lose money to pay less tax, but this stupid. You want your 401k to be 8m instead of 800k. you can convert them to roth early, but you will have to pay tax first.
He ignored it thinking he is smarter than the IRS.
@@stevenporter863probably a MAGA
I was kind of thinking the same. I wondered why this man didn't open a Roth in the past. He was obviously frugal and made good decisions.
People forget that you only get taxed on the amount that brings you into the next bracket, not the entire amount at that rate
Yes! I seem to have that argument constantly with people. I am really clear about it when teaching high school students hoping that they understand that moving forward in life!! Very good point!!
True but when one is talking millions in income (e.g. if this guy rolls over everything now), the majority of the income is in the highest bracket
@@jbach1841 lol right! the highest tax bracket starts at like almost half million. This guys is like 8x more than that lol. Only like 400k of his money will be taxed at lower tax brackets lol
You are still paying taxes.
And it is more then just Federal Taxes, it's state also. But he's already halfway there with his pension. The difference is negligible. $609,351 for single puts you at the top, and married is $731,201 (2024 tax year). So looking pulling $7 million out....$700,000 is only 10% of it. You can more less consider the max on most of it. Your argument is over nothing. You can figure that about 40% in reasonable states will be close to your average tax bill.
I mean, you didn't pay taxes on it when you put it in the account, so you pay taxes on it when you take it out. That's how 401Ks and 403Bs have always worked. Did this guy just realize that?
Yes I’d imagine that is exactly what happened. A lot of people I work with no absolutely nothing about how retirement accounts work. They continually say they can’t afford to put money into it. But they all smoke drink use tobacco and hit coffee shops and fast food restaurants daily. That money adds up I bet to at least $250-500 a month but they refuse to make even minimal changes.
You put money into any account from a paycheck....it is already taxed once. 😢
@@marysatterwhite1982 No, it isn't. It's called a traditional 401k. Look it up.
@marysatterwhite1982 The money you put into a 401K or 403B is not taxed until you withdraw it from your 401K or 403B. A Roth IRA is taxed before you put money in the account, and it grows tax-free.
@@marysatterwhite1982 Wrong. 401(k) and traditional IRA contributions are exempt from taxation when you earn it. It's taxed ZERO at that point. It's taxed when you take a distribution - the FIRST time it's taxed.
Now caller can "Give Like Nobody Else".
Most underrated comment. 💯☝️
😂😂😂
Yoooooo this comment!!!!!
@@alisons9740GOAT comment
LOL
It's not a shame. He was allowed to save money tax free on the promise he would pay it later. It's wrong to think he can just change the agreement later...oh boo hoo.
Rules were transparent. Like ordering everything in site at a restaurant then acting suprised when a bill comes.
And I'll take a guess. He probably votes to keep others who have less from getting any more.
then Dave blamed the government
Specifically Biden @JRealGhetto
People with student loans pulled it off. They changed it after they got and spent the money. Now the government needs this guy to pay off their loans.
Sorry dude. You got your tax breaks over the last 40 years. Time to pay up.
Hardly anyone pays 30% taxes. It’s massively unfair how much the wealthy pay as a percentage of their income.
Yup, this dude made COMPOUND interest on all of that untaxed money, likely WAY more than he'll pay in taxes now and he's STILL complaining about paying taxes. Dave is too busy being political to talk to this man rationally and tell him how much money he SAVED/EARNED.
Exactly.
@@oldfredbear he's an old whiny MAGA
@@matthewgardner2144 speaking strictly fiscally, you'd think Dave would know who sunset the previous set of tax cuts that are currently affecting this man.
This is a classic example of denial of death.
Every single one of us is mortal. Every single damn person that walks on this earth. Do what you can, while you can.
Lol
Yes!
Wow how stupid. The majority of those account balances are earned interest. What he paid in over 30 something years is far less than 7 million dollars.
I hope to have this same problem some day
Or not have that problem by investing into Roth today with no taxes at retirement.
Agree. Good problem to have.
Everyone with a 401K has this ‘problem’, which is what makes this call all the sillier.
@@TonyCox1351 a RMD is taxed based on the distribution. You have a $280k RMD? If not, you don’t have the same problem
Me too😂😂😂😂😂
"vote wrong" haha okay....this strikes me the same as the loan forgiveness debate. Instead of borrowers that don't want to repay here we have tax deferred investments that now the caller doesn't want taxed. Painful? Yep. Foreseeable? Also yep.
Good point.
