When Should You Take Social Security? (Don't Screw This Up) - 574

Summary

Your Money, Your Wealth – Episode 574

"When Should You Take Social Security? (Don’t Screw This Up)"
Hosts: Joe Anderson, CFP® & Alan “Big Al” Clopine, CPA
Date: March 24, 2026

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Episode Overview

In this episode, Joe and Big Al answer detailed listener questions revolving around Social Security claiming strategies and retirement readiness. With a signature mix of humor and deep financial analysis, they spitball plans for three couples at different life stages: Bijou Plutus in Massachusetts, Dr. Jekyll & Mrs. Hyde in the Twin Cities, and Diggler & Roller Girl in Tennessee. The focus is on determining optimal Social Security timing, considering pensions, spend rates, tax diversification, and withdrawal strategies.

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Key Discussion Points & Case Analyses

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1. When Can I Retire and When Should Hubby Take Social Security?

(Bijou Plutus, Massachusetts)

[02:06]–[10:28]
Scenario:

• Caller (62) has worked 30+ years at a nonprofit ($87K/yr). Husband (64) retired, has $20K/yr pension (COLA), part-time work ($50K), may scale back.
• Social Security at 67: Hers $31K/yr, His $25K/yr.
• Assets: $580K in 403(b), $1K in Solo 401(k), $260K Roth IRAs, $70K emergency fund (including I bonds), home valued at $500K (no mortgage), $84K/yr spend.
• Question: Can she retire at 65 or perhaps earlier (and pay for health insurance)? Should her husband claim Social Security early?

Key Insights:

• Don’t be embarrassed by your “modest” numbers:

  "Please, please don’t be embarrassed. These are great numbers."
  — Big Al, [05:41]

• Projection and Feasibility:
  • Grow assets ($961K at present) at 6% for 3 years plus $48K/year contributions = ~$1.3M by age 65.
  • Accounting for 3% inflation, their spend will rise to ~$92K at retirement.
  • Pension + hubby’s SS (at FRA, age 67) covers $44K, rest (~$48K) comes from portfolio: withdrawal rate 3.7%.

  "To me that looks fantastic."
  — Big Al, [06:32]

• Social Security Timing:
  • Suggest husband claims at 67 (FRA), wife waits to FRA or longer for higher benefit.
  • Working to 65 for insurance, otherwise, bridge with side gig or part-time work.
  • If retiring earlier, increase withdrawals at the start; dual Social Security will later reduce drawdown.

Tax & Account Structure Recommendations:

• Balanced tax-advantaged assets (pre-tax and Roth).
• No urgent need for brokerage account; boost Roths via contributions/conversions.
• Shift Solo 401(k) savings to Roth option due to their likely lower tax rate.

  "Why wouldn’t you?" (regarding Roth 401k contributions)
  — Joe, [09:37]

Notable Moment:

• Playful banter about car choices and a “geriatric cat” ([04:32]–[05:06]).

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2. Early Retirement for the Spendy & Pension-Rich?

(Dr. Jekyll & Mrs. Hyde, Twin Cities, MN)

[11:50]–[28:44]
Scenario:

• Ages: 51 (Dr. Jekyll, insurance, $150K growing 3%), wife 49 (teacher, $115K, big pension).
• Current savings: $800K in 401(k) (2% Roth), $1.5K Roth IRA, $2.6K brokerage.
• HSA, VEBA (for medical), wife has $125K in 403(b), pensions vary with retirement age (potentially $60K/yr for wife at 60, $72K/yr for him at 56.5 via a lump sum or $6K/mo pension).
• Annual retirement goal: $200K/year adjusted for inflation; love to travel, 3 kids (two launched, one finishing college), $600K home ($210K mortgage at 3.4%), anticipated inheritance (~$300K in 10 years).

Key Insights:

• Pensions Are Game-Changers:
  • Substantial pensions reduce necessary portfolio draw, though projections are tricky with so many long-term variables.
• Savings and Spend:
  • By age 56 (in 5 years), estimated $1.5M in investable assets, plus pensions.
  • With her salary, shortfall is only $27K/yr — withdrawal rate of ~1.8%.
  • Lump sum pension plus other assets could provide $2.6M total, enabling $100K/yr drawdown (~3–4% WR).
• Withdrawal Strategy:
  • Re-run figures regularly (every 5 years) as assumptions/markets change.
• Social Security:
  • Both expecting $3.5K/mo at 67; suggest delaying SS (as late as possible) to maximize benefit. Recalculate in 60s based on situation.

  "My plan is to take it as late as possible."
  — Joe, [24:49]

• Tax Diversification:
  • Overweight tax-deferred (traditional) accounts; recommend switching to all Roth contributions immediately for better tax balance.
  • Okay to do pre-tax and then convert in lower-income years post-retirement, but Roth preferred due to fixed pension income in retirement.

On Inheritances and Roth Conversions:

"You're not really planning for it if you mention it three times in your email!"
— Joe (paraphrased), [21:06]

• Only retirement accounts can be converted to Roth, but you can use inheritance to pay conversion taxes.

Notable Quotes & Moments:

• On loving their jobs and each other:

  "She’s a saint...I’m so proud of her and her career. Oh my god, this is like a love novel."
  — Joe & Al riff, [17:00]–[17:32]

• Garage fridge debate and Minnesota banter, [12:44]–[13:02].

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3. Should We Take Social Security Early and Just Work For Fun?

(Dirk Diggler & Roller Girl, Tennessee)

[29:49]–[41:04]
Scenario:

• Dirk (57), retiring at 58, $102K COLA pension (+$9K at 60). Roller Girl (58), $74K salary, $20K COLA pension.
• $200K in 401(k), $80K emergency fund, $300K brokerage. $190K mortgage at 2.5%.
• Spending goal: $90K/yr (stated), but actual may be significantly higher.
• Social Security at FRA: His $43K/yr, Hers $20K/yr.
• Want to know if he can take SS early, with a break-even at 77, and simply “recreationally work” for extra spending money.

Key Insights:

• Spending Reality Check:
  • Despite citing $90K/yr spend, actual outflows closer to $200K based on income/savings.

