When to Pay Off Your Home, Retire, and Do Roth Conversions - 503
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When should jack and swan in florida pay off their home, retire and convert their savings to rob for a lifetime tax for investment growth? Jennie colorado wonders whether he should take taxes in the account with calculating her expenses and whether SHE should pay off her home to be debt free and retirement.

That's today on ur money your wealth podcast number five o three plus should Kevin in Scott dale collect social security and twenty twenty five or postpone and do rock conversions over the next two years? Should skip in texas, do raw conversions to the top of the twenty four percent tax bracket instead of the twenty two? And just how closely will big brother watch his state of residency if skipper buys homes in florida and another location for his retirement?

Harry tasker, minnesota s wife Helen says he needs to continue working. Is that a true lie? Harry asks joe pig out the spitball on whether he and HEllen can stay home during their google years and can the tub raters afford to spend one hundred and twenty thousand dollars a year in retirement. I'm executive produce your andy last with the of your money, your well, jill Anderson C, F, P and bigger copes C, P, A to ask your money question or get a retirement. The analysis of your own, click ask, join big on air in the epson description, and send us an email or a priority voice message .

like this one already be ma request from jack sixty one and sone fifty seven in florida. We've listen to your show, the podcast over year, and checking out some of your shows and youtube like the show, educational and entertaining. Okay, he drinks a sweet man, Scott, ever now and then, but mostly water.

I regularly drink whiskies and dark ruins. Mary are. But why is all the room gone? He drives two thousand nine mercies.

M, L, and I drive a twenty fourteen. C, D, C. Three hundred have high miles. We're going to try until they drop. And probably you've got a new vehicle and I are you 所 okay combine saving tax advantage six ninety two k rock one seventy after tax 3AK my pension， thirty cp per year with no cola I get this and sixty five thinking of taking this with one hundred sense about the ability for her.

My come one ten per year herds is one twenty per year expenses, which does not include the one point nine per per month. P I is about seven thousand per months. That's what a 4k per year I always valued at six forty five k with standing mortgage at two eleven k two point five percent rate and love this rate。 I love this home would be used for her long term care, all right.

So we're thinking of both retiring and at the same time, which is our baseline plan, sixty five and sixty one. We planned in doing s. sa.

At sixty seven for me and sixty five for her. Here are the three questions, should we pay off the home in four years or now or not early at all? Second question, to retire now or wait until sixty five and sixty one baseline plan that we have.

And of course, knowing the answer, what here IT is anyway, do we do any rough conversions at all? Thank you. Looking for two years once. Love the show. I said that, right?

Wow, that checks. Got a lot of personality.

Don't like what voice you know .

what that kicks us up. He he might maybe he's A A fellow podcasting .

with that voice in .

that personality yeah well, just do a little math here. So they've got about one point two million right now, which is fantastic. They're spending about one hundred eight thousand.

And if they retire right now, this is a course well before social security. Uh IT would be a nine percent distribution rate. So I don't I don't like retiring net as an ant go with the baseline at working in other four years.

Um i'm not sure if we even got social security figures. So we don't we can't really talk about that. But yeah, I would definitely I would I would work the I go back the baseline work for years.

I would not pay off the home mortgage at that interest ate. I love the mortgage. I love the right keep IT no need to pay that off really. And rough conversions, of course. What what do you think, jeff?

Yeah, I was so lost. I was just you.

You were just cut .

in the time. All gone really starts going to the numbers. I at least I said, biga, you're taking no. So yeah, yeah, put a punt on this one.

Yeah well he's got um out of the one point two million uh will call IT seven hundred thousand and and tax defer call IT almost two hundred thousand iraq and call three hundred thousand and and not qualified so uh assuming he's got decent social security in his wife, uh probably be and what is currently that twenty two percent racket in the future i'm guessing um and um so yeah but I wouldn't do I wouldn't rock conversions until they retired right now. I think the in comes to I way tell you retire if if you infected the retired four years that would be the time .

to think about IT. yeah. tell. agree. All right.

Uh, let's watch gears. This got to Jennifer from colorado. SHE goes high.

Andy, not sure from spilling your name correctly. sorry. I love the shields. fabulous.

Quick question, when you all quote people's budgets to this, assume they are including their taxes in the number. thanks. Makes a big difference on the uh depends.