@@ryflyk2 I thought of that too. I bet you this guy is anti loan forgiveness saying “they signed the loan”
Well guess what, you agreed to have your taxes deferred. Time to pay the piper.
@@OhYeaMista And it's not even a fair debate, because a lot of people getting forgiveness for student loans have actually already paid on the principal. Then the interest gets egregious.
I think y'all are misunderstanding the issue. The issue isn't simply paying taxes, it's being forced to take so much money out that you don't need or want to take out, which INCREASES the tax burden unnecessarily. It's a flaw in the rules. You shouldn't be forced to "realize" money just because of age.
@@scrappynotcrappy Understood, but RMDs have been law since the 80s...it's not new that you are required to withdraw money from tax deferred accounts by a certain age, currently age 73 I believe. My point was simply stating that the "vote wrong" comment seems like a hollow attempt to play partisan politics with something that is not new and not an unforeseen circumstance.
They are talking like this is a disaster, you did accumulate the money tax deferred and you just woke up to solve this. Ok we are looking to minimize taxes but there's 99% of people that would trade places with this guy.
It's not a disaster and was deliberately and consciously done...no pity for this one...and Dave calm down
losing 2.5 million is a disaster lol.
@@mannyjeanpierre4062when you have 6, I'll take that deal!
@@mannyjeanpierre4062 Nice job leaving out the context. He loses $2 million on a total of $7.8 million in assets. Even if he lived for another 40 years that's $5 million... that's more than 5x what most people retire with. Plus he has a pension and SS...
@@Blittsplitt5 I watched the video. Who cares what others make ans 2 million is still alot of money and a third of his savings. It still sucks lol.
I'm glad I'm not the only one who was thinking "yeah, you deferred it, time to pay up." Worst case the caller is still a multi-millionaire. Good for him. Have a wonderful retirement.
Doesn't want to pay taxes but is claiming social security from day 1 and claiming every other government handout going no doubt. These people never change.
Typical boomers. Use up more as than they ever put in while we pay for it and they sit on their millions of dollars
You think he didn't pay more into SS than he will ever receive? LOL you sound like a bitter commmie.
He paid into it so what's the problem?
@@USpatriot741776 The problem? Didn't you listen to the video or hear what he said? He doesn't want to pay his fair share of taxes. That's the usual problem with a lot of people like him with money, they don't want to help others with their taxes. Selfishness.
Yah, I heard that too. He is looking for a way out of paying taxes. So wouldn’t we all if we could.
Did he not save on taxe when he put his money into those account back then? That is the contract you got taxe credit, but when you pull it out you pay your taxes then. Nobody force you into that contract. Stay true to your word and honor your contract. Is it not a part of Dave philosophy as well?
Totally agree 👍🏾
Right. That was the agreement. Gov't agrees not to charge taxes when you put the money in so it can grow faster, you agree to pay the taxes when you take it out. This is like someone trying to figure out a way to avoid paying interest on their mortgage....sorry, that's not how it works.
I'm not crying for this guy.
here's your answer: Stop being a cheapskate on important stuff. Hire a financial advisor who is a qualified tax planner, a CPA to handle your taxes and pay them the several thousands of dollars it will take to devise a strategy for you. You should have done this a decade ago, and you'd be facing far less tax concerns. And don't call into a show for free advice than can't possibly address your situation with the complexity it needs.
Amen, dude is a cheapskate plain and simple.
My thought too. Why is he calling a free national radio show whose advice doesn't give any protections if he has $6 of $7 million?
@@stevenporter863Lol that's exactly why, he's calling for free advice because he wants everything for free
It's the financial advisors that talk everyone into going tax deferred
@@laurol4342 good ones plan ahead for tax management. Pitching roths instead of just straight IRA's, for example.
To correct some things from the video:
1. The original Secure Act was signed under the Trump Administration, not Biden (End of 2019). It increased the RMD age from 70 to 72, and inherited IRAs have to be depleted in 10 years, not 5.
2. The new Secure 2.0 Act was signed under the Biden administration. The only thing relevant there to this topic is it changed the RMD age to 73, up from 72, and will make the RMD age 75 in 2033. It also reduced the penalties for not taking RMDs. It did a bunch of other stuff though.
Not that anything there helps this caller's situation, RMDs still suck, but we all have to pay our taxes.
@@theleast100seconds What changed under SECURE 2.0?
