Calamita Wealth Management

Tax-deferred accounts can be a double-edged sword. They offer benefits now but can create problems later. Understanding how they work is crucial for retirees. Tax-deferred accounts include traditional 401(k)s, IRAs, and 403(b)s. → When you contribute, you lower your taxable income. → Your money grows tax-free, but all withdrawals are taxed as ordinary income. → You didn't avoid taxes; you just delayed them. → This creates a ticking tax bomb with Required Minimum Distributions (RMDs). RMDs are mandatory withdrawals the IRS forces retirees to take. → Most future retirees will start at age 75. → You must take these withdrawals whether you need the money or not. → After years of growth, these withdrawals can be large and all taxable. → This can push you into a higher tax bracket. → It can also trigger Social Security taxation and raise Medicare premiums. Here’s an example: Mary saved diligently in her 401(k) for 35 years,? contributing 10% of her salary with a 5% employer match. ? By age 65, she had $1.5 million. ? Even with $45,000 annual withdrawals, her account grew to $2 million by age 73. ? At 75, her first RMD is about $75,000. ? This is far more than she needs. ? By age 80, if her investments grow at 7%, her account could reach $2.5 million. ? That would force her to withdraw about $120,000 that year. ? By age 85, she may have to withdraw over $150,000 annually. ? All of this is taxed as ordinary income, possibly pushing her into the 32% tax bracket. Mary was careful with her savings. Yet, her success created a tax problem she never expected. Remember. Tax planning for retirement isn’t one-size-fits-all.?? ? It’s personal.?? ? It’s strategic.?? ? And it’s worth getting right. PS. Want to learn more about retirement planning traps?? ? See comments for link to my FREE 7-day retirement course (includes 4 calculators)?

Here's how to build your real retirement number. Let’s break it down using a simple example. Imagine a typical professional with these details: - Desired retirement age: 67 - Current salary: $250,000 - Expected monthly expenses in retirement: $10,000 Now, let’s look at retirement income sources. Social Security: About $4,000/month at age 67. ??- Fully available at retirement age. ??- Partially taxable income. ??- Provides a foundational layer of retirement income. This gives us a total guaranteed income of about $4,000/month. Next, we need to find out how much more income is needed. Monthly income needed: $10,000 - $4,000 = $6,000. Now, let's calculate the portfolio needed to cover this gap. - Annual income required: $72,000 ($6,000 x 12). - Required portfolio at a 3% withdrawal rate:? - About $2,400,000 ($72,000 / 0.03). This number may seem large, but it is achievable with smart planning. ?? Repost this to help a friend. PS Want to learn more about retiring successfully??? ? See comments for link to my FREE 7-day retirement course (includes 4 calculators)?

One of the biggest risks retirees face is outliving their money. Longevity is one of the reason this happens. Here's how to prevent it: 1. Understand the Risk of Outliving Your Money → Retirees face a big risk. Many people live longer than expected. → This means your savings must last longer. 2. Know the Average Lifespan → A 65-year-old man can live to 84. → A 65-year-old woman can live to 87. → Both have a good chance of living much longer. 3. Plan for a Long Retirement → You may need your money to last 25 to 30 years or more. → This requires smart withdrawal strategies. 4. Rethink the 4% Rule → The old 4% rule is no longer safe. → With lower bond yields and high market prices, a safer target is 2.5% to 3%. → This helps your money last. 5. Prepare for Uncertain Markets → Market conditions can change. → A lower withdrawal rate will protect your savings during downturns. 6. Use a Strategy for Success → Plan your withdrawals carefully. → Adjust your spending based on your needs and market conditions. → This helps keep your money safe and growing. 7. Stay Informed and Flexible → Keep learning about retirement planning. → Be ready to change your strategy as needed. → This will help you stay on track. ?? Repost this to help a friend. PS Want to learn more about retiring successfully? ? See comments for link to my FREE 7-day retirement course (includes 4 calculators)

Retirement spending is a big myth. Many think costs will drop. The truth? Most retirees spend the same or more in their first decade. David Blanchett coined this as the Retirement Spending Curve (Smile): → Early retirement (60s–early 70s): High spending. Travel, hobbies, home projects, entertainment. → Mid retirement (late 70s–80s): Spending slows. Less travel, fewer big purchases. → Late retirement (80s–90s+): Costs rise. Healthcare and assisted living become major expenses. Most online calculators miss this reality. They give misleading numbers. Planning for retirement needs a clear view of spending. Understand the Retirement Spending Curve (Smile). Prepare for early years with higher costs. Adjust your budget for mid and late retirement. Stay informed. Avoid common pitfalls. Secure your financial future. Don't let myths guide your retirement plans. ?? Repost this to help your network. PS. Want to learn more common retirement pitfalls? 1. Type "retirement blueprint" in the comments.? 2. I’ll send you our FREE, 7-day retirement course.?

Am I on track for retirement? Planning for retirement isn't just about numbers. It’s about understanding your needs. 1. Know Your Savings Milestones ? By age 35, aim to save 1x your income.? ? By age 45, target 3x your income.? ? By age 55, strive for 7x your income.? ? By age 65, aim for 11x your income. 2. Understand Your Income Level ? Higher earners need to save more.? ? Social Security covers less for them. 3. Factor in Your Lifestyle ? Travel and healthcare costs can add up.? ? A higher cost of living means you need more savings. 4. Consider Your Retirement Age ? Retiring early requires more savings.? ? You need to cover more years without income. 5. Look at Your Investment Returns ? Strong returns can lessen your savings burden.? ? Conservative investments often need more savings. 6. Identify Other Income Sources ? Pensions and rental income can help.? ? Part-time work can reduce your savings need. Remember. Retirement planning isn’t one-size-fits-all. ? ? It’s personal. ? ? It’s strategic. ? ? And it’s worth getting right. PS. Want to learn more about securing your retirement?? 1. Type "retirement blueprint" in the comments.?? 2. I’ll send you our free, 7-day retirement course (including 4 calculators). ?