  "Most people want to replicate their paycheck as much as they can."
  — Joe, [35:18]

• Can They Afford It?
  • Large pensions act as a floor; they could safely spend $140–$150K/yr (today’s dollars), even if portfolio draws fast.
  • Even with heavy spending early and smaller investable assets, the pensions are so large that they provide security.
• Social Security Strategy:
  • Joe doubts the break-even math. Recommends:
    • Wife takes SS early due to smaller benefit; husband defers for larger survivor benefit.
    • “If he passes, she gets that same benefit. So that's what I would do.”
  • If cash flow is tight, take sooner. But mathematically, waiting is advantageous due to pension coverage.
• Lopsided Savings:
  • Like many with big pensions, their 401(k) is relatively small—common but manageable if spend aligns.
• Behavioral Insights:

  "It's hard to cut it in half [your spend]...has been our experience."
  — Al, [40:55]

• On “recreationally” working:
  • The word causes tongue-twisting hilarity:

    “Can I simply recreationally work?...It’s a tough combo.”
    — Joe, Al & Listener, [33:04]–[34:15]

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Expert Quotes & Memorable Moments

• On Listener Modesty:

  “Please, please don’t be embarrassed. These are great numbers!”
  — Big Al [05:41]

• On Social Security Decisions:

  “Should you claim Social Security early, at full retirement age, or wait until age 70? The difference can mean thousands of dollars more in retirement income every year—or a permanent reduction you can never undo.”
  — Joe [10:36]

• On Recreation and Retirement Math:

  “Most people want to replicate their paycheck as much as they can.”
  — Joe [35:18]
  “It's hard to cut it in half [spending]. Has been our experience.”
  — Big Al [40:54]

• On Spouse Strategy:

  “I think she should take it at 62 because it’s a smaller benefit. He goes longer to get a bigger benefit for the family.”
  — Big Al [40:12]

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Noteworthy Timestamps

• Bijou Plutus’ Question & Analysis: [02:06]–[10:28]
• Dr. Jekyll & Mrs. Hyde’s Scenario: [11:50]–[28:44]
• Dirk Diggler & Roller Girl’s Case: [29:49]–[41:04]
• Social Security Claiming Strategy Breakdown: [10:36], [24:49], [40:12]
• Listeners’ Fun Anecdotes & Car/Drink Choices: Sprinkled throughout, see [04:32], [13:03], [30:21], and [33:04]

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Takeaways & Actionable Tips

• Run the Numbers Regularly: Life and markets change—rerun your retirement analysis every 3–5 years or as assumptions shift.
• Social Security Should be Strategized: Delaying can boost long-term income, especially with longevity and spousal considerations.
• Understand Your Real Spend: Calculate what you actually live on today before projecting retirement needs.
• Tax Diversification is Key: Favor Roth contributions if you’re pension-heavy or your future tax rate is likely to be higher.
• Pensions Change the Game: If you have a strong pension, focus on cash flow and how to best supplement it, rather than stressing over portfolio size alone.

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Final Thoughts

Joe and Big Al underscore that Social Security is a multidimensional decision connected to taxes, longevity, your spouse’s plan, and all assets. "Spitball" analyses are valuable, but listeners are reminded to seek professional, comprehensive reviews before making major retirement decisions.

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This episode is packed with practical spitballs, real listener stories, and classic YMYW humor.
For more resources, download YMYW’s Social Security Handbook [see show notes].

Transcript

[Joe Anderson]

Joe and Big Al focus on Social Security claiming strategies as part of the retirement spitballs today on youn Money, you, wealth podcast number 574. Bijou Plutus and her husband in Massachusetts are 62 and 64 with about a million dollars. Can she retire at 65 and should he claim Social Security early? Dr. Jekyll and Mrs. Hyde in the Twin Cities have about the same at 51 and 49 plus big pensions and high spending. Can they afford to retire early and when should they claim Social Security? Dig Roller Girl in Tennessee are 57 and 58 with about 600k and Digler estimates his Social Security break even is at age 77. Can he collect Social Security early and simply work recreationally? If you're listening in Apple Podcasts right now, do us a favor and leave your honest rating and a review. If you're listening on Amazon, Audible, Castbox, GoodPods, Pandora Player, FM, Podcast Addict, or Podchaser, you can rate us there too. It helps a lot when you do. I'm Executive producer Andi Last, and here are the hosts of youf Money, you, Wealth, Joe Anderson, CFP and Big Al Clopine, cpa.

[Listener/Caller]

Hello, Joe, Big Al and Andy love your information and entertaining podcast. I know this sounds geeky, but I get a spark of joy when your money or wealth drops into my podcast queue each Tuesday. Wow, geeky.

[Joe Anderson]

That I do too. That means that something's working.

[Big Al Clopine]

Sounds lovely, right? All right.

[Listener/Caller]

Hey, I wanted to request a spitball for some time but have been embarrassed by buying modest numbers compared to most of your listeners. But here it goes. Oh, don't worry about it.

[Big Al Clopine]

Yeah, don't worry about it at all.

[Joe Anderson]

And this is from Bijou Plutus in Massachusetts and I. So I had to look that one up. Apparently it's a type of pillow. But also bijou is French for jewel and Plutus is the Greek God of wealth. So this is the jewel of wealth that has written into us.

[Listener/Caller]

Okay, but it's also a pillow.

[Big Al Clopine]

Yeah, it could be a pillow that wrote in. Got it. Okay, I think Andy's second description is right.

[Listener/Caller]

The latter. The latter. I'm 62 and I've worked for the same nonprofit for 30 years. Current salary is $87,000. My husband, age 64, retired a year ago. He has a $20,000 annual pension with a cola and does some part time work that brings in about $50,000. He doesn't plan to. He doesn't plan to this side gig. Okay, hold on.

[Joe Anderson]

Turn this into a side gig. I think there might be some Words you missed.

[Listener/Caller]

It doesn't plan to turn this into a side gig, but might scale back as the years progress.

[Big Al Clopine]

Yeah, that sounds good.

[Listener/Caller]

All right. Husband and Social Security at 67 will be $25,000. Mine will be $31,000. Thank you for giving us the annual number there too, by the way.

[Big Al Clopine]

Yes. Pillow for short.

[Listener/Caller]

All right. My 403, 4% with 4% match is $580,000. My husband's self employed, 401k, just started to contribute $24,000 a year, so that only has $1,000 in it. Combined Roth IRAs are $260,000, always maxing out. High yield savings account is in some I bonds and an emergency fund is 70,000 at no brokerage account. We own our home outright worth about $500,000. No consumer debt, and always try to live within our means. We seem to spend an average of about $84,000 a year. I'm planning to retire at 65, mainly hanging on for the health insurance. If I could afford to pay for health insurance on my own, I might retire and scale back at around 63. But I can't figure out what those costs will be. I also wonder what impact would be retiring two years early and do I have enough in my 403 and the other accounts? Is my plan to retire at 65 even feasible or should I hang on even longer? Would starting hubby Social Security early make sense? Okay, some good questions here.

[Big Al Clopine]

Great questions.

[Listener/Caller]

Yep. Yeah, I can already tell. I think they're not bad. They're not.

[Big Al Clopine]

Yeah, I've done some analysis in which I'll get to in a minute.

[Listener/Caller]

All right. Okay. I Drive a 2021 Subaru Forester. Where are they from? Seattle?

[Big Al Clopine]

Oh, no, Massachusetts.

[Joe Anderson]

Massachusetts.

[Listener/Caller]

All right. And my husband drives a 2023 Toyota Highlander. He likes any type of light beer as long as it's cold. And I like an occasional glass of wine. We only have one kid fully launched in one geriatric cat. Oh, killed that one.

[Big Al Clopine]

You killed it?

[Listener/Caller]

I didn't get it.

[Big Al Clopine]

I was ready to pronounce it.

[Listener/Caller]

Geriatric. Got it. Thanks for any insights you might be able to share. Respectably yours. Bayou Plutus in Massachusetts.

