How To Lower Your Taxes If You Have A Pension

Comments · 81

• JU

  @justing4601 · 9 months ago

  Thanks for your content.  Your platform and Erin Talks Money are my two "Go to" for financial advice and clarity.

  3

• JA

  @JamesK2064 · 5 months ago

  I've come to grips with the fact that I'm paying a lot of taxes.  It could be worse.  I could have less money and not pay any taxes at all.  That's even worse.

  3

• CA

  @Carlife6157 · 1 year ago

  I’m starting a pickle ball business and JOE is going to help me run it

  18

• CB

  @CBearLandkirk6076 · 1 year ago

  Excellent video ✅️

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• GE

  @georgejameson9317 · 1 year ago

  The pension is a bonus, I have a 95k pension, retired at 61 with  a generous severance package with no debt and haven't spent any savings.  I'm doing annual Roth conversions that get me into the lower end of the 24% bracket, just to limit rmd's a few years from now when we turn 73.  Not sure if we will move to a lower tax state or just rent large beach homes every summer.  When the rmd's come I'll put them in my brokerage account and make holidays  more memorable by cutting checks to the heirs.  Tax free for them fun for us, and a pile of Roth cash for them when we hit the end of the line.

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• JA

  @jamesalias595 · 1 year ago

  I wish that roth 401K's were an option when I was working and saving for retirement. My tax rate in retirement is higher than when I was working. When I was working I was married with children and the ability to itemize my taxes. Now that I am retired I have a pension and I am divorced so my SS is taxed at the 85% rate if I take just a few dollars out of my IRA. It is best to fix your retirement income so that it doesn't trigger taxes on your Social Security income, it is a shame they haven't indexed Social Security for inflation and you end up paying taxes on something you were taxed for in the first place. So my advise, pay taxes as early as possible so you don't have to pay taxes in retirement. Doing a Roth conversion close to retirement doesn't always make sense but doing it early does.

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• JA

  @jamgarza1 · 1 year ago

  Thank you

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• RA

  @RavensGod · 1 year ago (edited)

  Live in a state with no state taxes on any type retirement income. Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Wyoming, Illinois, Iowa, Mississippi, Pennsylvania.

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• MY

  @MyViewPointToday · 1 year ago

  Given that I plan to retire at age 62½ and begin taking my pension at that time, while my wife has already started her pension and will begin receiving Social Security in September 2026, how can we best manage our projected $120,000 annual retirement income to minimize taxes—particularly the $24,000 that falls into the 22% tax bracket above the $96,000 threshold? Should I delay taking my own Social Security benefits to avoid increased taxation, and if so, what strategies would you recommend to optimize our tax situation and retirement income overall?

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• VE

  @vernshird711 · 1 year ago

  I'm retiring at the end of the year at age 60; however, my wife is a high earner and will still be working for several more years.  I turn 65 at the end of 2030 so our joint income needs to be low in both 2028 and 2029 during the two-year IRMAA lookback.  This means I can only have 2 income streams those two years, my pension and one of the following: SS, p/t job, or 401k.  Anyone else married and trying to avoid IRMAA?  What are your strategies?

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• TO

  @tombkk1322 · 1 year ago

  Good video. My problem is finding the right asset location for my bonds in retirement. Roth or taxable are my choices. My inclination is to stay 100% in stocks in my Roth and use my taxable for bonds but I know that’s not the most efficient way.

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• ST

  @stephanebogen5411 · 1 year ago

  Interesting discussion, especially for me around the pension. Can you elaborate about pension and Lump Sum options? I would like to study more options that are not related to a roll over into an IRA. You mentioned lump sum into some guaranteed income and passing to heirs? I have modeled my monthly payments versus lumps sum and I need a return of 6-6.5% to make the lump sum more attractive than monthly annuity with 50% survivor.