February 22, 2024 • 17 mins
There are a handful of important age milestones that you should be aware of in the retirement planning process. While some of them are more well-known, others can easily fly under the radar. Stay tuned as we cover the important birthdays you need to pay attention to from catch-up contributions at age 50 to taking RMDs at age 73.
Here are the milestones we discuss in this episode:
- Age 50: Catch-up contributions for IRAs and employer-sponsored accounts
- Age 55: Rule of 55 for penalty-free 401(k) withdrawals after leaving an employer
- Age 59.5: Elimination of early withdrawal penalties for qualified accounts + approaching Social Security age
- Age 62: Earliest eligibility for Social Security benefits
- Age 65: Eligibility for Medicare coverage
- Age 67: Full retirement age + baseline income expectations
- Age 70: Potential for increased Social Security benefits
- Age 73: Begin taking RMDs
WAYS TO CONNECT:
Book a 15-minute discovery call with the team here: https://calendly.com/rachel-bwg
Visit https://bulmanwealth.com/marcos-lemus to learn more about Marcos Lemus and the other members of the team.
If you have any questions about what we discussed or anything else in your financial plan, email us at ask@bulmanwealth.com. You can also reach the team by phone at (916) 458-8199.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:04):
Welcome.
You are listening to theBuhlman Wealth Group's Financial
Compass podcast, a showdedicated to helping you
successfully navigate to andthrough your retirement.
Our financial compass processgoes beyond traditional holistic
financial planning.
We care as much about you andyour lifestyle as we do about
your plan.
Your hosts are Buhlman WealthGroup financial advisors who,
(00:27):
for more than two decades, haveprovided financial leadership
for those they serve.
Speaker 2 (00:59):
Please reach out to us at our email address.
The best way to reach us is askat bullmanwealthcom.
So every episode, we focus onspecific topics or specific
questions in the financial realmthat many people often share,
(01:20):
and today's episode is about theimportant age milestones of
your retirement timeline thateach of us will eventually hit
at some point in our lives, andit's important to be aware of
these, especially the ones thatfall under the radar or are less
talked about.
So let's get right into it.
What are these financialmilestone ages in retirement?
They're a handful of keybirthdays that you should be
(01:43):
aware of and know when it comesto your retirement timeline.
Certain birthdays holdsignificance in your retirement
options.
So, whether it's got to do withyour social security benefit
amount, how much you'll receive,the time you can start to
withdraw free of penalty fromany IRAs or qualified accounts,
(02:03):
and the time that you must thatyou have to take from those
qualified accounts in the way ofRMDs or required minimum
distributions and some more.
So we'll get into these rightnow.
Not that you need to plan aspecial birthday party or
anything to commemorate thesedates, but you certainly can if
you'd like to.
But we'll start off with age 50.
(02:24):
So at age 50, certainretirement plans, like IRAs,
allow you to make catch upcontributions.
This is true for IRAs and RothIRAs, but it's also true for
employer-sponsored accounts aswell.
So that's 401Ks, 403b, 457, andThrift Savings Plans, tsps.
(02:46):
So at age 50, they allowadditional contributions that
would normally go over or exceedthat contribution limit that
we're used to.
So in 2024, these amounts go upan increase over time.
But in 2024, for 401Ks, 403bs,457s and TSPs, the new maximum
(03:11):
for anybody 50 or older is$30,500.
Quite a big difference ifyou're younger than 50.
So once you hit that milestoneof 50, it can be powerful to
increase your contribution andmake sure you're maximizing,
especially if you feel likeyou've fallen behind or haven't
(03:31):
been able to contribute as muchin years prior.
So on the flip side, we'll callit the private side or the
individual retirement accountnot tied to an employer.
So this is an IRA or a Roth IRA.
The limit also increases byabout $1,000.
So it just jumped up again tonow $8,000 if you're older than
(03:55):
50.
So, 50 or older, you cancontribute each year annually
$8,000, that just changed in2024.
Which, again, same thing can bepowerful when you're increasing
your contributions each year inthe way of a catch up.
So, moving on to age 55, okay,age 55, it's kind of a unique
(04:15):
one, but in some cases you'renot quite at that age that you
can pull from your retirementaccounts free of penalty.
