Retire With Ryan: Recent Episodes

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When you're moving into retirement, you're most likely to be starting to ask yourself which investment accounts you should start drawing from first. There's really no universal answer—retirement withdrawal strategies are deeply personal and situation-dependent. But understanding the implications of each account type and the factors that influence withdrawal order can have a massive impact on your tax burden and the longevity of your assets.

You will want to hear this episode if you are interested in... * [00:00] Retirement withdrawal strategy options * [06:37] Roth IRA and taxable accounts * [07:47] Tax implications for investment gains * [14:12] Roth IRA conversion strategy * [16:17] Real-life retirement income strategies * [19:36] Importance of a withdrawal strategy

Understanding the Account Types and Their Tax Impact The foundation of your strategic withdrawal plan begins with understanding how each investment account is taxed:

1. Pre-tax Retirement Accounts

These include traditional IRAs and 401(k)s, SEP IRAs, and similar plans. Contributions offer a tax deduction, and growth is tax-deferred, but withdrawals are taxed as ordinary income. These accounts are eventually subject to required minimum distributions (RMDs), currently beginning at age 73 or 75, depending on your birth year. Withdrawals here not only increase your reported income but can also impact Medicare premiums and Social Security taxation.

1. Roth Accounts

Roth IRAs and Roth 401(k)s are funded with after-tax contributions. Qualified withdrawals are tax-free and—if the original contributor owns the account, not subject to RMDs in your lifetime. This makes Roth accounts especially valuable for flexible, later-stage withdrawals.

1. Taxable Brokerage Accounts

These are standard investment accounts not designated for retirement. Withdrawals of principal do not create taxable events; only realized capital gains, dividends, and interest are reported for taxes. One major benefit: capital gains rates can be lower than ordinary income rates and may even reach 0% for some filers. Withdrawals can be easy to manage for opportunistic or requirement-driven needs.

Questions to Consider with Personalized Withdrawal Planning Several personal factors play into the best withdrawal order:

• Are you retiring before 65 and in need of Affordable Care Act (ACA) health insurance?
• Do you want to minimize future RMDs or leave assets to heirs?
• When will you begin Social Security or receive pension income?
• What is your preferred tax bracket and desired lifestyle flexibility?

These questions should be revisited regularly, as changes in tax law, health, or legacy wishes can affect your strategy.

Real-World Withdrawal Scenarios Coordinating Withdrawals for ACA Subsidies Jonathan retires at 57, pre-Medicare, and must carefully manage his modified adjusted gross income (MAGI) to retain ACA health insurance subsidies. My suggested plan is to combine modest 401(k) withdrawals, reportable dividends, and money market interest to stay below the MAGI threshold. Additional cash needs are met from accounts, like the money market, which don't affect taxable income. This keeps his subsidy and aligns with income limits, demonstrating the need for multi-account coordination.

Reducing Future RMDs and Leaving a Legacy Walter and Amy, 62, want to avoid burdening their heirs with high-tax inheritance on pre-tax accounts. Instead of focusing solely on paying the least tax today, they prioritize Roth conversions while Social Security is delayed, taking advantage of lower brackets now to transfer wealth into tax-free vehicles. Over several years, they could convert hundreds of thousands into Roth IRAs, significantly reducing future RMDs while maximizing wealth transfer.

Minimizing Tax on Social Security Christian, 68, blends Social Security with distributions from non-taxable sources like his money market to avoid triggering federal taxes on his Social Security. Careful planning allows him to either keep Social Security tax-free or, with limited IRA withdrawals, incur only minimal tax.

The Importance of Ongoing Review and Professional Advice Your withdrawal strategy is not a "set-and-forget" plan. Tax laws, account balances, and individual goals will change over time. I suggest annual reviews and, ideally, working with a specialized financial advisor to continually adjust the plan for optimal tax efficiency and income sustainability. A thoughtful approach, tailored to your personal circumstances and updated regularly, will help you balance tax efficiency, income needs, and legacy goals.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

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On the show this week, I answer a listener question about restricted stock units, or RSUs—what they are, how they're taxed, and the best strategies for managing them as they vest. I'll take an in-depth look at different types of vesting schedules, tax implications, and the practical choices you have when your RSUs become available. This episode is all about giving you clear guidance to help you make informed decisions about RSUs and making sure your retirement strategy is on the right financial track.

You will want to hear this episode if you are interested in... * 00:00 Explanation of Restricted Stock Units (RSUs) * 04:19 How stock vesting works * 05:14 RSUs are treated as ordinary income when they vest * 06:52 Understanding RSU Tax Withholding * 11:36 Investing in Index Funds * 12:58 Matching investment decisions to risk tolerance and goals

Restricted Stock Units (RSUs) RSUs represent a promise from your employer to deliver company stock or a cash equivalent in the future once certain conditions, called vesting requirements, are met. These conditions are designed to incentivize and retain employees, ensuring that you benefit as the company grows and performs well.

RSUs usually vest in one of three ways:

• Time-Based Vesting: The most common approach, where shares vest gradually over a specified period. For instance, a 4-year vesting schedule for 1,000 RSUs would typically see 250 shares vest each year. At ESPN and Disney, a 3-year vesting schedule is standard, with shares vesting twice annually—in the summer and fall.

• Performance-Based Vesting: Shares vest only if certain targets are met, such as revenue goals or profit margins. Some grants only vest if multiple targets are reached.

• Liquidity Event-Based Vesting: Common in private companies, where shares vest after events like an IPO or a company merger. If you leave your employer before shares vest, you lose any unvested RSUs—a strong incentive to stay.

How Are RSUs Taxed? When RSUs vest, the value of the vested shares is treated as ordinary income, just like your regular salary. This income is reported on your W-2 and is subject to federal, state, and payroll (FICA) taxes. Social Security taxes apply up to a certain annual earnings cap ($184,500 in 2026), but Medicare taxes continue regardless of income.

To cover your tax liability, employers usually sell enough shares on your behalf (a "sell-to-cover" transaction). For example, if 100 shares vest and 20 need to be sold to cover taxes, you'd end up with 80 shares. Employers typically withhold taxes at a 22% rate; if your annual compensation exceeds $1 million, the withholding rises to 37%.

Many employees find themselves under-withheld, especially if they move into higher tax brackets, and may need to adjust their W-4 or set aside additional funds to avoid owing at tax time.

What Are Your Options When RSUs Vest? Once RSUs vest, you have several paths forward:

1. Hold the Shares

Some employees hold their RSU shares, believing in the long-term prospects of their company. This approach can create significant wealth if the stock outperforms, but it also concentrates risk—especially if your job and sizable net worth are tied to the same company.

1. Sell Immediately

Selling your shares right away locks in your gains, minimizes risk, and frees up cash to fund other goals, like buying a house or paying for college. Just be cautious about spending it all; ensure you're saving enough for long-term needs.

1. Sell and Reinvest

Sell your RSU shares and reinvest the proceeds in diversified assets, such as index funds (e.g., S&P 500 or total market funds), or bonds if you have a lower risk tolerance. This strategy provides broader market exposure and can reduce the risk inherent in holding too much of a single company's stock.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * State Street S&P 500 Index Fund (SPYM) * State Street Aggregate Bond Fund (SPAB)

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For many Americans, the idea of retiring before age 59 and a half often seems out of reach, particularly when the bulk of their savings sits in an employer-sponsored 401(k) or 403(b) plan. Traditionally, the tax code penalizes early withdrawals from these accounts. However, the Rule of 55 could open the door to a more flexible, penalty-free early retirement. On this episode, I'll share more about this IRS provision, who qualifies, how to use it wisely, and potential hazards to avoid.

You will want to hear this episode if you are interested in... * [00:00] Overview of the Rule of 55 and its relevance to retirement savers * [02:20] IRS provision allowing penalty-free withdrawals before age 59½ * [05:03] Withdrawing from employer 401k early * [07:19] Understanding the Rule of 55 * [10:06] Common scenarios where Rule of 55 is useful * [12:11] Does not apply if funds are rolled into an IRA

A Deep Dive Into the Rule of 55 The IRS usually limits penalty-free withdrawals from retirement plans until you are 59½. Withdrawals before then typically face a 10% early withdrawal penalty on top of regular income taxes. The Rule of 55 is an exception, allowing people who leave their jobs in or after the calendar year they turn 55 to access funds from their employer's plan without being penalized.

There are several conditions to qualify:

• You must have left (voluntarily or involuntarily) your employer on or after reaching age 55 within the same calendar year.
• The funds must remain in the retirement plan of your most recent employer; this rule does not apply to old 401(k)s or IRAs.

Who Qualifies for the Rule of 55? To benefit from the Rule of 55, you must separate from your employer (by retiring, being laid off, or quitting) in the year you turn 55 or later. Importantly, the provision only applies to the plan at your most recent employer. If you have funds in 401(k)s from previous jobs, they are not eligible—unless you move those funds into your current employer's plan before you separate. This rule does not apply to IRAs of any kind.

Strategic Considerations Before Using the Rule Accessing your retirement funds early can provide flexibility, but there may also be drawbacks. Consider the following aspects before making withdrawals:

1. Plan-Specific Rules

Not every employer allows post-separation distributions that leverage the Rule of 55. Check your plan document or HR department to confirm eligibility. Some plans may even restrict withdrawals to lump-sum distributions—a move that could trigger a significant tax event.

1. Tax Implications

The Rule of 55 lets you avoid the 10% early withdrawal penalty, but income taxes still apply to distributions from pre-tax 401(k)s. If you're withdrawing from a Roth 401(k), only qualified distributions escape taxation, earnings could still be taxed if the account isn't at least five years old or you haven't reached 59½.

1. Returning to Work

You can still take penalty-free withdrawals from your old plan and work elsewhere, you just can't return to the same employer and continue penalty-free distributions from that plan.

1. Preserving Your Nest Egg

Large or ill-timed withdrawals can erode your investments and disrupt your long-term retirement security. It's crucial to view withdrawals in the context of a potential 25- to 35-year retirement span.

Common Scenarios and Use Cases * Unexpected Job Loss: After an unexpected layoff at age 57, you can supplement your income using penalty-free 401(k) withdrawals until age 59½. * Bridging Pension Gaps: If your pension doesn't kick in until 60 but you retire at 56, the Rule of 55 can provide necessary cash flow for those interim years. * Semi-Retirement Transitions: Those shifting to part-time work or consulting may use partial withdrawals to cover living expenses while ramping up new income streams.

Using the Rule of 55 requires careful planning and a clear understanding of your plan's rules and your long-term income needs. Before making any moves, consult with a financial advisor to develop a sustainable retirement withdrawal strategy.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Topic no. 558, Additional tax on early distributions from retirement plans other than IRAs

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For many retirees, their home isn't just a place of comfort, it's one of the largest assets on their balance sheet. However, beyond the emotional value and the years of accumulated equity, there's an often-overlooked reality: selling your primary residence can bring an unexpected tax bill. If you're contemplating a sale or want to ensure you're planning wisely, understanding the IRS's primary residence capital gains exclusion is essential. On the show this week, I break down what this exclusion means, who qualifies, how to maximize its benefits, and the critical planning steps to avoid a nasty tax surprise.

You will want to hear this episode if you are interested in... * [00:00] Understanding capital gains exclusion * [03:52] Capital gains exclusion requirements * [07:40] Reducing taxes on home sale * [11:31] Calculating capital gains tax * [14:57] Impact of capital gains on IRMAA

The Primary Residence Capital Gains Exclusion Thanks to the IRS, many homeowners can exclude a substantial portion of the capital gains realized from the sale of their primary residence. Single tax filers can exclude up to $250,000 of gains while married couples filing jointly enjoy up to a $500,000 exclusion. In practical terms, this means if your gain from selling your home stays within these thresholds, you may owe no federal tax on that profit.

Who Qualifies for the Exclusion? Before assuming you'll benefit from this significant tax break, it's important to meet all IRS requirements:

1. The Ownership and Use Test:

You must have lived in the home as your primary residence for at least two of the five years preceding the sale. These years don't need to be consecutive, but they must total at least 24 months within the five-year window.

1. Exclusion Frequency:

You cannot have claimed the exclusion on another home sale within the past two years.

1. Acquisition History:

The property generally cannot have been acquired through a 1031 like-kind exchange in the previous five years.

Special Rule for Widows and Widowers:

If you've recently lost your spouse, you may still qualify for the full $500,000 exclusion if you sell within 24 months of your spouse's passing, don't remarry during this period, and have satisfied the other ownership and use requirements.

Why More Homeowners Now Face Capital Gains Taxes Home values have seen record appreciation over the last three decades, but the exclusion thresholds haven't changed since 1997. A homeowner who bought in their 20s or 30s might now find that decades of appreciation have pushed them well beyond the exclusion limits—and into taxable territory.

If your gains surpass the exclusion, any additional gains are taxed either as short-term (if you've owned the home for a year or less) or, more commonly for longtime owners, as long-term capital gains (taxed at 0%, 15%, or 20% depending on your income).

Maximize Your Savings: Track and Increase Your Cost Basis One of the most effective strategies to reduce your taxable gain is to properly track and boost your home's cost basis. Your cost basis starts with your original purchase price and is increased by certain acquisition costs (settlement fees, title insurance, legal fees, etc.). Most importantly, capital improvements—such as room additions, roof replacement, major kitchen or bath remodels, or HVAC system upgrades—can be added.

Routine maintenance and minor repairs generally don't increase your basis, so keeping thorough records of major projects and associated costs is crucial.

Medicare Premiums and Tax Strategy Selling your home and realizing a large capital gain may bump you into a higher Medicare premium bracket, known as IRMAA, which can affect your Part B and Part D premiums a couple of years after the sale. This makes it essential to coordinate a home sale with your overall income strategy and consult both a financial advisor and CPA before listing your home.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * National Association of REALTORS® * Avoid These 7 Scenarios to Keep Your Medicare Premiums Lower In Retirement #313 * 2026 Medicare Part B Premium Surprises, #282 * 7 Ways to Lower Your Income and Avoid the IRMAA Medicare Surcharge, #142

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On July 4, 2026, a groundbreaking opportunity opened for parents and guardians aiming to give their children a head start on their financial journey: Trump Accounts. Created as part of the OBBA Tax Act ("One Big Beautiful Bill" Tax Act) of 2025, these tax-advantaged investment vehicles provide a unique way to grow wealth for minors. In this episode, I break down what Trump Accounts are, who's eligible for generous bonuses, how to get started, and how they compare to other common savings options like 529 plans.

You will want to hear this episode if you are interested in... * [00:00] Understanding Trump accounts for children * [04:22] What are the baby bonus qualifications? * [09:04] Opening a Trump investment account * [11:37] Comparing Trump accounts to 529 plans * [16:07] Converting IRA for tax-free growth * [17:15] Benefits of Trump accounts

Unlocking the Potential of Trump Accounts Trump Accounts are designed for children under 18 who have a valid Social Security number. Funded with after-tax dollars, these accounts work similarly to retirement accounts, with investments inside the account compounding tax-deferred. That means any dividends, interest, or capital gains grow without being taxed until withdrawal—effectively turbocharging your child's investment returns.

Once the child turns 18, the account automatically converts to an IRA in their name. Withdrawals are then subject to traditional IRA distribution rules: generally, penalty-free access begins at 59½, although exceptions exist, such as those for first-time homebuyers or qualified education expenses.

Who's Eligible for Bonuses? One of the biggest draws of Trump Accounts is the potential for substantial bonus contributions.

• $1,000 Federal Bonus: Children born between January 1, 2025, and December 31, 2028, automatically qualify for a $1,000 government deposit. This eligibility is irrespective of parental or child income, provided the child is a US citizen with a valid Social Security number.

• $250 Dell Foundation Grant: For children born before 2025 who are under 10 years old, the Michael and Susan Dell Foundation offers a $250 grant. Eligibility extends to those living in zip codes where the median household income falls below $150,000.

Trump Accounts vs. 529 College Savings Plans Given the array of college savings vehicles available, how do Trump Accounts stack up to the well-established 529 plan? Here's a quick comparison:

529 Plans: Designed specifically for education expenses, 529 plans offer tax-deferred growth and tax-free withdrawals for qualified expenses. They also allow conversion of up to $35,000 to a Roth IRA under certain conditions if the funds are unused for education costs.

Trump Accounts: More flexible since, after age 18, the funds move to an IRA in the beneficiary's name. While distributions for education from a Trump Account IRA are taxed as ordinary income (with penalties waived for qualifying expenses), the account's chief power is in supercharging long-term retirement savings for the child.

Should You Open a Trump Account? If your child or grandchild qualifies for the $1,000 or $250 bonuses, opening an account is almost a no-brainer. For others, the decision will come down to your savings goals. Trump Accounts offer unmatched momentum for retirement savings, while 529s are still preferred for pure college saving. The earlier you start, the greater the rewards of compounding.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Michael & Susan Dell Foundation * Trump Accounts App * About Form 4547, Trump Account Election(s)

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Medicare brings peace of mind to millions of retirees, but for those with higher incomes, there's an added layer of complexity called IRMAA—the Income Related Monthly Adjustment Amount. If your modified adjusted gross income (MAGI) crosses certain thresholds, you may end up paying substantially more for your Medicare Part B and Part D coverage. In this article, we break down how IRMAA works, outline common scenarios that may unexpectedly raise your premiums, and offer actionable strategies to help you avoid unnecessary costs during your retirement years.

You will want to hear this episode if you are interested in... * [02:14] How IRMAA works * [04:09] IRMAA income brackets and premium increases * [05:43] General strategies and limitations for avoiding IRMAA * [09:49] Managing Capital Gains and Medicare costs * [10:41] Understanding the possibility of unexpected large gains pushing income higher * [12:37] Impact of spouse passing on taxes * [14:54] Avoiding IRMAA surcharge

What Is IRMAA, and How Does It Work? IRMAA adds a surcharge to your standard Medicare Part B and Part D premiums if your income exceeds specific limits. The calculation uses your Modified Adjusted Gross Income (MAGI) from your federal tax return for the prior two years. For example, your 2026 Medicare premium is determined by your 2024 tax return figures. This "two-year lag" means financial decisions made today could impact your healthcare costs down the line.

In 2024, the standard Part B premium is $202.90 per month. However, single filers reporting over $109,000 or married couples filing jointly above $218,000 pay $284 each per month, per person. Surpassing $137,000 (single) or $274,000 (joint) pushes your premium to $405.90—more than double the baseline. Part D premiums are also subject to surcharges, ranging from $14.50 to $91 per month at the highest income levels.

Seven Scenarios That Can Trigger IRMAA—and How to Prepare While some situations are unpreventable, being aware of these common scenarios can help you make informed choices and potentially minimize your IRMAA exposure.

1. Municipal Bond Income: Not as Tax-Free as You Think Many investors favor municipal bonds for their federal tax-exempt status. Unfortunately, while this income is absent from your regular AGI, it is added back into your MAGI when calculating IRMAA. If you're relying heavily on munis in retirement, this could unexpectedly inflate your Medicare premiums. Consider alternative investments or relocating those assets into accounts or vehicles where this income is shielded, like certain annuities, after consulting with a qualified financial advisor.

2. Capital Gains on Your Home Sale When selling your primary residence, you can exclude up to $250,000 of gain if single or $500,000 if married, provided you meet the two-out-of-five-years residency rule. Gains above these thresholds are taxable and count toward your MAGI. Good record-keeping for home improvements can help increase your cost basis and reduce the taxable gain, but there aren't many strategies to avoid this spike if a large gain is unavoidable.

3. Profits from Investment Property Sales Selling an investment property can generate significant capital gains. But unique to investment real estate, the IRS allows you to defer these gains through a 1031 exchange—selling one investment property and reinvesting the proceeds into another. This move postpones the tax hit and the associated IRMAA impact, possibly indefinitely if you use the stepped-up basis at death.

4. Surprise Mutual Fund Capital Gains If you own mutual funds outside retirement accounts, unexpected capital gains distributions from within the fund (for example, after large stock sales like Apple) could spike your MAGI. To mitigate this, consider shifting from mutual funds to individual stocks, bonds, or exchange-traded funds (ETFs), which typically generate fewer surprise capital gains.

5. Roth Conversions are Great for Taxes, But Be Careful While Roth conversions can be powerful tax strategies, converting a sizable sum from a pretax IRA to a Roth IRA counts as income for IRMAA purposes. Carefully plan the size and timing of conversions to avoid pushing yourself into a higher premium bracket without realizing it.

6. The Financial Impact of Losing a Spouse Widowhood or widowerhood can be doubly difficult; not only do you suffer personal loss, but your filing status shifts to single, drastically lowering the income thresholds for IRMAA. If you expect changes in income or status, make proactive plans with your advisor to help smooth your MAGI.

7. Large, One-Time Retirement Account Withdrawals Big withdrawals from IRAs or 401(k)s—perhaps to buy a car or fund a vacation home—could catapult your income into a higher IRMAA tier. Consider spreading large purchases over several years or evaluating alternative financing options to keep retirement account withdrawals more manageable.

Small Decisions Add Up While IRMAA might not be avoidable for everyone, being strategic about income sources, withdrawals, and investment choices can reduce surprises and keep more of your retirement income where it belongs—with you. Always consult with a financial advisor familiar with your unique situation before making significant financial moves. Keep your knowledge current and your planning proactive to support a more cost-effective retirement.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * 2026 Medicare Part B Premium Surprises, #282 * 7 Ways to Lower Your Income and Avoid the IRMAA Medicare Surcharge, #142 * Mistakes To Avoid During Medicare Open Enrollment with Danielle Roberts, #229

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When it comes to planning for retirement, one of the most commonly faced decisions is how to invest for long-term growth and stability. In turbulent times, market volatility often generates renewed debate on whether index funds, or their actively managed counterparts, offer the better path for accumulating wealth. On this episode of the show, I'm unpacking what index funds are, how they stack up against actively managed funds, and what the latest data reveals about performance during both quiet and volatile markets.

You will want to hear this episode if you are interested in... * [00:00] Understanding index funds and actively managed funds * [05:55] Stock picking and bond strategies * [07:21] Comparing index funds to active funds * [11:44] 2025 market performance and instability * [13:43] Low probability of selecting an outperforming active fund * [15:42] Investing in index funds

Understanding Index Funds and Active Management The conversation focused on clarifying the definitions and roles of both index funds and actively managed funds in a portfolio. Index funds are mutual funds or exchange-traded funds (ETFs) specifically designed to track an index, such as the S&P 500, which comprises the 500 largest companies in the U.S. However, indexes extend well beyond large-cap U.S. companies to include mid-size, small-cap, international, emerging markets, real estate, and various bond markets.

Actively managed funds, in contrast, are overseen by managers aiming to outperform their index benchmarks by selectively choosing investments they believe will generate higher returns. Several points were raised, including that these managers may focus on only a subset of the companies in an index, relying on research, forecasts, and periodic rebalancing in an attempt to add value.

The Cost Factor: Why Fees Matter Management expenses are an ongoing drag on returns. Index funds typically charge extremely low fees, often around 0.1% annually, because they passively track an index and involve little decision-making. In contrast, actively managed funds average around 1% or more per year, reflecting the higher costs of professional research, trading, and active oversight. This fee gap means that even if an active manager chooses well, they must first clear a substantial hurdle just to keep pace with an index fund.

What the Data Shows About Performance in Volatile Markets In the volatile year of 2025, only 38% of actively managed funds outperformed their passive benchmarks in the U.S. stock market. For large-cap stocks like those in the S&P 500, the number was even lower—just 30%. International stock managers fared slightly better, with a 48% success rate, and emerging market funds did the best, at 64%.

However, over longer periods, the active management advantage all but disappears. Over 10 years, only 8.1% of large-cap blend active managers beat their benchmarks, with small-cap and international funds performing marginally better, and bond managers seeing a 41% success rate. But for 20-year periods, even those slim advantages deteriorated further.

Should Index Funds Still Be the Core of a Retirement Portfolio? The data strongly supports favoring index funds for most of a retirement portfolio, especially for stock allocations. Index funds keep costs low, are simple to implement, and historically have delivered better risk-adjusted returns for the vast majority of investors across long time horizons. While some areas, such as certain bond categories or emerging markets, may occasionally offer pockets of relative opportunity for active managers, these successes are rare, short-lived, and hard to identify in advance. For most retirees, sticking primarily with index funds and maintaining a diversified, long-term approach remains the prudent and statistically advantageous strategy, regardless of temporary episodes of market turmoil.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Morningstar's Active/Passive Barometer Report

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This week, I'm tackling a question that's on the minds of many investors: How safe is your money with major brokerage firms like Fidelity and Charles Schwab? In light of recent high-profile bank collapses and widespread concerns about financial security, I discuss how banks and brokerage firms operate differently, what protections exist for your investments, and what would happen if a major brokerage firm were to collapse. Whether you're considering how best to safeguard your assets or wondering about the real risks of brokerage failures, this episode will provide the clarity and peace of mind you need for your retirement planning.

You will want to hear this episode if you are interested in... * 00:00 Bank failures and investor concerns * 05:58 Protecting your money in banks * 09:18 Discussing investment safeguards * 12:08 Brokerage account safety reassurance * 13:08 Should you consolidate your broker accounts?

Why Investors Worry It's natural for investors to worry about the safety of their money, especially after the events of 2023, when several banks—Silicon Valley Bank, Signature Bank, First Republic Bank, and Citizens Bank—collapsed, shaking public confidence in U.S. financial institutions. Even rumors and social media speculation about potential trouble at a major brokerage like Schwab can fuel anxiety among clients and investors.

How Banks Actually Work: Your Money Becomes the Bank's Money When you deposit money in a bank, you're essentially lending money to that institution. The bank can then use those deposits to fund loans, mortgages, and other investments. This works well—until poor investments or insufficient collateral put depositor money at risk, which is exactly what happened with Silicon Valley Bank following its risky bets on long-term treasuries. If a bank collapses, customers may lose deposits above the FDIC insurance limit, which is $250,000 per account owner.

Brokerage Accounts: A Different—and Safer—Model Brokerage firms like Charles Schwab and Fidelity operate under a different structure that provides a stronger layer of legal protection for client assets. Here's the key distinction: The assets in your brokerage account—stocks, bonds, mutual funds—are not the brokerage firm's property. They are held in custody, separate from company assets, and protected by a legal firewall.

If Schwab or Fidelity collapsed, only the company's assets—like buildings and offices—would be at risk, not the assets in client brokerage accounts. Those client assets are held in separate custodial accounts and cannot be used to pay the firm's creditors. It's a little like using a storage facility: you lock up your investments, and nobody (including the brokerage firm) can access those contents for its own purposes.

What Happens During a Brokerage Collapse? If a major brokerage like Schwab were to fail, the Securities Investor Protection Corporation (SIPC) would step in. SIPC protection covers up to $500,000 per customer, including up to $250,000 in cash. However, most brokerages, including Schwab and Fidelity, carry additional insurance beyond SIPC requirements.

The SIPC acts much like a disaster relief agency: it verifies customer assets, ensures funds have not been misappropriated, and arranges to transfer accounts to another brokerage within days. The customer receives uninterrupted access to all their investments and holdings at the new firm.

Your Money Is Safer Than You Think The legal and operational structure of brokerage firms offers significant protection. Even in the unlikely event of a collapse, your investments would transfer intact to another brokerage. The only real risk would be investment market performance—not insolvency of the brokerage firm. It's even unnecessary to split your assets between brokerages purely out of safety concerns—it might simply make your finances harder to manage.

Investor protections for brokerage accounts are robust. With legal safeguards, insurance protection, and established practices for handling firm failures, you can rest assured that your assets at firms like Schwab and Fidelity are secure—even in a worst-case scenario.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Securities Investor Protection Corporation (SIPC) * Federal Deposit Insurance Corporation (FDIC) * Fidelity * Charles Schwab

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When it comes to planning for retirement, Roth IRAs have gained widespread attention for their tax-advantaged status and the promise of tax-free withdrawals in retirement. Financial experts, YouTubers, and podcasters have been touting the benefits of contributing to or converting assets into Roth accounts for years. But an often-overlooked vehicle could empower you to manage your investments just as efficiently: the humble taxable brokerage account. Surprisingly, with the right strategy, you can even pay 0% capital gains tax, mirroring one of the biggest appeals of a Roth.

You will want to hear this episode if you are interested in... * 00:00 Overlooked benefits of after-tax brokerage accounts * 02:29 Limitations of the Roth IRA * 06:20 Tax implications of brokerage accounts * 07:57 Tax benefits of growth stocks * 13:14 Understanding Tax Brackets and Deductions * 16:53 Inheritance rules for IRAs vs. brokerage accounts * 17:44 Managing taxable brokerage accounts

Understanding Taxable Brokerage Accounts A taxable brokerage account lets you invest in virtually anything: stocks, mutual funds, bonds, ETFs, and more. These accounts, however, are often dismissed when compared to their tax-advantaged counterparts because:

• Annual Taxation: Every year, you pay tax on dividends, interest, and any realized gains.
• Ordinary Income Tax on Short-Term Gains and Interest: Holdings sold within one year and earned interest are taxed at your regular income rate.
• Potential for Long-Term Capital Gains Tax: Sales after more than one year are taxed at the long-term capital gains rate, which is typically lower.

When used strategically, they offer flexibility and powerful tax advantages.

Making Your Brokerage Account Behave Like a Roth The key to unlocking Roth-like benefits is understanding how and when taxes apply—and how to minimize them. Invest strategically and focus on growth over dividends. Choose investments that don't pay dividends, such as growth stocks or low-dividend index funds. No dividends mean no annual income to be taxed because gains are only taxed when you sell.

You can also use Index Funds and ETFs, which usually distribute minimal dividends and capital gains, keeping annual taxes low. Avoid open-end mutual funds in taxable accounts, as they tend to generate capital gains every year, eroding long-term growth with recurring taxes.

Realizing 0% Capital Gains If your total taxable income (after deductions) stays within the 12% tax bracket—a figure that for 2026 is $50,400 for singles and $108,800 for married couples file jointly—you can sell appreciated assets and owe 0% in federal capital gains tax. It's wise to time withdrawals, plan major sales during years with little other income—such as early retirement or a gap year—to fall within the 0% bracket. Keep an eye on your other sources of income: IRA withdrawals, Social Security, and pensions count toward taxable income, potentially bumping gains into the taxable range.

Estate Planning Advantages Taxable accounts also offer:

• Ability to Borrow: Take loans against your investments without triggering taxable events
• Step-Up in Cost Basis: Heirs inherit assets at their market value on your death, often eliminating capital gains on past appreciation—a feature that Roths don't fully replicate.

By understanding how to structure and manage your taxable brokerage account, you can access strategic flexibility—not just in managing withdrawals, but in transferring wealth to future generations. The "secret" is simply knowing and applying the rules, with tax-aware investing and withdrawal strategies smoothing the way for potentially tax-free wealth growth and transfer.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

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Variable annuities are often promoted as a secure way to generate guaranteed income during retirement, drawing the attention of retirees seeking stability for their nest eggs. But beneath the surface, these products frequently come with complications and costs that can erode your savings and limit your financial flexibility. In this episode, I share the details of the often-overlooked downsides of variable annuities and give you some important insights every investor should consider.

You will want to hear this episode if you are interested in... * [03:14] What is a Variable Annuity? * [04:27] Understanding Annuity Benefits and Growth * [08:41] Lack of fee transparency in annuities * [09:45] Variable annuity investment drawbacks * [14:59] Avoiding variable annuity pitfalls

What Is a Variable Annuity? A variable annuity is an investment product sold by insurance companies, offering a selection of investment accounts, referred to as sub-accounts, designed to mimic mutual fund performance. The tax-deferred growth inside the annuity is often touted as a major benefit. This tax deferral is redundant for retirement investors who already enjoy similar benefits in IRAs or 401(k)s.

Many variable annuities advertise living benefits, such as guaranteed lifetime withdrawals. For instance, a $100,000 investment could guarantee $5,000 per year for life, regardless of the contract's cash value. Some contracts offer guaranteed "growth" of your future income base, but crucially, this is not money you can cash out: it simply determines your withdrawal amount, not your walk-away value. The catch is that these appealing features come at a steep price.

Fee Structures are the Hidden Drain on Returns One of the most significant drawbacks of variable annuities is their high-cost structure. These costs can be organized into three main categories:

• Mortality and Expense (M&E) Charges: Annual administrative fees imposed by the insurance company, typically ranging from 1% to 2% per year.
• Sub-Account Fees: Investment management fees that vary depending on your chosen investments. While some options are slightly less expensive, others can reach up to 2% annually.
• Rider Fees: If your contract includes a guaranteed income benefit, expect an additional 1%-2% per year for this privilege.

Combined, these expenses can easily total 3% to 4% annually, making variable annuities arguably the most expensive retirement investment around.

What You Don't See CAN Hurt You Transparency is another major shortfall in the world of variable annuities. Many investors are not fully aware of the high fees they're paying. While the fees are listed in the prospectus, many advisors fail to highlight them, and statements often obscure these charges. Understanding true costs requires diligent reading of the fine print, and even then, variations in sub-account performance can lead to unexpected results. You may believe you're mirroring mutual fund returns, but annuity sub-accounts are not identical and can significantly underperform.

The promise of guaranteed income comes at a heavy cost. For the insurance company's guarantee to pay off, you'd generally need to either live well beyond average life expectancy or experience long-term poor market performance. Since withdrawal rates are limited and fees are high, over the long run, variable annuities may yield less retirement income or reduce the amount left to your heirs.

Look Beyond the Sales Pitch Variable annuities can be marketed to highlight only the positives, but it's important to consider the high fees, lack of transparency, poor risk-return tradeoff, inflexibility, and opportunity costs involved. Before committing your retirement savings, do your homework—or consult a truly fiduciary advisor—and make sure variable annuities are the best fit for your long-term goals.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

Connect With Morrissey Wealth Management * www.MorrisseyWealthManagement.com/contact

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This week, we tackle the alarming rise in financial scams targeting retirees and their hard-earned savings. With insights straight from the FBI and real-world examples of scam attempts, I break down the key tactics used by fraudsters and reveal the subtle ways they can gain access to your retirement accounts. From sophisticated account takeovers to fake invoice emails, you'll learn the warning signs to watch for—and, most importantly, practical strategies to protect yourself and your financial future.

You will want to hear this episode if you are interested in... * [00:00] How financial scams work and what listeners can do to protect themselves * [03:27] Recognizing scam tactics and risks * [09:38] Recognizing fake invoice scams * [10:36] Email scams and malware threats * [16:30] Adding verbal passwords for security * [17:28] Avoiding financial scams

Why Retirees Are in Scammers' Crosshairs Retirees often represent an attractive target to scammers, thanks to years of diligent saving and sometimes less familiarity with new scam techniques. With the Federal Bureau of Investigation noting a surge in financial fraud, understanding the mechanics of modern scams is essential.

Scammers rely on a proven formula:

• Use of a trusted-looking sender
• Creation of a sense of urgency
• Sufficient believable details to seem legitimate

When you recognize these methods, retirees and their families can more easily spot fraud attempts and prevent the devastating loss of hard-earned assets.

Four Scams Every Retiree Needs to Know 1. The Account Takeover

Arguably, the most damaging scam involves fraudsters masquerading as your bank or investment firm. It starts innocuously: a text asks if you authorized a transaction. Replying prompts a phone call from a supposed representative. Thanks to massive data breaches, these scammers may already know your personal details — they just need one missing piece.

They'll convince you to read out a "security code" sent by your institution. Handing over this code gives the scammer direct account access, allowing them to transfer funds instantly. Importantly, because you authorized the transaction, financial institutions like Charles Schwab often won't reimburse the loss.

1. The Debt Collector Text Message

Here, you get a text from a "debt collector" referencing a fictitious account, amount, or government agency. Designed to provoke fear and haste, these messages trick recipients into calling the number provided or clicking a link — both of which compromise your security or lead to unauthorized payments.

1. The Unpaid Toll Notification

You receive an alert for a small, believable toll charge. With such a trivial amount, many people click the link and pay without thinking, handing over payment info to scammers who make larger, unauthorized withdrawals.

1. The Fake Invoice Email

Sophisticated emails may claim to be from reputable companies like Microsoft, complete with realistic logos and urgent language about an outstanding invoice. The danger here is twofold: opening the attachment can load malware or ransomware onto your device, or responding to the invoice sends money straight to a crook. Always verify the sender before clicking links or attachments.

Great Habits for Scam Prevention This is my seven-point toolkit to keep you one step ahead of scammers. Practice these habits consistently to stay safe:

1. Slow Down: Scammers exploit urgency. Pause, breathe, and verify requests.
2. Don't Answer Unknown Numbers: Let unfamiliar calls go to voicemail, especially those spoofing local area codes.
3. Avoid Clicking Suspicious Links: Always visit official websites or use verified contact numbers when responding to alerts or billing issues.
4. Guard Your Personal Information: Never share sensitive info like PINs, passwords, or codes unless you started the interaction.
5. Use Authenticator Apps: These offer extra security beyond SMS-based codes, which can be intercepted.
6. Add Verbal Passwords to Accounts: Financial institutions often allow this as an additional security measure.
7. Assume It's a Scam: When in doubt, err on the side of caution and reach out to institutions through official channels.

Diligence is Your Best Defense Scams will continue to evolve, but the best protection comes from vigilance and skepticism. Always vet instructions that involve your money, pause before acting, and confirm legitimacy through direct contact. Your savings represent a lifetime of work; protect them fiercely so they'll serve you for years to come.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Charles Schwab * Fidelity * Vanguard * EPIC - Equifax Data Breach

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Retirement planning extends well beyond simply saving enough during your working years—it plays out with every decision you make once you stop working. One crucial, sometimes overlooked, aspect is managing Required Minimum Distributions (RMDs) from your retirement accounts. If you have a retirement account approaching your RMD age, this episode breaks down the essential rules based on your birth year, how to calculate your distribution using the IRS tables, and key tax implications to keep in mind.

You'll also get actionable tips to help minimize your future RMDs, from optimizing your income plan and leveraging Roth conversions to using qualified charitable distributions.

You will want to hear this episode if you are interested in... * [00:00] RMD rules and calculations * [05:10] RMDs and distribution timing * [09:03] Retirement accounts and RMD rules * [14:22] Tax strategies for retirement planning * [17:00] Common RMD mistakes and solutions * [19:21] Proper charitable distribution process

What Are Required Minimum Distributions (RMDs)? RMDs are the minimum amounts you must withdraw annually from certain retirement accounts starting at a specific age, as mandated by the IRS. These distributions apply to traditional IRAs, rollover IRAs, SIMPLE IRAs, SEP IRAs, 401(k)s, 403(b)s, 457 plans, and profit-sharing plans. Importantly, Roth IRAs and Roth 401(k)s are exempt from RMDs, and regular taxable investment accounts are not impacted.

The required age for beginning RMDs now depends on your birth year:

• If you were born between January 1, 1951, and December 31, 1959, RMDs start at age 73.
• If born on January 1, 1960, or later, RMDs begin at age 75.

Tax Implications of RMDs RMDs are taxed as ordinary income. If you're not careful, withdrawals can bump you into a higher tax bracket, increase how much of your Social Security is taxable, or trigger additional Medicare Part B and Part D premiums due to IRMAA. Failing to withdraw the required amount carries a steep penalty—25%, reduced to 10% if corrected within two years.

Strategies to Lower Your RMDs Don't put all your savings in pre-tax accounts. Split between traditional and Roth accounts or invest some in taxable brokerage accounts, which aren't subject to RMDs. It can be useful to collaborate with a financial advisor to create a withdrawal strategy that minimizes taxes by pulling funds strategically from different account types.

You can also convert portions of your pre-tax accounts to Roth IRAs in years when your income (and tax bracket) is lower, helping "fill the bucket" at the lowest rates. If you retire early, delaying Social Security until age 70 increases your benefit and can create years of low taxable income—perfect for executing Roth conversions. If you're 70½ or older, you can also donate up to $100,000 per year directly from your IRA to a qualified charity. These gifts count toward your RMD but are excluded from taxable income.

Enjoying a Comfortable Retirement Navigating RMDs isn't just about following IRS rules—it's an ongoing strategy to keep your taxes low and your retirement income steady. By understanding your obligations and using the available tools, you can maximize your retirement savings and create a more secure future.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

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Are you getting your full entitlement, spousal Social Security, or—like one of my recent clients—missing out on hundreds, even thousands, of dollars each year? This week, I discuss how spousal benefits work, what the eligibility requirements are, and the critical steps you need to take to ensure you aren't leaving money on the table. If you or your spouse are nearing retirement or already collecting benefits, this episode will equip you with the knowledge to maximize your Social Security income and avoid common mistakes.

You will want to hear this episode if you are interested in... * [00:00] Spousal social security benefits * [01:56] Criteria for receiving spousal benefit * [02:25] Calculation of spousal social security benefit * [07:26] Confusion when both spouses are eligible for their own and spousal benefits * [09:46] Sue's social security increase * [11:24] Misconception that adjustments are automatic

Understanding Spousal Social Security Benefits If you are married (or divorced after a marriage of at least 10 years), you may qualify for spousal Social Security benefits. For those with limited earning histories or lower primary insurance amounts (PIA), this benefit is especially valuable.

At your full retirement age (FRA)—which is 67 if you were born in 1960 or later—you can collect up to 50% of your spouse's full retirement benefit, so long as your own benefit is less than half of theirs. If your own benefit exceeds half your spouse's, you'll receive your own larger benefit. Social Security will always pay the higher of the two benefits, but not both combined. This makes it vital to understand where you fall before claiming.

How Early Claiming Reduces Your Benefit Timing is critical. Claiming spousal benefits before your FRA means your payments will be permanently reduced. The reductions work as follows:

• For the first 36 months before your FRA, your benefit is reduced by 25/36 of 1% for every month claimed early.
• Additional months over 36 are reduced by 5/12 of 1% per month.

For example, if a spousal benefit of $800 is claimed 36 months early, the amount drops to $600, a 25% reduction. If claimed 60 months early (at age 62), the benefit falls by roughly 35% to $520.

Key Rules of Spousal Benefit Eligibility To receive a spousal benefit, several conditions must be met:

• Your spouse must be collecting their Social Security benefit (unless you're claiming divorced benefits, in which case your ex only needs to be eligible).
• You must be at least age 62 (or have a qualifying child under 16 or with a disability in your care).
• Generally, you need to be married for at least one year before applying, though this rule doesn't apply if you're the parent of your spouse's child.
• If divorced, you must have been married for at least 10 years.

Spousal benefits do not increase if you wait past your full retirement age to claim. The maximum is always 50% of your spouse's PIA. Delaying only increases benefits on your own work record, not on a spousal claim.

Spousal Benefits Are Not Automatic One major pitfall couples face is assuming that spousal benefits "switch on" automatically when their higher-earning spouse starts collecting their benefit. In reality, the Social Security Administration often needs to be contacted directly to initiate the higher spousal benefit.

I share a case where a client (Sue) was entitled to a much larger benefit once her husband began taking Social Security at age 70, yet her benefit wasn't increased until she contacted Social Security, resulting in a missed $900/month for six months. Social Security would only issue six months of retroactive pay, meaning the client lost out on another six months of increased income. Don't assume the system will identify and correct missed benefits for you—it's up to you (and your advisor) to ensure you're receiving everything you've earned.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Social Security Fairness Act

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When many investors approach retirement, one of their most pressing questions is how their portfolio will generate the income needed to fund their lifestyle. It's a common belief, often repeated by financial pundits and well-meaning friends, that you should simply "live off the dividends" from your investments. It sounds appealing: a steady stream of payments, without having to sell any shares. Relying solely on dividend-paying stocks in retirement can create hidden risks and may not be the optimal path to financial security. I explore what it actually means to live off dividends in retirement, the benefits and risks of relying on high-dividend-paying stocks or funds, and why diversification might be a smarter approach for long-term financial security.

You will want to hear this episode if you are interested in... * [00:00] Living on dividends in retirement * [06:31] Dividend stocks vs market returns * [09:04] How call options work * [10:50] Considerations for income-focused funds * [15:15] Discussing withdrawal strategy options

The Allure (and Limits) of Dividend Strategies The appeal of a dividend-driven retirement portfolio is easy to see: pick companies with high yields, collect regular income, and (hopefully) never touch the principal. Using free tools such as Fidelity's stock screener, you can quickly assemble a list of stocks yielding 4% or more. But look closer, and several challenges arise.

High dividend-paying stocks tend to be clustered in a few sectors: real estate, consumer staples, healthcare, and energy. This concentration means your portfolio lacks diversification—the single most important factor in managing risk and smoothing returns over time. If these sectors hit hard times, both income and capital could suffer.

An Overlooked Consequence of Dividends and Taxes Interest, dividends, and capital gains are all taxable (sometimes at favorable rates), but in a taxable (non-retirement) account, high dividend income can bump up your annual tax bill regardless of whether you need the cash. With a focus on capital appreciation, you retain more control: you sell as needed, and only pay tax on realized gains.

The Smarter Alternative is Total Return Investing In my opinion, the better approach is a "total return" portfolio: broad diversification across stocks and bonds, targeting growth and income together, while managing risk. Bonds provide stability and income during volatile periods, allowing for stable withdrawals even if stocks temporarily decline.

Withdrawal strategies like the Guyton-Klinger guardrails model adjust withdrawals based on market conditions and keep your portfolio aligned with your longevity and inflation risks. Index investing, with its low costs and full market exposure, helps retirees avoid the sector pitfalls of dividend chasing while participating in overall economic growth.

Dividends can be a useful piece of your retirement income puzzle—but making them the sole focus of your portfolio can expose you to unnecessary risk, tax drag, and potential underperformance. Instead, construct a balanced total-return strategy. That way, you'll generate income, growth, and peace of mind—not just in bull markets, but in any market environment.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Fidelity Stock Screener Tools * Schwab US Dividend ETF (SCHD) * Schwab Total Stock Market Index Fund (SWTSX) * JP Morgan Equity Income ETF (JEPI) * Berkshire Hathaway * AT&T * Frontier Communications * How To Get More Retirement Income Using Retirement Guardrails

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On this episode, I'm digging into the ins and outs of in-plan Roth conversions. You'll learn what it means to convert pre-tax 401(k) dollars to a Roth 401(k), who is eligible, and why it might make sense for your retirement strategy. I cover the practical steps for making these conversions, and highlight the benefits and drawbacks. I also share a real-life example of how a client navigated her options to maximize her retirement savings.

You will want to hear this episode if you are interested in... * [00:00] In-plan Roth conversions * [01:51] What is an in-plan Roth conversion? * [02:38] Eligibility for in-plan Roth conversions * [04:48] Real-life story of after-tax contributions in a client's 401(k) * [06:07] Convert after-tax contributions plus gains within the 401(k) plan to Roth 401(k) * [08:38] Rolling over after-tax contributions and gains to IRAs outside 401(k) * [10:21] Preventing funds from sitting in a money market account

The In-Plan Roth Conversion An in-plan Roth conversion allows participants to transfer funds from the traditional, pre-tax portion of their 401(k) into the after-tax Roth component of the same plan. This means you're taking money that has not yet been taxed and converting it into money that—after the conversion taxes are paid—will grow and can be withdrawn tax-free in retirement.

This strategy is different from Roth IRA conversions, which involve moving money from a traditional IRA into a Roth IRA, often at the same financial institution. In-plan conversions, on the other hand, streamline the process by keeping all assets within your employer-sponsored 401(k), offering simplicity and potentially access to preferred investment options.

Who Should Consider an In-Plan Roth Conversion? In-plan Roth conversions can be especially valuable if you anticipate being in a lower tax bracket this year compared to future years, or if you want to build a tax-free income stream for retirement. Additionally, if you already have after-tax contributions in your 401(k), converting those funds can optimize your tax efficiency by ensuring that all future gains are tax-free.

Real-Life Example: Amy's Roth Conversion Journey Let's look at the example of "Amy," who worked with me to create a financial plan. Amy had been contributing after-tax money to her General Motors 401(k), accumulating $63,000 in after-tax contributions and $40,000 in gains.

Here's how her options played out:

In-Plan Roth Conversion:

Amy could have converted both her after-tax contributions and the gains to the Roth 401(k). However, the $40,000 in gains would be taxable in the year of conversion, amounting to roughly $10,500 in taxes, or 26%. This would put her on track for approximately $200,000 in Roth assets in 10 years, assuming market growth.

Rollover to IRAs:

Alternatively, Amy chose to roll her after-tax contributions to a Roth IRA and the gains to a traditional IRA. This strategy avoided immediate taxation on the $40,000 in gains. The after-tax funds would grow tax-free in the Roth IRA, and future conversions of the traditional IRA can be planned according to her tax situation.

Amy's example highlights the importance of reviewing your plan's rules, weighing tax implications, and considering your long-term retirement goals.

Conversion Best Practices If you have after-tax contributions in your 401(k), now is the time to develop a plan. Consider converting these funds sooner rather than later to maximize the potential for tax-free compounding growth. Some plans allow automated conversions, but others require regular follow-ups with your provider.

In-plan Roth conversions can be a powerful tool to improve your retirement outlook. By understanding your plan's rules, analyzing your current and future tax situations, and executing a smart conversion strategy, you can unlock significant tax advantages and peace of mind for your golden years.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Fidelity * Charles Schwab * Vanguard * T. Rowe Price

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For many Americans, the idea of aging in place, or remaining in your own home as you grow older, represents comfort, independence, and familiarity. Most people understand the emotional benefits of remaining in a familiar environment, but often overlook the financial challenges, from home modifications and repairs to healthcare and in-home support, that could threaten their retirement savings. On the show this week, I break down the five key areas where your budget could take a hit and offer strategies to help you plan ahead, evaluate your options, and secure your ideal retirement lifestyle. If you're thinking about your future living situation or helping a loved one prepare, you won't want to miss this episode.

You will want to hear this episode if you are interested in... * [00:00] The preference for aging in place * [05:08] Home modifications for accessibility * [08:28] Considering home maintenance and healthcare costs * [13:32] Planning housing costs for retirement * [14:55] Planning for future housing needs

Understanding Aging in Place The reasons people want to age in place are clear: minimal upheaval, a sense of control, independence, and the emotional security of familiar surroundings. But it's common to underestimate what it actually costs to make this dream a reality. Many retirees fail to plan for the inevitable expenses, which can erode savings and force uncomfortable, last-minute decisions down the road.

Five Major Financial Considerations for Aging in Place 1. Home Modifications

A key prerequisite for staying at home safely is making your living space accessible. While some modifications—like installing grab bars or lever handles—may be relatively inexpensive, needs can escalate quickly. More significant updates, such as walk-in tubs, stairlifts, or ramp additions, can run into the tens of thousands of dollars. Even a basic stairlift installation can cost over $5,000, and major renovations like adding a first-floor bedroom or bathroom can easily be prohibitive, especially if done reactively in a crisis.

1. Maintenance and Repairs

Beyond mortgage payments, insurance, and property taxes, ongoing home maintenance is a substantial, often underestimated expense. Homes age just as their residents do, meaning roofs (with a typical 25-30-year lifespan), HVAC systems (lasting 10-15 years), and even electrical or plumbing systems may require expensive repairs. Consider getting a thorough evaluation of your home's current state and expected major repairs over the coming decades. Add these projected costs into your retirement budget so they don't catch you off guard.

1. Upkeep and Outsourcing Chores

When you first retire, you may be able to mow the lawn, shovel snow, or clean gutters. But as you age, these tasks may become physically challenging, if not unsafe, necessitating the hiring of help. The annual cost of landscaping, snow removal, and routine upkeep can add up, sometimes exceeding the maintenance fees of a condominium or senior community. Evaluate the true costs of outsourcing these chores over the long haul. In some cases, a housing alternative with built-in maintenance can be both safer and more cost-effective.

1. Medical and Healthcare Needs

Aging at home often means additional out-of-pocket expenses for home healthcare aides, nurses, and various medical equipment. Many necessities, such as medical alert systems or even prescription medication management solutions, are not fully covered by Medicare or standard insurance. It's essential to factor in potential costs for in-home care, equipment, and transportation to appointments should you lose the ability to drive.

1. Long-Term Care and Support

A frequent misconception is that Medicare will cover most long-term or in-home care needs. In reality, this type of care—particularly ongoing daily care—typically isn't covered, aside from certain short-term situations. Long-term care insurance is an option, but only a small percentage of Americans over 50 have it, often due to high premium costs. Given that full-time nursing care can cost as much as $180,000 annually in some regions, having a clear strategy for funding care, whether through insurance, earmarked savings, or asset liquidation, is critical.

Developing a Proactive Aging in Place Plan To successfully age in place, start planning early. Assess your home's lifespan and the modifications needed, estimate maintenance and care costs, and integrate these projections into your retirement strategy. If the total costs seem unmanageable, now is the time to explore alternatives like downsizing, moving to a condominium, or relocating to a community with built-in support, especially in today's favorable seller's market.

Making these plans before a crisis ensures you'll have more options, less stress, and a better chance at maintaining both your independence and your financial security throughout retirement.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Planning to age in place? Watch out for these hidden costs. - MarketWatch * Joint Center for Housing Studies of Harvard University * AARP

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For many Americans approaching retirement, financial planning means more than just maximizing savings and deciding when to claim Social Security. If you're not yet eligible for Medicare and rely on health coverage through the Affordable Care Act (ACA), your Social Security claiming decision at age 62 could have a dramatic effect on your insurance costs. On the show this week, I explore the nuances of how your income, and especially the timing of your Social Security benefits, can impact your eligibility for ACA premium tax credits—and what you can do to avoid costly surprises.

You will want to hear this episode if you are interested in... * [00:00] Retirement income and tax planning * [03:35] Understanding ACA tax credits * [07:44] Managing income for ACA tax credits * [10:38] Social Security and tax calculations * [14:57] Strategies for tax-free income access

Are ACA Premium Tax Credits, and Why Do They Matter? Premium tax credits, often referred to as ACA subsidies, are financial incentives designed to make health insurance more affordable for individuals and families who purchase coverage through healthcare.gov or a state exchange. These credits are contingent on your income, specifically your household's Modified Adjusted Gross Income (MAGI).

For 2026, a single person can qualify for ACA subsidies if their MAGI is between 100% and 400% of the federal poverty level (FPL)—$62,600 in 2026 for an individual, and $84,600 for a couple. If you earn even $1 above this ceiling, you lose your entire premium subsidy—a phenomenon known as the "subsidy cliff". With millions of Americans currently receiving subsidies, understanding how your retirement income decisions could threaten this benefit is essential for sound financial planning.

How Income Is Calculated for ACA Subsidies Not all income is created equal when it comes to ACA subsidies. The government uses your MAGI, which is your Adjusted Gross Income (AGI)—the number found on your tax return—plus certain items like tax-exempt bond interest and non-taxable Social Security benefits. This includes:

• Wages and self-employment income
• Social Security benefits (both taxable and non-taxable portions)
• Retirement account distributions (except Roth IRAs or Roth 401ks)
• Rental, interest, and dividend income
• Capital gains

Additionally, some deductions, like contributions to IRAs, HSAs, and student loan interest, can reduce your AGI, and thereby your MAGI, giving you potential tools for staying below the subsidy cliff.

The Social Security Timing Dilemma Collecting Social Security early at age 62 may sound appealing, but it comes with strings attached for ACA recipients. A critical point is that not all of your Social Security benefits are necessarily taxable. However, when calculating MAGI for ACA purposes, you must add back even the non-taxable portion, which can push your income above the subsidy threshold. For example, if you take a modest IRA distribution and also begin Social Security, the cumulative MAGI could surprise you.

Strategies to Preserve Your ACA Subsidy Given the high stakes, careful income planning is essential for anyone under 65 not covered by Medicare and receiving an ACA subsidy. You could delay Social Security, as waiting to claim benefits may help keep your income lower. You could also draw from Roth accounts or savings, withdrawals from Roth IRAs or 401(k)s—provided they're qualified—don't count as income. Likewise, using savings or HSA reimbursements has no impact on MAGI. IRA, HSA, and 401(k) contributions can reduce your MAGI, especially if you miscalculated and need to lower your income late in the year. The most important thing to do is plan withdrawals: Time your IRA or 401(k) distributions and capital gains so they don't coincide with years when you're dependent on ACA subsidies.

Avoiding the "Subsidy Cliff" Surprise Perhaps the most important lesson is to monitor your income projections carefully throughout the year and to report your expected MAGI precisely when applying for coverage. Exceeding the threshold by even a small amount can cause you to lose your subsidy, resulting in thousands of dollars in unexpected premium costs come tax time.

Retirement planning requires a big-picture approach that balances income sources, tax implications, and healthcare costs. If you're considering Social Security at 62 and not yet on Medicare, pay close attention to how your income choices will affect your ACA subsidy—because when it comes to the "subsidy cliff," every dollar counts.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Episode 267: Surviving the ACA Subsidy Cliff

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As April 15 approaches, marking the end of the 2025 tax filing season, many filers are facing an unpleasant surprise: tax penalties are rising, especially for those who miss timely payments or underestimate their quarterly taxes. In this episode, I'm taking you through the reasons behind the recent surge in tax penalties and highlighting how retirees, the self-employed, and investors are increasingly affected. I'll also break down the key rules, safe harbor provisions, and practical steps you can take to avoid underpayment penalties.

You will want to hear this episode if you are interested in... * [00:00] Quarterly taxes and penalties explained * [01:38] Why has there been an increase in tax penalties? * [03:10] Retirees are at risk of underpayment penalties * [04:28] Penalty rate increase details * [06:15] Safe harbor for quarterly taxes * [07:38] Key deadlines for estimated tax payments * [08:33] Smart strategies to avoid penalties

The Surge in Tax Penalties: What's Happening? Recent data shows a dramatic increase in tax penalties, particularly for those earning between $200,000 and $500,000. In fact, filers in this bracket were hit with about $1.3 billion in penalties in 2024—triple the amount compared to 2021, with the number of affected individuals increasing by 30% to almost 3 million. This uptick is fueled by both higher penalty rates and a widespread lack of awareness of changes in tax law.

The penalty rates themselves have more than doubled: while underpayment penalties hovered at 3% in 2021, they peaked at 7% before moderating to 6% as of April 2026. Unfortunately, many taxpayers simply aren't aware these penalties exist until it's too late.

