In this episode of Retire With Style, Alex and Wade answer listener questions on key retirement planning topics. They discuss penalty-free withdrawals from 401(k)s, the role of Roth conversions for both younger savers and retirees, and the distinctions between qualified and non-qualified accounts. They also examine how long-term demographic trends may influence market expectations and investment strategies in the decades ahead.
 
Takeaways
<ul class="css-h4c1sf">
<li>The rule of 55 allows penalty-free withdrawals from 401(k) plans if employment is terminated after age 55.</li>
<li>Roth conversions should be considered based on current and future tax rates.</li>
<li>It's important to fill your standard deduction to minimize tax liabilities.</li>
<li>The after-tax safe withdrawal rate differs between account types due to ongoing taxes.</li>
<li>Demographic trends are known and factored into market pricing over time.</li>
<li>Diversification across asset classes remains a key strategy for long-term investment success.</li>
<li>Understanding the implications of RMDs is crucial for tax planning in retirement.</li>
<li>Financial planning software can help manage taxes and withdrawals effectively.</li>
</ul>
Chapters
00:00 Introduction and Overview
03:01 Understanding the Rule of 55
10:56 Roth Conversions: Strategies and Timing
21:34 Tax Implications of Withdrawals
25:26 Demographic Trends and Market Predictions
 
Links
Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit <a href='https://retirewithstyle.com/'>RetireWithStyle.com</a> to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: <a href='https://www.wadepfau.com/books/'>https://www.wadepfau.com/books/</a>
This episode is sponsored by McLean Asset Management. Visit <a href='https://www.mcleanam.com/retirement-income-planning-llm/'>https://www.mcleanam.com/retirement-income-planning-llm/</a> to download McLean’s free eBook, “Retirement Income Planning”

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Episode 207: Your Tax Questions Answered: 401(k)s, Roth Conversions, and RMDs

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