Sometimes people say excluding tax and some people say including tax. So but in most cases, when you're doing your own calculations, I would exclude tax. Just look at your I would say besides um property tax but not federal state tax yeah I keep our .

federal state tax. The reason we think that way is you have some measures of control and your income taxes, federal state where you don't have really much control over a lot of other stuff, like property taxes, like mortgage, like you know, household expenses, food, transportation. And so for with taxes, you do have some ability to control IT.

Now percent people jail is easier than others. People that have big pensions and social securities and not much savings that they don't have much, much ability to save taxes because of solicitation income, but those that have saved a outside of retirement or even inside of retirement and can consider of conversions in the tax free income for lower rates later. And that's that's where you can make a big difference.

Well, yeah, I think the the biggest thing in regards to your retirement strategy is, is finding the way to control the taxes as best you can. And so having tax diversity is a key component of that, making sure that not all of your eggs are sitting in in a basket that is going to be tax and ordinary income rates.

So if you have a pool of money that tax at cap gains, if you have a pull of money that tax free plus your tax to put account that a tax ordinary income now, then you can control the distribution on how you're pulling from those accounts that potentially could keep you in a lot lower tax bracket long term if you weren't diversey from a tax perspective. So I think sometimes people lose sight of they asked, what should I do? A rough conversion is like the main reason why we like rough so much is because you get the driver, the diversification from a tax perspective on your retirement income strategy.

So many people in, if you've listen to the show for anyone of time, is that the bulk of their assets are sitting in that retirement account because we do what we're told IT. It's easy to save in the four one k you get a nice tax eduction. You get the tax to for I love IT, but for those of you that saved very well and have other fixed income sources now you have this big pool of money sitting in attacks to her account.

It's all gonna tax at ordinary income. We hear all the time that you're going to be in a lower tax bracket and retirement, and that is true for most. Don't give me wrong, that is true.

That rule of dumb works for most people because most people haven't saved a lot of money and especially their retirement account. So the majority of of the population will be in the lower tax bracket in retirement because what's the latest statistics of you know average baLance or what's the medium baLance of a retirement account? You know it's a few hundred thousand .

box yeah two hundred, two fifty, something like that. So we know a lot of people are going to be in a low bracket, and that's joe, that's the average of people that actually have retirement account is like according to a third of the people that have no savings at all. So yeah, a lot of people will be in a very low bracket. But a lot of folks that listen to this show are listing because they have saved a little bit more than they what they're curious about the strategies that can help them.

We got Kevin from Scottie azzo a rights and it's like, I am single, newly retired and sixty six years old, thirty two three point two billion dollars investing in the market, got five hundred thousand and dollars in kash million pretax, hundred, fifty, hundred fifty H C. Two hundred thousand and dollars in inherent to ira got dividends in interest annually of eighty thousand. Kay, where's the eighty thousand of interest in dividends coming from?

I think well, if you add up what he told us it's two million, then he said he had three point two. Maybe there's one point two million of not qual my idea, I drive twenty .

fourteen hundred honey in enjoy crafts beer. Should I draw curd twenty twenty five or postpone until in da conversions in twenty twenty five and twenty twenty six? Thanks you.

Um okay, so we're little sparano here. So he single, he just retired. He sixty six, right three three point two million in the market. So I look at five hundred, post one is one point five, post two is one point seven.

Yeah IT is up to two.

doesn't add up to three point .

two I think is I think he's admitted as non qualified account, i'm guessing .

so do you think he looks at the non qualified account is just an income verses of baLance?

That's what I would guess, right? Because he gave us the income from the account, not the baLance of IT. And the income is currently eighty thousand in interest and dividends .

distribute or let's say two percent dividend, no interest. Having four million could be a lot.

But he said he had three point to investing in the market, which presumably includes .

a pretext you just retired yeah now the math is off conversions. He's got eighty thousand dollars of interesting dividend. So that's in the fifteen percent tax well no um he's so some of that it's gonna a taxi camp gained so he's already the threshold given the stand auction city diversions.

You got a million dollars pretax. I don't know when he spends yeah that spends eighty thousand one hundred thousand dollars IT might make sense to do a little conversion. Got another ten years roughly for arms to hit so that could be two million. That's gona give another eighty thousand dollars of an RMB on top of the eighty thousand hours of interest and dividends on top of the so security that could pop up in higher.