[Big Al Clopine]

Yeah, I thought you were going to say Jeria trick.

[Listener/Caller]

Oh, man. I looked at it, I was like, oh, boy.

[Big Al Clopine]

Oh, wait.

[Listener/Caller]

It could be tricky.

[Big Al Clopine]

Got her done.

[Listener/Caller]

All right, so they want to live off of $84,000 a year. They're 62, he's 64. She would like to work until full retirement age or at least Until Medicare comes in because she can't figure out how to pay for that health insurance. So $84,000 plus health insurance. Probably close to $100,000 if she wanted to hang it up today.

[Big Al Clopine]

Yeah, probably so.

[Listener/Caller]

So what say you, Big Al?

[Big Al Clopine]

Well, first of all, I would say please, please don't be embarrassed. These are great numbers.

[Listener/Caller]

Huge bucks looking assets.

[Big Al Clopine]

It's a million bucks of liquid, half a million in home ownership. So here's what I did. I took 961,000. That's what they got currently. I went forward three years, 6%. I added about 48,000 a year based upon what they're saving and I end up with 1.3 million. Then I look at the spend 84,000, 3% inflation. Three years, it's about 92,000. Subtract out fixed income, which is pension, husband's Social Security. I think husband should take it at full retirement age. That's 44,000. Shortfall is 48,000. And then the distribution ratio at 65 is 3.7. To me that looks fantastic.

[Listener/Caller]

Yeah, that's without her Social Security.

[Big Al Clopine]

That's without her Social Security. Yeah, that's his with his, so. And I didn't run it because you can only run so many scenarios on a podcast. But my guess is that they could probably retire a little bit earlier because

[Listener/Caller]

you got to just bridge the gap and you have a little bit higher burn rate in the beginning, but you'll make up for it at the end because of the dual Social Security coming in plus the pension.

[Big Al Clopine]

I think if it were me, I'd probably work to 65, Joe. And then I would probably have my husband take Social Security at 67. He's a couple years older, so simultaneous. So it doesn't feel like there's too much drain on the account. Then I would wait. I'd have her wait until full retirement age because that's a bigger benefit. And then you're going to be sitting pretty, I think.

[Listener/Caller]

Yeah. Right off the bat here they can take around $40,000 out of the portfolio if they retire tomorrow.

[Big Al Clopine]

Yeah.

[Listener/Caller]

So $40,000, he's going to work his side gig for a little bit more. So he's making $50,000 plus the pension. That's 70 plus 40.

[Big Al Clopine]

And I'm going to say this, maybe work the side gig until Social Security, then stop.

[Listener/Caller]

Yeah, exactly. That's going to cover any type of major shortfall or large earn rate from the portfolio.

[Big Al Clopine]

Correct.

[Listener/Caller]

As long as he doesn't mind working the part time work. And then if she wants to hanging up earlier. I don't know. Can she get a side gig that pays 20 grand a year?

[Big Al Clopine]

You know? Yeah, I think the, the prognosis is really good. Depending upon. I mean if you want to work till 65, great, but you may not have to. But 65, it looks, looks fantastic.

[Listener/Caller]

They are. I like how they're diversified too. From a tax free and a taxable perspective. 600,000 or 650 roughly in, you know, pre tax accounts to 50 and tax free.

[Big Al Clopine]

Yeah.

[Listener/Caller]

You know, from a percentage perspective, 25% of their liquid ass are in a Roth. So that's a pretty high percentage given.

[Big Al Clopine]

It's a really good percentage.

[Joe Anderson]

Do you think they should put something in brokerage?

[Listener/Caller]

No, I don't think they need to. I would put more money into the Roth if I was going to do anything.

[Big Al Clopine]

Me too.

[Listener/Caller]

Well, I would do conversions, you know, to get maybe a little bit more money into the Roth. So right now what is her. She makes 87,000 plus the 50 plus. So what do you think?

[Big Al Clopine]

Yeah. Yeah. Well, she's 401k. She puts in 4%, so that's about almost 4,000. And the match is about 4,000. He puts in 24,000 a year. And he could do a Roth option on the 401, his personal 401k self employed. And then would you go pre tax

[Listener/Caller]

or would you go Roth?

[Big Al Clopine]

I go Roth.

[Listener/Caller]

I would too.

[Big Al Clopine]

Yeah. Why not? Because make it even better.

[Listener/Caller]

Yeah. So I would change his 401 contribution to the Solo Roth 401K.

[Big Al Clopine]

Yeah. Especially Joe because he retired a few years ago and they're in a lower income bracket. So yeah, I'd go Roth.

[Listener/Caller]

Yep. Yeah, that 50,000 they're sheltering 2450 plus 90 is 130, minus the standard deduction is $100,000 not including contributions. So most of the contribution is going to be in the 12% tax bracket.

[Big Al Clopine]

I know. So why wouldn't you?

[Listener/Caller]

Yeah, why wouldn't you? Yeah, for sure. So, yeah, switch contributions to Roth, keep growing that. And if they would like to hanging. I mean I think they, they can make work optional at this point.

[Big Al Clopine]

Yeah, right.

[Listener/Caller]

It's a little tight, but I think they're doing things appropriately by him having the side gig and if he wants to do.

[Big Al Clopine]

He could maybe do a little side gig. I think, you know, most conservative, you work to 65, but I agree with Joe, you don't necessarily have to.

[Listener/Caller]

Yeah. So. And you know, drives you a little nuts at the old office. Guess what?

[Big Al Clopine]

And you know, your husband retired and you want to. So maybe you should think about that earlier.

[Listener/Caller]

Yeah.

[Big Al Clopine]

And there's all kinds of insurance options. Right. So don't.

[Listener/Caller]

Just knowing that sometimes is like, probably work would is, you know, hey, at any moment I can just walk out the door and say, go pound sand.

[Big Al Clopine]

Yeah. Yeah. And maybe you work till 63 or 63 and a half and get two years or 18 months of cobra, whatever it is right now.

[Joe Anderson]

So should you claim Social Security early at full retirement age or wait until age 70? The difference can mean thousands of dollars more in retirement income every year or a permanent reduction you can never undo. And that decision does not exist in a vacuum. It has to fit your taxes, your spouse's benefits, your longevity, and your overall retirement plan. Before you make one of the most consequential financial decisions of your life, make sure you understand all of your options. Download our Social Security Handbook. If you're new to ymyw, this is one of the core resources you'll want to grab immediately. You'll learn who qualifies and how benefits are calculated. The real cost of claiming early versus the real upside of waiting. How working while collecting impacts your check. Spousal, ex spousal and survivor benefit strategies, including the 2025 changes that eliminated the weapon GPO. For those of you with pensions and exactly how your Social Security income gets taxed, click or tap the Social Security Handbook link in the description of today's episode to download your free copy courtesy of youf Money, you, Wealth, and pure Financial Advisors. When you download it, choose podcast in the how did you'd hear about us? Dropdown.

