In this Episode of the Secure Your Retirement Podcast, Radon and Murs discuss what actually happens once a household crosses the $1 million mark in their 401k, and why hitting that number raises new questions instead of settling old ones. They walk through why the balance on your statement isn't the number you actually get to spend, how required minimum distributions can sneak up on even careful savers, and why the investment strategy that built your nest egg isn't the one that should carry you through retirement.

Listen in to learn about the tax traps that catch people off guard when withdrawing from a 401k, why Roth conversions deserve a serious look before required distributions kick in, how the three-bucket strategy protects your income from a bad market at exactly the wrong time, and what changes financially (and it's not what you'd expect) when one spouse passes away.

In this episode, find out:

• Why a $1 million 401k balance is really closer to $650,000 to $700,000 after taxes, and how that mistake trips people up when withdrawing for big expenses
• How required minimum distributions work, and why waiting too long to touch a 401k can create a bigger tax problem later
• Why a Roth conversion strategy, done while both spouses are alive and filing jointly, can meaningfully reduce lifetime taxes
• What sequence of returns risk is, and how the three-bucket strategy (cash, safety and income, growth) protects retirement income from market downturns
• Why moving from a joint tax return to a single filer after a spouse passes away often raises your tax rate, even if your income barely changes

Tweetable Quotes:

"While you see the million on paper, really only about 650 to 700,000 of that's actually yours." — Murs Tariq

"How I take money out of a 401k has some things I've got to think through. So, I've got to think through my taxation. I've got to think through potential problems with IRMAA." — Radon Stancil

Resources:

If you are in or nearing retirement and you want to gain clarity on what questions you should be asking, learn what the biggest retirement myths are, and identify what you can do to achieve peace of mind for your retirement, get started today by requesting our complimentary video course, Four Steps to Secure Your Retirement!

To access the course, simply visit POMWealth.net/podcast.