The SECURE Act eliminates the stretch IRA option and now requires most non-spouse beneficiaries to take RMDs ratably from accounts inherited from owners who died after 2019 within 10 years after the account owner’s death. The new 10-year rule applies regardless of whether the account owner dies before, on, or after his or her required beginning date (RBD). Additionally, SECURE 2.0 pushes the RBD to age 73.
@@theleast100seconds you left this part out which is what Dave was pissed about.
Agreed, Secure Act 1.0 signed by Trump in 2019. Not a Biden initiative.
@@howwhy650 Yes, with the original Secure Act, it does not matter when you die, you have to deplete it in 10 years regardless of how old the person was you inherited it from. I wasn't trying to explain everything the Secure Act did (There's a lot more in both Acts) or the full details of the 10 year rule, more just want to point out the 10 year rule he is so pissed about was not passed under Biden, that was under Trump, and I wanted to correct Dave in that it is 10 years, not 5. The 10 year rule did not change with Secure 2.0, so we can't blame Biden for that, as much as we might like to blame the current administration for everything. Comes back to, what happens in my house is more important than what goes on in the white house.
@@dr_pinna543 Yes, that is true. I wasn't intending to explain everything both Secure Acts did (There is a lot of them), or explain all the details of the 10 year rule (There is also more), more just wanted to correct the video in that the 10 year rule was passed under Trump, not Biden, and you have to deplete it in 10 years, not 5 as Dave said. Secure 2.0 did not change any part of the 10 year rule, so we can't blame Biden for that, as much as we'd like to blame the current administration for everything. Comes back to, what happens in my house is more important than what happens in the white house.
Dave: this isn’t a political show
Me: are we watching the same show?
No it's a financial show that dave wants you to win with. And in order to win. You need methods that help with that. You cannot tax someone to wealth. His comments are based on math. Not politics. That's not to say it wasn't a political motivated comment. I'm just saying it's financially in line with your goals to reduce h control your tax liabilities.
@@pdxmusl1510 he makes an awful lot of politically motivated comments. I don’t watch the show regularly, only highlights that appeal to me.
It also strikes me as odd that Dave, Mr. Personal Responsibility, did not mention that this is the caller’s fault for not thinking about this until it’s almost too late
@@pdxmusl1510 A politically motivated comment like, " those of you who vote wrong" makes the show political.
@@christie4336 Then don't vote wrong and it won't be political.
@@christie4336 it's Dave's show, he gets to conduct it anyway he wants!
These are tax-deferred accounts, so he needs to pay his taxes. It's a bummer the rates are so high, but also, those accounts made him very wealthy.
This guy deferred a ton of income to avoid paying taxes on it, and now is unhappy that he needs to pay taxes on it.
When he deferred it he was smart, wise and disciplined but now that the bill is coming due he's a victim of government.....the same government that gave him the tax deferment to begin with.
@@austinduke8876 he wouldn't need the deferment if the government hadn't threatened to take away his money in the first place, you dhimmi.
Taxation is theft. Taxation on income especially so.
Dave’s really going off the deep end. He says that this guy is getting screwed by finally having to pay the taxes that he deferred. Why shouldn’t he have to pay taxes like everybody else, he never paid them how is that getting screwed?
I think he's saying the guy is getting screwed because taxes are so ridiculously high. Paying that much money in taxes will be painful for this guy. Dave is always looking at how to pay the least amount of taxes, just like everyone else. If government used our tax money properly, I'm sure we'd all feel at least a tiny bit better about paying taxes.
@@Ag83704 yea we all hate taxes. They suck and the govt uses them inefficiently. But I pay mine, this millionaire should pay his. It’s kind of pathetic to hear a millionaire complain about paying his taxes that he chose to defer. He could have done Roth, but didn’t. He could have just done a conventional brokerage account, he didn’t. He knew (or should have) known the consequences of deferring taxes and now it’s time to pay the piper.
@@Ag83704painful? LMAO!! Yes, sitting on $6 million is so awful.
I pay my taxes and don't whine nearly as much as this guy.
Oh, thank you for saying that he should pay taxes like the rest of us. But you have to remember that Dave is using the ROTH strategy intended for middle class people, and he is worth many millions. He is proud that he can avoid paying taxes. Proud. So no, he thinks that those of us who pay taxes are not as smart as he is.
37% is getting screwed when this guy was probably never in that tax bracket his whole life.