[Listener/Caller]

Okay, let's go to Dr. Jekyll, Mrs. Hyde. They're in the Twin Cities, my hometown.

[Big Al Clopine]

Yeah.

[Listener/Caller]

Good afternoon. Good afternoon, YMYW team, and happy Halloween.

[Big Al Clopine]

We're on top of that.

[Listener/Caller]

Little bit behind here. I look forward to your show every week. I travel for work a few days most weeks and listen to your show in a car or while working from the home at kitchen table.

[Big Al Clopine]

So he's been listening every week for his question.

[Listener/Caller]

Just waiting. Just waiting. I guarantee you stop listening because that's too long. Yeah.

[Big Al Clopine]

Yeah.

[Listener/Caller]

We're about four. Four months late here. I would love a retirement spitball analysis for my wife and I. I enjoy sampling local beers while traveling for work, but before cold tours, light at home with my bros.

[Big Al Clopine]

Okay. All right.

[Listener/Caller]

Of course. Latte? Yeah, I'm probably one of his bros.

[Joe Anderson]

Probably down in the basement or in the garage.

[Listener/Caller]

Let's go. Guaranteed, he's got a. He's got a fridge in the Garage, guaranteed.

[Big Al Clopine]

Yeah, right. Or maybe. Maybe in the basement.

[Listener/Caller]

Did you get a garage fridge yet?

[Big Al Clopine]

No. I can fit it in the refrigerator.

[Listener/Caller]

The garage fridge is where it's at.

[Big Al Clopine]

That's where it's happening, huh?

[Listener/Caller]

Yep.

[Big Al Clopine]

Okay. I'll think about it.

[Listener/Caller]

That's where all the beer goes.

[Big Al Clopine]

As soon as I move, I go through 20 boxes from my parents. I still got to go through. Which I'm going to be adding to here shortly.

[Listener/Caller]

Got it. All right. Mrs. Hyde enjoys a cold Pinot Grigio. I drive a company vehicle, total Toyota Camry and the wife drives a 2012 Honda minivan for now, but will downsize most likely in the coming year so we get it paid off before any thought of retirement. I work in the insurance industry and the wife is a teacher in the Twin Cities. Minnesota. Yeah, cities. Yes. Minneapolis, St. Paul.

[Big Al Clopine]

Right. Even I know that and I'm not from there.

[Listener/Caller]

Yeah, that's why the Minnesota Twins are the Minnesota Twins.

[Big Al Clopine]

Yeah, right.

[Listener/Caller]

Twin Cities.

[Big Al Clopine]

Yeah, right.

[Listener/Caller]

That's right. Just in case you wanted to know that.

[Big Al Clopine]

Okay, well, that's helpful.

[Listener/Caller]

All right, thank you. Married 26 years. Three awesome kids. Two launched and one finishing college. Tech school. Me 51 years old. Salary and bonus of approximately $150,000 per year and growing 3% 401K match saving $23,000 plus match will add up to about $30,000 plus the match in 2026 and beyond. $5,000 in HSA and will max it out each year until I retire. I have almost 28 years with my employer. Awesome company and fantastic co workers. Very fulfilling career but a lot of work stress in retirement. I have access to health insurance of $600 a month through my employer as of October 25, I have $800,000 in my 401. 2% of that is in Roth. I also have $1,500 in a Roth IRA. For fun, I open up a brokerage account this year and have about $2,600 in stocks. Robotic Quantum AI.

[Big Al Clopine]

AI. Okay, cutting ED guys

[Listener/Caller]

but we'll switch to maxing out backdoor Roth $8,000 each instead and throw some fun money at the brokerage in BTI or similar after the Roth and 401K are filled up. Wife turns 50 soon her salary is $115,000. She's saving $5,000 a year to her 403 for now and then contributing 7 or 8 to 8% in her pension. Hoping after one of our kids wedding, hoping after one of the kids wedding next year she will increase that contribution. She has about $125,000. In her 403, she receives a small match of $0.20 up to 3%. If she retires at 55, her pension would be about $22,000 annually. With the 1% COLA starting at 65, or she works until 60, it'd be approximately $60,000 annually at retirement plus a 1% COLA starting at 65. She has a VEBA account.

[Big Al Clopine]

What is that?

[Listener/Caller]

God. I know what that is.

[Joe Anderson]

Voluntary Employees Beneficiary association plan for medical expenses.

[Big Al Clopine]

Oh, yeah. Andy wrote that in the notes for us. Now I see.

[Listener/Caller]

Yeah, yeah, yeah, yeah.

[Joe Anderson]

So I guess it's like an hsa.

[Listener/Caller]

Yeah, yeah.

[Big Al Clopine]

Yep, you're right.

[Listener/Caller]

Yep, yep, yep, yep, yep. Odd. I haven't seen those in years. They're not very common anymore.

[Big Al Clopine]

No, that's. I've never heard of it.

[Listener/Caller]

School district.

[Big Al Clopine]

So maybe it's something that they do. Yeah,

[Listener/Caller]

yeah. Instead of like an FSA, they probably.

[Big Al Clopine]

Yeah, yep.

[Listener/Caller]

So approximately $25,000 and will grow 2,000 and grow 2,000 each year until she retires.

[Big Al Clopine]

Okay, good.

[Listener/Caller]

All right. Social Security looks like approximately $3,500 a month each, starting at 67. Should one of us take this earlier or wait till 70? The plan is for her to work as long as she can, but at least 55, then do something else part time. She's a saint. This guy's very nice. He loves everyone. He loves his co workers. He loves his work.

[Joe Anderson]

He's got a perfect life.

[Listener/Caller]

He does, but it's stressful.

[Joe Anderson]

Yeah.

[Big Al Clopine]

Wow.

[Listener/Caller]

You wrote in Joe, he's my bro. We have some Coors lattes together in the Twin Cities.

[Big Al Clopine]

Right.

[Listener/Caller]

She's a saint and overworked, but I'm so proud of her and her career. Oh, my God. This is like a love novel.

[Joe Anderson]

It's a love letter.

[Listener/Caller]

Yes, it is. I'm sure she's gotten her wings to heaven five times over already. Oh, boy.

[Joe Anderson]

What is he buttering her up for?

[Listener/Caller]

Holy.

[Big Al Clopine]

He's going to have her listen to this podcast. I guarantee it.

[Listener/Caller]

To get the rule of 60 30. Even if that means she works part time a few years at the end of her career. I'm 95% sure 60 is the route she'll go. And this makes retirement much more attainable.

[Big Al Clopine]

Okay, okay.