Why Are Retirees at Risk? Traditionally, underpayment penalties were most common among the self-employed. Retirees are now increasingly affected due to the nature of their income sources. Most employees have income taxes withheld automatically from each paycheck, satisfying IRS requirements to pay taxes "on time". But retirees, relying on retirement account withdrawals, Social Security, and investments, often experience income without automatic withholding, leaving them vulnerable to quarterly underpayment rules. For example, someone who sells investments or performs Roth conversions in retirement may realize sizable gains in a single quarter. If taxes aren't paid promptly on those gains, penalties can accrue for each quarter the IRS deems underpaid.

Understanding Quarterly Estimated Taxes and Safe Harbors The IRS requires all filers who expect to owe $1,000 or more in taxes to pay at least 90% of their total tax bill by the filing deadline. This can be accomplished through either withholding, estimated payments, or a combination of both.

There are four key deadlines for estimated tax payments: April 15, June 15, September 15, and January 15 (05:45). Those with irregular or lumpy income—common among retirees taking periodic distributions—must still divide payments evenly across these dates, unless they opt to track payments and income month-by-month using IRS Schedule AI.

Another way to avoid penalties is by meeting the "safe harbor" thresholds. For those with income under $150,000, paying 100% of the prior year's tax usually suffices; for incomes above $150,000, 110% of the previous year's liability is required. Importantly, these amounts must also be paid in equal quarterly installments, not just as a lump sum at year's end.

Practical Strategies to Avoid Penalties These are the strategies I recommend for retirees and investors:

• Review Income: Sit down with your accountant or financial advisor to project total income from retirement accounts, Social Security, pensions, and investments.
• Adjust Withholding: If possible, increase tax withholding on retirement distributions to mimic regular paycheck withholding and satisfy quarterly obligations.
• Make Timely Payments: If you do need to make estimated payments, ensure they're made electronically or by check before each deadline. The IRS requires extra steps for online payments, so plan ahead.
• Use Schedule AI or Form 2210: If your income is highly variable—such as a large Roth conversion late in the year—use Schedule AI to clarify when the income was received. This can prevent penalties from being calculated as if you earned evenly throughout the year.
• Penalty Waivers: If you recently retired or became disabled, IRS waivers may apply. File Form 2210 to request relief.

Tax penalties are increasingly common, especially among retirees with diverse income sources. By planning and using the IRS's safe harbor rules and payment deadlines, you can avoid these costly surprises.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Form 2210

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On this milestone 300th episode of the Retire with Ryan podcast, I dig into whether the Social Security lump sum payment option is right for you. After a client reached out with questions about whether accepting a lump sum is a good deal, I want to break down how the option works, who it's available to, and the key factors to consider when making this important decision. If you're approaching retirement, this episode offers practical guidance on weighing the lump sum versus higher monthly benefits, health considerations, and the impact on survivor benefits and taxes.

You will want to hear this episode if you are interested in... * [00:00] Getting started with Social Security * [05:22] monthly Social Security benefit calculations * [06:11] Reasons to take the lump sum * [07:48] Health concerns and social security benefits * [08:27] When passing on the lump sum is a better choice * [10:24] Your lump sum may increase your taxable income

Should You Take the Social Security Lump Sum? When you apply for Social Security after your full retirement age (FRA), the Social Security Administration may offer a lump sum payment. This option is generally given to individuals who delay collecting benefits past their FRA. The lump sum typically covers up to six months of retroactive benefits.

For example, if your FRA is 66 and you apply a year later, you might be eligible for a lump sum equal to six months of prior payments. However, there's a catch: your monthly benefit will be calculated as if you started receiving Social Security six months earlier, resulting in a lower monthly payment going forward.

The Math Behind the Decision Let's look at the numbers. Suppose your current monthly Social Security benefit is $2,500. If you elect the lump sum, your payment will be based on your benefit from six months ago—roughly 4% lower, or about $2,350 per month. You would receive a lump sum ($2,350 x 6 = $14,100), but your ongoing monthly benefit would start at the lower amount. Dividing the lump sum ($14,100) by the monthly difference ($150) gives about 94 months, or almost eight years. In other words, it will take eight years of receiving the higher benefit to make up for not taking the lump sum.

Reasons to Take the Lump Sum There are situations where the lump sum makes sense:

1. Immediate Financial Need:

If you have bills, a major expense, or want to fund something important like a vacation, accessing the lump sum offers flexibility.

1. Health Concerns:

If your health is poor, the lump sum may be preferable. Social Security benefits cease at death, except for a $255 survivor payment. Taking the lump sum ensures you receive more of your entitled benefits within your lifetime.

Reasons to Decline the Lump Sum For many, passing on the lump sum will be the wiser move, if you're healthy and likely to live at least eight years, your higher monthly benefit will surpass the lump sum. Something else to consider is if you're the higher-earning spouse, your survivor's benefits will be based on your monthly payment. Opting for a lower benefit reduces what your spouse would receive after your passing.

Future cost-of-living increases are based on your initial benefit. Starting at a lower monthly payment means smaller dollar increases over time. Historically, Cost of Living Adjustments (COLA) average 2.8% per year; these can add up and compound. You also need to remember that receiving a lump sum may increase your taxable income for that year, possibly pushing you into a higher bracket or increasing taxes on your Social Security benefits. Ultimately, the decision is highly personal. Assess your health, financial needs, family longevity, and whether your spouse would depend on your benefit. Crunching the numbers will clarify your breakeven point.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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The Iran War, which began on February 28, 2026, is impacting global markets and I'm pretty sure it's having an effect on your portfolio too. Over the past month, the S&P 500 has dropped about 6%, largely due to surging oil prices. With crude oil climbing as high as $100 a barrel and lingering uncertainty around the conflict's resolution, volatility is weighing heavily on retirement investments.

We'll explore the implications for investors, discuss historical parallels with previous market shocks, and offer practical tips to navigate the fallout—whether you're looking to rebalance, automate your contributions, or take advantage of tax-loss selling. Stay tuned as I break down actionable strategies to manage your portfolio through these turbulent times, and hear why it's important to avoid overreacting despite the dramatic headlines.

You will want to hear this episode if you are interested in... * [00:00] Impact of the Iran war on the global market * [02:55] Market movements since the Iran war began * [05:20] Strategies for dealing with portfolio volatility * [06:29] Why buy into the market right now * [07.39] Rebalance your portfolio to prepare for retirement * [08:50] Continue to automate your investments * [10:14] Evaluate your underperforming investments * [11:12] How to create a tax loss that works for you

Oil Prices and Stock Market Declines Since the war began, the S&P 500 index has fallen approximately 6%, a drop largely attributed to a sharp increase in crude oil prices. Oil prices spiked from $67.29 per barrel on the eve of the conflict to as high as $100, currently stabilizing around $90 at the time of recording. This represents a 33% climb post-conflict climb and as much as a 50% jump compared to prices in recent months.

This sudden rise is far from the norm, and it's a clear demonstration of how tensions in resource-rich regions can send shockwaves throughout global markets. Higher oil prices raise production costs across industries, cut into profits, and reduce consumer spending power—all factors that undermine future earnings and push stock valuations lower.

Volatility Is Nothing New While the current drop may feel alarming, it's important to remember that market declines happen regularly and often recover just as quickly. President Trump's tariff proposals from the last year, pushed the S&P 500 down 18% before tensions eased and the market rebounded to close the year up 18%. This historical context reassures investors that dramatic events can have both short-lived and long-term effects, but resilience and recovery are common themes in market history.

Strategies for Navigating Volatility I recommend several strategies for managing portfolio volatility, starting with the importance of viewing downturns as buying opportunities—using cash to "buy the dip" can be rewarding when markets recover, especially in sectors hit hard by recent declines, including technology. It's also important to regularly rebalance your asset allocation to maintain your preferred stock-bond mix, which helps manage risk and ensures you're not overexposed or underinvested as markets shift.

The value of automated investment contributions takes advantage of dollar-cost averaging, so don't halt contributions during downturns, stay consistent for long-term growth. Periodically reviewing and potentially trimming persistently underperforming investments and considering tax-loss harvesting in taxable accounts are also key tactics—this can improve portfolio efficiency, allow for strategic tax deductions, and keep your investment plan on track without straying afoul of wash-sale rules.

Looking Forward and Recovery Potential Market volatility is inevitable, especially in uncertain times, but history and sound investing principles remind us to avoid knee-jerk reactions. Take advantage of the situation by rebalancing, automating investments, evaluating underperformers, and using tax-loss harvesting to ensure your portfolio remains resilient. Downturns often lay the groundwork for future gains, and patient, disciplined investing pays off over time.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

Connect With Morrissey Wealth Management * www.MorrisseyWealthManagement.com/contact

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On the show this week, I'm talking all about the topic of probate and how adding a Transfer on Death (TOD) or Payable on Death (POD) beneficiary designation to certain assets can help you avoid your estate being tied up in the probate process.

You'll learn which types of accounts allow for TOD or POD beneficiaries, why these designations might be preferable to joint tenancy, and the pros and cons of setting them up. I break down step-ups in cost basis, the impact on estate taxes, and touch on differences across states—plus considerations to make sure your estate plan actually fits your wishes.

You will want to hear this episode if you are interested in... * 00:00 Understanding Transfer on Death designations * 03:05 Joint tenants with rights of survivorship * 04:37 Pros and cons of TOD and POD accounts * 09:03 Challenges of TOD in estate planning * 11:24 Process for establishing TOD beneficiaries * 13:00 Does TOD avoid probate?

What Is a Transfer On Death (TOD) Designation? A Transfer on Death designation allows you to name one or more beneficiaries who will automatically receive ownership of your accounts or property when you pass away. Unlike retirement accounts and life insurance policies—which typically require you to name beneficiaries—many investment and bank accounts, such as mutual funds, brokerage accounts, and money markets, do not automatically offer this option. That's where TOD comes into play, bridging a critical gap in your estate planning.

Pros and Cons of Using TOD and POD Accounts One of the main benefits of a Transfer on Death (TOD) is that it allows designated beneficiaries to inherit assets quickly and directly, often by providing just a death certificate and minimal paperwork, which means they can avoid prolonged probate proceedings. This quick turnaround not only spares beneficiaries the stress and uncertainty of waiting for a court-supervised process but also helps them sidestep probate fees and other complications. Beneficiaries can benefit from a full step-up in cost basis on inherited assets, potentially reducing capital gains taxes if they sell soon after inheriting. For individuals who want to ensure their loved ones receive specific assets efficiently—and without granting them any access or control during their lifetime—a TOD can be an appealing tool.

However, while TOD accounts streamline asset transfer, they can introduce challenges if not coordinated carefully with a broader estate plan. For example, if you wish to provide ongoing financial support rather than a lump sum, a TOD may not be suitable because the beneficiary immediately gains control of the assets. This could present issues for beneficiaries who are not financially responsible or who qualify for government aid. Additionally, TOD designations override instructions in a will, which means any inconsistencies in how beneficiaries are named or assets are divided, could cause confusion or disputes. TOD accounts are convenient, but they require thoughtful coordination with other estate planning elements to avoid unintended consequences.

Does TOD Always Avoid Probate? While TOD almost always avoids the probate process for the specific asset, state laws can vary. Some less populous or smaller estates may not need to open probate regardless, but others require probate for everyone, as it's a revenue-generating process.

TOD and POD beneficiary designations offer an easy, low-cost way to keep more of your assets in your family's control, minimize delays, and potentially avoid the hassle of probate. Thoughtful planning addresses not just asset transfer, but also your heirs' needs and the tax implications. As with any estate tool, consider your specific circumstances and consult with a professional before making changes.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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In the last episode, I discussed seven mistakes to avoid when filing your 2025 taxes. So in this episode, I'm going to discuss the tax-filing mistakes people can make when filing an extension. Here are the four most common extension errors that could cost you money, including misconceptions about payment deadlines, underestimating taxes, and the importance of understanding state-specific extension rules.

You will want to hear this episode if you are interested in... * [00:00] Mistakes that people can make if they're filing an extension * [01:41] Importance of filing for an extension by the tax deadline * [02:35] Distinction between failure-to-file and failure-to-pay penalties * [03:53] Suggestions for estimating: using last year's tax return, factoring in income changes, or major events * [06:09] Importance of reviewing and complying with state-specific deadlines and requirements * [08:21] Filing an extension buys time for accuracy but doesn't delay payment obligations

Avoiding Common Tax Extension Mistakes Tax season is a stressful time for many, and for those with complex finances, business obligations, or unexpected circumstances, filing a tax extension may seem like a wise solution. These are the four biggest mistakes people make when filing a tax extension, along with my practical tips to avoid penalties and unnecessary stress.

Notifying the IRS The first—and perhaps most critical—mistake is assuming that wanting more time is enough. Extensions aren't automatic; they require formally notifying the IRS by filing Form 4868 by the standard tax deadline, usually April 15th. Without this key step, the IRS will consider your return late, resulting in penalties. If nothing else, mark this on your tax checklist: file Form 4868 on time, every time.

Extension to File Isn't Extension to Pay A widespread misconception is that an extension grants extra time to pay taxes due. Only your paperwork deadline shifts, your payment due date does not. Any unpaid federal taxes accrue interest from the original deadline, and failure-to-pay penalties start after April 15th. In fact, failing to file entirely triggers even steeper penalties. Estimate your tax liability and pay what you owe, even if you're still finalizing the details. Overestimating is safer, as any excess will be refunded after you fill it in.

The Hidden Danger of Inaccurate Estimates Filing an extension isn't a hall pass to put off financial reckoning. You're still required to estimate how much you owe—a process that can trip up those who experienced income changes, investment gains, asset sales, or one-time distributions. The IRS expects most to pay either 90% of their current-year tax liability or 100% of last year's taxes (110% for high earners with AGI over $150,000) by the deadline to avoid penalties.

Miss these benchmarks, and you could face interest or underpayment penalties—even if you settle up once you eventually file. Review your prior year's return and factor in any unusual income for the year. If in doubt, partner with a tax professional or use IRS Form 1040-ES for guidance.

Don't Overlook State Tax Extension Rules One major mistake is forgetting—or not knowing—that state tax extension rules often differ from the IRS. Some states, like Connecticut, sync with federal extensions only if you owe nothing additional; if you do, you'll need to file a state-specific extension. New York requires its own extension form, and most states expect payment by their deadline, regardless of a federal extension. Double-check your state tax agency's website or contact a professional. Often, a separate state extension is mandatory, and missing this step can come with its own set of penalties.

Plan for a Stress-Free Tax Extension Filing a tax extension can buy valuable time, but it's not a financial "pause" button. Always file Form 4868 (and any state-specific forms) on time. Pay the lesser of 90% of current-year or 100% (or 110% for high earners) of last year's tax by the April deadline, and study your state's requirements—federal rules don't always apply. Being proactive can save you hundreds (or thousands) in penalties and give you the space to file correctly and confidently later in the year.

Resources Mentioned * IRS Form 1040-ES * IRS Form 4868 * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Tax season is here, and if you're just now gathering your documents to file your return—or preparing them for your CPA—this is the time to slow down and make sure you're not making costly mistakes. In this episode, I walk through seven tax mistakes I frequently see both tax preparers and self-filers make when filing their returns. Some of these errors seem simple on the surface, but they can lead to penalties, missed deductions, delayed refunds, or paying more taxes than necessary. My goal in this episode is to help you avoid these pitfalls so you can file confidently and keep more of your money where it belongs.

You will want to hear this episode if you are interested in… * [00:00] Why tax season mistakes are more common than you might think * [01:00] The costly consequences of filing after the tax deadline * [02:30] Why double-checking basic personal information matters more than you think * [03:30] The hidden risk of missing 1099 forms in the digital age * [04:15] How a rollover mistake can accidentally create taxable income * [05:00] The surprisingly common issue of unsigned tax returns * [05:30] Why simple math errors can lead to penalties or unexpected refunds * [06:30] When free tax preparation help may—or may not—be a good option

The Most Common Tax Filing Errors Many tax mistakes don't happen because people are careless. They happen because people rush, assume something was already handled, or simply overlook a small detail that turns into a big issue later. One of the most common problems I see is filing past the tax deadline. Each year millions of taxpayers fail to file by the April deadline, which can trigger penalties and interest if taxes are owed. Even if you're due a refund, filing late can delay getting your money back.

Another major issue is incomplete or incorrect information on the return. Something as simple as entering the wrong bank account for a direct deposit or forgetting to include a tax document can delay processing or create unnecessary headaches. And in today's digital world, many tax forms are delivered electronically, which means it's easier than ever to overlook a 1099 if you forget about an account.

Missing Deductions and Overlooking Opportunities Beyond basic filing errors, many taxpayers lose money by missing deductions or not understanding new tax rules. Starting with the 2025 tax return, several changes introduced under the "One Big Beautiful Bill Act" create additional tax breaks. These include adjustments to the standard deduction, expanded deductions for certain taxpayers, and other potential opportunities many filers may not even realize exist.

I also discuss why deciding between the standard deduction and itemizing can significantly affect how much tax you owe. In recent years, higher standard deductions meant fewer people itemized their taxes. But changes to the state and local tax deduction cap may reopen the door for some taxpayers to itemize again, especially homeowners with mortgages or individuals paying higher state and local taxes.

Understanding what qualifies as an itemized deduction—from mortgage interest to medical expenses and charitable contributions—can make a meaningful difference in your tax outcome.

Retirement Contributions and Quarterly Tax Pitfalls Two other mistakes I see regularly involve retirement and tax planning details that often get overlooked. Some taxpayers make IRA or Health Savings Account contributions but forget to report them properly on their return. That mistake can cause them to miss legitimate deductions that could reduce their taxable income.

Another issue is failing to pay quarterly estimated taxes. This commonly affects self-employed individuals, business owners, and retirees who receive income without automatic tax withholding. Without proper withholding or estimated payments, taxpayers may face penalties—even if they eventually pay the full amount owed.

The good news is that many tax mistakes can be corrected. If you discover an issue after filing, an amended return can often resolve the problem. But catching these issues before filing is always the best strategy.

Resources Mentioned * Fidelity HSA * RetireWithRyan.com/podcast/296

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If you watched President Trump's recent State of the Union address, you probably heard about the new Trump accounts, also known as 530A accounts. In this episode, I break down how these tax-advantaged investment accounts are designed to work, who qualifies, and—just as importantly, what we still don't know. There's been a lot of excitement, especially around the $1,000 seed money for eligible children. But before you rush to open one, there are several unanswered questions that deserve your attention.

What Are Trump Accounts—and Who Qualifies? Trump accounts were introduced under the 2025 "Big Beautiful Bill Act" and are designed to help U.S. children build long-term wealth. Parents, grandparents, and others can contribute up to $5,000 per year per child until age 18. To jumpstart participation, children born between January 1, 2025, and December 31, 2028, are eligible for a $1,000 federal seed contribution.

Unlike a Roth IRA, these accounts do not require earned income to contribute. That's a major difference. Most children can't fund retirement accounts because they don't have income. These accounts are meant to give them a head start from birth.

To qualify, a child must be a U.S. citizen, have a valid Social Security number, and be under age 18. Parents can apply either by filing IRS Form 4547 with their 2025 tax return or by visiting trumpaccounts.gov.

You'll Want to Hear This Episode If You're Interested In…

• [01:00] How the $5,000 annual contribution limit works
• [01:45] Why these accounts don't require earned income
• [02:35] How to open an account through your tax return or online
• [03:00] The upcoming authentication process in May 2026
• [03:40] Whether you can invest in individual stocks like Nvidia or Tesla
• [04:30] Why Treasury guidance suggests broad index funds instead
• [05:10] Whether billions in seed money could move the stock market
• [06:00] Which financial institutions may (or may not) offer these accounts
• [07:45] Potential gift tax filing requirements for contributions
• [08:45] How withdrawals at age 18 might be taxed

The Investment Confusion and Market Impact One of the biggest points of confusion right now is how the funds will actually be invested. The Trump accounts website shows mockups featuring individual stocks like Nvidia, Caterpillar, Home Depot, and Tesla. That certainly grabs attention. But Treasury guidance suggests investments may be limited to broad U.S. equity index funds or mutual funds, not individual stocks.

If that holds true, I actually think that may benefit most investors. Broad-based index funds have historically outperformed many individual stock pickers over time. But it's important to understand what you're signing up for before you contribute.

Another question I address is whether these accounts could meaningfully impact the stock market. With over 3 million sign-ups already, the initial $1,000 seed funding could total more than $3 billion. Add in private contributions and potential employer matches, and that number could grow to $7–8 billion invested when markets reopen after July 4.

That sounds significant, but compared to total daily trading volume, it's less than 2%. It may provide a small positive impact, but it's unlikely to cause a dramatic market surge.

Taxes, Custodians, and the Big Unknown at Age 18 There are still major tax questions. Because contributions are considered gifts and the child doesn't have immediate access to the funds, this could create gift tax reporting complications. Even if contributions fall under the $19,000 annual exclusion (for 2026), a gift tax return may still be required due to the lack of "present interest."

Then there's the big question: how will withdrawals be taxed at age 18? There's no upfront deduction for contributions, which means this isn't structured like a traditional IRA. But it's also not clearly a Roth. My expectation is that only the gains will be taxed, but we don't yet know whether that will be ordinary income or capital gains.

Until we get final guidance, I strongly believe record-keeping will be critical. Track contributions carefully. If custodians change or records are lost, your child could face unnecessary tax complications later.

For now, here's what we do know: if your child, or a grandchild, niece, or nephew, qualifies for the $1,000 seed money, make sure the account gets opened. Even with unanswered questions, that initial funding is meaningful.

Resources Mentioned

• TrumpAccounts.gov
• RetireWithRyan.com
• Retirement Readiness on Demand Discount Code: RETIRE99

Connect With Ryan * Subscribe to the Retire With Ryan YouTube Channel * Download my entire book for FREE

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If you have children and you've been thinking, "Why wait until I'm gone to help them financially?"—this episode is for you. In Episode 294, I walk through the biggest things to consider before making gifts to your kids while you're still alive, and I break down some of the smartest ways to do it without triggering unnecessary taxes.

I'm seeing this trend more and more with my clients, and it makes sense. Financial markets have performed well, real estate has surged, and many retirees are in a stronger position than generations before them. But just because you can gift money doesn't mean you automatically should. There are several financial and family dynamics you need to think through first.

The First Question I Ask: Can You Truly Afford It? Before you gift a dime to your children, I want you to look at your own financial foundation. I work with clients in their late 50s all the way into their 80s, and one of the most important realities is this: your retirement plan has to work first.

You may have raised your kids, supported them, paid for education, and helped them get launched. Ideally, they should be able to support themselves. If you're gifting because you're financially secure and you want to, that's completely fine. But if the gift creates risk for your long-term success, it's not worth it.

I also want you to think about long-term care. Many people don't have long-term care insurance because it's expensive, or they had it and dropped it when premiums increased. That means they're planning to self-insure. If you give away too many assets now, what does that do to your ability to fund care later?

You'll Want to Hear This Episode If You're Interested In… * [02:12] The #1 financial checkpoint before gifting anything * [03:18] Long-term care planning, and why gifting can backfire * [04:02] Common gifting goals: housing, school, debt, lifestyle support * [05:12] Why business funding gifts require extra caution * [06:26] The "fairness problem" when you have more than one child * [07:22] How gifts can unintentionally destroy motivation and independence * [08:10] The 2026 gift tax limits ($19,000 per person, $38,000 per couple) * [09:04] The lifetime exemption, and why Congress can change the rules * [10:28] The hidden danger of gifting appreciated assets * [11:07] Step-up in basis vs. gifting while alive * [12:05] Medicare premium impacts and capital gains planning * [13:14] The tax-efficient order of assets to gift * [15:22] Gifting real estate, and the cost basis trap * [17:12] The 2-out-of-5-year home sale exclusion rule * [18:05] The five-year Medicaid lookback and trust planning considerations

What's the Gift Actually For—and Is It One-Time or Ongoing? One of the most important planning steps is clarifying why you're giving the money.

The most common reason I see right now is housing. Real estate prices have climbed dramatically, and higher interest rates make monthly payments tougher. Helping a child with a down payment can make homeownership realistic.

Other common reasons include paying for schooling, helping pay off student loans or credit card debt, or supporting a child during illness or unemployment. Some parents also want to help grandchildren with camps, daycare, or private school.

I also talk about gifting money for a business startup—but this is where I urge caution. Businesses fail all the time. If you're going to do it, I believe a business plan and a real strategy matter.

Taxes, Cost Basis, and the Biggest Mistake People Make Many people assume gifting is simple. It isn't.

In 2026, you can gift $19,000 per person per year without triggering reporting. Married couples can gift $38,000 per child annually. Above that, you may need to file a gift tax return, and the excess counts toward your lifetime exemption.

Right now, that lifetime exemption is around $15 million, but I've been a financial advisor since 2001 and I've seen it change dramatically. When I started, it was only $600,000. Congress can change the rules again.

And here's the big one: if you gift appreciated assets while alive, your child inherits your cost basis. If they sell, they may owe a large capital gains tax. But if they inherit through death, they get a step-up in basis. That one detail can mean tens of thousands of dollars in taxes.

Resources Mentioned

• RetireWithRyan.com
• Retirement Readiness on Demand Discount Code: RETIRE99

Connect With Ryan * Subscribe to the Retire With Ryan YouTube Channel Download my entire book for FREE

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If you're approaching age 65, Medicare can feel overwhelming fast. Between Parts A, B, C, and D and the timing rules tied to each—it's easy to make a costly mistake if you don't understand how the pieces fit together.

In this episode, I walk through the Medicare "alphabet," explaining what each part does, when enrollment matters most, and how your decisions interact with the rest of your retirement plan. We also cover common questions that come up when clients transition from employer-sponsored coverage to Medicare for the first time.

Whether retirement is right around the corner or still a few years away, this episode is designed to help you avoid penalties, coverage gaps, and surprises down the road.

You will want to hear this episode if you are interested in... [00:00] Understanding Medicare Parts A, B, C, and D [01:00] When you can delay Medicare without penalties [02:30] How late enrollment penalties actually work [06:00] Timing Medicare enrollment to avoid coverage gaps [07:30] What Medicare does—and does not—cover [10:00] Medicare Advantage vs. supplemental coverage [14:00] How state rules can affect your long-term options

Why Medicare Timing Matters Medicare isn't just about what coverage you choose it's also about when you enroll. Missing key enrollment windows can trigger penalties that last for life, even if the mistake was unintentional. In this episode, I explain the rules around initial enrollment, special enrollment periods, and why employer coverage plays such a critical role in determining your options.

Choosing Between Medicare Advantage and Supplemental Coverage Once you enroll in Parts A and B, you still need to decide how to fill the gaps. Medicare Advantage plans and Medigap policies take very different approaches to coverage, costs, and flexibility. I outline how these options compare, what tradeoffs to be aware of, and why the "best" choice depends heavily on your health, preferences, and where you live.

Building Medicare Into Your Retirement Plan Medicare decisions don't exist in a vacuum. Premiums, out-of-pocket costs, and coverage choices all affect cash flow in retirement. In this episode, I explain how to think about Medicare as part of a larger retirement strategy, not just a healthcare decision—so your plan stays aligned as you transition out of the workforce.

Resources Mentioned RetireWithRyan.com Medicare.gov

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The landscape of Social Security is changing yet again. As we enter 2026, six big changes will impact both current and future retirees. I break down everything from the new cost of living adjustment (COLA), increases in the earnings test limit, and updated eligibility requirements, all the way to shifts in the full retirement age and the solvency projections for the Social Security Trust Fund.

You'll also hear practical tips on maximizing your Social Security benefits, how to prepare for what's ahead, and why it's more important than ever to have a solid retirement plan in place.

You will want to hear this episode if you are interested in... * [00:00] Social Security updates in 2026. * [04:23] Social Security Cost of Living Adjustment (COLA). * [09:00] Social Security earnings and credits. * [13:41] Social Security benefits timing. * [15:31] Social Security cuts looming in 2033.

Key Social Security Changes in 2026 On the show, you'll hear an overview of these changes, helping you to prepare and adjust your financial plans accordingly. From increased earning limits to the solvency of the trust fund, here's what you need to know.

1. Cost-of-Living Adjustment (COLA): A Modest Boost One of the most anticipated changes each year, the Social Security cost-of-living adjustment (COLA), has been set at 2.8% for 2026—slightly higher than last year's 2.5%. This increase is designed to help benefits keep pace with inflation and is calculated automatically based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) (as explained by Ryan Morrissey ). For retirees, this means an average monthly benefit increase of around $56 for singles and $88 for married couples.

However, COLA's impact can be offset by hikes in Medicare Part B premiums, which have risen to $201.96 for 2026. This nearly $18 increase represents a 9.6% jump—higher than the COLA percentage—reminding retirees to monitor both Social Security and Medicare in tandem for accurate budgeting.

1. Earnings Test Limits: Collecting While Working If you want to claim Social Security before reaching your full retirement age and continue working, new earnings test limits apply. For those aged 62 until they reach full retirement age, the annual earnings limit is now $24,480, with benefits reduced by $1 for every $2 earned above this threshold.

If you're in the year you hit full retirement age, the limit jumps to $65,160. Exceeding this means your benefit will be reduced by $1 for every $3 extra earned. Importantly, once you reach the month of your full retirement age, these limits disappear, and you can collect benefits without reductions regardless of income.

1. Earning Credits for Eligibility To qualify for Social Security, you must earn at least 40 credits over your working lifetime. For 2026, you'll receive one credit for each $1,890 earned per quarter—a slight increase over last year's $1,810. Most individuals accumulate the required credits after about 10 years of work.

Earning more than 40 credits doesn't increase your benefit, but working longer and earning more can boost your payout through the average indexed monthly earnings calculation.

1. Social Security Wage Base Increase Social Security taxes apply to income up to a set wage base, which in 2026 rises to $184,500. Both employees and employers pay 6.2% up to this limit, which has increased by $7,500 over the last year. If you're self-employed, you cover both portions (12.4%).

There's no cap on what you pay into Medicare, with a rate of 1.45%, and an additional 0.9% for higher earners. These thresholds have not been adjusted for inflation, making planning essential for those with larger salaries.

1. Full Retirement Age: Incremental Shift The gradual increase in full retirement age culminates in 2026. Those born in 1959 can claim full benefits at age 66 and 10 months, while anyone born in 1960 or later sees their full retirement age rise to 67. This change marks the final step in modifications enacted by the 1983 Social Security Act.

After age 67, there are no planned increases—unless Congress takes further action.

1. Social Security Trust Fund: Solvency Concerns The long-term outlook for the Social Security Trust Fund remains a concern. Per the latest trustee report, benefits could be cut by 23% in 2033 if Congress does not act. Recent laws have expanded eligibility but also reduced system inflows, raising questions about solvency. For now, we don't need to panic; proactive planning and staying informed are key.

Regularly review your Social Security status and plan contributions, and consider how these changes affect your overall financial strategy.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

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Have you ever fallen victim to a RAT attack? No, not the furry kind, a Remote Access Trojan attack.

I'm discussing how cybercriminals use social engineering to target victims, and the real-world impact these threats can have on your investment accounts and personal information. I reveal the latest tactics scammers use, and, most importantly, offer practical tips to help you recognize warning signs, safeguard your accounts, and minimize your risk, whether you're an individual managing your retirement nest egg or a business owner overseeing company assets.

You will want to hear this episode if you are interested in... * [00:00] What is a RAT attack? * [02:45] Avoid clicking unknown links. * [06:28] Preventing fraud through active monitoring. * [09:44] Enhancing network security strategies. * [10:48] Tips for staying secure online.

The Escalating Threat of RAT Attacks There are an estimated 2,200 cyberattacks every day, or one every 39 seconds. Global financial damages from cybercrime are projected to rise from $9.5 trillion (2024) to an estimated $10.5 trillion in 2025. It's no longer a matter of if, but when, the next attack will happen.

How a RAT Attack Unfolds Most RAT attacks begin with "social engineering", that is, psychological manipulation designed to get you to act against your best interest. This can look like an email or text from what appears to be a trusted company (think Schwab, Amazon, or EZ Pass), urging you to click a link or download an attachment.

Do not click these links or download unknown files, even if the message creates a sense of urgency or familiarity. Even a simple PDF can be the Trojan horse that installs malware without you noticing.

Once delivered, the RAT malware quietly installs itself, evading your detection. It can come bundled with software downloads, or even through "drive-by" downloads, just visiting a compromised website can infect your device without any clicking at all.

More Than Just a Headache Recently, cybercriminals hacked a client's phone and attempted to transfer money from their investment account. Because my team actively monitors accounts and receives real-time alerts from Schwab, we caught the fraudulent activity before funds were lost. But not everyone is so lucky, if hackers compromise your credentials and accounts aren't closely watched, money could be transferred out, leaving you to face a lengthy investigation to recover your hard-earned savings.

Simple Habits for Preventing Attacks Most successful attacks don't involve sophisticated hacking, they leverage human error. Train yourself (and if you're a business owner, your staff) to recognize phishing emails and suspicious texts. Verify unexpected requests directly with the company, never through the provided links.

Lock Down Access Implement "least privilege" access, using strong, unique passwords and two-factor authentication for every account. For investment platforms and email, enable notifications for any account activity, so you're alerted instantly to suspicious changes.

Secure remote connections with a Virtual Private Network (VPN) and avoid unsecured public Wi-Fi. If you must work remotely, use your cell phone's secure hotspot rather than free Wi-Fi at a coffee shop. And never log on to bank or brokerage accounts on shared or public networks.

Monitor and Layer Security Constant vigilance is your shield. Regularly monitor account activity and set up a system of alerts. Layer your security by combining access controls, firewalls, and regular updates. Always verify new contacts or software installations, adopt a "zero trust" mindset: trust, but always verify.

Stay One Step Ahead

No single solution can prevent all RAT attacks, but a combination of awareness, good digital habits, and layered security makes a world of difference. Being informed is your best defense. Activate two-factor authentication, review your notifications and account alerts, and approach every digital interaction with a healthy dose of skepticism.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

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A listener recently wrote in with a common and important retirement planning question: If I'm already maxing out my 401(k), can I also contribute to a traditional IRA in the same year? The short answer is yes—but whether it makes sense, and how much benefit you receive, depends on your income, tax situation, and long-term goals.

In this episode, I break down how traditional IRA contributions work alongside employer-sponsored retirement plans, when those contributions are deductible, and what options are available if your income is too high for a deduction. We also explore alternative strategies, including Roth IRA contributions and backdoor Roth conversions, so you can decide how best to use your annual IRA "coupon."

This episode is especially helpful if you're trying to balance tax savings today with tax flexibility in retirement and want to avoid common mistakes that can complicate your plan later.

You will want to hear this episode if you are interested in... [00:00] Whether you can contribute to a 401(k) and IRA in the same tax year [01:55] The tax-deferral benefits of contributing to a traditional IRA [03:55] When a traditional IRA contribution is tax deductible [05:00] Income limits that affect IRA deductions [07:00] Using non-deductible IRA contributions correctly [10:00] Roth IRA contribution limits and income phaseouts [11:45] How a backdoor Roth IRA strategy works [13:30] Choosing the right IRA strategy for your situation

Why a Traditional IRA Can Still Make Sense Even if you are already maxing out your 401(k), contributing to a traditional IRA can provide additional tax advantages. The primary benefit is tax deferral. Dividends, interest, and capital gains generated inside an IRA are not taxed in the year they occur. Instead, taxes are deferred until you withdraw the money, potentially years or even decades later.

This can be especially powerful if you do not need the money right away. With required minimum distributions now starting at age 73—and increasing to age 75 for those born in 1960 or later—many investors have a long runway for tax-deferred growth.

When IRA Contributions Are Tax Deductible Whether your traditional IRA contribution is deductible depends on two main factors: whether you or your spouse are covered by an employer-sponsored retirement plan, and your adjusted gross income (AGI). Coverage includes plans such as a 401(k), 403(b), 457, SIMPLE IRA, SEP IRA, or pension plan.

For 2026, married couples filing jointly can fully deduct a traditional IRA contribution if their AGI is below $129,000, with deductions phasing out completely by $149,000. For single filers, the full deduction applies below $81,000 and phases out by $91,000. If neither spouse is covered by a workplace plan, the contribution is fully deductible regardless of income.

Options If You Can't Deduct a Traditional IRA If your income is too high to deduct a traditional IRA contribution, you still have options. One approach is making a non-deductible IRA contribution. While this does not provide a tax deduction upfront, your investments can still grow tax deferred. However, this strategy requires careful recordkeeping to properly track taxable and non-taxable portions when withdrawals begin.

Another option is contributing to a Roth IRA, if your income falls within Roth contribution limits. Roth IRAs offer tax-free growth and tax-free withdrawals, making them attractive for long-term planning. For those whose income exceeds Roth limits, a backdoor Roth IRA may be an option, provided there are no other pre-tax IRA balances that would trigger pro-rata taxation.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

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Last week, we covered the best investments to preserve your money, but this week we are shifting gears to focus on growth. For retirees, the goal is to have an income that outpaces inflation, and historically, the best way to achieve that is by having 50% to 70% of your portfolio invested in stock funds.

In this episode, I break down five specific Exchange Traded Funds (ETFs) that can help you grow your wealth in 2026. I discuss why I prefer ETFs over mutual funds, specifically focusing on cost, transparency, and liquidity, and provide the exact ticker symbols and expense ratios for the funds I use with my own clients to build diversified, growth-oriented portfolios.

If you are willing to accept some volatility to achieve higher long-term returns, this episode provides a blueprint for structuring the equity side of your retirement plan.

You will want to hear this episode if you are interested in... * [00:00] Top 5 Growth ETFs to Own For 2026. * [02:55] Why ETFs are superior to mutual funds. * [05:23] The core holding: S&P 500 ETF. * [09:28] Capturing extra growth with SPYG. * [06:33] Small Cap stocks and the profitability factor. * [13:38] Investing in the Developed World ex-US. * [15:43] High growth potential in Emerging Markets.

Why Choose ETFs? Before diving into specific funds, it is important to understand why Exchange Traded Funds (ETFs) are often a better choice than traditional mutual funds. I prefer them for four main reasons:

• Cost: ETFs often have significantly lower expense ratios, some less than a tenth of a percent, compared to actively managed funds that can charge up to 2%.
• Performance: Many active funds struggle to outperform their benchmarks over time.
• Transparency: You can see exactly what an ETF holds, whereas mutual funds may only report holdings twice a year.
• Liquidity: You can trade ETFs throughout the day while the market is open, rather than waiting for the market close price required by mutual funds.

The US Core: S&P 500 and Growth Variations For the core of a growth portfolio, I look to the S&P 500, which has averaged a 15% return over the last five years.

• State Street SPDR Portfolio S&P 500 ETF (SPYM/SPSM): This fund tracks the S&P 500 but was created to offer a lower cost (0.02% expense ratio) compared to the original SPY ETF. It is a massive fund with over $100 billion in assets, heavily weighted toward large technology companies like Nvidia, Apple, and Microsoft.
• S&P 500 Growth ETF (SPYG): If you want to lean more aggressively into growth, this fund tracks S&P 500 companies with high sales growth and momentum. It has a 3-year average return of 29% and a very low expense ratio of 0.04%.

Diversifying with Small Caps While the S&P 500 is dominant, it has had "lost decades" in the past where returns were negative. To diversify, I recommend the S&P 600 Small Cap ETF.

• Unlike the Russell 2000, the S&P 600 index requires companies to be profitable, which filters out lower-quality stocks.
• Although it has lagged recently, small caps may be poised for a comeback due to economic shifts and tariffs. The expense ratio for this fund is just 0.03%.

International Opportunities The US has outperformed international markets recently, but that trend could reverse.

• Developed World ex-US (SPDW): This fund invests in developed economies like Japan, the UK, and Canada. It offers exposure to major global players like Samsung and AstraZeneca with a low expense ratio of 0.03%.
• Emerging Markets (SPEM): For higher potential growth, this fund targets countries with rapidly growing GDPs, such as China, Taiwan, and India. These economies have a growing middle class, which can drive corporate earnings. The fund holds major companies like Taiwan Semiconductor and Alibaba.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

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This episode is your introduction to the world of conservative investing, so it's perfect for you if you're looking to preserve your principal and grow your money at a steady pace. I'm walking you through seven standout investment choices for 2026, ranging from high-yield online money market accounts to short-term bond funds, CDs, and Treasury bonds.

We'll discuss how to shop around for the best rates, the importance of keeping up with inflation in retirement, and the benefits and limitations of each strategy. There's something here for anyone who wants their money to work a little harder without taking on unnecessary risk.

You will want to hear this episode if you are interested in... * 00:00 Retirement Income to beat inflation. * 03:27 Using online banks and credit unions for high-yield savings. * 04:53 Automatic and manual selection of money market funds. * 08:23 How yield and volatility differ from money market funds with short-term bond funds. * 11:24 Brokered CDs vs. traditional CDs. * 13:39 U.S. Treasuries as highly secure investment using treasury bonds. * 15:11 Using a fixed annuity to invest your money. * 17:06 How U.S. Treasury Inflation Bonds (I Bonds) work.

Seven Smart Conservative Investment Options for Growing and Preserving Your Wealth Retirement planning and conservative investing go hand in hand, particularly for those looking to preserve their hard-earned principal and ensure steady, reliable growth..

1. High-Yield Online Money Market Accounts Keeping cash in traditional savings accounts often means missing out on higher returns so it's a great start to explore online banks that offer high-yield savings and money market accounts. Although these accounts lack physical branches and operate electronically, the tradeoff is often higher interest rates.

2. Brokerage Money Market Funds Money market funds present another secure route to saving for retirement. With Vanguard and Fidelity, your idle cash is generally swept automatically into high-yield funds, whereas Schwab offers more choices, but you may need to manually select a higher-yielding money market fund. Current yields are around 3.6% to 3.7%, but rates fluctuate weekly with market conditions. Importantly, these investments are designed to keep the value per share at $1, minimizing risk to your principal.

3. Short-Term Bond Funds If you're comfortable with a bit more fluctuation, short-term bond funds can offer higher yields than money market funds. While prices may move slightly, the key is to assess yield versus volatility and select a fund aligned with your risk tolerance. Total bond market or aggregate bond funds, such as the State Street Aggregate Bond ETF (SPAB), can yield more (sometimes above 4%), but carry higher risk and potential for loss, as evidenced by losses in years of rapidly rising interest rates.

4. Short-Term Certificates of Deposit (CDs) CDs are an old-fashioned but reliable solution. By locking in your money for a set period (often one to three years), you benefit from higher fixed rates, currently 4% for one-year CDs and slightly lower for longer terms. Watch out, though, if interest rates fall, having a longer-term CD can be advantageous, but shopping around means opening multiple accounts, which can become hard to track.

5. U.S. Treasury Bonds Tied to government backing, short-term U.S. Treasury bonds are among the safest choices. They typically yield around 3.5% to 3.6% for terms of one to three years. Besides security, their interest is exempt from state income tax, which can be a perk for residents of high-tax states.

6. Fixed Annuities For those who want higher yields and are willing to sacrifice some liquidity, fixed annuities offer insurance-backed, multi-year fixed interest rates, sometimes higher than CDs or Treasuries. Current rates above 4% for investments starting at $100,000, though smaller minimums (such as $5,000 at Fidelity) provide slightly lower yields. The main drawback is reduced access to your principal.

7. U.S. Treasury Inflation Bonds Inflation Bonds combine a fixed interest rate with added payments tied to inflation. Currently, they yield over 4%, but are capped at $10,000 per person annually. You must hold them for at least five years to avoid penalties, and taxes on the interest can be deferred. If inflation surges, these are especially attractive.

Take Action to Grow Whether you're approaching retirement or simply cautious, these seven strategies equip you to earn more on your savings while keeping risk in check. Consider putting excess bank cash to work in one or more of these vehicles for better long-term outcomes. Remember, conservative investing isn't about standing still, it's about moving forward deliberately and securely.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Fidelity * Charles Schwab * Vanguard * Bankrate.com * Nerdwallet * Schwab Value Advantage Money Market * VMFXX * JP Morgan Ultra Short Term Income ETF * State Street SPDR Aggregate Bond ETF * TreasuryDirect

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In this episode, I'm helping you kick off 2026 by reflecting on financial habits that pave the way for a successful retirement. As we set our goals for the year ahead, I share the four key traits I've observed in successful retirees, drawn from years of experience working with people from all walks of life. You'll hear practical advice on how to work hard and invest consistently, the importance of living within your means, and ways to avoid common investment pitfalls that can derail your progress.

Whether you're just starting your retirement planning or fine-tuning your financial strategy, this episode is full of actionable tips to help you improve your financial life in 2026. If you're ready to take charge of your future and put a solid plan in place, this episode is a must-listen.

You will want to hear this episode if you are interested in... * 00:00 Retirement success traits revealed. * 05:29 Budgeting for financial growth. * 07:49 Invest simply and consistently. * 10:36 Improve and grow net worth. * 13:38 Keep an eye on your net worth.

Four Habits of Highly Successful Retirees There's no magic bullet to achieving a comfortable retirement. Many successful retirees weren't born into wealth; in fact, about 80% of millionaires started with little and built their nest eggs from scratch. The through-line is diligence and perseverance.

A powerful habit among this group is paying themselves first. Rather than saving what's left at the end of the month, successful retirees set aside a portion of their income before budgeting for other expenses. Many automate investments into employer-sponsored retirement accounts or other savings vehicles. This intentionality ensures that the priority remains on building wealth, not just sustaining a lifestyle.

Budgeting plays an essential role here. I recommend reviewing your annual spending, categorizing transactions, and identifying excesses. Small changes can help you free up cash for investments and debt reduction. If you struggle with credit card overspending, consider switching to cash or debit cards, which make it easier to visualize your available funds and stay disciplined.

There's also a growing temptation to "keep up with the Joneses," especially when social media showcases other people's amazing vacations! Appearances can be deceiving, you never know whether your neighbours are deeply in debt despite flashy photos. The key is to focus on your own financial journey, not someone else's highlight reel.

Keep Your Investments Simple Despite the barrage of complex investment themes and "get rich quick" schemes circulating online, the most effective investors stick to the basics. Avoid speculative strategies like day trading, option contracts, and penny stocks for the bulk of your portfolio. These approaches can lead to significant losses, or even financial ruin.

Successful retirees typically lean on a diversified, straightforward mix of investments: blue-chip stocks, index funds, bonds, and some real estate. A simple, repeatable investment plan not only reduces stress but also reduces the chance of costly errors. If an investment sounds complicated or "too good to be true," it likely isn't the right tool for you.

Track Your Net Worth, Every Year A great habit to get into is consistently tracking your net worth. For example, every year, I take inventory and value all of my assets, subtract any liabilities, and calculate my own net worth. This exercise isn't just about patting myself on the back, it's an important annual check-in on financial progress which helps me course-correct if I'm getting off track.

If you discover stagnant or shrinking net worth, it's a signal to look at spending, debt, or investment choices. For those carrying high-interest debt (over 6–7%), prioritizing repayment can yield safer and higher "returns" than most investments. Even in retirement, monitoring net worth is vital. Spending down savings is natural, but keeping an eye on the pace ensures your money lasts as long as you need it to.

Take Action Today Successful retirees don't wait for luck or windfalls, they put in the work, invest with discipline, stay clear of fads, and track their progress. Start by reviewing your own budget and net worth, and set realistic, meaningful goals for the year ahead. Your future self will thank you.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Budget Worksheet * Net Worth Spreadsheet

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As we turn the calendar to 2026, I reveal my forecasts for the stock market, interest rates, and top asset classes, and take a look back at how my 2025 predictions stacked up against reality.

From the S&P 500's rollercoaster performance to the ongoing rivalry between growth and value stocks, and even a showdown between bitcoin and gold, I break down what the numbers were, where I hit the mark, and where I missed. You'll also hear my insights on international versus U.S. stocks, the outlook for small caps, and what the Federal Reserve might do with interest rates in the year ahead.

Get ready for smart strategies, listener thank-yous, and a dose of investing reality as I help you set expectations (and goals) for the year to come!

You will want to hear this episode if you are interested in... * 00:00 Happy New Year! * 04:34 S&P 500 Trends and Predictions. * 07:49 Market Trends & 2025 Predictions. * 08:54 Bitcoin vs Gold & Stock Returns. * 11:17 Importance of diversifying with international stocks. * 14:20 Investment Predictions for 2026. * 17:36 Stay invested to make the best financial gains.

How did my 2025 market predictions fare? 2025 turned out to be another rollercoaster, with both triumphs and challenges for investors. Beginning with an impressive performance, the S&P 500 flirted with a 20% annual return, after two previously remarkable years (+25% in 2023 and +23% in 2024). Volatility struck early in April due to concerns about tariffs and political tensions, leading the index to drop as much as 18% year-to-date before rebounding sharply.

The market often experiences significant intra-year declines, on average, 14-15% since the 1970s, so these swings are more common than many investors realize. Despite underestimating the final S&P 500 return in my 2025 prediction, it's important to stick with your plan through turbulence.

Growth vs. Value One of the perennial debates in investing is whether growth stocks (think Apple, Nvidia, and Microsoft) or value stocks (like JPMorgan, Walmart, and Berkshire Hathaway) will come out on top. While value historically outperformed over the long term, the last decade and a half has belonged to growth. I predicted value would outperform in 2025, but growth eked out the win yet again, maintaining its streak. The ETF comparison, Vanguard's VONG for growth and VONV for value, shows just how close the race was, with both categories putting up strong numbers.

Large vs. Small Caps: The Size Dilemma Size matters in investing, particularly when it comes to large-cap (S&P 500) versus small-cap (Russell 2000) stocks. I expected small caps to shine in 2025, but large caps led for the fifth consecutive year. The good news is that small caps narrowed the gap, hinting that a turnaround could be on the horizon as economic and regulatory shifts potentially favor these underdogs.

Bitcoin vs. Gold For those seeking diversification, Bitcoin and gold are often top contenders. After years of jaw-dropping surges and gut-wrenching drops for Bitcoin, 2025 saw gold steal the spotlight with a phenomenal gain, its best showing since the 1970s, while Bitcoin stumbled. Still, I believe Bitcoin's day in the sun isn't over and predict it will bounce back in 2026.

U.S. vs. International Global diversification hasn't paid off for U.S. investors in recent years, as U.S. stocks consistently outpaced their international counterparts. In 2025, the tides turned and international stocks delivered their strongest performance in 15 years, besting the S&P 500's return. It's a timely reminder not to ignore the opportunities abroad, even if I feel U.S. equities still have the edge for 2026 due to ongoing innovation and growth potential.

Interest Rates and Federal Reserve Few factors move markets like interest rate decisions. Predicting three cuts and a year-end rate of 3.5–3.75%, I called it accurately for 2025. Looking to 2026, I expect another two cuts, with possible changes in leadership at the Fed adding an extra dose of uncertainty.

Key Takeaways for 2026 So, what's the game plan for the coming year? I predict a tempered 8.5% return for the S&P 500, a possible value and small-cap renaissance, Bitcoin's comeback, U.S. stocks leading, and a cautious but optimistic approach to interest rates. But the most valuable advice is to stay invested. Market timing is notoriously difficult, and missing just a few of the market's best days can devastate long-term returns. For those investing for a comfortable retirement, discipline and diversification remain your best allies.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Berkshire Hathaway * J.P. Morgan * ExxonMobil * Walmart * United Healthcare

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2025 has been a year of significant highs and lows, a bittersweet time marked by personal loss but also tremendous growth in our community of listeners and clients. As we wrap up the year, I wanted to take a moment to reflect and, more importantly, to give back by answering the most pressing questions on your minds.

In this episode, I'm tackling the top 10 most asked financial questions I received in 2025 from both clients and listeners. From the future solvency of Social Security and the reality of rising inflation to the specifics of Bitcoin and long-term care, we are covering the topics that directly impact your retirement confidence.

I also share a special thank you gift to you my listeners: a significant discount on my Retirement Readiness Review course to help you kickstart your 2026 planning. Whether you are wondering if you should pay off your mortgage or how to find a truly objective financial advisor, this episode provides the clear, direct answers you need to navigate your financial future.

You will want to hear this episode if you are interested in... * [00:00] Will Social Security be there for you when I retire? * [06:04] How to handle rising inflation in retirement. * [12:34] Should you be investing in Bitcoin in 2026? * [17:37] The pros and cons of paying off your mortgage early. * [21:51] Getting your children started with investing and saving. * [26:01] Protecting your investments during a market downturn.

Social Security Solvency: Should You Worry? One of the biggest fears retirees face is the potential expiration of Social Security. The most recent trustees' report projects that benefits can be paid at 100% until roughly 2033. If no changes are made by then, benefits could be reduced by approximately 20%. However, history suggests that Congress will act to prevent such a drastic cut, especially given how heavily the average American relies on this income.

We also saw recent changes with the "Social Security Fairness Act" passed just before President Biden left office, which restored benefits for many teachers and state employees previously affected by reductions. While this adds strain to the system, it highlights the political will to support retirees.

Inflation and Investment Strategy Inflation has been a persistent concern since the post-COVID stimulus era. For retirees on a fixed income, combating this is difficult because pensions and Social Security cost-of-living adjustments are automatic and out of your control.

The single best hedge against inflation is your investment portfolio. Historically, stocks are the only asset class that has significantly outpaced inflation over time. While this comes with volatility, maintaining an exposure to equities (often 50–70% for many retirees) is often necessary to ensure your purchasing power lasts as long as you do.

The "Retirement Number" Formula Forget the arbitrary goal of saving "$1 million" or "$2 million." Retirement planning is about paycheck replacement. To find your number:

1. Calculate Expenses: Determine your monthly spending needs in retirement.
2. Subtract Fixed Income: Deduct your expected Social Security and pension income from that expense number.
3. Determine the Gap: The remaining amount must come from your portfolio (401k, IRA, brokerage).
4. Apply the Withdrawal Rate: Using a conservative 4% withdrawal rate, determine if your savings can cover that gap.

Don't forget to account for taxes! You can use online calculators or work with a CPA to estimate your after-tax income.

Specific Asset Questions: Bitcoin and Mortgages Bitcoin: Despite its popularity, Bitcoin remains a highly speculative asset. In 2025, while the stock market saw gains of 15-18%, Bitcoin was down significantly, highlighting its volatility. For most retirees, the risks outweigh the benefits when a standard diversified portfolio can already meet your income needs.

Mortgage Payoff: Emotional peace of mind often conflicts with financial math. If you have a low interest rate (e.g., 3%), rushing to pay off that "cheap money" rarely makes sense when you could earn 5% or more on your investments. Furthermore, taking a large lump sum from an IRA to pay off a house could trigger a massive tax bill and even IRMAA surcharges on your Medicare premiums.

Tax Planning: Roth Conversions and New Legislation With the passing of the "One Big Beautiful Tax Act" in 2025, we have new opportunities for tax planning.

• Roth Conversions: If you expect your future tax rate to be higher than your current rate, converting traditional IRA funds to Roth can save you money long-term.
• New Deductions: The new legislation allows for a higher SALT (State and Local Tax) deduction cap of $40,000 until 2030, which is a huge benefit for those in high-tax states like Connecticut. This might create a unique window over the next few years to perform conversions more tax-efficiently.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Fidelity Investments

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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529 college savings plans are a favorite tool for families looking to fund education, but recent updates have made them even more compelling. With the passing of the One Big Beautiful Tax Act in 2025, there have been some exciting changes to what you can use 529 funds for, including expanded coverage for K-12 tuition, test fees, vocational programs, and support for learning differences.

I also discuss the various tax advantages of contributing to a 529 plan, like state tax deductions, tax-deferred growth, and even the ability to roll leftover funds into a Roth IRA for your child. He offers real-life examples, highlights differences across state plans, and gives practical tips on maximizing your savings and tax benefits as the year wraps up.

If you're looking to make the most out of your child or grandchild's future education while being smart about your finances, this episode is packed with must-know information.

You will want to hear this episode if you are interested in... * [00:00] 529 Plan updates and expansions. * [06:48] 529 Plans: taxes and benefits. * [08:02] 529 Plan tax-free growth. * [09:55] Investment considerations for 529 plans. * [13:49] New rules on 529-to-Roth IRA rollovers.

The Expanded 529 Universe Most people know 529 plans are great for covering college tuition, room and board, and required fees. The One Big Beautiful Tax Act of 2025 has expanded what 529 distributions can cover, opening up a wider range of education-related expenses, including much earlier in a student's academic journey.

Newly Eligible Expenses:

• K-12 Tuition: The annual limit for K-12 tuition expenses jumps from $10,000 to $20,000 in 2026.
• Test Fees and Credentialing: You can now use 529 funds to pay for standardized testing, college entry exams, and vocational credentialing programs.
• Homeschool & Specialized Support: Structured homeschool curricula, academic tutoring, therapies, and materials for diagnosed learning differences (including ADHD) are now eligible.
• Apprenticeships & Educational Equipment: Costs for apprenticeship programs and special technology or learning tools can now be covered.

However, there are still some limitations: transportation, school-purchased health insurance, and extracurricular activity fees remain ineligible.

State Tax Deductions The state tax deduction is a unique benefit offered by many states for 529 contributions, but often families overlook this: over 30 states offer a tax break, but the rules vary. In Connecticut, for example, you can deduct up to $5,000 per person or $10,000 per couple from your state taxable income. You must usually contribute to your own state's plan (though states like Arizona, Kansas, and Pennsylvania allow deductions for out-of-state plans). Be mindful of year-end deadlines, contributions must be made by December 31st to claim the deduction for that year. Even if your state benefit is modest, it's essentially "free money" for doing something you're likely planning anyway.

Student Loan Repayment and Rollovers to Roth IRAs 529 plans now offer more flexibility, even if the intended student doesn't use all the funds for education.

• Student Loan Repayments: Up to $10,000 (lifetime) per beneficiary can be used to pay down qualified student loans, helping recent grads reduce their debt burden.
• Roth IRA Rollovers: As of recent law, up to $35,000 can be rolled from a 529 plan to a Roth IRA for the beneficiary, provided the 529 is at least 15 years old, the money isn't a recent contribution, and the beneficiary has earned income. This can be an incredible jumpstart for retirement savings if college funds aren't fully used.

All 529 plans are not created equal. Look for low-cost, direct-sold plans rather than advisor-sold plans that carry extra commissions. Every dollar saved on fees is another dollar that can grow tax-free in your account.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Fidelity Investments

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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In the season of giving, we're discussing making charitable contributions in 2025 and 2026. Americans are known for their generous donations to worthy causes, but understanding the best ways to give and maximize your tax benefits is key.

