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31 replies
  1. Ted L Nicholas
    Ted L Nicholas says:

    What if I need 28k a year and withdrawal the first year 28k plus 20% withhold for tax . Next year filling taxes I should get back my 20% because we are family of 4 so ends up 0% tax every year..

  2. Joan B
    Joan B says:

    Hey Josh, Good stuff. Can you re-run your numbers with the following 2 scenarios? -Collect ss at 67 with a 5 year annuity at 62
    Collect ss at 70 with an 8 year annuity at 62.

  3. Joe the Computerguy
    Joe the Computerguy says:

    If you ever want to run a real single person through that as an example for you watchers let me know. I "retired" at 52 (2 years ago). I ran all sorts of numbers (even built a spreadsheet basically by year) and am pretty sure I will be good. I also used a lower S&P return as more of a safety valve for me. I am also living (quite comfortably) on less than I thought I would traveling the US in my motorhome.
    Love your channel either way.

  4. Sergio Santana
    Sergio Santana says:

    A paid for 400k home will support the same 12k you will receive from the annuity the only difference is that by utilizing housing wealth the 250k that was used to purchase the annuity can now be left in equity's earning 7.5% over a 30 period this will grow to over 2mill …..this strategy only works if you believe that your home is an asset

  5. Scoob E Doo
    Scoob E Doo says:

    Annuities just seem like they aren't worth the effort anymore. So many options and such low rates of return. 15-yr certain (not lifetime) give 2.18% return – that's almost keeping up with inflation. A CD ladder would work better, even with the current interest rates.

  6. Harry Langley
    Harry Langley says:

    Harry's Strategy. Has a nice ring to it. HEHEHE. Thanks for making a video of this. There is another plus to this strategy also. If your use to saving money most of your life this allow's one to maintain that habit once retired. From what I understand it is somewhat difficult to start spending money once retired after you've been saving for so many years. (I'll find out soon enough myself).

  7. Dave Brock
    Dave Brock says:

    The videos like this one are really useful and educational. I am using the software and each time I think that I know it all you teach me another trick or introduce another idea for me to consider. Great video.

  8. JD Thompson
    JD Thompson says:

    This looks good! Two questions I would worry about a little. What if tax rates skyrocket in the future? What if the annuity company goes upside down or SS is decreased or taxed more— in other words is guaranteed money really guaranteed? Still I guess it is much more safe than the stock market returns!

  9. cutehumor
    cutehumor says:

    If we had a bad decade after retirement and 401k/IRA are dropping so fast, I would take social security at 62, even though I have planned at 70. So the markets will recover from a deep recession. I think many folks in retirement around 2008/2009 did the same thing. Took social security earlier than wanted to because of a job layoff, and no one was hiring a 62 year old in 2008/2009.

  10. Tom Major
    Tom Major says:

    Would it work better if you did small Roth conversions of the $250,000 left in the IRA?  And lastly, isn't the investment account inside an IRA but the cash account is a checking account outside the IRA?  How can you put money back into an IRA after you have retired…

  11. Kevin Huff
    Kevin Huff says:

    Seems to me a vital bit of information that is missing from most plans is the bare minimum amount needed to scrimp by. With that number you take enough cash from IRA to fund an annuity that bridges from retirement to full social security. This plan keeps you living indoors. The rest allows you to live a nicer life. If the market tanks you ride it out. Maybe take a part time job if you need to.

  12. Ross Macintosh
    Ross Macintosh says:

    Joshmeister, in this and the earlier video you simplified by taking your home out of the picture. I'm left wondering what benefits selling your home at, say, 70 and then renting from then on. In that I'm thinking you'd see a the home equity invested (or another annuity) with income that would more than pay your rent and allow you to send Pablo to university.

  13. Jeff Raines
    Jeff Raines says:

    Josh, try including the investment in the plan with 1 share along with the cash account. Maybe the software will roll over the surplus in later years into the investment account

  14. Ross Macintosh
    Ross Macintosh says:

    Are there any annuities that can pay out more in the early years and then less as you're older? If not I suppose you could ladder a few smaller annuities with differing income distributions.

  15. Ben M.
    Ben M. says:

    In the past 9 years, we have 3 years 2010/2011/2016 with no SS COLA's and in 2017 we had a 0.3% Cola year. We will see more of this in the future, SSA is giving folks false hopes on using 2.6% in future dollars. Again, always forecast on the low side when planning for your future retirement.

  16. Ben M.
    Ben M. says:

    Your Spouse should be receiving Spousal Benefits which is up to 50% of your SS retirement, if your FRA is $2,500 if she waited until her FRA she would get $1,250 together that would be $3,750 before Medicare is taken out of both spouses….

  17. Ben M.
    Ben M. says:

    If the Annuity isn't paying at least 2% it's not worth it in my opinion inside an IRA, I would rather use a mixture of CD's or high 2.5% or better Government guaranteed Bond. Or keep it in simple money market account with an interest rate of the annuity.

  18. Ben M.
    Ben M. says:

    I would only calculate 1.8-2% COLA's for planning purposes and $2,500 a month FRA, this years COLA will come out between 1.6-1.8%. Be careful betting on Future dollars of SSA benefits just in case they don't work out….

  19. Mike Schott
    Mike Schott says:

    Josh, great analysis…. your scenario (and all scenarios) always have the payouts
    based on a YEARLY withdraw……. how do the $$$$ change if you figure MONTHLY withdraws. I would guess this would give the average scenario a much better outcome in the long run…. Your thoughts?

  20. billyrayband
    billyrayband says:

    I am all for using IRA in early retirement, but I would not burn more than 1/3 of the balance by age 70. If you are, either retire later, or take SS earlier. I would freak out if my IRA dropped that much in my late 60s. I would rather bet on the sure horse SS for income.


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