I disagree with Dave’s blaming the government. How about the caller having to take personal responsibility. He had a choice to pay taxes up front by contributing to his Roth IRA (directly, through back door Roth conversions, or annual such as what Dave said he does himself). The caller didn’t do this. He has nobody to blame but himself. Anyone making that kind of money who does not have the knowledge of tax laws themselves should have been using a knowledgeable tax professional for years. I am a CPA and have been advising all my clients of the benefits of Roth accounts for years in order for my clients to avoid the exact scenario that the caller had. Again, this caller needs to take personal responsibility. This is not a problem with red vs. blue administrations.
Most people in this country don’t take personal responsibility… that’s the real pandemic facing us now and especially in the future
WRONG!
The Government KNOWS that the Majority of People who have a basic knowledge and understanding of Taxes NEVER wanted to nor saw the NEED for seeking an Accountant!
YOUR arrogance is extremely off putting and you should see a little outside of the Box! When a person is working hard and NOT taking vacations or barely time for sleep they are working so hard to keep a roof over their head for themselves and family they ARE working for a Goal of some financial independence and security in their later years. THEY do NOT know that all the money they have saved to enjoy a nice basic NO FRILLS retirement is going to be ROBBED by their OWN Government!!
So many Americans are NOT aware of all the WAYS that the Government taxes them, sometimes, to an early Grave!
Example:
My FIL Tired from 1st Job. Went to work part time and made good “extra” money. Keep in mind he was late 70’s early 80’s. Because he DIDNT live a Wealthy lifestyle and saved lived frugal he was HUGELY taxed in the Money earned from the parttime job!
Frankly thats NOT fair.. he did as as any other American and paid his taxes. But… because he saved had a good 1st job, was an Engineer, and asked to work part time he paid over $40,000 in taxes!
YEAH…. If you are the Basic American you ARE PUNISHED by NOT knowing how to “Play” the Governments tax Game
Dave is dead wrong about taxes and voting on this segment.
right. He had the choice to pay taxes the year he put it in. He CHOSE to defer. He has paid 0 taxes on that money. And he's complaining. The rest of us have to pay taxes.
@@mikezerker6925 yep, many are trump supporters
I don’t feel bad for him. He will be fine.
This is an annoying question how the guy thinks there should be a way he can avoid this. I pay my taxes, time to pay yours, dude.
76% of the income taxes collected go to just paying the interest on the US debt. the system will collapse soon, taxes are a joke. in the real world, not the fantasy MMT land we live in now, yes taxes are needed to run a society, but thats not the world the USA is in anymore. i hate taxes but id hate them less if they actually went to valid things like roads, defense, education, healthcare etc and its spent wisely, but it isnt, govt will spend 9B over 10 years building 1000ft of high speed rail in California, send billions each year to 3rd world Dictators, spend $60k on a bag of aircraft bushings that sell for $10 for the same exact product on the commercial market etc.
govt has no incentive to spend wisely because they act like they have an infinite money supply, and because of that the system will collapse in our lifetime due to no longer even being able to pay the interest on the debt.
35T in debt with nothing to show for it. we didnt take out a loan to turn it into something with a ROI, we took out a loan to buy strippers and coke basically
yes, and they were deferred, like umm yes if you make $$ you gotta pay taxes whatd u think was gonna happen?
@@jarrettpierce5626 when 76% of income taxes collected goes to paying off just the interest on the federal debt whats the point of taxes? this is a system on the verge of collapse
Boomers gonna boom
@@braxtonvestal777 76% of the income tax collected goes to interest on the natl debt, everyone should be asking why we pay taxes into this failing system at this point. its time to reset and re-evaluate what we're doing
Whaaaa!!! I’m rich and I don’t want to pay taxes. Top 10 worst call.
Skipping this one😂can’t relate
RMDs are not a “problem”. They are a sign you’ve done really well.
Years ago,I knew a stockbroker who would have clients complain about their taxes. When that happened, he would smile and say “that’s great news! My job is to give you tax problems.”
you are correct ......a wise man once told me better to have the money and pay the tax then never have had the money in the first place
Yep. Someone I knew didn't want a bonus because he would pay taxes on it. He didn't understand taxes at all unless, 100% tax rate.
Everyone has RMDs even if they have not done well. All they have to have is a 401k or IRA
Disagree - there's better tax planning for someone that rich. If he had allocated funds to a Roth IRA earlier - all growth in the Roth could have been withdrawn tax free.
I really love the addition of the music at 9:00. Something about the world's tiniest violin being played in the background was just so fitting in that moment.
Convert as much as you can each year for the next 7 years to Roth without pushing you into the highest bracket.