But there's something called arule of 55.
So you might be able to pullwithout a penalty from a 401K if
you leave your employer.
So let's say, you leave anemployer, you have an old 401K,
(04:40):
moving to maybe another employeror just not working.
At that time you can pull freeof penalty from the employer
that you just left.
Other older 401Ks that you havedon't apply, so it's the
employer that you just left ifyou are over 55 but younger than
59 and a half.
So that leads us to our nextage here.
(05:02):
59 and a half is kind of thatthreshold that we're all waiting
for in order to pull from someof these qualified retirement
accounts or whether it'semployer sponsored or IRA.
If we pull early from these,let's say you're 40 years old,
45 years old and you need somefunds you know, you've got some
(05:22):
in this old 401 or an IRA if youpulled prior to 59 and a half,
not only are there taxes that wealways have to pay.
We can't get away from that.
But there's an additional 10%penalty assessed.
So ideally you wanna avoid thatat all costs.
But at 59 and a half, this isan age where that penalty goes
(05:43):
away.
So all we have to worry aboutat this point is just taxes, if
we needed to withdraw some ofthose funds from these accounts.
So, also at age 59 and a half,you know you're close enough to
the social security eligibilityage, so you should start
strategizing for that, if youhaven't already, or at least
have it on your radar.
(06:04):
So, moving on to age 62.
Okay, at this age, speaking ofsocial security, we're
officially eligible at age 62for our benefits.
So you can apply for socialsecurity usually as early as
about four months before youwanna begin.
So you can kinda get a headstart on this to prepare.
And your social security income, if you waited, obviously does
(06:28):
grow each year, really eachmonth that you defer that
paycheck.
But if you needed to, 62 is theearliest.
Okay, it's gonna be a lesseramount than your what's called
FRA or full retirement ageamount, but we'll get to that in
a moment.
So age 65.
Okay, at age 65, you areeligible for Medicare coverage.
(06:50):
You wanna make sure that youunderstand Medicare and it's
different parts before you signup and start receiving that
Medicare care, but do so beforeyou turn 65.
Okay, 66 and 67, I'm gonnakinda use the age 67 just to
kinda make it easy here.
But depending on when you wereborn, what year you were born
(07:11):
could be 66 in some months or 67, we'll use that for this
example.
This is seen as your fullretirement age.
So this is the amount of incomeyou can expect as kind of a
baseline or maximum.
So, 62, it's gonna be much lessthan this amount if you elect
it early, if you elect it assoon as they offered it.
(07:33):
But if you waited to age 67,you're gonna get what's called
your full PIA or primaryinsurance amount Okay, that's
just a fancy acronym and fancywords for your full retirement
paycheck if you waited to thisage.
So when it comes to retirement,it's really all about the long
game.
So it's not just about what youdo this year, it's about the
(07:56):
whole timeline, right?
When are you gonna stop working?
When are you gonna claim SocialSecurity?
I know we're talking about thata lot right now.
When are you gonna startwithdrawing from your retirement
accounts?
All these questions areimportant to consider when
you're constructing the optimalplan, right?
An optimal income plan.
And these ages are just asimportant as the actual
(08:16):
retirement accounts themselves.
So it's important to be awareof each and every single one of
these.
So jump into age 70.
If you wait until age 70 toclaim your benefits, you could
be eligible for up to a hundredand twenty-four percent of that
Determined PIA, so that PIAagain is the primary insurance
amount, that's your, your fullretirement age amount at 67.
(08:40):
But each year you wait it growsanother 8% each year and you
don't have to wait each year onthe year right.
Every month that you wait itgets a little bit more.
So, age 70, you can get up to ahundred and twenty-four percent
of that full retirement amount.
Very few people wait until age70, but it depends on
(09:00):
everybody's specific situation,right?
Everyone scenarios a little bitdifferent.
So, moving on to age 73, withthe recent passage of the new
Secure Act 2.0, the age you haveto take RMDs or required
minimum distributions Fromtraditional IRAs, 401ks for 57
(09:20):
other qualified accounts, itmoved up.
It used to be 72.
It's now age 73.
So the year in which you turn73 is when you have to begin
taking RMDs.
They give a little bit ofleeway your first year, the
first year you turn 73 calendaryear.