And yeah, I I think that makes sense. And I think at least for well, he says twenty five and twenty six, I would say for twenty twenty four and twenty twenty five, as we know the tax rate is to be lower than we don't know yet about twenty, twenty six, they're scheduled to go back up to higher rates. So we will just have to see yeah.

you just tired. So depends on what to say. Come on this here.

What's this that best to maybe is that comes too high, but at any rate, I would certainly do IT for twenty twenty five. What I would go up to is probably me personally, assuming that he's got all this money in now qual, which IT seems like he does. He's got the money to pay the taxes.

Maybe I go to the top of the twenty two percent at least maybe even consider more. But um then as far as yeah so we'll make that assumption is that comes too high for twenty twenty four. You do IT in twenty twenty five, twenty twenty six. We're just going up to way and see what happens with the tax rates.

So would you um so this is the hard part for people. Is that or actually I delay so security I sixty six, I can see my so security chat coming in. It's gonna give a fixed income.

Should I delay that? Well, you're going to get an eight percent delayed retirement credit. So depending on what your longevity is doesn't make sense to push that thing out. You might even want to push IT out to each seventy, clear this late tax for income for the next couple years depending on what happens with tax brackets, and then continue to do the conversions and take your so .

security at eight seventy.

But yeah, I just for people to deal. Most people, I mean that the advice of the advisers, but I would say probably a very small percentage of people actually do IT.

Yeah I agree with that. I think that when you're single, a lot of IT depends upon your health and your year what you think is your life expectancy. Like if it's certain for any reason you might take IT earlier. If not, um you might push IT out just because then you get a much higher in cameras to your life course no one knows, but right that's the hard part. But I think most people in the middle of sixties have a sense of and my average above average, below average.

Where am I at IT? You wait till seventy there.

but I wait until seventy myself. yeah.

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I think that there's a chance it's the same generation y that asked about whether or not you should include taxes in her budget. I think that was a prey question for this one.

sure. right? So Jennifer.

she's recently returned from the military, relocated and i'm buying a new home at the age forty eight. My sport and I make roughly foreign thousand dollars per year, which one hundred thirties of military retirement in eighty two of that is not taxable. We currently spend around two hundred ten thousand dollars on Mandatory in fun expenses per year, including the mortgage.

We have roughly eight hundred thousand dollars in rough accounts and a million dollars in a traditional defer account. I contribute to my company's routh foie N K. To take advantage of the company match. I contribute .

hundred and eighty five ah sixty .

five company contribute sixty five per month. Other investing is currently paused to build up our down payment on the new home due to the high amount of guaranteeing income. We keep our retirement account in the mass that s and p and similar mutual ets to maximized returns.

Question for your spitball are mortgage for the new home at one point one million is at five point four percent. Should we stop all additional investing to paid on the mortgage as fast as possible to be debt free and retirement? I'll keep investing into the permanent cator.

We receive my company match, but all other access income should go towards the house. I like the idea of being market three before we tired about ten years. I really enjoyed wine variety appears in a whisky meat. But I know at the same time ah I drive a twenty twelve many, then you still make many dance twelve so yeah I don't know. I have been heard of a twenty twenty .

four minutes. I would have thought with two .

kids you'd already have one yeah my my parents have .

I grew up the get IT .

and twenty two thousand and eight g brangle. Er, I had A G pranged ler.

Yeah, I remember I don't .

plan to buy any new cars until our Youngest down is old enough to drive in about four years. At which point you will enhance one of the two older cars. And if they still and if they're still running and your dcs while walking my two labor doodles, labor doodles.

labor doodles .

never do again. Um okay well first well thank you for your service. Um a lot of great fixed income here hundred thirty thousand and eight eighty two thousand and that is tax free. So they make four handy big five twenty four percent interest rate on the house step accelerate paying that thing up or what do you think? Uh.

I wouldn't I you know it's it's a great rate computer what they have been said two, three years ago. But compared to history, it's actually not all that, that i'd rather have them keep up savings and watch the interest rates if they go down and refinance later. That's that's what I would rather have do. I think yeah.

if you want to pay IT down in a million, I don't think you can write off anything over a million. So um so they get one point one so maybe one hundred thousand and doors that you pay off a little IT more rapidly just because well, the people on them .

yeah well tax update the new rule seven hundred fifty k yes, yes, right.

