Episode summary
The Retirement Question Every Couple Asks: Can We Afford It?
Your Money Your Wealth
· · 44 min · Hosts: Joe Anderson, Big Al Clopine
Summary
Chase and Ryder have an unusually strong retirement setup: $5 million in retirement accounts, $500,000 in brokerage, and immediate pensions totaling about $300,000 a year, rising to roughly $433,000 with Social Security later. The hosts argued that their nervousness is emotional, not financial; even after retiring at 57, they would only need modest withdrawals and could use the rule of 55 access to the 401(k) plus a targeted Roth conversion plan. The hosts said they should not convert everything at once, but likely convert enough each year to stay near the top of the 24% or 32% bracket.
Key takeaways
- The hosts said Chase and Ryder can likely retire at 57 because their pensions cover most of their spending needs immediately.
- They recommended a partial Roth conversion strategy, not converting everything at once, because the couple will remain in a high tax bracket anyway.
- The hosts said the rule of 55 gives Chase access to the 401(k) before 59½, reducing early-retirement liquidity concerns.
Notable quotes
“so you want to spend $336,000 and your pension's 300,000, right? So, you got about 35,000 that you got to pull from your accounts”
“I would consider all those because here here's the thing. You're probably not going to spend your retirement accounts anyway with with this income”
“People with a lot of money, they get nervous about it. People with less money, they think they're okay”
How the episode opens
Chase and Ryder are 56 and 55 with $5 million saved and huge pensions the day they retire. So, why are they so nervous about pulling the trigger? That's today on Your Money, Your Wealth podcast number 578.
Andy and April are 46 with $2.4 million saved and 10 years until they want to retire. Can they get there and do they need a trust? Bert and Sally are in their late 40s with solid pensions and a retirement dream, but is the math close enough to make it work?
Finally, does Dolly have any options for squeezing more out of Social Security when she and her spouse have identical benefits? She's inheriting a brokerage account, too, and wonders about the asset mix. If you're listening on Apple podcasts, please do us a favor.
Follow the show and leave your honest ratings and reviews so new listeners know whether YMYW is worth their time. I'm executive producer Andy Last and here are the hosts of Your Money, Your Wealth, Joe Anderson, CFP, and Big Al Clopine, CPA. Let's see.
We got Chase and Ryder. Damn. Oh, little Paw Patrol.
Oh. My son loves Paw Patrol.
I was going to say, have you been watching that? Oh, yeah. I fortunately don't know that show. — Paw Patrol, Paw Patrol, — Oh, wow. you're in trouble. Oh, boy. You know the You know the whole thing. We're coming on the double. Yeah. Don't you worry about it.
Okay. Okay, hello Joe, Big Al. I'll try to keep this comp- I'll try to keep the complicated words to a minimum. Thanks. Chase got to help Joe out, right? Help me out. Uh first of all, shout out to Andy. Kiss-ass. As As we all know, she is the one behind the success of the show.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- retirement planning
- retirement fear
- social security optimization
- pension withdrawals
- trust planning
Companies and tickers mentioned
- Pure Financial Advisors
Watch the episode
Watch “The Retirement Question Every Couple Asks: Can We Afford It?” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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Give Up a $76K Federal Pension and Retire Early: Worth It? -
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Is a $400K Roth Conversion at Peak Income a Mistake? -
Should You Do Roth Conversions in a Down Market?
Your Money Your Wealth, this episode and its artwork belong to Your Money, Your Wealth. Octagon is not affiliated with the show; this page is an independent summary.
