Joe: So the 4% rule is a high level rule.Īl: It just tells you approximately how much you need to save. Joe: So what he’s trying to figure out is how much money that he needs, but he needs to figure out the tax calculation because he’s going to get in the weeds here. You guys are the best podcast out there.” All right. But how do taxes factor into this? Do I really need $95,000 a year to reach my $75,000 amount after taxes? Thanks so much. “And then you mentioned to divide into 4% to see how much you’ll need in retirement to arrive at this amount. Joe: -he takes the pension -“then they take that amount left that is needed.Īndi: I think that means from the portfolio? “Then they subtract what they get with their Social Security and pension-“ Okay, so he wants to spend $70,000. Well, maybe that’s examples from the show. If I assume I will likely be in the 22% or 24% tax bracket by then, how do I figure this out? I hear many people say they will likely need around $70,000 per year in retirement, then they subtract what they get with their Social Security and pensions, then they take that amount left-“ let me start this over- “If I assume I’ll likely to be in the 22% or 24% tax bracket by then, how do you figure this out? I hear many people say they will likely need around $70,000 per year in retirement.” So these are his buddies that need $70,000 per year?Īl: Yeah. However, I will need this amount, $6250 per month after taxes. I have estimated that I will need $75,000 per year in retirement. Will take Social Security at age 62, at another call at $30,000, and I’ll have around $1,200,000 in traditional IRAs at age 62 and $500,000 in a Roth. I have a question about how to figure out what I need in retirement when I factor in taxes. Joe: We got Dale from Atlanta writes in, he goes, “Hello, I’ve been listening to your retirement spitball scenarios, and I’m learning a lot from them. I’m producer Andi Last, and here are the hosts of Your Money, Your Wealth®, Joe Anderson, CFP® and Big Al Clopine, CPA.Ĥ% Rule: Spitballing How Much You Need in Retirement When Factoring in Taxes (Dale, Atlanta) Visit and click Ask Joe & Al On Air to send in your money questions and comments. Today on Your Money, Your Wealth® podcast 392, how do you determine how much you need in retirement when you factor in taxes, and how does the 4% rule apply? Has one YMYW listener spitballed retirement well enough to convince his wife that they can afford a new luxury truck? Can another YMYW listener take advantage of what seems to be a big opportunity to sell company stock, pay no capital gains tax, and do Roth conversions? Can Big Al’s high school friend do a 1031 exchange to buy a rental property, make it his primary residence in 5 or 10 years, and pay no tax when selling? Is earned income from stock trading still taxable for Social Security if your LLC is in a trust? Finally, a compliment comes in, and Joe and Big Al assume it’s for them. US residents only, no purchase necessary, survey and giveaway close and winner chosen at 4pm Pacific time on August 31st, 2022. Answer 17 questions and help us make Your Money, Your Wealth your favorite, funniest, top, best personal finance podcast. Click the link in the description of today’s episode in your podcast app to go to the show notes and access the survey and the secret password. Just 8 days left to fill out the 5th annual YMYW Podcast Survey for your chance at a $100 Amazon e-gift card. Listen to today’s podcast episode on YouTube: READ THE BLOG | How to Invest When Inflation is Raging (Use the letters ymyw to access the survey) (33:07) Is Earned Income Still Taxable for Social Security If LLC is in a Trust?Īnd your chance to win a $100 Amazon e-gift card!.(28:34) Rental Property 1031 Exchange Now, Primary Residence Later, Pay No Tax When We Sell? (Wesley).(18:08) Is This a Big Opportunity to Sell Company Stock with No Capital Gains? (Danny Noonan).(10:36) Grade My DIY Retirement Spitball: Can I Buy a New Luxury Truck? (Wannabe Luxury Truck Driver).(01:36) 4% Rule: Spitballing How Much You Need in Retirement When Factoring in Taxes (Dale, Atlanta). FOLLOW US: Youtube Facebook Twitter LinkedIn
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