You have until that followingApril 1st to take your RMD.
(09:43):
But you want to make sure thatyou take your first RMD and kind
of get in the habit every yearof Just knowing that that's got
to come out.
It's gonna be a differentamount every year, but that's
something that you knowfinancial professional can help
you with, or you can look onlineand and seek out some guidance
that way as well.
So how could someone thinkabout strategizing for all these
(10:04):
different timelines and thesemilestone birthdays?
You want to take intoconsideration your lifestyle
right and some of theexpectations of your lifestyle.
Do you plan on maintaining yourcurrent lifestyle, maybe just
having a little extra income andthen retiring later?
Claiming social security at alater time Might be smart.
Maybe you have a spouse whoplans to continue working for a
(10:26):
while and has income largeenough to support the whole
household.
You know waiting until yourspouse Retires to claim your
benefits could be the wiserchoice in that scenario.
If you expect to be in reallygood health, or you're in really
good health, you want tocontinue working for some years
or you're just not ready toretire.
Maybe you enjoy your job andwaiting to claim those benefits.
(10:48):
The social security benefitscould definitely maximize your
payouts, right?
We already talked about that.
The longer you wait, the moreincome you're gonna see in the
end.
So, keeping in mind all thesefactors, you know they're all
interconnected and they impactone another.
So there's no singular cookiecutter answer.
It's gonna tell you when youshould figure out when to retire
(11:08):
, or you know that's why it'sbeneficial to consult a
financial professional.
So what key birthdays Do someretirees forget to plan around?
Okay, out of out of all thesemilestones, there's a couple I
think some people are aware ofRMD's, but that's that's
definitely one of them.
So that age 73, that movingtarget that's always changing,
that's a big one, it's animportant one you don't want to
(11:29):
forget.
But I think the easiest one toforget is that age 50 Milestones
.
So that first one we talkedabout really, because it kind of
flies into the radar.
It's an age where, as we saidearlier, you can increase your
contributions.
You know, especially if youneed to play catch up, maybe you
weren't in the place tomaximize your contributions in
(11:50):
your earlier working years Onceyou hit 50, if you've got
another 10, 15 years, you cancontribute and contribute more
than you had been.
You know that can be powerfulboth on the employer side and on
the IRA and Roth IRA side.
So I think that's the easiestone People tend to forget, but
can be powerful if we takeadvantage of that.
(12:12):
So here's some common mistakesthat people make with these
timelines.
With your retirement timeline,you know, as an example, maybe
claiming social security tooearly or too late, forgetting
about lost or forgotten 401Ksand IRAs from past jobs.
Maybe you've got some small IRAor a small 401K from an
(12:34):
employer you were with for a fewyears and there's five or
$10,000 in there.
You know, relatively small butforgetting to account for that,
especially come RMD time.
You have such a small littlething but you hate to be dinged
extra penalties by forgetting toinclude that in your overall
RMD amount.
(12:54):
Okay, maybe not knowing how IRAdistributions are taxed and
then they can be different oreven forgetting that RMDs kick
in altogether.
So there can be a hefty penaltyof failing to take RMDs and
withdrawing from those qualifiedaccounts.
Right, with thosetax-advantaged or tax-deferred
(13:17):
accounts.
You know I always see Uncle Samas kind of a silent partner in
those accounts.
You know the money's in there,it looks nice, but when we take
it out and take distributions,uncle Sam wants this cut.
It's never been taxed before,so there's always that tax that
comes along with it.
And that's why RMDs are inplace, to make sure that at a
(13:39):
certain point we're starting todraw on those during your
lifetime.
Maybe another thing is notrealizing that a portion of your
social security checks counttowards taxable income.
A lot of people forget that.
Many people pay, you know,taxes up to, in a lot of cases,
85% of their social securitybenefits and those are taxable.
So with all these things inmind I know it seems like a lot,
(14:03):
but how can people plan theiraccumulation phases, their
distribution phases, plan thedifferent income streams
according to these dates, onthis retirement timeline?
And, as I said before, there'sno one size fits all answer on
what to do or how to adjust yourfinances at these ages, because
(14:23):
everybody's situation'sdifferent.
