Exactly. Well done Drew. That is what I describe to people when we speak of the rule of 55. Rollovers can be used but need to be done right. 55 for the win. I also include things like pensions as part of the "forever" cash bucket. Also, Amen on the part time work. I can't imagine being completely retired at 55 but I do want to quit the rat race and scale my hours way back to something more enjoyable but still challenging and rewarding. I figure take the first 6 months off and then reevaluate where we want to go. Thanks Drew.
I'd caution anyone reading this to avoid high turnover mutual funds in that taxable brokerage account, we have found that even though we didn't buy or sell anything in our taxable brokerage account in 2021 we still ended up paying taxes on over $10,000 in capital gains distributions because of the turnover inside the mutual funds. We plan on switching to ETFs which generally do not pass those capital gains distributions through to the investor.
I sold my company so the 401k plan had to be shut down. Looks like I should have rolled the money into the new companies 401k instead of rolling into a IRA with Vanguard if I want to retire at 55. Iâll check into the reverse rollover.
What are your thoughts on rolling your 401k over to your IRA and then inside the IRA buy a deferred or immediate guaranteed income annuity instead of drawing down your balance over your retirement?
We use annuities in our practice. You have to be careful with any investment purchase. Make sure it fits your specific needs and goals. Keep the fees low or at zero. And always consider liquidity. Let me know if you have further questions!
Drew, you are incorrect about the 72t SEPP at the 6:57 mark. You can not take less, its an SEPP you can not change withdraw amount from yr to yr. What you start with is what you end with otherwise you WILL pay a 10% penalty plus interest going all the way back to the start of the plan. You can change the "method ie RMD, amortization or annuitization" only one time but you can not change the amount. If the series of SEPP is subsequently modified (other than by reason of death or disability) within 5 years of the date of the first payment, or, if later, age 59Âœ, the exception to the 10% tax does not apply. www.irs.gov/retirement-plans/substantially-equal-periodic-payments#7. Otherwise this is another great video Drew. Keep up the great work. đ
John thanks for the comment. I should have been clear and said, "If you are using the RMD payment schedule or if you run out of money for the 72T." Appreciate the heads up.
Do u only plan on selling assets for income? What if you just plan to live on the dividend income from a portfolio of high yield 7-9% from BDCs MLPs REITS CEFs and income ETFs? I kno some people retiring very young like before 50 and with a lot less networth
Thanks for the video. Hoping to retire earlier than later. 55 in 4 months but health Insurance might keep me working. What if I retire but go back to same employer?
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Exactly. Well done Drew. That is what I describe to people when we speak of the rule of 55. Rollovers can be used but need to be done right. 55 for the win. I also include things like pensions as part of the "forever" cash bucket. Also, Amen on the part time work. I can't imagine being completely retired at 55 but I do want to quit the rat race and scale my hours way back to something more enjoyable but still challenging and rewarding. I figure take the first 6 months off and then reevaluate where we want to go. Thanks Drew.
Thanks Ray! đ Really appreciate your comment and engagement!
I'd caution anyone reading this to avoid high turnover mutual funds in that taxable brokerage account, we have found that even though we didn't buy or sell anything in our taxable brokerage account in 2021 we still ended up paying taxes on over $10,000 in capital gains distributions because of the turnover inside the mutual funds. We plan on switching to ETFs which generally do not pass those capital gains distributions through to the investor.
Great advice!
First comment woohoo....good video. Keep the financial education coming
đ„ Thank you for the comment!
I sold my company so the 401k plan had to be shut down. Looks like I should have rolled the money into the new companies 401k instead of rolling into a IRA with Vanguard if I want to retire at 55. Iâll check into the reverse rollover.
Great idea! Thanks for the comment.
I learned something.
What are your thoughts on rolling your 401k over to your IRA and then inside the IRA buy a deferred or immediate guaranteed income annuity instead of drawing down your balance over your retirement?
We use annuities in our practice. You have to be careful with any investment purchase. Make sure it fits your specific needs and goals. Keep the fees low or at zero. And always consider liquidity. Let me know if you have further questions!
Drew, you are incorrect about the 72t SEPP at the 6:57 mark. You can not take less, its an SEPP you can not change withdraw amount from yr to yr. What you start with is what you end with otherwise you WILL pay a 10% penalty plus interest going all the way back to the start of the plan. You can change the "method ie RMD, amortization or annuitization" only one time but you can not change the amount. If the series of SEPP is subsequently modified (other than by reason of death or disability) within 5 years of the date of the first payment, or, if later, age 59Âœ, the exception to the 10% tax does not apply. www.irs.gov/retirement-plans/substantially-equal-periodic-payments#7. Otherwise this is another great video Drew. Keep up the great work. đ
John thanks for the comment. I should have been clear and said, "If you are using the RMD payment schedule or if you run out of money for the 72T." Appreciate the heads up.
Do u only plan on selling assets for income? What if you just plan to live on the dividend income from a portfolio of high yield 7-9% from BDCs MLPs REITS CEFs and income ETFs?
I kno some people retiring very young like before 50 and with a lot less networth
Jean, to me that is pretty risky.
Thanks for the video. Hoping to retire earlier than later. 55 in 4 months but health
Insurance might keep me working. What if I retire but go back to same employer?
You mean with the rule of 55?
@@yourfinancialekg yes
@@garyxyz4400 They only info I can find says that no it won't work it you go back to same employer.
â@@yourfinancialekg
Thanks