This episode covers four effective strategies for making charitable contributions, from utilizing Qualified Charitable Distributions (QCDs) from your retirement accounts to cash donations, gifting highly appreciated stock or real estate, and using donor-advised funds. I also break down recent and upcoming tax law changes that impact your ability to itemize and deduct charitable donations, ensuring you avoid common pitfalls and make the most of your generosity.

Whether you're planning a gift this year or thinking ahead, this episode is packed with actionable tips to help you give back and plan for a successful retirement.

You will want to hear this episode if you are interested in... * [00:00] Charitable giving and tax benefits. * [05:01] Managing qualified charitable distributions. * [08:03] Charitable deductions and rules changing in 2026. * [13:17] Benefits of donor-advised funds. * [16:23] Charitable contributions for tax deductions.

Four Smart Strategies for Charitable Giving in 2026 Charitable giving is at the heart of American generosity, with billions donated annually to causes that matter. But did you know your generosity can also be a powerful tool in your tax strategy, especially as rules shift for 2026?

1. Qualified Charitable Distributions (QCDs): Tax Breaks from Your Retirement Account If you're 73 or older and taking required minimum distributions (RMDs) from a traditional IRA, a Qualified Charitable Distribution (QCD) can be a game-changer. Instead of taking your full RMD as income (which is taxable), you can direct some, or all, of it straight to a qualified 501(c)(3) charity. This distributed amount is excluded from your taxable income, potentially lowering your tax bill and even your Medicare premiums.

But details matter:

• The money must transfer directly from your IRA to the charity. You can't touch the funds yourself and then donate.
• The charity must be a registered 501(c)(3).
• When you receive your year-end 1099-R tax form, it won't indicate how much was a QCD. You (or your accountant) must reduce your taxable income by the QCD amount and annotate "QCD" on your return. Forgetting to do so can result in unnecessary taxes.

By leveraging QCDs, retirees not only support their favorite causes but also make the most of their hard-earned savings.

1. Cash Donations: Navigating Itemizing and New Deduction Thresholds Traditional cash donations are an easy way to support charities and reduce taxes, but the benefits depend on your ability to itemize deductions. Until recently, many households in high-tax states struggled to itemize due to the $10,000 state and local tax (SALT) deduction cap.

Big change for 2026 - 2029:

• The SALT cap jumps to $40,000, making itemizing possible for more people.
• If your itemized deductions, including mortgage interest, medical expenses, property taxes, and charitable gifts, exceed the standard deduction, your donations can reduce your taxable income.
• In 2026, a $1,000 per individual (or $2,000 per couple) charitable deduction will be available even if you don't itemize. However, your charitable giving must exceed 1.5% of your adjusted gross income to become deductible, creating a new bar to qualify.

Careful timing and documentation of donations can help maximize these new opportunities.

1. Donating Appreciated Assets: Stocks and Real Estate If you're sitting on highly appreciated stocks or real estate, donating them directly to charity can deliver a double tax benefit:

You avoid paying capital gains tax on the asset's increase in value, and you can also deduct the current market value of your donation (subject to certain AGI limits: 30% for appreciated assets).

To qualify:

• The asset must have been held for at least one year.
• For real estate valued above $5,000, an independent appraisal is required.
• Charities get the full value, and you skip the capital gains tax bill.

If your donation exceeds the allowed AGI percent, you can carry the excess deduction forward up to five years.

1. Donor Advised Funds: Flexible Giving, Immediate Deductions A Donor Advised Fund (DAF) is a charitable investment account. You can donate cash, stocks, or other assets now and get an immediate tax deduction, but distribute the funds to your chosen charities later, at your own pace.

Why use a DAF?

• It allows for strategic, larger contributions (helpful in years with unusually high income).
• You enjoy flexibility in choosing and timing your ultimate beneficiaries.
• Major brokerages like Fidelity, Schwab, and Vanguard offer DAFs, with differing minimum contributions and low-cost investment options.

Keep in mind that there are administrative fees (roughly 0.60% on the first $500,000), but DAFs are simpler and less costly than setting up a private foundation.

Smart Giving Starts with Smart Planning As 2026 approaches, take time to review your charitable and tax strategy. Whether using QCDs, cash gifts, appreciated assets, or a donor-advised fund, the tax code changes mean new opportunities, and some fresh requirements. Consult a financial advisor to fit these options to your personal circumstances and maximize the impact of your generosity for both your favorite causes and your family's financial wellbeing.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Fidelity * Schwab * Vanguard

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Healthcare planning is a huge part of getting ready for your retirement. In this episode, I tackle one of the most pressing updates for retirees: the latest changes to Medicare premiums for 2026, including important surcharges, deductibles, and strategies to help you manage your healthcare expenses.

I'm helping you understand the significant increases in Medicare Part B premiums and deductibles, the impact these changes will have on your Social Security benefits, and why waiting to claim Social Security might pay off. Listen in to get helpful strategies for appealing IRMAA surcharges and practical tips for structuring your income to minimize additional Medicare costs.

If you're planning for retirement or already navigating Medicare, this episode is packed with timely advice to help you make informed decisions about your healthcare and finances.

You will want to hear this episode if you are interested in... * [00:00] 2026 Medicare vs. Social Security. * [02:23] Part B Medicare surprise announced. * [04:08] Social Security timing and medicare basics. * [10:07] Appealing the Medicare IRMAA surcharge. * [12:13] Avoid IRMAA by keeping an eye on your retirement income. * [14:08] Key Medicare changes for 2026.

Medicare Part B Premiums Are Increasing in 2026 The standard monthly premium will jump to $202.90 per individual, a striking 9.7% rise from the 2025 rate of $185. This marks the largest increase since 2022, signaling that healthcare costs for retirees continue to climb at rates surpassing even Social Security's cost of living adjustment, which will be 2.8% for 2026.

For retirees collecting Social Security, Part B premiums are automatically deducted from their benefits, while those not yet collecting must pay separately, typically on a quarterly basis. It's possible for individuals with lower Social Security benefits to see the entire annual cost-of-living increase consumed, and even exceeded, by higher Medicare premiums.

Understanding Medicare's Two Parts: A and B It's important to understand Medicare's original coverage: Part A and Part B.

Part A (Hospital Insurance): Most retirees won't pay a premium for Part A if they (or a spouse) have worked at least 10 years in the U.S. Those with fewer qualifying quarters face monthly premiums of either $311 or $565, depending on how long they've paid in. The Part A deductible will also rise to $1,736 in 2026.

Part B (Medical Insurance): Covers preventive care, with the standard premium set at $202.90 and a deductible of $283 for 2026 (about a 10% increase from 2025).

IRMAA: Income-Related Monthly Adjustment Amounts & Surcharges Higher-income retirees may be subject to IRMAA, leading to additional surcharges on Part B premiums. This is determined by your modified adjusted gross income (MAGI) from two years prior (2024 for the 2026 premiums).

The IRMAA threshold for single filers is $109,000 and $218,000 for joint filers, with surcharges starting at $284.10 per person and escalating through higher brackets, potentially doubling your premium if you cross certain income thresholds.

Medicare will send IRMAA notifications, but an appeal process is available. If your income drops due to retirement or other qualifying life events, you can use SSA Form 44 to appeal unwanted surcharges. Reasons might include a work stoppage, divorce, loss of a pension, or the death of a spouse.

Strategic Planning for Retirees How can retirees manage these costs and avoid sudden surcharge surprises? Ryan Morrissey provides practical guidance:

• Delay Social Security: Waiting until full retirement age or later can mean higher monthly benefits and greater long-term cost-of-living increases.
• Monitor Your Income: Large IRA withdrawals, significant capital gains, or property sales can raise your MAGI and push you into higher IRMAA brackets.
• Appeal When Justified: Act quickly if you're eligible for an IRMAA appeal, as processing can take time and surcharges last 12 months before adjusting.
• Retirees should work closely with financial advisors to manage income distributions and plan for healthcare expenses as part of their broader retirement strategy.

With healthcare costs rising faster than Social Security increases, retirees must stay vigilant. Whether you're newly eligible for Medicare or well into your retirement journey, understanding these changes is super important.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Medicare.gov

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As 2025 comes to a close, we're here to help you make the most of year-end tax planning. I'm explaining seven actionable strategies to help you minimize your tax liability and optimize your retirement savings before the New Year.

From maximizing retirement plan contributions and exploring Roth conversion opportunities to using donor-advised funds for charitable giving and getting the most from your health savings accounts, this episode is packed with practical advice. The insights I'm sharing in this episode will guide you through the essential moves you need to consider before December 31st.

You will want to hear this episode if you are interested in... * [00:00] Year-end retirement contribution tips. * [04:07] Mega Backdoor Roth IRA strategy. * [08:51] Maximizing charitable tax benefits. * [12:19] Year-end tax savings key insights. * [16:24] Maximize HSA contributions strategically.

7 Essential Year-End Tax Planning Strategies for 2025 When the end of the year approaches, savvy savers and future retirees know it's prime time to make smart financial moves. Here are my top seven actionable steps you can take before December 31st, and even a few after, to set yourself up for retirement success and optimize your tax situation.

1. Max Out Your Retirement Contributions For 2025, the maximum contribution is $23,500 if you're under 50 and $31,000 if you're over 50 (including a $7,500 catch-up). Contributing up to these limits reduces your taxable income for the year and boosts your nest egg for retirement, especially important if you're at your career's earnings peak.

But don't wait! Corporate payroll deadlines mean these contributions typically need to be made by year's end. Self-employed individuals might have a little longer, but now is the best time to act. Setting yourself up for the new, higher 2026 limits can also help you keep your savings momentum going.

1. Utilize the Mega Backdoor Roth IRA High earners who make too much for direct Roth IRA contributions aren't out of options. The "Mega Backdoor Roth" strategy lets you contribute after-tax dollars beyond the standard 401(k) limits, then convert those funds into a Roth IRA or a Roth 401(k). For 2025, total contribution limits (including after-tax) can be as high as $77,500 if you're over 50.

This powerful move can supercharge your retirement savings with the potential for decades of tax-free growth. However, not all employer plans allow in-plan conversions, so check with your HR department to explore your options.

1. Consider Roth Conversions A Roth conversion involves moving pre-tax money from a traditional IRA or 401(k) into a Roth account. You'll owe taxes on the conversion, but if you're in a low tax bracket this year, or expect to be in a higher one later, converting now could pay off substantially in future tax savings. Even small conversions ($10,000 - $20,000) can be beneficial if kept in lower tax brackets.

2. Maximize Charitable Contributions Using Donor-Advised Funds Charitable giving is generous, but it's also an opportunity to optimize taxes. Since the standard deduction now exceeds what many typically give, "bunching" several years' worth of donations into a single year using a donor-advised fund can allow you to itemize and increase your deduction. For example, funding three years of donations at once could push your deductions over the standard threshold, providing a greater tax benefit.

3. Review Stock Options for Tax Efficiency If you have stock options, especially non-qualified stock options or incentive stock options (ISOs), year-end is an ideal time to review their tax impact. Exercising during a low-income year can mean paying less tax on gains. ISOs, when held beyond the required periods, can qualify for long-term capital gains tax rates. Each type of stock option has distinct rules and opportunities for savings, so analyze your position before acting.

4. Use Flexible Spending Accounts (FSAs) Before They Expire FSAs allow you to pay for medical expenses with pre-tax dollars, saving you the equivalent of your combined federal and state tax rates (often ~30%). For 2025, you can contribute up to $3,300. Remember: FSAs are "use it or lose it," so spend down your balance, or you risk forfeiting unspent dollars, with only a limited carryover allowed. Also consider dependent care FSAs if you have eligible expenses.

5. Maximize Your Health Savings Account (HSA) HSAs are financial powerhouses, offering triple tax benefits: contributions are deductible, growth is tax-free, and withdrawals for qualified medical expenses are untaxed. The 2025 limits are $4,300 for singles and $8,550 for families, plus an extra $1,000 catch-up if you're over 55. Make sure employer contributions are factored into your personal limit, and if both spouses are eligible, consider separate accounts for maximum catch-up savings.

Year-end tax planning is your chance to make meaningful progress toward retirement readiness and tax efficiency. Whether you're maximizing workplace plans, exploring Roth opportunities, leveraging charitable strategies, or optimizing account contributions, each move can compound into significant long-term benefits.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Charles Schwab * Fidelity * Vanguard

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There are important changes coming to 401 (k), 403 (b), and 457 retirement plans in 2026, so I'm focusing on how these updates may impact catch-up contributions for individuals over age 50. With the Secure Act 2.0 on the horizon, higher earners will soon have to make their catch-up contributions as Roth (post-tax) rather than pre-tax contributions, potentially affecting their take-home pay and tax strategies.

Tune in as I walk you through what you need to know, how to prepare for these new rules, and actionable steps to make the most of your retirement savings.

You will want to hear this episode if you are interested in... * [00:00] 2025 retirement contribution limits. * [05:26] Roth 401(k) catch-up contribution. * [08:05] 2026 salary tax example analysis. * [11:37] Tax impact on pre/post contributions. * [14:20] Tax-free Roth options.

Navigating the 2026 Catch-Up Contribution Changes Employer-sponsored retirement plans, such as 401(k), 403(b), and 457, have long offered "catch-up contributions" for participants aged 50 and above. These extra contributions serve as a valuable tool for bolstering retirement savings during peak earning years.

The catch-up contribution limits for 2025 will allow participants to contribute an additional $7,500 on top of the standard $23,500 annual maximum, totaling $31,000. There's also a "super catch-up" for those aged 60-63, which jumps to $11,250.

But starting in 2026, the Secure Act 2.0 introduces a pivotal change:

If you earned over $145,000 in 2025: You'll be required to make catch-up (and super catch-up) contributions after tax to Roth accounts, not as pre-tax traditional contributions. For those earning under $145,000, it's business as usual; you can still make catch-up contributions pre-tax if you choose.

How These Changes Impact Retirement Savers The biggest impact? High-income earners will see an immediate difference in their take-home pay. Traditional pre-tax contributions typically reduce taxable income in the year made, lowering both federal and state taxes. Roth contributions, however, do not offer this upfront tax savings; instead, they provide tax-free withdrawals in retirement. This means that someone earning $170,000 could see their annual tax bill rise by nearly $2,300 when $8,000 of their retirement saving shifts from pre-tax to post-tax Roth dollars.

If you earn even more, say, $300,000, the annual difference climbs above $3,500, all while saving the same amount. The tax diversification benefit of Roth accounts remains, but the immediate budget hit is real.

Preparing for the 2026 Transition These are my top tips for getting ready for 2026:

1. Check Your Plan's Roth Options:

Verify with your HR or retirement plan administrator whether your employer plan supports Roth 401(k) (or equivalent) contributions. If it doesn't, advocate for plan amendments, employers have until 2026 to comply.

1. Assess Payroll Impact:

Use online paycheck calculators to estimate your net pay under the new rules..

1. Consider Alternatives if Roth Isn't Available:

If your employer doesn't offer Roth options, you can still open a Roth IRA, though income limits may apply. Those exceeding these limits can explore the "backdoor" Roth IRA strategy or even simply invest in a taxable brokerage account with tax-efficient ETFs.

The Long-Term Upside of Roth Savings While losing the immediate tax break feels like a setback, forced Roth contributions offer unique advantages:

Tax-Free Growth: Money in Roth accounts grows tax-free, and withdrawals are also tax-free.

Estate Planning Boost: Funds left in Roth accounts can pass to heirs with minimal tax consequences.

Retirement Flexibility: Roth assets aren't subject to required minimum distributions (RMDs) during the account owner's lifetime.

A consistent series of $8,000 annual Roth catch-up contributions, invested over a decade at 6-8% returns, could grow to $105,000 - $115,000 tax-free, with possible doubling over the next two decades if left untouched.

Change is coming to catch-up contributions for high earners, beginning in 2026. By understanding these new rules and taking proactive steps now, you can minimize disruption and position yourself for long-term retirement success. The road to retirement is always evolving, make sure your strategy evolves with it.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Salary Paycheck Calculator – Calculate Net Income

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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If you've spent any time on social media or read personal finance blogs, you've likely encountered a buzz around Roth IRAs and, specifically, Roth conversions. This week I'm discussing the details of Roth conversions, what they are, how they work, and why they're crucial for those looking to optimize their retirement finances.

Roth IRAs hold a special appeal: the promise of tax-free income in retirement. And most people would agree that having tax free income in retirement is preferable over having taxable income. Yet, for many people, especially those in their 50s and older, most of their retirement savings sit in pre-tax accounts such as traditional IRAs or 401(k)s. Roth conversions offer a pathway for transforming those tax-deferred assets into tax-free retirement income.

This episode is packed with practical insights to help you make informed decisions about your financial future. Tune in to learn more and get ready to take your retirement planning to the next level!

You will want to hear this episode if you are interested in... * [00:00] The appeal of tax-free income during retirement. * [04:43] Key rules for Roth conversions. * [08:53] Roth conversion strategies for wealth. * [11:58] Roth IRA conversion strategy. * [14:47] Roth conversion planning tips.

Breaking Down Roth IRA Conversions A Roth IRA conversion involves moving funds from a pre-tax retirement account, like a traditional IRA or 401(k), into a Roth IRA. This process requires you to pay taxes now on the amount you convert, but it grants you future tax-free withdrawals. Anyone with pre-tax retirement funds can consider a conversion, but it's important to understand the rules: Every time you do it, it starts a new five year holding period on the money. If you withdraw converted funds too soon, you might face taxes or penalties.

One clever strategy we'll discuss is the Roth conversion ladder. By converting sums incrementally over several years, you gradually move money into the Roth IRA, allowing each batch to satisfy the five-year holding requirement. This helps maximize flexibility and minimize penalties if you need access in retirement.

Who Should Consider Roth Conversions? So, who stands to gain the most from Roth conversions? Here are a few key candidates:

• Those anticipating higher future tax rates: If you're in a low tax bracket now but expect to be in a higher one later, converting at today's lower rates can save you significant money down the road.
• Anyone wishing to avoid required minimum distributions (RMDs): Roth IRAs aren't subject to RMDs, making them valuable for those who want more control over retirement withdrawals.
• Individuals aiming to leave a tax-free inheritance: Paying conversion taxes now could shield heirs from larger tax bills, especially if they'll be in a higher bracket.
• Retirees seeking flexibility: Having both taxable and tax-free buckets to draw from allows for smart tax-efficient withdrawals.
• Timing is also critical. Converting in years when your income dips, due to sabbaticals, career changes, or early retirement, can dramatically lower the tax impact of conversion.

How to Calculate If a Roth Conversion Makes Sense It's tempting to jump into conversions, but I advise running the numbers. Consider a hypothetical: If you convert $50,000 at a 12% federal and 5.5% state tax rate, you pay $12,055 in taxes upfront. If you left the funds in a traditional IRA and paid taxes on withdrawals in retirement at a similar rate, the outcome might be similar, but if future rates rise, the Roth wins out.

The more time your converted money has to grow, the greater the tax-free benefit. And if you can pay conversion taxes from outside the retirement account, your Roth can grow even more efficiently.

Steps to Execute a Roth IRA Conversion Ready to act? Here's an overview of the process:

• Open a Roth IRA at your provider.
• Transfer funds from your pre-tax account.
• Decide how much to convert and how you'll pay the taxes (from conversion or other accounts).
• Complete the paperwork.
• Invest the funds, you want growth!
• Report conversions on your taxes, especially using IRS Form 8606.

Roth conversions are a powerful but nuanced strategy. If you're nearing retirement, anticipate higher future tax rates, or want flexibility and legacy benefits, it may be time to explore this option. I'd advise you to consult a financial advisor familiar with your specific circumstances before you make any financial decisions, doing so ensures your Roth conversion fits seamlessly into your broader retirement plan, maximizing tax-free growth for years to come.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Charles Schwab

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Retirement planning is an ever-evolving process, and staying informed about changes to Social Security, Medicare, and tax limits is crucial to making the most of your golden years. On this episode of Retire with Ryan, I'm sharing important updates on the 2026 Social Security cost of living adjustment (COLA), projected changes to Medicare Part B premiums, and strategies for managing income in retirement.

The newly announced cost-of-living adjustment (COLA) for 2026 will see benefit checks rise by 2.8%. I break down how the yearly adjustments are calculated, why they matter for seniors, and the impact of inflation on Social Security. I also discuss the expected jump in Medicare Part B premiums, what IRMAA means for higher-income retirees, and important changes to the Social Security wage base and retirement earnings limits.

Whether you're thinking about when to start your benefits or you want to strategize your retirement income, this episode will give you practical tips and resources to help you make the most of your retirement planning.

You will want to hear this episode if you are interested in... * [00:00] Social Security cost-of-living adjustment (COLA). * [02:54] COLA trends and historical adjustments. * [04:48] Social Security benefit updates. * [10:56] Social Security earnings limit explained. * [11:56] Social Security and Medicare updates.

What to Expect from Social Security COLA for 2026 After a brief delay caused by a government shutdown, the Social Security Administration (SSA) announced that benefit checks will rise by 2.8% beginning January 2026. This increase is slightly higher than last year's 2.5% and a bit less than the 2024 bump of 3.2%. While not the largest adjustment in history, any increase helps seniors keep pace with the rising costs of essentials like groceries, taxes, and insurance.

How is COLA Calculated? SSA bases COLA changes on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), specifically by comparing the average index for each month in the third quarter of one year to the same period in the previous year. Since 1972, this approach has pegged benefit adjustments to actual inflation, providing a more predictable and timely increase for beneficiaries. Beneficiaries will receive details about their new benefit amounts in early December.

Medicare Part B Premiums The base premium for Medicare Part B is predicted to rise from $185 to approximately $206.50 per month in 2026, a significant increase of roughly 11.6%. Final figures will be released later, but even preliminary estimates suggest a noticeable impact, especially for fixed-income retirees.

Income Related Monthly Adjustment Amount (IRMAA) may add further costs to your Medicare premiums if your income exceeds certain thresholds. For 2026, your IRMAA status will be determined by your 2024 tax return, due to a two-year lag in income reporting. Higher earners could see premiums up to $443.90 per month, so it's critical to strategize IRA distributions and capital gains to avoid unnecessary surcharges.

If your financial situation changes, such as a recent retirement, you may appeal IRMAA charges using Form SSA-44. Ryan Morrissey recommends reviewing prior episodes and his blog for more on appealing IRMAA.

Social Security Taxes and Retirement Income Limits The maximum wage base for Social Security taxes will jump to $184,500 in 2026 (up from $176,100), meaning any income above this threshold won't be subject to Social Security tax.

Retirees collecting Social Security before full retirement age must monitor their earned income. For 2026, the limit rises to $24,480. Earnings above this cut-off will reduce your Social Security benefit by $1 for every $2 earned. Once you reach your full retirement year, the earnings limit increases sharply to $65,160, and after your birthday, there's no limit.

The latest updates to Social Security and Medicare reflect ongoing efforts to help retirees keep pace with inflation and evolving economic conditions. Successful retirement isn't just about knowing the numbers, it's about strategizing your income to minimize taxes, avoid excess premiums, and maximize your benefits.

Resources Mentioned

• Retirement Readiness Review
• Subscribe to the Retire with Ryan YouTube Channel
• Download my entire book for FREE

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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With the term "financial advisor" being used so broadly these days, it's harder than ever for retirees and investors to make sense of who's actually guaranteed to act in their best interest. So let's talk about the key responsibilities of fiduciaries, explore the differences between fee-only advisors and those who earn commissions, and go through why full disclosure and ongoing advice matter so much in your financial planning relationship.

I share practical tips on how to vet potential advisors, whether you're unhappy with your current one or searching for the right fit for the first time, and discuss online resources designed to help you find an aligned, trustworthy professional. If you want to make sure your advisor is truly putting your interests first, this episode is for you.

You will want to hear this episode if you are interested in... * [00:00] What is a Fiduciary Advisor? * [04:59] Fiduciary duty in financial advice. * [10:14] Advisor compensation and fiduciary conflicts. * [13:16] Financial advisor versus Fiduciary. * [14:41] Choosing your Fiduciary Advisor. * [16:22] How to find a potential Fiduciary Advisor.

What Is a Fiduciary and Why Should You Care? A fiduciary is someone who is legally and ethically bound to act in your best interest. Professions such as attorneys, executors, and corporate officers have fiduciary obligations, but in wealth management and investing, this distinction is particularly critical.

Registered investment advisory firms (RIA) and their representatives are fiduciary advisors, meaning their primary responsibility is you, the client, unlike brokers or insurance agents, whose loyalty is often to their employer. Because anyone can call themselves a "financial advisor," the consumer's challenge is identifying who's truly working for you.

How Fiduciary Financial Advisors Serve You 1. Duty of Care A fiduciary advisor must always put your interests first, providing recommendations and advice tailored for your benefit. This doesn't automatically mean recommending the cheapest investment, it means recommending the most appropriate solution, factoring in cost, liquidity, and other key details. If an advisor recommends their own firm's products, this must be clearly disclosed due to the potential conflict of interest.

1. Duty to Seek Best Execution When managing your investments, a fiduciary is responsible for choosing brokers and executing trades with your best interest in mind. It's not just about low commissions; it's about balancing price, research, reliability, and responsiveness.

2. Ongoing Advice and Monitoring A true fiduciary doesn't just sell you a product and disappear. They provide continuous advice, meet with you regularly, ideally at least annually or semi-annually, and adjust your strategy as your life and goals change. If you haven't heard from your advisor in years, they're likely not fulfilling their obligations.

3. Duty of Loyalty Advisors must actively avoid or disclose any conflicts of interest. Vague, general disclosures aren't enough; specifics matter so you can make informed decisions. For example, any financial benefit your advisor receives from recommending a particular fund or insurance policy should be clear and transparent.

How Fiduciary Advisors Get Paid and Why It Matters Fiduciary RIAs typically avoid commissions and instead rely on three main payment models:

• Hourly Fees: You pay for the advisor's time, just as you would an attorney.
• Flat Fees: One-time fees for specific services, like a comprehensive financial plan.
• Assets Under Management (AUM): The most common method; you pay a percentage of the assets the advisor manages for you (often around 1% annually).

The aim is to remove any incentive for the advisor to recommend products based on compensation rather than your best interest.

Financial Advisor vs. Fiduciary: Spotting the Difference Many professionals use the title "financial advisor," whether they are fiduciaries or not. The real question to ask: Are you a fee-only advisor? Fee-only advisors are paid solely by the fees their clients pay, not commissions or kickbacks from financial products.

To do your own research, use the online tools I recommend to verify credentials, licenses, and complaint histories. Also think about asking your advisor to sign a fiduciary oath, confirming their commitment to act solely in your interest.

A fiduciary promises ongoing advice, transparency, and loyalty, values that matter when your future is at stake. Remember: Ask questions, verify credentials, and always ensure your advisor is truly working in your best interest.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * BrokerCheck * IAPD * findmyfiduciary.com * Fiduciary Oath * CFP.net

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Every year, Medicare Open Enrollment presents an important opportunity for retirees and individuals enrolled in Medicare to review, update, and make changes to their health and prescription drug coverage. If you're on Medicare or approaching retirement, understanding the enrollment period and your options is crucial to ensuring comprehensive and cost-effective health care.

I'm sharing the seven essential things you need to know to make the most of this important window. Whether you're already enrolled in Medicare or want to stay ahead of your retirement planning, I explain key dates, your options for switching plans, how to review or update your prescription drug coverage, and what to do if your health or coverage needs have changed.

Tune in to learn about navigating Medicare Advantage, Medigap, and everything you should consider before December 7th to keep your health and finances on track as you plan your ideal retirement.

You will want to hear this episode if you are interested in... * [01:56] Seven key things to know about Medicare open enrollment. * [03:04] Making changes to your Medicare supplemental coverage. * [04:30] Prescription drug plan options. * [05:21] How to evaluate and change Medicare Advantage plans. * 07:30] Switching from a Medicare Advantage plan to a Medigap plan. * [12:17] Effective dates for making Medicare Changes.

What Is Medicare Open Enrollment? Medicare Open Enrollment occurs annually from October 15th to December 7th. During this time, anyone currently enrolled in Medicare has the chance to make changes to their coverage. This window allows you to switch plans, sign up for supplemental coverage, or alter your prescription drug benefits, flexibility that's vital as your health needs or financial circumstances shift. It's important to note that this period is only for those already enrolled in Medicare, not for newly eligible individuals.

This annual period matters for anyone with existing Medicare coverage. If you're new to Medicare, say, your 65th birthday is coming up, your initial enrollment period is separate, and open enrollment won't apply until the following year. Retirees and older people who have already navigated their initial sign-up should take advantage of open enrollment to ensure their health plan continues to meet their needs.

Your Medicare Options Medicare coverage comes in several forms:

• Original Medicare (Parts A & B): Provides hospital and medical insurance.
• Medicare Advantage: All-in-one alternatives to Original Medicare, often with additional benefits and lower out-of-pocket costs.
• Medigap (Medicare Supplement): Offers extra coverage to help pay healthcare costs not covered by Original Medicare.

Open enrollment is your chance to change from one type to another, such as moving from a Medicare Advantage plan to a Medigap policy or vice versa. Switching plans can bring savings or better coverage, depending on your health situation, but there are specific rules, like the six-month initial enrollment for Medigap and state-specific regulations, that you must navigate.

Prescription Drug Plans: Reviewing and Updating Part D Prescription needs often change, and so do the offerings of Part D drug plans. This period lets you join, drop, or switch your drug coverage. If your current plan is discontinuing a medication you rely on or raising costs, research alternatives in your area. Lack of creditable drug coverage carries penalties, making it important to have either Part D or a Medicare Advantage plan with drug benefits.

Switching Medicare Advantage Plans Medicare Advantage plans differ in costs, networks, and coverage options, and these can change each year. If your doctors are no longer covered or prescription benefits shift unfavorably, open enrollment is the time to shop for a better-fitting plan. Changes due to pricing or plan termination also allow you to choose a new plan that better fits your situation for the upcoming year.

Understanding Medigap Eligibility and State Rules Switching from Medicare Advantage to Medigap isn't always straightforward, especially after your initial six-month enrollment window. Some states, including Connecticut, New York, and Massachusetts, offer more flexibility, letting you change plans without penalties for pre-existing conditions. Outside of these areas and time frames, you may face higher premiums or coverage denial unless a "guaranteed issue period" applies, such as following a plan termination or a move to a different state.

Timing and Next Steps Any changes you make during Medicare Open Enrollment become effective January 1st of the following year. It's important to act before the December 7th deadline, so plan ahead, review notices, research alternatives, and consult with trusted advisors if you're unsure. Keeping up annually ensures your coverage fits your evolving health needs and budget.

Medicare Open Enrollment can feel overwhelming, but it's a vital tool for retirees aiming for optimal care and cost efficiency. Stay informed, review your options, and take charge of your retirement health plan this open enrollment season.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Avoid These Seven Medicare Enrollment Mistakes and Protect Your Finances, #271

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This episode is essential listening for anyone who's inherited an IRA, especially in light of the game-changing SECURE Act. If you've inherited a retirement account from a non-spouse since 2020, this episode is packed with details you need to know to avoid unexpected tax bills and penalties.

I explain the new rules for inherited IRAs, explaining the requirements and options for non-designated, non-eligible, and eligible designated beneficiaries. Whether you're figuring out minimum distributions or seeking smart tax-planning strategies, you'll get clear guidance on how these updates affect you, plus tips to steer clear of common mistakes in 2025 and beyond.

You will want to hear this episode if you are interested in... * [00:00] Inherited IRAs: key details explained. * [02:36] SECURE Act and rule changes. * [04:18] Retirement account beneficiary guidance. * [07:13] IRA inheritance withdrawal rules. * [10:31] IRA distribution rules explained. * [13:36] Get in touch for more inherited IRA guidance & support.

Inherited IRAs After the SECURE Act: What You Need to Know Before 2020, inherited IRAs were relatively simple: most non-spouse beneficiaries could "stretch" required minimum distributions (RMDs) over their lifetime, potentially lowering annual tax bills. The SECURE Act changed that. If you inherited an IRA from someone who passed away on or after January 1, 2020, new distribution rules likely apply to you, and ignorance could cost you in penalties.

The law categorizes beneficiaries into three groups, and the rules differ based on which kind you are.

1. Non-Designated Beneficiaries

Non-designated beneficiaries are not people; think estates, certain trusts (non-qualifying), or charities. Naming your estate as the beneficiary might not be the best move if you want your family to get the most options. Here's why:

If the original owner died before their required beginning date (generally April 1 of the year they turned 73), the account must be fully distributed within five years.

If they died after that date, the estate can take distributions using the deceased owner's single life expectancy, but this is still less flexible than for individual beneficiaries.

1. Non-Eligible Designated Beneficiaries

This is the category most adult children, grandchildren, and some trusts fall into. For these individuals, the rules are as follows:

If the owner died before their required beginning date (age 73), you must drain the IRA within ten years, but there's no mandate on interim distributions until year 10. Be careful, though, a massive, one-year withdrawal could push you into a higher tax bracket.

If the owner died after their required beginning date, Annual RMDs start the year after death using the single life expectancy table, and the account must be completely emptied by the end of the tenth year.

1. Eligible Designated Beneficiaries

This privileged group gets more flexibility, including:

• Surviving spouses (who can treat the IRA as their own or as inherited).
• Minor children (of the deceased owner, but only until age 21).
• Disabled and chronically ill individuals.
• Individuals no more than ten years younger than the deceased.

They're allowed to take stretch distributions based on their own life expectancy, often leading to much smaller annual withdrawals and lower taxes.

Planning Opportunities and Tax Pitfalls The IRS wants its share, and waiting until year 10 to take out all the funds could mean a significant tax hit. Instead, you might consider spreading withdrawals over several years, especially if you know you'll retire before year 10, lowering your tax rate in some of those years.

Beneficiaries must also remember critical deadlines. Because the IRS allowed a moratorium on required distributions from 2021 to 2024 due to pandemic-related confusion, many will need to start withdrawing in 2025. Missing a required distribution can cost you 25% of the amount you should have taken, ouch!

Practical Steps for Beneficiaries * Review the decedent's date of death: This will determine which rules apply. * Identify what type of beneficiary you are. * Plan withdrawals smartly: Don't let inertia trigger a tax bomb in your tenth year. * Consult a financial advisor: The rules are complex, and the stakes are high; personalized advice can help prevent costly mistakes. * Don't name your estate or a non-qualifying trust as your beneficiary if you want your heirs to have better options.

Inherited IRAs under the SECURE Act require more attention than ever before. Get proactive: determine your beneficiary type, mark your calendar for required distributions, and develop a tax strategy that fits your situation.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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You might have seen those viral articles promising a mysterious multi-thousand-dollar Social Security “bonus,” but are they actually legit? On the show this week, I separate fact from fiction, debunking the myths and sharing seven actionable strategies to help you get the most out of your Social Security over your lifetime.

Whether you’re curious about how working longer, delaying your benefits, checking your earnings record, or understanding tax implications can impact your retirement paycheck, this episode is packed with valuable tips to help you make sure you’re not leaving money on the table.

You will want to hear this episode if you are interested in... * [00:00] Retirement Planning Misconceptions Explained. * [03:25] Filling in or replacing "zero" or low-earning years boosts benefits. * [04:26] Reasons for and against early collection. * [06:48] Repay benefits within one year of starting to “reset” your claim. * [08:15] Eligibility requirements for spousal benefits. * [12:28] How to check your Social Security earnings. * [13:00] Strategies to delay taxable distributions and reduce Social Security taxation.

Debunking the Social Security "Bonus" Myth Many retirees have seen headlines promising a massive Social Security “bonus" that most people don’t collect. Let’s be real, this so-called "bonus" isn’t some sort of secret benefit; it’s a reference to the cumulative value you could gain over your lifetime by paying a little attention to your Social Security strategy and reducing your tax liability. In other words, there’s no one-time check or hidden program, just savvy planning that can add up to tens of thousands more in your pocket.

1. Work Longer, Maximize 35 Years of Earnings The Social Security Administration calculates your benefit using the highest 35 years of your working life. If you retire with fewer than 35 years of work, the missing years count as zero, lowering your benefit. Even for those with a full 35-year history, additional years of higher earnings (often later in your career) can replace lower-earning years, bumping up your monthly check. Working a little longer not only increases your benefit but may also put you in a better position for retirement overall.

2. Delay Claiming Benefits While you are eligible to start at age 62, waiting until your full retirement age (typically 66 or 67), or even delaying to age 70, can significantly increase your monthly benefit. For every year you wait past full retirement age (up to age 70), you receive an 8% credit, on top of any cost-of-living adjustments. There are some exceptions where it may make sense to claim early, such as serious health issues or unique family situations.

3. Unwind an Early Claim with Repayment If you’ve already claimed Social Security but then realize you made a mistake, there is a potential do-over option. If you started benefits within the past year, you can repay the benefits received (without interest) and reset your claiming strategy to earn a higher benefit later. This is a once-in-a-lifetime opportunity and includes repayment of any Medicare premiums withheld, so be sure this move fits your broader financial plan.

4. Don’t Miss Out on Spousal and Survivor Benefits If you’re married, you can claim a spousal benefit up to 50% of your spouse’s benefit at your full retirement age. This strategy can be a huge game-changer for non-working or lower-earning spouses. When a spouse passes away, the survivor can step up to the higher of the two benefits, which is why it’s important to maximize the higher earner’s benefit for long-term security.

5. Check Your Social Security Earnings Statement Regularly Mistakes happen, even with Social Security’s generally high record-keeping accuracy. Reviewing your annual earnings statement ensures all your income is being counted, and thus, your benefit is maximized. Errors not caught early can seriously reduce your benefit down the road.

6. Be Tax-Smart About Social Security Benefits By smartly timing IRA distributions, capital gains, and part-time work, you can potentially reduce or even eliminate the tax owed on your benefits for several years. For couples with a combined income under $32,000, none of the benefit is taxable, while at higher incomes, up to 85% can be taxed. Knowing these thresholds is key to tax-efficient retirement income planning.

7. Get Advice When Needed Social Security may be just one piece of your retirement puzzle, but it’s a critical one. Consulting with a financial advisor can help you coordinate claiming strategies, minimize taxes, and make the right decisions for your unique situation.

While there’s no hidden "Social Security bonus" waiting to be claimed, a thoughtful approach to your Social Security strategy can result in thousands, even tens of thousands, of dollars more in your retirement years.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

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The Social Security Fairness Act, which was signed into law at the start of 2025, has been in effect for about nine months since this game-changing legislation repealed both the Windfall Elimination Provision and the Government Pension Offset, restoring and increasing Social Security benefits for millions of retirees, especially teachers and public employees who worked in jobs exempt from Social Security.

In this episode, I discuss exactly who qualifies for these newly restored benefits, explain how the Social Security Administration is handling the rollout, and give you a step-by-step guide on what to do if you haven’t received your payment yet. I’ll also walk you through critical tax changes you’ll need to consider if you’re now receiving this extra income, and practical strategies to avoid any nasty tax surprises at the end of the year.

You will want to hear this episode if you are interested in... * [02:26] Social Security Fairness Act overview and impact. * [05:57] Who is eligible for Windfall Elimination Provision (WEP) or Government Pension Offset (GPO). * [07:35] Applying for your benefits. * [08:16] How much Social Security becomes taxable. * [11:09] Increasing withholding on pensions, IRA, 401(k), or earned income.

What Is the Social Security Fairness Act? Signed into law by President Biden in January 2025, the Social Security Fairness Act has restored benefits for millions of retirees who were previously penalized due to their employment in jobs that were exempt from Social Security taxes. These roles frequently include teachers and certain municipal or state employees. For years, retirees in those positions received a reduced Social Security benefit due to provisions known as the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).

Windfall Elimination Provision (WEP): Affected individuals who worked in both Social Security-covered and non-covered jobs, resulting in a reduced Social Security benefit.

Government Pension Offset (GPO): Reduced the spousal or survivor Social Security benefit for those receiving a government pension from non-covered employment (like teachers in Connecticut).

With the repeal of these two provisions, retirees are now eligible to receive their full Social Security benefit, as well as the entirety of their eligible spousal or survivor benefits, regardless of their pension amount.

Who Is Impacted? The Act primarily benefits retirees who worked in state or municipal jobs excluded from Social Security wage contributions (think teachers, police, firefighters, or other state employees in certain states). It also helps spouses or survivors of such retirees, who, under the GPO, were denied or saw dramatic reductions in their spousal/survivor benefits.

As an example, if a teacher in Connecticut was receiving a $3,000/month pension, they were previously eligible for only a fraction of their spouse’s Social Security survivor benefit. Now, with the Act’s passage, they can receive the full amount, eliminating a significant hardship for many families.

The Social Security Administration has processed around 3.1 million payments, exceeding prior estimates, and paid out approximately $17 billion. However, some eligible recipients have yet to see increases, particularly those who never filed because they believed they wouldn’t qualify.

What Should You Do If You’re Eligible? If you haven’t received a payment adjustment, you might be missing out on thousands of dollars.

• File or Re-file: Eligible recipients should visit SSA.gov to update or submit a new application for benefits.

• Check Your Status: Even if you’re not currently receiving Social Security, consult the SSA to determine your eligibility for individual, spousal, or survivor benefits, especially once you reach full retirement age (typically between 66-67).

Lots of people have been automatically credited and are receiving retroactive payments, but those who never applied in the first place due to WEP and GPO restrictions must now take proactive steps.

Tax Implications of Increased Social Security Benefits More income is always welcome, but it may come with new tax responsibilities. Here’s what you need to know:

Social Security Taxation Basics:

Taxability depends on your total income: adjusted gross income (AGI), plus half of your Social Security benefit, plus tax-exempt interest.

Generally, married couples with less than $32,000 combined income owe no tax on Social Security, and between $32,000 and $44,000, up to 50% of benefits may be taxable, then over $44,000, up to 85% of benefits can be taxable. For individuals, the thresholds are $25,000 and $34,000.

Avoid Surprises by adjusting your tax withholding, either by filing IRS Form W-4V for Social Security, or updating withholdings on pensions or retirement accounts. You may also make quarterly estimated payments, especially if you live in a state with income tax.

Social Security does not withhold state income taxes, so plan accordingly to avoid penalties and interest. With these changes, it’s more important than ever to review your retirement plan and tax strategy. Speak to a qualified accountant and financial advisor to ensure you are maximizing your benefits and staying compliant with tax requirements.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Social Security

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It’s one of the most frequently asked questions by my clients as they prepare for retirement. And while a million dollars may sound like a lot, the reality is a bit more complex.

There are several key factors to consider when planning your retirement, including factoring in taxes, evaluating withdrawal strategies, and understanding the cost of living where you plan to retire.

Let’s break down how you can determine whether your nest egg will support your ideal retirement.

You will want to hear this episode if you are interested in... * [01:57] Evaluating if a million dollars is enough to retire. * [02:47] Tax Considerations on Retirement Withdrawals. * [05:04] Importance of Social Security as a retirement income supplement. * [06:12] putting together some type of a monthly budget as far as what you are spending money on now and what you plan to spend money on in retirement. * [08:37] Risk tolerance’s influence on expected returns and sustainable withdrawal rates. * [10:51] Risks of exceeding safe withdrawal rates (running out of money early).

How Much Can You Live On? How much can you safely withdraw each year without depleting your funds too quickly? In this episode, I’m discussing a dynamic withdrawal strategy, which suggests you can withdraw 3% to 5% of your portfolio annually.

Here’s a practical example:

4% withdrawal from $1,000,000 = $40,000 per year.

But it’s crucial to remember: most retirement savings are held in pre-tax accounts such as IRAs and 401(k)s. Distributions from these accounts are taxed as ordinary income. This means the real, spendable income you receive after taxes could be significantly lower.

For example, factoring in roughly 15% in combined federal and state taxes, that $40,000 could shrink to about $34,000 per year.

Factoring In Social Security and Pension Income Thankfully, your retirement income isn’t limited to withdrawals from your investment accounts. For most, Social Security provides a critical supplement—let’s say an average benefit of around $30,000 per year. Some retirees might also have pension income, though this is becoming less common.

So, your total annual income might look like:

$34,000 (after-tax retirement withdrawal)

• $30,000 (Social Security)

= $64,000 (before factoring in pension or additional income streams)

Your personal retirement number isn’t “one size fits all”—it depends greatly on what you need to spend in retirement and your other income sources.

Know Your Expenses Stop fixating on round numbers like “one million or two million dollars” as retirement goals. The real question is: What are your anticipated expenses in retirement? Start by creating a detailed budget of your expected housing, health, food, utilities, travel, and leisure costs.

Once you know your likely annual expense, you can better estimate how much you’ll need to cover from savings versus other sources. If your post-tax retirement income falls short of your living expenses, you may need to adjust your plan by saving more, reducing spending, or considering a later retirement date.

How far your savings go will also depend on your investment strategy. A well-balanced portfolio with an appropriate mix of stocks, bonds, and cash is essential. Being too conservative can hurt your portfolio’s growth potential. You also need to account for inflation.

By following a thoughtful, tailored approach, you can make the most of your retirement—whether your nest egg is one million dollars or not.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Find My Fiduciary

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Are you turning 65 soon or starting to think seriously about healthcare in retirement? This week, I discuss the complicated world of Medicare—with a focus on the seven most costly mistakes people make when enrolling.

From missing crucial deadlines and underestimating penalties, to overlooking the true costs Medicare doesn’t cover and getting tripped up by income-related surcharges, I give practical advice to help you avoid expensive pitfalls and make confident choices for your health and your wallet.

Whether you’re working past 65, exploring Medicare Advantage and Medigap, or just want to sidestep penalties, this episode unpacks the essentials so you can enter retirement feeling prepared and protected. Let’s get into the key rules, deadlines, and decisions every retiring listener needs to know!

You will want to hear this episode if you are interested in... * [04:17] Medicare enrollment guidelines & penalties. * [09:35] Understanding Medicare coverage gaps. * [11:55] Medicare enrollment and switching plans. * [17:15] Medicare premiums based on income. * [19:50] Avoid high medicare costs. * [23:16] How you can use HSA funds. * [24:56] Medicare costs and supplemental plans.

7 Medicare Mistakes that Could Cost You Making the transition to Medicare at 65 is a big step for retirees. While the program does have plenty of benefits, it also comes with a few key complexities and deadlines that can trip up the unprepared.

1. Not Enrolling on Time

Despite common belief, Medicare enrollment isn’t always automatic when you turn 65. You’re only auto-enrolled if you’ve begun collecting Social Security at least four months before your 65th birthday. Otherwise, you must actively sign up to avoid lifelong late enrollment penalties—10% annually for Medicare Part B and 1% per month for Part D, the prescription drug plan.

Remember, if you’re not covered by qualifying employer insurance (typically from a company with 20 or more employees), you must enroll during your Initial Enrollment Period (IEP), which starts three months before and ends three months after your 65th birthday month.

1. Misunderstanding Late Enrollment Penalties

Enrollment deadlines carry not just inconvenience, but long-term financial consequences. For every year you delay Part B, a 10% penalty is added to your premium—for life. For Part D, missing timely enrollment adds a 1% penalty per month delayed.

Even if you don’t currently take prescription drugs, failing to enroll in Part D or lacking “creditable” drug coverage will trigger this penalty. Many people only find out about these charges after it’s too late, so mark your calendar and stay ahead of these key windows.

1. Not Comparing Original Medicare and Medicare Advantage

Original Medicare doesn’t cover everything, leaving you responsible for 20% of costs and lacking extras like dental or vision. Medicare Advantage, on the other hand, often bundles additional services and may come with lower or even zero premiums, thanks to how the government pays private insurers. However, these plans have different provider networks and coverage rules, so compare carefully based on your health needs, preferred providers, and annual costs.

1. Waiting to Enroll in a Medigap Policy

Failing to evaluate supplemental Medigap coverage during your initial eligibility window could lead to denial or much higher premiums later, especially if you develop health conditions. During the first six months after enrolling in Part B, you’re guaranteed acceptance into any Medigap plan regardless of health. Afterward, insurers can impose restrictions or deny coverage. States like Connecticut, New York, and Massachusetts offer more flexibility, but most don’t—making early action essential.

1. Ignoring IRMAA: Higher Premiums for Higher Incomes

Many retirees are surprised by IRMAA—the Income-Related Monthly Adjustment Amount—which increases Part B and D premiums if your income exceeds certain thresholds. These adjustments are based on your tax returns from two years prior.

Even a minor one-time income bump (like a large IRA withdrawal) could propel you into a higher bracket, doubling your premiums. Be proactive: monitor your adjusted gross income and consider strategies like Roth conversions, careful withdrawal timing, or appealing based on life-changing events like retirement.

1. Making HSA Contributions After Enrolling in Medicare

Once you sign up for Medicare Part A or B, both you and your employer must stop making contributions to a Health Savings Account (HSA) six months before enrollment. Over-contributing subjects you to a 6% excise tax for every year the excess remains. However, you can continue to use existing HSA funds for eligible medical expenses tax-free throughout retirement.

1. Underestimating Out-of-Pocket Costs

Even with Medicare, you’ll face deductibles, co-pays, and services not covered (like long-term care, dental, and vision). Part A hospital stays have significant deductibles per benefit period, and Part B leaves you covering 20% of outpatient expenses.

Medicare Advantage and Medigap plans can help limit these expenses, but each comes with specific limits, provider restrictions, and rules. Without a supplemental plan, your maximum out-of-pocket exposure could reach $9,350 (in-network) or higher, depending on your plan.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

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Paying for education is a major expense for many families, so I’m breaking down why 529 plans remain the preferred way to save for college, thanks to their tax advantages and flexible growth.

I unpack updates, such as increased limits for K-12 tuition withdrawals, expanded uses for trade and vocational schools, and the new ability to roll funds into ABLE accounts for individuals with disabilities.

Plus, learn about the new Trump accounts, the option to roll over leftover 529 funds into your child’s Roth IRA, and strategies to make the most of your education savings.

Whether you’re a parent, grandparent, or simply curious about planning for future expenses, this episode is packed with actionable insights to help you build a successful financial future for your family.

You will want to hear this episode if you are interested in... * [00:00] The One Big Beautiful Bill Act and its impact. * [03:00] The two types of 529 plans - prepaid tuition and savings plans. * [04:06] Paying for K through 12 tuition and out of the 529 plan up to $20,000 per year. * [04:31] Wider Usage for Post-Secondary Expenses. * [06:20] 529 plan rollovers to ABLE accounts. * [08:52] Comparison between TRUMP accounts and 529 plans. * [09:33] 529 to Roth IRA conversions.

Maximizing the Power of 529 Plans Education expenses, whether for college or trade school, are among the largest financial commitments families face.

Recent changes under the “One Big Beautiful Bill Act” have brought new flexibility and opportunities to the popular 529 savings plans, making it easier for parents, grandparents, and guardians to invest in the futures of their loved ones.

529 plans are tax-advantaged investment accounts designed to help families save for future education costs. Investment growth within the account is tax-deferred, and withdrawals are tax-free when used for qualified education expenses.

This compounding, tax-sheltered growth can make a huge difference over 15 to 18 years, leading up to a child’s college enrollment.

There are two main types of 529 plans:

Prepaid Tuition Plans: Lock in today’s tuition rates at specific colleges or state institutions to avoid the impact of future tuition increases, which often rise more than 5% per year.

Savings Plans: Flexibly invest contributions with the ability to use funds at a wide range of educational institutions across the country.

Key Legislative Updates in the One Big Beautiful Bill Act 1. Doubling K-12 Tuition Withdrawals

Before the new legislation, families could withdraw up to $10,000 annually for K-12 tuition expenses. The One Big Beautiful Bill Act increases this limit to $20,000 per year starting January 1, 2026.

1. Expanding Qualified Expenses for K-12

The act now permits withdrawals for a broader range of K-12-related expenses, not just tuition. As of July 5th of this year, 529 account owners can use funds for:

• Books and instructional materials
• Online educational content
• Professional tutoring
• Standardized testing fees (e.g., SAT, ACT)

• Educational therapies for children with disabilities

• Supporting Trade and Technical Education

Not every rewarding career requires a four-year degree. The legislative updates now allow 529 withdrawals for accredited post-secondary programs like HVAC certifications, cosmetology, apprenticeships, or trade schools.

These must be programs recognized by the Workforce Innovation and Opportunity Act, lead to a military credential, or carry federal/state government approval. This opens the door for practical, career-focused education to be funded just as efficiently as traditional college.

Other Savings Options Also introduced under the act is the new “TRUMP account,” which may qualify children born between 2025 and 2028 for a $1,000 government contribution, with annual after-tax contributions up to $5,000.

However, unlike a 529, a TRUMP account's assets are transferred directly to the child at age 18. Many may still prefer the flexibility and parental control of a 529, but the option to use both accounts and secure extra government funding adds another layer of planning potential.

Perhaps one of the most exciting new features: If a 529 account has been open for at least 15 years, up to $35,000 can be rolled, subject to annual Roth IRA limits, into a Roth IRA in a child’s name.

This brilliant move allows any leftover college savings to start building long-term, tax-free retirement wealth for your child, giving them a valuable head start.

For families supporting someone with a disability, the ABLE (Achieving a Better Life Experience) account remains a vital tool, now bolstered by the ability to make permanent rollovers from 529 accounts.

Eligible for those whose disability began before age 46 (up from age 26 next year), ABLE accounts protect benefit eligibility while allowing more robust financial support for care, therapy, and independence.

Planning ahead isn’t just about numbers; it’s about opening doors for the next generation.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Workforce Innovation and Opportunity Act

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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For married couples planning their retirement, understanding spousal Social Security benefits can seem like a labyrinth. This week, I’m answering a listener's question about how spouses can maximize their Social Security benefits.

Join me as I break down the key rules, eligibility requirements, and strategies that can help you and your spouse make the most of your benefits over your lifetimes.

Whether you're nearing retirement or still a few years away, I can help you understand primary insurance amounts, full retirement age, and what happens if one spouse claims benefits early.

If you want to ensure you and your loved one have a smart plan for Social Security, this episode offers essential insights and actionable advice.

You will want to hear this episode if you are interested in... * [02:33] Eligible spouses may receive at least half of their partner's full retirement benefit. * [05:25] How much of a spousal benefit will you receive? * [07:42] Strategies to manage spousal benefits. * [09:54] Spousal benefits are reduced by $1 for every $2 earned over the limit. * [10:30] Applying for a spousal benefit.

Understanding Spousal and Survivor Social Security Benefits Spousal benefits exist to ensure that partners in a marriage—including those who spent little or no time in the workforce—can still access a stable retirement income.

If you’re married, you could be eligible to receive up to half of your spouse’s full retirement benefit, commonly referred to as their Primary Insurance Amount (PIA).

This benefit is designed for spouses who don’t qualify for a significant benefit on their own due to having spent less time in the workforce, perhaps because they were caring for the home or raising a family.

At a minimum, every spouse can claim at least 50% of their partner’s PIA, but only if their own benefit is less than this amount. This safety net helps ensure that lower-earning spouses are not left without Social Security support in retirement.

Eligibility Requirements: Who Qualifies and When? To collect a spousal benefit, several conditions must be met:

• The Higher-Earning Spouse Must File: You cannot receive a spousal benefit until your spouse has filed for their own Social Security retirement benefit.
• Minimum Age: The spouse collecting the spousal benefit must be at least 62 years old.
• Marriage Requirements: You must be legally married, though in some states, common law marriages are recognized.
• Timing Matters: To collect the full 50%, you must wait until your own full retirement age, which is generally 67 for those born after 1960. Claiming earlier results in a reduced benefit, often as low as 32.5%-37.5% of your spouse’s PIA if you file at age 62.

For example, in the listener scenario discussed in the episode, the wife began her benefit at 64. Because she started before her own full retirement age, she is only eligible for 37.5% of her husband’s benefit—less than half.

Strategies for Maximizing Spousal Benefits Determining when to claim Social Security is a nuanced decision:

Higher-Earning Spouse Delays, Lower-Earning Spouse Claims Early: Often, the lower-earning spouse might claim their own benefit early, while the higher earner waits until full retirement age or even 70 to claim. This maximizes the survivor benefit for the lower earner, as a widow or widower can "step up" to the deceased spouse’s higher benefit.

Cost of Living Adjustments (COLA): Increases in Social Security benefits due to COLA apply both to individual and spousal benefits. Because COLA is a percentage, it may cause dollar amounts to shift, but it will not change the eligibility for claiming spousal benefits unless there is a significant gap.

Survivor Benefits: If the higher earner passes away, the surviving spouse can "take over" the higher benefit. This makes it advantageous for the higher earner to delay benefits if the couple is concerned about long-term financial security.

How to Apply for Spousal Benefits

Applying is straightforward and can be done online at SSA.gov, by calling the Social Security office, or in person. Be prepared to provide proof of age, a marriage certificate, and possibly your spouse’s work records.

Maximizing Social Security as a couple comes down to knowing the rules, timing your decisions, and using strategic thinking to boost your household’s retirement income.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Benefits for Spouses * Collecting Divorced Social Security Benefits Ep41

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The power of Health Savings Accounts (HSAs) as a tool for both managing health expenses and building your retirement savings is often overlooked.

On this episode, I’m sharing the basics of HSAs, highlighting their triple tax-free advantage, and explaining why they might be one of the best ways to maximize your retirement savings, even compared to more familiar accounts like IRAs and 401(k)s.

I also unpack some important upcoming changes to HSAs thanks to the One Big Beautiful Bill Act, set to take effect in 2026. These changes expand HSA eligibility, especially for those on healthcare exchange plans and direct primary care memberships.

Whether you’re new to HSAs or looking to fine-tune your retirement strategy, my practical tips—like how to track reimbursements, invest your HSA funds wisely, and ensure you’re making the most of every retirement planning opportunity.

You will want to hear this episode if you are interested in... * [00:00] HSA contributions and eligible expenses. * [03:33] HSA eligibility and individual plans. * [07:27] HSA vs. 401(k) savings benefits. * [12:10] HSAs and tax-free retirement reimbursements. * [14:57] HSA contributions and Medicare Timing. * [16:44] Top HSA provider tips.

What is an HSA and Who Qualifies? Health Savings Accounts (HSAs) are often overlooked as powerful retirement planning vehicles. They are tax-advantaged accounts that allow individuals with high deductible health plans (HDHPs) to save and pay for qualified medical expenses.

To be eligible, you must be enrolled in a qualifying HDHP; not all plans make the cut, so check with your insurer or employer to confirm eligibility. For 2025, annual contribution limits are $4,300 for individuals and $8,550 for families, with an additional $1,000 catch-up allowed for those age 55 and over.