But just being aware of andknowing these ages of your
retirement timeline can help youprepare and maximize the
retirement savings bystructuring your portfolio to
accommodate these dates and keepthese dates in mind.
So you may wanna claim yoursocial security.
You may wanna wait to claimsocial security.
(14:44):
You know if you have othersources of income.
You may want to adjustwithdrawals around RMD dates
just to make sure you're notover withdrawing each year and
putting yourself in an evenhigher tax bracket.
You may even wanna claim socialsecurity early so that you can
keep your retirement investmentsintact after a market downturn,
(15:06):
in case that is something thatoccurs.
That way, you can benefit froma rebound other than withdrawal
on those while your assets aredown, while the accounts are
down, if the market does have adownturn.
So when you know these ages,you can plan around these, plan
around your current financialsituations and goals and you can
live a retirement with fewersurprises to make sure that your
(15:28):
savings are being maximizedover time.
So again, these are only a fewbig dates that come to mind.
If navigating these seemoverwhelming, don't worry,
you're not alone and there arepeople who are willing to help
and knowledgeable in these areas.
So I hope you're really able topick up just even a few nuggets
(15:50):
of useful information.
If you heard anything todaythat resonated with you, if you
have comments, if you havequestions or you just want to
maybe dive deeper into yourparticular situation, please
don't hesitate.
You can shoot us an email againat askatbulmanwealthcom.
So I want to thank you allagain for listening.
Whether you're coming fromApple Podcasts, spotify or a
(16:13):
different podcast platform, wedo appreciate you taking the
time to join us and to listen in.
We greatly appreciate yourreviews, your feedback and your
time.
Join us next time on yourfinancial compass.
This has been your host, marcosLienas, with the Bowman Wealth
Group.
Take care.
Speaker 1 (16:36):
The following content is for information purposes
only.
It is not intended to provideany tax or legal advice or
provide the basis for anyfinancial decisions, nor is it
intended to be a projection ofcurrent or future performance or
an indication of future results.
Purchases are subject tosuitability.
This requires a review of aninvestor's objective, risk
tolerance and time horizons.
Investing always involves riskand possible loss of capital.
Opinions expressed are solelythose of Bowman Wealth Group and
(16:57):
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The information contained inthis material has been derived
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Any statements or opinionsexpressed should in no way be
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than the states were otherwiselegally permitted.
Advisory services are offeredthrough Chris Bowman Inc.
Dba.
Bowman Wealth Group.
(17:18):
Registration as an investmentadvisor does not imply a certain
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Insurance products and servicesare offered and sold through
Chris Bowman Inc.
Dba.
Bwg hero's.
Welcome.
You are listening to theBuhlman Wealth Group's Financial
Compass podcast, a showdedicated to helping you
successfully navigate to andthrough your retirement.
Our financial compass processgoes beyond traditional holistic
financial planning.
We care as much about you andyour lifestyle as we do about
your plan.
Your hosts are Buhlman WealthGroup financial advisors who,
(00:27):
for more than two decades, haveprovided financial leadership
for those they serve.
Speaker 2 (00:59):
Please reach out to us at our email address.
The best way to reach us is askat bullmanwealthcom.
So every episode, we focus onspecific topics or specific
questions in the financial realmthat many people often share,
(01:20):
and today's episode is about theimportant age milestones of
your retirement timeline thateach of us will eventually hit
at some point in our lives, andit's important to be aware of
these, especially the ones thatfall under the radar or are less
talked about.
So let's get right into it.
What are these financialmilestone ages in retirement?
They're a handful of keybirthdays that you should be
(01:43):
aware of and know when it comesto your retirement timeline.
Certain birthdays holdsignificance in your retirement
options.
So, whether it's got to do withyour social security benefit
amount, how much you'll receive,the time you can start to
withdraw free of penalty fromany IRAs or qualified accounts,
(02:03):
and the time that you must thatyou have to take from those
qualified accounts in the way ofRMDs or required minimum
distributions and some more.
So we'll get into these rightnow.
Not that you need to plan aspecial birthday party or
anything to commemorate thesedates, but you certainly can if
you'd like to.
But we'll start off with age 50.
(02:24):
So at age 50, certainretirement plans, like IRAs,
allow you to make catch upcontributions.