You're talking about a few points difference. Doing it all may pay higher tax but you grow tax free after that. It all depends on assumptions. Do it in one year write a check and you never worry again. Peace of mind is great.
@@JudePi-jx7yo you still grow either way so it doesn’t really matter.
You can cash out significant amounts at 24% (364k total annual income) assuming married, shielding yourself from the 37% (!) marginal rate if you do it all at once. Then you can also keep your RMD’s at a lower bracket through end of life.
Converting all at once is a horrible decision.
@@SRTBOAT no, just no!! Remember 700k pre tax a year becomes 500k post tax a year. You math isn’t mathing. Keep marginal rate low as long as possible. It’s as simple as that. Keeping at at 24% and avoiding 32%, 35%, 37% brackets as long as possible will result in a higher net worth even if you end up paying more taxes
@@SRTBOAT also if invested in stocks you can wait for a significant market downturn or recession to sell at the lows in the 401k and then convert and immediately reinvest those funds in the Roth. This will minimize taxes while preserving long term growth. You can’t play those games if you convert all at once and the caller said he had 7 years to go before RMDs
you still need to pay tax when you do the conversion. Try to lose money to pay less tax is crazy.
This needs a follow up call
Absolutely
What about given the RMD to a charity, you pay no taxes and the full amount goes to the charity?
He doesn't want to lose any money. Giving it to charity means he loses 100% of it.
Yes, but it has to come out of the IRA and there’s a limit of just over $100k. They’re called Qualified Charitable Distributions and you can start them before the RMD date.
@@otrebla8944he doesn’t want to pay taxes. Little different. Lots of rich people would rather give their money to charity than pay Uncle Sam
I’m gonna ask a stupid question, could you take a loan out against his retirement funds and never pay it back and have it go to the lending company?
@@fasteddy3336 I think he'd have to withdraw from his retirement account to pay back the loan, so he'd still get taxed as a result of withdrawal. I don't think the loan company can pull directly from his account. Of course, I could be wrong.
Pay your taxes.
yes, just don’t pay anymore than is necessary. That is the whole point of this call.
@@someoneelse6934No, sounded like he wanted it all tax free, not minimize
@@someoneelse6934Lol no, the point is he doesn't want to pay anything. Typical rich people
@@kbanghartYeah, keep your hand out of my wallet.
Move $1million per year to Roth. That will put the smallest amount in the top tax bracket vs doing it all at once where almost all of it will be in that bracket.
Indeed. He could have been doing this the whole time. You gauge the bracket you'd be in, so you're not hitting the next one, then roll over just enough to stay in the lower one. Not massively complicate...you just have to do a little homework and consult a CPA to make sure you're doing it right.
This guy needs a wealth advisor, a lawyer and a tax advisor, not a call to Dave Ramsey. I love Dave, but this is a situation that requires a detailed review of his financial situation and financial goals, as well as his estate plan and personal situation (family etc.). There are other strategies that can be employed and he probably needs a mix of financial moves done strategically over the next 7 years. Because he's also heading for the estate tax threshold, etc.
Yeah he needs an estate planning attorney.
He's outlined the trade offs. Advisors just play with the different assumptions to pretend and tell you the best option.
He also needs a psychiatrist. Or a priest . He's in complete denial of his own mortality.
Agree!! Like where was this guy's financial advisor?? Sounds like he didn't have one which is crazy to have that much wealth and no advisor or CPA coordinating this for you.
Why would anyone resent having $5million left after paying their required tax.
Because enough is never enough. This is why gratitude is important.
I hate to be this guy, but, sir, you have a lot of money for retirement. Having to pay taxes on your abundance should be the least of your worries.
From $7K to $45K that's the minimum range of profit return every week I thinks it's not a bad one for me, now I have enough to pay bills and take care of my family
I agree just reached my goal of $100k monthly trade earnings. Setting realistic goals is an essential part of trading
How does this trading stuff work? I'm really interested but I just don't know how it go about it. I heard people really make it huge trading..
Get yourself someone like Stacey Macken who understands the market very well and is also a professional in placing trades. That's the key
Wow! Kind of in shock you mentioned expert, Stacey Macken. What a coincidence!!
Stacey's understanding of market indicators is impressive. She knows exactly when to enter and exit trades for maximum profit. her signals are top notch .
The new title, Rich Guy Didn't Pay his Taxes and is Trying to Avoid It
Just read a book about this- save SS until 70 - use the tax deferred accounts early
If you run the math, your best bet in all scenarios is to take SS as early as possible, stick it in a post tax investment account and then to your point, live off the tax deferred money. Run the math at the average DJIA growth of 7% and you win every time with drawing as early as possible.
