Episode summary
Retirement Withdrawal Strategy: Is $100K a Year at 63 Wrong?
Your Money Your Wealth
· · 50 min · Hosts: Joe Anderson, Big Al Clopine · Guests: Kevin, Tim, Jill, Rocky, Adrian
Summary
The hosts argued that retirement planning should be based on realistic longevity assumptions, not on a blanket fear of 35- or 40-year retirements, while still protecting against a surviving spouse living much longer than expected. They pushed back on the idea that a 100% equity portfolio and a 10% expected return automatically justify taking Social Security early, saying that market volatility and withdrawals matter as much as long-run averages.
For Kevin, who plans to withdraw $100,000 a year from age 63, the hosts favored a simple, disciplined withdrawal system: spend from cash and bonds, replenish the cash bucket periodically, and avoid the work of monthly market-by-market selling. They said the bigger issue is tax control, so Roth money should be used strategically to stay out of higher brackets or manage IRMAA, even if some people prefer to preserve Roth assets as legacy money.
For Tim and Jill, the hosts concluded that the household looks financially secure even if Jill is laid off and needs private health insurance. For Rocky and Adrian, with $4 million in pre-tax assets, they said Roth conversions still make sense despite the large balance, because future RMDs and taxes could become much larger.
Key takeaways
- The hosts said Kevin’s $100,000 withdrawal plan is workable if he draws from cash and bonds first and rebalances periodically, not monthly.
- They argued that Roth money is a tax-management tool and can be tapped to avoid bumping into a higher bracket or IRMAA.
- For Tim and Jill, the hosts said the household is still in strong shape even if Jill loses her job and buys private health insurance.
- For Rocky and Adrian, the hosts said large Roth conversions still make sense because a $4 million pre-tax balance could create bigger future tax problems.
- The hosts pushed back on overly conservative longevity assumptions, but said spouses must still be planned for because one partner often lives much longer.
Notable quotes
“I would continue to rebalance the equity component of the portfolio. You might want to take some dividends and put it in your cash account”
“I think either one's fine. I I I think to me just pulling out of a rising market is it seems like a lot of work”
“you want to use the Roth money to make sure that you're not going to go into a higher bracket as well”
“I would probably if it were me, I'd look at it quarterly or maybe that's too much. Maybe twice a year”
“That tells me you need to do conversions. Yes, he's an NBA engineer”
How the episode opens
63-year-old Kevin in Denver is pulling a h 100red grand a year out of his portfolio. What's the tax smart way for him to structure these retirement withdrawals? Tim in Pennsylvania was forced into early retirement and his wife Jill may be facing a layoff.
They have over $2.5 million saved, but what about health insurance? And Rocky and Adrian in Tucson have $4 million in pre-tax at ages 68 and 69. If they convert to Roth, are they just picking up nickels in front of a steamroller?
That's all today on Your Money, Your Wealth podcast number 600. But first, Jeffrey's YouTube comment lit a fire when he called a recent episode of YMYWTV on social security claiming strategies cookie cutter with zero real info. Let's check out the return fire.
Why not leave a comment on our YouTube channel yourself if you've got thoughts to share. I'm executive producer Andy Last and here are the hosts of Your Money, Your Wealth, Joey Anderson, CFP, and Big Al Copeline CPA.
So, we got uh YouTube comment. Yeah, apparently you fired somebody up. — We have many videos on YouTube. Is there a specific one? — This was specifically from the most recent episode of the YMYW TV show, which was all about social security.
God, tired of these videos. So cookie cutter with zero real info. — Okay, — That's the goal. — That definitely I'm the one that's talking about it. Uh timing for social security is based on three things assuming you are not working. First need if you need the money to put food on the table, take it as early as necessary.
I agree. — I believe we said that. — I think so. — Number two is longevity. — Yep. — Never ever talk about longevity.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- retirement withdrawal strategy
- tax-smart withdrawals
- roth conversions
- health insurance in retirement
- social security claiming
Companies and tickers mentioned
- Pure Financial Advisors, LLC
Watch the episode
Watch “Retirement Withdrawal Strategy: Is $100K a Year at 63 Wrong?” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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Should You Do Roth Conversions in a Down Market?
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