[Listener/Caller]

I have a rule of 85 and a lump sum or annuity option if I retire at 56.5. And if I can, monthly pension option is going to be $6,000 a month. If not a bit more. A coworker who is 56 said his lump sum option is currently $1,300,000 with a very similar salary and progression salary scale as me. Both options are usually estimated 10% or so low I've heard. And of course based on interest rate, salary and years of service, etc. So we'll see where I end up. I'd get the lump sum at retirement most likely, but I'd invest it until age 59 and a half at least. I don't want to retire from work, but retire to something. I already have a few others when I retire, a few offers when I retire. Okay, he's going to do a little part time work. Maybe $40,000 a year until I don't want to anymore. Maybe around 60 or 62. I'm not opposed to working a bit more needed. Just would like the Freedom house is worth $600,000. We owe 210,000 with a 3.4% mortgage. Maybe have an inheritance of 300,000 in 10 years or so. But I don't even plan on it. You're planning on it? If you wrote it down, just say it. I think he is guaranteed or else it wouldn't even be in the letter. His love letter. But I love my parents so they're the best people ever. I Hope they live 50.

[Big Al Clopine]

I never want to see it.

[Listener/Caller]

I'm going, I'm going to give it to my dad's favorite charity. So. No, he didn't say that. He says this. We love to travel. We love Florida. Make two trips to Maui in the last two years. Oh, Big Al, that's your neck. That is it will continue to do so until retirement. We love taking our kids and their significant others on the trip, even every few years as well. Heading to Marco island with them this winter. Marco island, that's what, Florida.

[Joe Anderson]

Yeah, it's off the west coast of Florida.

[Listener/Caller]

Yeah.

[Joe Anderson]

Beaches. When I look at the. When I do the Google search, it's just pictures of beaches. That's it.

[Listener/Caller]

Yeah. I heard Marco Island's pretty cool. I was. No, I've never been. I was going to go.

[Big Al Clopine]

But you know about it.

[Listener/Caller]

I do know about it. I do know about when I lived there.

[Big Al Clopine]

Right.

[Listener/Caller]

But I never made it there in retirement. We'd like to have $200,000 per year adjusted for inflation. Wow, that's a healthy income. If we're a bit light on that until my wife retires at 60 and I'm part time, that's okay. We want the ability to travel by a car if needed. Not get too worried about a few Amazon packages. Showing up. Just enjoy life and make work. Something that isn't required after the age of 60. But it's fun. Also, Minnesota is a higher tax state. Do I go pre tax or Roth? And what percentage do you think? Or wait and do Roth conversions with my part time income and work in a little more post retirement. Or maybe you. Or maybe use interest income from inheritance for conversions.

[Big Al Clopine]

Ooh, okay, so he's got the inheritance

[Listener/Caller]

in there twice, but it's not expensive.

[Joe Anderson]

So much for not planning for it.

[Listener/Caller]

Yes. Yep. Or is this a good idea to throw more money into a brokerage account as a bridge until 59 and a half? Appreciate the spitball, Joe. If you're in town, look me up and I'll buy you a cold Coors light. All right. Thanks. Dr. Jekyll. Mr. Hyde.

[Joe Anderson]

Mrs. Hyde.

[Listener/Caller]

Mrs. Hyde. Yeah. I'll look you up a couple Coors lights.

[Joe Anderson]

He can meet a saint of his wife and his wonderful co workers and his lovely parents.

[Listener/Caller]

Wow. I can't believe you. Don Eburt could. Heaven wings, angel wings. Time's over, you know.

[Big Al Clopine]

Or Dr. Jekyll could come to Hawaii, we'll get together, have a Coors latte, and we'll talk about how much we love our wives.

[Listener/Caller]

Yeah, that would be wonderful. You guys tell me all about it.

[Joe Anderson]

I'll.

[Big Al Clopine]

I'll patch you in via Zoom.

[Listener/Caller]

Okay, perfect.

[Big Al Clopine]

So you can contribute.

[Listener/Caller]

Yes. All right, so there's a lot here. They got some pensions, they got monies. They want to retire early. They want to have a lot of fun. They don't.

[Big Al Clopine]

Yeah, so let me, let me set the baseline and then we can go from there. Okay, so they got about 900,000 right now. And I just said five years. They're saving about 50,000 into savings. Six percent interest puts them at 1,500,000. Okay. And they want to spend 200,000, Joe. And that with inflation, 3% gets to 232,000. So we got to spend a two hundred and thirty two. But we got pensions of, let's see, we've got his pension at 72,000. And we've got. Yeah, 72,000. Wife's salary would be about 133,000 at that point. So including her salary shortfall, 27,000. Distribution rate, 1.8%. And if he works, they're actually saving Now, I didn't do a secondary analysis, Joe. And the reason I didn't is because there's so many variables here. I think you recalculate in five years and see, does my wife need to continue to Work or can she work part time and see if this still works? But I get.

[Listener/Caller]

Now I understand what he's doing here. It's like, oh, my honey poo should retire at 50.

[Big Al Clopine]

I get where you go.

[Listener/Caller]

And he's good. She's got the angel rings, but I think she's going to work till 60.

[Big Al Clopine]

Yeah. 90% sure.

[Listener/Caller]

Yeah, 98% sure she's going to work until 60. And I think I'm not expecting this inheritance, but should I use it for conversions?

[Big Al Clopine]

And I do think if that happens, Joe, I think it looks really good. I think you could recalculate.

[Listener/Caller]

But he wants to take the lump sum, right. So let's say he takes the lump sum at 1.3. At 55, he's going to work another five years. That 900,000 you said turns to $1,300,000. So that's $2,600,000 liquid assets that he has at age 55.

[Big Al Clopine]

Right.

[Listener/Caller]

So you take away that pensioned of $70,000, he's got $2,600,000, let's call it. You know, he could probably spend maybe a hundred.

[Big Al Clopine]

Yeah, maybe a hundred.

[Listener/Caller]

Yeah, maybe 100,000. Three percent.

[Big Al Clopine]

Yeah.

[Listener/Caller]

That, that can come out of the portfolio plus her income until 60.

[Big Al Clopine]

And that's not necessarily a bad strategy too.

[Listener/Caller]

Right. So either way, I mean, I think you would want to do a little bit more analysis as you get closer to take the lump sum or the pension.

[Big Al Clopine]

I think all of this needs to be reanalyze it in five years to see where they're at.

[Listener/Caller]

Right.

[Big Al Clopine]

And of course, it depends upon the market too, Joe. We'll have to, you know, no one knows. Right.

[Listener/Caller]

Totally. Totally.

[Joe Anderson]

Social Security strategy.

[Big Al Clopine]

Social Security is way too early. Again, you 51, you recalculate security strategy.

[Joe Anderson]

My, my plan is to take it as late as possible. When that'll be, we'll see.

[Big Al Clopine]

Yeah, yeah, you re, you recalculate maybe in your 60s, you know, and see. Excuse me, See where you're at, I think. But as far as contributions, they should be all Roth at this point got, got 900,000 of tax deferred and almost nothing.

[Listener/Caller]

And they're going to have a ton of fixed income. That's tax at ordinary income.

[Big Al Clopine]

Yeah. And I, and I know they're in a higher tax bracket now with his job, but that's still what I would do. Just for a little more balance, what are they?

[Listener/Caller]

About 200,000. Minus their contributions, minus the standard deduction, they're probably in the 22% tax bracket.

[Big Al Clopine]

Probably yeah, yeah.