Both you and your employer can contribute, but the total combined contribution cannot exceed these limits.

Triple Tax Advantage: The Unique HSA Benefit HSAs are the only accounts that offer a triple tax advantage:

• Pre-tax contributions: Contributions reduce your taxable income for the year, helping you save on federal and (in most cases) state income taxes.
• Tax-free growth: Money in your HSA can be invested, and all interest, dividends, and capital gains are tax-free while in the account.
• Tax-free withdrawals: Withdrawals used for qualified medical expenses remain tax-free, even in retirement.

This makes HSAs one of the most tax-efficient savings vehicles available.

HSAs as a Retirement Strategy While the primary purpose of an HSA is to cover medical expenses, its value extends far beyond that, especially for forward-thinking retirement planners. Many people cover their current medical out-of-pocket expenses with regular cash flow, allowing their HSA investments to grow tax-free for years, even decades.

Upon reaching age 65, you are allowed to withdraw funds for non-medical expenses without penalty (although you will owe income tax, much like a traditional IRA). For medical expenses—including Medicare Part B, D, and Medicare Advantage premiums—withdrawals remain tax-free.

However, Medigap policy premiums are not eligible for tax-free reimbursement from your HSA. A strategic approach can involve tracking your unreimbursed eligible medical expenses over the years.

You can reimburse yourself in retirement with HSA funds for past qualified expenses, effectively turning your HSA into a tax-free retirement “bonus.”

New HSA Legislation on the Horizon Looking ahead to 2026, recent legislative changes will further expand HSA eligibility and flexibility.

Expanded Access for Health Care Exchange Plans:

Before 2026, only certain HDHPs on the healthcare exchange allowed HSA contributions. The One Big Beautiful Bill Act will enable individuals enrolled in any Bronze-tier plan through the health care exchange to qualify for HSA contributions, potentially making over 7 million more people eligible.

Direct Primary Care Compatibility:

Membership in direct primary care plans—where patients pay a monthly fee for enhanced access to primary care services—will now be compatible with HSA eligibility, subject to fee limits ($150/month for individuals, $300/month for families, indexed to inflation). Previously, participating in such plans disqualified individuals from contributing to HSAs.

Common HSA Mistakes and Best Practices Investing your HSA balance (beyond a buffer for immediate health costs) can help you harness the benefits of compound growth over time. Compare fees and investment options among HSA providers to maximize long-term gains.

Be mindful when approaching Medicare eligibility. HSA contributions must stop six months before you enroll in Medicare Part A, due to retroactive coverage.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * IRS List of Covered HSA Expenses

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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The future of Affordable Care Act (Obamacare) subsidies is a pressing issue for retirees and anyone shopping for health insurance on the ACA marketplace.

With the generous subsidies brought by the American Rescue Plan Act set to expire at the end of 2025, I break down exactly how these subsidies work, what changes are coming in 2026, and what that means for your wallet.

We’re talking eligibility thresholds, how income is calculated, why premiums might rise, and—most importantly—shares practical strategies for lowering your adjusted gross income to continue qualifying for subsidies as the rules tighten.

Whether you're planning to retire before age 65 or just want to make sure you're making the most of affordable health options, this episode is packed with actionable advice to help you navigate the shifting health insurance landscape.

Stay tuned to hear how you can prepare before the subsidy cliff arrives.

You will want to hear this episode if you are interested in... * [00:00] ARPA health subsidy set to expire. * [06:48] Special enrollment eligibility criteria. * [09:49] Estimate income for subsidy applications. * [12:50] Retirement subsidy eligibility insights. * [16:38] Managing income for post-2025 health subsidies. * [19:50] Retirement planning and tax strategies.

What Retirees Need to Know About Expiring Subsidies in 2026 For many Americans considering early retirement, one of the pressing concerns is the high cost of health insurance before Medicare eligibility kicks in at age 65.

The Affordable Care Act (ACA), often called Obamacare, has provided critical subsidies—tax credits that reduce monthly health insurance premiums for individuals and families who earn between 100% and 400% of the federal poverty level (FPL).

Thanks to these subsidies, many retirees have found coverage that’s far more affordable than what existed before the ACA. These subsidies aren’t static, however.

Their availability, amount, and eligibility thresholds have changed over time, notably with the enhancements set by the American Rescue Plan Act (ARPA) during the pandemic.

But much of that is set to change again at the end of 2025, and retirees need to understand what’s at stake and how they can prepare.

How ACA Subsidies Work Right Now Currently, the vast majority of people purchasing health insurance through the ACA marketplace receive premium assistance. As of 2024, 91% of the 21 million marketplace participants benefit from some kind of subsidy, according to the Centers for Medicare and Medicaid.

These subsidies are calculated based on household income and size, and for now, thanks to ARPA, even those earning above the previous 400% FPL cutoff have been able to secure relief.

The system works on a sliding scale: the higher your income (relative to the FPL), the lower your subsidy—and vice versa.

For instance, a single retiree in most U.S. states falls under the subsidy limit if their Modified Adjusted Gross Income (MAGI) is less than $60,640 (400% of the 2024 federal poverty level). For a couple, that threshold is $84,600.

The subsidies fill the gap between what the government deems an affordable percentage of your income and the cost of a benchmark “silver” marketplace plan.

The Big Change: Subsidy Cliff Returning in 2026 A crucial point highlighted in episode 267 of Carolyn C-B’s podcast with Ryan Morrissey: the most generous version of these subsidies, courtesy of the ARPA, will sunset at the end of 2025.

We are about to return to a world where if your income exceeds 400% of the FPL by even just $1, you lose all subsidy assistance—an abrupt subsidy cliff. Previously, the ARPA smoothed this out, allowing gradual decreases rather than outright elimination at the cutoff.

That made planning far simpler for retirees managing taxable withdrawals from savings or retirement accounts. Starting in 2026, the sudden loss of these subsidies at the income cliff could mean the difference between a manageable $400 monthly premium and a staggering $2,700+ for a similar plan.

To add to the challenge, insurers anticipate higher premiums in 2026 as healthier enrollees fall off plans due to pricing and subsidy loss.

Planning Strategies for Retirees With the looming subsidy cliff, retirees may need to rethink their approach to generating retirement income. Since eligibility is based on income, not assets, it’s possible to have significant savings but low reportable income, qualifying you for subsidies.

Key strategies include:

• Harvest Extra Income Before 2026: Consider accelerating IRA distributions, realizing capital gains, or selling assets in 2025 while subsidies remain generous.
• Build Up Liquid Assets: By moving assets into cash accounts before retirement, retirees can “live off” cash in years they need to keep income low, preserving subsidy eligibility.
• Utilize Roth and Home Equity Withdrawals: Roth IRA distributions (if held 5 years and owner is 59½ or older) don’t count toward MAGI; home equity lines or reverse mortgages can also provide non-taxable funds.
• Make Use of Pre-tax Contributions: While still working, increase contributions to 401(k)s, IRAs, and HSAs—these lower MAGI and can be a tool for subsidy planning.

Congress may choose to extend or reform these subsidies again, but as of now, retirees should assume the cliff is returning. If you plan to retire—and especially if you’ll rely on individual ACA coverage before age 65—be proactive.

Monitor federal updates, calculate your projected MAGI, and consult a knowledgeable financial advisor for personalized guidance. Open enrollment begins November 1st each year—make sure to check your state’s marketplace for updated premiums and subsidy parameters for 2026.

Planning now can safeguard your health and your finances through a rapidly changing insurance landscape.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * The Affordable Care Act (ACA) * American Rescue Plan Act (ARPA) * Centers for Medicare and Medicaid Services * Access Health CT * Health Insurance Marketplace

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The One Big Beautiful Bill Act affects charitable contributions for retirees and individuals considering their tax strategies.

I’m walking you through three major changes: the restoration of the charitable cash deduction for non-itemizers, new limitations on how much can be deducted for larger contributions, and a cap on itemized deductions for high earners.

Whether you give to charity every year, are planning a large gift, or just want to maximize your tax benefits, I’m sharing practical tips about when and how to make your contributions in light of these updates.

You will want to hear this episode if you are interested in... * [00:00] More about increased standard deductions due to the SALT cap. * [06:09] New charitable donation tax deduction limits starting in 2026. * [10:20] The One Big Beautiful Bill Act limits itemized deductions in the highest tax bracket. * [11:29] Front-load large charitable contributions this year for better tax deductions before a cap starts in 2026.

How the One Big Beautiful Bill Act is Changing Charitable Giving and Deductions There are three pivotal ways the new One Big Beautiful Bill Act (OBBBA) is altering charitable contributions. Whether you’re a casual donor or serious philanthropist, these changes will affect your strategy starting in the next tax year. Here’s what you need to know:

1. Restoration: Above-the-Line Charitable Deductions for Non-Itemizers For years, most taxpayers lost the ability to deduct their charitable contributions unless they itemized deductions—a rare scenario since the 2017 tax act doubled the standard deduction.

Previously, a temporary provision under the CARES Act allowed a small above-the-line charitable deduction for non-itemizers. However, that expired in 2021.

Thanks to section 70424 of the OBBBA, this above-the-line deduction is back, and it’s here to stay—starting in 2026. The new rule permits single filers to deduct up to $1,000 and joint filers up to $2,000 in cash contributions, regardless of whether they itemize.

There are, however, clear conditions:

• Only cash gifts qualify: No clothing drop-offs or appreciated securities—just cash, checks, or debit card donations count.

• Certain charities excluded: Gifts to supporting organizations (“509A3” charities) or donor-advised funds won’t count toward this deduction.

• New Limitations for Itemized Deductions and Carryforwards Historically, taxpayers who itemize could deduct up to 60% of their adjusted gross income (AGI) in cash gifts to public charities, and up to 30% or 20% for gifts of securities or for donations to private charities.

The OBBBA introduces a new wrinkle: starting in 2026, there’s an additional cap—regardless of what percentage of your AGI you donate, your deduction will be reduced by half a percent (0.5%) of your AGI. Here’s how it works:

• Apply the usual AGI percentage limits (60%, 50%, 30%, or 20%) per current IRS rules.
• Subtract half a percent of your AGI from your allowable deduction.

For example, if your AGI is $60,000 and you donate $50,000 in cash, ordinary limits allow a $36,000 deduction. With the new rule, you must subtract $300 (0.5% of $60,000), leaving $35,700 as your deductible amount for the year.

If your donation exceeds the limit, you can still carry forward the extra for five years, but the carry-forward will also be subject to the new cap in future years.

1. Caps on Itemized Deductions for Top Earners For those at the pinnacle of the income scale, in the highest (soon to be 37%) tax bracket, the OBBBA imposes an extra limitation. Starting in 2026, you’ll see a 2% reduction in the tax benefit of your itemized deductions.

That means a $10,000 gift, which may have saved you $3,700 in taxes under the old rules, might now only save $3,500. If you’re planning a substantial charitable contribution and expect to be in the top tax bracket, aim to make your gift in 2025 to maximize tax savings before the cap bites.

Whether you itemize or not, these new caps and restored deductions mean you probably need to take a second look at your charitable plans.

Smart timing—waiting until 2026 for the non-itemizer deduction, and acting before then to maximize deductions for itemizers—can make a significant difference for your taxes and your favorite causes.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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The brand-new “Trump account” is a tax-deferred savings option for American children created by the One Big Beautiful Bill Act.

I break down who’s eligible for up to $1,000 in free government contributions, how these accounts work, and how they stack up against other popular savings vehicles like 529 plans, IRAs, custodial accounts, and regular brokerage accounts.

If you’re a parent or grandparent thinking about the best way to jumpstart your child’s financial future, you’ll want to tune in for my honest comparison of the Trump account's pros, cons, and quirks, plus tips on making the most of these new opportunities.

You will want to hear this episode if you are interested in... * [00:00] Trump accounts for children, including eligibility and benefits, compared to other savings options. * [04:52] Invest in low-cost US index funds for a child's account. * [08:41] 529 accounts offer conservative investment options and potential benefits for education savings. * [11:59] Consider a regular brokerage account instead of a Trump account, especially if it's not for college.

What Parents Need to Know About the New Trump Account Saving for your child’s future can be complicated, and with the introduction of the new “Trump account” via the One Big Beautiful Bill Act, parents have another option to consider.

In a recent episode of the Retire with Ryan podcast, host Ryan Morrissey breaks down the ins and outs of this novel account.

What is the Trump Account? The Trump account, established by the One Big Beautiful Bill Act, is a new type of tax-deferred investment account specifically designed for American children.

It bears similarities to familiar accounts like IRAs and 529s in that all investments inside the Trump account grow tax-deferred, letting parents and children potentially maximize compounding returns.

Eligible children, those born between January 1st, 2025, and December 31st, 2028, are entitled to a $1,000 government contribution just for opening the account, regardless of parental income. That's free money that, when invested early, could grow substantially over time.

How Does the Trump Account Work? Parents (or guardians) can contribute up to $5,000 per child per year (indexed for inflation starting 2027) until the child turns 18, and employers can contribute up to $2,500 annually, also not counted as taxable income for the child.

The account must be opened at investment firms, which are required to limit investment options to low-cost index funds (with expense ratios under 0.10%), such as S&P 500, total stock market, or similar broad-market funds.

Once the child turns 18, they gain full access to all the assets in the account. Investments in the account benefit from tax-deferred growth, and withdrawals are taxed at favorable capital gains rates (15% or 20%) rather than ordinary income rates.

How Do Trump Accounts Compare to Other Savings Options? * Traditional & Roth IRAs:

IRAs, including Roth IRAs, require earned income to contribute, posing a barrier for most children. While Roth IRAs trump Trump accounts for long-term tax benefits (withdrawals are tax-free), children generally can’t access this unless they have income from work. Also, traditional IRAs add tax deductions but are taxed as ordinary income on withdrawal, compared to the Trump account’s capital gains treatment.

• 529 College Savings Plans:

529s are tailored for college expenses, offering tax-free withdrawals for qualified education costs and sometimes state tax deductions. Plus, investment options can become more conservative as your child nears college age, something currently unavailable in Trump accounts, which are stock-only (at least for now). If used for non-educational purposes, 529s face ordinary income tax and penalties, whereas Trump accounts are taxed at capital gains rates for any withdrawal purpose.

• Brokerage & Custodial Accounts (UGMA/UTMA):

A plain taxable brokerage in the parents’ name offers flexibility, letting parents control access and investment options, paying minimal taxes on dividends each year. Custodial accounts shift tax liability to the child but must legally transfer to the child between ages 18 and 25, depending on state laws. Notably, assets in a child’s name weigh more heavily against them on financial aid forms than if held by the parent.

Who Should Consider Opening a Trump Account? If your child will be born between 2025 and 2028, opening a Trump account is almost a no-brainer to snag the free $1,000. But for ongoing contributions, think about your goals:

1. Saving for college? Stick to a 529 plan for tax-free education withdrawals and more investment flexibility.
2. Want to help your child start life with a nest egg for any purpose? Trump accounts work, but remember your child gets full control at 18.
3. Prefer more flexibility or control over when and how your child accesses the funds? Explore regular or custodial brokerage accounts.

The Trump account is an interesting addition to the range of savings vehicles for children, especially thanks to the initial government contribution and low-cost investment options.

Still, its quirks, like the child’s access at 18 and limited investment choices, mean it won’t be a perfect fit for every family. Analyze your family’s needs, long-term goals, and how much control you wish to maintain before making your move.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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The One Big Beautiful Bill Act, signed into law on July 4th, brings about several important tax changes. I’m discussing what these updates mean, especially for retirees, and sharing practical advice on how to take advantage of new deductions and avoid unexpected tax hits.

From permanent adjustments to tax brackets and an increased standard deduction, to special benefits for those aged 65 and older, I cover everything you need to know to optimize your retirement strategy.

Whether you're curious about Social Security taxation, itemized deductions in high-tax states, or planning smart Roth conversions, this episode is packed with insights to help you make informed financial decisions for your golden years.

You will want to hear this episode if you are interested in... * [00:00] An overview of the One Big Beautiful Bill Act (OBBBA). * [06:13] Roth conversion tax implications. * [07:29] Additional deductions for those over 65 increase total deductions. * [11:35] TCJA and SALT deduction changes. * [13:43] Strategies to lower taxable income for retirees.

Key Tax Changes Every Retiree Needs to Know About the One Big Beautiful Bill Act One of the most impactful provisions of the OBBBA is making existing federal income tax brackets permanent. The 2017 TCJA tax brackets —10%, 12%, 22%, 24%, 32%, 35%, and 37% —had been set to expire after 2025, which would have led to higher rates.

The new act not only locks these rates in place but also indexes the brackets for inflation. While there are minor changes in the income thresholds at the lower brackets, the net result is stability for taxpayers, and retirees can now plan with confidence, knowing their marginal tax rates aren’t set for an imminent hike.

Higher Standard Deductions Standard deductions also see positive changes, rising to $15,750 for individuals and $31,500 for married couples filing jointly. Previously, these figures were $15,000 and $30,000, respectively.

With higher deductions, more retirees may find it beneficial to take the standard deduction rather than itemizing, saving time and potentially reducing taxable income.

Extra Deductions for Retirees 65+ Perhaps the most significant impact for retirees: From 2025 through 2028, filers aged 65 and up can claim an additional $6,000 deduction per person.

For couples where both spouses are over 65, that’s a $12,000 boost, on top of the already existing extra deduction for seniors ($2,000 for individuals, $3,200 for couples).

So, if both spouses are over 65 and income is below the required threshold, the combined standard deduction could reach $46,700.

There is a catch, though: this extra deduction phases out as income rises, disappearing entirely for individuals making $175,000 or more and couples earning $225,000 or more in modified adjusted gross income (MAGI).

The deduction is reduced by 6% for every dollar over $75,000 (for individuals) or $150,000 (for couples). For example, if a couple’s MAGI is $200,000, they’d lose $3,000 of the $6,000 deduction per spouse.

Timing IRA distributions or Roth conversions helps you stay under these thresholds and maximize deductions.

Social Security Taxation Although there was political talk about ending Social Security taxation, the OBBBA preserves the old rules. How much of your Social Security benefit is taxable depends on your combined income, still calculated as adjusted gross income plus 50% of your Social Security benefit.

The deduction enhancements may help lower your taxable income, keeping more Social Security benefits untaxed, but there are no direct changes here. Being mindful of when and how you draw taxable income can keep more of your Social Security out of the IRS’s reach.

Itemized Deductions and SALT Cap Changes For high-tax state residents and those with larger itemized deductions, another headline is the increase in the state and local tax (SALT) deduction cap. Temporarily, from now through 2029, the cap rises from $10,000 to as much as $40,000 (with phase-outs for high earners, those over $500,000 in MAGI lose this benefit, and it disappears after $600,000).

This can provide significant relief for homeowners or retirees in states with high property or state income taxes. The mortgage interest deduction rules remain unchanged, and when combined with the higher SALT cap, could make itemizing more attractive for some.

The One Big Beautiful Bill Act creates opportunities and considerations for retirees. Take the time to review your financial plan, explore new deduction limits, and coordinate with tax and financial professionals. Thoughtful adjustment now can lead to years of improved after-tax retirement income.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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This week on the show, we’re discussing the specifics of Required Minimum Distributions (RMDs) as we head into the second half of 2025.

Whether you’re approaching your first year of RMDs or have been taking them for a while, I break down everything you need to know, from when you need to start taking distributions based on your birth year, to how RMDs are calculated, which accounts are affected, and the potential tax consequences for missing a withdrawal.

I’m also sharing eight practical strategies you can use to lower your future RMDs, including asset diversification, Roth conversions, tax-efficient income planning, optimizing Social Security timing, and even using charitable contributions to your advantage.

With real-world examples and actionable tips, this episode is packed with valuable insights for anyone looking to navigate their retirement withdrawals as tax-efficiently as possible.

You will want to hear this episode if you are interested in... * [02:48] Calculating your Required Minimum Distribution. * [05:02] IRA distribution factors & penalties. * [10:40] Retirement tax strategy tips. * [13:35] IRA conversion tax planning. * [15:37] Optimizing social security timing. * [18:48] Tax-efficient investment account strategy.

Smart Strategies to Manage Required Minimum Distributions (RMDs) New rules over the past few years have pushed back when retirees must start taking RMDs. As of today:

• If you were born in 1959 or earlier, your RMDs begin at age 73.
• If you were born in 1960 or later, the threshold moves to age 75.

RMDs apply to traditional IRAs, rollover IRAs, SEP IRAs, SIMPLE IRAs, and most employer-sponsored plans, including 401(k)s and 403(b)s. Importantly, Roth IRAs are not subject to these mandatory withdrawals during the owner’s lifetime, providing an attractive planning opportunity.

How RMDs Are Calculated Your annual RMD is determined by dividing the prior year’s December 31 retirement account balance by a life expectancy factor from IRS tables.

Most people use the IRS Uniform Lifetime Table.

If your spouse is more than 10 years younger, you get a slightly lower withdrawal requirement by using the Joint Life Expectancy Table.

For example, if you are 73 with a $500,000 IRA, and the IRS factor is 26.5, your RMD would be $18,868 for that year. If you miss your RMD, penalties can be steep, 25% of the amount not withdrawn, though if corrected within two years, the penalty drops to 10%.

RMDs are generally taxed as ordinary income. If your IRA contains after-tax contributions, those aren’t taxed again, but careful tracking is essential. The key is smart, proactive planning. RMDs increase your total taxable income, which can impact not just your IRS bill, but also Medicare premiums (thanks to the “IRMAA” surcharge) and eligibility for certain state tax breaks.

Eight Strategies to Lower RMD Impact Here are several tactics to help retirees minimize RMDs’ sting and keep more of their wealth working for them:

1. Diversify Account Types Early

Don’t keep all retirement savings in pre-tax accounts. Consider a mix of pre-tax, Roth, and taxable brokerage accounts so you have flexibility in retirement to optimize withdrawals for tax purposes.

1. Build an Optimized Retirement Income Plan

Work with a financial advisor or CPA to design an intentional strategy for sourcing retirement income. With careful planning, you can potentially lower how much tax you’ll owe and avoid unwelcome surprises.

1. Do Roth Conversions When Taxes Are Low

If you retire before collecting Social Security (and RMDs), you might have years of low taxable income, prime time to convert part of your traditional IRA to a Roth IRA at a low tax rate. Once in the Roth, future qualified withdrawals are tax-free.

1. Delay Social Security for Strategic Reasons

Delaying Social Security not only increases your monthly benefit but also gives you more low-income years for Roth conversions, thus reducing future RMDs.

1. Consider Working Longer

If you continue working past RMD age and participate in your employer’s retirement plan, you may be able to delay RMDs from that plan until you retire (as long as you don’t own more than 5% of the company).

1. Aggregate and Simplify Accounts

Roll over old 401(k) accounts into a single IRA if eligible. It’s easier to track, calculate, and satisfy RMDs, reducing the risk of costly missteps.

1. Optimize Asset Location

Hold faster-growing investments (like stocks) in taxable accounts and slower-growing ones (like bonds) in IRAs. This helps slow the growth of your RMD-producing accounts, keeping future required withdrawals smaller.

1. Use Qualified Charitable Distributions (QCDs)

Once you’re RMD-eligible, you can send up to $100,000 per year directly from your IRA to charity. It will count toward your RMD but won’t be taxed, potentially a win-win for you and your favorite causes.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Retirement topics - Required minimum distributions (RMDs) | Internal Revenue Service

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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With the recent passage of the Inflation Reduction Act, also known as the Big Beautiful Bill, significant changes are coming to both solar panel and electric vehicle tax credits.

I break down what these changes mean, how they can affect your savings, and what steps you might want to take before these credits disappear.

From figuring out if solar panels make sense for your home to understanding how electric vehicle credits work (and when they’re expiring), this episode is packed with actionable insights and tips, especially for those planning for retirement or looking to cut down on monthly expenses.

You will want to hear this episode if you are interested in... * [01:31] Residential solar panels are popular for reducing electric bills, offering significant savings, especially for retirees. * [05:23] Solar tax credits are expiring soon. * [09:07] Solar investments offset electric costs and protect against future rate hikes, beneficial long term. * [11:28] Costs and break-even of electric cars. * [13:08] Act now if you want to take advantage of solar tax credits.

The Solar Panel Tax Credit is a Fading Opportunity One of the biggest draws for homeowners considering solar panels has been the significant federal tax credit, currently set at 30% of the total installation cost. This credit has made solar an appealing investment for many, offering a direct dollar-for-dollar reduction in the taxes owed.

In high-cost electricity states like Connecticut, this can mean hundreds of dollars in monthly savings on your utility bill. However, the Big Beautiful Bill brings an unfortunate change: the solar tax credit is set to disappear at the end of this year.

That means if you’ve been thinking about going solar, now is the time to act. If you don’t install solar panels before the deadline could add years to your payback period, undermining the investment’s attractiveness and putting it out of reach for many.

Energy Savings of Battery Storage and EVs While solar panels are great for energy savings, adding a battery storage system further enhances their benefits. A battery can store excess solar power for use during peak times or outages, which is particularly helpful for retirees planning to stay in their homes for decades and looking to insulate themselves from rising electricity rates.

Electric vehicles (EVs) also offer savings for households with high transportation costs. The federal EV tax credit, worth up to $7,500 on new cars and up to $4,000 for used EVs, has also been a strong motivator for those considering a switch from gas-powered vehicles.

The Big Beautiful Bill also changes the EV tax credit, which will disappear even sooner than the solar incentive. Although there are several important limitations: only vehicles assembled in North America qualify, and there’s a cap on purchase price ($55,000 for sedans, $80,000 for SUVs).

Income limitations apply as well; single filers must earn less than $150,000 ($300,000 for married couples) to claim the new vehicle credit. The used EV credit comes with lower income caps ($75,000 for singles, $150,000 for couples) and is worth up to $4,000.

Should You Act Now? Before making any big investment, think about the following:

• Timing: Both solar and EV credits will soon vanish. If you want the tax break, don’t wait.
• Financial Health: The best return comes from paying cash, not financing or tapping retirement accounts.
• Long-term Plans: Solar and EV investments make the most sense if you plan to stay in your home and keep your vehicle for years to come.

Manufacturers may eventually lower prices as credits disappear, but there are no guarantees.

With energy incentives set to change dramatically, the window to maximize savings is closing fast. For homeowners and future retirees, the time to act is now, whether that means installing solar, purchasing an EV, or both.

Consult with a financial advisor to consider how these decisions fit into your overall retirement and financial readiness strategy.

The Treasury Department’s official list of eligible vehicles shows that the cars, trucks, minivans, and SUVs listed below qualify for a full $7,500 tax credit if placed in service between January 1 and September 30 of 2025. In some cases, only certain trim levels or model years qualify. More vehicles may be added to or removed from this list as manufacturers continue to submit information on whether their vehicles are eligible. * Acura ZDX EV (2024-2025 model years; MSRP $80,000 or below) * Cadillac Lyriq (2024-2025 model years; MSRP $80,000 or below) * Cadillac Optiq (2025 model year; MSRP $80,000 or below) * Cadillac Vistiq (2026 model year; MSRP $80,000 or below) * Chevrolet Blazer EV (2024-2026 model years; MSRP $80,000 or below) * Chevrolet Equinox EV (2024-2026 model years; MSRP $80,000 or below) * Chevrolet Silverado EV (2025-2026 model years; MSRP $80,000 or below) * Chrysler Pacifica Hybrid PHEV (2024-2025 model years; MSRP $80,000 or below) * Ford F-150 Lightning (2024-2025 model years for Flash trim, 2023-2025 model years for Lariat and XLT trims; MSRP $80,000 or below) * Genesis Electrified GV70 (2026 model year; MSRP $80,000 or below) * Honda Prologue (2024-2025 model years; MSRP $80,000 or below) * Hyundai Ioniq 5 (2025 model year; MSRP $80,000 or below) * Hyundai Ioniq 9 (2026 model year; MSRP $80,000 or below) * Jeep Wagoneer S (2025 model year; MSRP $80,000 or below) * Kia EV6 (2026 model year; MSRP $80,000 or below) * Kia EV9 (2026 model year; MSRP $80,000 or below) * Tesla Cybertruck (2025 model year for Dual Motor, Long Range, and Single Motor trims; MSRP $80,000 or below) * Tesla Model 3 (2025 model year for Long Range AWD, Long Range RWD, and Performance trims; MSRP $55,000 or below) * Tesla Model X (2025 model year for AWD trim; MSRP $80,000 or below) * Tesla Model Y (2025-2026 model years for Long Range AWD and Long Range RWD trims; 2025 model year for Performance trims; MSRP $80,000 or below)

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

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This week, I’m addressing a listener's question: Should you collect Social Security at age 62 and invest the money, or wait until your full retirement age, or even age 70, for a bigger benefit?

I break down the math and the risks, weighing the advantages of guaranteed annual increases and cost-of-living adjustments against the potential (and pitfalls) of stock market returns.

I also explain key rules, such as the earnings limit for early filers, tax implications, and who might benefit from collecting early.

Whether you’re eager to take Social Security as soon as you can or are considering holding out for a larger payment, listen in for the practical insights you need to make a smart decision for your financial future.

You will want to hear this episode if you are interested in... * [03:27] Earnings limits on collecting your Social Security benefits. * [05:29] Where to invest to potentially achieve more than 6% return. * [07:37] Consider delaying Social Security benefits, but weigh the risk of investing against guaranteed returns. * [12:39] Collect Social Security early to invest if you don't need it for living expenses and want to leave a larger inheritance. * [13:42] Wait to collect Social Security until full retirement age or 70, especially if dependent on it for income or if you're the higher-earning spouse, to maximize benefits.

Social Security’s Built-In Return for Waiting First, it’s essential to understand how Social Security rewards patience for those born in 1960 or later; claiming at 62 results in a significant reduction, down to just 70% of your full retirement benefit.

Each year you wait between 62 and your full retirement age (67 for most), your benefit grows by about 6% per year. From 67 to 70, that growth jumps to 8% per year.

This increase is essentially a “risk-free” return, as it's guaranteed by the government, not subject to market swings.

The Pitfalls of Early Claiming and Investing It’s not uncommon to hear the argument that you could claim benefits early, invest the money (usually in the stock market), and potentially earn more over time. But this approach is riskier than you might realize.

• Market Volatility: Historically, a diversified stock market fund (like a total market index fund) has surpassed 6% annual returns over long periods, but not always. Roughly 10% of five-year periods since 1926 have lost money. That means there’s a real chance you'll underperform Social Security’s consistent increase, or even lose principal.
• Taxes: Investment returns, especially dividends, are taxable, which further erodes your effective return. Social Security also may become partially taxable depending on your income, especially if you claim while still working.
• Earnings Limits: If you’re working between 62 and your full retirement age, you face earnings limits. For example, in 2023, you can only earn $23,400 before your benefit is reduced, making early claiming unattractive for those who don’t plan to retire immediately.

The Power of Cost-of-Living Adjustments (COLAs) Over the last ten years, annual cost-of-living adjustments (COLAs) have averaged 2.6% per year. COLAs are applied to your current benefit, so the longer you wait and the higher your starting base, the more you benefit from these increases.

Over the decades, this compounding effect can create a significant gap in monthly income between early and later claimers.

That means, to truly keep up with waiting, you’d need not just to match the 6-8% annual increases but also beat COLAs, meaning your investments would need to return nearly 9% per year, consistently, and after taxes.

Who Might Consider Claiming Early? While waiting typically yields the best results for most retirees, there are exceptions. Early claiming might make sense if:

• You have significant wealth and don’t need Social Security to live (your goal is to leave a bequest for heirs).
• You have health issues and a below-average life expectancy.
• You’re single and want to maximize your estate since Social Security benefits don’t pass to non-spouses.

However, for the majority, especially married people or those relying on Social Security as a main income source, waiting yields more lifetime income and a more robust safety net for both spouses.

Timing your Social Security claim isn’t about grabbing the first check you can; it's about weighing guaranteed growth against market risk, tax implications, earnings limits, and your own longevity and needs.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * State Street's Total Stock Market Index Fund

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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I’m exploring a common dilemma for anyone coming into a lump sum of money, whether from an inheritance, the sale of a business, or another windfall: Should you invest in a traditional brokerage account or opt for an annuity?

On this week's episode, I discuss the key differences between annuities and brokerage accounts, highlighting the five major pitfalls of annuities that are often overlooked.

You'll learn why transparency, flexibility, and tax efficiency make brokerage accounts a better fit for many investors, especially those seeking to beat inflation and maintain control of their funds.

You will want to hear this episode if you are interested in... * [06:12] Annuities have capped returns and may not keep up with inflation, making brokerage accounts a better investment for retirees. * [07:59] Fixed annuities vs. inflation risks. * [11:21] Brokerage accounts offer easy, penalty-free liquidity for investment withdrawal. * [14:56] Brokerage accounts offer tax advantages, such as zero percent tax on long-term investments and flexibility to access funds at any age. * [19:55] Traditional brokerage accounts offer transparency, ease of understanding, and no hidden fees, providing clear valuations and peace of mind. * [20:54] Potential conflicts of interest associated with high commissions given to advisors who sell annuities.

Understanding the Five Key Advantages of Brokerage Accounts for Lump Sum Investors Inflation Protection A primary concern for retirees is ensuring their income grows at least as fast as inflation. Fixed annuities, which guarantee a steady interest rate, sound appealing in their promise of stability, but these tend to pay rates (typically 4-6% as of now) that may barely keep pace with rising costs. If inflation spikes, the real value of your money could erode.

Contrast this with long-term investing via a brokerage account. If you were to invest in a broad index fund tracking, say, the S&P 500, you’d historically average about a 10% annual return since 1957.

Even accounting for average inflation (let’s say 3%), you’re left with a meaningful net gain. Over decades, this growth can make a significant difference, allowing your income and nest egg to grow, not just hold steady.

Easy Access to Your Money Life is unpredictable. You might need to access your savings for a sudden expense, a home repair, a medical event, or a business opportunity. With annuities, most contracts enforce a “surrender period” during which you’ll pay penalties (sometimes starting at 7% and declining over many years) for early withdrawals above a limited free amount (typically 10% per year). Paperwork and delays are another downside.

Brokerage accounts, on the other hand, offer quick and penalty-free access. Whether you need all or just part of your funds, they’re typically available within a couple of business days. You’ll pay taxes on any gains, sure, but you’ll sidestep surrender charges and bureaucratic hurdles.

Potentially Lower Taxes With Brokerage Accounts Tax treatment is often overlooked but can have a big impact on your bottom line. Annuitized payouts and withdrawals from annuities are taxed at ordinary income rates, with gains coming out first (LIFO: last in, first out).

That can mean higher taxes for many, especially if you’re in a modest or high tax bracket. With a brokerage account, long-term investment gains are generally taxed at lower capital gains rates (15% for most, and sometimes 0% for those in the lower brackets).

Plus, if you inherit a brokerage account, most investments receive a “step up” in basis, the new tax cost becomes the value at the decedent’s death, potentially eliminating decades of capital gains tax if sold immediately.

Simplicity and Transparency Annuities come with layers of complexity, including various types (fixed, indexed, and variable), confusing rider add-ons, differing fees, and ever-changing product features. Even professionals can struggle to keep up!

Brokerage accounts, by contrast, are simple and transparent. You get a clear statement showing exactly what you own, its value, and the associated fees, which are commonly lower than those inside annuity products. No hidden surrender charges or high ongoing costs.

Avoiding Aggressive Sales Tactics and Conflicts of Interest Annuities are lucrative for the agents who sell them, with commissions sometimes soaring to 7%. This can create an inherent conflict of interest, particularly for seniors who might feel pressured into buying.

Choosing a low-fee brokerage account, especially with the guidance of a fiduciary, fee-only financial advisor, can help you avoid these conflicts. You retain control, minimize costs, and benefit from unbiased advice.

Annuities do have a place for certain ultra-conservative investors who value guarantees above all else. However, for most people, especially those seeking growth, flexibility, and transparency, a brokerage account is often the safer and smarter long-term choice.

If you’re unsure about your unique situation, consider consulting a fee-only advisor who will put your interests first and steer clear of high-commission sales pitches.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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From the truths about making large purchases in retirement to whether you really need to pay off your mortgage before you stop working, I’m sharing years of financial expertise to challenge a few retirement myths so you can make balanced, informed decisions. We’re talking strategies for charitable giving, clearing up misconceptions about reverse mortgages, and explaining why inflation may be your biggest risk in retirement.

If you’re looking for practical advice on enjoying your savings while still planning for the long run, or if you want to protect yourself from financial scams and fraud, this episode is full of actionable tips to build your financial confidence for the years ahead.

You will want to hear this episode if you are interested in... * [02:02] Leaving money to charity after death reduces estate value for taxes, but offers no immediate tax deduction. * [04:17] Qualified charitable distributions and large donations can reduce taxable income, but are only deductible if you itemize. * [08:11] Don't rush to pay low-interest mortgages; invest instead, as returns can potentially exceed mortgage interest rates. * [13:03] Balance stocks with bonds and cash to manage risk and volatility. * [10:10] Reverse mortgages can be a great idea in certain circumstances.

Navigating the Maze of Retirement Myths Retirement often brings a sense of relief; finally, you get to enjoy the fruits of your labor! However, it’s also a period rife with uncertainty, especially when so much advice and information clash or seem outdated. In this episode, I’m tackling six of the most persistent myths retirees face.

1. Myth: Leaving Money to Charity Is Best Done After Death Many retirees assume that bequeathing assets to a charity upon passing is the most virtuous and tax-efficient way to give back. While this is always an option, leaving money to charity at death doesn’t net you a tax deduction; it simply reduces the size of your taxable estate. For the vast majority, it’s more impactful to consider gifting while alive.

There are several ways to make charitable giving work for you, including:

• Qualified Charitable Distributions (QCDs): Donate part or all of your required minimum distribution directly from your IRA, reducing your taxable income.
• Cash Donations: If you itemize deductions, you can deduct cash gifts, potentially even enough to tip you into itemizing territory if the gift is large.

• Gifting Appreciated Assets: Donating highly appreciated stocks or real estate can minimize capital gains and offer you an income stream.

• Myth: Large Purchases Are Off-Limits in Retirement Worried that buying a boat or funding a dream trip will doom your financial future? It’s a myth that large expenditures are always ill-advised. With a solid withdrawal strategy, say, 5% of a $2 million portfolio, making a one-time, reasonable purchase might slightly reduce your yearly income, but if balanced against market growth and overall planning, it’s rarely catastrophic.

Thoughtful, planned spending helps you enjoy retirement, so don’t deprive yourself unnecessarily!

1. Myth: The Less You Spend, the Better Many retirees become excessively frugal, reluctant to draw down the savings they worked so hard to accumulate. But can’t take your money with you. While it’s wise to have a budget and withdraw at a sustainable rate, being too conservative may rob you of life’s joys, like travel, hobbies, or supporting family, while you’re healthy enough to enjoy them. The key is balance: know your withdrawal rate and revisit your plan regularly.

2. Myth: You Must Pay Off Your Mortgage Before Retiring It’s comforting to be debt-free, but urgently paying off a low-interest mortgage could backfire. If your mortgage rate is 5% or lower and your investments are earning more, you could be better off keeping the mortgage and leaving your assets to grow. Plus, withdrawing large chunks from retirement accounts to pay down a mortgage could trigger higher taxes or Medicare premiums and leave you with less liquidity. Carrying a modest mortgage into retirement is not a financial failure; it may be a savvy move.

3. Myth: Reverse Mortgages Should Be Avoided Reverse mortgages have a bad rap, often viewed as predatory or risky. While there were issues in the past, today’s products are much more regulated. If you’re 62 or older, a reverse mortgage can provide tax-free cash, letting you access home equity without moving. It’s especially valuable if much of your net worth is tied up in your home, or unexpected expenses crop up. Investigate carefully, but don’t dismiss this option out of hand.

4. Myth: A Market Crash Is the Greatest Retirement Risk Market volatility grabs headlines, but inflation and the risk of outliving your money are bigger threats. The right asset allocation, mixing stocks for growth with bonds and cash for stability, is essential. Yet, don’t forget about inflation: stocks have historically been the best hedge. Also, financial scams are a growing risk; safeguard your accounts with strong passwords and authentication.

By understanding the realities behind these common misconceptions, you can build a strategy that sustains not just your finances but your lifestyle and peace of mind.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Charles Schwab * Understanding Reverse Mortgages: Unlocking Home Equity for Retirement Income with Mitch Cooper, #242

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Building on last week’s discussion about why rolling over your old 401(k) into an IRA could be a smart move, this episode flips the script. It explores seven compelling reasons you might want to leave your 401(k) with your previous employer instead.

I break down factors like fees, company stock advantages, penalty-free withdrawals, legal protections, and unique investment options that could all influence your decision.

If you're approaching retirement or just planning your next career move, this episode is packed with insights to help you make the best choices for your financial future.

You will want to hear this episode if you are interested in... * [04:12] Leave company stock in 401k to use net unrealized depreciation, potentially saving on taxes via long-term capital gains. * [08:55] Consider keeping company stock in an old 401(k) to avoid taxes and penalties if under 59.5 years. * [10:01] IRA withdrawal exemptions and strategies. * [16:01] Consider keeping your old 401 (k) for potential loan access, but check if your provider permits non-employee loans. * [17:50] Deferring 401(k) distributions explained.

When to Leave Your Old 401(k) With Your Previous Employer Changing jobs often means making quick decisions about retirement savings. While rolling over your old 401(k) into an IRA is a common choice, there are significant advantages to leaving it where it is. This week, I’m discussing the situations when maintaining your previous employer’s retirement plan is advantageous.

1. Potential for Lower Fees If you worked for a large organization, their 401(k) plan might offer exceptionally low administrative and investment fees, especially if they’ve chosen robust menus with index fund options.

While IRA costs have dropped due to strong competition among major financial institutions like Schwab, Fidelity, and Vanguard, some large employer plans still offer a lower cost.

Always compare fees before making a move; sometimes, your old 401(k) will be the most cost-effective option available.

1. Tax Benefits of Company Stock (Net Unrealized Appreciation) Do you have significant company stock in your 401(k)? You could benefit from the unique tax break called Net Unrealized Appreciation (NUA).

This allows you to pay lower long-term capital gains rates on your stock’s growth instead of higher ordinary income rates. However, to take advantage of NUA, you must carefully roll out your stock and be mindful of any 10% penalty if you’re under 59½.

Know your stock’s cost basis and consult with a tax professional to determine if waiting is best, especially if your cost basis is higher.

1. Penalty-Free Access Between Age 55 and 59½ Left your job between 55 and 59½? Here’s a little-known benefit: you can tap your old 401(k) penalty-free before age 59½. If you roll the balance into an IRA, that door closes, unless you qualify for rare exceptions.

This rule can be crucial if you need those funds to bridge the gap to retirement, so consider leaving at least part of your balance in the plan until you turn 59½.

1. Enhanced Creditor Protection Federal law (ERISA) offers 401(k) plans strong protection from creditors and judgments, even in bankruptcy. While rollover IRAs are also protected under federal and many state laws, the details can get complicated.

Certain states may limit IRA protections, so it’s wise to investigate your state’s rules. Segmenting rollover IRAs from contributory IRAs can also help simplify tracking and protection.

1. Access to Stable Value Funds Some 401(k) plans offer stable value funds, a low-risk investment choice that often comes with a guaranteed minimum rate of return. While money market funds are currently paying more, that could change if interest rates drop.

In lower-rate environments, stable value funds could offer an edge and a safe harbor for your retirement assets.

1. Possible Loan Availability Need to borrow against your retirement savings? Some plans allow you to take a loan from your 401(k), even after leaving the company. However, this isn’t universal, since loan repayments are usually tied to payroll.

Check with your plan administrator to see if this benefit applies; if it does, it could be an important safety net.

1. Required Minimum Distribution (RMD) Deferral if Still Working If you work past age 73, keeping your funds in a 401(k) with your current employer lets you defer required minimum distributions (RMDs). That’s not the case with IRAs.

Consolidating old 401(k)s into your current plan can simplify RMD timing and let your funds grow tax-deferred a bit longer.

Make an Informed Move Rolling over your 401(k) may seem automatic, but there are times when staying put is the better choice. Carefully assess fees, tax implications, creditor protections, and your unique needs.

Most importantly, consider working with a fiduciary, fee-only financial advisor who understands your entire financial picture.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Charles Schwab * Fidelity * Vanguard

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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In today's episode, I’m diving into a topic that’s top-of-mind for anyone who’s switched jobs: what should you do with your old 401(k) plan? I discuss five key reasons why moving them into an IRA could simplify your financial life, from consolidating accounts for better control to gaining access to a broader range of investment options, reducing fees, optimizing Roth and after-tax funds, and making it easier to work with a financial advisor.

Whether you’re planning your next career step or just want to make your retirement savings work harder for you, this episode is packed with practical advice to guide your decision. Stick around until the end, and don’t forget to tune in next week when I cover situations where rolling over your 401(k) might not be the best choice!

You will want to hear this episode if you are interested in... * [00:00] Vested retirement funds offer four options: keep them in the plan, or withdraw and pay taxes * [04:46] Rolling over a 401(k) to an IRA offers more control and access to your retirement funds, preventing forgotten accounts as you change jobs * [06:41] Consolidate investments for simplicity and control; update records if keeping old retirement accounts * [12:05] Convert Roth contributions to a Roth IRA to start the five-year period and ensure future gains grow tax-free, especially for after-tax funds in a 401(k) without in-plan Roth conversions * [13:13] Rollovers to an IRA can facilitate Roth conversions and allow financial advisors to manage retirement accounts.

Consolidate Old 401ks for a Smoother Future When you change jobs, it's important not to leave your old retirement accounts behind. For many Americans, the primary vehicle for saving for retirement is their employer-sponsored 401(k) plan. But what should you do with that 401(k) once you’ve moved on?

Rolling it into an Individual Retirement Account (IRA) may be the smart move, offering control, flexibility, potential cost savings, and tax advantages. Let’s walk through five compelling reasons why a 401(k) rollover into an IRA might make sense for you.

1. Greater Control and Account Consolidation One of the biggest headaches of changing jobs multiple times is having various retirement accounts scattered across different institutions. Not only is it difficult to keep track of these accounts, but there’s the risk that you might forget about them entirely. By rolling old 401(k)s into a single IRA, you consolidate your investments, making it easier to manage and monitor your retirement savings.

With all your funds in one place, you’ll have more control over your asset allocation and will be better positioned to implement a cohesive investment strategy. Additionally, consolidating accounts reduces the administrative burden of managing multiple logins and statements.

1. Expanded Investment Choices and Flexibility Most employer-sponsored 401(k) plans offer a fairly limited menu of investment options, typically ranging from a dozen to twenty funds. These may or may not align with your preferred asset allocation strategy, and some plans are more limited than others.

By rolling over your 401(k) into an IRA at a major discount broker like Schwab, Fidelity, or Vanguard, you unlock a much broader universe of investment possibilities, mutual funds, exchange-traded funds (ETFs), stocks, bonds, CDs, and more.

This flexibility lets you fine-tune your portfolio, properly diversify, and better tailor your investments to your risk profile and retirement timeline.

1. Potential for Lower Investment Costs 401(k) plans, particularly those from smaller employers, often feature higher administrative and fund expenses, sometimes reaching 1% or more in annual fees. These extra costs chip away at your investment returns over time.

With an IRA, especially when investing in low-cost ETFs or mutual funds, you can often significantly reduce the expense ratios you pay. Over decades, even a modest reduction in annual fees can translate into thousands more in retirement savings due to the power of compounding.

1. Managing Roth and After-Tax Contributions Many 401(k) plans now offer a designated Roth component as well as avenues for after-tax contributions. When you roll over your account, this is a valuable opportunity to ensure your Roth and after-tax money are treated with optimal tax efficiency. For example, rolling Roth 401(k) funds into a Roth IRA starts the five-year clock for tax-free withdrawals on earnings, which is critical for planning your retirement withdrawals.

Additionally, an IRA rollover can be structured to split after-tax contributions into a Roth IRA, giving those funds tax-free growth potential rather than the more limited advantages offered inside the 401(k).

1. Access to Professional Management If you want professional help managing your retirement investments and financial planning, rolling your assets into an IRA is almost always a prerequisite. Advisors generally cannot manage assets held within a former employer's 401(k) platform, but with funds consolidated in an IRA at a major custodian, they can actively manage your investments, make ongoing adjustments, and assist with tax planning and distributions as you transition into retirement.

Assess Your Situation Before Moving While rolling over your old 401(k) to an IRA offers considerable advantages, it’s not always the perfect solution for everyone. Each situation is unique, and certain protections or features (such as early withdrawal options or creditor protections) may be stronger inside a 401(k) for some individuals.

Be sure to review your specific circumstances carefully, ideally, with a trusted financial advisor, before making any big moves. A well-considered rollover could make your road to retirement much smoother, giving you more control, lower costs, and better investment options along the way.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Schwab * Fidelity * Vanguard

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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This week on the show, I’m joined in person by investment veteran Michael Sheldon, who brings over 26 years of experience in the financial services industry. We dig into essential strategies for investing as you approach and enter retirement, covering asset allocation, diversification, income planning, and how to handle inevitable market volatility.

Whether you’re a pre-retiree, a recent retiree, or just looking to strengthen your investment approach, Michael offers some great actionable insights designed to help you build a resilient portfolio and stay on track toward your long-term financial goals.

You will want to hear this episode if you are interested in... * [04:52] Portfolio risk should change as you age, becoming more conservative in retirement. * [09:34] Why US large-cap stocks have outperformed recently. * [14:13] Pros and cons of target date funds, including fees, asset allocation, and international exposure. * [16:07] Michael warns against chasing high-yield dividend stocks. * [18:51] Private equity/real estate and understanding the liquidity and risks. * [31:15] Building income streams, reducing volatility, and portfolio standard deviation as you near retirement. * [43:18] Why maintaining discipline through corrections is key to investment success.

Strategies to Weather Market Ups and Downs Any successful investment journey begins with a clear financial plan. Michael emphasizes the importance of understanding your spending needs in retirement. This process often starts with creating a detailed budget. A thorough assessment of current and expected future expenses helps determine the appropriate rate of return necessary to achieve your retirement goals.

Once you have a handle on your budget, you can set a target allocation that aligns your risk tolerance with your required investment returns. Your personal plan should factor in not only your goals and time horizon, but also your comfort level with market volatility.

Balancing Risk and Opportunity As you move closer to retirement, adjusting your asset allocation becomes increasingly important. Younger investors can often afford to be more aggressive, allocating a larger portion (often 70% - 100%) to equities, since they have time to recover from market downturns. However, those approaching or in retirement generally benefit from more conservative portfolios, emphasizing capital preservation.

A common rule of thumb discussed was to maintain 3 - 5 years of living expenses in cash or short-term bonds. This buffer allows retirees to weather market downturns without selling equities at a loss. Still, every investor is different. Some retirees, especially those with higher risk tolerance or substantial resources, may maintain large allocations to equities. The key is to structure your portfolio to ensure you can meet your expenses even during extended market declines.

Don’t Chase Home Runs The conversation stressed the dangers of seeking the next “big winner” stock. Instead, the focus should be on diversification, owning a broad mix of asset classes and geographies. While the past decade has seen U.S. large-cap growth stocks outperform other areas, this may not always be the case. International markets, small-cap stocks, and value stocks each tend to outperform at different points in the economic cycle.

Proper diversification can help reduce risk and smooth out returns, preventing the common mistake of buying high and selling low. It’s wise to avoid concentrating your portfolio too heavily in a single sector, country, or investment style.

Beyond Chasing High Dividends One of the big myths in retirement investing is the need to load up on high-dividend-paying stocks for income. Michael cautioned against focusing solely on high yields, as these companies might carry more risk or have unsustainable business models. Instead, look for companies with a solid history of gradually increasing their dividends, which indicates healthy cash flows and business stability.

Active vs. Passive Management and Cost Considerations The debate between active and passive management continues. For broad U.S. markets, low-cost index funds and ETFs have outperformed most active managers over time, thanks to lower costs and automatic portfolio updates.

Increasingly, investors are turning to ETFs for their tax efficiency, tradability, and lower fees compared to traditional mutual funds. As with any investment, understanding fees and their impact on long-term returns is vital.

The Power of Discipline Finally, Michael shares a valuable perspective on market volatility. Historically, the S&P 500 has experienced average intra-year declines of over 14%, yet finished positive in 76% of years since 1980. Volatility is normal, and patient investors are rewarded for staying invested.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Vanguard * Barron’s * TheStreet.com * Blackstone and Starwood * iShares * Invesco * Morningstar * JP Morgan’s Guide to the Markets * Innovator Funds

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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On this week’s episode, I’m discussing the Federal Employees Retirement System, or FERS, a program that covers nearly all civilian federal workers. If you’re a federal employee curious about when you’re eligible to retire, how your pension is calculated, what the Thrift Savings Plan offers, or how special early retirement and survivor benefits work, this episode is your go-to resource.

We’re breaking down the three key components of FERS: your Basic Benefit Plan (a pension), Social Security, and the Thrift Savings Plan, as well as important details like cost-of-living adjustments and tax considerations. Whether you’re just starting your federal career or planning your retirement right now, you’ll get practical insights to help you make the most of your retirement benefits.

You will want to hear this episode if you are interested in... * [00:00] I share an overview of how FERS provides federal employees' retirement benefits. * [05:02] Your basic benefit plan is calculated using the highest average salary over three consecutive years, often the final service years. * [09:52] Federal employees retiring at 55-57 receive a FERS supplement until age 62, calculated by years of service/40 times the estimated Social Security benefit. * [11:41] Benefits include cost-of-living adjustments for those 62+ or in special roles, aligned with consumer price index increases. * [14:52] FERS survivor benefits are available if the deceased had at least 10 years of service.

What is FERS, and Who Does It Cover? As one of the most significant employment sectors in the United States, the federal government supports over 3 million workers, the majority of whom participate in the Federal Employees Retirement System (FERS). If you're a federal employee, understanding FERS is vital to planning a comfortable and financially secure retirement.

The Federal Employees Retirement System (FERS) is the primary retirement plan for U.S. civilian federal employees hired after 1983. According to the Office of Personnel Management, FERS provides retirement income from three sources:

• 1. The Basic Benefit Plan (a pension).
• 1. Social Security.
• 1. The Thrift Savings Plan (TSP), similar to a private sector 401(k).

FERS covers different federal professionals, from law enforcement and firefighters to engineers, analysts, and other administrative roles. Special provisions exist for high-risk positions such as air traffic controllers and certain law enforcement officers, which affect their benefit calculations and retirement age.

When Can You Retire Under FERS? Retirement eligibility under FERS primarily depends on age and years of credible service. The key term here is Minimum Retirement Age (MRA), which varies based on birth year, from 55 for those born before 1948 to 57 for workers born in 1970 or later.

Retirement options include:

• Age 62 with 5 years of service.
• Age 60 with 20 years of service.
• MRA with 30 years of service.
• MRA with 10 years of service (MRA+10), though benefits are reduced by 5% for each year under age 62.

Early retirement is available in some situations, such as involuntary separations or major agency reorganizations. In those cases, eligibility can be as early as age 50 with 20 years of service or at any age with 25 years of service.

Calculating Your Basic Pension Benefit The FERS pension is calculated using your “high-3” average salary, the highest three consecutive years of basic pay, usually your last three years. The formula generally provides 1% of your high-3 salary for each year of government service (increases to 1.1% if you retire at 62 or older with 20+ years). Special categories, like federal law enforcement or air traffic controllers, receive 1.7% for the first 20 years and 1% thereafter.

For example:

If you retire at 57 with 30 years of service and your high-3 average is $165,000:

• 30 years x 1% = 30%

• $165,000 x 30% = $49,500 annual pension

The FERS Supplement Since some federal employees retire before they’re eligible for Social Security (age 62), FERS includes a Special Retirement Supplement. This bridges the income gap until you can claim Social Security, calculated as:

Years of service ÷ 40 x age-62 Social Security benefit

For example, with 30 years of service and a projected Social Security benefit of $2,500 per month, the supplement would be $1,875 per month from retirement until age 62.

Understanding FERS is essential for federal workers considering retirement. Regularly reviewing your retirement strategy, estimating future benefits, and taking advantage of financial planning resources can help you maximize your retirement security.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * US Office of Personnel Management (OPM) FERS Information

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Thinking about collecting Social Security while you’re still working? It’s a tempting option, but there are several crucial mistakes you’ll want to avoid. Using real-life stories, I’m laying out the four big pitfalls, like earning over the social security limit, jeopardizing your health savings account, mishandling Medicare enrollment, and forgetting about tax withholding.

These missteps can lead to unnecessary penalties, and so I want to give some actionable strategies to help you make the most of your benefits without unpleasant surprises.

You will want to hear this episode if you are interested in... * [00:00] Four key factors to consider before collecting Social Security while you’re still working. * [06:04] Collecting benefits while working can affect HSA contributions. * [07:40] Stop HSA contributions six months before enrolling in Medicare Part A to avoid penalties. * [13:32] Enrolling in Medicare Part B while having employer insurance is unnecessary, as employer coverage remains primary. * [14:33] Medigap timing and social security taxes. * [15:21] Social Security is taxable income for most people, which means that you will owe income tax on that money.

Choosing when and how to collect Social Security is complex, especially if you intend to keep working beyond age 62. While the prospect of “double-dipping” might seem appealing, several critical factors can impact your overall benefit, tax situation, and healthcare coverage. Here are the four big mistakes I often see:

1. Exceeding the Social Security Earnings Limit One of the biggest mistakes is not understanding the earnings limit set by Social Security for those who collect benefits before reaching their full retirement age (FRA). If you start taking benefits before your FRA, which currently ranges from 66 to 67 depending on your birth year, your benefits may be reduced if your annual earnings exceed a certain threshold.

2. Before FRA: For every $2 you earn over this limit, Social Security will deduct $1 from your benefits.

3. The year you reach FRA: The limit jumps to $62,160, but the calculation changes to $1 withheld for every $3 over the limit, and only the months before your birthday month are counted.
4. After FRA, there is no longer an earnings cap; you can earn as much as you want without reducing your benefits.

Failing to plan for these restrictions can lead to a surprise clawback, so calculate your annual income carefully if you plan to collect early.

1. Losing Eligibility to Contribute to an HSA If you’re enrolled in a high-deductible health plan and are contributing to a Health Savings Account (HSA), be wary: Once you enroll for Social Security after age 65, you’re automatically enrolled in Medicare Part A. By law, you cannot contribute to an HSA while on Medicare.