He said he's already taking SS ($3,600 a month)
@@jeffb.4800 wasn't taking about the caller, but the OP. He said you should wait until 70 to begin distributions. If you're not going to use the funds immediately, the math tells you differently.
Dave forgot to tell him that when you convert to Roth, it has to be in the account for 5 years for the earnings to be tax free
This is funny to me because he has gotten the tax breaks for his entire life with the traditional 401(k) or IRA investing, and now it’s finally all piling up at once
Yup, he waited all this time to finally start thinking about it.
I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024.
Since risk is at an all-time high right now, perhaps you should be a little more patient and return when it has decreased. Alternatively, you can consult a trained financial expert for strategy.
Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
Angela Lynn Shilling is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I searched for her full name online, found her page, and sent an email to schedule a meeting. Hopefully, she responds soon. Thank you
Got nothing to do with voting....he chose to defer the taxes
Allowing people to invest tax-free for 30 or 40 years and then trying to find a way to not pay the government… typical boomer.
Poor people pay taxes, so pay your fair share.
Pay. Your. Taxes…period !
Cry me a river. A rich person having to pay taxes. Boohoo.
"You people that vote wrong, you should be ashamed of yourself." hahahahaha! I might steal that one Dave!
lol didn't Dave say he was turning down the political rhetoric.
What rhetoric? He spoke facts. Taxes are higher for those in the callers tax bracket based on Biden’s changes. How is that rhetoric?
You built your top level money by NOT paying taxes. The bill is due. Stop complaining.
You're 66 with 7 million dollars. Unless you're spending money hand over fist or literally lighting it on fire even after taxes you'll have more money than you'll ever know what to do with.
Not the point. He saved his whole life only to be screwed by taxes becasue like Dave he didnt pull his money out sooner - so it will cost him 2.5 mill. This will help a YOLO out .
It’s his money. Not yours and not the government. You missed the entire point
He spends decades tax differing his taxes and is upset now that is a multi millionaire and have to pay taxes.
@@wreckers_band8825Do you pay a cent more than what the government tells you you owe?
No you don't. Why should he?
It was going to cost him 2.5 million no matter how you slice it. This is about RMDs not taxes. @@clarifyingquestions
Thats why you get Roth 401k and Roth IRA
It's up to the company you work for to offer roth 401k.
@@otrebla8944 I've been blessed working in banks. They always offer Roth.
@@otrebla8944 But then you can open a ROTH IRA outside of work and max it each year so you have both.
@@otrebla8944 Why would a buiness not offer a Roth 401k if they have a traditional 401K even if they do not contribute?
@@semicron5159 my company did not offer a roth until recently. It's still up to your company to offer it. The individual has no choice in that matter if it is not offered.
Good lord, Dave - it's not a shame. He didn't pay taxes on the money he put away for 40 years. That's why those accounts are called tax DEFERRED. Geez.
Dude pay your tax and be thankful for living in the greatest country on earth
Unbelievable mentality!
So sad
Donate your money dude. Write it off. Id take the hit and convert to a ROTH and enjoy the rest of my life and have the headspace back.
This is not a tax problem, this is just paying your taxes. You got to take your money and invest it tax free with the promise that you would pay later. You are going to pay 25%-30% no matter what. Just transfer it and pay it.
If he's worried about his kids, move it all right now.
I guess I don't understand the problem with using the required distributions. Then you could always reinvest the required distributions into a Roth, yes there's tax implications on all of that I'm sure.
Definitely a rich person problem
The issue is he will be forced to pull large sums of money out. I used the rmd tax calculator. It's around 300k at the minimum and will exceed a million if he lives long enough. Forcing him to pay taxes on money he doesn't need and exposing him to very complex tax possibilities he doesn't want. And moving the rmd to another investment doesn't solve the problem.
Say you own a 400k house and you need to move across town. So you sell a 400k house and you buy a 400k house. You don't really lose anything in the transaction except maybe some origination fees and realtors fees. It doesn't cost a lot to do this because there's a tax exception on your own personal house. But if there wasn't. You'd have to pay capital gains and unless you've saved quite a bit of extra money. You not selling and buying an equivalent asset. The move likely lowers your investments.
