122 - When Should I Start Redirecting Retirement Savings to Other Account Types?
10/20/21 • 19 min
Scott and James discuss when it makes sense to start redirecting retirement savings to other account types.
Listener Question
1. Currently, I'm 47 and I have been maxing out my retirement accounts. I believe that I am in good position for when I retire with the amount I have and the amount it will grow in next 15 years. My question is if it is foolish to now build up a non retirement account instead of continuing to pour money into the retirement account. I realize I'd be giving up tax benefits, but right now I have very little flexibility for the next 13 years. 95% of my net value is either in retirement accounts or my house. I do have an emergency fund for 6 months in cash. I'm thinking since my retirement funds are in good shape that I should start building some assets/brokerage account outside of retirement in case I want to retire early or work part time or want/need money for any reason before I'm 59. What's your thoughts on if there is a point that you should stop worrying about retirement accounts and their tax benefits and building for the years before retiring?
Planning Points Discussed
- Retirement Planning
- Utilizing Time Efficiently
- Capital Appreciation
- Purchasing Power
- Other issues (IRAs, Inflation, Financial Goals, etc.)
Timestamps:
2:35 - Introduction
4:15 - Optimize Your Balance Sheet
5:05 - Individual Stock Example
6:20 - Liquidity
8:26 - Rule of 55
10:06 - Tax Planning
14:23 - Flexibility Benefits of a Bridge Account
15:44 - Roth Conversions
17:23 - Supplemental Accounts
18:24 - Please keep sharing!
19:00 - Aligning Your Financial Goals
LET'S CONNECT!
James
Scott
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Scott and James discuss when it makes sense to start redirecting retirement savings to other account types.
Listener Question
1. Currently, I'm 47 and I have been maxing out my retirement accounts. I believe that I am in good position for when I retire with the amount I have and the amount it will grow in next 15 years. My question is if it is foolish to now build up a non retirement account instead of continuing to pour money into the retirement account. I realize I'd be giving up tax benefits, but right now I have very little flexibility for the next 13 years. 95% of my net value is either in retirement accounts or my house. I do have an emergency fund for 6 months in cash. I'm thinking since my retirement funds are in good shape that I should start building some assets/brokerage account outside of retirement in case I want to retire early or work part time or want/need money for any reason before I'm 59. What's your thoughts on if there is a point that you should stop worrying about retirement accounts and their tax benefits and building for the years before retiring?
Planning Points Discussed
- Retirement Planning
- Utilizing Time Efficiently
- Capital Appreciation
- Purchasing Power
- Other issues (IRAs, Inflation, Financial Goals, etc.)
Timestamps:
2:35 - Introduction
4:15 - Optimize Your Balance Sheet
5:05 - Individual Stock Example
6:20 - Liquidity
8:26 - Rule of 55
10:06 - Tax Planning
14:23 - Flexibility Benefits of a Bridge Account
15:44 - Roth Conversions
17:23 - Supplemental Accounts
18:24 - Please keep sharing!
19:00 - Aligning Your Financial Goals
LET'S CONNECT!
James
Scott
ENJOY THE SHOW?
Don’t miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play.
Leave us a review on iTunes.
Have a money question you want us to answer? Submi
Previous Episode
121 - Overview of Important Mliestones To Be Aware Of
Scott and James discuss the important milestones you should be aware of.
Planning Points Discussed
- Retirement Planning
- Utilizing Time Efficiently
- Capital Appreciation
- Purchasing Power
- Other issues (IRAs, Inflation, Financial Goals, etc.)
Timestamps:
2:00 - Introduction
4:29 - Dependent Care
5:50 - Tax Credits
6:58 - Investing v. Gambling
8:02 - UGMA / UTMA
10:25 - Kiddie Tax
12:47 - Catch-up Contributions
15:40 - Social Security Benefits
17:55 - Qualified Charitable Distributions
19:00 - Charitable Giving Strategy
20:27 - RMDs (Required Minimum Distributions)
21:51 - Aligning Your Financial Goals
LET'S CONNECT!
James
Scott
ENJOY THE SHOW?
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Leave us a review on iTunes.
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Next Episode
123 - Should I Invest in Whole Life Insurance After Maxing Out My 401k?
Scott and James discuss if you should invest in Whole Life insurance after maxing out your 401(k).
Listener Question
I was recently advised to get a life insurance retirement plan by my adviser. I currently max out my IRA contribution, FSA, 401k to ~56k and have extra money left over. I’m single and don’t have kids to warrant a life insurance plan per se but it sounded intriguing with the extra cash i have leftover. I comfortably have an extra 3-4 k every month leftover. I’m a bit skeptical of the adviser since he contacted me supposedly from a coworker who gave him my name.
Planning Points Discussed
- Retirement Planning
- Utilizing Time Efficiently
- Capital Appreciation
- Purchasing Power
- Other issues (IRAs, Inflation, Financial Goals, etc.)
Episodes Mentioned
Timestamps:
1:30 - Submit Your Questions!
3:05 - Selling v. Advising
7:25 - How Are Insurance Salesman Compensated?
10:28 - Understand Your Goals First
13:43 - Self-Insured
15:37 - Opportunity Cost
16:47 - Tax-Free Loans
17:15 - After-Tax Benefits
19:32- Understanding Incentives
21:02- Aligning Your Financial Goals
LET'S CONNECT!
James
Scott
ENJOY THE SHOW?
Don’t miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play.
Leave us a review on iTunes.
Have a money question you want us to answer? Submit one here
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