To make matters more complex, Medicare Part A enrollment is retroactive up to six months, and any contributions made to your HSA during that period will be considered excess contributions, exposed to a 6% IRS penalty unless withdrawn in time. Before you trigger Social Security benefits, stop your HSA contributions (and your employer’s) at least six months in advance to avoid penalties and the loss of valuable tax deductions.

1. Accidental Enrollment in Medicare Part B Some assume that enrolling in Medicare Part B is required or beneficial while they keep their employer coverage, but that’s not always the case. If your employer has 20 or more employees and you’re covered under their group health insurance, your employer’s plan remains primary, and Medicare Part B is unnecessary and costly, with premiums starting at $185/month and higher for high earners.

Enrolling in Part B during this period can limit your future ability to buy a Medigap policy with automatic acceptance (no health questions or exclusions for pre-existing conditions). Unless you’re losing employer coverage, it’s usually best to delay enrolling in Part B and carefully respond to any enrollment communications from Social Security.

1. Not Withholding Enough Taxes on Social Security Payments Social Security benefits are taxable for most retirees, especially if you’re still working. You need to anticipate the added income and withhold sufficient federal (and potentially state) taxes to avoid underpayment penalties. You can file IRS Form W-4V to have Social Security withhold federal tax from each payment, choosing between 7%, 10%, 12%, and 22%. Alternatively, increase withholding at work or make estimated tax payments. Planning ahead ensures you won’t face a large bill come tax time.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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It’s been announced that Warren Buffett is stepping down as CEO of Berkshire Hathaway. In this episode, I’ll discuss Buffett’s humble beginnings, his approach to investing, and the philosophy that built one of the most successful companies in history.

I’ll also break down Warren Buffett’s wisdom into seven powerful, practical tips that align with my own approach to advising clients. Listen for tips on starting your investment journey early, staying the course during tough markets, and prioritizing temperament over intellect.

You will want to hear this episode if you are interested in... * [00:00] Principles of Warren Buffett's investing strategies. * [05:55] Buffett co-founded The Giving Pledge, pledging 99% of his wealth, and influencing other billionaires. * [07:08] Berkshire Hathaway class A shares have averaged a 19% annual return since 1966, vastly outperforming the S&P 500's 11%. * [12:41] Invest early, stay committed through market ups and downs, and be fearful when others are greedy and greedy when others are fearful. * [17:03] Warren Buffett advises most people to use index funds due to the difficulty of replicating his results. * [18:43] Make investment decisions based on facts, not emotions.

Investment Lessons from Warren Buffett Warren Buffett, often called the “Oracle of Omaha,” has long been considered one of the greatest investors of all time. His recent announcement that he will step down as CEO of Berkshire Hathaway after more than six decades is the perfect time to reflect on what sets Buffett apart, not just as an investor but as an individual. This episode digs into key lessons from Buffett’s life and career, exploring practical ways to apply his wisdom to your financial journey.

From Humble Beginnings to Monumental Success Warren Buffett’s rise didn’t begin in a Wall Street boardroom, but in Omaha, Nebraska, where he was born in 1930. From an early age, Buffett showed an affinity for entrepreneurship, selling chewing gum, Coca-Cola, and magazines as a child. His formal education at the University of Nebraska, Wharton Business School, and Columbia University (where he studied under the legendary Benjamin Graham) laid the foundation for his value investing philosophy.

Buffett started his first investment partnership in 1956 with $105,100, much of it from family and friends. By the age of 32, he was a millionaire. His acquisition of Berkshire Hathaway, a struggling textile company at the time, became the launchpad for one of the most successful investment conglomerates in history.

The Power of Modesty and Discipline Despite amassing unparalleled wealth, Buffett is renowned for his modest lifestyle. He still lives in the house he purchased in 1958 for $31,000 and drives an older model Cadillac, proving that frugality and comfort often go hand in hand. This modesty is more than a quirk; it’s a testament to his belief that wealth should serve a purpose beyond personal extravagance.

Buffett’s philanthropic efforts are equally legendary. Through The Giving Pledge (co-founded with Bill and Melinda Gates), he’s committed to donating more than 99% of his fortune. For Buffett, investing is not just about making money, it’s about stewarding resources responsibly and generously.

Berkshire Hathaway’s Long-Term Outperformance Under Buffett’s leadership, Berkshire Hathaway’s stock has delivered returns averaging 19% annually since 1966, trouncing the S&P 500’s historical average of 11%. One share of Berkshire’s Class A stock now costs nearly $800,000, a figure that tells the story of sustained outperformance. Buffett has also issued Class B shares at a lower price tag to democratize access for smaller investors, reflecting his desire to make wealth-building accessible.

Buffett’s Top Investing Lessons 1. Don’t Lose Money

Buffett’s two most famous rules are simple: “Rule number one: don’t lose money. Rule number two: don’t forget rule number one.” He emphasizes buying quality businesses with durable competitive advantages rather than taking risks on struggling firms with unsustainable dividends.

1. Start Early and Stay the Course

In his book The Snowball, Buffett likens investing to rolling a snowball down a long hill: the earlier you start, the bigger the results. Even if you’re approaching retirement, encouraging the younger generation to invest early can yield enormous benefits over time.

1. Remaining Committed Through Market Ups and Downs is Equally Vital

Buffett urges consistent investing, especially when markets are turbulent. Staying invested and buying during downturns can lead to significant long-term gains.

1. Be Fearful When Others Are Greedy

Buffett’s contrarian mindset, being “fearful when others are greedy, and greedy when others are fearful”, has served him well during market panics. While it’s emotionally taxing to buy during selloffs, history shows that long-term investors are often rewarded.

1. Buy Great Companies at Fair Prices

Rather than chasing bargains, focus on acquiring well-run businesses at reasonable valuations. Many of Buffett’s best investments, Apple, Coca-Cola, and American Express, embody this approach.

1. Focus on Buying and Holding Low-cost Index Funds

Buffett believes this is the simplest and most effective long-term investment strategy because it provides broad market exposure while keeping fees to a minimum, both of which are important for building wealth over time.

1. Temperament Is Key

According to Buffett, success in investing is more about temperament than IQ. The ability to remain rational and stick to your plan, regardless of market noise, is what separates great investors from the rest.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * The Snowball by Warren Buffett * The Intelligent Investor: The Definitive Book on Value Investing by Benjamin Graham * The Giving Pledge

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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On the show today, I’m discussing something that could be a game-changer for your retirement savings: Health Savings Accounts, or HSAs. If you’re on a high deductible health plan, you might be eligible for this unique, triple tax-free account, but are you making the most of it?

I’m sharing the top five mistakes people make with their HSA accounts. If not avoided, those mistakes can cost you serious money and limit your financial options later in life. I’m covering everything from choosing the right HSA provider to maximizing your investments within the account, tracking expenses, and even strategizing for retirement healthcare needs.

Plus, I’ll give you actionable tips to avoid these common pitfalls and explain how an HSA can function as a powerful retirement savings tool.

You will want to hear this episode if you are interested in... * [00:00 HSAs offer triple tax benefits for qualified health costs. * [06:17] Transfer your HSA to invest funds instead of letting them sit idle. * [08:36] Use a bucketing strategy for investments and allocate funds based on risk and term. * [13:24] Use an HSA to reimburse for long-term care insurance, COBRA costs, and Medicare Part B, D, and Advantage after age 65. * [14:31] An HSA is suitable for tax-free withdrawals post-retirement.

The Triple Tax Advantage of HSAs Health Savings Accounts (HSAs) have grown in popularity steadily due to their unique triple tax advantage: contributions are tax-deductible, earnings grow tax-deferred, and qualified withdrawals are tax-free. If you’re enrolled in a high-deductible health plan (HDHP), you’re likely eligible for an HSA, and maximizing this account could significantly boost your retirement planning.

However, many account holders fail to capitalize on the full benefits. Let’s explore the most common (and costly) mistakes people make with their HSAs, and the steps you can take to avoid them.

1. Sticking with a Poor HSA Provider Not all HSA providers are created equal. A “good” provider offers diverse sets of low-cost investment options, competitive yields on cash balances, a user-friendly platform, and minimal fees. Unfortunately, many people end up with accounts that lack investment choices or charge unnecessary fees, simply because their employer picked the provider. The good news?

You can transfer your HSA balance to a more flexible institution like Fidelity or Charles Schwab without penalty, even while still employed. Doing so could unlock better investment potential and higher earnings on your cash, making it well worth investigating your current provider's offerings and considering a move if they fall short.

1. Not Investing Your HSA Money Surprisingly, many HSA owners leave their funds idle in low- or no-interest accounts, missing years of tax-free growth. If you don’t plan to spend your HSA funds soon, consider using a “bucket” approach: keep enough in cash or a money market for your deductible, and invest the remainder in stock or bond funds for long-term growth.

Since medical expenses are rarely incurred all at once, investing your surplus funds can help your account grow exponentially, harnessing the power of compounding. Review your provider’s investment options and allocate your HSA funds according to your risk tolerance and time horizon.

1. Failing to Max Out Contributions Because HSAs offer unbeatable tax benefits, it’s wise to contribute as much as possible. For 2025, contribution limits are $4,300 for individuals and $8,550 for families, including employee and employer contributions. If you’re 55 or older, you can contribute an extra $1,000 as a “catch-up” contribution.

If you’re married and you and your spouse are over 55, each spouse can make their own catch-up contribution, but you’ll need separate accounts. Remember, you have until the tax filing deadline to make contributions for the previous year, giving you ample opportunity to reach the maximum annual limit.

1. Treating Your HSA Like a Checking Account Many people promptly spend their HSA funds on current medical expenses, inadvertently missing a powerful savings opportunity. Instead, consider paying for qualified medical costs out-of-pocket and letting your HSA investments grow. As long as you keep records of those qualified expenses, you can reimburse yourself tax-free at any point in the future, even years later.

This allows your HSA to function much like a “stealth IRA,” providing tax-free growth and withdrawals for medical needs in retirement, when such expenses are likely to be higher.

1. Neglecting to Track Qualified Expenses To take advantage of delayed reimbursement, it’s crucial to maintain careful records of out-of-pocket medical expenditures. The IRS can require documentation during an audit, so scan or save receipts and keep a running log in a spreadsheet.

Good record-keeping ensures that, when the time comes, you can confidently withdraw HSA funds tax-free to reimburse yourself or cover eligible costs like Medicare premiums, long-term care insurance, and more once you reach retirement age.

Make Your HSA Work Harder for You Used strategically, an HSA can become one of your most valuable retirement planning tools. By carefully choosing your provider, investing wisely, maximizing contributions, delaying withdrawals, and tracking all qualified expenses, you can fully realize the triple tax benefits and enjoy greater financial security in retirement. Take a moment today to review your HSA practices, your future self will thank you.

Resources Mentioned * Fidelity * Charles Schwab.com * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Radio personality Dave Ramsey is a huge name in the personal finance niche. While he’s celebrated for helping countless listeners take control of their finances, many of his recommendations have sparked debate within the financial planning community.

I’m going to break down six of the most controversial opinions promoted by Ramsey, including advice on retirement withdrawals, debt payoff strategies, Roth accounts, investing approaches, mortgages, and the use of credit cards. I will also weigh up the pros and cons of Ramsey’s methods, highlighting where they might help and where they might hinder your journey towards a successful retirement.

Whether you’re a Dave Ramsey fan or just curious about best practices for financial wellness, this episode offers a thoughtful, practical take on some hotly contested money moves.

You will want to hear this episode if you're interested in... * [0:00] Exploring Dave Ramsey’s financial advice and when it might not work for you. * [07:07] Contribute to your retirement plan to at least match company contributions while managing high-interest debt. * [09:07] Prioritize pretax 401(k) contributions for potential tax savings and growth, especially for high earners and those nearing retirement. * [13:57] Some active funds may outperform the market, but it's challenging. Paying off all debt immediately may not always be ideal. * [17:43] The problem with cash or debit use and envelope budgeting to control spending and avoid debt. * [20:11] Limiting credit card use could cause missed benefits.

Debunking Controversial Dave Ramsey Financial Advice In the world of personal finance, few names are as recognized as Dave Ramsey. He’s helped countless listeners reclaim control of their money, but not all his advice sits comfortably with financial professionals. This week, I’m exploring several of Ramsey’s most controversial recommendations, offering candid insight into where these strategies may fall short for those planning a secure retirement.

1. The 8% Retirement Withdrawal Rule is Riskier Than It Seems Dave Ramsey suggests that retirees can safely withdraw 8% of their portfolio annually. He justifies this by assuming long-term market returns of 11-12%. The problem is that average long-term returns are generally projected in the 6-8% range, and those figures often require heavy equity exposure, something unsuitable for most retirees due to the risk of major market downturns.

The more widely accepted “safe withdrawal rate” is between 4 and 5%, supported by decades of research. Relying on Ramsey’s higher figure may rapidly deplete retirement savings, especially during bear markets. Retirees should consider their investment mix and plan for longevity, erring on the side of caution to avoid outliving their assets.

1. Pay Off Debt, But Not at the Expense of Retirement Savings One of Ramsey’s hallmark principles is eliminating all debt before focusing on retirement contributions. While high-interest debt like credit cards should indeed be a priority, neglecting retirement savings, especially employer-matched 401(k) contributions, means missing out on invaluable compounding growth and free money from your employer. Ideally, individuals should strive for a balanced approach: aggressively tackle high-interest debt while contributing enough to their workplace retirement plan to secure the full employer match, and, if possible, work towards saving 10-20% of salary for retirement.

2. All Roth, All the Time? Not Necessarily Ramsey strongly favors Roth accounts for retirement savings, arguing that after-tax contributions and tax-free withdrawals offer valuable benefits. While Roth accounts can be powerful, particularly for young savers or those in lower tax brackets. For higher earners, often in their peak earning years, the upfront tax deduction of pre-tax 401(k) or IRA contributions can provide meaningful savings. Since many retirees drop into a lower tax bracket after leaving the workforce, traditional accounts can be more tax-efficient for certain households. Morrissey advises tailoring the choice to individual circumstances, considering both current and expected future tax rates.

3. Active vs. Passive Investing Ramsey promotes active mutual fund management and even suggests that up-front mutual fund commissions are worthwhile. In the last decade, though study after study has shown that most active fund managers fail to outperform inexpensive index (passive) funds after fees. With some actively managed mutual funds charging fees of over 1%, the compounding effect of those costs can dramatically diminish returns over decades. Passive investing, through low-cost index funds, allows investors to keep more of their money and often experience better outcomes. The same is true for mutual fund commissions; with so many no-load, low-fee options available, there’s little justification for paying unnecessary charges.

4. Mortgage Payoff Strategies Ramsey encourages paying off all debt, including mortgages, as quickly as possible and recommends only taking out 15-year mortgages. While debt freedom is a worthy goal, for many, low-interest mortgage debt (especially at rates under 5%) isn’t necessarily worth rushing to eliminate. Investing surplus funds in the stock market historically yields higher returns than today’s mortgage rates. Additionally, restricting home purchases to what’s affordable on a 15-year mortgage makes homeownership unattainable for many. It’s more beneficial to keep total debt payments below 35% of gross income and focus on long-term wealth accumulation.

5. Ditching Credit Cards? Ramsey’s final controversial opinion is to avoid credit cards altogether and rely instead on cash or debit. While this is a great strategy for habitual overspenders or those burdened by credit card debt. However, for disciplined users, credit cards offer valuable perks, such as travel rewards and cash back, often up to 2% or more. These rewards, when paired with responsible habits (paying off balances monthly), can add up to significant savings without the risk of debt.

Dave Ramsey has helped millions move toward better financial habits, but some of his advice may not serve everyone equally well. There’s no one-size-fits-all approach to money. Evaluating your financial landscape and consulting with a fiduciary professional are key steps toward making smart choices that truly align with your goals and circumstances.

Resources Mentioned * Dave Ramsey's Website * A Total Money Makeover by Dave Ramsey * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Welcome to a special milestone episode of Retire with Ryan! In this 250th episode, we’re digging into one of the most frequently asked topics by listeners: Social Security. I answer four real-life listener questions about Social Security benefits - covering issues such as survivor benefits after divorce, spousal and ex-spousal benefit eligibility, changes to the Windfall Elimination Provision and Government Pension Offset, and rules for collecting benefits based on a former spouse’s record.

I’m breaking down complex Social Security rules in an easy-to-understand way and sharing practical advice for retirees and those planning their dream retirement.

You'll want to hear this episode if you're interested in... * [0:00] Access your free copy of my e-book Fiduciary at www.retirewithryan.com * [5:34] Divorced spouses have options for Social Security benefits based on age, remarriage status, and whether claiming their own or an ex-spouse's benefits * [6:58] Earnings above $23,400 (ages 62 to full retirement) reduce Social Security benefits by $1 for every $2 over the limit. After reaching full retirement age, the reduction is $1 for every $3 over $62,160. * [10:07] If your ex-spouse dies before you file, you can use a restricted application, but ex-spousal benefits don't earn delayed credits. Wait until age 70 for a higher personal benefit. * [14:38] The ten-year requirement for an ex-surviving spouse currently still stands unless * [15:54] If you have recently divorced and your spouse hasn't claimed benefits, then you have to wait two years until you can begin collecting benefits from your ex-spouse

Navigating Social Security: Answers to the Most Common Questions for Retirees and Divorced Spouses Survivor Benefits for Divorced Spouses A question from Andrea regarding her mother’s eligibility for survivor benefits after her father and his second wife passed away highlights the intricacies many face. The Social Security Administration (SSA) does provide certain protections for divorced spouses, but eligibility hinges on specific criteria:

• Marriage Duration: To claim an ex-spousal survivor benefit, the marriage must have lasted at least 10 years.
• Remarriage Restrictions: If remarriage occurs after the age of 60 (or 50 if the survivor is disabled), the survivor can still claim benefits from the former spouse. Earlier remarriage generally directs benefits to the new spouse.
• Age Requirements: Survivors can claim benefits as early as age 60 (or 50 if disabled), but waiting until reaching “full retirement age” (typically 67) means collecting the full survivor benefit (100% of the deceased’s benefit). Early claims result in reduced monthly amounts.
• Earnings Limits: If a recipient claims before full retirement age and continues working, their benefits may be reduced if their income exceeds the annual limit ($23,400 in 2025).

Survivor benefits application can’t be completed online, applicants must call or visit their local SSA office.

Myths, Realities, and the Restricted Application of Ex-Spousal Benefits Stephanie, a divorced listener, asked if she could claim a spousal benefit and later switch to her own higher benefit. This is a common idea, but it is rarely permitted in practice today.

• No “Restricted Application” Unless Widowed: Generally, ex-spouses can only claim the higher of their benefit or up to 50% of their ex-spouse’s benefit if the ex is alive. The “restricted application” (where you claim one benefit first and then switch later) is only available to widows or widowers, not to those whose ex-spouses are still living.
• Delaying for More: Your benefits do grow (8% per year between full retirement age and 70). However, survivor and spousal benefits don’t accrue these “delayed retirement credits”; there’s no advantage to waiting past full retirement age to claim them.
• Earnings Matter: Like survivor benefits, earnings above the income limits before full retirement age can result in reductions.

The Social Security Fairness Act and New Opportunities Recent legislative updates, like the Social Security Fairness Act, have had a profound impact, especially for those affected by the Windfall Elimination Provision (WEP) or Government Pension Offset (GPO). Retirees such as teachers, firefighters, and some government workers previously saw reductions in their Social Security due to pensions received from non-Social Security-taxed jobs.

The Key Change is that WEP/GPO was repealed, and anyone affected can now claim full Social Security benefits. Most should already see retroactive and increased monthly payments. If you’ve not yet applied, check if you now qualify, the hurdles may have vanished!

When Can You Claim on an Ex-Spouse’s Record? Donna’s inquiry emphasizes a lesser-known rule: If the divorce is recent and the ex-spouse hasn’t claimed benefits, one must wait two years to claim on the ex’s record unless the ex starts claiming earlier. For divorces older than two years, you can generally proceed without waiting. Those under full retirement age must ensure their income doesn’t result in reduced payments.

Social Security remains complex, especially during life events such as divorce, remarriage, death, or career changes. The rules can and do change, and representatives aren’t infallible. If you suspect your situation is unique or you’ve been misinformed, it pays to contact the SSA or consult a trusted financial advisor.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * How the Social Security Fairness Act Could Positively Impact Your Retirement, #236

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This time, we're featuring financial insights from co-host Ryan Morrissey, who's here to help you navigate this turbulent financial landscape. We'll explore the recent volatility sparked by President Trump's tariff announcements and discuss the remarkable market rebound that followed.

Ryan also lays out six strategic moves you can make to optimize your investment strategy during these downturns, whether it's buying the dip, rebalancing your portfolio, or taking advantage of tax efficiencies. Stay tuned for valuable tactics and practical advice to bolster your financial well-being and prepare for a successful retirement. Let's get started with Retire with Ryan!

You will want to hear this episode if you are interested in... * [0:00] Suggested market strategies for navigating a down market * [5:45] Invest early in Roth IRA, IRA, HSA, and 529 accounts to capitalize on market declines and potential growth. * [6:46] Rebalance your portfolio regularly to maintain target allocation and capitalize on market shifts without overthinking decisions. * [8:37] Set your savings up so you put a certain amount in every month to take advantage of dollar cost averaging. * [9:01] Cut your losses and sell underperforming investments * [10:41] How to take advantage of tax losses inside your taxable investment accounts * [15:00] Consider replacing mutual funds with ETFs for better tax efficiency when the market is down for long-term benefits.

Smart Investment Moves to Leverage Stock Market Declines Market volatility is not uncommon, but it can be nerve-wracking for investors. Yet, as seasoned investor Warren Buffett famously said, "Be fearful when others are greedy, and greedy when others are fearful." In times of market downturn, opportunities abound for those who know where to look. Here’s a breakdown of six strategic moves you can make to take advantage of a down market:

1. Buy the Dip When markets decline significantly, it presents a unique buying opportunity. This strategy involves purchasing stocks when their prices are lower than usual, positioning yourself to benefit when prices rebound. It’s important to remember that timing the market perfectly is nearly impossible, but by entering a 10% decline or more, you're likely to see gains as the market recovers. This can also be a great time to maximize your contributions to your IRA, Roth IRA, or HSA to take full advantage of the opportunity.

2. Rebalance Your Portfolio Portfolio rebalancing is crucial for maintaining your desired asset allocation, especially after market fluctuations. For instance, market dips might skew this balance if your target is a 60/40 stock-to-bond ratio. Rebalancing during market declines can ensure the original allocation is restored and takes advantage of lower stock prices.

3. Automate Your Investments Automating investments ensures consistent contributions to your portfolio, regardless of market conditions. Dollar-cost averaging mitigates the risks associated with market volatility. Whether through a 401(k), IRA, or other investment accounts, setting up automatic contributions allows you to buy into the market regularly without second-guessing the timing.

4. Sell Underperforming Investments Market downturns clarify which investments are not worth holding onto. If individual stocks or mutual funds consistently underperform, it may be time to cut losses and reinvest the capital into more promising assets. Clearing these underperformers cleans up your portfolio and allows you to focus on investments with better potential.

5. Harvest Tax Losses Down markets offer a chance to engage in tax-loss harvesting. Selling securities at a loss can offset taxable gains from other investments, reducing your tax liability. Additionally, you can claim up to $3,000 in capital losses against your ordinary income each year. When using this strategy, be mindful of the wash sale rule, which prohibits repurchasing the same or substantially identical security within 30 days to claim the tax loss.

6. Transition to Tax-Efficient Investments During a market downturn, re-evaluating your taxable investment accounts for tax efficiency can be advantageous. Mutual funds often distribute capital gains annually, potentially increasing your tax bill even if you haven't sold your shares. Consider exchanging mutual funds for exchange-traded funds (ETFs), which typically offer greater tax efficiency by limiting capital gains distributions to shareholders until shares are sold.

While market downturns can be daunting, they provide excellent opportunities for investors to reshuffle their portfolios strategically. You can navigate market volatility and improve your financial health by buying the dip, rebalancing, automating investments, selling underperformers, harvesting tax losses, and transitioning to tax-efficient investments.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

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As you get closer to the age of 73, it's more and more important to understand the financial strategies you can use to avoid a "tax tsunami" or "tax bomb."

In this episode, I break down the basics of RMDs, explaining how they are calculated and the importance of planning ahead. You’ll want to make a note of these four key strategies to reduce your RMDs and ensure a smoother financial journey as you transition into retirement.

From starting withdrawals before the age threshold to considering Roth conversions and qualified charitable distributions, we share practical insights to help you navigate these financial waters.

You will want to hear this episode if you are interested in... * (0:00) How to avoid a huge tax burden if you plan to work beyond 73 years of age * (2:21) Please rate and review the Retire with Ryan podcast! * (3:59) RMDs start at age 73 unless working past that age with less than 10% company ownership * (9:02) Plan your IRA distributions considering tax implications * (11:52) Consider a Roth conversion by moving pre-tax retirement funds to a Roth IRA * (17:54) Use annuities for stable retirement income * (18:59) Investigate using a QLAC to reduce RMDs, manage taxes, and provide additional income in old age

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

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In this episode, I address listener concerns about the future of Social Security, especially given recent changes under President Trump's administration and the involvement of the Department of Government Efficiency (Doge).

I’ll dive into the current state of Social Security, the potential impact on your benefits, and how you can maximize those benefits moving forward. With solvency concerns looming, I’ll help you better understand what’s at stake and how to make smart decisions for your retirement.

You will want to hear this episode if you are interested in... * (0:00) Can Elon Musk and Doge Take Away My Social Security Benefit? * (1:33) Please rate and review the Retire with Ryan podcast! * (2:21) What is Doge and how it could impact Social Security * (3:55) The role of Congress in controlling Social Security * (5:38) What is the future of Social Security solvency? * (8:26) Why waiting to collect Social Security could increase your benefits * (10:20) The earnings limits when collecting Social Security early

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

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In this episode of Retire with Ryan, I’m talking about the growing threat of smishing, a type of phishing scam where fraudulent text messages try to trick you into revealing personal information like your social security number, bank account details, or credit card information. I’ll explain how these scams are targeting individuals like you and share some important tips on how to protect your phone and investment accounts from being compromised. It's crucial to stay informed and secure, and I’m here to help you navigate these risks.

You will want to hear this episode if you are interested in... * (0:00) Introduction to smishing and FBI warning * (0:51) How smishing scams are growing and affecting individuals * (1:42) Please review the podcast on Apple or Spotify * (2:41) Real-life examples of smishing attacks Ryan has encountered * (3:53) Identifying fraudulent links and avoiding them * (5:56) What to do if you’ve clicked on a fraudulent link * (7:20) Tips to protect your phone and investment accounts * (9:53) Signs that your phone has been compromised * (11:33) Two-factor authentication and securing your accounts

Resources Mentioned * File a complaint at https://www.ic3.gov/ * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

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Maximizing your retirement plan contributions is one of the most powerful ways I can help you secure your financial future. As we near the end of the first quarter of 2025, it’s the perfect time to review your contributions.

In this episode, I break down how you can ensure you're contributing the maximum allowable amount and why it’s essential to do so. I explain how to calculate your contribution limits based on your salary and pay frequency, so you can easily determine how much you should be setting aside per pay period.

If you haven’t adjusted your contributions for the year, don’t worry—I’ll walk you through how to quickly get back on track to ensure you’re maximizing your retirement plan. By taking action now, you can set yourself up for greater savings down the road.

You will want to hear this episode if you are interested in... * (0:00) The importance of maximizing retirement contributions * (3:21) How to calculate maximum contributions for those under 50 * (6:50) How catch-up contributions for individuals over 50 (and how to maximize these) * (8:12) A new super catch-up provision for those aged 60-63 under the Secure Act 2.0 * (9:34) Employer matching contributions and how they fit into your total contribution limit * (12:03) How to convert after-tax contributions to Roth accounts to maximize growth * (14:55) The advantages of using a taxable brokerage account for additional savings

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

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What’s the best way to protect your retirement savings when the market feels unpredictable? In today’s episode of Retire with Ryan, I cover the growing uncertainty caused by political decisions and how they affect your investments.

From tariffs to immigration changes and government cutbacks, I’ll share insights on how to navigate this volatility and keep your portfolio secure. Whether you’re nearing retirement or already there, this episode will provide actionable steps to ensure your investments remain on track despite external economic pressures.

You will want to hear this episode if you are interested in... * (0:56) Market volatility and economic impact * (1:30) Check out Retirement Readiness Review * (2:19) Insights from a J.P. Morgan conference call * (4:37) Tariffs and their economic effects * (6:31) The labor market and immigration policies * (8:13) Government cutbacks and their impact * (9:17) What you should do with your investments

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

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In this episode, I dive into the latest developments with the Social Security Fairness Act and what these changes mean for retirees who were previously ineligible for Social Security benefits. With potential increases in payments and retroactive benefits, this episode is packed with critical insights for anyone impacted by the new law.

I break down real-world examples to show exactly how these changes will affect individuals—particularly teachers, former public employees, and those with pensions exempt from Social Security. Whether you’re waiting for retroactive benefits or trying to understand the tax implications, I’ve got you covered with the essential information you need.

You will want to hear this episode if you are interested in... * (1:07) Changes to the Social Security Fairness Act * (2:57) Benefits and retroactive payments * (5:05) How the Social Security Fairness Act works * (6:52) How the spousal benefit works * (6:30) How the new law will impact retirees * (11:32) How survivor benefits now work * (14:05) The impact of the Windfall Elimination Provision * (15:16) What do you need to do? * (16:57) How Social Security benefits are taxed

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Social Security Fairness Act: Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) update * Apply for Social Security at https://www.ssa.gov/myaccount/ * Episode #217: Will Social Security Become Tax-Free?

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What is the best way to access equity in your home for retirement income? In this episode of Retire with Ryan, host Ryan Morrissey is joined by Mitch Cooper, a Certified Reverse Mortgage Professional with Mutual of Omaha, to explore this very question.

Mitch returns to the show to share his expertise on reverse mortgages, a powerful tool that allows retirees to tap into the equity of their homes without having to sell. Whether you’re considering this option for supplemental income or simply want to understand how it works compared to other alternatives like home equity loans, this episode provides valuable insights into how reverse mortgages can help secure your financial future in retirement.

You will want to hear this episode if you are interested in... * (0:00) Learn more about Mitch Cooper, a Certified Reverse Mortgage Professional * (0:53) What is the best way to access equity in your home for retirement income? * (2:25) How reverse mortgages differ from home equity loans and lines of credit * (5:41) Requirements and eligibility for reverse mortgages, including age and equity * (7:41) The impact of interest rates on reverse mortgage loan amounts * (8:45) The protections offered by reverse mortgages, including the non-recourse nature * (10:36) Other requirements for obtaining a reverse mortgage * (16:06) Comparing reverse mortgages to annuities and their role as longevity insurance * (25:14) How closing costs work with a reverse mortgage * (30:36) The process of obtaining a reverse mortgage

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * The National Reserve Mortgage Lending Association * Mitch Cooper (Mutual of Omaha) * Connect with Mitch on LinkedIn

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In this episode of Retire with Ryan, we’re diving into the ins and outs of 1031 Exchanges with expert Eric Brecher. As Executive Vice President at the Chicago Deferred Exchange Company, Eric brings years of experience in navigating this complex IRS provision, which allows real estate investors to defer capital gains taxes when selling property.

If you're interested in real estate investments and the potential tax advantages that come with them, this episode is a must-listen. Eric explains everything from the basics of a 1031 Exchange to key strategies, common pitfalls, and the crucial role of a Qualified Intermediary.

You will want to hear this episode if you are interested in... * [0:52] What is a 1031 property exchange provision? * [6:44] The 4 key requirements for a 1031 exchange * [9:13] The role of the qualified intermediary * [16:09] Common mistakes and misconceptions * [26:32] The three property rule * [32:28] The role of the qualified intermediary * [35:34] Other need-to-know details

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

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When it comes to retirement plans, the general rule is that you can’t access funds in your retirement account(s), without penalty, until age 59 ½. If you withdraw funds prior to 59 ½, you’ll get hit with a 10% penalty and income tax (if coming from a non-Roth account). But there are some instances in which you can make withdrawals penalty-free. We’ll dive into this in this episode of Retire with Ryan.

You will want to hear this episode if you are interested in... * [0:55] Why you should hire a fee-only financial advisor * [2:32] When can you access retirement accounts? * [3:20] Way #1: Pay for unreimbursed medical expenses * [4:18] Way #2: If you become disabled * [4:53] Way #3: Pay for health insurance premiums * [5:43] Way #4: Death * [6:23] Way #5: Pay debt to the IRS * [6:50] Way #6: First-time home buyer * [7:34] Way #7: Higher education expenses * [8:31] Way #8: Substantial and equal payments * [9:52] Way #9: Terminal illness * [10:19] Way #10: Separation of service

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Getting Emergy Money from Your 401K * Breaking Down the IRS’s New Finalized Regulations on Inherited Retirement Accounts

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Will AI stocks like NVIDIA continue their meteoric rise, or are we heading toward a market correction? What do recent Federal Reserve decisions mean for your investments and mortgage rates? And is it time to reconsider small-cap stocks?

In this episode, I sit down with Michael Collins, CEO of WinCap Financial, to tackle the biggest financial trends of 2025. We discuss the future of AI-driven investing, the Federal Reserve’s impact on interest rates, and whether large-cap stocks will remain dominant. This episode is a must-listen!

You will want to hear this episode if you are interested in... * (0:00) Introducing Michael Collins: CEO of WinCap Financial and finance educator * (2:40) AI and NVIDIA: Will new competition shake up the market? * (5:50) The usefulness of AI for businesses * (7:24) How NVIDIA dominates the S&P 500 (and what that means for investors) * (9:36) Will the Fed lower interest rates? * (12:47) Will homebuyers see lower mortgage rates? * (20:18) The future of large-cap vs. small-cap investing * (24:52) Bitcoin, the Fed, and risky government investments

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * DeepSeek * Michael Collins * WinCap Financial

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In an ideal world, everyone should aim to keep 3–6 months of living expenses in an emergency fund. But let’s face it—building that kind of safety net isn’t always easy. For many pre-retirees, most savings are tied up in retirement accounts, leaving limited options for unexpected expenses.

So, what can you do if an emergency arises? In today’s episode, I’ll walk you through how to access emergency funds from your 401(k) and explore strategies to help you stay prepared for life’s unexpected challenges.

You will want to hear this episode if you are interested in... * [0:53] Do you have an emergency fund? * [1:35] Why you should hire a financial advisor * [2:38] The new IRS rule allowing withdrawals * [3:59] The requirements for withdrawal * [4:32] What are the drawbacks? * [5:08] Why you should build your emergency fund

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE

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If you retire early (before 65), you’re too young to qualify for Medicare. So what are your health insurance options? In this episode of Retire with Ryan, I’ll address five different options you have to get health insurance. I’ll also share some ways you can lower the cost of your premiums to keep coverage affordable until you qualify for Medicare.

You will want to hear this episode if you are interested in... * [1:01] Health insurance options if you retire early * [3:03] Option #1: Don’t get health insurance * [4:11] Option #2: See if you qualify for Medicaid * [5:38] Option #3: Get on COBRA * [7:46] Option #4: Investigate individual plans * [8:57] Option #5: Get a plan through the ACA * [12:36] How can you save money on premiums? * [14:53] What is the biggest unknown?

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Healthcare.gov

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President Biden recently signed the Social Security Fairness Act into law, bringing significant changes to Social Security benefits for millions of public school teachers and former public employees. This new legislation eliminates provisions that previously reduced or limited their benefits.

In this episode, I’ll break down how the bill works, who it impacts, what it means for you, and what steps you need to take to claim any additional benefits you may be eligible for.

You will want to hear this episode if you are interested in... * [0:45] Social Security Fairness Act * [1:24] Download my new book for FREE * [2:22] What is the Social Security Fairness Act? * [6:27] When does this go into effect? * [7:00] How can this benefit you? * [10:37] How the survivor benefit will work * [12:46] Do you need to do anything?

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Social Security Fairness Act Re: Provisions * Millions of Public Workers to get Higher Social Security Benefits

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Happy New Year! As we step into 2025, it’s time to reflect on the lessons of the past year and anticipate what’s ahead. In this episode, I take a deep dive into my 2024 market predictions—where I was right, where I went wrong, and the key takeaways to help guide your investment decisions moving forward.

The S&P 500 delivered a remarkable 23.8% return, Bitcoin soared by 121%, and interest rates shifted more than expected. How did these compare to my forecasts? I’ll share the details and insights that shaped last year’s performance. Then, we’ll turn our focus to 2025, where I outline predictions for major asset classes, the S&P 500, interest rates, and the ongoing battle between Gold and Bitcoin.

You will want to hear this episode if you are interested in... * [0:45] Happy New Year! * [2:21] Prediction #1: The S&P 500 will have positive returns * [4:58] Prediction #2: Growth stocks will lead the market * [7:35] Prediction #3: Small caps would outperform large caps * [9:35] Prediction #4: Gold would outperform bitcoin * [11:42] Prediction #5: Domestic stocks would outperform international stocks * [14:04] Prediction #6: We’d see two rate cuts and interest rates of 4.75% * [16:28] My 2025 stock market predictions

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Download my entire book for FREE * Episode #183: 6 Market Predictions for 2024 * Episode #116: 7 Best Short-Term Investments To Grow Your Money * SPDR® Portfolio S&P 500® ETF * SPDR® Portfolio Developed World ex-US ETF * iShares Bitcoin Trust ETF

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In this episode, I’m joined by Larry Swedroe, a thought leader in evidence-based investing and former Chief Research Officer at Buckingham Strategic Wealth.

Larry has authored over 18 books that have shaped the way people think about personal finance, and now, after 28 years in the industry, he’s sharing the most valuable lessons he’s learned in retirement planning and investing.

In this episode, we dive into his latest book, Enrich Your Future: Keys to Successful Investing. Through 40 captivating stories, Larry exposes the myths and misconceptions that many investors hold, often perpetuated by Wall Street, and replaces them with clear, actionable strategies.

From understanding how overconfidence derails financial success to learning how to balance risk as you approach retirement, this conversation offers invaluable guidance for anyone looking to achieve financial independence.

You will want to hear this episode if you are interested in... * [1:33] Larry’s process for writing a book * [7:33] How the industry has embraced passive investing * [17:19] Using tennis to explain the difficulties of active management * [21:20] Why do we think we can outperform the market? * [26:57] What approach is prudent for most people? * [30:08] Should retirees focus on dividend-producing investments? * [35:02] How to determine the amount of risk to take in your portfolio * [39:23] Diving into the concept of indexed annuities

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Connect with Larry Swedroe on LinkedIn * The Only Guide to a Winning Investment Strategy You'll Ever Need * Think, Act, and Invest Like Warren Buffett * Your Complete Guide to a Successful and Secure Retirement

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Happy Holidays and welcome to a special Christmas Eve episode of Retire with Ryan!

To celebrate the season, I’m embracing the holiday spirit with a financial twist on the iconic Christmas movie, Home Alone. This 1990 classic has become a Christmas staple, featuring young Kevin McCallister, who’s accidentally left behind while his family flies to Paris for Christmas vacation. Armed with creativity and courage, Kevin outsmarts two bumbling burglars with a series of clever traps before his family returns home.

But today, I’m looking at Home Alone through a different lens. As your financial advisor, I’ll break down the McCallister family’s finances. How rich were they? What would their stunning Chicago home be worth today? And what kind of jobs could support such a luxurious lifestyle?

With a budget of just $18 million, Home Alone has grossed nearly $500 million worldwide—and I’ve probably contributed to that total with how many times I’ve rewatched it! So, grab some eggnog, settle in by the fire, and let’s explore the McCallister family’s financial plan.

You will want to hear this episode if you are interested in... * [1:25] Sign up for my weekly newsletter and get a free chapter of my book! * [3:19] How much is the McCallister house worth? * [5:19] Calculating how much the McCallisters made * [7:48] What did the McCallisters pay in taxes? * [10:47] What was their cashflow? * [13:13] College costs for a family of five * [15:03] How much are they saving for retirement? * [18:43] Did the family have life insurance? * [19:36] The type of estate planning they had

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * How Rich Were the McCallisters? * Historical 401K Limits * Details about Home Alone * The McCallister House on Realtor.com * Home Alone Fan Speculations * A Brief History of the 401K

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How can an annuity help you secure income in retirement? Annuities often come with a reputation for being complicated, expensive, and overhyped—but they aren’t one-size-fits-all. The truth is, while they’re not the best solution for everyone, there are situations where they can provide the guaranteed monthly income some retirees need.

In this episode, I’m joined by Andy Panko, CFP®, RICP®, EA, and President of Tenon Financial. Together, we’ll cut through the confusion and explore when an annuity might actually be the right fit for your retirement strategy.

You will want to hear this episode if you are interested in... * [1:40] Two ways to generate income in retirement * [3:07] Real-life scenario: When you might want an annuity * [12:36] How an indexed annuity works * [16:39] Do annuities have inflation adjustments? * [20:13] Calculating the rate of return * [23:42] Why a good financial advisor is important

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Tenon Financial * Andy Panko on LinkedIn * The 7 Myths About Indexed Universal Life Insurance * ImmediateAnnuities.com * Financial Planning Association * Charles Schwab Income Annuity Calculator

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Last year, Americans donated $558 million to charities. 69% of those donations come from individuals. They also donated 4.1 billion hours to charities.

If you are someone making a donation to a charity, you need to know how they can help you reduce your taxes. One way to do that is through a donor-advised fund.

What is a donor-advised fund? How does it work? Should you consider using one for charitable giving? I’ll cover the details in this episode.

You will want to hear this episode if you are interested in... * [1:39] Sign up for my newsletter at RetireWithRyan.com * [3:05] What is a donor-advised fund? * [4:51] How is this different from other contributions? * [5:51] Who should consider a donor-advised fund? * [10:15] Who offers donor-advised funds? * [11:05] Pros/cons of donor-advised funds * [12:40] Additional benefits of using a donor-advised fund * [13:27] How to choose the right charity * [14:34] What are your next steps?

Resources Mentioned * Sign up for my newsletter at RetireWithRyan.com * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Charity Navigator * Pros and Cons of Donor-Advised Funds

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What could a Trump White House and Republican-controlled Congress mean for your finances? In this episode, we break down the potential tax changes—from individual tax brackets to business deductions and state taxes—that could impact your bottom line. Tune in to understand the areas with low, moderate, and high potential for change and what steps you should consider if you live in a high-tax state.

You will want to hear this episode if you are interested in... * [1:19] Sign up for my weekly newsletter * [2:28] Area of low potential for changes * [4:25] Area of moderate potential for changes * [10:05] Area of high potential for changes * [14:18] What to do if you’re in a high-tax state

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel

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How does Medicare Open Enrollment work? Do you need a supplement plan? How do you choose between a Medigap or Medicare Advantage plan? Navigating these questions can be overwhelming.

That’s why Danielle Roberts—co-founder of Boomer Benefits and the author of “10 Costly Medicare Mistakes You Can't Afford to Make”—joins me in this episode to help you avoid common pitfalls during Medicare Open Enrollment.

You will want to hear this episode if you are interested in... * [1:42] How Medicare open enrollment works * [3:45] Do you need a supplemental plan? * [5:13] How CMS changes impact plans * [9:37] Comparing Medigap vs Medicare Advantage * [12:41] The typical annual rate increase * [15:21] How Medigap plans work when you move * [16:12] When to choose a Medicare Advantage plan * [19:34] How Medicare Part D works * [21:38] How to choose between Medigap vs Advantage plans * [24:06] How to choose a broker to work with * [27:05] Start researching your Medicare options early * [28:06] How to get a free copy of Danielle’s book

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * 10 Costly Medicare Mistakes You Can't Afford to Make * Boomer Benefits * 2025 Medicare IRMAA Surcharge Updates, #228

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On November 8th, 2024, Medicare announced that in 2025, Medicare Part B will cost $185 per month per person—an increase of about $10.30 from 2024. Keep in mind, if your income is above a certain point, you’ll have to pay an “Income-Related Monthly Adjusted Amount,” or “IRMAA” tax. Is there a way to avoid paying the IRMAA surcharge? I share some strategies in this episode of Retire with Ryan.

You will want to hear this episode if you are interested in... * [1:25] How to get a FREE copy of “10 Costly Medicare Mistakes” * [2:20] The cost of Medicare Parts A, B, and D in 2025 * [4:26] When you would pay a higher Medicare premium * [8:32] What you can do to appeal the IRMAA Surcharge * [10:02] What you can do to avoid the IRMAA Surcharge

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * 2025 Medicare Parts A & B Premiums and Deductibles * Form SSA-44: Medicare Income-Related Monthly Adjustment Amount

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In this episode, we’re diving into the often-overlooked tax benefits of 529 plans. Most people know that 529 plans can help cover college expenses, but there are other valuable perks beyond just tuition savings.

From paying down student loans to making the most of tax deferral advantages, this episode breaks down five key tax benefits you may not be aware of. Let me help you maximize the potential of your 529 plan.

You will want to hear this episode if you are interested in... * [1:39] What are 529 plans? * [3:04] Repaying student loans * [4:14] Covering K-12 expenses * [5:20] Tax deferral * [8:10] Roth conversion * [12:40] Potential state tax deductions

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * How To Complete a Fidelity 529 To Roth IRA Rollover * 6 Ways To Use An Old CHET 529 Plan

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The S&P 500 is having another stellar year, yet small-cap stocks—representing the smallest publicly traded companies in the United States—haven't performed as well. While this might seem like a downside, it can also present unique opportunities for investors. In this episode, we’ll dive into the pros and cons of investing in small-cap stocks, the potential growth they offer, and how you can get started.

You will want to hear this episode if you are interested in... * [0:51] Should you consider investing in small-caps? * [1:59] What are small-cap stocks? * [3:28] Pros and cons of small-cap stocks * [5:00] The growth potential of small can stocks * [7:03] Why is there a projected turnaround? * [8:23] How do you invest in small-cap stocks? * [11:17] How to invest in value stocks

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Is the small-cap Premium Dead? * The Russell 2,000 * The S&P 600 * VB Vanguard small-cap S&P Index * IJR ETF * SPSM * SLYV

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The 2024 election is just days away, and soon you'll have your final chance to cast your vote. With so much at stake, many are anxious about how the markets might respond based on who takes the White House. In this episode of Retire with Ryan, I’ll dive into what we could expect from a Trump or Harris presidency—and explain why, no matter the outcome, it shouldn't drastically change your investment strategy.

You will want to hear this episode if you are interested in... * [2:37] The state of the Presidential election * [6:00] How the stock market is impacted * [6:50] How will a Harris presidency impact the market? * [8:01] How will a Trump presidency impact the market? * [12:57] Nothing will fundamentally change how you invest

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * State Street Global Advisors

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In some states, probate is avoidable. However, in many states, you can avoid having your estate go through the probate process. I recently went through the probate process when my grandfather passed away and I helped my father settle his estate. It is far easier for your family to settle your estate once you’re gone if it doesn’t go through probate. So, in this episode, I’ll cover 7 things you can do to keep your estate from landing in probate.

You will want to hear this episode if you are interested in... * [1:57] Settling my grandfather’s estate * [4:06] Tip #1: Give things away while you’re alive * [5:50] Tip #2: Own your real estate jointly * [7:16] Tip #3: Joint ownership for non-real-estate * [9:43] Tip #4: Use a “Payable Upon Death” account * [11:46] Tip #5: Designate beneficiaries on accounts * [13:07] Tip #6: Designate a beneficiary for vehicles * [13:52] Tip #7: Create a living trust * [16:27] Probate is unavoidable in many states

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Federal gift tax allowance

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Protecting your finances from hackers is more critical than ever. Cybercriminals are getting more sophisticated, accessing sensitive information like social security numbers and attempting to steal directly from financial accounts.

I recently experienced this firsthand when someone impersonated one of my clients. The fraudster knew my client’s social security number and tried to withdraw funds under the guise of an emergency.

Fortunately, we were suspicious and confirmed the scam before any money was lost. This encounter highlights the importance of being proactive about securing your accounts. That’s why, in this episode, I’ll share seven essential steps to protect your Schwab accounts from hackers.

You will want to hear this episode if you are interested in... * [1:22] Join a live in-person retirement readiness workshop or sign up online * [1:56] What happened when a hacker tried to access a client’s account? * [3:37] Step #1: Make sure your email is secure * [5:00] Step #1: Protect your passwords * [5:56] Step #3: Keep your web browser up to date * [6:48] Step #4: Set up online access to your accounts * [9:30] Step #5: Turn on alerts on your Schwab accounts * [12:31] Step #6: Monitor your monthly statements for suspicious activity * [13:11] Step #7: If you’ve been hacked, call Schwab

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel

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Age 59 ½ is the magic age at which you can start taking distributions from retirement accounts without a penalty. This listener is wondering if he can convert part of his IRA to a Roth IRA even though he’s not 59 ½. And if he goes ahead with the conversion, will it be subject to the 10% penalty? Listen to this episode to find out.

You will want to hear this episode if you are interested in... * [1:09] Attend a Retirement Readiness Review Workshop * [2:26] The basics of a Roth IRA/Roth conversion * [5:18] The first way you can do a Roth conversion * [8:20] How to do a conversion with an existing IRA * [9:00] What can be converted to a Roth IRA? * [9:45] When a Roth conversion makes sense

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel

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It can be overwhelming to think about what you can do to minimize your tax burden. That’s why, in last week’s episode, we covered 7 year-end tax moves for retirees. This week, we’ll tackle what those nearing retirement need to dive into at the end of every calendar year. We all need to be mindful of how our decisions impact our tax burden and this is a great place to start!

You will want to hear this episode if you are interested in... * [1:16] Tip #1: Maximum your contributions to your retirement plans * [4:05] Tip #2: Consider a Mega Backdoor Roth IRA * [7:30] Tip #3: Do a Roth conversion * [11:52] Tip #4: Make charitable contributions * [14:15] Tip #5: Exercise non-qualified stock options * [15:07] Tip #6: Max out your FSA contributions * [17:14] Tip #7: Max out your HSA contributions

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel

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Tax planning—and anything related to taxes, in general—isn’t most people’s favorite topic. But because we’re getting toward the end of the year, it’s actually a great time to think about tax planning and all of its benefits. In this episode of Retire with Ryan, I’ll share 7 things you should think about that can (and will) help save you money in retirement.

You will want to hear this episode if you are interested in... * [1:17] Check out my course: Retirement Readiness Review * [2:14] Tip #1: Look at your Social Security taxes * [3:57] Tip #2: Watch your income once you go on Medicare * [6:37] Tip #3: Consider doing a Roth conversion * [11:18] Tip #4: Take a close look at required minimum distributions * [13:06] Tip #5: Think about capital gains and losses * [14:09] Tip #6: Pay the correct taxes to the IRS * [15:07] Tip #7: Look at your state’s income tax breaks

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Will Social Security Become Tax-Free? * IRS Update For Inherited IRAs and Roth IRAs * Low Tax Burden States

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You’ve likely spent your entire lifetime saving for retirement. How do you make sure the money lasts as long as you do? How do you make sure you enjoy your retirement? It’s a balancing act for which there may be a solution.

Matthew Jarvis is a Financial Advisor who runs Jarvis Financial, located in Seattle, WA. He’s also the host of the podcast “The Perfect RA” and the author of the book “Delivering Massive Value.”

In this episode of Retire with Ryan, Matthew discusses the concept of retirement guardrails, how they work, and who they’re for. If you’re looking for a spending strategy that often leads to a successful retirement, this episode is for you.

You will want to hear this episode if you are interested in... * [0:56] Introducing this week’s guest, Matthew Jarvis * [1:55] The big problems with the 4% rule * [3:59] Why Matthew uses retirement guardrails * [8:02] What if you can’t afford retirement guardrails? * [10:20] How guardrails work for you * [12:51] How frequently you should evaluate your guardrails * [18:29] The five-year war chest * [22:46] Who is the strategy for? * [25:06] Don’t be afraid to get a second opinion

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * BOOK: Delivering Massive Value * The Perfect RIA podcast

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How much money do you need to save for retirement? $500,000? $2 million? The answer will never be the same. It’s specific to you. So how do you figure it out? In this episode of Retire with Ryan, I’ll share five steps you can follow to determine how much you need to retire.

You will want to hear this episode if you are interested in... * [1:25] Step #1: Calculate your budget for retirement * [4:11] Step #2: Calculate what you’ll receive from Social Security * [5:10] Step #3: Are you eligible for a pension? * [5:40] Step #4: Will you have any other income sources? * [6:27] Step #5: Look at your investments to see what you can withdraw * [9:28] Go through this exercise to determine exactly what you need

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Get a FREE budget template on my website * Check out all of my episodes on Medicare

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Could Social Security become tax-free? As the political scene heats up leading up to the 2024 Presidential Elections, and both candidates make their case for election, the topic of taxation has come up.

Former President Trump has promised that Social Security won’t be taxed if he’s elected. What could that mean for you? How is it currently taxed? I cover the details in this episode of Retire with Ryan.

You will want to hear this episode if you are interested in... * [1:35] How to get a copy of my new book! * [2:20] The potential impact of Social Security not being taxed * [4:50] I don’t believe we’ll see it happen: here’s why * [5:52] How Social Security is currently taxed

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Fiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial Advisor * Episode #206: Is Social Security Going Broke? * Income Taxes and Your Social Security Benefit

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Did you take out a parent PLUS loan or private loan to help your kids pay for college? Are you still struggling to pay off those loans?

According to StudentAid.gov, over 9 million people over 50 have student loan debt. Of those, over 1 million have loan balances north of $100,000.

If you’re nearing retirement, the last thing you want on your plate is student debt. In this episode of Retire with Ryan, Erik Kroll shares the best way to manage student loan repayment.

You will want to hear this episode if you are interested in... * [2:17] The different types of Federal student loans * [5:32] Private loans versus PLUS loans * [8:07] The forgiveness programs available * [9:37] Student loan repayment options * [22:40] How to start the consolidation process * [25:48] What to do if you need help with the process

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Student Loans Over 50 * Federal Student Loan Portfolio * Public Service Loan Forgiveness Program * StudentAid.gov * Email Erik at Erik(at)StudentLoansOver50.com * Set up a phone call with Erik at StudentLoansOver50.com

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If you’ve inherited an IRA from someone who wasn’t your spouse since 2020, you can’t miss this episode. Why? The IRS has finally cleared up a lot of questions that had been left unanswered about inherited IRAs from a non-spouse. Though I’ve covered the topic in previous episodes, I wanted to break down the regulation further in this episode.

You will want to hear this episode if you are interested in... * [1:57] The SECURE Act’s impact on inherited IRAs * [4:21] The new IRS regulations * [6:30] Eligible designated beneficiaries * [7:52] Non-eligible designated beneficiaries * [11:07] Do some tax projections * [12:34] Satisfying distribution requirements

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Fiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial Advisor * IRS Single Life Expectancy Table * Episode #180: New Beneficiary IRA Distribution Requirements * Episode #200: IRS Update for Inherited IRAs and Roth IRAs

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In March, The National Association of REALTORS® (NAR) settled an antitrust lawsuit. The lawsuit alleged that NAR didn’t allow sellers to negotiate what they could pay buyer’s agents. The changes outlined in the settlement will impact “business as usual.”

As of August 17th, 2024, the way home-buying and selling transactions happen will change. Raquel Fernandez—a realtor with over 20 years of experience—joins me to share what the changes look like for buyers, sellers, and their brokers. Anyone who owns a home—or is looking to buy one—needs to know this information.

You will want to hear this episode if you are interested in... * The NAR lawsuit is settled: Now what? [1:20] * What do the changes mean for you? [2:56] * Debunking the fake news [9:49] * What happens if the seller doesn't pay commissions? [16:42] * What do the changes mean for the future? [27:00]

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel

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What steps should you take to get your financial life in order after a divorce? In this episode of Retire with Ryan I lay out, step-by-step, the checklist of things you’ll want to look over, everything from calculating your net worth to designating beneficiaries. There’s a lot to consider. My aim is to simplify the process so that you can focus on what really matters—rebuilding your life.

You will want to hear this episode if you are interested in... * [0:45] Recap of the last two episodes * [1:15] Organize your net worth and budget * [4:27] Review insurance coverage * [6:28] Review overall debt * [8:27] Consider hiring a financial advisor * [9:32] Review your retirement plan * [10:38] Review your estate plan

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Get a free copy of my net worth statement and budget spreadsheet * Use my “I love you letter” template * Fiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial Advisor * LegalZoom * Trust & Will

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In episode #211, we talked about the information you need to gather to prepare to file for divorce and the initial proceedings. But what financial steps do you need to take during a divorce? How do you figure out what life will look like on the other side? How does splitting your assets actually work? Renée C. Bauer—an experienced family law attorney and mediator—joins me in this conversation to help flesh out the details.

Renée has been practicing law since 2003. She’s also the author of two books, “Divorce in Connecticut,” and “She Who Wins” and the host of the “Happy Even After” podcast.

You will want to hear this episode if you are interested in... * [2:16] You’ve filed for divorce—now what? * [5:28] Creatively diving into each person’s goals * [10:41] Handling the sale of a house you co-own * [12:52] How to separate a co-owned business * [15:54] The Fair and Equitable Division of Assets * [17:41] What happens if no agreement is reached? * [20:27] Where retirement assets land in the process * [23:24] Why a 50/50 split is the starting point * [27:47] Unraveling emotional attachments * [30:00] Taking control of your finances

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Episode #211: Financial Steps to Take Before Divorce * Happy Even After Family Law * The Happy Even After” podcast * Qualified Domestic Relations Order * Connect with Renée on Instagram

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We’ve all heard the statistics that almost half of all marriages end in divorce. And divorce comes at a large cost. That’s why you should come up with a plan for life after divorce. Look at your net worth, put together a budget, and make projections for your future. Let’s get you prepared as you can be.

To do that, I’m launching a three-part series on navigating the financial considerations when going through a divorce. No one wants to plan for the demise of their marriage. I get it. But if you know you’re about to go through the process, there are steps you can take to make it easier.