What is that? That already .

started a few years ago. No boy. Yeah yeah. So anyway, but yeah, I mean, that's a good point. I mean, certainly the higher parts would make more sense to pay down because unite getting a tax break. But yeah but here's .

what we see is that you want liquidity, five point force, not awful. I mean, we've seen interest rates double digit IT.

So if if you're taking every last dollar and thrown IT into the house, you know you're going to have a paint off house but you you're not going to have any liquidity and if all your money is in a retirement account, I don't know I like the baLance um yeah I would continue to have build up your savings, build up your program account. Now let's say that builds up to a million dollars. Well, you can always pay off your mortgage. You can just kind of check at that point. So um I like to have the opponent first is just throwing everything um you know with the kitchen sink there at the mortgage yeah and .

I would just say one more thing if IT if IT feels good, go head and make a couple hundred dollar extra payment per month or whatever, just just don't go all and that's that's how I would .

think about IT that's kind of make her feel really good. Couple extra other box a year.

No, no prepayment.

Are you alright? You are whatever.

yeah.

okay. Good, good luck with that. We got andy, joe, big l skipper, here back with the question I ever heard you cover much the impact of state taxes.

But first, love the show. All right, thank you. Try listen to other financial podcast, but found them all to be very dry, breach and or overproduced. What would we try to keep .

IT under producer want .

to keep this thing simple as pie. Love the conversational town of why am I W A rather listen to a five year old, why am I W episode than a current episode of any other financial podcast. Keep up the great work.

Relevant information. Here we go. Wow, a five year old. Y Y W, it's second aged wine.

IT just gets Better right or so or so the .

skipper says, who love the skipper? Er overproduced I I want to what's IT overproduced uh, financial podcast.

too many dozen isters I guess the flash graphics and things or maybe .

maybe too many free offers or whatever, I don't know.

no or not .

some free offers.

We were pretty, pretty quality. You get the sermon.

I can't be if you want to do.

H all right, let's get to the relevant information here. okay? Skippers likely retire two to three years at sixty one or sixty two hundred twenty thousand estimated annual spending in retirement, sixty thousand annual pension, thirty five thousand security at sixty seven in ten thousand dollars of the annual royalties.

So sixty seven, eighty, ninety, one hundred and five you spent in one twenty, that looks pretty good so far. Skip the three hundred thousand dollars, rob and sixty thousand dollars year to retirement. County conversion is got five hundred thousand and nine and another four twenty five a broken account in one hundred or one point two million dollars in real estates.

No debt depending inheritance of two point seven million in the r eight in the next two ten years. Our Better factor is in the nineties. All right, let's go.

Number one, my pension plus the R M from the inherit ira account will far exceed our spending needs during the ten years of those, R M S will invest the access and not touch any other investments or biomass or security. After a decade of growth and further investing in the other accounts, you should have grown significantly. I drive security benefit.

So unless the market takes, we will be in a much higher tax rate than than we are now. After listening to Y, Y, W have been doing rodkin versions at the top of the twenty two percent tax racket. Should I be more aggressive with the conversions? Does your answer change? If I tell you there is a ninety nine percent probability I will move to texas.

move out of texas .

will move out yeah, it's going to move .

in the act of, say.

taxes is great, but it's just two dm, hot here. I ve been heard you talk a lot about the impact of state taxes on conversion decision. So please share your thoughts number two more on state taxes upon retirement.

Our plan is to sell our big house and by two modest houses, one in the north and one in the south, probably steak tex free florida and travel between the two based and the um travel to the two based on the weather. My question is about the style dishing resonantly. My research shows that you must spend six months and one day place to declare your permanent residents are children live in three different states.

We have family overseas. We do a fair bit of travel for hobby in sex scene, so I don't will spend more than five months at either house. Can you speak about the relationship? Or can you speak about establishing residency in the new state in this situation? This big brother really count the days. Thanks for the football. Oh.

really okay, what's you take the first one? I'll take the second.

It's going to get two point seven million thousand and nine eight here the next couple years.

Yeah should he be .

more aggressive aggressive than yeah I I would convert to the twenty four um but if you move on, a taxes depends on where you move in which your residency. So I guess IT kind of hinders on number two, the answer number one.

appropriately two point seven million .

dollar ira that has to be distorted about ten years. I would be more worried about how you going na distribute that out. Well, now is going to be based on the ninety year world's life expectancy because he's already taking R. M. S.

