Neal Templin
speaker
97 appearances
1 recordings
1 series
first heard May 2021
last heard May 2021
Neal Templin’s voice in public audio — every appearance, attributed to the second.
Trend
recordings per month · last 12 monthsNo recordings in the last 12 months.Older appearances are listed below; set an alert to hear about the next one.
Appearances
WSJ Your Money Briefing · Common Social Security Mistakes and How to Avoid Them · 10 May 2021
podcast
Some people will start drawing Social Security early so they don't have to take out of their retirement accounts, their tax-deferred accounts.
I think the more conservative measure is to spend down your accounts to get the Social Security check as big as possible.
You just don't know what markets are going to do in the future.
It's really important to have an adequate base of safe, secure income to cover your expenses and not be dependent upon turbulent markets.
So even if it means spending down some of your 401k to delay taking Social Security, it is generally a good idea.
I mean, one of the biggest is called the tax torpedo.
Everything about Social Security is complex, including its taxation.
And the maximum you can get taxed on your Social Security is 85% of your benefit.
But it's a phased-in taxation.
And there are certain points where you're just beginning to enter the phased-in portion of the taxation.
And every dollar you earn will essentially you'll get taxed on that dollar through normal tax.
And then it'll cause another 85 cents of Social Security income to be taxed.
And so effectively, if you're in like a 22 percent bracket, it makes it into a 40 over a 40 percent bracket because of this extra Social Security taxation.
So, you know, it's not the end of the world, but it just there are in certain income ranges possibilities.
people could really benefit from taking money from any way they can to try to keep their income below a certain level to avoid hitting that Social Security tax torpedo.
Right.
I mean, the conventional wisdom has been to delay taking tax-deferred accounts as long as possible to allow them to grow as long as possible.
But there's another way of viewing it, and that is always being sure to fill out your brackets.
In other words, if you're in a low tax bracket early in retirement, which can be the case for a number of people that are living on after-tax investments and haven't yet begun receiving Social Security or taking required minimum distributions from accounts,
Sometimes you want to be taxed actually more at that stage when you're in the low tax bracket rather than avoiding taxation as long as possible and having to pay and have to draw money out of a tax deferred account and get taxed at a higher rate later in retirement.
Showing 61–80 of 97 · page 4 of 5
← Previous
Next →