Why Retirees Don't Know The Real Tax Problem #financialplanning #moneytalk

Added: 2026-05-17

[00:00:00]Let's take this $100 bill for example.

[00:00:01][music] And let's just say that this is your monthly withdrawal. Okay? And this is coming from your IRA, your [music] 401k, your 403b.

[00:00:09]>> Haven't paid taxes on it yet.

[00:00:11]>> This is money that you got a tax deduction, [music] right? So it came off your taxes.

[00:00:17]>> Okay?

[00:00:18]>> Went into your retirement account >> that's growing, growing, growing, >> tax deferred. [music] >> And now when the money comes out, now we've got a tax problem. And this is going to count as ordinary [music] income and it's going to be taxed at whatever your tax bracket is.

[00:00:32]>> Okay.

[00:00:33]>> So, let's just take a look at how far a $100 bill really [music] goes. Well, the first thing is you mentioned it, inflation, right? So, [music] you take a little piece off for inflation, right?

[00:00:44]And then, of course, that money is coming out. So, the [music] next thing we need to do is we need to pay taxes, which is a larger sum that needs to go [music] to the IRS. Mhm.

[00:00:55]>> Then you need to pay your bills.

[00:00:59]Okay.

[00:01:00]Then some of you may have [music] children [laughter] that say, "Mom, dad, I need a little extra money." [laughter] Right? That little extra money. Here it is. And then this is what you have left over [music] to spend and live your retirement.