You will want to hear this episode if you are interested in... * [2:04] Do half of all marriages end in divorce? * [4:50] Gather key financial documents * [7:59] Take a look at your income * [8:18] Consider potential job opportunities * [9:03] Look at your individual credit score * [9:40] Consider working with a financial planner

Gather key financial documents If you aren’t managing the household finances, this is especially important. You need to understand how your household is doing. Gather things like:

• Checking, savings, and investment account information. You need to know where the money is and how much is held in the accounts.
• Have an idea of what property you own (which may be easy if it’s simply your primary home). Know the value of any assets you have.
• What debt do you have? Do you have credit card debt, lines of credit, mortgages, or other personal loans? Know what you owe (and how debt may be split when divorced).
• What are your household expenses? What are you spending? Look at things like insurance, utilities, home maintenance costs, etc.
• Do you have any retirement accounts or pensions? What will your Social Security benefits look like?

Take an in-depth look at all of this information. When you divorce, that net worth will be divided in some way. Getting a handle on that is important to understand the changes you’ll need to make.

Take a look at your potential income You can contact your accountant to get that information if you don’t have it readily available (or can’t get it from your spouse). If you’re not working, it’s time to get a handle on what you may be able to earn if you go back into the workforce.

If you won’t have income or assets to support yourself, consider the job opportunities available to you. What are your skills? What jobs are out there? Can you improve your skills by taking courses? Do you have any licenses you’ll have to renew?

What does your individual credit score look like? After a divorce, you might have to take out additional loans for a mortgage, car, student loans, etc. You’ll need good credit to do that. If you don’t have a good credit score, look into ways you can improve it quickly.

This is a great time to engage a financial planner for assistance. Listen to hear other things you’ll need to consider when going through a divorce.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Fiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial Advisor * Revealing Divorce Statistics In 2024 * Get my free budget template and net worth statement

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Why would you want to make a Roth contribution? If you believe tax rates will be higher in the future, it could benefit you. How? The contributions grow tax-deferred. When you withdraw the money, it’s tax-free. A tax-free income can be very beneficial in retirement.

In 2024, you can contribute $7,000 to a Roth IRA. If you’re over 50, you can contribute $8,000. However, there are income limits for the contributions. Individuals who make over $161,000 can’t contribute.

Thanks to the 2017 tax cut, there are some additional ways you can contribute to a Roth IRA. I cover four ways you can get money into Roth accounts in this episode of Retire with Ryan.

You will want to hear this episode if you are interested in... * [1:34] How to make a traditional Roth IRA contribution * [4:06] Option #1: The Backdoor Roth IRA * [8:06] Option #2: Contribute to a Roth 401K * [9:16] Option #3: Do a Roth conversion * [13:17] Option #4: A Mega Backdoor Roth IRA

Option #1: The Backdoor Roth IRA Let’s say you’re contributing to a Roth IRA indirectly (I talked about this in episode #176). To do that, you have to set up both a transitional and Roth IRA with the same company. Then, you make a non-deductible contribution to your traditional IRA. After that, you fill out a request form to convert that money to the Roth IRA. They’ll move it for you. What’s the biggest mistake you have to avoid when doing this? Listen to find out!

Option #2: Contribute to a Roth 401K If you have the option to contribute to a Roth 401K, use it. Why? Because there are no income limits on who can contribute to a Roth 401K. You could make well over the limits to contribute to a Roth IRA and still make a contribution. In 2024, you can contribute $23,000 to a Roth 401K or $24,500 if you’re over 50.

Option #3: Do a Roth conversion Currently, everyone can convert money in a traditional IRA or 401K into a Roth IRA or 401K. Let’s say you have $100,000 in an IRA that you want to convert. You’d have to pay Federal and State tax on the $100,000 you’re converting plus any other earned income for the year.

When would this make sense? You don’t have to pay a 10% penalty on the conversion if you’re under 59 ½. Secondly, if you think you’ll be in a higher tax bracket in retirement, and don’t need access to the money now, it might make sense to roll it over. It will have time to make back the money you had to pay in taxes upfront.

But your plan has to offer a Roth 401K. You’d choose the amount you want to convert from the traditional IRA to the Roth 401K. You’d pay taxes on the amount you’re converting. 40% of 401K plans offer this feature. But you have to consider if the conversion will push you into a higher tax bracket.

Option #4: A Mega Backdoor Roth IRA Some 401K plans allow contributions above the traditional $23,500 limit. The IRS has a total pension profit-sharing contribution limit. For 2024, that number is $69,000. That’s the total that your employer can contribute to your retirement plan. Let’s say you and your employer contribute $30,000.

Because you haven’t hit the maximum, there’s an additional $39,000 that can be contributed to your 401K as an after-tax contribution. Then you have to convert it to your Roth account. That’s the Mega Backdoor Roth IRA. If you’re over 50, you can also contribute the additional $7,500 catchup.

Government 457 plans and most 403B plans don’t allow this after-tax contribution. Many 401K plans do.

How do you get the most out of that contribution? Find out in this episode!

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Fiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial Advisor * 7 Backdoor Roth IRA Mistakes to Avoid * How a Mega Backdoor Roth IRA Can Accelerate Your Retirement Savings

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One of my favorite ways to save for retirement is through a Health Savings Account (HSA). Too many people overlook a health savings account as a great way to save for retirement and healthcare costs. So how do you get the most bang for your buck out of your HSA? I share some simple strategies that very few people employ in this episode.

Disclaimer: I don’t work for Fidelity and they do not compensate me for my reviews. I simply believe it’s a great option for my clients.

You will want to hear this episode if you are interested in... * [2:14] What is an HSA? * [4:03] The tax benefits of an HSA * [4:59] Why put money into an HSA * [9:17] The bucket approach with HSAs * [10:23] How to grow your HSA * [13:48] Action steps

The benefits of an HSA HSA plans are considered a triple-tax-free retirement account. When you contribute money to the plan, you get a tax deduction on the contributions (reducing your taxable income). The money in the HSA can be invested and grow tax-free. When you take the money out to use it for qualified expenses, it’s tax-free. No other retirement account gives you this benefit.

Let’s assume your HSA is offered through your employer. A good HSA is one that allows you to buy individual stocks and bonds or mutual funds at a low cost. If they don’t offer this, you may want to move to another HSA provider. Outside of employer-sponsored HSAs, my favorite provider is Fidelity.

If you’re just getting started and you’re not ready to invest the money (it’s being saved for healthcare expenses) you want to at least be earning interest. If you don’t choose the stocks, bonds, or mutual funds you want to invest in, your money is automatically swept into a money market option (with rates around 4.5%).

How to grow your HSA In 2024, a single person can contribute $4,150 to an HSA. If you’re eligible for a family HSA, your limit is $8,300. If you’re over 55, there’s a $1,000 catch-up allowance per year. I would max out your HSA every year and prioritize it beyond your 401K.

You want to let the money grow so that you’re only spending your gains in the future. That’s why you want to pay most HSA-related expenses out of pocket—not with your HSA. The biggest mistake I see is people spending through their HSA money immediately. When you do that, you won’t see tax-deferred growth. So what do you do instead?

If you can, track your expenses on a spreadsheet and keep your receipts. When I pay medical bills, it’s entered into my spreadsheet. Let’s say my family spent $15,000 on medical bills over the last six years and my HSA has $30,000 in it. If I wanted to, I could reimburse myself at any point in time for those expenses, tax-free.

Once you turn 65, you can use the money in your HSA for any expenses. It acts just like a 401K. I share my whole strategy in this episode—don’t miss it.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Fiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial Advisor * Qualified Medical Expenses (per the IRS) * Fidelity HSA

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Will your benefits be there when you need them the most? If so, should you collect your benefits as soon as possible? This is something I’m frequently asked, so much so that I decided it was time to address it. So in this episode of Retire with Ryan, I’ll cover how Social Security works, how long Social Security will remain solvent, and whether or not you should collect early.

You will want to hear this episode if you are interested in... * [1:52] How does social security work? * [4:23] Social Security solvency report * [6:10] What are the options? * [10:24] Are there enough people paying in? * [11:25] Should you wait to collect Social Security?

How does social security work? Every dollar you earn—up to an annual maximum amount—is taxed for Social Security and Medicare. This is known as the FICA tax. You pay 6.2% of your income up to $168,600. The company you work for also pays 6.2%.

If you’re self-employed, you pay both portions. The amount you earn over $168,000 isn’t subject to the FICA tax (but is subject to the Medicare tax). The limit is adjusted upward annually.

The money is used to pay current Social Security beneficiaries their monthly check. When social security first started, 40 people were paying into the fund to every one person collecting. That ratio is now closer to 2-to-1.

The initial surplus was put into the Social Security Trust Fund to pay for future benefits. Now, more funds are being paid out than taxes being collected. The government is covering the deficit from the trust fund. This is why people are worried that Social Security will go broke.

Social Security solvency report Each year, a report is issued on the solvency of Medicare, Social Security, and other social systems. It states that, unfortunately, Social Security and Medicare programs both continue to face significant financing issues.

What else does it say? The Old-Age and Survivors Insurance (OASI) Trust Fund will be able to pay 100 percent of the total scheduled benefits until 2033. After this, 79% of scheduled benefits will be paid annually.

If nothing is done in the next nine years, starting in 2033, recipients will see a 21% reduction in their benefits. This would be catastrophic for most people.

How can we solve the solvency problem? Most retirees get 40% of their income from Social Security. Congress must do something to make sure people receive the same benefits. What can they do?

• Raise the Social Security earnings limit: They could raise or do away with the annual cap and tax everyone on their entire annual income.

• Increase in the percentage that’s paid in: Instead of 6.2%, they may raise the FICA tax to 7.2% or 8%.

• Increase in the age of retirement: Full retirement age for someone born after 1960 is 67. They may raise the age to 68, 69, or 70.
• Increase the taxation of benefits: Social Security benefits are taxed based on your earned income in the tax year you’re receiving your benefits. Benefits weren’t taxed in the past. But in 1983, Social Security was made taxable.
• Changing the cost-of-living adjustment calculation: In 2024, the COLA was 3.2%. With the high inflation we’re experiencing, this adjustment gives people a chance to have their income keep pace with inflation.
• Part of Social Security money could be set aside and invested in stocks/bonds: This is a quite unpopular proposition that some people believe is too risky.

Congress needs to decide what they’re going to do and pass a bill into law. However, Congress tends to wait until the last minute to get things done. The last big change was in 1983. Hopefully, the next change will make the system solvent for longer.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Fiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial Advisor * Status of the Social Security and Medicare Programs (2024) * Cost-of-Living Adjustment (COLA) Information for 2024 * How Medicare Enrollment Impacts HSA Contributions * Changes to the Social Security Cost of Living Adjustment in 2023

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What are some of the biggest tax mistakes you should be avoiding when you file taxes? CPA Steven Jarvis has worked on thousands of tax returns. He focuses on helping people who have a long-term focus. He wants to make sure his clients only pay every dollar they owe and nothing more. It’s not about getting a big tax return. It’s about looking at the long-term picture and being proactive. We dig in and dissect the top tax mistakes you need to avoid in this conversation.

You will want to hear this episode if you are interested in... * [3:02] Making proactive choices to impact your taxes * [4:47] Learning about the foreign tax credit * [6:43] Rollovers from 401Ks to IRAs * [11:01] Equity compensation and severance pay * [13:07] Managing advanced charitable giving strategies * [21:10] What you need to know about HSAs * [26:32] Pay what you owe—and nothing more

Rollovers from 401Ks to IRAs You’ll likely roll over a 401K to an IRA only once or twice in your life. In theory, it should be simple—as long as the rollover is treated as a non-taxable event. It needs to be reported on a 1099-R form, which can be confusing. Tax-adjacent events go on your tax returns but you should not be taxed on them.

If you’re working with a tax professional, you need to communicate that you’re doing a rollover. Before the tax return is filed, make sure you look it over to see if your income changed. If it has—and it shouldn't have—a rollover being improperly filed may be the culprit.

Managing advanced charitable giving strategies A qualified charitable distribution (QCD) allows you to make a charitable contribution directly from an IRA to a charity. If you donate $1,000, you may save $200–$300 in taxes. If it’s a charity that you care about, great. But if you’re not charitably inclined, spending $1,000 to save $300 doesn’t make sense.

But there are some other tax benefits. A QCD comes out of your income before your adjusted gross income is calculated. Why does that matter? Your adjusted gross income is part of the calculation to determine how much you pay for Medicare. Reporting this correctly is key.

Most custodians don’t report how much money went to a charity because the IRS hasn’t created a way for them to do it. That’s why you (or your financial planner) must provide this information when your taxes are filed. I will send a breakdown of QCDs, distributions, etc. to my clients so they can report it properly.

What you need to know about HSAs Steven sees people penalized for over-contributing to HSAs because the form (8889) is confusing and people fill it out incorrectly. That’s the #1 thing you have to watch out for with these.

One of the advantages of an HSA is that it can grow tax-free. If you can pay medical expenses from another source while funding the HSA, you’ll also get a tax deduction. If you don’t need the money for qualified medical expenses down the road, you’ll just have to pay taxes on the money (which you can remove at age 65 without any penalties).

If you keep track of your HSA-eligible expenses as you go, and have sufficient documentation, you can also request reimbursement for things that happened in the past.

What other issues does Steven find himself correcting frequently? Learn other tax mistakes to avoid in this episode.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Retirement Tax Services Podcast * Steven’s book, “Don’t Get Killed on Taxes” * Connect with Steven on LinkedIn * Retirement Tax Services

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What are the current trends with ETFs? What’s happening in the fixed-income market? How can investors tackle current challenges? Matthew Bartolini, CFA, CAIA—the head of ETF Research at State Street Global Advisors—joins me to dissect the ETF market and how investors can handle volatility.

Matthew believes the ETF market will only continue to grow and create opportunities for long-term wealth. He shares how to navigate the factors that impact the market—including Federal Reserve policy, elections, and general trends—in this episode of Retire with Ryan.

You will want to hear this episode if you are interested in... * [1:30] Learn more about Matthew and State Street * [2:27] The research on investing and election years * [4:54] The current trends in Exchange-Traded Funds (ETFs) * [9:20] What’s happening in the bond market * [11:21] Balancing risks while prioritizing diversification * [13:52] Understanding volatility and yield curves * [15:37] Why not put all of your money into corporate bonds? * [17:19] The uncertainty we’re facing with the Fed * [20:42] Build a strong foundation for your future

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Connect with Matthew Bartolini on LinkedIn * ETF Costs and More with Matthew Bartolini * Advanced ETF Concepts with Matthew Bartolini * Elections and Equities: The Impact of the US Election on Sector Investing * Get more information on trends at SSGA.com

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How do you know if your financial advisor is delivering value? Is seeing a financial gain in your investments the only metric you should use? I’ve identified four key areas where your financial advisor should be delivering value to you: Awareness of costs and fees, performance of your portfolio, financial planning benefits, and communication.

I’ll cover each of these areas in detail in this episode. I’ve also included a checklist you can use to make sure your current financial advisor is delivering value.

This is Part 5 of a five-part series about financial planners to celebrate the release of my first book, “Fiduciary: How to Find, Hire, and Establish a Trusted Partnership with a Fee-Only Advisor.”

You will want to hear this episode if you are interested in... * [3:03] Area #1: Awareness of costs and fees * [9:25] Area #2: How your investments perform * [15:32] Area #3: The financial planning provided * [17:54] Area #4: Communication

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Head to RetireWithRyan.com to get this free checklist

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What should you expect once you’ve hired a fee-only financial advisor? Fee-only financial advisors typically offer financial planning, investment management, or a combination of both.

In this episode, I’ll cover what each process will be like because what you’re hiring your financial advisor to do will determine how your experience will be (and what the relationship will look like).

This is Part 4 of a five-part series about financial planners to celebrate the release of my first book, “Fiduciary: How to Find, Hire, and Establish a Trusted Partnership with a Fee-Only Advisor.”

You will want to hear this episode if you are interested in... * [0:48] How to Find and Hire a Financial Advisor * [2:02] What is financial planning? * [3:36] The financial planning process + experience * [9:56] Understanding the implementation schedule * [12:37] The investment management process + experience * [27:15] What we’re covering in part 5

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Fiduciary: How to Find, Hire, and Establish a Trusted Partnership with a Fee-Only Advisor

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How do you find a fee-only financial advisor who’s the right fit for you? I’ve outlined a detailed process that you can use to not create a list, research your list, and interview and hire the perfect fit for you. I’ll cover it all in this episode.

This is Part 3 of a seven-part series about financial planners to celebrate the release of my first book, “Fiduciary: How to Find, Hire, and Establish a Trusted Partnership with a Fee-Only Advisor.”

You will want to hear this episode if you are interested in... * [1:00] What we covered in last week’s episode (Part 2) * [4:05] Step #1: Compile a list of financial advisors * [9:46] Step #2: Research the list you’ve compiled * [15:00] Step #3: Interview your final list of advisors * [23:33] What we’re covering in Part 4 of this series

Step #1: Compile a list of financial advisors To compile a list of fee-only financial advisors, you need to ask yourself some important questions:

• Do you want to work with a local advisor that you can meet with in person? Are you willing to work with someone over Zoom or the phone?
• Is there a specific specialty that you’re seeking? Do you need help with retirement planning, college planning, or business planning? Many advisors specialize in narrow niches (mine is retirement planning for people over 50).

Unfortunately, there isn’t one website you check out to find all of the fee-only financial advisors in the United States.

However, one of the resources I like to use is the Certified Financial Planner Board of Standards website. This is the governing body through which people obtain their CFP certification.

The only downside of the CFP board is that they allow both fiduciary and non-fiduciary advisors to become members. It’s difficult to act as a fiduciary if you’re a broker or carrying an insurance license. If you do work with a CFP, I always recommend working with one that’s fee-only.

You can use any of the sites in the resources below—filtered by location and specialty—to compile a list of potential options.

Step #2: Research the list you’ve compiled Start by heading to a financial planner’s website and poking around a little. If they state that they’re a fee-only financial advisor, confirm that.

1. What do they offer? Do they offer financial planning only? Or do they only offer ongoing advice and investment management?
2. Research their background by using BrokerCheck. You don’t want to find them there. Instead, you’d hope to see that they were previously registered (but no longer are).
3. Head to Investment Adviser Public Disclosure to see if they’re a Registered Investment Advisor. They can be registered as brokers and insurance agents as well as an IAR.
4. Look up the specific firm and find their “ADV.” The ADV is a disclosure document that every RIA has to file. This is an easy way to find out if they’re a broker, an insurance agent, or if they have any other conflicts of interest.
5. Look up the individual financial advisor. Download the report to look at their work history and any disclosures or complaints that they’ve had.

Once you’ve done this, it’s time to vet your top choices. Head over to my website for the full list of 10 questions that you must ask every potential advisor.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * “Fiduciary: How to Find, Hire, and Establish a Trusted Partnership with a Fee-Only Advisor,” * The National Association of Personal Financial Advisors * The XY Planning Network * The Fee-Only Network * Garrett Planning Network * CFP Board * BrokerCheck * Investment Adviser Public Disclosure * The Fiduciary Pledge

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What are the three different types of financial advisors? Why do I believe a fee-only financial advisor is the best? If you’re considering hiring a financial advisor for the first time—or questioning if your current advisor has your best interests at heart—don’t miss this one.

It’s part 2 of my series in which I’m covering some of the topics in my upcoming book, “Fiduciary: How to Find, Hire, and Establish a Trusted Partnership with a Fee-Only Advisor.” The goal is to help my listeners find a financial advisor that they can trust.

You will want to hear this episode if you are interested in... * [2:09] Type #1: A stockbroker or insurance broker * [4:43] Type #2: Registered investment advisor * [7:32] Type #3: A fee-only investment advisor * [9:11] The three types of fee-only financial advisors * [11:43] The three ways fee-only financial advisors are compensated * [15:58] What’s being covered in episode #3 in this series

Type #1: A Stockbroker or Insurance Broker The first type of advisor is a broker (stockbroker or insurance broker). They’re compensated via commissions (the old-school way of doing business) and paid per transaction. The more transactions they make, the more turnover, and the more commissions they make.

Brokers are incentivized to change client’s portfolios—even if it’s not in their client’s best interest. They’re also obligated to do what’s best for their brokerage firm (to make them more money).

That’s why most financial advisors have moved away from the broker model. If you need to buy insurance, a stock, or a bond and you know this person isn’t a financial advisor, it’s fine to work with them—just don’t expect objective advice.

Type #2: Registered Investment Advisor and Broker A Registered Investment Advisor is someone who’s registered with the state they do business in or the SEC as an investment adviser representative of a firm. They work with clients on a fee basis. However, these financial advisors are also licensed as a stockbroker/insurance broker. Because brokers don’t have to disclose these conflicts of interest (currently), you don’t know if they’re acting as a broker or fee-only financial advisor.

Type #3: A Fee-Only Investment Advisor A fee-only investment advisor is only compensated by the fees their clients pay them. They do not have a broker or insurance license. This is the best option for working with a financial advisor.

You know when you ask them a question, there will be no conflicts and they will be acting in your best interest. How do I know? Because a registered investment advisor has a legal obligation to put a client’s interest ahead of their own and must disclose any conflicts of interest.

There are typically three types of fee-only financial advisors:

1. Fee-only financial advisors that only do financial planning (retirement planning, business planning, estate planning, etc.). You take their advice and implement their recommendations on your own. They don’t manage any client portfolios.
2. Fee-only financial advisors that only do investment management. They provide investment advice and manage your portfolio. They do not do financial planning.
3. Fee-only financial advisors that offer both financial planning and investment management (known as a wealth advisor). Myself and my firm fall into this category.

How are fee-only financial advisors compensated?

• Hourly: Typically those who aren’t managing portfolios
• Flat Fee: This could be for ongoing investment management or project-based
• Assets Under Management (AUM) model: You’ll be charged a percentage of your overall assets (the standard is 1%) for annual ongoing wealth management that includes financial planning.

When you make more money, your financial advisor makes more money because their fee is tied to the value of your portfolio.

How do you know which option is the best for you? Learn more in this episode.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Preorder my book: Fiduciary: How to Find, Hire, and Establish a Trusted Partnership with a Fee-Only Advisor

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I’ve spent the last 18 months writing the first book, “Fiduciary: How to Find, Hire, and Establish a Trusted Partnership with a Fee-Only Advisor,” which will officially be published on May 28th. I wrote this book to help everyone find a financial advisor who will put their interests first. Why? I see too many bad financial advisors harming their clients.

With that in mind, I’m going to kick off a series of episodes on financial advisors that will run over the next five weeks. I’ll cover the different types of financial advisors and what they do. I’ll share why the fiduciary model is best. I’ll even cover how to find your ideal advisor, what to expect once you hire one, and how to ensure that your partnership is delivering value.

You will want to hear this episode if you are interested in... * [0:40] Preorder a copy of my book! * [3:02] What is a financial advisor? * [4:34] What the term “fiduciary” means * [8:06] What can financial advisors do? * [10:59] Reasons to hire a financial advisor * [12:35] Do you need a financial advisor? * [18:13] What I’ll cover in the next episode

What is a financial advisor? According to Wikipedia, “A financial advisor is a professional who provides financial services to clients based on their financial situation.” Forbes says that a financial advisor is a professional “Who is paid to offer financial advice to clients.”

Financial advisors can use many titles, such as financial planner, financial consultant, wealth manager, wealth advisor, investment manager—and so on. I’m guilty of this as I most often use the moniker, “Wealth advisor,” because I help clients with both investment management and financial planning.

Not all financial advisors are fiduciaries. “Fiduciary” is an important term that most people aren’t familiar with. A fiduciary doesn’t receive commissions. Instead, they’re only compensated by the fees their clients pay them to better represent their interests.

In essence, a fiduciary is a trusted advisor who acts in their client’s best interest. You’re legally obligated to put your client’s interests ahead of your own (and disclose any conflicts of interest you may have).

There isn’t a clear path or training to become a financial advisor. There are no higher education requirements. There’s no experience required. There’s no standardization of titles. My goal with this series is to educate you so that you can get what’s best for you—and your money.

What can financial advisors do? Financial advisors can help with many different aspects of finances, which is also why they go by numerous titles:

• They give investment management advice or manage portfolios.
• They can help you with retirement planning, estate planning, and legacy planning.
• They can help you with tax planning by looking at projected income and helping you decide how you can minimize your tax burden.
• A financial planner can help you with insurance planning and deciding if you'll need disability insurance or long-term care in the future.
• They can help you decide how to save for your kid’s college expenses.
• They can guide you with overall budgeting and cashflow planning.
• They can help you with determining a plan for paying off debt.
• They can help you buy/sell a business and set up business retirement plans.
• If you need a financial coach, they can meet with you regularly to see how you’re progressing toward your goals.

These are just a few of the ways a financial planner can assist you. Financial advisors can help you navigate any major life decision. They keep their finger on the pulse of the financial industry. They have experience managing numerous life scenarios to help you avoid mistakes and take advantage of opportunities. A good financial advisor is an indispensable ally in the growth and preservation of your assets.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Preorder my new book on Amazon

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Have you inherited an IRA from a non-spouse who passed away after 1/1/2020? Beneficiaries of pre-tax retirement accounts have always had to pay taxes on what they inherit. However, on 1/1/2020, the SECURE Act was passed, changing the annual amount that beneficiaries would have to withdraw. Beforehand, non-spousal beneficiaries could:

1. Cash out the account in one lump sum and pay taxes on that amount
2. Take the account out over five years and pay taxes on it
3. Take distributions the year after the account owner passed away and take withdrawals over their lifetime (a stretch IRA)

Most non-spousal beneficiaries must empty their inherited account within 10 years following the original owner's death (there are some exceptions for someone who is disabled, the chronically ill, those who are within 10 years of age of the deceased, and minor children).

Unfortunately, the IRS made some changes. Learn what it is—and if it impacts you—in this episode of Retire with Ryan.

You will want to hear this episode if you are interested in... * [1:50] My on-demand Retirement Readiness Review Course * [2:16] What’s new with inherited IRAs? * [5:56] The IRS announcement about required minimum distributions * [9:32] The IRS changed the penalty for missing IRA distributions * [10:07] IRS Notice 2044-25: The RMD for 2024 is being waived * [11:13] What should you do with this information? * [13:04] What if you inherited a Roth IRA?

The IRS announcement about required minimum distributions (RMDs) Everyone thought that non-eligible beneficiaries who opted for the 10-year window could choose how to withdraw the funds (as long as the account was emptied). We thought that you could minimize distributions in years where their income was higher and take higher distributions when their income was lower, choosing when to pay taxes on the account (and avoiding being in a higher tax bracket).

Unfortunately, in February 2022, the IRS issued regulations to reflect the changes in the SECURE Act. They divided non-eligible beneficiaries into two groups:

1. People who inherited an account from someone who passed away before they reached their RMD age.
2. Someone who passed away after they reached their RMD age.

If you inherit an IRA from someone who hadn’t yet reached their RMD age could wait until the 10th year to take distributions. However, if the person died after they’d started taking RMDs, the beneficiary would have to take distributions out every year (continuing the distributions of the original owner).

Thankfully, the IRS extended some relief and said if you were supposed to take RMDs in 2021–2024, the requirement would be waived.

The IRS also changed the penalty for missing IRA distributions from 50% and reduced it to 25%. If you missed a year where you were supposed to take it—as long as you make up the difference in two years—the penalty would be reduced to 10%.

What should you do with this information? It’s time to do some tax projections of your future income. If you’ve inherited a retirement account, you must deplete it in the next 10 years. If you anticipate being in a higher tax bracket in the future, it may make more sense to take a distribution this year in a lower tax bracket.

If you inherited an IRA in 2020, you still have seven years left to empty the account. How will it impact your taxes? Where will a distribution land you on the tax bracket scale?

What if you inherited a Roth IRA? Listen to hear how required minimum distributions work for an inherited Roth IRA!

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * New Beneficiary IRA Distribution Requirements, #180

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If you are divorced and approaching 62, you may qualify for social security benefits based on your ex-spouse's earning record. But who qualifies? When can you collect it? How much can you collect? Does your ex-spouse find out? I’ll answer the things you need to know in this episode of Retire with Ryan.

You will want to hear this episode if you are interested in... * [1:11] Sign up for Retirement Readiness Review * [1:46] Divorce and social security * [3:12] What makes you eligible for the benefit? * [6:28] Other things you need to know * [8:06] How much can you receive? * [11:49] What if your ex-spouse is deceased? * [13:51] How to apply (and what you need) * [16:43] What should you do if you’re divorced?

What makes you eligible for the ex-spousal benefit? You’re eligible if:

• You were married at least 10 years
• You haven’t remarried
• Your ex-spouse is 62 or older and eligible for benefits
• The divorce occurred at least two years prior to applying
• Your ex-spouse doesn’t need to have filed for benefits

Your own benefit cannot be higher than the spousal benefit. That simply means that you’re able to apply for your benefits and the spousal benefit and choose the higher of the two. You’re eligible for up to half of your ex-spouse's benefit or your own.

What else do you need to know?

• Benefits for current or other ex-spouses are not affected. If your ex-spouse is collecting, it won’t impact what they’re receiving.
• Secondly, your ex-spouse cannot stop you from claiming this benefit. They have no control over this.
• Divorce settlements have nothing to do with this. If you qualify, you’re entitled to the benefit.
• Lastly, any ex-spouse can claim benefits. Your spouse could claim up to half of your benefit as well.

How much can you receive? If you were born after 1960, your full retirement age is 67 or later. For anyone born before 1959, your full retirement age is 66 and 10 months. Every year before that the full retirement age decreases by two months. Why is this important?

To get the full 50% ex-spousal benefit, you have to wait until your full retirement age. If your full retirement age is 67 and you want to collect at 62, you’d get 32.5% of your ex-spouse’s full retirement benefit. If you waited until you turned 63, you’d get 35%. The percentage increases every year until it caps at 50% when you hit your full retirement age.

If you claim your benefit before your full retirement, there’s also a limit to how much you can earn and still receive the benefit. The earnings limit in 2024 is $22,320. That limit is in effect from 62–66. If you earn over that amount, your benefit will be reduced by $1 for every $2 you make over $22,320.

The year you retire, you can make up to $59,520 before your benefit is reduced by $1 for every $3 you’re over. Starting the month you retire, there’s no limit and you can receive your full benefits.

How does it work if your ex-spouse is deceased? This is known as a surviving divorced spouse benefit. The same eligibility rules apply—with a few changes:

• You can start climbing benefits as early as age 60 (with a reduction)
• You can apply for the survivor benefit as a restricted application and let your own benefit grow

If your benefit is more than half of your deceased ex-spouse’s benefit, you can collect the percentage you’re eligible for while yours continues to defer. Your benefit caps out at 70 at which point you’d collect your benefit.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Online social security calculator * SSA.gov

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Medicare is confusing and complicated. Most people nearing retirement age have likely heard numerous mistruths regarding when to get it, what it does for you, and so much more. That’s why I’m busting the 10 most commonly perpetrated Medicare myths so you’ll know how to discern fact from fiction—and put your mind at ease.

You will want to hear this episode if you are interested in... * [0:53] Sign up for my online course: Retirement Readiness Review * [1:21] Myth #1: You have to enroll in Medicare when you turn 65 * [2:57] Myth #2: You’re automatically enrolled in Medicare when you turn 65 * [3:55] Myth #3: Medicare will tell you when it’s time to enroll * [4:27] Myth #4: Medicare is free * [5:52] Myth #5: Your income levels impact whether or not you qualify * [6:28] Myth #6: Having COBRA allows you to delay enrollment * [7:16] Myth #7: You should enroll in Medicare Part A as soon as you can * [8:54] Myth #8: Medicare Advantage plans are expensive * [9:52] Myth #9: Medicare Advantage plans are better than Medigap plans * [11:42] Myth #10: Once you select a plan, you’re stuck with it

Myth: You have to enroll in Medicare when you turn 65 This is false. If you have job-based health insurance with a company that has 20 or more employees, you don’t have to sign up for Medicare immediately. You can wait to sign up until you stop working or you lose your health insurance. Why would you want to?

There may be excess costs you wouldn’t need to pay if you still have insurance through your employer. But if you’re self-employed or don’t have an insurance policy that covers more than 20 people, and you don’t want to sign up for Medicare, you’ll get hit with a late enrollment penalty.

Myth:You’re automatically enrolled in Medicare when you turn 65 You’re only automatically enrolled if you’re already collecting Social Security when you turn 65. Everyone else has to enroll during the three months before they turn 65 or the three months after their 65th birthday month. If you’re not going to enroll at 65, you have an 8-month window to enroll after your insurance coverage ends (or you’ll be subject to a penalty).

Keep in mind that Medicare will not tell you when it’s time to enroll. Though you’ll get a lot of advertisements in the mail for supplemental plans, Medicare will not send you a reminder. To enroll, you go to SSA.gov and click on “enroll in Medicare.”

Myth: Medicare is free Medicare Part A covers part of the cost of a hospital stay. As long as you or your spouse has worked for 10 years or more in the United States, Part A is free. However, Part B (which covers preventative care) starts at $174.70 per month.

Everyone pays the minimum premium and depending on your income level, you may pay far more. The premium may increase every year. There are many other expenses that Medicare doesn't cover.

Many people also say that you should enroll in Medicare Part A as soon as you can because it’s free. This makes sense—only if you don’t have a high-deductible insurance plan. But with high-deductible health plans, you’re typically eligible for an HSA.

As soon as you enroll in Part A, that disallows you—and your employer—from making contributions to an HSA. You also have to remove any contributions you’d made from the prior six months before enrolling.

I tackle a lot more myths you need to be aware of, so make sure you listen to the whole episode!

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel

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How can you protect your data and personal information from IRS scammers and criminals? Everyone is afraid of being audited by the IRS. Maybe you’re scared you may have filed your taxes incorrectly. Criminals take advantage of that fear to perpetuate their scams. But there are some simple things you can do to avoid falling victim to these scams. I’ll share 7 tips you can use to protect yourself from IRS scammers in this episode!

You will want to hear this episode if you are interested in... * [1:15] Sign up for the Retirement Readiness Review! * [2:42] Tip #1: The IRS only reaches out through the mail * [4:43] Tip #2: Be suspicious of emails from the “IRS” * [6:26] Tip #3: Don’t send checks through the mail * [7:44] Tip #4: Protect your personally identifiable information (PII) * [8:49] Tip #5: Pay your bills electronically when possible * [9:15] Tip #6: Request direct deposit for paychecks * [10:14] Tip #7: Set up two-factor authentication

What you need to know about the IRS Did you know that the IRS doesn’t make phone calls or leave voicemail messages? They won’t send a text or contact you on social media. They don’t use email either. If the IRS has a problem with you, they’ll send you a letter.

So if you get a phone call saying someone is from the IRS and they need more information from you, hang up, and block their phone number (and report it as spam).

These scammers threaten people, saying they’ll lose their immigration status, driver’s license, business license, or they’ll call law enforcement to arrest them. Don’t fall victim to these threats.

If you do receive a letter from the IRS, don’t panic. The majority of the time it’s a simple fix that your CPA or financial advisor can help you navigate. It may be as simple as a missing 1099.

Be suspicious of emails from the “IRS” Anytime you get an email from someone unfamiliar, hover over the address of the email to see who it’s from. You’ll see mistakes in the email addresses (often misspellings) from scammers. Make sure you never click on any links in an email before you know it’s from someone or a business you trust.

If you click on one of these links, you’re allowing the scammer into your computer or phone. They can install spyware or hijack your files. They’ll lock your files and demand a ransom to get them back. 10 years ago, this happened to me.

Protect your personally identifiable information (PII) PII is your social security number, DOV, driver’s license, bank account information, etc. Don’t email anything that contains your PII—even if it’s to someone you know and trust. If your email is ever hacked, the hackers can access this information and use it to open accounts in your name. Most financial firms offer upload options such as Box or ShareFile.

One of the best things you can do to protect your information is to set up two-factor authentication whenever you can. Two-factor authentication requires that you offer two ways of proving that it’s you logging in. You may need to provide a username, password, and PIN.

You can use an authenticator app that provides a PIN that resets every 30 seconds. Or, you can have a pin texted to you. If a scammer can steal your username and password, they probably can’t breach the two-factor authentication.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * ShareFile * Box * USPS Informed Delivery

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Do you usually get a tax refund? What do you typically do with your tax refund? Do you have it earmarked for a specific purpose? As we’re inching closer to the tax filing deadline, I thought it would be interesting to share some ways you can wisely invest your tax refund. I’ll cover 9 ideas you can consider to make good use of your money.

You will want to hear this episode if you are interested in... * [1:42] Why are you getting a tax refund? * [2:36] Idea #1: Save it for next year's taxes * [3:03] Idea #2: Increase your savings * [4:05] Idea #3: Pay down high-interest debt * [4:49] Idea #4: Contribute to a Roth IRA * [5:12] Idea #5: Home improvement projects * [6:02] Idea #6: Increase retirement contributions * [7:08] Idea #7: Plan a vacation * [7:51] Idea #8: Invest in yourself * [8:32] Idea #9: Buy US Savings Bonds

Why are you getting a tax refund? If you’re getting a tax refund, you should be asking why. You’re giving the government a free loan for the entire year. You aren’t paid interest when you receive a refund. Why not investigate if you can increase your withholdings, so you can keep more of your money? If you are going to get a refund, here are some ways you could invest it.

9 ideas for investing your tax refund 1. Save it for next year's taxes: If you think your taxes will increase because your income fluctuates, it might be a good idea to set the money aside in a short-term CD or money market. 2. Increase your savings: You need 3–6 months of living expenses in an emergency fund (which could be kept in a short-term CD or money market) in case you lose your job or another unexpected situation arises. 3. Pay down high-interest debt: If you’re carrying credit card or student loan debt in excess of 10%, pay it off as soon as possible. Why 10%? Because it’s hard to earn more than 10% over time in the stock market as an average annual return. 4. Contribute to a Roth IRA: If you don’t have a Roth IRA, you can set one up (provided you qualify) and start contributing to it. 5. Home improvement projects: Improving your kitchen or bathroom(s) can increase the value of your home down the road. Even an outdoor patio or deck space may be a good investment to get a return on your money. 6. Increase retirement account contributions: If you still have room to contribute to your 401k, you can increase what you contribute through payroll contributions. Or, you can shift your tax refund into the account over time. If you contribute more throughout the year, less will be sitting with the IRS for you to get back in a tax refund. 7. Plan a vacation: We don’t know what the future holds. If you’ve wanted to plan a specific trip for a long time, why not take some of this money and invest it in a trip? 8. Invest in yourself: Can you take a course? Get a designation in your field? These things can pay large dividends down the road, especially if they help increase your income or get you closer to a job promotion. 9. Buy US Savings Bonds: The interest they pay is based on a fixed rate when you buy the bond and a variable rate tied to the consumer price index. You’d always get a minimum for the life of the bond and a variable rate every six months.

Listen to the whole episode for a more in-depth look at each idea!

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * I bonds interest rates

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Do you own stock in the company that you work for in your 401K? Net unrealized appreciation could potentially save you a significant amount of money on your taxes when you start making withdrawals. I’ll share how to take advantage of the process as well as mistakes to avoid making in this episode of Retire with Ryan.

You will want to hear this episode if you are interested in... * [1:00] Sign up for my Retirement Readiness Review! * [1:26] What is net unrealized appreciation? * [3:31] How net unrealized appreciation works * [5:05] How to process the distribution * [7:41] Where people run into problems * [10:09] Net unrealized appreciation when you aren’t retired * [12:23] Reminder: Sell the stock in a lower tax bracket

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel

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The Federal Reserve Met on 3/20/24 to discuss monetary policy and whether or not to raise or lower interest rates. They announced that they won’t make any changes. Most experts believe that they’ll lower interest rates in June.

So should you start selling your money market funds and short-term bond funds? When should you do it? Should you move the money into something that could benefit from decreasing interest rates? In this episode, I’ll discuss why we invest in money market funds, if you should move your money out, and where you should consider shifting it.

You will want to hear this episode if you are interested in... * [1:13] Sign up for the Retirement Readiness Review! * [1:41] Why should you invest in money market funds? * [4:33] Why move money out of your money market fund? * [6:30] What might make money market rates fall? * [8:42] What do you buy to replace money market funds?

Why should you invest in money market funds? Money market funds should be considered part of your overall asset allocation. We look at money in terms of buckets. You need some money in risky buckets to grow your money to pace against inflation (stocks, commodities, real estate investment, high-yield corporate bonds, etc.). The other money is your “safe” money (cash, money market funds, government bonds, short-term corporate bonds, etc.).

I’ve been recommending that you move money from your bank or other low-yielding accounts and move them into money market funds for the last year and a half. Why? Because you can now earn about 5% on your money market funds (depending on where you keep it). We typically use the Schwab Value Advantage Money Fund® (SWVXX). And as of 3/20/2024, its current yield is 5.18% with an annual expense ratio of 0.340%.

Money market funds are relatively low-risk and liquid. They trade for a dollar value that rarely changes. What changes? The interest rate that the funds pay (which can reset as often as every seven days).

Why move money out of your money market fund? You invest in a money market fund to help you earn more interest on your safe money. You want to choose what gives you the best rate possible. The rate you get is dependent on duration—the length of time that you’re investing your money.

Currently, looking at the treasury yield curve, you’ll earn more interest by having your money in shorter-term treasuries than you would versus long-term treasuries. Eventually, the curve will reverse and long-term investments will yield more interest. That’s when you’d consider reducing the amount of money out of money market funds.

Until the Fed raised interest rates in 2022, money markets were paying almost nothing. As the Fed raised interest rates, the interest paid increased. What might make money market rates fall?

The primary driver is inflation. The Fed monitors inflation so they can make decisions about what to do with interest rates. Inflation has been high. The Fed doesn’t want to cut rates too quickly because it could trigger more inflation.

What could you buy to replace money market funds? How do you reduce your exposure? Listen to hear some ideas!

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * The 5-Step Portfolio Process, Ep #17 * Daily Treasury Yield Curve Rates * Schwab Value Advantage Money Fund® * SPDR® Portfolio Aggregate Bond ETF * SPDR® Portfolio Long Term Treasury ETF

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As we get closer to the tax filing deadline (April 15th), I wanted to talk about contributing to a Roth IRA or traditional IRA. In this episode, I’ll cover contribution and deduction limits, spousal IRAs, and non-deductible IRA contributions (and why you’d want to consider them).

You will want to hear this episode if you are interested in... * [1:16] Sign up for Retirement Readiness Review! * [1:49] Traditional IRA contributions/deductions * [6:45] Roth IRA contribution limits * [9:02] The spousal IRA * [10:22] Non-deductible IRA contributions

Traditional and Roth IRA basics Everyone with earned income can contribute to an IRA or Roth IRA (up until the filing deadline). Earned income includes wages, salaries, tips, and net self-employed income. Your spouse can contribute on your behalf if you don’t have earned income.

The max you can contribute is $6,500 (if under 50) or $7,500 (if over 50). You can split the money between a traditional or Roth IRA. If you’re looking for an additional tax deduction, you can contribute to a traditional IRA and get a tax deduction equal to the amount you contribute.

Do you have a retirement plan through your work (401K, 403B, 457 plan, etc.)? If you do, you have to look at your modified adjusted gross income (MAGI) to determine if you qualify to contribute. If you don’t have a plan through work, you can contribute the full amount.

With a Roth IRA, you don’t get a tax deduction on your contributions. But when you withdraw the money, the withdrawals are tax-free. To contribute to a Roth IRA, your MAGI must also be under certain limits.

I’ve linked documents in the resources that detail what each of those limits looks like for each filing status.

Non-deductible IRA contribution What is a non-deductible IRA contribution? It’s where you make a contribution to a traditional IRA up to the limit of $6,500/$7,500 but you don’t get a deduction on the contribution. Why would you want to do that?

1. If you want to pursue a backdoor Roth IRA. If you don’t have an IRA, SEP IRA, or Simple IRA money in your name at the end of 2023, you’d open a traditional and Roth IRA at the same company. You’d contribute to the traditional IRA for 2023. Then you move the money over to the Roth IRA (a tax-free conversion).
2. If you can’t do a backdoor Roth IRA, you can benefit from the tax deferral of a traditional IRA. Any taxes on the increase in value are deferred. You’ll pay tax on the gains when you make a withdrawal (but never on the principal). If you invested the money in a brokerage account, you’d have to pay taxes on an annual basis on any dividends, interest, or capital gains.
3. If you have a 401K through your company, you can roll the after-tax monetary gains to a traditional 401K (separating the contributions from your gains) and convert the contributions to a Roth IRA (similar to a backdoor Roth IRA).

What makes the most sense for you in 2023? Listen to learn more about each of the options.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Separating Post-Tax Money from a Traditional IRA, #181 * Amount of Roth IRA Contributions That You Can Make For 2023

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What is Indexed Universal Life Insurance? Is it something you should consider investing in? Are the rumors you’ve heard about it true? In this episode, Andy Panko (of Tenon Financial) and I dispel 7 myths that are circulating about UILs and we cover what you need to know to make an informed decision about the insurance product.

You will want to hear this episode if you are interested in... * What is Indexed Universal Life Insurance? [1:46] * Myth #1: It’s a secret the wealthy don’t want you to know about [4:30] * Myth #2: The IUL cost is lower than a well-managed mutual fund [7:34] * Myth #3: IULs can give you a tax-free retirement [10:18] * Myth #4: An IUL means you can be your own bank [12:20] * Myth #5: Life insurance is a tier-one asset for the banks [16:04] * Myth #6: IULs are better than 401k plans [19:31] * Myth #7: IULs are a “can’t lose” monetary asset [23:59] * Should you consider investing in an IUL? [28:24]

What is Indexed Universal Life Insurance? Indexed Universal Life Insurance is often pitched and marketed as a retirement income tool under a host of other names. It’s a complicated product, often sold via misleading information. At its core, It’s a life insurance policy with a death benefit that can build cash value within the policy.

You can take loans against it and money out of it. Some of the benefits can be used toward long-term care expenses. It can be a useful and multi-purpose product. However, misleading claims are often made about these policies during the sales process.

Myth: The IUL cost is lower than a well-managed mutual fund An IUL is a multi-decade-long product. It’s a lifetime commitment. The up-front fees are large. It can be more than 10% the first year and 6–8% beyond that. By the time you get to the 10th year, the fees can be lower (under 5.5%). I bought an IUL and the up-front costs were 17% for the first year.

When you blend it out over the life of the product, it will not be as low as a managed index fund. It’s not reasonable to expect. And you’re not actually invested in index funds—you get exposure through the insurance company buying options on the underlying index.

Myth: An IUL means you can be your own bank You aren’t borrowing money from a bank. And the money in the policy continues to earn interest. You can borrow against the IUL and use the money however you’d like. But it’s no different than if you took a home equity line of credit against your house. You still own the house and it’s full price appreciation but you have a loan collateralized by your house.

People will say that Walt Disney founded Disney because he borrowed against his whole life insurance policy. People insinuate that Disneyland wouldn’t exist without an IUL. All said and done, he took a $50,000 loan against his life insurance policy but it was only 0.66% of the total capital required to launch Disneyland. Life insurance wasn’t the missing link.

Myth: IULs are a “can’t lose” monetary asset The cash value of your account earns interest and it will never be lower than zero. However, you can’t own that cash value in isolation. There are annual fees associated with the policy. Even in the years where you get 0%, you have fees and costs that will cause your cash value to decline. That is still losing money.

Most of them also have a commitment period. If you want to walk away with your money, you’ll likely get charged a hefty fee to do so. If you hold the product for the rest of your life, you will in time have more cash value than you put in. But in the early years, you will have less money than you put in.

Insurance products are designed to be long-term. The people who sell these products are paid on commission. So surrender penalties reimburse the insurance company if the policyholder bails out early.

Should you consider investing in an IUL? Listen to hear what Andy factors into the decision-making process.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Andy’s website: Retirement Planning Education * Connect with Andy Panko, CFP®, RICP®, EA on LinkedIn * Tenon Financial

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On December 23rd, 2022, congress passed the SECURE 2.0 Act. Among the many changes, one of them had to do with 529 plans. You can now make tax-free and penalty-free rollovers from a 529 plan to a Roth IRA.

This became effective 1/1/2024. Before this, if you wanted to take a non-qualified withdrawal from a 529 plan (using the money for something outside of school expenses) the gain was subject to income tax and a 10% penalty. It’s similar to taking a withdrawal from an IRA.

If you have unused money in a 529 plan, it can be rolled over to a Roth IRA for the beneficiary of that 529 plan—tax and penalty-free. The added benefit is tax-free growth and tax-free distributions when they take money out down the road.

What other details do you need to know? Who qualifies for these rollovers? Learn more in this episode of Retire With Ryan.

You will want to hear this episode if you are interested in... * Sign up for the Retirement Readiness Review [0:56] * Tax-free and penalty-free rollovers [1:41] * What are the rollover rules? [3:16] * Questions the IRS still needs to answer [6:13] * Does every 529 plan provider allow rollovers? [8:01] * How do you make a rollover? [8:53] * Can you make a rollover? [10:38]

What are the rollover rules? There is a $35,000 lifetime rollover limit per beneficiary. However, you can’t roll over the entire amount at once. You’re still subject to the annual Roth IRA contribution limits for 2024 and beyond.

Someone under 50 can roll over $7,000 to a Roth IRA. If they’re over 50, they can roll over $8,000. If your child has already contributed $3,000 to their Roth IRA, you can only roll over $4,000. Here are some other rules to be mindful of:

• The 529 account needs to be 15 years old or older.
• The Roth IRA needs to be in the same name as the beneficiary in the 529 plan.
• The rollover must be a direct rollover (the 529 company makes a check payable to the Roth IRA company—you cannot take receipt of the money)
• Contributions and earnings on the contributions made on the last five years cannot be converted
• A 529 beneficiary needs to have earned income equal to the amount of money being rolled over (if your beneficiary is in high school and doesn’t have a job, you can’t do a rollover)
• There’s no adjusted gross income earnings limit

Questions the IRS still needs to answer What if the 529 account has been open for 15 years but you changed the beneficiary? Does the current beneficiary qualify? What if you change 529 companies during that time? When you hit the maximum of $35,000, can you change the beneficiary to someone else?

How does your state treat the rollover? Will it be taxed? Who is tracking the gains from contributions? These are some of the many questions that the IRS hasn’t clarified yet.

How do you learn if your 529 plan provider allows rollovers? There are hundreds of 529 providers and no blanket answer. Reach out to your specific provider. The plan I have with Fidelity can process the rollovers. How a rollover is done will vary depending on the provider. For the CHET plan, you complete a form and submit it to make the transfer.

Can you make a rollover? Should you make a rollover? Listen to hear my thoughts!

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * 529 plan distribution form (Connecticut) * The Connecticut Higher Education Trust 529 Plan

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What are some overlooked benefits of investing for retirement in a brokerage account? Why would you want to invest in a brokerage account in addition to a 401k or other retirement account? Shaun Jones—the President of Jones Fiduciary Wealth Management and author of “Unbrainwashed Investing”—shares 7 reasons to invest in a taxable brokerage account in this episode of Retire with Ryan.

You will want to hear this episode if you are interested in... * [1:53] A brokerage account gives you increased flexibility * [7:10] You have some control over taxes with a brokerage account * [9:56] One strategy for a brokerage account * [14:22] A brokerage account doesn't have required minimum distributions * [18:17] Understanding step-up in basis * [20:26] A brokerage account gives you liquidity * [22:20] Why a cash balance plan isn’t always beneficial

Some of the benefits of a taxable brokerage account You can only put so much into retirement accounts annually, by law. Once you’ve reached your annual limits, why not consider a brokerage account? Here are just a few reasons:

• Having money in a non-qualified brokerage account gives you flexibility. You can withdraw the money at any time (and don’t have to wait until 59 ½).
• You can earmark each brokerage account for different purposes
• You aren’t required to take minimum distributions
• These accounts are liquid and you can withdraw money at any time. It’s a nice tool to manage cashflow.

One of the biggest benefits is that it gives you more control over taxation.

The taxation of a brokerage account Gains, dividends, etc. that you receive in a brokerage account are taxable (versus a retirement account). Every dollar that comes out of a retirement account is taxable as ordinary income, which can push you into a higher tax bracket than you may want to be in.

Most people don’t think about how much of their retirement balance is actually there’s to keep. The IRS always gets to claim a portion of it. You have no idea how much you’ll end up owning because you don’t know what the tax laws will be then.

However, a brokerage account has the potential to reduce your effective tax rate in retirement. You have a lot of control over your taxable income between when you retire and when you start taking distributions. That’s where 90% of tax planning happens. You can carefully consider when to take distributions to lower your overall effective tax rate.

One strategy for a brokerage account A tendency toward index funds and passive investing will keep taxes and turnover low. Compared to other options, it’s a tax-efficient way to hold investments. If you hold an S&P 500 index fund and you’re continually dollar-cost averaging into it, you’re paying tax on the dividends (assuming it doesn’t create a high capital gain).

If you’re not selling, you’re not creating a capital gain. We usually advocate that our clients wait until they’re in retirement to sell that fund, especially if they don’t have a lot of other income and can stay in lower tax brackets.

We like to utilize tools that can project your average effective tax rate each year. It gives you a projection of what you’ll do if you don’t make provisions for tax management. If your effective tax rate will be 22% every year after taking RMDs, maybe you should trigger some at 15% or put money into a brokerage plan where you can control taxes.

Listen to hear the full conversation about what you need to know about taxable brokerage accounts and how they benefit you.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Holistaplan * eWealthManager * Unbrainwashed Success Podcast * Connect with Shaun on LinkedIn * Jones Fiduciary Wealth Management

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Are you aware of how your biases—both conscious and unconscious—impact your investment decisions? Brie Williams of State Street Global Advisors joins me in this conversation to talk not only about the impact of biases on decision-making but how to cultivate an awareness of your biases to change your behavior, ultimately leading to better decisions.

You will want to hear this episode if you are interested in... * [1:33] Brie’s role at State Street Global Advisors * [3:33] The role of emotion in decision-making * [7:00] How your mindset can influence behavior * [11:15] Common investor biases that influence decisions * [19:05] Ways you can manage your biases * [23:36] How to overcome anchoring bias * [30:38] Embracing resilience as an investor

Common investor biases that influence decisions What are the most common biases that impact decision-making? Most can be grouped into cognitive and emotional biases. Hindsight bias, confirmation bias, and anchoring bias are typically the most impactful cognitive biases in the realm of finance.

• Hindsight bias occurs when an investor tends to believe that after an event occurred that they predicted it. So when the market crashes they claim they “knew” it was going to happen.
• Confirmation bias is the tendency to seek out information that confirms an existing belief, often accompanied by ignoring contradictory information.
• Anchoring occurs when you rely too heavily on an initial piece of information and you anchor future decisions to that piece of information (i.e. you anchored to the price you bought a stock at).

Emotional biases stem from impulses or intuitions, heavily influenced by feelings. Examples are loss aversion and overconfidence.

• Loss aversion happens when an individual feels the pain of a loss far more intensely than the pleasure of gains. It might manifest by holding on to a stock too long hoping that it will rebound (but selling would be the rational choice).
• Overconfidence is a bias where an investor has an inflated belief in their ability to predict a market movement or winning investments. You’re likely to lean on your research while ignoring the things you can’t control, like changing market conditions.

We need to recognize that we all have conscious and unconscious biases. We need to gain self-awareness to reflect on how we approached past decisions. Self-reflection allows us to uncover blind spots and recognize patterns in decision-making. Brie points out this is always easier to do with an objective advisor.

How to overcome anchoring bias Anchoring bias comes into play when you’re failing to adjust to new information. Do you have a sunnier outlook or focus on the more negative side of the equation? You have to recognize that your life view will impact your definition of success. You need to focus on objectivity when you come across new information so you don’t overweight the past.

Mindset is just one factor of many that will shape your decisions and perceptions as an investor. How do you respond? Anchoring exists as a bias but it can be disrupted with practice. Mindfulness and how you approach decision-making is worth working on for a healthier construct for decision-making.

How do you avoid analysis paralysis? How can we close our behavior gap to improve decision-making to achieve better outcomes? Learn more in this thought-provoking episode with Brie.

Resources Mentioned * Listen To My Retirement Podcast * Watch Me On YouTube * Click Here To Schedule An Appointment * Share Documents Securely With MWM * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Connect with Brie Williams on LinkedIn * Episode #143: How Women can Build a Better Relationship with Money

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Last year’s Super Bowl set the record as the most-watched TV event in Nielsen rating history at over 150 million viewers. It’s hypothesized that this year’s Super Bowl is going to set a record for something completely different: The most amount of money bet on a Super Bowl. Why? Because sports betting is now legal in 38 states.

So if you’re one of the 68 million Americans estimated to bet over $23.1 billion on the Super Bowl this year, how will winning impact your income taxes? Learn what you need to be mindful of—and some fun Super Bowl XLVIII facts—in this episode of Retire with Ryan.

Disclaimer: Make sure whatever money you bet will not impact you financially if you lose. If you have a gambling addiction and need help, call 1-800-662-4357.

You will want to hear this episode if you are interested in... * [1:29] Sign up for my retirement planning course or workshops * [2:22] My prediction for Super Bowl XLVIII * [3:45] Fun facts about Super Bowl XLVIII * [5:44] How much does the Super Bowl make? * [ ] The ways people bet on the Super Bowl * [13:02] How much of your winnings are taxable?

How much does the Super Bowl make? The Super Bowl makes between $300 million and $1.3 billion a year. Much of the money generated is pocketed by the NFL. They receive 100% of ticket sales, millions of dollars from merchandise sales, and a lot of money from networks paying for broadcast rights for the game.

This year, Super Bowl ads will cost $7 million for a 30-second spot. This is the second year at the price. Super Bowl ads first cracked the million-dollar mark in 1995. For many companies, this ad spot is worth the cost because it gives them a broad reach to consumers.

How much of your winnings are taxable? If you know me, you know that I don’t gamble (I’d rather make a long-term investment in the stock market). I’ve only made one sports bet in my lifetime. It was in 2021 when FanDuel offered 55-to-1 odds of picking the Super Bowl winner. It was only for new users who’d never opened an account. They set the bet limit at $5, so you could win a maximum of $275.

The Buccaneers were favored to win that year. My wife and I each opened an account and each of us bet on a different team. When the Buccaneers won, we collected our earnings, closed our accounts, and have never bet since.

If you’re one of the $36 million expected to bet through legal means, how much of your winnings are taxable? If you bet through FanDuel or DraftKings and win more than $600 of net profit, you are legally obligated to report that. They’ll send you a 1099-MISC that you must report to the IRS.