So yeah, it's said I only hate to do a financial plan based to planned inheritance. Yeah, call this ball.

Well, if I .

were me right, i've put IT that way. So it's got about five hundred thousand in a na, which doesn't require an overly aggressive conversion. But the fact he may have two point seven million coming put in a much hier bracket .

because five thousand a majority, that's in a rope that gona come on tax free, doesn't have to take an R M D. There right is a plenty of income on the distribution potentially from he's already at ninety five percent of his income with just a fix income not including any of his liquid assets. So um I think he could be a little bit more aggressively ly by converting his .

is ira yeah I I agree with you. I just want to sort of break that out because chance, sir.

money could be gone with health care for the ty year old you can make one hundred money. Yeah but the government.

right there are three bugs left in the that he gets got to spread that over ten years. Yeah so yeah, I would probably go to the twenty four percent racket. Uh, for I mean, especially things in the state attaches right now, right? I think that makes sense as far as moving at a state, establishing new state taxes or state resonant y so that there's a couple things that eyes looks at.

One is that the number days you are in any particular state. And if you pass, it's could call one hundred eighty three data. If you are hundred eighty three days in one area, then that that kind of indicates that your state of residency.

But in the other cases, that's not necessarily two people spend some time in one state, some time in another. Maybe they travel, maybe whatever. Uh so IT depends upon facts and circumstances.

But here here's what I would do if floridas one of the states make that your your state of resonance y because there's no taxes there either, right? And so when you move to florida, uh, compared to the other place that you want to have a home, and I would probably get the nicer home in florida to make that look like your residence, I would, I would get a driver's license in florida. I would register a boat in florida, I would do your bank accounts and your broker accounts in the state of florida.

I would do all that stuff, and then I would also do one more thing. So I would, when I went on a trip, I would leave from florida, and I would come back to florida, which then indicate you were florida residents during that, that whole trip. That's how I would do IT.

And then the other state that you move to would probably not be as cheap as florida. Ford is free with regards the income taxes. So that's what I would probably do. But right now is in a texas using texas, no state tax. Why not at least crank up the the um conversion to the top of the twenty four because we know we have that at least for the .

next two years. Yeah backs and circumstances, please. Not three hundred ninety three days think it's on. Did I me he's like, you think big brothers is gonna .

be that detail what in tickets if if you're if you're baking IT yeah they will like like if it's pretty clear you thought this, you know you rent this cheap place support and you get this mansion and minnesota right and and it's pretty clear you spending most of your time in medica, they might ask for your grocery bills and your utility bills and all kinds of stuff to show. They might want to ask for your phone records where you making calls from they they're allowed to do that. No, they're not going to call days, but they can get a pretty good sense by looking at other, other type of evidence.

Alright, skip, good luck with that.

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Hi, joe. Beg andy. Is Harry and Helen taster here? Yes, from the nineteen ninety four movie. True's, remember that movie big out?

I do that gently. Curtis, yeah, I remember that.

Curtest, I said, honey, you said James curtis.

that's for my met. Yeah, I guess I just .

then a tear. korea.

Oh yeah.

That's raght. SHE was in that too. It's just .

like it's you.

When did you watch that movie last year?

When is the last time I watch IT? That's twenty .

years public. Wow, good memory still trap.

I do have a good memory.

do have a good, especially for movies. You just IT just goes in and never comes out as there.

I I do like a good movie.

There I did. I I remember the jimi curter scene in the bedroom. That's that's what I remember.

Remember that yes.

Do you remember .

that I was going to say, I thought you were going to say the helicopter well.

now that was a moving right.

So they're writing in from joes home state, minnesota, right? Don't you know? We have been listening to the show for several years and love IT.

Helen has started watching some of the T, V episodes. If you just get, get enough, we often listen while we're driving. And often I find myself chucked me out out.

We both like how joe big al do not always agree, just like Helen and I look smiling face, i'm cute very. But I value the insight technology you share on your thoughts, process on your thoughts process, all which makes the show authentic and prompt good discussion. Now, the important details we drive, old model fords, older model fords. And that model t when I got to say escaped, oh god, for tourists so last time you seen a four tourists, you're right, holing that is older than I spent .

a couple decades since I said, yeah.

they stopped making them in twenty and nineteen. So we still .

like four twenty to twenty nine.