In this case the tax is meant to punish you for your hard work and attempt to push you back to a lesser standard of living. When really what tax should be for is not a punishment. But as a way to fund the government and it's services. Its like grading on a curve in college. You worked hard and got an A. But you get a lower grade instead. Maybe a C instead because of disproportionate grades. Only.. in this case it's not the super smart people dragging down your grade. It's the super poor people. The ones who got Ds & Fs. Imagine if your professor said your 100% is too high. So I'm going to give you 70% instead because we don't want the people failing to feel bad. It's pretty absurd.
@nathanjohnson7237 You cannot move your RMD into a Roth.
Just pay your taxes! You're still a multimillionaire! And you didn't pay taxes on it for 40 years.
Dave needs to stay in his lane and leave the politics out.
@@BrianMiller1973 except that the secure act 2.0 signed by Biden eliminates the stretch IRA option and now requires most non-spouse beneficiaries to take RMDs from accounts inherited from owners within 10 years after the account owner’s death. The stretch option would have allowed the beneficiary withdrawal over the course of their life instead of the now 10 years.
People who work hard and Sacrifice to prepare for their future and Retirement are ALWAYS PUNISHED by the IRS for NOT crawling on their knees their ENTIRE life to the Government 😡😡
Poor thing, he has millions but has taxes to pay 🙄
I wish I had his problems, wow! 😮
Rich guy problems. Finding ways to avoid giving the government your money.
Something to pursue perhaps?
Found the poor
Nope - a hard working saver problem.
Seriously.....oh my, you'd actually HAVE TO PAY TAXES ON YOUR INCOME OF $7 plus Million dollars. 🤨. The rest of us are crying for you.
"Your money"
You know why people dont wish to
Give a CFP about $10-20k to run simulations and set up an actual estate plan, this is what they do for a living.
You didn’t pay taxes on it. You knew one day you would have to. You aren’t paying penalties man up.
Ya must be so hard with millions
They taking about living and giving, yet they hate paying taxes. Makes no sense
@siva47931 , taxes aren't charity. Charity is giving.
@@inkw4n-nd5iw taxes help the less fortunate. It's a form of giving
@@siva47931, you get no moral credit for doing something the government forces you to do. You only get moral credit for helping the less fortunate by reaching into your own pockets and giving yourself voluntarily.
Besides, taxes helping the less fortunate is a brainwashed delusion.
Stupid government when a millionaire is taking someone’s social security check.
Exactly, he needs SS, like he needs 3 more a$$holes!
Sorry he paid into it he should get it back. That was an ignorant comment.
Except for the potential need for extended health care in our later years, I cannot imagine any need for all that money, and leaving it to our "heirs" will just cause fusses and wasted money. Give the heirs to the limit you can yearly while you are alive, look for worthy needs to donate to, and pay what the government says you owe (meanwhile, vote and campaign for folks in our government who do not punish those who save!!! )
I mean losing 2m now for 10m with no tax is absolutely a win.
Great job on retirement savings, but this is exactly why roth accounts exist. You have no idea what taxes will be like when you get to retirement age, but chances are they will be higher than when you were contributing to the accounts. Uncle Sam is going to get his cut, so pay him up front.
When RMDs kick in you can QCD $100,000 per year. That’ll help avoid unwanted income!
There’s something pathetic about hearing a literal millionaire complain about finally having to pay his taxes after deferring them for years. Ramsey should have just said yea, this is how it works, time to pay the piper.
And that's the plain truth. 👍
I’m okay with him having to pay for the roads and public services he used. I’m okay with him paying 30% of his money to pay into the school systems his family used. I’m okay with him no longer hiding from his civic duties. Pay the taxes and move on, sir.
He still did through his income taxes, property taxes, sales taxes, SS taxes, Medicare taxes, and I'm sure others I can't think of off the top of my head. It's not like was able to dump all his money in these accounts to avoid all taxes this is just his savings. Oh i'll add the hidden tax of inflation due to government overspending to the list too.
Take and spend it now. You are 66 dude. I just don't get it. I think people like us are just accumulators and we need to have a mental shift to spending it down.
No leave the next generations with financial freedom. Never again will a generation need to be so frugalistic. They will have a better standard of living
@@Youcanatme Most wealth that's left is gone within three generations anyway look at The Vanderbilts. Unless he sets up a trust eventually that money will be gone anyway.
@@djpuplex I was getting ready to post what you posted. Also look at aristocrats and royal families around the world. A lot less aristocrats and royal families due to that.