If you receive the winnings through PayPal, you’ll likely receive a 1099-K form. If you don’t receive either of these forms, the IRS still expects you to report all of your income, regardless of the amount.

So what are my predictions? As of 2/7/24, my Super Bowl XLVIII prediction is that the Chiefs will win, 21-20. The 49ers are actually favored by two points. Check back to see how close my prediction is to the actual score!

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Sign up for my retirement planning course or workshop * Understanding your Form 1099-K * About Form 1099-MISC

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Before you think about when you’re going to retire there’s another question that should be addressed: Are you going to retire? It’s assumed that when you turn 62 or 65, you’re going to retire. And many people do count the days until they retire.

But many others love the careers they’re in and can’t imagine stopping. Their concern is that they’ll get pushed out the door. The bottom line is that age tells us nothing. No one is the same. So we can’t treat them the same.

That’s one of the concepts that Mitch Anthony explores in his book, “The New Retirementality,” and we’ll dive into it in this episode.

You will want to hear this episode if you are interested in... * [4:32] The history of the concept of retirement * [8:43] One topic we’ve underestimated * [11:57] Retirement is a life experiment * [15:30] The Retirementality Profile * [16:22] Is traditional retirement right for you? * [20:04] Don’t be afraid to start the conversation

Retirement is a life experiment Imagine waking up every day with nothing to do. You’ve played golf every day for six weeks and you’re bored. Your social life was wrapped in your job. 60% of people who retire go back to work part-time within a year of retiring. If your whole purpose is wrapped up in your job and you leave it, what drives you to keep pushing forward?

Mitch points out that most people spend more time planning a two-week vacation than they do their retirement. They assume it’s going to take care of itself. That’s why most people don’t have it all figured out on their first attempt.

What changes in the 24 hours from year 64 day 365 to year 65 day 1? Nothing. You’re the same person. But the world at large assumes that everything’s changed when you turn 65. The reality is that you need to plan for retirement.

The Retirementality Profile Mitch’s book includes some exercises that help you determine your vision for “retirement.” One of the first questions is “What have you observed watching other people retire?” What good examples have you seen? Which examples have become object lessons?

Is traditional retirement right for you? It’s a conversation you need to have with a retirement coach. It’s not a one-and-done conversation. Where do you start?

1. 5 years out: What are your thoughts about retirement right now? How do you want to spend your time? What does your ideal week look like? This is where you have the observation conversation.
2. Six months away: Are you prepared? What are you going to retire to versus from?
3. The retirement honeymoon: You’ve been retired for six months. How is it going? What’s not matching your expectations?
4. The reality check: You’re one year into retirement. What have you learned? Where is reality meeting your financial structure?

Most people only have the conversation of “Do you have enough money to retire?” You may have all of the money you need but lack purpose. Money will fund a purpose—but it won’t find one.

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Mitch’s book, “The New Retirementality” * My Retirementality Profile * ROL Advisor

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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As you enter retirement, tax planning is something that must be prioritized. A Qualified Charitable Distribution (QCD) can be a great tool in your arsenal to help you minimize the taxes you have to pay. So what is a Qualified Charitable Distribution (QCD)? How can it actually help you lower your taxes? In this episode, I’m going to cover what a QCD is, how you make one, and how it can help lower your taxes. I’ll also share a few examples of what a QCD might look like.

You will want to hear this episode if you are interested in... * What is a Qualified Charitable Distribution? [1:34] * How do you make a Qualified Charitable Distribution? [5:07] * How to note a QCD on your tax return [8:02] * How we process Qualified Charitable Distributions [9:19] * How can this help you lower your taxes? [10:48]

What is a Qualified Charitable Distribution? Let’s back up for a minute and talk about what a Required Minimum Distribution (RMD) is. When you turn 73 years old, the IRS requires you to distribute a portion of your retirement accounts and pay taxes on the money. That’s an RMD.

The Tax Cuts and Jobs Act in 2017 made a big change to standard deductions. It allowed many people to pay less in taxes—but it limited the amount of charitable donations you could deduct on your taxes. Because of this, charities saw a large decline in the amount of donations they received.

One way to increase charitable giving in a tax-friendly way is a Qualified Charitable Distribution. A QCD allows you to donate a portion of your RMD o a charity and not pay tax on the amount you donate.

For the last few years, you could donate up to $100,000 from your IRA and not have to pay taxes on it. Thanks to the SECURE Act 2.0, starting in 2024, the annual QCD limit has increased to $105,000 per year per individual.

How do you make a Qualified Charitable Distribution? When you’ve given to charities, you’ve likely given them cash or a check. You let your accountant know what you gave and they note it on your taxes. When you make a QCD, you need to contact your IRA custodian and they send money directly from your IRA directly to the charity of your choosing. I cannot emphasize enough: You cannot take receipt of the money first or it will be a taxable distribution.

Each custodian has a different process, but generally, you complete a form with the charity’s information (you’ll need the charity’s address and Tax ID number) and submit it. Secondly, most 501C3 charities can accept a QCD but you’ll want to confirm with them first.

People often improperly report a QCD on their taxes and end up paying taxes on them when they shouldn’t have to. Listen to learn how you can avoid making mistakes on your taxes.

How can a QCD help you lower your taxes? If your income is over a certain threshold, you’ll have to pay an additional amount of money on your Medicare Part B premiums. In 2024—for a married couple filing jointly—if your income goes over $258,000, you’ll have to pay double for your premium.

The standard premium per person is $174.70. You’d have to pay $349.90 per month per person. This IRMA charge kicks in if you’re just $1 over the limit. But if you make a QCD to a charity to keep you from going over the limit, it can save you premium costs.

I share some other need-to-know details—and get into the nitty-gritty details of how to note a QCD when you file your tax return—in this episode. Listen to learn more!

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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The SEC recently and historically approved 11 Bitcoin spot ETFs on January 10th. This is big news because now you can invest in Bitcoin through a brokerage account. On this episode, I’m discussing what this means for you, how you can invest in Bitcoin ETFs, and what to look out for if you're going to take that plunge.

You will want to hear this episode if you are interested in... * What is Bitcoin? [1:42] * Unpacking Bitcoin ETFs and three things to look for when buying [5:39] * Should you buy a Bitcoin ETF? [8:59]

Understanding Bitcoin In a nutshell, Bitcoin is a digital currency born in January 2009, untethered to any government or traditional financial institution. With an estimated market value of $8.2 billion, it pales in comparison to the colossal $40 trillion market cap of the S&P 500. There are 19 million Bitcoin coins in existence, with a cap of 21 million expected to be mined by the year 2140. Its appeal lies in being decentralized and ostensibly untraceable by governments, making it a preferred mode of transaction for some.

Originally intended for small online transactions, Bitcoin's unique blockchain technology was poised to revolutionize banking, but its high costs and complex payment process have hindered widespread adoption. To invest, one typically turns to a crypto broker, distinct from a stockbroker, and must safeguard private keys to validate ownership. Despite concerns about fraud and lost keys, the recent approval of Bitcoin spot ETFs has opened new doors, changing the landscape of Bitcoin accessibility for investors.

All about Bitcoin ETFs If you're considering diving into the world of Spot Bitcoin ETFs, here's a quick guide to help you navigate the options. The SEC recently greenlit 11 Bitcoin ETFs, and you might be wondering why so many. Well, it's all about competition. Unlike traditional mutual funds, ETFs, or exchange-traded funds, trade in real-time when the markets are open. This means you can buy or sell them while the markets are open, and the price is determined at the time of your transaction.

When choosing a Bitcoin ETF, focus on three key factors. First, check the trade volume – opt for an ETF with high trading activity for easy transactions. Second, consider the spread, which is the difference between the bid and ask prices. A narrow spread minimizes the extra cost you pay when trading. Lastly, look at the annual expense ratio – aim for the lowest possible without compromising on trade volume and spread. Notable players in the Bitcoin ETF arena include BlackRock's IB and Fidelity's FBTC, both boasting low expense ratios. Remember, thorough research is key with 11 options available, each with its unique features and costs. Listen to this episode for more on Bitcoin ETFs!

Resources Mentioned * Retirement Readiness Review (use code RETIRE25 for 25% off!) * Subscribe to the Retire with Ryan YouTube Channel

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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With every new year comes a list of resolutions to make this one the best yet. However, a lack of planning leaves most of these goals unfinished. On this episode, I’m sharing five financial resolutions to help you grow your money in 2024 and the follow-through steps to help make them possible.

You will want to hear this episode if you are interested in... * Opening a high-yield savings account [1:28] * Investing the money in your HSA [7:16] * Putting your money in a Roth account [10:09] * Getting a better handle on your finances [12:47] * Making charitable donations [14:10]

Get ready for high-yield savings Looking to grow your money in 2024? One of the best options is opening a high-yield savings account or a money market fund that offers between 4 and 5% interest annually. Begin by deciding between the two and, if you already have accounts with major brokerage firms like Charles Schwab, Fidelity, or Vanguard, opt for their money market funds for seamless integration.

Setting up a taxable brokerage account online takes less than 10 minutes, and linking it to your bank account enables easy transfers. Within two to three days, your funds should be in the default money market fund, earning the desired interest. If using Schwab, there's an extra step of purchasing a higher-yielding fund, such as Schwab's value advantage fund. However, if you prefer a simpler route, websites like bankrate.com list high-yield savings accounts with similar interest rates. Open an account, connect your bank, and enjoy increased returns on your savings without the need for additional investment steps.

The Roth advantage Another great resolution for financial success in 2024 is a Roth account. With the current tax plan set to expire in 2026 and uncertainties surrounding the 2024 election, taking advantage of potential tax-free growth in a Roth account is a strategic move. The options available include a Roth IRA, allowing contributions up to $6,500 if you're under 50 or $7,500 if you're over 50. Remember, the deadline for contributions for the previous year is April 15, and there are income limits to consider. If you find yourself exceeding those limits, a Roth 401(k) could be a viable alternative, especially if you're self-employed or your employer offers one. Contributions to a Roth 401(k) are not restricted by income, and for 2024, the limits are $23,000 for those under 50 and $30,500 for those over 50.

An additional option worth exploring is a Roth conversion, where you pay taxes at your current rates on the converted amount. This move could be advantageous if you anticipate higher tax rates in the future. Consulting with your financial advisor or CPA is crucial in determining the right strategy for your specific circumstances. Assess your current tax bracket, and if you're in a 22% bracket or lower, a Roth conversion may make sense, providing potential tax savings over the long term. Whether it's opening a Roth IRA, adjusting your 401(k) election, or scheduling a meeting with your financial advisor for a Roth conversion, taking action now can position you for financial success in the face of changing tax landscapes. Listen to this episode for more on growing your money in 2024!

Resources Mentioned * Retirement Readiness Review (use code RETIRE25 for 25% off!) * Subscribe to the Retire with Ryan YouTube Channel

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Now that 2023 is officially in the history books, let’s review my 2023 market predictions to see how close I got! On this episode, we’ll be reviewing last year’s market predictions as well as making new ones for the year ahead.

You will want to hear this episode if you are interested in... * Reviewing Ryan’s 2023 market predictions [2:38] * Looking ahead to 2024 [11:43]

Looking back at 2023 In 2023, I made a set of market predictions that turned out to be a mix of spot-on calls and a couple of surprises. The S&P 500, despite a shaky start, rallied close to 25% by year-end, proving my forecast of a 28% increase nearly accurate. Growth stocks once again outperformed value stocks, showcasing a long standing trend. The Russell 1000 Growth Index, led by tech giants like NVIDIA, Microsoft, and Amazon, soared by 43%, while its value counterpart only managed an 11.42% return, emphasizing the significance of growth stocks in the market.

However, not all my predictions hit the mark perfectly. Small-cap stocks were anticipated to outshine large-cap ones, but while the S&P 500 surged, the Russell 2000's late-year rally still fell short of my expectations. On the other hand, Bitcoin's unprecedented surge, earning a staggering 154% compared to gold's 13% gain, validated my projection of Bitcoin outperforming gold. Finally, foreseeing the Federal Reserve's rates finishing around 5.25% by the end of 2023 proved accurate, aligning with the prevailing economic climate. Nonetheless, amidst these forecasts, the underlying advice remained clear: diversification is key in navigating the unpredictability of the market.

Listen to this episode for my 2024 predictions!

Resources Mentioned * Retirement Readiness Review (use code RETIRE25 for 25% off!) * Subscribe to the Retire with Ryan YouTube Channel * 6 Market Predictions for 2023, #132 * 7 Best Short-Term Investments To Grow Your Money, #116

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Are you a small business owner struggling to choose a retirement plan? Then this episode is for you! Join me as we look at the specifics of SEP IRAs and Solo 401(k)s, the pros and cons of each, and the easiest way to get your small business or self-employed retirement plan set up today.

You will want to hear this episode if you are interested in... * What are SEP IRAs and Solo 401(k)s? [1:43] * The pros and cons of each retirement plan [8:16] * Setting up a Solo 401(k) or SEP IRA [12:27]

Defining the SEP IRA and Solo 401(k) As a small business owner, navigating the realm of retirement plans is crucial for securing your financial future. Whether your business is your full-time pursuit, a part-time venture, or garners intermittent 1099 income, your choice of retirement plan can significantly impact your tax savings and nest egg. Two primary options stand out: the SEP IRA and the Solo 401(k), each with nuances and advantages. If you aim to save $7,500 or less annually and lack other retirement plans, a traditional IRA could offer simplicity. However, for those seeking higher contributions and potential borrowing capabilities, delving into the specifics of SEP IRAs and Solo 401(k)s is vital.

A Simplified Employee Pension (SEP) IRA permits contributions of up to 25% of net business income, capped at $66,000 in 2023 (increasing to $69,000 in 2024). Notably, this plan only allows employer contributions, making it ideal for self-employed individuals—sole proprietors, partnerships, or certain LLC structures. Self-employed individuals are limited to contributing 20% of their net profit. On the other hand, a Solo 401(k), often referred to as a Uni-K, caters to sole proprietors or business owners with a spouse involved in the enterprise. This plan mirrors the contribution limits of the SEP IRA but distinguishes itself by enabling both employee and employer contributions. In 2023, employees can contribute up to $22,500, with a $7,500 catch-up if over 50, summing up to $30,000. By 2024, these limits increase to $23,000 and $30,500, respectively. Furthermore, the Solo 401(k) allows for a profit-sharing or employer contribution of up to 25% of net business profit or 20% for self-employed individuals, reaching the same contribution caps mentioned earlier.

Weighing the pros and cons As a small business owner seeking the right retirement plan, the choice between a SEP IRA and a Solo 401(k) demands careful consideration. SEP IRAs offer simplicity and ease of administration; you can allocate up to 20% of your net business income. However, their inflexibility concerning employee contributions and limited options for loans might pose challenges, especially if you plan to expand your workforce. Moreover, the absence of a Roth option and complexities around backdoor Roth IRA contributions are important factors to note.

Solo 401(k)s present an attractive alternative. They allow for both employer and employee contributions, offering more flexibility with a higher contribution limit, including catch-up provisions for individuals aged 50 and older. The Solo 401(k) permits a Roth version, facilitating tax diversification, and provides the option for loans up to a certain limit, enhancing financial flexibility. Nevertheless, this plan becomes less advantageous when hiring non-spouse employees, triggering a shift to a traditional 401(k) and incurring higher administrative burdens and costs. While both retirement plans are good options, the right decision depends on individual circumstances, financial goals, and future business plans. Listen to this episode for more insight!

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Self-Employed Individuals – Calculating Your Own Retirement-Plan Contribution and Deduction * SEP IRA Calculator

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Have you ever accidentally put post-tax money in with pre-tax when rolling over a traditional IRA? On this episode, I’m answering a listener's question about fixing this easy-to-make but frustrating mistake. We’ll look at the definition of a rollover, why you should separate pre-tax and post-tax money, and how to correct this situation if it occurs.

You will want to hear this episode if you are interested in... * What is a rollover? [1:42] * Why you should separate pre-tax and post-tax money [4:42] * How to separate post-tax money from a traditional IRA [7:02]

Understanding the IRA rollover process When transitioning jobs, your accumulated retirement benefits don't necessarily stay behind. You've got options: transferring to another retirement plan, cashing it in (with tax implications), or rolling it over to an IRA, commonly known as an individual retirement account. The allure of an IRA rollover lies in enhanced investment choices and potential fee reductions, particularly with brokerage firms like Charles Schwab, Fidelity, or Vanguard.

The process? Fairly straightforward. Establish your new traditional or rollover IRA with your fresh employer. If you lack one, reach out to your former employer's retirement plan provider and inquire about their rollover process, often doable via phone verification or a mailed PIN. Important tip: bolster security with two-factor authentication, utilizing your cell number for added protection. When specifying the rollover amount and payee for the check, remember, always make it payable to your new investment company for your benefit to keep it non-taxable. Veer off this path, and the money turns taxable, with a limited 60-day window for the rollover. This process can also uncover after-tax contributions, which need to be kept separate from pre-tax monies.

Keep it separate, keep it safe It's crucial to keep pre-tax and post-tax money separate in your retirement accounts, and here's why: segregating these funds ensures you can leverage the benefits effectively. After-tax money, eligible for a Roth IRA rollover, offers tax-free growth for you and your beneficiaries upon withdrawal, provided you meet specific criteria. Failure to segregate these funds can result in several complications.

First, without separation, tracking after-tax withdrawals becomes complex, risking double taxation. IRA distributions with a mix of pre and after-tax money lead to prorated taxable amounts, complicating tax calculations. Moreover, beneficiaries might overlook the after-tax funds, leading to potential double taxation for them. Lastly, gains on after-tax money in a traditional IRA don't enjoy tax-free growth, unlike if transferred to a Roth IRA. Thus, separating these funds safeguards against taxation pitfalls and ensures optimal tax benefits for you and your heirs in retirement planning. If you’ve made the mistake of lumping all of your retirement contributions together, listen to this episode for a solution!

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Did you inherit an IRA from a non-spouse on January 1, 2020 or later? Well a big change happened this summer that you should be aware of that could impact your 2023 tax season. On this episode, I’m unpacking the passing of and subsequent changes to the SECURE Act, how to best manage an inherited IRA in light of these changes, and how you can leave a legacy with a Roth account.

You will want to hear this episode if you are interested in... * Unpacking the history of the SECURE Act [2:20] * Managing an inherited IRA [9:48] * Leaving a legacy with a Roth account [14:47]

Understanding the SECURE Act The passing of the SECURE Act in January 2020 brought a significant shift in the landscape of inherited retirement accounts. This act, an abbreviation for "Setting Every Community Up for Retirement Enhancement," altered the rules for beneficiaries inheriting retirement accounts after the set date, restructuring the required minimum distribution (RMD) criteria. Previously, non-spousal living beneficiaries had three distribution options: taking a lump sum, emptying the account within five years of the owner's death, or taking annual lifetime distributions based on their age. However, the SECURE Act introduced changes for beneficiaries post-January 1, 2020. It classified beneficiaries into designated and non-designated categories, further distinguishing between eligible and non-eligible designated beneficiaries.

Eligible designated beneficiaries, including surviving spouses, disabled individuals, chronically ill persons, those within a 10-year age range of the deceased, and minor children, retained the option of lifetime distributions. Conversely, non-eligible designated beneficiaries inheriting traditional IRAs after January 1, 2020, lost the lifetime distribution choice. Instead, they must empty the account within 10 years of the original owner's death or face taxation. The complexity amplified with IRS proposed regulations in February 2021, creating subdivisions among non-eligible designated beneficiaries based on the original account owner's required minimum distribution age. Those inheriting from owners before this age had the liberty to wait until the 10th year to begin withdrawals, while those after the age were required yearly distributions from year one of the 10-year window.

Managing an inherited IRA Managing an inherited IRA can be a complex yet crucial aspect of financial planning. If you've inherited a retirement account after the original owner reached the required minimum distribution age, understanding the process becomes essential. For instance, if you inherit a $300,000 IRA at 55 years old, determining your RMD involves dividing the previous year's balance by your factor from the life expectancy chart. This calculation mandates annual withdrawals, recalculated based on the prior year's balance and adjusted life expectancy factor.

However, strategic planning becomes pivotal in optimizing taxes on these withdrawals. Consulting a financial advisor or accountant becomes crucial to align these IRA distributions with your overall financial landscape, considering potential income sources, Social Security, pensions, capital gains, and future required minimum distributions from personal accounts.

Navigating an inherited IRA involves more than mere withdrawals; it's a balancing act between meeting RMDs and minimizing tax impact. Careful planning and leveraging available resources can optimize your inherited IRA management for long-term financial stability. Listen to this episode for more on new beneficiary IRA distribution requirements!

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Publication 590-B * Inherited IRA RMD Calculator

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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We talk so much about the financial aspects of retirement that it’s important to address the mental and emotional shift this season can bring. On this episode, I sit down with life coach Craig Colvett to discuss getting ready for the retirement transition. We talk about the benefits of life coaching for retirees as well as the importance of maintaining a diverse social network.

You will want to hear this episode if you are interested in... * What is a life coach? [1:15] * How life coaching can help you in retirement [4:47] * Building a social network and finding renewed purpose in retirement [9:07] * Practical steps to prepare for retirement [18:33]

Put me in, coach! Every successful team needs a quality coach to achieve their goals. So why is life any different? Life coaching can help provide much-needed perspective for anyone, but especially those approaching or already enjoying retirement. Craig mentioned that around 95% of our thoughts are subconscious. That is a TON to unpack by yourself. A life coach can help you gain clarity on the things you actually want so you can create a meaningful and effective plan for your retirement.

There’s no shortage of resources to plan for the financial aspects of retirement. However, too many retirees underestimate the mental and emotional shift that happens when you finally retire. It can feel like your purpose disappeared overnight after leaving a position you’ve held for the last 20-50 years. A life coach can help you focus on your identity to carve out a renewed purpose for the next chapter of your life.

Building social success in retirement An often overlooked retirement resource is the building of a social network. So many retirees built their social circles through their jobs. If you don’t plan how that gap will be filled once you retire, you could leave yourself exposed to loneliness and isolation. Building a robust social circle with a variety of friendships is one of the keys to a long and successful retirement. But you don’t have to wait until you’re retired to start working on it. Start filling the social gaps now!

There’s no right or wrong way to be retired. Everyone is going to make the best decisions based on their needs and values. Life coaching is just a way to identify your specific needs and values so you can have the best retirement experience possible. And it’s never too early to contemplate what your goals in retirement should be. Understanding your goals and challenges is the first step toward planning for a successful retirement!

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * Coach 360

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Are you approaching retirement with tons of questions about Social Security? Then don’t miss this episode! I’m going over the seven most frequently asked questions about Social Security benefits from clients and listeners alike. Hit play for the tips and tricks you have to know before you start collecting.

You will want to hear this episode if you are interested in... * When am I eligible to collect Social Security benefits? [2:30] * How much will I earn from Social Security? [5:12] * What are spousal benefits and how do they work? [7:34] * What are divorced spousal benefits? [8:36] * Can I work and collect Social Security benefits? [9:29] * Are Social Security benefits taxable? [12:10] * How do I apply for Social Security benefits? [14:49]

Understanding the pathways to Social Security benefits There are four different pathways to gain eligibility for Social Security benefits. First, Social Security disability offers access to full retirement benefits earlier contingent on meeting specific disability criteria. If ineligible for disability benefits, there are three alternative methods for accessing Social Security benefits. Full retirement age typically spans between 66 and 67, varying with birth year. However, benefits can commence as early as age 62 with a reduction of about five-ninths of a percent per month until full retirement age, resulting in 70-75% of the total benefit.

Alternatively, delaying collection past full retirement age yields an 8% annual increase, maximizing at a 24% boost if waiting until age 70. Additionally, annual cost-of-living adjustments, averaging around 2.8%, might impact benefits, offering further considerations for individuals planning their Social Security benefits. These pathways offer flexibility, allowing individuals to strategize based on their unique circumstances and financial objectives.

Crunching the numbers Figuring out how much you'll earn from Social Security isn't straightforward. It's a blend of your work history, timing of collection, and a formula that considers your highest 35 years of earnings. If you've got fewer than 35 years in the workforce, those years without earnings factor in. But here's the trick: working longer can swap those zeros for higher-earning years, beefing up your benefits. If your income has varied, working more years can replace low-earning ones with better ones, boosting what you receive.

Cost-of-living adjustments matter too. Your Social Security statement holds the key to what you're eligible for. Once you start collecting, there's no turning back, except for a one-time do-over within a year, but that means repaying what you've received. Many folks jump in early but armed with this knowledge, you're better equipped to make a wise decision. Listen to this episode for more of the most-asked Social Security questions!

Resources Mentioned * Retirement Readiness Review (use code RETIRE40 for 40% off!) * Subscribe to the Retire with Ryan YouTube Channel * SSA.gov

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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After a lifetime of service to the growing minds of America, teachers deserve a quality retirement. Educators looking to save money beyond their pension plan are being taken advantage of by predatory retirement plans, and I want to put a stop to it. On this episode, I’m breaking down how to avoid bad 403(b) and 457 retirement plans and steps you can take toward better retirement solutions.

You will want to hear this episode if you are interested in... * The teacher retirement problem [1:33] * What are 403(b) and 457 retirement plans? [3:41] * Avoiding high costs and variable annuity retirement plans [5:58] * Taking steps towards better retirement solutions [9:24]

Understanding the educational retirement dilemma Teachers hold a special place in my heart, thanks to my mom's decades-long dedication to kindergarten education. They often go unrecognized for their hard work, especially in terms of retirement savings. In Connecticut and beyond, teachers have pension plans, but they're often taken advantage of by certain financial institutions pushing additional investment through high-fee retirement accounts. I recently spoke with a client whose daughter, a new teacher, was pitched a retirement plan at her school by an insurance company. These plans seem beneficial, but hide exorbitant fees in fine print that siphon away teachers' hard-earned money without their awareness.

403(b) and 457 retirement plans are not inherently bad of course. A 403(b) plan is a retirement savings option tailored for non-profit organizations, much like the 401(k) for other sectors. With a $23,000 contribution limit pre-tax (and the option for after-tax contributions), it's a way to save for retirement while potentially reducing taxable income. There's also a $7,500 catch-up provision for individuals over 50. The problem lies in the predatory fees charged by some of the institutions that offer them.

The real problem with variable annuity retirement plans One of the biggest issues is that cities and school districts are not negotiating better retirement plan options for their teachers. Teachers across several states, including Connecticut, are facing a concerning trend in their retirement savings due to the proliferation of high-cost variable annuity retirement plans. These plans, often offered by companies like AXA, Ameriprise, and others, impose hefty fees, sometimes as high as 3% annually, eating into teachers' hard-earned savings before any growth.

The problem is exacerbated by additional charges like surrender fees, lasting up to 10 years, unique to these plans. What's alarming is that while other retirement plans have evolved to lower costs, these variable annuity plans haven't kept pace. These fees erode the potential for robust retirement savings and need urgent attention to protect teachers' financial futures. Listen to this episode for steps you can take toward better retirement solutions!

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * 403bwise

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Want to make a Roth IRA contribution, but you earn over the adjusted gross income limit? Never fear, the backdoor Roth conversion is here! On this episode, I’m doing a deep dive into backdoor Roth conversions and the seven mistakes most people make when attempting this financial maneuver.

You will want to hear this episode if you are interested in... * What is a backdoor Roth IRA? [1:44] * The Pro-Rata rule [3:49] * Keeping IRA costs down [6:36] * Completing the necessary paperwork [8:02] * Why you need to invest [9:40] * Reconciling your IRA providers [11:07] * Making sure you have the correct retirement plan [11:34]

Understanding the Backdoor Roth A backdoor Roth IRA conversion offers a workaround for contributing to a Roth IRA when your income surpasses the set limits. Typically, direct contributions to a Roth IRA have income thresholds. If you earn more than the specified modified adjusted gross income for your filing status, you're restricted from contributing directly. However, with the backdoor Roth, you can sidestep this limitation.

The process involves making a non-deductible contribution to a traditional IRA and then converting that amount into a Roth IRA. This method allows contributions regardless of income, but it's crucial to follow specific procedures to avoid potentially costly errors. Mistakes in the process could lead to tax liabilities or complications, so careful attention to the conversion steps is essential to make the most of this strategy.

Avoiding Pro-Rata One of the easiest mistakes when using a backdoor Roth conversion is forgetting the Pro-Rata rule. If you've got other IRAs—SEP, SIMPLE, or traditional—those sums factor into your conversion calculation. Imagine intending to move $6,500 from a traditional IRA to a Roth, thinking it's tax-free. But if that $6,500 is only a fraction of a larger total, say $100,000, only 6.5% of your conversion is tax-exempt. You end up paying tax twice! First for the non-deductible IRA contribution, then for the conversion. To avoid this, you want to clear out those IRAs before the year's end.

The trick lies in removing any other IRA funds from your name before the backdoor Roth maneuver. You could shuffle the money into an employer's 401k if you have one or create a self-employed 401k if applicable. Surprisingly, even starting a small business could qualify you to set up a 401k plan, allowing you to move those funds out of your name easily. Just remember if you plan to contribute to this new plan, it should match your earnings from that business. But if your goal is to simply clear the path for a backdoor Roth IRA, this method can do the trick. Listen to this episode for more backdoor Roth conversion tips!

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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As the clock runs out for 2023, now is the time to consider your final tax moves of the year. On this episode, I’m breaking down seven tax reduction strategies for 2023 and beyond. Five of these tips need to be executed before the ball drops on New Year’s, so hit play now and start strategizing!

You will want to hear this episode if you are interested in... * Contribute to a state-sponsored 529 Plan [1:47] * Take a tax loss [4:13] * Perform a Roth conversion on your retirement account [4:58] * Set up a 401k or profit-sharing plan as a small business [8:18] * Purchase a vehicle for your business [9:36] * Contribute to a traditional IRA [10:39] * Fully fund your HSA [11:14]

Contribute to education and save on taxes As this year draws to a close, one savvy tax move is contributing to a state-sponsored 529 plan. With over 30 states offering tax deductions for such contributions, it's a strategy worth exploring. In my home state of Connecticut I can deduct up to $5,000 per person annually on my state income tax, potentially saving a couple up to $10,000. What's interesting is that even if I plan to use the funds shortly thereafter, I can still take advantage of the tax deduction without a mandatory holding period.

Moreover, exploring other states' plans is an option, especially for those residing in Arizona, Alaska, Kansas, Minnesota, Missouri, Montana, and Pennsylvania, where deductions are allowed regardless of the chosen state plan. It's a smart financial move that not only supports education savings but also maximizes tax benefits.

Considerable savings with Roth conversions Roth conversions are another strategic move to reduce taxes as you save for retirement. Starting at age 73 (or 75 as of 2033) retirees are obligated to take out a required minimum distribution (RMD), a percentage of their account set by the IRS. To proactively manage this, you can explore a Roth conversion. This is where money is withdrawn from a pre-tax retirement account, taxed at the current rate, and then transferred to a Roth IRA or Roth 401k.

Timing is crucial, and opportune moments include years of lower income, such as during job transitions or early retirement before reaching the RMD age. Converting at the 12% tax bracket, which applies to taxable income up to $45,000 for singles or $90,000 for married couples filing jointly, allows for significant tax savings. This strategy is particularly beneficial for those with sizable IRAs not planned for immediate use, offering a way to strategically navigate future tax implications. Listen to this episode for more year-end tax-saving tips!

Resources Mentioned * Retirement Readiness Review * Subscribe to the Retire with Ryan YouTube Channel * How To Turn Your Investment Losers Into Winners With Tax Loss Harvesting, #174

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As we move into the final months of 2023, it's again time to talk about tax loss harvesting and other tax-efficient investment strategies. On this episode, I'm going to discuss how you can potentially turn some of your investment losers into this year's winners when it comes to tax planning.

You will want to hear this episode if you are interested in... * Developing tax-efficient investment strategies [1:44] * The ins and outs of tax loss harvesting [5:52] * Consolidating mutual funds and switching to ETFs [11:36]

Creating a tax-efficient investment portfolio Developing tax-efficient investment strategies involves a careful understanding of market fluctuations and the implications of timing on investment outcomes. After all, the unpredictability of markets dictates that not every investment will yield positive returns each year. The S&P 500 is a prime example of market volatility. Since 1970, it has seen declines in 11 out of 53 years, indicating a 20% chance of investments losing value. This underscores the need for vigilance in managing portfolios as well as monitoring unrealized gains and losses for potential tax-saving opportunities.

One key strategy is using investment losses strategically to offset tax obligations. This approach not only lessens the current tax burden but also shapes a more tax-efficient portfolio for the future. I'm also a big believer in index-based investment strategies, particularly ETFs, as they typically generate fewer annual capital gains due to their structure. This makes them more tax-efficient compared to actively managed mutual funds.

Understanding tax loss harvesting Tax loss harvesting offers a savvy way to mitigate tax liabilities by strategically selling investments at a loss to offset gains. The process involves several key points to consider. Selling an investment at a loss allows one to offset taxable capital gains for the year or deduct up to $3,000 against ordinary income. It's crucial to reinvest immediately to remain in the market, although buying back the same investment within 30 days risks triggering a wash sale, nullifying the loss.

A prudent approach involves comprehending the nuances: differentiating substantially identical investments, understanding the categorization of gains and losses, and being mindful of the wash sale rule. Evaluating options and considering fluctuations in the market during the 30 days before or after the sale becomes essential, urging a cautious yet strategic approach in leveraging tax loss harvesting to one's advantage. Consulting an accountant or utilizing accounting software can assist in navigating these complex but rewarding tax strategies. Listen to this episode for more on tax loss harvesting!

Resources Mentioned * Retirement Readiness Review * Morningstar

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Do you know where your assets are going when you die? Do you have a plan in place for making medical and financial decisions if you become incapacitated? If either answer is no, you need an estate plan! On this episode, I sit down with estate planning expert Natalie Perry to discuss the ins and outs of planning your estate and ensuring a smooth post-mortem transition for your family and loved ones.

You will want to hear this episode if you are interested in... * What is estate planning? [1:14] * Essential documents for estate planning [4:12] * Using a trust versus a traditional non-trust estate plan [10:28] * Tips for simplifying the estate planning process [20:09] * Listener question and final thoughts [24:34]

The importance of estate planning Estate planning can be a complex but crucial process in ensuring the seamless transfer of assets and managing decisions in times of incapacity or death. From the basics of asset titling to a comprehensive estate plan involving wills, trusts, and powers of attorney, the importance of these documents cannot be understated.

The absence of proper estate planning documents can result in the court's involvement through probate. Probate procedures might be required both upon one's passing and in situations of incapacity where someone is needed to manage financial assets. This process can take considerable time, from months to even a couple of years, depending on various factors, including state and county backlogs, familial agreement or disagreement, and potential creditors. This is why having these documents completed ahead of time is so key!

Estate planning essentials The core documents that form the foundation of an estate plan are a will, powers of attorney for property and healthcare, and a Living Will (depending on the state). A will is crucial to directing assets to intended beneficiaries. There's a misconception that everything automatically transfers to a spouse. This simply isn’t true and can get quite complicated if children are involved.

Powers of attorney for property and healthcare are significant, granting the authority to make decisions in financial and medical matters if incapacitated. These documents are often as vital as the will. Trusts, particularly revocable living trusts, can help avoid probate and offer immediate liquidity, privacy, and clear instructions for asset distribution. And of course, revisiting and updating estate plans every three to five years or when significant life events occur is definitely recommended. Listen to this episode for more on estate planning!

Resources Mentioned * Retirement Readiness Review * Follow Natalie on LinkedIn * Harrison LLP

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A plethora of changes for Social Security and Medicare Part B premiums were recently announced and I want to break them down for you. On this episode, we’ll take a look at the 2024 Social Security cost-of-living adjustment (COLA), changes to Medicare Part B, and other Social Security shifts that could impact your retirement.

You will want to hear this episode if you are interested in... * Diving into the 2024 Social Security cost-of-living-adjustment [1:22] * Changes for Medicare and Part B premiums [4:38] * Increases to the Social Security Wage Base [8:06] * Does COBRA count as creditable coverage instead of signing up for Medicare? [10:03]

Understanding 2024’s Social Security COLA Starting in January of next year, Social Security beneficiaries will receive a 3.2% increase in their benefit checks. While it's slightly less than the substantial 8.7% bump we saw last year, it's still higher than the historical average of 2.8% for cost-of-living adjustments. This increase is determined by measuring the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) during the third quarter and comparing it to the previous year. The days of a 3% minimum rule from the 1970s are long gone, and now COLAs happen automatically based on the yearly rise of the CPI-W.

The best part is, you don't need to rush to contact Social Security. They'll be sending out notifications by mail in early December with your updated monthly benefit amount. If you're eager to stay ahead of the game, you can visit the Social Security website at ssa.gov to set up email or text notifications. So, whether you're already receiving Social Security or planning to start, rest assured that the 2024 COLA will factor into your benefits, providing a little extra financial security in an ever-changing world.

Changes for Medicare Part B and IRMAA charges Significant changes are afoot for Medicare Part B premiums in 2024, impacting current and prospective beneficiaries. The base premium for Medicare Part B will increase from $164.90 in 2023 to $174.70 in 2024. This shift comes after a slight decrease in Part B premiums last year, providing some respite for Social Security recipients. However, the waters get murkier with the introduction of IRMAA (Medicare Income-Related Monthly Adjustment Amount) charges, which can further inflate Part B premiums. These additional charges range from $69.90 to $419.30, depending on your income, and the thresholds for IRMAA triggers have also been raised for 2024.

Single filers with incomes exceeding $103,020 and married couples filing jointly with incomes over $206,000 will find themselves subject to IRMAA. You need to keep an eye on your income and explore strategies to mitigate IRMAA charges, as these adjustments also apply to Part D prescription drug plans for those on Original Medicare with Medigap coverage. Remember, informed financial planning is the key to navigating these changes effectively. Listen to this episode for more on Social Security changes in 2024!

Resources Mentioned * Retirement Readiness Review

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Does recent stock market performance have you itching for a change-up? Have you considered small-cap stocks or small-cap stock funds? On this episode, I’m taking a look at constructing a diversified portfolio and if investing in small-cap stocks is right for you.

You will want to hear this episode if you are interested in... * Understanding small and large-cap stocks [1:18] * Evaluating stock market performance to construct your portfolio [3:27] * Investment strategies for small-cap stocks [5:19]

The pros and cons of small-cap stocks As the stock market recovers from a tough August and July, now is a good time to explore small-cap stocks. Large-cap stocks, such as those in the S&P 500 and the NASDAQ, have performed well this year. However, their growth potential is limited due to their size. Small-cap stocks, with market capitalizations of around $2 billion, offer the promise of greater growth combined with higher volatility and risk.

While giants like Apple can weather economic storms thanks to diversification, smaller companies may struggle if they rely on a single product or revenue stream. So, diversifying your portfolio with small-cap stocks can be a strategy to consider. You just have to balance the allure of growth with risk awareness in today's dynamic financial landscape.

The historical performance of small-cap vs large-cap stocks Over the past century, small-cap stocks have consistently outperformed their larger counterparts. Small-caps have an average annual return of 11.57% compared to 9.57% for large-caps until the end of 2022. However, this outperformance has come with more significant fluctuations in returns. Looking at the most recent decade, small caps earned 10% while large caps surged by 21.62% in the last year. Over five years, the S&P 500 delivered 10% annually, while the S&P 600 averaged 3.7%. Over the past decade, the S&P 500 boasted an average return of 12%, while the S&P 600 averaged 8%.

This recent underperformance has led to an undervaluation of small-cap stocks, currently trading at a P/E ratio of 13 compared to the S&P 500's 21. If small-cap stocks regain fair valuation, there's a growth opportunity that could potentially outshine their larger counterparts. Although market dynamics may not always follow historical patterns. Listen to this episode for more on making small-cap stocks a part of your portfolio!

Resources Mentioned * Retirement Readiness Review

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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A big part of saving for retirement is choosing retirement plan options whose fees won’t eat into your valuable nest egg. On this episode, I’m discussing all things retirement plan fees, how to know what you’re paying, and how to potentially lower those fees so that you can grow your money faster.

You will want to hear this episode if you are interested in... * The three levels of retirement plan fees [2:29] * Active funds vs. index funds [6:55] * Using a brokerage window to diversify your investment options [12:07]

Understanding retirement plan fees Understanding the three levels of retirement plan fees is crucial for optimizing your savings. The first level is administrative fees. These cover essential plan maintenance and services and can be either a fixed amount per employee or an asset-based charge determined by a percentage of your plan balance. While you may not have direct control over these fees, it's worth discussing with your employer and encouraging them to explore cost-saving options, as high administrative fees can eat into your retirement savings.

The second level consists of individual service fees, typically charged per transaction, such as taking a 401(k) loan or doing a plan rollover. While these fees are usually modest, they are set by the plan provider and beyond your control. The final level is investment fees, which offer you the most control. These fees stem from the investments you choose within your plan and are typically the highest. They are generally asset-based, meaning they are also a percentage of your account balance. It's essential to understand these fees, as they can range from very low to as high as 2%. Being aware of and managing these fees is key to maximizing your retirement nest egg.

Choosing the right investment funds When reviewing your participant fee disclosure for your retirement plan, it's important to pay attention to the expense ratio of the mutual funds or investments you're considering. Most 401(k) plans primarily offer mutual funds as investment options, and within the fee disclosure, you'll find information about these costs. My approach when helping clients navigate this process is to begin by identifying investment options with the lowest expense ratios. Often, these options are index-based investments.

Index funds are designed to track specific market segments, like the S&P 500, which represents the 500 largest U.S. stocks. These funds tend to have lower ongoing investment charges because they require minimal management. In contrast, actively managed funds aim to outperform these indexes, but they come with higher costs, typically around 1% to 2% per year. Numerous studies have shown that most active funds and managers struggle to consistently beat their benchmark indexes over time. Therefore, while active management may offer the potential for higher returns, the odds are not in your favor. Opting for index funds provides a more prudent, less speculative approach to investing. That's why I strongly recommend them to my clients. Building a diversified portfolio using various index-based strategies across different asset classes can help you achieve your long-term financial goals while minimizing unnecessary risk. Listen to this episode for more on lowering your retirement plan costs!

Resources Mentioned * Retirement Readiness Review * Fiduciary (Book)

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Last month, we saw major stock market declines, with the S&P 500 down over 5% and the NASDAQ dipping 6.5%. This begs the question: Is September a bad month to own stocks? And if it is, which month is the best? On this episode, I’m exploring the historical performance of the S&P 500 and its monthly returns, as well as a listener question about receiving social security benefits from your ex-spouse. You don’t want to miss it!

You will want to hear this episode if you are interested in... * Receiving social security benefits from an ex-spouse [1:44] * Examining the historical performance of the S&P 500 [4:44] * Determining the best month to own stocks [7:13]

Understanding S&P 500 performance To find out which month is best to own stocks, let's focus on the S&P 500. The Standard and Poor's Index was founded 66 years ago on March 4, 1957. It represents 500 of the largest companies on the U.S. stock exchange. Before its official launch, the S&P only had 90 stocks, which grew to 233 before becoming the S&P 500.

Historically, the S&P 500 has seen an average annual growth rate of 9.8%, including dividends, and an annual standard deviation of 20.81%. However, it's crucial to understand that the stock market doesn't consistently deliver a monthly return of 0.81% (9.8% divided by 12 months). There are ups and downs, making it essential to prepare for volatility. When examining monthly returns, a few months stand out as particularly strong. As of May 2023, only four months have had an average annual return exceeding 1%, with July leading at 1.7%, followed by April (1.4%), December (1.3%), and January (1.2%). The end of the year and the beginning of the new year, often called the Santa Claus Rally period, tend to perform well.

Seasonal trends and investment strategies On the flip side, three months have historically produced average annual losses for the S&P 500 since 1926. September stands out as the worst, with a negative 1.1% average return, followed by February (negative 0.1%) and May (negative 0.1%). This weakness in February and May is often attributed to profit-taking following strong performances in December, January, and sometimes April. Additionally, the period from May to October tends to see lower average and median returns compared to other six-month periods. This phenomenon has led to the saying "Sell in May and go away." September is usually marked by investors returning from summer vacations and possibly selling stocks to lock in gains for the year. Families also face financial obligations such as tuition and back-to-school expenses during this time. Moreover, mutual fund companies start paying distributions in September, requiring them to free up funds by selling investments, including stocks.

However, it's crucial to remember that historical trends are not a crystal ball for predicting future market movements. While April may have risen 80% of the time in the past, it doesn't guarantee a positive April this year. Market conditions change, and various factors influence stock performance. Therefore, rather than trying to time the market based on monthly averages, a more prudent approach is to have a diversified portfolio with a suitable asset allocation that matches your risk tolerance. Regularly rebalance your portfolio to maintain your desired risk level while minimizing the urge to make impulsive decisions during market fluctuations. Ultimately, a long-term investment strategy focused on a diversified portfolio is more likely to help you achieve your financial goals.

Resources Mentioned * Retirement Readiness Review

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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The merger of TD Ameritrade Brokerage and Charles Schwab Brokerage, now known as Schwab, has been completed! And in this episode, I want to provide my insight into how the merger went. I’ll also share some of the issues I and other clients have found since the merger solidified.

You will want to hear this episode if you are interested in... * Unpacking the merger between TD Ameritrade and Charles Schwab [1:38] * Where have my spouse’s accounts gone? [3:38] * Issues with tax withholding [6:06] * Using caution before changing beneficiaries [9:21] * Better notifications for financial planners [10:30] * Final thoughts on the merger [12:40]

And then there was one The merger between TD Ameritrade and Charles Schwab was completed over Labor Day weekend of 2023. Overall, I think it went pretty well, considering I didn't have any clients whose accounts didn't transfer over, and there are zero missing funds. However, in the weeks following the merger, we found several issues that we were not made aware of before the merger.

The joining of these two institutions to form Schwab has been in the works for two years. In that time, my team and I have attended numerous conference calls and webinars to see if this merger would be the right fit for our clients. We even decided to use Schwab for all new clients so we could learn their system. And while we are quite comfortable using the Schwab Advisor Center, there are still a few outstanding issues we need to navigate.

Working out the kinks Clients who are new to Schwab can access their account online through the Schwab Alliance platform. However, the first issue we've encountered is clients being unable to see their spouses’ or partners’ retirement accounts through the portal. While you can’t have a joint retirement account, TD Ameritrade allowed clients to sign a form to gain access to their partners' accounts. Oddly enough, Schwab didn’t honor this arrangement at launch, leaving clients to believe everything didn’t transfer correctly. Thankfully it’s an easy fix, but it left many people understandably startled.

Another issue we’ve encountered with Schwab has to do with their tax withholding settings. It’s always my goal as a financial planner to ensure clients pay what is required in taxes without giving the government an interest-free loan by overpaying. TD Ameritrade had multiple options for withholding amounts, while Schwab seems to only have two for state income tax: 0% or the maximum 6.99%. This leaves clients either owing money or subsidizing the government. I’m actively petitioning Schwab for answers, and I will keep you posted. Listen to the episode for more on the Schwab merger!

Resources Mentioned * Retirement Readiness Review * Schwab Client Login

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As the air crisps and the leaves change, you know what that means: Fall is here! But it also means that Medicare Open Enrollment is about to begin. On this episode, I’m going over five Medicare Open Enrollment mistakes you want to avoid and answering a listener's question about Health Savings Accounts.

You will want to hear this episode if you are interested in... * Can you draw from two HSA accounts to pay for one individual's medical expenses? [1:43] * Is it too early to start looking at enrollment options? [4:13] * Is last year’s Medicare plan still the best option? [6:02] * Should monthly premiums be the only deciding factor for Medicare plans? [7:09] * Examining the real cost of Medicare plans [8:50] * Will your Medicare plan let you see your doctor? [10:31]

Choosing the Medicare plan that’s right for you Medicare Open Enrollment starts on October 15th and lasts until December 7th, but is now a good time to start looking at your options? Absolutely it is! You don’t have to wait until October to research the best Medicare plan for your needs. Talk to friends and supplemental Medicare representatives, attend seminars, and even go to medicare.gov to compare and contrast the numerous choices available.

One mistake current Medicare enrollees make is assuming that the plan they selected last year is still the best plan for them. Many Medicare Advantage plans offer an initially low or free premium plan to get people to sign up, only to significantly increase the price the following year. You definitely want to compare your options annually to ensure you're getting the best plan for the right price.

Understanding the costs and benefits of your Medicare plan A big mistake to avoid during Medicare Open Enrollment is using your plan's monthly premium as the only deciding factor for signing up. While your monthly premium may be low, out-of-pocket costs can get out of control. Prescriptions, labs, and doctor’s visits may not be covered by a low premium plan, so you definitely want to do your research. Paying a higher premium for better coverage may be your best option.

A huge shock for some Medicare enrollees is finding out their existing doctor will not accept their Preferred Provider Organization (PPO) plan. A PPO is a health care plan that allows members to see out-of-network doctors, usually for a higher price. Just because your plan allows you to see out-of-network providers does not mean YOUR provider accepts that plan. Double-check with your doctor to make sure everything is compatible before signing up. Listen to this episode for more on Medicare Open Enrollment!

Resources Mentioned * Retirement Readiness Review * Chris Humphries * Medicare

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The last thing on your mind is probably home heating oil while summer is still in full swing. But with cold nights around the corner, now is the time to start preparing for rising heating oil prices! On this episode, I’m taking a look at past pricing for home heating oil, what influences oil rates, and when YOU should restock home heating oil before the winter.

You will want to hear this episode if you are interested in... * Historic home heating oil costs [1:51] * Influences on the price of home heating oil [3:58] * When is the best time to buy home heating oil? [5:36

Understanding the rising costs of oil Last Halloween, home heating oil prices hit a record high of $5.40 per gallon, and I’ve been keeping my eye on them ever since. Considering they were under $2 per gallon for most of 2020, I was curious to see why there’s been such a spike. Obviously the price of home heating oil is based on supply and demand. I knew the demand was good because the majority of us were quarantined in our homes through winter 2020.

However, the cost of crude oil is a major factor for home heating costs. Because no one was traveling or driving much during the pandemic, the price of oil collapsed in 2020, and crude oil got down to a historically low $30 per barrel. But post-lockdown, oil has been on an exponential rise. In fact, 2022 saw prices as high as $100 per barrel thanks to the Ukraine War. In 2023, crude oil prices dropped to around $70 per barrel, but a recent surge has seen barrels of crude going for no less than $85. Are more price hikes in store? Should you restock on home heating oil now? Listen to this episode to find out!

Resources Mentioned * Retirement Readiness Review * McKinley Oil

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So many 80’s kids fell in love with action movies because of the work of Arnold Schwarzenegger. Myself included! So I was delighted to discover the Netflix documentary Arnold, which details the life and career of the body-builder turned movie star turned California governor. What inspired me about this film was Arnold’s sense of purpose throughout all of his accomplishments. So on this episode, I’m giving you my seven takeaways from the Arnold documentary to help you maintain a better sense of purpose in retirement.

You will want to hear this episode if you are interested in... * The legacy of Arnold [2:20] * Love and retirement [3:22] * Prioritizing travel in retirement [4:26] * It’s time to think less [5:12] * Developing new hobbies in retirement [6:11] * Organizing your retirement [6:41] * The benefits of volunteering in retirement [8:08] * Should I get a part-time job when I retire? [8:58]

It’s retirement time! One of the things that impressed me most about Arnold’s story is his origin. His father was a soldier in the German army during World War II and dealt with depression and alcoholism when he returned home. Arnold needed to find a sense of purpose outside the house and was welcomed by the gym community. The people he met and the belonging he felt made him obsessed with working out and set him on the path he is walking today. The same can be said for retirement: Community is so important! Whether you're spending time with family or have different social interactions, I think everybody in retirement needs a sense of community.

Travel was something else Arnold was really passionate about. From a young age he wanted to move to America, but it would take him a bit. His first big move was London, where he worked as a gym trainer and won strength competitions. As a retiree, travel should be at the top of your priorities. The first phase of retirement is referred to as the “Go Go” years because that’s when health and energy levels should be at their highest. Take advantage of it while you can!

Terminate retirement blues It wasn’t easy for Arnold to get into the movie business. His poor English made it difficult to get roles, but he had a plan either way. All of his success from multiple Mr. Universe wins allowed him to invest in a substantial real estate portfolio and supplement business that made being a movie star a want instead of a financial need. When it comes to your own retirement, you need to be just as organized as you move into the next phase of life. Get a plan for retirement and stick to it!

Arnold eventually got his big break and was able to work in the industry he had sought after for years. For retirees, working can be a great source of purpose, community, and some extra income. The relationships you make in a part-time job can really enrich your retirement experience. Listen to this episode if you want to live…your best life in retirement!

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With home interest rates recently hitting 20-year highs, you may wonder if now is a good time to purchase your retirement home or a second home? On this episode, I'm going to discuss what you should consider before signing on the dotted line and making such a big commitment.

You will want to hear this episode if you are interested in... * The current state of home interest rates [1:38] * Is NOW a good time to buy? [3:00] * How do you finance the purchase of a second home? [4:37] * Things to consider before starting the home-buying process [6:41]

What’s going on in the current housing market? To understand whether or not now is a good time to buy a second home, we need to look at where home interest rates are at. Currently, these interest rates are the highest they’ve been in 20 years. This means anyone looking to take out a mortgage will pay around 7.6%, as opposed to the roughly 3% rate from three years prior for a 30-year fixed mortgage. While those numbers may seem startling to some, rates around 8% and higher were fairly common in the past.

Another factor to consider before buying a second home is the availability of housing. Those stellar 3% interest rates from a few years ago caused quite the housing boom across the country. There's a short supply of homes to buy because many people have refinanced or purchased a home in the last three to five years at a much lower interest rate. So it’s possible that finding the perfect house in the current market could be quite a chore.

Are YOU ready to purchase a second home? So is now actually a good time to buy? You’ll have to listen to this episode to find out! But before you do, there are a few questions you should ask yourself to determine your readiness to buy a second home. The first is, do you have enough for the down payment? Buying a second home usually requires a down payment of 10% or more. You also want to shop around for different lenders. Talk to multiple lenders to compare the packages and interest rates they offer.

Another great question is if you have time to apply for a mortgage? The process is tedious and requires a lot of documentation, including pay stubs, tax returns, and investment reports. All in all, the process can take up to 10 hours for simple applications. The more complexities in your situation, the more time it will take to complete the process. Hit play now for more on buying a second home!

Resources Mentioned * Retirement Readiness Review * Buying A Second Home, #12

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When people find out that I am a financial advisor, they usually ask me about retirement. Specifically, they want to know the best ways to save in order to secure their financial future. So in this episode, I’m giving you my three favorite ways to save for retirement and the pros and cons of each strategy.

You will want to hear this episode if you are interested in... * The pros and cons of a 401k [1:33] * The pros and cons of a Roth IRA [8:03] * The pros and cons of a Health Savings Account [11:32]

Getting the full 401k picture One of the biggest pieces of the retirement puzzle is saving. You have to be able to save enough money during your career to sustain you through retirement when you stop working. How you go about it is up to you, but the first place I would start is a traditional 401k. The biggest pro to a 401k is that many employers will match your contributions at 3% or more. You also have the added benefit of payroll deduction, so it’s easy to “set and forget” your way to retirement success.

However, it’s not all sunshine with 401ks. There are some cons you should be aware of. The first is the standard annual contribution limit of $22,500. Also, you are subject to a withdrawal fee if you try to take out money before you turn 59 and a half. Some 401ks can have high fees, and you could be limited on your investment options depending on who your employer goes through. Finally, 401ks have Required Minimum Distributions, which force you to take out a certain amount of money after the age of 73.

Additional retirement saving strategies My second favorite retirement saving method is using a Roth IRA. This is a great way to invest after-tax money where it can grow tax-deferred. You can also withdraw the money tax-free because it was already taxed when it went in. Depending on the company you work for, Roth IRAs tend to have a large selection of investment options, and there are no Required Minimum Distributions like with a 401k.

Health Savings Accounts (HSAs) are my third and final retirement savings strategy, and it’s one regular listeners of the podcast should be familiar with. I talk a lot about HSAs because they are the only triple tax-free account out there. You receive a deduction when you put the money in, the money grows tax-deferred. When you take the money out for health-related costs, it's also tax-free! It’s a win all the way around. Listen to this episode for more retirement saving strategy pros and cons!

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2023 is off to a great start for investors! This means now is the perfect time to make sure your asset allocation is optimized for the highest possible returns. On this episode, I’m doing a brief review of asset allocation, diving into why you should know the breakdown of your investments, and exploring the ways you can determine what your current asset allocation is.

You will want to hear this episode if you are interested in... * Reviewing the concept of asset allocation [1:15] * Preparing your asset allocation for 2023 [3:13] * Four ways to determine your current asset allocation [5:34]

Allocation, allocation, allocation! Listeners know how important I believe asset allocation is for your retirement portfolio. If you're new to this concept, let me show you the ropes: Asset allocation is the breakdown of your portfolio between the five main asset classes. These classes are stocks, bonds, cash, real estate, and commodities. The classes break down even further into “safe” and “risky” investments. Cash and bonds are considered safer investments, while stocks, commodities, and real estate are higher risk/higher reward growth-oriented investments.

When you’re in your 30s and 40s, it’s a good idea to lean on the riskier side in order to build your retirement portfolio with plenty of time to recoup potential losses. However, the closer you get to retirement, the more conservative you want to be. This is why it’s so important to know what your asset allocation is. I’ve had clients believe they are conservative when 95% of their investments are growth-oriented. Do you know how to determine your asset allocation? Listen to this episode to find out!

Resources Mentioned * What Is The Ideal Asset Allocation In Retirement?, #83 * Morningstar

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Have you ever been tempted to cash out your 401k when changing employment? Is this really a good option? On today’s episode, I’m exploring the 401k cash-out culture in America, why people do it, whether or not you should do it, and retirement-friendly alternatives to cashing out your 401k.

You will want to hear this episode if you are interested in... * What’s going on with American retirement plans? [1:33] * Exploring alternatives to cashing out your 401k [3:45] * Why are so many people cashing in their 401k? [5:13] * How employers can help departing employees save for retirement [7:31] * How YOU should handle your 401k [9:44]

Getting the facts on 401ks A recent Harvard Business Review study found that 41% of Americans are cashing out their 401ks when they change jobs. And with 30% of Americans changing jobs in 2022 alone, that leaves a lot of people potentially starting from scratch with their retirement savings. According to data from Vanguard in 2021, the median 401k for someone 55 to 65 years of age was $89,716. Believe it or not, that is hardly enough money to retire on. And for many middle-income Americans, this probably wouldn’t last more than five years.