[Listener/Caller]

Now you, some of it might be in the 24.

[Big Al Clopine]

Now you could Joe, make an argument to go pre pre tax and then do conversions after when you're in a low bracket. So I wouldn't be upset with that, but I would probably switch to Roth just because of that. It's not balanced.

[Listener/Caller]

Yeah. So going through his questions, do I go pre tax or Roth 401k? So go Roth 100% Roth. Do I wait to do conversions? Yes, do conversions as well. But you can't do conversions with my part time income. You can help pay the tax on the conversions with your part time income. So a Roth conversion is when you're taking dollars from your retirement account and converting it into a Roth ira. You will have to pay the tax on that. So it's not. Or you can make a contribution with your part time income. So you can convert as much as you want, whatever that dollar figure is. But a contribution is going to be limited to how much money that you make as income or what the contribution limits are when you are part time.

[Big Al Clopine]

Yeah. And I would say this, he's got 800,000 in his 401k. He'll be retiring after 55. So that's where you get your extra income needed is right. From the 401k. Because at 55 you can as long as you work until at least 55 and then retire with a 401k, as long as it stays in the 401k, you actually can pull money out without penalty. It's a different rule than an Iraq.

[Listener/Caller]

Yeah. And then I think he's confused on another thing. It's like maybe use the interest earned from my inheritance for conversions. So the inheritance is going to be in a brokerage account that's in a non qualified account. It's not in a retirement account. So that cannot be converted into a Roth ira. Only retirement accounts can convert to a Roth ira. Why you would want to do that is the Roth IRA grows 100% tax free. So the interest that you're going to receive out the inheritance that you don't plan on spending, but you mentioned a few times in this overall email, is going to be taxed at ordinary income rates. If it's interest or if it's capital gains, it will be taxed at that rate. You can take those dollars and use them to make a contribution into Roth IRAs as long as you have earned income. So if you, if he's planning on working part time or the wife is going to continue to work at the school district I mean, you're good to go there. Or you use some of those dollars to pay for the taxes. Again, that, you know, on the, on the commitment.

[Big Al Clopine]

To me, that would be. You would do that. That's most important to, to pay the taxes on conversions with after tax dollars and then to be able to have extra money when you want to do things like vacations or whatever.

[Listener/Caller]

Yep, yep, yep.

[Big Al Clopine]

So I like that. Although that may not happen for 20 years.

[Listener/Caller]

Right. Well, you know, then it's like, is it a good idea to throw more money into a brokerage or bridge? I don't, I don't think you need a bridge until 59 and a half. As long as you work until 55. Yes. Like you said, it's the rule of 55. You can take the money out of the 401k plan.

[Big Al Clopine]

Yeah.

[Listener/Caller]

There is no 10 penalty. So there's no bridge that you would have to worry about as long as you do work until 55.

[Big Al Clopine]

Exactly. So I wouldn't. Yeah, I wouldn't worry about that. The rule of 55 will be important in this particular case, but there's so many different scenarios. Then you just want to rerun this in five years when you retire, and then.

[Listener/Caller]

Yeah, you got to rerun this all the time.

[Big Al Clopine]

And then rerun it at 60 when she wants to retire or if she wants to retire earlier than that, rerun it and see how it looks. So that's. There's. There's a lot here, but it's looking pretty good.

[Listener/Caller]

Very good. Okay, well, I'll look you up next time in the Twin Cities and at that. Take you up on that Coors Light

[Big Al Clopine]

and let me know when you're in Hawaii again.

[Listener/Caller]

All right.

[Joe Anderson]

To see how to turn your savings into income and maybe pay zero tax while doing it, you need to watch this week's you Money, you Wealth TV called How to Retire Tax Free with a Smart Income Plan. Joe and Big Al show you real examples of how couples can make $100,000 a year in retirement and pay zero in taxes by managing where that income comes from. They'll show you how to balance withdrawals from your ira, Roth and brokerage accounts, and how strategies like Roth conversions, the home sale exclusion, and qualified charitable distributions help you keep more of what is yours. And download our companion Tax Free Retirement Guide. It walks you through the tax brackets, capital gains thresholds, and proven moves that can help you build a retirement income plan with little to no tax bill. Click or tap the links in the episode description to watch how to Retire Tax Free With a smart income plan on YMYW tv and to download your free tax free retirement guide. Tell a friend.

[Listener/Caller]

All right, let's. We're moving on. Howdy. From Diggler in Roller Girl. Well, Dick Dink. Dick. Dick.

[Joe Anderson]

Dirk. Diggler movie. Boogie Nights.

[Listener/Caller]

Yes, yes, yes.

[Joe Anderson]

Mark Wahlberg and Heather Graham.

[Listener/Caller]

Yep.

[Big Al Clopine]

Okay. Yeah.

[Listener/Caller]

Did you like that movie?

[Joe Anderson]

I never saw it.

[Listener/Caller]

You've never seen Boogie Nights?

[Joe Anderson]

No.

[Big Al Clopine]

Even I've seen that.

[Joe Anderson]

What did you think of it, Al?

[Big Al Clopine]

It was a little odd, but it was entertaining. Okay.

[Listener/Caller]

Yeah. I don't know where I stand on Boogie Night.

[Big Al Clopine]

I don't know. It was different. Do you remember that?

[Listener/Caller]

Yeah. I mean, it was like, there's a lot of drugs and of course there's a lot of sex.

[Joe Anderson]

Yeah. I read the little recap. And basically the guy becomes a porn star and then he gets derailed by his drug addiction.

[Big Al Clopine]

Yeah, something like that.

[Joe Anderson]

Sounds like a whole lot of fun. Very uplifting movie.

[Big Al Clopine]

I remember Roller Girl being kind of distinctive.

[Listener/Caller]

Yeah.

[Big Al Clopine]

In her outfit.

[Listener/Caller]

Yeah, she's attractive. A lot of really good actors. Very good director. So there was parts of it. It was, you know, well written. It was from that aspect of it. But I don't know. It's not.

[Big Al Clopine]

You wouldn't watch it again?

[Listener/Caller]

I'm not. I couldn't.

[Joe Anderson]

That's not enough violence.

[Big Al Clopine]

Yeah.

[Listener/Caller]

I don't. I don't like the drug movies. I love the violent movies. Like, you don't see people all coked out and stuff. It just makes me nervous. It's like, gives me anxiety.

[Big Al Clopine]

Well, and I wouldn't watch it either for probably the same reason. Wow.

[Listener/Caller]

Okay. I'm surprised you've seen this movie.

[Big Al Clopine]

I know. It's. It's shocking.

[Listener/Caller]

It is shocking. It is. It's not a Hallmark movie.

[Big Al Clopine]

I guess I wasn't watching a Hallmark movie that night.