Except millennials and Gen Z are doing worse off than Gen X and Boomer at this age? Wdym we're doing better...?@@Youcanatme
@@domega7392 😂
where was this guys financial advisor all these years? I hope he was warning this caller of this situation
Jade: "So do you have any debt?" "Have you heard of the baby steps"
The newly minted Americans coming from the south every day say, "Gracias, Amigo!" to this caller for the $2 million.
Exactly. So many people falsely think it's a "fair share" for "roads and bridges"
If you’re paying taxes, you’re making money. He chose tax relief earlier in life, stop bitching.
The first step is call whoever has your money ask for a full Redemption and even see if he has your money.... you've been reading numbers on paper for all these years...
Taxes are the price we pay for a civilized society. - O.W. Holmes
I put pre-tax money in my IRA and because I was rich enough to do that, I should never have to pay taxes on that money? I'm not sure that I understand why that's so.
Pay your taxes. As an avg American I have to pay. Why do you guys not get to pay?? It was due no matter what! Yes, our government sucks with cash. But, the USA is a solid country. Part of that credit goes to the government.
Just pay your taxes! What a jerk to try and escape paying your taxes!
There is nothing immoral about tax avoidance or tax evasion.
Just pay your fair share. I have no sympathy for whiney rich people.
@@AliciaMcIntire they pay more than their fair share. You quit whining.
Schools need to get paid for
Millionaire telling us we should be ashamed because THEY have to pay their fair share of taxes. That's fucking rich 🤣
How dare you grasp for that ladder as they pull it up.
It's not a "fair share" it's a much higher percentage than the average person. It's closer 50%. That's saying he was a slave half his life.
@@thedopplereffect00 uh, the tax rate caps out at 37%, meaning if he cashed infinite dollars out of his tax deferred accounts, the most he could possibly pay on anything OVER 600k, would be 37%.
Never even approaches 50% and that's only because he was a fool who didn't manage his money to stay under the 37% tax bracket in prior years.
@@oldfredbear you forgot the Obamacare tax, the sales tax, the state tax, etc. it's easily far more than 50%
@@thedopplereffect00 you don't pay sales tax for taking a withdraw from your 401k. Also state tax is a fixed percentage that doesn't change with the amount he's withdrawing. Also at his age he's getting Medicare, not "Obamacare". So again, the max he'll pay for his withdraw of infinite dollars would only approach 37% plus whatever applicable state tax percentage he'd pay, which doesn't float.
Just pay the taxes...
You have 7 million in the bank.
Yeah making rich people pay taxes is horrible.
It IS horrible. Think of all that goes to fund wars. Read the booklet War is a Racket by General Smedley Butler.
Making anyone pay taxes is horrible
What’s the point of all that money if he is living off his social security and pension less than 5k a month and stressing so much about the taxes. You benefited from tax deferred accounts and tax free compound growth and now stressing about paying the tax 😮
The problem will only get worse with time. Convert today and be done and you won’t have to be thinking about it year after year after year. IRMAA issues go away. RMD issues go away. Kids tax issues go away. Converting now is a gift to his kids. Be done. Pay the man. Move on with your life. And please spend and enjoy now. Gift to your kids. Spread your blessings. College funds. Vacations with your family. Enjoy your life!
Plus, all future growth is tax-free. Hold your nose, convert, and pay the taxes before the current rates sunset in 2025.
Vote correctly to lower your tax bracket.
Voting at all is voting wrong.
"This is what the government does to people like us!" All 20 of you?
I'm poor and paid taxes on my income all along. Why don't you have to pay taxes on your income? This is only deferred income tax. You still will have millions to enjoy. This country's government is not perfect, but patriotism includes paying the bills.
Let me get this straight you deliberately put your money in a tax deferred account knowing you’d have to pay taxes when you withdraw the money. Now when it comes time to pay taxes, somehow you voted wrong. It’s not like they changed the rules, you just hate they apply to you. Now here is an example of them changing the rules 1983. They decided to tax Social Security and who did that Saint Ronald Reagan.
And the stretch IRA was actually eliminated during the Trump Administration, so can't blame Bidenomics for that one!
Take the victory lap and pay your taxes.
For decades I heard financial advisors say that you will be in a lower tax rate when you retire. BS! If you are saving and investing your whole life, part of the justification is that you want to be in the highest tax bracket.
You won!
That said, you can take your RMD directly to an approved charity, and it is not counted as taxable income. Check out that option with your broker or financial advisor
What you do, contact the Clinton foundation 😂
Bill Clinton was president when the Roth IRA came in to existence.