Ah I have seen one to twenty years, so I can't .

maybe.

But i'm having to upgrade to the cherished board event fifty in the future. All I get up with that. okay?

I prefer a good turbin with a clear, large ice q but Helen changes her mind pretty much daily, but some of favorites are cocktails with boxcar, tekla wine, little beer. And we have no pets. We need your help with a little bit of a spitball.

And fifty eight hundred and fifty five, both our companies have been downsized. You know, I recent got the hammer and then has a high likelihood of an impacted in early twenty twenty five summing Helen is laid off due to her severance. We could have our twenty twenty five expenses covered and in twenty twenty six, we could both happen every time and accounts without penalty were both willing to look for other positions.

But really hoping your spitball says we can just stay home, right? However, given our ages, every time I could be closer to forty years verses thirty years, Helen is hesitant to take this approach and feels I need to be heading back to work. He does not feel he needs to.

Okay, so we need a flett ball here. Here are the relevant details we have. Just shy a five million. Boy, no, okay, you're good.

Do everyone?

You need minnesota. You drive a ford tourists.

Your, I can overspend your box.

Stay home. Okay, four one k they got two point three million and a four one k five hundred thousand and arrows seven thousand and eight say stocks and bonds is one hundred and fifty thousand total. Four point. Alright, we have no debt and our kids are fully launched.

I have no, I have long term current turns of three hundred thousand with the life and turns pay out if not used in our home, is paid for with the other four hundred thousand, which you are planning to cover long term care if needed for Helen. So now for the spending today, we spent one hundred thirty thousand hours annually. We are estimated this continues this additional twenty thousand for healing surges until we hate metal care in additional twenty for the goga years.

Those favorite, I know he did.

I actually tried to find out where that came for a minute, just to always existed. I cannot find the source of go, so go.

So I just, and everybody .

is just watched on, do IT accept you guys. Oh.

I like IT. I like to go, go years.

Yeah, working IT.

Well.

maybe when I get a little older, I will be like that. I mean, I go, go.

I wanted you .

say that on.

You right?

This brings our estimate. Annuals spent a one hundred thousand thousand dollars before taxes, since most of our funds are in pretax accounts and no one have to pay the tax man and the spread shit, I S to me, to combine Better and say, tax around thirty percent, bringing our annual need of two twenty, yes, I rounded in thirty percent, is five percent more than what we paid. No, the hikes are coming.

We have a Better mate. Please let me know. You know, use IT. We have the following retirement income all in today's dollars.

Helen has a pension on twenty four grand at sixty to all take social charity of twenty two thousand and halliwell wait till seventy and sh'll take hurds at fifty three, right? Can we both just stop working with the latest downsize actions taking expected or expected to be taken? Do we have enough for a forty year retirement? If we don't have enough, how would you project retirement spending needs to be reduced? We have a slush here and there switched to cheap burb in Helen to all light beer.

Should not be happy with this. I don't hope we are four one k heavy is that we're doing conversions using the pretax money to pay for the tax since we are looking at a longer retirement would to be worth liquidating our stock bonds or even tapping into the road to pay the tax for the conversion. I E, we could do smaller amounts to keep IT within a favorable tax break until RMB start.

What my missing, by the way, we have predicted, joe will say we can do what I do. By the way, we are predicted, joe will say we can do and big out will say we need to pick up some part time work for the record. If this happens, I bet i'll be heading back to work and Helen will be staying home.

Could our predictions be correct? Thanks much, and thanks, andy, for keeping the guys on track. Keep up the great work here.

Yes.

all .

right.

So he .

is fifty eight.

So so he's got a clear bridge.

Yeah so so SHE may get let go next year at age fifty six, but have seven last through the rest of next year. So it's really twenty twenty six and beyond they're concerned about. So here's a couple numbers show uh and that is this that um if I just think that what what he gave me or what he gave us one hundred seventy thousand dollars in spending under twenty thousand and spending and he has a pension of twenty four thousand so the short falls one hundred forty six thousand without even considering social security divide that end of the five million it's a three percent distribution rate, three one twenty four divided by one, forty six divided by five.

okay. Anyway.

i'm good with three percent distribution rate without considering social security and the fact that since they drive over cars, I know they could spend less if they need to. So I I don't think they need to work. I don't think has a part time get a part time job.

