Marketplace Money assertion

[Focus]

Does this make sense to anyone?

Well, $700,000 might sound like a lot of money to a lot of families, but once you break that down, it would produce, with Social Security, about $67,000 a year. However, most of their retirement assets are in taxable accounts. So any money they pull out they're going to be paying ordinary income taxes. So that $67,000 then becomes, according to our financial planner, about $50,000.

It's an excerpt from this Marketplace Money report, which is from last week's episode, where they rather randomly picked out folks to represent an entire decade of life and looked at their financial status.

 

[73ss454]

I think it's a misprint. They wanted to say that the money was in a tax advantaged account.

 

[DblDoc]

No. If the money is in taxable accounts it is NOT taxed on withdrawal at ordinary rates. You pay taxes on dividends (at ordinary rates) and capital gains - but only if you sell and have no tax losses to offset. Your return of (your already taxed) capital is tax free.

DD

Or what he said ^

 

[nun]

I heard this and did a double take, but then realized that they meant that withdrawals from the accounts are taxable as income. It needs some clarification I agree.