This is true for IRAs and RothIRAs, but it's also true for
employer-sponsored accounts aswell.
So that's 401Ks, 403b, 457, andThrift Savings Plans, tsps.
(02:46):
So at age 50, they allowadditional contributions that
would normally go over or exceedthat contribution limit that
we're used to.
So in 2024, these amounts go upan increase over time.
But in 2024, for 401Ks, 403bs,457s and TSPs, the new maximum
(03:11):
for anybody 50 or older is$30,500.
Quite a big difference ifyou're younger than 50.
So once you hit that milestoneof 50, it can be powerful to
increase your contribution andmake sure you're maximizing,
especially if you feel likeyou've fallen behind or haven't
(03:31):
been able to contribute as muchin years prior.
So on the flip side, we'll callit the private side or the
individual retirement accountnot tied to an employer.
So this is an IRA or a Roth IRA.
The limit also increases byabout $1,000.
So it just jumped up again tonow $8,000 if you're older than
(03:55):
50.
So, 50 or older, you cancontribute each year annually
$8,000, that just changed in2024.
Which, again, same thing can bepowerful when you're increasing
your contributions each year inthe way of a catch up.
So, moving on to age 55, okay,age 55, it's kind of a unique
(04:15):
one, but in some cases you'renot quite at that age that you
can pull from your retirementaccounts free of penalty.
But there's something called arule of 55.
So you might be able to pullwithout a penalty from a 401K if
you leave your employer.
So let's say, you leave anemployer, you have an old 401K,
(04:40):
moving to maybe another employeror just not working.
At that time you can pull freeof penalty from the employer
that you just left.
Other older 401Ks that you havedon't apply, so it's the
employer that you just left ifyou are over 55 but younger than
59 and a half.
So that leads us to our nextage here.
(05:02):
59 and a half is kind of thatthreshold that we're all waiting
for in order to pull from someof these qualified retirement
accounts or whether it'semployer sponsored or IRA.
If we pull early from these,let's say you're 40 years old,
45 years old and you need somefunds you know, you've got some
(05:22):
in this old 401 or an IRA if youpulled prior to 59 and a half,
not only are there taxes that wealways have to pay.
We can't get away from that.
But there's an additional 10%penalty assessed.
So ideally you wanna avoid thatat all costs.
But at 59 and a half, this isan age where that penalty goes
(05:43):
away.
So all we have to worry aboutat this point is just taxes, if
we needed to withdraw some ofthose funds from these accounts.
So, also at age 59 and a half,you know you're close enough to
the social security eligibilityage, so you should start
strategizing for that, if youhaven't already, or at least
have it on your radar.
(06:04):
So, moving on to age 62.
Okay, at this age, speaking ofsocial security, we're
officially eligible at age 62for our benefits.
So you can apply for socialsecurity usually as early as
about four months before youwanna begin.
So you can kinda get a headstart on this to prepare.
And your social security income, if you waited, obviously does
(06:28):
grow each year, really eachmonth that you defer that
paycheck.
But if you needed to, 62 is theearliest.
Okay, it's gonna be a lesseramount than your what's called
FRA or full retirement ageamount, but we'll get to that in
a moment.
So age 65.
Okay, at age 65, you areeligible for Medicare coverage.
(06:50):
You wanna make sure that youunderstand Medicare and it's
different parts before you signup and start receiving that
Medicare care, but do so beforeyou turn 65.
Okay, 66 and 67, I'm gonnakinda use the age 67 just to
kinda make it easy here.
But depending on when you wereborn, what year you were born
(07:11):
could be 66 in some months or 67, we'll use that for this
example.
This is seen as your fullretirement age.
So this is the amount of incomeyou can expect as kind of a
baseline or maximum.
So, 62, it's gonna be much lessthan this amount if you elect
it early, if you elect it assoon as they offered it.
(07:33):
But if you waited to age 67,you're gonna get what's called
your full PIA or primaryinsurance amount Okay, that's
just a fancy acronym and fancywords for your full retirement
paycheck if you waited to thisage.
So when it comes to retirement,it's really all about the long
game.
So it's not just about what youdo this year, it's about the
(07:56):
whole timeline, right?
When are you gonna stop working?