Well, you're missing taxes. So there's problem most to four percent over, right, fifty eight and a four percent for the bridge of ten years. A couple things.

I know that they're not gonna retire even if I said both of us said, yeah take IT up. I don't think they would I think they would give um I don't think they feel comfortable with the dollar figure that they have. He's probably run on four hundred spread sheets.

He run different scenario and I bet most of them come out pretty good, but he depends on the assumptions that he's running. He runs like a sequence of return this type of scenario. And it's a domes day as soon as he retires and it's down twenty percent for two years.

I mean, that could blow up quite a bit of tax rates goes sky high. That could blow me up a little bit. Um so I but if he was .

a cheaper .

bin in in light beer, I mean, I think they'll be alright in that upgrade to the four f one fifty and just keep raising in the tourists and .

the tourists said, I I feel like with their ability to save, they have the ability to spend less. I feel like they can adjust. I don't think they necessarily have to work here. Here's what. Here's what maybe he should try there or they should try is maybe not working for year and figure out, is that feel good or do you feel like, you know, IT at eight, fifty eight or fifty nine, you'd kind like to get back in the game?

Yeah I wish they had more not qualified assets though. Yeah makes the .

right conversions difficult for sure, right?

So they are really get at even in retirement accounts, but from any other type of savings outside of that, there was a little bit of a struggle because most of the probably the free cash flow went to the retirement account. But the good news is that they got five million. The bad news is that they have four and half million dollars in retirement account that is all going to be taxed, ordinary income rates.

So it's a big number. But he doesn't have four point two five million in a retire count. Ah you gotta take thirty thirty percent off of the top because of taxes depending on what is distribution strategy is yeah true.

But is he still as over three million? If you think of that, that way, it's still a big, big number.

Well, it's ninety thousand and he spends yeah no, it's still a huge giant number. And don't give me wrong.

I would say I would say so maybe we're saying something different than he anticipated. I would say almost anyone with five million dollars that is able to watch their spending and and down down if need be when you save that much money, you can you know how to spend less. So they want to spend more because they want to do the google years.

Great try IT. But if IT feels like the monkey draining too quickly, or we have a couple years of bad markets, make adjustments if you have to get go back to work, do IT. But I feel like when you have that much uh, in investment, you you got you you have the ability to make adjustments and changes depending upon .

what happens to live the slow go years. But his age is really the .

gogo here's is no, no, he is he instead the go go but he might have to get up his airport plane tickets on point is static c dollars um yeah, I would .

look at trying to figure out a diversification strategy as well. So he's not working this here. Depending on the seven, depending on what your income is, know if if they're in the twenty four percent tax rate.

I'd probably want to get some of that running into a rap I A and that twenty four because that's probably going to go to twenty eight um I you're right. I know who knows what we'll actually be spending um but that's a giant number. The the R M S.

Could could blom up to even higher tax product. It's so great. I'm sure here he's got a read sheet in these kind of run in the numbers here.

But yeah um I think you're right. If you can be flexible in the spending, go for a retire. But is Young.

I mean, where there are activities is there are still things that that you want to you know keep your mind active in how purpose and all of that I could stop so, but he gratulations Harry, very good. Well, medical. Ta, right there, right? When free home the vikings, we got a, let's see, john. Angelina.

interesting. Yeah.

I don't know. That is supposed to be a reference to you. And Angeles and july.

no man is well, trap to sea. Well, job become nandy. I've launched why am I W for the last five years and watched all episodes from the beginning. What is wrong with you? How many episodes .

you .

seen big out?

Ah, let's see. I did. I told you about three weeks ago, I watched one. I think that's.

I'm sixty three and my wife is fifty seven. Tricked choice is a good half of dice in beer. And the White preferred a mosquito, another mosto. What the hell is mosto?

I ve is a sweet line.

The wine is wine.

Sweet wine sounds right the .

sky when the mood hits. I'm said my retire now with possible income from rental properties of a one hundred or sixteen hundred dollars a month. The little lady is still working full time and cover the insurance in a few bills. We have, we are completely dead free as an own nothing on our house.