Early retirement is a dream for many. Yet, most people focus only on money. True freedom comes from more than just savings. Lifestyle changes play a key role in this journey. You need to rethink how you live. Cutting unnecessary expenses is a start. Consider downsizing your home. Living simply can lead to greater happiness. Investing wisely is also crucial. Use pay raises for increasing your retirement savings. Don't go for home runs. Hit singles and doubles.? Don’t forget about community support. Having a strong network is vital for a fulfilling retirement. Connect with like-minded people. Join clubs or groups that share your interests. Here are steps to achieve early retirement: 1. Create a clear vision of your ideal life. 2. Develop a budget that aligns with your goals. 3. Explore diverse investment options. 4. Build a supportive community around you. 5. Embrace a lifestyle that prioritizes happiness. Early retirement is possible with the right strategies. Think beyond money to create a rich life. ??? Repost this to help a friend. PS. Want to know if you're on track for retirement?? 1. Type "retirement blueprint" in the comments.?? 2. I’ll send you our free, 7-day retirement course (including 4 calculators).?

Missed my FREE 7-day email courses? Good news—they’re now available in my Featured section. These concepts and strategies have already helped over 100 of my clients optimize their retirement strategy, avoid costly mistakes, and make smarter financial decisions. → The Secure Retirement Blueprint – For anyone in their 50s looking to retire with confidence. → The Wells Fargo Employee’s Retirement Blueprint – A specialized guide to maximizing company benefits, 401(k), and stock plans. If you didn’t grab them before, now’s your chance. No DMs needed—just click the link in my Featured section to get started. Check them out and let me know what you think!

How to stay in the 12% tax bracket when you retire. Here's what most people don't realize about maximizing retirement income... It's not just about how much you've saved, but also about how you withdraw it in a tax-efficient manner. Bill and Barb (a hypothetical couple age 55) have done a fantastic job saving $6 million for retirement. Having a good mix of tax-deferred accounts (IRAs and 401(k)s) and tax-free Roth IRAs. Now, as they start withdrawing $200k/year, they need to be strategic to minimize taxes. Here's their approach: ? Take advantage of the Rule of 55 to avoid the 10% early withdrawal penalty on 401(k)s and Roth IRA contributions. ? Withdraw $126k from 401(k)s, staying within the 12% tax bracket (after standard deduction). ? Withdraw the remaining $74k from Roth IRAs tax-free. The result? They only pay ~$10k in taxes, about 5% of their spending. The key takeaways: 1. Strategically use tax-free Roth IRA withdrawals. 2. Understand the Rule of 55 and early withdrawal penalties. 3. Strategically withdraw from different accounts to minimize your tax bracket. 4. Diversify your retirement savings across tax-deferred and tax-free accounts. Being tax-smart like Bill and Barb, you can stretch your retirement savings further and enjoy more of your hard-earned money. It's not just about the size of your nest egg, but also how you crack it open. ?? Repost this to help your network. PS. Want to know more about taxes and retirement? 1. Type "retirement blueprint" in the comments. 2. I’ll send you our free, 7-day retirement course (including 4 calculators).?

Most Wells Fargo employees don’t realize they’re making retirement mistakes—until it’s too late.?That’s why I made a FREE 7-day email course. What you’ll learn: → Calculate exactly how much you need to retire → Avoid hidden tax traps that drain your savings → Optimize withdrawals so your money lasts → Maximize Social Security benefits → Build a stress-free, tax-efficient retirement plan → Create tax-efficient withdrawal strategies → Plan for healthcare & Social Security in retirement → Navigate pension options and lump-sum payouts to make the right choice for your future → Maximize your company benefits to retire with confidence All in 7 days, straight to your inbox—100% free. What’s inside? ? 7 expert-crafted lessons ? Simple, actionable steps ? Proven strategies to avoid retirement mistakes ? 4 powerful calculators to help you: ? Find your Retirement Number ? Optimize your company benefits ? Plan tax-efficient withdrawals ? Estimate healthcare costs in retirement After helping so many pre-retirees navigate their biggest challenges, I knew I had to share what I’ve learned to help others avoid the same pitfalls. Interested in the course? → Like this post → Comment “Wells Fargo” I’ll send it over via DM ASAP. PS: If we’re not connected yet, send me a request so I can DM you.

Most people don’t realize they’re making retirement mistakes—until it’s too late. That’s why I made a FREE 7-day email course. Here’s what you’ll learn: → Calculate your retirement number → Avoid hidden tax traps that drain your savings → Optimize withdrawals so your money lasts → Maximize Social Security benefits → Build a stress-free, tax-efficient retirement plan All in 7 days, straight to your inbox—100% free. What’s inside? ? 7 expert-crafted lessons ? Simple, actionable steps ? Proven strategies to avoid retirement mistakes ? 4 powerful calculators to help you: ? Find your Retirement Number ? Optimize Social Security timing ? Plan tax-efficient withdrawals ? Estimate healthcare costs in retirement After helping so many pre-retirees navigate their biggest challenges, I knew I had to share what I’ve learned to help others avoid the same pitfalls Interested in the course? → Like this post → Comment “Retire” I’ll send it over via DM ASAP. PS: If we’re not connected yet, send me a request so I can DM you.