When are you gonna claim SocialSecurity?
I know we're talking about thata lot right now.
When are you gonna startwithdrawing from your retirement
accounts?
All these questions areimportant to consider when
you're constructing the optimalplan, right?
An optimal income plan.
And these ages are just asimportant as the actual
(08:16):
retirement accounts themselves.
So it's important to be awareof each and every single one of
these.
So jump into age 70.
If you wait until age 70 toclaim your benefits, you could
be eligible for up to a hundredand twenty-four percent of that
Determined PIA, so that PIAagain is the primary insurance
amount, that's your, your fullretirement age amount at 67.
(08:40):
But each year you wait it growsanother 8% each year and you
don't have to wait each year onthe year right.
Every month that you wait itgets a little bit more.
So, age 70, you can get up to ahundred and twenty-four percent
of that full retirement amount.
Very few people wait until age70, but it depends on
(09:00):
everybody's specific situation,right?
Everyone scenarios a little bitdifferent.
So, moving on to age 73, withthe recent passage of the new
Secure Act 2.0, the age you haveto take RMDs or required
minimum distributions Fromtraditional IRAs, 401ks for 57
(09:20):
other qualified accounts, itmoved up.
It used to be 72.
It's now age 73.
So the year in which you turn73 is when you have to begin
taking RMDs.
They give a little bit ofleeway your first year, the
first year you turn 73 calendaryear.
You have until that followingApril 1st to take your RMD.
(09:43):
But you want to make sure thatyou take your first RMD and kind
of get in the habit every yearof Just knowing that that's got
to come out.
It's gonna be a differentamount every year, but that's
something that you knowfinancial professional can help
you with, or you can look onlineand and seek out some guidance
that way as well.
So how could someone thinkabout strategizing for all these
(10:04):
different timelines and thesemilestone birthdays?
You want to take intoconsideration your lifestyle
right and some of theexpectations of your lifestyle.
Do you plan on maintaining yourcurrent lifestyle, maybe just
having a little extra income andthen retiring later?
Claiming social security at alater time Might be smart.
Maybe you have a spouse whoplans to continue working for a
(10:26):
while and has income largeenough to support the whole
household.
You know waiting until yourspouse Retires to claim your
benefits could be the wiserchoice in that scenario.
If you expect to be in reallygood health, or you're in really
good health, you want tocontinue working for some years
or you're just not ready toretire.
Maybe you enjoy your job andwaiting to claim those benefits.
(10:48):
The social security benefitscould definitely maximize your
payouts, right?
We already talked about that.
The longer you wait, the moreincome you're gonna see in the
end.
So, keeping in mind all thesefactors, you know they're all
interconnected and they impactone another.
So there's no singular cookiecutter answer.
It's gonna tell you when youshould figure out when to retire
(11:08):
, or you know that's why it'sbeneficial to consult a
financial professional.
So what key birthdays Do someretirees forget to plan around?
Okay, out of out of all thesemilestones, there's a couple I
think some people are aware ofRMD's, but that's that's
definitely one of them.
So that age 73, that movingtarget that's always changing,
that's a big one, it's animportant one you don't want to
(11:29):
forget.
But I think the easiest one toforget is that age 50 Milestones
.
So that first one we talkedabout really, because it kind of
flies into the radar.
It's an age where, as we saidearlier, you can increase your
contributions.
You know, especially if youneed to play catch up, maybe you
weren't in the place tomaximize your contributions in
(11:50):
your earlier working years Onceyou hit 50, if you've got
another 10, 15 years, you cancontribute and contribute more
than you had been.
You know that can be powerfulboth on the employer side and on
the IRA and Roth IRA side.
So I think that's the easiestone People tend to forget, but
can be powerful if we takeadvantage of that.
(12:12):
So here's some common mistakesthat people make with these
timelines.
With your retirement timeline,you know, as an example, maybe
claiming social security tooearly or too late, forgetting
about lost or forgotten 401Ksand IRAs from past jobs.
Maybe you've got some small IRAor a small 401K from an
(12:34):
employer you were with for a fewyears and there's five or
$10,000 in there.
You know, relatively small butforgetting to account for that,
especially come RMD time.