Well, at four thousand in the east path finder paid off at one point three million dollars in I race, one million in traditional three hundred and road in the each year, moving one hundred thousand dollars from the traditional to the rob. We have a broken account, twenty five grand along with pass have been come mentioned earlier. We have emergency one of eighty thousand.

It's savings in an h sa tolling fifty grand. The Y P makes seven. Where is this guy from? He's like, here's a little lady.

SHE likes .

little moscow and see the mood. Not a .

little lady. Is that is that what you you call your little lady? You can't get away with .

that and k orna did .

the little little lady, the wife wife even I think to see slam .

yeah the I think make seventy .

thousand .

thousand from work in his I rates by or fifty thousand and traditional thirty thousand and road, along with several cds, totally forty thousand hours. I plan to collect security, age seventy, if all goes well, which will be forty three hundred dollars a month, and we can retire early at sixty five, which would be fourteen hundred dollars a month or due to early, but possibly collect so uh, possible benefit if higher.

Uh, we would like to retire abroad, maybe asia, to stretch out a retirement on a little bit further and enjoy some sight scene. That said, we are planning on using one hundred twenty thousand thousand per year, adjust that for inflation with the income as IT is now. Are we doing fine? But what would you do? And what does big I think we can track? thanks. Tum raters. Tum raters.

OK. And yeah, the was .

the male in that movie name, joe, I don't even know. I mean, the whole thing was about Angelina.

There's there's a couple of different tum orator movies um seen .

both have you yeah I I only remember her .

to be honest. Now there are right those were ages ago to the flight .

time ago here.

So well, what do you say?

Well um so they've got about a million and a half jae and expenses are one twenty he's got about twenty ground of renal income so they're short about one hundred thousand um but wifi y is working but if wifey wasn't working, IT doesn't look very good. They'd have about six point seven percent distribution rate but with the wife working and getting to the point where um you know SHE would he would trade work for social security.

Uh yeah then I at the age sixty five, then I think IT probably IT probably does work right. That's a number of years up, but I think I think they would be OK as long as he continues to work. But she's gonna have to, but that's what he's implying. He's saying that he can retire early at sixty five, so so that I guess he's thinking that would be early for her. Well, he is said I retired so yeah, I think I think that may work .

you she's bit these seven. She's gona work until sixty five.

That's what he's implying IT seems he goes, I planned to collect .

the security and yeah yeah .

plant collection created seven month of August, well, uh, which will be forty three hundred months and he can retire early at sixty five. So I think that's what is taken.

Seven, three, four, sixty five per here.

So he's gonna .

the twenty thousand. So fifty, seventy thousand with inflation with her. Yes, twenty thousand. They're spending one hundred twenty adjust that for inflation.

Yeah I fated there's something.

I mean, I would wonder where um that were two years are onna go?

Good question. I A lot of people like thailand and i've heard the castle livings a lot .

cheaper there. So maybe japan would be pretty expensive.

I think that may be even more you will be more expensive than ten to see, I would think.

right. That would be expensive than almost seven. California yeah right.

Certainly visited the place that they're playing on retiring before they actually like set down roots there.

Yeah i'm going um I think I have A A attributive career next year.

You know you have a trip.

I don't know how i'm going to make IT.

I don't know that not only do you have a trip, you have a trip across the ocean to asia, korea, but that's amazing.

An episode five hundred, we just revisited the fact that jose spend like three countries in his entire life. This is your stretch in your wings.

What are you starting your go go years? No, no.

yeah. The country usually you could drive you. When I lived the medical ua, I could drive to canada with same the ago. I could walk.

You can walk. Well, you have to take, yeah, you have to be drive down to the border and walk across 这样。

My my wife is to see a quarter korean.

Yes, you're .

pack up the .

family, get IT. You should go to thailand too.

Now, I think this would be the last family trip of.

right?

K, I don't know. I like to stay in my bubble.

I know.

You see, you see, we actually plan this strip. Sorry, I gonna get out here. We call IT a day wonderful job. Everyone is earns about to pass out is .

the end of different times.

You can't wait to get back in the ocean.

Yeah, i'm starting to sweater here. I'm getting hard to get to go jump in the ocean.

Well, yeah, what we can do some more than get tip for .

us to ted .

ted medicine with gonen .

barney and Betty and richair j from colorado. Join biga football for you. Next k on Y M Y W podcast episode five four your money, your wealth is your podcast, and this show would not be a show without you.

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