[Listener/Caller]

Okay. My drink of choice is gin and tonic. Roller Girl loves a dirty martini. I drive a Ford Bronco soft top and she's got a GLE350. I'm planning on retiring next year at the age of 58. I'll have a pension co adjusted of 102 and a second at age 60 of 9,000. All right. I'm currently earning $180,000. Roller Girl earned $62,000 and is currently 58. Her salary is $74,000. And we'll have a COLA adjusted pension of $20,000. Our annual spend is $90,000. My Social Security at FRA is $43,000. Hers is $20,000. Okay. Your annual spend is $90,000. And there's all sorts of different types of fixed income coming in. His COLA adjusted pension is 102,000.

[Big Al Clopine]

Yeah. If you. When you read carefully this, his spending is not 90. Okay, you'll come to that same conclusion.

[Listener/Caller]

All right. We have a traditional 401 with $200,000 today. And we have $80,000 in emergency fund and $300,000 in a brokerage account. Our debt is 190 with a 2.5% mortgage or mortgage on it. I plan to draw from the 401 rule of 55 to bridges Social Security. My question is regarding Social Security. It appears that my break even age from age 62 early draw is 77 and the delta payment is 1,400. Can't I simply re. What is that word?

[Joe Anderson]

Where are you Recreationally.

[Big Al Clopine]

Oh yeah. Recreationally.

[Listener/Caller]

Oh, I thought it was re. Recreationally. The lights in here are bright.

[Big Al Clopine]

Can I simply re.

[Listener/Caller]

Re. Can I simply.

[Big Al Clopine]

It's hard to say.

[Joe Anderson]

Can I simply recreationally work to work for fun.

[Listener/Caller]

Simply recreationally work and earn $1,400.

[Big Al Clopine]

Tongue twister. And I knew how to say it and even I couldn't say it.

[Listener/Caller]

It's like the combination of the three words just kind of blew me up there.

[Big Al Clopine]

It's a. It's a tough combo. Simply recreationally work.

[Listener/Caller]

Can I simply recreationally work?

[Joe Anderson]

See, the more times you say it, the more confident you sound about it.

[Big Al Clopine]

Well, yeah, yeah. Let's re tape this part now.

[Listener/Caller]

Right. I guess you can simply re. Recreationally work. Yeah, it's extra fun and earn that fourteen hundred dollar Delta. What are your thoughts on our chance of success? Okay, so there's. There's a lot going on here.

[Big Al Clopine]

Right. So let me start with spending.

[Listener/Caller]

Okay.

[Big Al Clopine]

Okay. So they make. She. She makes. Let me find that. He makes 180, she makes 74. So they.

[Listener/Caller]

250,000.

[Big Al Clopine]

250k. And look at their savings is 580,000 and they want to spend 90.

[Listener/Caller]

Yep.

[Big Al Clopine]

What do you think?

[Listener/Caller]

Nope. Nope.

[Big Al Clopine]

Their current spending with monies going into 401ks, which isn't a ton because that's 200,000. They're probably spending 200,000 or more. Not sure what the taxes are in Tennessee, but I don't think they're that high.

[Listener/Caller]

Yeah, it all depends on children. I mean, do they have 10 children

[Big Al Clopine]

college and they're all graduating?

[Listener/Caller]

Yeah. I don't know.

[Big Al Clopine]

Same thing. Yeah.

[Listener/Caller]

So the crux of this is really fine tuning exactly what you're spending, how you're spending it. And you think that you can go. All right. Most people want to replicate their paycheck as much as they can.

[Big Al Clopine]

Correct.

[Listener/Caller]

So if you think of it that way, they're making 250,000. You take away some taxes. So call it, you know, you have roughly 200,000, maybe a little bit less. Let's call it 180. Right. And that you want to spend half of what you're currently spending today.

[Big Al Clopine]

People are saying, oh, I don't need

[Listener/Caller]

this, I don't need that, or whatever.

[Big Al Clopine]

So, okay, so you don't need any. We do this all the time. Oh, you don't really need any clothes. Your car's never going to break down. Oh, you're never doing any trips.

[Listener/Caller]

Soft top.

[Big Al Clopine]

It'll last forever. Right.

[Listener/Caller]

The life expectancy on a poor Bronco.

[Big Al Clopine]

Anyway. So here's what we're getting at, I guess, which is look at your net salary after 401k in taxes. Right. And look at your why and that. And that's a number. Right. That. That could be are you. Are how. And then. Then let's say that's 200,000, just as an example. Income's 250. Taxes, money going to 401k. Let's say net is 200. And I think I'm. I'm being generous, but. Because I think it might be more. But Anyway, you're spending 200,000, and then you got to evaluate. It's like. Because a lot of people have no idea what they're spending, then you got to evaluate, okay, if I'm. If I'm spending, if I'm spending 200,000 now, can I really spend 90? Am I really going to cut my living expenses more than half? Right, right. And then most people would say no. So I.

[Listener/Caller]

Do you want to.

[Big Al Clopine]

Yeah.

[Listener/Caller]

It's like you're retired. You're Saturday every day.

[Big Al Clopine]

Yeah.

[Listener/Caller]

You know, you want to do different things. You want to travel, you want to see the world or whatever. Take your Ford Bronco out.

[Big Al Clopine]

Now, on the other hand, I did compute what they could spend roughly.

[Listener/Caller]

Okay.

[Big Al Clopine]

So I inflated their assets with what they're. I actually didn't add any because I'm not sure what they're saving, if any. But Anyway, it becomes $700,000 in four years, and so that's great. The fixed income would be about $136,000 at that point from pension and actually two pensions. And then I think they could spend about $164,000 if you add those two together. And also with a 4% distribution rate.

[Listener/Caller]

Right. They could probably do a 10% distribution rate. It doesn't matter because their pensions are giant and they'll just learn to live off of 190,000 a year. You know what I mean? They'll slum it because that's not even including the.

[Big Al Clopine]

I know it's not including Social Security, but there's quite a bridge period there. And I think the spending is off.

[Listener/Caller]

Well, he's 58. Social Security is going to come in 10 years. Let's say they claim it at 68. He retires now, they got $600,000. Yep.

[Big Al Clopine]

Right.

[Listener/Caller]

I don't know. Take 10% out a year. I don't care. It doesn't matter. They could draw it down to zero. My point is that they'd still be okay because of the giant pension that he has.

[Big Al Clopine]

Yeah.

[Listener/Caller]

Got $102,000 pension if you equate that to liquid assets.

[Big Al Clopine]

Yeah, no, I.

[Listener/Caller]

Several million dollars.

[Big Al Clopine]

I know, but he wants to spend 200, and then that's going to be inflated, too. I don't think the math works.

[Listener/Caller]

Got it.

[Big Al Clopine]

Well, yeah, and I know there's Social Security. I get that. Here's what I think. I think he can spend $145,000 in today's dollars, taking the $164,000 without Social Security. So this is conservative. I agree. And then you present value that back to today's dollars. I think it's about 140. Call it $150,000. I'll be generous. So 200's not the right number in today's dollars. $150,000 might.

[Listener/Caller]

So I think he already knows he's spending $200,000. It's like, well, our annual spend today is $90,000, but we have a goal of $200,000 in retirement.

[Big Al Clopine]

Yeah, well, I think he's got it backwards. I think his real spend is 200, and he wants to spend 90 anyway.

