Root Talks: How Do Smart Retirees Handle Big One-Time Expenses?

Ready For Retirement

James Conole, CFP®

Investment Planning, Bonds, Education, Stocks, Cash, Business, Dividend Investing, Retirement Planning, Retirement, Investing, Tax Planning

5 • 706 Ratings

🗓️ 6 March 2025

⏱️ 19 minutes

🔗️ Recording | iTunes | RSS

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Summary

Root Collective member Gary asks how to fund a $40K home remodel before retiring—should he use a taxable brokerage account, tax-deferred 401(k), Roth IRA, or cash? Ari and I break down how to handle big one-off expenses into a three-part framework: Portfolio Sustainability – Can your investments handle both recurring and one-time expenses?Investment Allocation – Ensure your assets are positioned to avoid selling at a loss.Tax Optimization – Withdraw strategically to minimize lifetime taxes.T...

Transcript

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0:00.0	This is another episode of Ready for Retirement.
0:04.9	I'm your host, James Canol, and I'm here to teach you how to get the most of the life with your money.
0:09.2	And now, on the episode.
0:12.6	Hey, James, so there's a phrase we talk about called goalpost planning.
0:16.4	That's when people are like, I'm going to retire once I have two million, maybe two and a half, three million, one more bonus, and they're just pushing back the goalposts to when they retire.
0:25.6	Now, that's a nice phrase that we use to illustrate the concept, but there are people that will do
0:30.1	this, and it can be because of one expense.
0:32.5	Hey, should I push off retiring because I still need to buy a new car because I've had the same
0:36.3	one for 20 years. And what if I do that at the same time of a home remodel and which account do I pull from?
0:41.4	Is it cash? Is it a Roth IRA? Is it a traditional IRA?
0:45.4	What we're going to be going over today is a comment that was left in the Root Collective, which is our community.
0:51.3	So if you have not seen the previous episodes where we go into detail on that root collective,
0:56.0	certainly check that out.
0:57.1	It is free and in the description of this episode,
0:59.9	whether you're watching on YouTube or listening on our various podcasts.
1:03.3	I'm going to read this comment,
1:05.7	and then we're going to get to address it.
1:07.5	So you ready, James?
1:09.3	I'm ready.
1:10.2	Cool.
1:10.7	This comes from Gary R, and he posts and says
1:13.9	his subject line is one-time expense soon to be retired. Howdy, y'all? I'm in my final recreational
	...

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