You have such a small littlething but you hate to be dinged
extra penalties by forgetting toinclude that in your overall
RMD amount.
(12:54):
Okay, maybe not knowing how IRAdistributions are taxed and
then they can be different oreven forgetting that RMDs kick
in altogether.
So there can be a hefty penaltyof failing to take RMDs and
withdrawing from those qualifiedaccounts.
Right, with thosetax-advantaged or tax-deferred
(13:17):
accounts.
You know I always see Uncle Samas kind of a silent partner in
those accounts.
You know the money's in there,it looks nice, but when we take
it out and take distributions,uncle Sam wants this cut.
It's never been taxed before,so there's always that tax that
comes along with it.
And that's why RMDs are inplace, to make sure that at a
(13:39):
certain point we're starting todraw on those during your
lifetime.
Maybe another thing is notrealizing that a portion of your
social security checks counttowards taxable income.
A lot of people forget that.
Many people pay, you know,taxes up to, in a lot of cases,
85% of their social securitybenefits and those are taxable.
So with all these things inmind I know it seems like a lot,
(14:03):
but how can people plan theiraccumulation phases, their
distribution phases, plan thedifferent income streams
according to these dates, onthis retirement timeline?
And, as I said before, there'sno one size fits all answer on
what to do or how to adjust yourfinances at these ages, because
(14:23):
everybody's situation'sdifferent.
But just being aware of andknowing these ages of your
retirement timeline can help youprepare and maximize the
retirement savings bystructuring your portfolio to
accommodate these dates and keepthese dates in mind.
So you may wanna claim yoursocial security.
You may wanna wait to claimsocial security.
(14:44):
You know if you have othersources of income.
You may want to adjustwithdrawals around RMD dates
just to make sure you're notover withdrawing each year and
putting yourself in an evenhigher tax bracket.
You may even wanna claim socialsecurity early so that you can
keep your retirement investmentsintact after a market downturn,
(15:06):
in case that is something thatoccurs.
That way, you can benefit froma rebound other than withdrawal
on those while your assets aredown, while the accounts are
down, if the market does have adownturn.
So when you know these ages,you can plan around these, plan
around your current financialsituations and goals and you can
live a retirement with fewersurprises to make sure that your
(15:28):
savings are being maximizedover time.
So again, these are only a fewbig dates that come to mind.
If navigating these seemoverwhelming, don't worry,
you're not alone and there arepeople who are willing to help
and knowledgeable in these areas.
So I hope you're really able topick up just even a few nuggets
(15:50):
of useful information.
If you heard anything todaythat resonated with you, if you
have comments, if you havequestions or you just want to
maybe dive deeper into yourparticular situation, please
don't hesitate.
You can shoot us an email againat askatbulmanwealthcom.
So I want to thank you allagain for listening.
Whether you're coming fromApple Podcasts, spotify or a
(16:13):
different podcast platform, wedo appreciate you taking the
time to join us and to listen in.
We greatly appreciate yourreviews, your feedback and your
time.
Join us next time on yourfinancial compass.
This has been your host, marcosLienas, with the Bowman Wealth
Group.
Take care.
Speaker 1 (16:36):
The following content is for information purposes
only.
It is not intended to provideany tax or legal advice or
provide the basis for anyfinancial decisions, nor is it
intended to be a projection ofcurrent or future performance or
an indication of future results.
Purchases are subject tosuitability.
This requires a review of aninvestor's objective, risk
tolerance and time horizons.
Investing always involves riskand possible loss of capital.
Opinions expressed are solelythose of Bowman Wealth Group and
(16:57):
our editorial staff.
The information contained inthis material has been derived
from sources believed to bereliable, but is not guaranteed
accuracy and completeness anddoes not report to be a complete
analysis of the materialsdiscussed.
Any statements or opinionsexpressed should in no way be
construed or interpreted assolicitation to sell or offered
to sell advisory services to anyresidents of any state other
than the states were otherwiselegally permitted.
Advisory services are offeredthrough Chris Bowman Inc.
Dba.
Bowman Wealth Group.
(17:18):
Registration as an investmentadvisor does not imply a certain
level of skill or training.
Insurance products and servicesare offered and sold through
Chris Bowman Inc.
Dba.
Bwg hero's.
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