[Joe Anderson]

So what should their Social Security strategy be? Well, he's asking about the break even.

[Listener/Caller]

He did the math wrong, so he's looking at a break even. So he's saying. All right, if I take Social Security at 62, early draw is 77, and the Delta end payment is $1,400. So I don't know what he's saying is the Delta in payment $1,400 from age 62 to age 70?

[Big Al Clopine]

Well, he's saying that his full retirement age, Social Security is $43,000 up in the end of the first paragraph.

[Listener/Caller]

Okay.

[Big Al Clopine]

And hers is $20,000.

[Listener/Caller]

Right, but he's talking about, like, the Break even in this $14 million.

[Big Al Clopine]

I know that makes no sense.

[Listener/Caller]

It doesn't make.

[Big Al Clopine]

That's just a delta. We don't even know what you're. We need to know what the total payment is versus what it would be, then we can. But, yeah, I would.

[Listener/Caller]

But he's saying his break even's age 77.

[Big Al Clopine]

Yeah.

[Listener/Caller]

So he has to live in. But I've never seen a break even at 77 before.

[Big Al Clopine]

Yeah, me neither. And I. And I don't really care about that. I think. I think he defers it as long as he can.

[Listener/Caller]

He wants to take it at 62.

[Big Al Clopine]

I know.

[Listener/Caller]

I think because he spends everything that comes in.

[Big Al Clopine]

I, I think she should take it at 62 because it's a smaller benefit. He goes longer to get a bigger benefit for the family. If he passes, then she gets that same benefit. So that's what I would do or want to do anyway.

[Listener/Caller]

Yeah.

[Big Al Clopine]

Now if they can't afford it, they can't afford it. They do it. Right.

[Listener/Caller]

But, yeah, you know, they're very fortunate to have these really large pensions.

[Big Al Clopine]

They are. And Social Security looks good, too.

[Listener/Caller]

So this is a very common scenario that we see that people that have large pensions don't necessarily have large 401k balances.

[Big Al Clopine]

Right.

[Listener/Caller]

Because they know they're going to have a large pension. Pension. So it's like, well, why should I save into the 401k when I already have the fixed income? Let's enjoy life now.

[Big Al Clopine]

Yeah, yeah. And I. And I get it.

[Listener/Caller]

Yeah.

[Big Al Clopine]

But then you get used to that lifestyle.

[Listener/Caller]

Exactly.

[Big Al Clopine]

It's hard. It's hard to cut it in half. Has been our experience.

[Listener/Caller]

Yeah. But you're in great shape. Dirk.

[Big Al Clopine]

Dirk.

[Listener/Caller]

Dirk Diggler.

[Big Al Clopine]

Dirk Diggler, yeah. What was Roller Girl's name?

[Listener/Caller]

Roller Girl.

[Big Al Clopine]

That was the only name she ever had. A sign to her. I don't.

[Listener/Caller]

Yeah, I don't think.

[Big Al Clopine]

I think you're right.

[Listener/Caller]

I don't know. I don't know if she actually.

[Joe Anderson]

Her name was Brandy. That was the name of the character in the. In the film.

[Big Al Clopine]

Wasn't Burt Reynolds was in that? Right.

[Listener/Caller]

Yeah, he was.

[Big Al Clopine]

Yeah.

[Listener/Caller]

Bert.

[Big Al Clopine]

Yes. One of his classics. I'm sure that was a comeback. It was. You're right.

[Listener/Caller]

Put him back on the map.

[Big Al Clopine]

Yeah, yeah, yeah.

[Listener/Caller]

You ever watch Smokey and the Bandit? Oh, yeah, That's a good one.

[Big Al Clopine]

All of them. Yep.

[Listener/Caller]

What's that other race car movie he was in, I think with the chicken

[Joe Anderson]

was the Cannonball Run.

[Listener/Caller]

Can't. No, no, no. I love not Cannonball Run. It was like he was a NASCAR driver.

[Big Al Clopine]

I'm drawing a blank on that one. I like Cannonball Run too. That was a good one.

[Listener/Caller]

It was a chicken.

[Joe Anderson]

Chicken Stroker Ace.

[Listener/Caller]

Yeah, there it is. Stroker Ace. What a great movie that is. That's a, that's a rewatchable 1983 Stroker Ace. I'm gonna watch that this weekend. Burt Reynolds was not in Cannonball Run, was he? Oh, yeah, him and Dom DeLuise.

[Big Al Clopine]

Yeah, Ballyfield, I think.

[Listener/Caller]

No, that's not Run. That's Smokey and the Bandit.

[Big Al Clopine]

Wasn't she in Cannonball Run too?

[Listener/Caller]

Well, Andy, let's see Cannonball Run also, or the Cannonball Run 2.

[Joe Anderson]

Okay, Cannonball Run was Burt Reynolds, Dom DeLuise, Roger Moore, Farrah Fawcett, Jackie Chan, Sammy Davis Jr.

[Big Al Clopine]

Fan.

[Listener/Caller]

He was in Maserati.

[Big Al Clopine]

That's right.

[Joe Anderson]

Next week on ynyw, Lloyd and Diane and John are planning for their kids. How can Lloyd and Diane retirement early, spend a lot and still leave an inheritance? Will John and his wife help their autistic daughters more if they sell the house and move to a lower cost estate now? Or wait and let the daughters inherit the house and sell it with the help of trusted advisors after they're gone? The fellow spitball on those questions and more in episode 575. Follow us in your favorite podcast app or subscribe and turn on notifications on YouTube so you don't miss a thing. If you're making decisions that impact your thoughts 30 or 40 year retirement, you can't afford to screw it up. A spitball from Joe and Big Al is great, but it's not a comprehensive review of your entire financial life. Big Al may run some quick numbers, but he hasn't seen your tax return. The fellows don't know your whole situation. Joe is literally reading your question for the first time. Do not rely entirely on a spitball for your long term financial well being. Instead, schedule a financial assessment with one of the experienced professionals on Joe and Big Al's team at Pure Financial Advisors. Just like a spitball, it's free. Unlike a spitball, a free assessment is detailed, personalized and built around your specific retirement needs and goals. Find out how you can increase your tax free retirement income, manage volatile markets while drawing down your portfolio and avoid wasting any of the nest egg you've spent your entire career building. You can meet in person at one of Pure's offices in San Diego, Woodland Hills, Irvine, Brea, Davis, Seattle, Phoenix, Denver, Salt Lake City, Chicago or Nashville, or meet with the Pure team online via Zoom from anywhere. Either way, don't skip it. Make sure your retirement plan aligns with your retirement reality. Call 888-994-6257 to schedule your free financial assessment now or click or tap the free assessment link in the episode. Description Pure Financial Advisors is a registered investment advisor. This show does not intend to provide personalized investment advice through this podcast and does not represent that the securities or services discussed are suitable for any investor. As rules and regulations change, podcast content may become outdated. Investors are advised not to rely on any information contained in the podcast in the process of making a full and informed investment decision.