When you cash out your retirement plan, not only do you pay taxes on that money, but there is an extra 10% penalty if you're under age 59 and a half. If you’re not careful, you could wipe out nearly half of your savings between taxes and penalties. Oddly enough, the US is one of the only developed countries that allows such easy access to retirement plans. In many countries, you can't access your retirement funds until retirement, and you must demonstrate a significant financial hardship to access it.

Understanding cash-out culture So why are people cashing out their 401ks in droves? One of the big reasons is that employers will automatically cash out your retirement plan if the balance is less than $1000. It makes sense from an employer and a retirement plan perspective because there are costs associated with maintaining the latter. But this does the exiting employee zero favors! Thankfully, you can deposit that check into another IRA within 60 days and avoid paying income taxes on the withdrawal. Listen to this episode for alternatives to cashing out your 401k!

Resources Mentioned * Too Many Employees Cash Out Their 401(k)s When Leaving a Job * 4 Things To Know Before Doing A 401k Rollover, #40

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With 2022 being one of the worst years ever for bonds, many listeners are asking if they should dump their current bond fund and move to something more stable? On this episode, I’m exploring the performance history of bonds, the relationship between bonds and interest rates, and whether you should sell your bonds and invest in a money market fund.

You will want to hear this episode if you are interested in... * Exploring the history of bond performance [1:57] * Understanding the relationship between bonds and interest rates [3:23] * Should you bail on your bond fund? [5:03]

Understanding the past and current performance of bonds The Barclays Aggregate Bond Index has been used to track bond performance since 1976. In 2022, the Barclays Index reported a 13% loss making it the worst year for bonds in U.S. history. The second worst was a 2% dip in 1994, but that pales in comparison. Bonds are supposed to protect our money. So how could they experience such a large decline?

The answer lies in the relationship between bonds and interest rates. Just like stocks, bonds trade daily, and much of their value is dictated by interest rates. Bond prices and interest rates have what's known as an inverse relationship. Meaning if interest rates go down, bond prices go up. And vice versa! When interest rates rose a record 7 times in 2022, it caused massive losses to many people invested in bonds. So the big question is, should you get out of your bond fund and into a more stable fund like a money market fund? Listen to this episode to find out!

Resources Mentioned * Bloomberg US Aggregate Bonds Annual Returns * Fed's Interest Rate History: The Fed Funds Rate Since 1981 * Schwab Value Advantage Money Fund * Schwab U.S. Aggregate Bond Index Fund

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As we continue to have higher than usual inflation, those receiving Social Security benefits may wonder about the cost-of-living adjustment (COLA) for 2024. On this episode, we’ll take a look at the history of these Social Security adjustments, how things are shaping up for 2024, and what you need to do to stay ready for retirement.

You will want to hear this episode if you are interested in... * Examining the history of COLAs [2:38] * The COLA forecast for 2024 [5:19] * Action steps for this year’s COLA [6:59]

Understanding COLAs In 1975, the Social Security Administration (SSA) started issuing cost-of-living increases for Social Security benefits. These COLAs were designed to compete with inflation and ensure retired Americans had enough resources to live on. In the 48 years since, SSA has only had a zero percent increase 4 times, with the average being 3.78%, and the largest COLA in 1980 with an increase of 14.3%.

Social Security COLAs are determined by changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers, also known as the CPI-W. By taking the third quarter CPI-W of the current year and dividing it by the third quarter CPI-W from the prior year, the SSA uses that percentage increase to quantify the cost of living adjustment for the following year. So what will this year’s COLA bring? While we still have a little bit to go in quarter three, the picture is gaining clarity. Listen to this episode for my analysis and tips to stay ready for retirement!

Resources Mentioned * Cost-Of-Living Adjustments

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With rising energy costs nationwide, listeners are begging for some money saving tips to beat the summer heat! On this episode, I’m sharing three ways to lower your electric bill this summer that will save you hundreds, possibly thousands of dollars in utility costs.

You will want to hear this episode if you are interested in... * Examining rising energy costs [1:39] * Could a new energy supplier save you money? [3:10] * Taking advantage of a home energy audit [10:02] * Saving money with smart thermostats [11:50]

Evaluate your energy situation Temperatures during the summer are hot enough. We don’t need a painful electric bill to add insult to injury. Yet, the price of natural gas rising 24% last year has contributed to a national increase in electricity costs for consumers that use it. If you’re anything like me, you’re clamoring to find ways to bring your bill down without melting or bursting into flames. Thankfully, there are quite a few ways to keep your house and your bank account cool.

My go-to tip is to check if you live in a state with a deregulated energy market like Connecticut. 26 states use this two-component system on their electric bills, and the first component is known as the delivery rate. This is considered the regulated portion of the bill that consumers have little control over, and is based on location. The second potion is the supplier rate which quantifies your cost per kilowatt hour of electricity. This is the rate you want to shop around for! Consult your electric bill to determine your current costs, and use a resource like Connecticut's energizect.com to evaluate which providers in your area have the best supplier rate.

Energy-saving hacks Another way you can potentially utilize your state resources is by requesting a home energy audit. For a $50 inspection fee, Connecticut residents can have an inspector examine their home for possible pitfalls such as air leaks, insufficient insulation, and inefficient appliances. They also provide professional insight on how to fix these issues! You could save a ton on your utility bill by implementing these upgrades and making your home more energy efficient.

A really simple energy-efficient upgrade is installing a smart thermostat. They only cost around $150-$250 per unit, and are fully programmable. They learn your heating and cooling habits to use the most efficient amount of energy possible. Ultimately lowering your monthly bill. Additionally, if you leave the house for an extended period and forget to set your thermostat accordingly, it’s easy to adjust the temperature from afar, saving you from a costly spike in your electric bill. Some electric companies will even allow you to pair these devices with your service for additional savings. Listen to this episode for more energy-saving insights!

Resources Mentioned * 5 Ways to Lower Your Electric Bill, #126 * Energize CT

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A little over six years ago, I chose TD Ameritrade as my broker after considerable research into TD, Charles Schwab, and Fidelity. So when Charles Schwab announced their purchase of TD three years ago, I started preparing. Finally, the merger is upon us! And on this episode, I’m helping TD Ameritrade clients everywhere get ready for the move.

You will want to hear this episode if you are interested in... * Understanding the merger timeline [1:38] * What you need to do before the merger occurs [3:27]

Welcome to Schwab TD Ameritrade clients have a quickly approaching decision to make: Stay where they’re at and become Schwab, or find another broker. Personally, I’m recommending my clients stick with Schwab. I’ve been using and testing their platform for the last year, and there really isn’t much difference between them and the soon-to-be-defunct TD Ameritrade. If you want to continue doing business with Schwab, there’s nothing you have to do to make the change. This is what’s known as a negative consent transaction. Unless you decide not to go through with the transfer, all of your assets and brokerage accounts currently held with TD Ameritrade Institutional will automatically move over to Schwab.

That being said, there are a few dates those going through the merger should be aware of. On Friday, September 1st at 8:30pm Eastern, access to TD’s Advisor Client will cease, and all accounts on TD Ameritrade will be transitioned to Schwab's platform over the next few days. By Tuesday, September 5th you will be able to access the Schwab Alliance Client Portal and manage your accounts directly through Schwab. The only thing you need to do as a newly minted Schwab client is create a profile through their client portal. Listen to this episode for more on the merger!

Resources Mentioned * TD Advisor Client * Schwab Alliance Client Portal

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After a long hiatus from traveling, it’s great to hear that many of my clients are getting back out into the world. But too many are doing so without travel insurance! On this episode, I’m taking a deep dive into travel insurance, what it is, how to get it, and why you shouldn’t leave the country without it.

You will want to hear this episode if you are interested in... * What is travel insurance? [2:23] * Why you need to insure your trip [4:58] * Exploring different travel insurance options [6:57]

Purchasing peace of mind For some, travel insurance may feel like an unnecessary add-on for an already expensive trip. But that is precisely why you need it! One of the main reasons to purchase travel insurance is that it covers you if you get sick overseas. Most health insurance companies do not provide coverage if you need care outside of the U.S. And if you’re already retired and on Medicare, you will not have coverage in another country. Health care may be less expensive outside of the United States, but it isn’t cheap. If the worst happens, you could be out tens of thousands of dollars.

Another benefit to having travel insurance is that it covers travel delays. If your flight gets canceled or pushed, travel insurance covers things like food and the cost of a hotel. It can also provide the funds to buy new clothes and toiletries if your luggage gets lost. Some of these costs may require you to pay upfront, but if you save your receipts, they are easily reimbursed through the travel insurance company. Listen to this episode for more on travel insurance!

Resources Mentioned * Seven Corners * Allianz * Squaremouth * InsureMyTrip

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If you know anything about me, you know I’m a golf nut. I started the sport at age 14 and have enjoyed the challenge and activity it has brought to my life for the last 30 years. On this episode, I’m going to share five reasons why golf is a great retirement activity and how you can get started at any age.

You will want to hear this episode if you are interested in... * Why golf is a great low-impact workout [2:48] * Building your social network with golf [4:56] * Using golf to stay mentally strong [7:12] * Using golf to connect with the great outdoors [9:28] * Starting your golf journey [11:03]

Just tap it in One of the best reasons to take up golf in retirement is the physical activity the sport provides. Golf is considered a low-impact sport, so as long as you hit the little white ball instead of the big planetary one you’re standing on, you're going to be just fine. While the fun of driving around in golf carts is an added bonus, choosing to walk the course with a bag cart is how you maximize the cardiovascular benefits. When all is said and done, you can walk 2-5 miles on average after a single game.

Another great golf benefit that is especially important to retirees is the social aspects of the game. Workplace social interaction is a hard loss for many just entering retirement. Even if you’re able to stay in touch with old coworkers, you may desire a more consistent social network. This is where joining a golf league or club can be a literal game changer. Golf is also a great way to spend quality time with those you love because the average game lasts 4.5 hours.

Staying whole with hole-in-ones Aside from physical and social benefits, golf has tremendous mental benefits to keep your mind sharp after it’s left the office. While some sports have only a few core skills, golf requires careful strategy and consistent mastery of various shots and techniques. There is ALWAYS something a golfer can work on. Whether it’s their stance, swing, putting, chipping, or even how they play in different weather conditions. Golf provides no shortage of mental puzzles to keep the mind stimulated.

It’s no secret that fresh air and sunshine are critical to maintaining health at any age. This is especially true for retirees looking to live a long and healthy third act. Another great benefit to the game of golf is that it gets players outside for hours. Not just outside, but outside at some of the most beautiful locations on Earth. Most golf courses are between 120-140 acres with limited amounts of people, setting up a great environment to connect with the natural beauty around us. Listen to this episode for more on why golf is a great retirement activity!

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Business owners! Are you taking advantage of every tax break available to you? If you’re not already working with a tax strategist, the answer is probably no. Join me as I sit down with seasoned tax strategist Shauna Wekherlien, a.k.a The Tax Goddess, as she delivers five tax tips that could mean thousands of dollars in deductions on your next return.

You will want to hear this episode if you are interested in... * What is a tax strategist? [1:37] * Defining a high-earning business and one of Shauna’s favorite tax strategies [4:57] * Understanding the Augusta Rule [14:54] * Getting your kids on the payroll [20:35] * Why your dog could be human’s best tax write-off [23:51] * The tax deduction mistake too many CPAs make [27:00]

The four-legged financial approach Without CPAs American business owners wouldn’t be able to file their taxes. Well, they could, but it probably wouldn’t go well. That being said, a CPA isn’t the only financial professional you need to get the most out of tax season. Shauna recommends that businesses use all four legs of her financial stool for stability: a bookkeeper, a tax strategist, a CPA, and a financial advisor. After your bookkeeper handles the day-to-day accounting, a tax strategist helps you manage your entire financial world. They keep track of where you’re spending money, how much you’re spending, and how you’re investing that money from a tax perspective.

A tax strategist like Shauna will help you tweak all of those things so that by December 31, you are reporting the lowest profit possible and keeping the largest amount of money in your pocket. Then it’s time to hand everything over to your CPA, who files the return, protects you from audit, and ensures you're not breaking any rules. This is when you and your financial advisor have fun choosing how to invest that money, build your portfolio, and get ready for retirement.

Risk and reward One of the biggest things Shauna wants prospective clients to understand is the idea of risk. Similar to the risk assessed in a retirement portfolio, tax strategies also have risk. Every business needs to know where they fall on the aggression scale, with 1 being zero IRS contact (except for a random audit) and 10 being everyone is going to jail. Obviously, we don’t want to be anywhere near a 10, but Shauna says clients can go as high as an 8 while still being aboveboard. You just have to be willing to speak with the IRS and provide proof of your deductions.

Shauna shared so many great tax tips in this episode, but one of them is known as the Augusta Rule. Also known as the Master’s Exception, this tax rule allows you to rent your home for business use and deduct the cost from your taxes. Because your business is technically a separate entity from you, the rule allows you to rent your home out to your business for up to 14 days per year without paying income tax on the revenue. For more on this and other tax strategies that could save your business thousands in deductions, listen to the full episode!

Resources Mentioned * Shauna’s website * Take my Retirement Readiness Review online course!

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Have you been excited to apply for Social Security only to get confused or frustrated by the process? You’re not alone! On this episode, I’m answering a listener's question and sharing three helpful tips to use when applying for Social Security benefits.

You will want to hear this episode if you are interested in... * The best way to apply for Social Security benefits [1:51] * When do Social Security benefits begin and how are they paid out? [3:10] * When can I file for Social Security benefits? [8:09]

Applying for Social Security benefits Whether you just became eligible for Social Security benefits at 62 or you’ve waited until age 70 for your maximum benefits, applying for Social Security can be a confusing process if you’re unfamiliar with the system. The first thing you should know is that applying for Social Security benefits is easiest when doing so online. This is the method recommended by the SSA, and their website can be easily accessed in the links below.

The next thing the soon-to-be enrolled should know is when to apply. You can file for Social Security benefits as early as 62 all the way up to 70 years old. As always, the best strategy is to wait until you turn 70 because you get an 8% benefit increase every year you wait between full retirement age and your 70th birthday. Just don’t forget to apply after you turn 70 because there is no added benefit to waiting longer than that.

Receiving your Social Security benefits A question that stumps a lot of people when applying for Social Security benefits is what month they would like to start receiving their benefits. You can file for Social Security as early as four months prior to when you would like your benefits to start. For example, if your birthday is July 15th, you would select July as the month benefits begin. However, you won't actually receive anything until August because the government wants to ensure you are the correct age the entire month you receive your first check.

Speaking of checks, the SSA does not issue checks to new Social Security enrollees. The primary method for receiving Social Security benefits is through direct deposit into a bank account or credit union. The other option is called a Direct Express debit card. You can use it like a normal debit card and even make ATM withdrawals for a nominal fee. Listen to this episode for more on applying for Social Security!

Resources Mentioned * Social Security Administration * How To Apply For Social Security Benefits, #38 * Take my Retirement Readiness Review online course!

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Health Savings Accounts are one of the biggest retirement planning opportunities that get overlooked. And many who have an HSA aren’t getting the most out of it. On this episode, I’m going to cover three mistakes you're probably making with HSAs that are costing you a lot of money.

You will want to hear this episode if you are interested in... * Are you investing the money in your HSA? [2:14] * Are you contributing the maximum to your HSA? [5:19] * Do you treat your HSA like a credit card? [7:53]

The biggest HSA mistake If you’re on a high-deductible health insurance plan, you most likely have or are eligible for a Health Savings Account (HSA). They are one of my favorite ways to save for retirement because they are the only triple tax-free savings account in the United States. Meaning, you receive a deduction when you put the money in, the money grows tax-deferred, and then when you take the money out for health-related costs, it's also tax-free. If you’ve had an HSA for a while, the contributions from you and your employer are starting to build up. Unfortunately, I’m finding that a lot of people aren’t investing that money for tax-deferred growth.

If you’re not investing your HSA money, then chances are it’s not earning any interest either. At the very least, you should investigate if your HSA has a money market option to invest the funds into as a low-risk option to start earning interest. Right now, Fidelity, Charles Schwab, and Vanguard have money market accounts paying close to or right at 5%. Do a little digging, and don’t leave money on the table!

Using your HSA to the max Another mistake I see people make with HSAs is not contributing the maximum amount. In 2023, the maximum contribution is $3,850 for a single person and $7,750 for a family. Those limits are combined between what you and your employer contribute to the HSA account annually. If you find out that you haven’t contributed the maximum amount, you have until the tax filing deadline in April to make additional contributions and hit the limit.

Finally, one of the biggest temptations with HSA accounts is to use it like a credit card. Swiping it every time you go to the doctor is not how to get the most out of a Health Savings Account. The best method is to build up your HSA savings and invest the money for tax-deferred growth. While you wait, keep track of all qualifying medical expenses and pay for them using a regular savings account or credit card paid off before interest. Then down the road, when your contributions have likely doubled, reimburse yourself tax-free with the gains.

Resources Mentioned * Take my Retirement Readiness Review online course!

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My home state of Connecticut was ranked the second worst pension fund performer of the past five years. Maybe you’ve had some tough hits to your retirement portfolio over the years too, and are in desperate need of a financial makeover. On this episode, I want to help you avoid Connecticut’s mistakes and ensure your portfolio is set up for retirement success.

You will want to hear this episode if you are interested in... * What is your asset allocation? [2:54] * The power of diversification [6:53] * Comparing active portfolio management to index funds [11:27]

Understanding proper asset allocation One of the biggest mistakes the State of Connecticut made to earn its pension fund performance the second worst spot was asset allocation. Having proper asset allocation means you are well diversified in the asset classes you invest in. The three main classes are stocks, bonds, and cash, but other assets include real estate, commodities, and private equity investments.

It’s important to have exposure to all of the different asset classes because history has shown a diversified portfolio maximizes your returns while protecting you from catastrophic losses. Additionally, the amount you keep invested between risky and conservative investments will determine your potential return. Growth-oriented asset classes like stocks, real estate, and commodities have the highest chance to both make and lose money, whereas cash and bonds are the more conservative investment.

Digging into diversification Investing in different asset classes isn’t enough. You need diverse investments as well! Connecticut did poorly because it had too much money in only a handful of investments that did not perform. If you're heavily concentrated in small-cap, large-cap, or international stocks, think about diversifying across the different sectors of the market.

My recommended diversification strategy for stocks is having a large-cap, mid-cap, and small-cap stock fund. The sizes represent the worth of the company determined by taking the price of their stock times the number of shares. The resulting number represents that company’s market capitalization. You need all three because markets move at different times, and you want to take advantage of every opportunity. Round out your portfolio with some international and emerging market investments, and your stocks will be good to go. Listen to this episode for more on giving your portfolio a makeover!

Resources Mentioned * Why Connecticut’s Investments Are Underperforming * Take my Retirement Readiness Review online course!

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In January of 2023, the United States reached its debt ceiling, sparking concerns that we could default on our debts as early as June 1st. To navigate the debt ceiling crisis, I’m sharing five insights to help you understand what the debt ceiling is, what happens if that limit is breached, how the debt ceiling affects your retirement funds, and the risks of timing the market.

You will want to hear this episode if you are interested in... * What is the debt ceiling? [2:37] * What happens if the U.S. breaches the debt ceiling limit? [3:26] * How would a U.S. debt default impact my retirement savings? [6:02] * Why you shouldn't try to time the market [8:18] * Additional consequences of the debt ceiling crisis [13:01]

Understanding the debt ceiling In order to understand how the debt ceiling crisis impacts your retirement portfolio, we first have to know what the debt ceiling is and how it works. The debt ceiling is the maximum amount of debt that can be incurred by the U.S. Treasury to cover the United States financial obligations as set by law. This debt includes borrowed funds used to pay for things like Social Security, Medicare, and interest on the national debt. Unfortunately, the debt ceiling has been raised 78 times since 1960 and increased under every presidential administration since 1933.

So where is all the hype coming from over the current debt ceiling crisis? Well, politics certainly play a role. Even with the House passing a bill to raise the debt ceiling and cut government spending in April 2023, it’s doubtful whether the barely passed legislation will put a dent in the problem. One of the main contributors to U.S. debt in recent years was the government-sponsored COVID-19 Relief Programs that printed billions of dollars into circulation. As of January 2023, the current debt ceiling sits at $31.4 trillion, begging the question: How will the United States meet its obligations?

What to do if the ceiling breaks There are some potentially drastic repercussions for the economy if the U.S. defaults on its debt in the coming months. Companies that were supposed to receive money from the government won't, which could force them into layoffs and spending less money on investments that drive the economy. And slowing corporate growth could lead to a decrease in the U.S. gross domestic product (GDP). Breaching the debt ceiling could also decrease investor confidence, inciting a selling frenzy and a resulting market plummet.

That last sentence may make you feel like getting your money out of the market, but I would strongly urge you to reconsider. Timing the market sounds easy enough: Buy low, sell high, and wait to buy low again. The problem is that it rarely works out that way because markets are so unpredictable. Things go up and down at the drop of a hat. It’s far better to stay invested and ride the wave, taking short-term losses when you can, and repositioning as needed. But don’t get out! By missing just 10 of the market’s best days, you’ve already cut your investment in half! Listen to this episode for more tips on navigating the debt ceiling crisis.

Resources Mentioned * Going Down the Debt Limit Rabbit Hole * Get 25% off of my Retirement Readiness Review online course until June 1st with Promo Code: RETIRE25

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Series EE savings bonds have been around for over three decades. Many of you either own them or have owned them in the past. On this episode, I’m answering a listener’s question about whether Series EE bonds are still a good investment. We’ll dive into what they are, how they differ from I bonds, and what to do (if anything) with old EE bonds.

You will want to hear this episode if you are interested in... * What are Series EE savings bonds? [2:37] * Examining the difference between Series EE and Series I bonds [5:45] * Should you redeem your old Series EE bonds? [11:14] * Are Series EE bonds still a good investment? [14:25]

All about Series EE bonds The U.S. Treasury issues two types of savings bonds: Series EE and Series I. Series EE is a non-marketable interest-bearing bond. Meaning it can't be traded in the open market, and you have to purchase them through the U.S. Treasury website. These bonds don't pay regular coupon interest, so it's possible that some of you have never actually received money from these bonds unless you’ve intentionally redeemed it.

As far as redemption goes, you have to wait at least one year before cashing them in and five years to do so without penalty. After five years, Series EE bonds can be redeemed at any time for their full value and held for up to 30 years. All EE bonds issued after June 2003 come with the guarantee that they will be worth at least double the value you paid for them if held for 20 years. And EE bonds issued after May 2005 earn a fixed interest rate determined when the bond is purchased.

Understanding the difference between EE and I bonds To understand what to do with EE bonds, you first have to look at how they differ from I bonds. I bonds are composed of a fixed interest rate determined at issue, and a variable rate determined as measured by the Consumer Price Index Urban (CPIU) every six months. One of the reasons I bonds have gained recent popularity is the “I” stands for inflation. Due to the high inflation we've experienced in the U.S. over the past few years, I bonds paid as high as a composite rate of 9.62% in May of 2022.

Unlike Series EE bonds newly issued after May 2005, the interest rate changes every six months. In contrast, EE bonds allow you to lock in your interest rate for up to 20 years. Another big difference is that Series EE bonds are guaranteed to at least double within 20 years, whereas I bonds have no guarantee. The only guarantee with an I bond is whatever the fixed interest rate is. IF there is one at the time of purchase. So which savings bond is right for you, and what should you do with old EE bonds? Listen to this episode to find out!

Resources Mentioned * TreasuryDirect.gov * Are I Bonds Still Worth It, #136 * Increase Your Cash Return With I Bonds, #84 * Get 25% off of my Retirement Readiness Review online course until June 1st with Promo Code: RETIRE25

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When is the right time to start collecting Social Security? Many clients and listeners ask me if they should collect benefits as soon as they can at age 62. On this episode, I’m discussing five things you should consider before collecting Social Security to set you up for retirement success.

You will want to hear this episode if you are interested in... * Understanding key dates and ages for Social Security [1:53] * Are you working? [3:40] * Are you married? [6:53] * How is your health? [8:05] * Do you have dependent children? [9:44] * Were you previously married? [10:43]

Mark your calendar One of the biggest steps toward retirement that anyone can take is beginning to collect Social Security benefits. Many Americans can’t wait to start retirement and opt to receive benefits as soon as they turn 62 years old. This is the first key date in the process of Social Security collection. The second key date is when you reach your full retirement age. For those born in 1960 or later, the full retirement age is 67. Those born before that up to 1954 have their full retirement age reduced by two months. And the retirement age for anyone born before 1954 is 66.

The final key date for Social Security collection is your 70th birthday. If you wait to collect until age 70, you'll receive your highest possible Social Security benefit. This is due to an annual delayed 8% credit earned every year between your full retirement age and age 70. Those who start collecting Social Security at age 62 receive roughly 70% of their benefits, so waiting is usually in your best interest if possible.

For your careful consideration The first thing you should consider before collecting Social Security at age 62 is your employment status. Those who decide to collect their benefits early and continue to work are subject to an earning limit. The SSA deducts $1 from your benefits for every $2 you earn over the limit. That’s not a lot of money to live on, seeing as the annual earning limit for 2022 is $21,240. If you wait to start collecting benefits until your full retirement age but remain employed, the annual earning limit jumps to $56,529.

You should also consider your marital status when deciding if collecting Social Security benefits is right for you. If you’re married and your spouse outlives you, they’re eligible to collect the higher of the two benefits. If you start collecting benefits at 62, you are deciding that you and your spouse will have a reduced benefit amount for the rest of your lives. Consider your options carefully and make the best decision for you and your family. Listen to this episode for more on collecting Social Security at age 62!

Resources Mentioned * Open Social Security * Social Security Intelligence * Get 25% off of my Retirement Readiness Review online course until June 1st with Promo Code: RETIRE25

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There can be a lot of confusion around enrolling in Medicare. Many of my clients believe they HAVE to enroll once they turn 65, but that is not necessarily the case. On this episode, I’m clearing things up by going over five questions you should ask before enrolling in Medicare at age 65.

You will want to hear this episode if you are interested in... * Do you have credible coverage? [2:50] * Are you enrolled in a high-deductible health plan? [3:51] * Will Medicare save you money? [4:34] * Is your spouse on your health plan? [6:22] * Should I enroll in Medicare Part A? [8:41]

Not so fast The first question anyone should ask themselves before enrolling in Medicare is: Do I already have credible coverage? If you work for a company with 20 or more employees that provides health insurance, that coverage will likely exempt you from enrolling in Medicare if you plan to work past 65. Those who retire, are self-employed, or work for a smaller company will need to enroll in Medicare at 65 or face a 10% penalty for every year they don’t enroll.

There’s also the issue of a Health Savings Account (HSA). If you regularly listen to the show, you know I’m a big fan of HSAs. The fact that they let you save money on a pre-tax basis, take a deduction, grow the money tax-deferred, and then withdraw it tax-free for health-related costs makes HSAs one of the best moves you can make while prepping for retirement. However, signing up for Medicare means that you and your employer can no longer contribute to your HSA. So avoid enrolling in Medicare if you have a high deductible HSA that you want to keep building up!

Breaking it down to nickels and sense Another thing to consider is cost. It might cost less to go on Medicare than to stay on your current individual health plan. It could also cost more! The starting premium for Medicare Part B is $164.90. For the first year you’re enrolled in Medicare, they base premiums on your last two years of tax returns. Individuals with an annual income greater than $100,000 and couples with an income that exceeds $200,000 will face a Medicare surcharge called IRMAA (Income Related Medicare Adjustment Amount).

Even paying the base premium of $164.90 won’t cover everything. Medicare does not cover things like out-of-pocket costs or 20% coinsurance, so many people end up enrolling in a supplemental Medicare plan to close the gap. All costs considered, Medicare could end up being a $200 to $400 monthly line item per person. If you're working past 65 and only paying $100 a month for your current health insurance, Medicare is not the answer right now. You are better off staying on your current health insurance until you retire. Listen to this episode for more on enrolling in Medicare at 65!

Resources Mentioned * Get 25% off of my Retirement Readiness Review online course until June 1st with Promo Code: RETIRE25

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In celebration of Financial Literacy Month this April, I want to discuss how to get the most out of your banking experience. On this episode, we’re talking about compound interest and how your big bank could stop you from benefiting from this simple financial literacy concept. As well as recommended alternatives to keep your money safe and working for you.

You will want to hear this episode if you are interested in... * What is compound interest? [1:58] * Why Big Banks aren’t the most bang for your buck [3:48] * Getting rid of ridiculous bank fees [6:38] * Upgrading your bank for more financial features [7:56] * Banking where you’re appreciated [10:52]

Understanding compound interest Compound interest is one of the cornerstones of financial literacy. Albert Einstein called it the eighth wonder of the world because of the snowball effect that happens with compounding. And with interest rates sitting at four to five percent, you are missing some serious snow if your money is not in a money market fund, high-yield savings account, or a short-term CD.

A lack of compound interest is one of the biggest reasons to break up with your big bank. Banks like JP Morgan, Bank of America, Citigroup, Wells Fargo, and US Bancorp are notorious for paying their clients little to no interest. I’m lucky if I make a few dollars per year with my Bank of America account! If you're not getting compound interest on your checking and savings account, or if you are and it’s not at least four percent, you should break up with your bank. Or at least keep a minimum amount of money in that account.

It’s not you, it’s your bank The use of online banks has skyrocketed and for a good reason! Online banks like Charles Schwab, Fidelity, and Vanguard provide a much better value to clients than big brick-and-mortar institutions. One of the ways they do this is by cutting back on fees. Big banks will charge fees just to have the account. Not to mention account minimum fees, overdraft fees, ATM fees, and even check fees.

Another way online banks make the user experience better is through features. A lot of big banks don’t have the greatest features. They may lack online bill pay or a good way to track transactions and overall spending. Big banks are generally older institutions too. Meaning they have old systems that are often too expensive to update and can take forever to adopt features that online banks have had for years. Listen to this episode for more reasons to break up with your big bank!

Resources Mentioned * 7 Best Short-Term Investments To Grow Your Money, #116 * These Are The 15 Largest Banks In The U.S. * A Penny Doubled For 30 Days Is How Much? * Get 25% off of my Retirement Readiness Review online course until June 1st with Promo Code: RETIRE25

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The Silicon Valley Bank collapse has many listeners worried about the health of other banks like Charles Schwab and TD Ameritrade. On this episode, I want to address the safety concerns you and others may have about your investment accounts with TD Ameritrade and Charles Schwab.

You will want to hear this episode if you are interested in... * Comparing Silicon Valley Bank and Charles Schwab [1:27] * Identifying the safeguards that protect your money [4:53] * Exploring past worst-case scenarios and final thoughts [7:34]

Brokerage firms versus traditional banks In the wake of the Silicon Valley Bank and Signature Bank collapses Charles Schwab Brokerage Company has been in the news because there is speculation they made similar long-term high-quality bonds investments that could lead to another bank failure. Banks need to raise more capital anytime bonds decrease in value. Silicon Valley Bank attempted to raise capital by issuing more stock, hoping to right the ship. But this move spooked savers and investors, which created a run on the bank and its subsequent collapse.

Charles Schwab is a different bank because they are a brokerage firm first. And as a brokerage firm, 95% of their assets are on the brokerage side. That's very important because it means they are not held on the bank side. Brokerage firms are required to segregate their investors' brokerage accounts from their own accounts. So in the event of a Charles Schwab collapse, your money on the investment side would not be at risk because those accounts are segmented.

How Charles Schwab keeps your money safe One of the biggest reasons SVB failed was that 90% of its deposits exceeded the FDIC limit of $250,000. Schwab’s CEO recently stated that only 20% of their deposits exceed the FDIC limit, which further demonstrates their commitment to keeping their client’s money safe. Furthermore, there is a minimum capital requirement brokerage firms must have to ensure they have enough liquidity in the event of a crisis.

There are also additional protections for your money through SIPC insurance. That stands for the Securities Investor Protection Corporation, which every brokerage firm has to be a member of. The insurance guarantees $500,000 of coverage per customer for securities assets in a brokerage account and up to $250,000 for any uninvested cash. In the event a brokerage firm didn't abide by their requirements to keep their customer accounts segregated, SIPC insurance would kick in to protect you from fraud. Most brokerage firms carry additional coverage above and beyond SIPC insurance as well. Charles Schwab has been noted to offer coverage for up to $1.15 million in cash per customer. Listen to this episode for more on Charles Schwab and TD Ameritrade!

Resources Mentioned * Is my money safe? | Charles Schwab * Account Protection | TD Ameritrade * Get 25% off of my Retirement Readiness Review online course until June 1st with Promo Code: RETIRE25

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The process of writing a will can feel scary, overwhelming, and time-consuming. Studies show that 50 to 60% of Americans do not have one. However, creating a will is the cornerstone of every estate plan. On this episode, I’m going to give you five reasons why you should write your will now and the best ways to get started.

You will want to hear this episode if you are interested in... * Why you need a will if you’re charitably inclined [2:11] * Maintaining control through a will [2:48] * Taking care of dependants after you’re gone [4:27] * Using a will to leave a legacy [5:10] * Making life easier for your loved ones [6:55] * Creating a will and final thoughts [8:34]

Why you need a will One of the main reasons to create your will now is control. If you don't name the executor of your estate, or you don't name who's going to get your assets, then you will be subject to the specific intestacy laws in the state that you pass away in or where your property is located. Your assets will likely go to family, but not necessarily the family you want it to go to. Nor will it be in the desired percentages without clarity from a will.

If you are charitably inclined, you may want to leave a legacy gift or a percentage of your estate to your favorite organization. Without a will, it is highly unlikely that will happen. Wills also ensure that any children or grandchildren in your care go to the desired guardian in the event of your passing. You can even designate a guardian for the child and a separate person to manage their finances if desired. But you need a will to make it happen.

Support your family through estate planning At the end of the day, the last thing anyone wants to do is make their passing harder for grieving loved ones. Establishing a will now, guarantees your family won’t have to jump through hoops just to settle your estate. Having a will cuts down on time and probate costs because it’s immediately clear who should get what. It also prevents the likelihood that your estate will be contested and avoids family drama during an already difficult time.

Your final step in the will creation process is putting together what’s known as a family love letter. This is a guide for your family to execute your wishes in the event of your untimely passing. It can include wills, asset lists, contact information for lawyers and accountants, insurance policies, and funeral requests. Basically anything your family could need to settle your estate and ensure your exact wishes are honored. The inclusion of a family love letter provides much needed clarity and comfort when your family needs it the most. Listen to this episode for more reasons to write your will now!

Resources Mentioned * Get 25% off of my Retirement Readiness Review online course until June 1st with Promo Code: RETIRE * LegalZoom * Wills.com

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Women have come a long way in terms of owning their financial power. That’s not to say there aren’t still challenges or wage discrepancies, but globally women are poised to take center stage as their earning potential grows. On this episode, I am joined by Brie Williams to discuss tips and strategies for women to build a better relationship with money, achieve their financial goals, and prepare for a successful retirement.

You will want to hear this episode if you are interested in... * Getting to know Brie Williams and unpacking our personal relationships with money [0:42] * Developing positive and realistic money habits [8:26] * Creating a budget, paying off debt, and saving for the future [13:16] * Keeping track of your finances [18:29] * Three financial tips every woman needs [23:20]

Taking back your financial power In 1974, the US government passed the Fair Credit Opportunity Act, which made it illegal for financial institutions to discriminate based on religion, race, national origin, or gender. For the first time EVER, women could apply for and hold their own credit cards and exercise unprecedented financial independence. However, generations of gender-based discrimination left a financial literacy gap that is still felt today. That’s why people like Brie Williams are committed to empowering women to own their finances and achieve their financial goals.

Many of our ideas around money come from childhood. Our family’s attitude towards money will impact our own whether we want it to or not. Thankfully, Brie's mother had a healthy outlook on money, and ensured she started gaining financial literacy at a young age. But many people grow up in households where money is the greatest source of stress. This could lead to all sorts of unhealthy relationships with money. Maybe you avoid it and thus avoid planning for the future of retirement. Or perhaps you spend excessively to feel safe. Whatever your financial hang-up is, it’s time to put a plan in place to get control of your financial future.

Practical steps for healthier finances One of the best ways to develop a better relationship with money is mindfulness. Simply being aware of how you’re spending money can take that relationship in a positive direction. There are several safe apps out there to help you keep track of your finances, but a good ole fashioned pen and paper works too. Having financial conversations is another way to increase money mindfulness. Culturally, we are taught not to talk about money, and women are specifically targeted with this kind of rhetoric. We have to break out of stereotypes and normalize the money conversation for everyone. Discuss your financial goals with trusted family and friends or a financial advisor to make the most out of financial planning.

Everyone is on a journey with their finances. You will make mistakes. But the journey is about gaining competence over time and celebrating the small wins. When we acknowledge our progress, however small, we motivate ourselves to achieve the next positive step. This makes the journey more rewarding because we’re developing healthy financial habits and gaining experience as we go. Listen to this episode for more on building a better relationship with money!

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The last thing retirees on a fixed income want is expensive monthly healthcare costs. If you’re not careful, you could unintentionally trigger higher Medicare Part B and D premiums through an IRMAA surcharge. On this episode, I’m going to show you how to lower your Medicare costs by lowering your taxable income.

You will want to hear this episode if you are interested in... * Understanding MAGI limits [2:01] * The IRMAA appeals process [5:44] * Reducing your taxable income through generosity [7:40] * Tax-efficient investment strategies [10:46] * Converting traditional IRAs and 401ks to Roth accounts [12:46]

How Medicare costs are determined When you enroll in Medicare, you’ll receive a letter detailing your annual Part B and D premiums. The amount is based on the modified adjusted gross income (MAGI) from your tax return two years prior. So for those enrolling in Medicare for 2023, your MAGI will be based on your 2021 tax return. Calculating your MAGI is also not as straightforward as something like an adjusted gross income. The modified adjusted gross income is your adjusted gross income plus tax-exempt interest, plus any interest earned or accrued from US savings bonds used to pay for higher education, plus any income earned while living abroad or from any specific sources not included in your AGI, such as Puerto Rico, American Samoa, Guam, or the Northern Mariana Islands.

Once your MAGI is calculated, the government uses that number and your filing status to determine how much your premium will be. If you are even a single dollar over the limit, you could be forced to pay double for your Medicare premium. That’s why knowing how to reduce your taxable income is a great way to avoid the IRMAA Medicare surcharge.

Reducing your Medicare premiums Avoiding the IRMAA Medicare surcharge should be the first thought in every new Medicare enrollee’s mind. The first option is to file an appeal. Form SSA-44 allows for eight circumstances to justify an appeal including marriage, divorce or annulment, death of a spouse, loss of income-producing property, loss of pension income, or an employer settlement payment. But the most important reason to appeal for retirees is a work stoppage or work reduction.

As previously mentioned, reducing your taxable income is another great way to fight an IRMAA Medicare surcharge. One strategy is to convert traditional IRA and 401k monies to a Roth IRA before the age of 73. Essentially, you’re paying tax now on the Roth funds so you don’t have to pay later, and anything you withdraw will not be considered taxable. Listen to this episode for more on MAGI limits and reducing your taxable income to decrease Medicare costs!

Resources Mentioned * Avoid Overpaying for Medicare In 2021 and Beyond, #31

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The second-largest bank collapse in US history occurred on March 10th, 2023 at Silicon Valley Bank. Two days later, Signature Bank experienced the third-largest collapse. In the wake of these financial shockwaves, people are concerned about the impact of these events on their retirement funds. On this episode, I’m breaking down how banks default, what happened with SVB and Signature Bank, and how you can protect your money from failing banks.

You will want to hear this episode if you are interested in... * Digging into the recent banking debacle [2:16] * Understanding bank defaults [6:03] * Protecting yourself from failing banks [8:33] * The impact of bank defaults on retirement funds [11:19]

Understanding a financial disaster If you’ve had access to the news at any point in the last few weeks, you’ve probably seen that California-based Silicon Valley Bank (SVB) and New York City-based Signature bank experienced the second and third-largest banking collapses in U.S. history, respectively. SVB predominantly served the tech companies and venture capital funds that Silicon Valley is known for. That niche led to $140 billion in unusual growth between Q1 of 2020 and Q1 of 2022.

As you may already know, the money banks safeguard doesn’t lie dormant. Financial institutions use the funds to make investments, like the U.S. savings bonds SVB had their money in. Due to the recent historic and meteoric rise in interest rates, the value of savings bonds has dropped well below their initial value. As a result, SVB’s investors began demanding their money. All while the struggling tech companies SVB services were in desperate need of more funding, causing the bank to sell more of these treasuries at a loss. The perfect storm created enough concern for the bank’s stability that companies pulled their money out left and right. SVB collapsed within 48 hours because it could not meet the estimated $42 billion demands of its patrons.

Keep your money safe The collapse of a bank is not something you see every day. In fact, zero banks collapsed in 2021 and 2022, and only four collapsed between 2019 and 2020. Even though banking defaults are unlikely, the small chance has many people wondering how to keep their money safe. Especially their retirement funds. It’s estimated that 94% of SVB depositors were over the $250,000 per person per bank FDIC limit. Many of the bank's clients were large companies that used the institution for payroll. If the Federal Reserve hadn’t allowed that limit to be exceeded as of March 13th, we would be looking at a banking catastrophe.

The best way to protect yourself from failing banks is to know the $250,000 FDIC limit. That means spouses are jointly insured for up to $500,000 of deposited funds. If you have more than that, you should double-check your bank’s limit and switch if they can’t accommodate your financial situation. The long-term impact of these events on retirement funds should be minimal. However, the short-term impact is still being felt as volatile markets ride a rollercoaster in the aftermath. Listen to this episode for more on the recent banking defaults and how you can keep your money safe!

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Do you need a redo on your Social Security? If you started collecting your benefits too early or spent the money too quickly: fear not! Your retirement isn’t ruined. On this episode, I’m answering a listener question and discussing three ways you can have a do-over with your Social Security benefits.

You will want to hear this episode if you are interested in... * Can you get a Social Security do-over?[1:34] * The power of delayed benefits [3:01] * How to get a lump sum Social Security payout [5:07]

Back to the drawing board Choosing when to start collecting Social Security benefits can be tough. Not every answer is right for every retiree. In general, I recommend that single people with a reasonable benefit or the highest-earning spouse in a relationship delay their benefits until age 70. This is because, between full retirement age and age 70, you’re earning an extra 8% credit for every year that you wait to start collecting. But what happens if you don’t wait? What if you’re like one of our listeners who started collecting benefits at 62, but now they have a job offer and are considering returning to work? Thankfully, there are three ways you can get a redo with your Social Security.

Second chances One way to rewind the clock on Social Security is to pay it all back. Social Security allows you to start over by paying back everything within 12 months of collecting your initial benefits. If your spouse is collecting a spousal benefit off of you, or if you have minor children who receive a benefit, you will have to repay that as well. If you elected to have Medicare Part B or D coverage, those premiums would need to be paid directly because they typically are deducted from your Social Security check.

Usually, people don’t wait until they turn 70 to start collecting Social Security benefits because they are afraid they won’t live until then. The good news is studies show retirees that make it to their full retirement age have a 95% chance of making it to age 70. The other good news is the little-known lump sum option that Social Security recipients have at their disposal. By waiting up to six months after your full retirement age, you can receive a lump sum payment of up to 6 months of benefits. Knowing that you could collect that lump sum at any time if needed can act as a mental safety net while you wait to reach age 70. Listen to this episode for more on getting a do-over with Social Security!

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Healthy finances are only one side of retirement planning. Healthy living also needs to be a priority for every retiree. On this episode, I sit down with Nancy Schwartz of Envision Healthy Retirement to discuss how to live a healthy lifestyle in retirement, get the most out of a post-career world, and create a lasting legacy.

You will want to hear this episode if you are interested in... * How Nancy got involved with retirement health and the importance of good sleep [1:17] * Redefining purpose in retirement [7:41] * Steps to take leading up to retirement [15:15] * How Nancy’s programs help others transition into healthy retirement [19:24]

Redefining purpose Moving from a full-time career to healthy retirement is a huge shift. Not just in our schedule but in our identity. You’ve likely spent decades developing your values and strengths inside of a career. The good news is that everything you've worked so hard for comes with you in retirement. Nancy says a healthy retirement is about refocusing all of your knowledge and skill into something bigger than yourself. That could look like becoming a mentor, leaning into a philanthropic role, or even board work. It doesn’t matter who you are. Retirement can be about rediscovering joy and the passion to give back and support others.

For those approaching retirement, the idea of doing any more work after crossing the finish line of a long and productive career may seem ludicrous. If it’s not a sandy beach or golf course, you probably don’t want to be there. That’s normal. But in my experience, most retirees are out of that phase within 12 months. Human beings need purpose! And retirement is the perfect opportunity to redefine yours. Nancy talks about leaning into excitement and curiosity to discover what that might look like for you personally. After all, everyone is different. No two retirements will look alike.

Prioritizing retirement health When you spend thirty to forty years working in a high-stress, high-demand corporate job, you may discover that your health has taken a hit. This is exactly where Nancy found herself when she was quickly approaching retirement. It also became apparent to her that most retirement courses focused on the tactical and strategic side of things. They left out important lifestyle aspects that impact our longevity and aging process. Retirement planning isn’t just about finances, although that is a major part of it. Equally important is our health and how we take care of ourselves to maximize the years we have left.

This is why Nancy's retirement planning programs have a huge emphasis on health and lifestyle. Her 12-week course is a proprietary science-based program focused around personal growth. One key area of that course is time. Just as professionals need to use time blocking to stay organized, retirees can structure their time to ensure the engagement of mind, body, and soul. She also helps retirees plan for the non-financial financial aspects of retirement planning like wills, trusts, and healthcare proxies. Nancy’s holistic approach to retirement is refreshing, and I hope you all check out the soon-to-be-released online course through her website.

Resources Mentioned * Envision Healthy Retirement

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Over the last year, I’ve heard a lot of buzz about using alternative investments to boost portfolios. However, most people don’t know you need to be an accredited investor to take advantage of these opportunities. On this episode, I’m breaking down alternative investments, how to become an accredited investor, and my personal thoughts on investing outside normal investment accounts.

You will want to hear this episode if you are interested in... * What is an alternative investment? [0:54] * How to qualify as an accredited investor [5:48] * My thoughts on alternative investments [7:33]

Understanding alternative investments The world of investing is vast. There are tons of things you can put your money into and hope for a quality return. Typically, people invest in what is known as registered investments. These include stocks, bonds, mutual funds, ETFs, and stock options. There are requirements that companies have to go through to register an investment so that investors can perform their own due diligence. Registered investments tend to lack the element of surprise because they have been around for a while, and there is a good deal of information on them.

However, certain non-registered investments are considered alternative investments and may offer greater diversification and returns than traditional investment options. Alternative investments are broken into five main categories: hedge funds, private capital, natural resources, real estate, and infrastructure. Because these investments are much riskier than traditional investments, the government requires you to be an accredited investor before pouring your money into them.

The qualifications of an accredited investor Why limit who can make alternative investments? Authorities want to make sure that the people buying them are financially stable and experienced. They want to make sure you are informed about the risk involved in these ventures. And if there were to be a loss, they want to ensure it won't be catastrophic. The truth is a complete loss of your money in a private placement is very possible. If you're buying high-quality stocks, mutual funds, or ETFs, you're never going to wake up one day and find out that it has gone to zero. But if you invest in a private placement, there's a strong likelihood that could happen, and your investment could be completely worthless.

However, if high risk and high reward entices your investment dollars, you need to follow these requirements to become an accredited investor. According to Rule 501 of Regulation D issued by the SEC, a person must have an annual income exceeding $200,000 or $300,000 jointly for the last two years to become an accredited investor. They also need the expectation of earning the same or higher income in the current year. Additionally, you can be considered an accredited investor if you have a net worth exceeding $1 million, excluding your primary residence. Listen to this episode for more on becoming an accredited investor!

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Can the Government Decide to Tax Roth Accounts?, #137 Listeners of the show know I love utilizing Roth accounts for retirement savings when it makes sense for the given situation. But one listener is concerned that the government will decide to start taxing Roth distributions after years of building up their Roth 401k. On this episode, I’ll give you my take on the taxability of Roth accounts as well as helpful retirement savings information for those who use them.

You will want to hear this episode if you are interested in... * Will Roth accounts be taxed? [1:29] * Exploring the taxability of matching Roth 401k contributions [5:33] * How the Secure Act 2.0 changed the catch-up contribution for Roth accounts [6:52] * Final thoughts [10:29]

Getting down to brass tax Studies show a roughly 30% increase in companies offering the Roth 401k as an option for employees to save for retirement. Many people take advantage of Roth accounts for their obvious benefits. Mainly the fact that Roth accounts are not pre-tax accounts. Meaning you pay taxes on any money you put into a Roth account upfront, that money grows tax-deferred while it sits, and then you can withdraw the money tax-free. It’s a great way to save for retirement if you don’t want to worry about taxes on the back end. But this sweet setup has one listener wondering if Congress could decide to pass laws requiring Roth account distributions to be taxed?

The short answer is yes. The U.S. government could pass any law it wants. There’s also a precedent for it, considering Social Security was not taxable until Congress voted to change it in the 80s. However, while a similar change to Roth accounts is possible, I do not believe it’s likely. Traditional retirement accounts are tax-deferred, so the government has to wait until the money is distributed to get their tax revenue. Considering where the national debt is at, it feels unwise to attack an option that gets the U.S. Treasury its money upfront.

Recent congressional changes to Roth accounts Another reason I think it’s unlikely that the government will choose to tax Roth accounts on the back end is all of the positive changes made towards them in the recently passed Secure Act 2.0. One positive step for Roth 401ks is that you can now receive the vested amount of your 401k match for the Roth account into the Roth account. Previously, employer match contributions had to be placed into a traditional 401k even if the initial contribution was put into a Roth. Those looking to take advantage of putting matching contributions into a Roth 401k should remember that Roth accounts are not pre-tax accounts. So any contributions, including matching ones, will need the tax paid upfront.

Additionally, the Secure Act 2.0 made a significant change for catch-up contributions, which allow people over 50 to add up to $7,500 to their standard 401k contribution of $22,500. Starting in 2024, if you are an employee that earns over $145,000, you will not be able to make the catch-up contribution on a pre-tax 401k basis. However, catch-up contributions can still be made to a Roth 401k with the taxes paid upfront. For more on the taxability of Roth accounts, listen to this episode!

Resources Mentioned * 9 Ways The Secure Act 2.0 Can Impact Your Retirement, #133

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I bonds were one of the hottest investments of 2022. But lower interest rates have one listener wondering if they are still worth a spot in her portfolio? On this episode, I’ll break down what I bonds are, why they took off in 2022, if they are still worth it in 2023, and potential investment alternatives.

You will want to hear this episode if you are interested in... * What is an I Bond? [1:40] * Why I bonds were one of the hottest investments of 2022 [3:50] * The benefits and restrictions of I bonds [5:55] * How to buy I bonds [8:34] * Are I bonds still a good investment? [9:55] * Exploring I bond alternatives [12:18]

Breaking down I bonds Before we can determine if I bonds are still a sound investment in 2023, we need to understand what they are. An I bond is a U.S. government savings bond. Government bonds are considered one of the safest investments you can make because of the U.S. democratic system’s stability and payment history. We have never defaulted on any of our payments. The “I” in I bond stands for inflation, and the interest you receive from the bond has two components.

The first part is a fixed rate determined when you purchase the bond. Currently, the fixed rate is sitting at 0.40%. The second part of the bond is tied to a measurement of inflation known as the Consumer Price Index Urban (CPI-U). Every May 1st and November 1st, an interest rate is determined for the I bond based on changes in the CPI-U over the previous six months. Adding both numbers together will determine what percentage of interest you will earn for the year.

What are the pros and cons? There are several perks to investing in I bonds. You don’t pay interest on the bonds while they are deferred. Meaning the interest that you receive just gets added to the value of the 30-year bond. They also typically have a higher interest rate than most checking or savings accounts. And if you use them for education, there is no federal tax on the interest you pay when you redeem them.

However, I bonds do have their fair share of restrictions. One of the biggest sticking points is that you can only purchase up to $10,000 in I bonds per Social Security number or Tax ID per year. The lowest denomination being $25. The only way to get around that limit is by putting up to $5000 into I bonds directly through your federal tax return. Other restrictions include the inability to sell I bonds until you’ve owned them for one year. And if you sell them in under 5 years, you will owe a penalty of 3 months' interest. So are I bonds still worth it? Listen to this episode to find out!

Resources Mentioned * Increase Your Cash Return With I Bonds, #84 * Consumer Price Index Data from 1913 to 2023 * I Bonds Interest Rates

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The most important rule for using credit cards is to pay them off regularly and avoid carrying a balance to avoid paying the usual high-interest rates. Unfortunately, many Americans don’t follow this rule and struggle to pay off growing credit card debt. On this episode, I'm going to cover seven steps to eliminating credit card debt once and for all.

You will want to hear this episode if you are interested in... * Understanding the American credit card debt problem [0:54] * The first steps to debt freedom [2:44] * Two methods for debt repayment [3:51] * Lowering your interest rate to pay off debt [4:58] * Finding the finances to get out of debt [5:56] * Making changes and overcoming the hardest part of eliminating debt [9:24]

The credit card debt problem The average American carries roughly $6,569 in credit card debt. As a country, the U.S. owes $525 billion in credit card debt as of 2022’s third quarter. That is a 15% increase over the same number from 2021 and the largest year-over-year increase in 20 years. However, it's still below the all-time high of $927 billion set in 2019. That number has ballooned over the last two decades, considering in 1999 American credit card debt totaled $480 billion.

Obviously, credit card debt is a problem for a lot of Americans. There is also data on the average credit card balance per state. Interestingly enough, most of the highest credit card debt states are in the northeast. New Jersey is number one with an average balance of $7,721. My home state of Connecticut is a close second, just behind that number. The lowest balance state is Kentucky with an average of $5,441. Now that we’ve clearly identified the problem, let’s take a look at some of the solutions.

Digging out of the debt hole The first step to solving any problem is recognizing that you have one in the first place. There are plenty of legitimate reasons for getting into credit card debt. Maybe you lost your job, or your car broke down unexpectedly. In any case, the only way out is to say: enough. Once you decide it’s time to dig yourself out of the debt hole, the next step is to figure out exactly how much credit card debt you're in. Make a list of the credit cards you have, their balances, and how much interest each card charges so that you can plan your next move for paying off debt.

There are two schools of thought on how debt should be paid off. The first, and in my opinion, the best method is to identify which cards have the highest interest rates and pay those off first. Not all debts are the same. Each credit card company likely charges a different interest rate. Some rates are as high as 29%! So it’s a good idea to make extra payments on whatever card has the highest interest rate. The other repayment method is what’s known as the Snowball Strategy. When utilizing the Snowball, you target the smallest balances first, gradually working up to your largest debt until everything is paid off in an attempt to make debt elimination more manageable. Either method works. The key is to simply start paying off debt and don’t stop until it’s gone.

Resources Mentioned * 7 Ways To Cut Your Monthly Bills, #111 * Debt Repayment Calculator

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In a perfect world, none of us would use credit cards. We would only use cash or debit cards to pay for things, and we wouldn't spend more than we can afford. While this is definitely an option, using credit cards is a necessity for many people. On this episode, I'm going to cover seven credit card rules to live by so you can utilize them responsibly and to their full potential.

You will want to hear this episode if you are interested in... * Why you should always make your credit card payment [1:00] * Automating your monthly credit card payment [3:21] * Getting your annual fee waived [4:16] * Lowering your APR [5:16] * The benefits of keeping your credit accounts open [6:54] * Increasing your limit for a better credit score [8:47] * Taking advantage of your credit card’s secret benefits [11:39]

Understanding credit card basics The first and biggest rule for credit cards is that you have to pay them off regularly. Debt payment represents 35% of your credit score, and it's one of the single most important things you can do to improve it. Even committing to make the minimum payment every month goes a LONG way. Ignoring your credit card bill means asking for a lower credit score and a late fee. Even a single missed payment can drop your credit score by 100 points and raise interest as high as 30%. If you happen to miss your credit card payment, the best thing to do is call your credit card company, make the payment ASAP, and see if there is anything they can do for you. Sometimes they are willing to waive the late fee or forego reporting the mishap on your credit history if you catch it soon enough.

One way to ensure you never miss a payment is to automate your credit card billing. This can be done by contacting your credit card company directly or taking advantage of the online payment services they may offer. That way, if you forget to pay during the holidays or while you’re on vacation, you've at least made the minimum payment to avoid late fees and other credit consequences.

Wait…I can do that with my credit card? One thing about the credit card industry that many people fail to realize is that it’s customer service based. If you are using your credit cards responsibly, you may be able to reach out to your credit card company for additional perks, benefits, and services. Many credit cards charge an annual fee counterbalanced by its benefits, such as airline points or cash back. But if none of those benefits appeal to you, give your credit card company a call and see if they are willing to waive it. The same goes for lowering your annual interest rate. Threatening to leave a company you have a long and positive history with could open the door to a lower APR.

Aside from the standard perks, there are many hidden benefits to owning a credit card. My favorite is that a lot of cards cover collision insurance when you rent a vehicle instead of paying for additional coverage through the rental company. I’ve even had to use this coverage with my credit card, and it worked out great! Another secret perk for some cards is that they carry trip cancellation insurance. Some credit card companies will cover change fees if your travel plans get shaken up. Listen to this episode for more insight on using credit cards well!

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At the end of 2022, Congress passed The Secure Act 2.0. Originally ratified in 2019, this new version introduces even more changes to the ways Americans save for retirement. On this episode, I'm going to cover nine ways The New Secure Act 2.0 will impact current and future retirees.

You will want to hear this episode if you are interested in... * Changes to required minimum distributions [1:48] * Higher catch-up contributions in 2025 [3:42] * Receiving vested matching contributions to Roth accounts from employers [4:44] * Making qualified charitable distributions [5:34] * Introducing qualified longevity annuities [6:45] * Automatic 401k and 403b enrollment and plan portability [7:49] * Contributing to a retirement emergency fund [8:46] * Saving for retirement by paying off student loans [9:32] * Rolling over a 529 Plan to a Roth IRA [9:57]

Change is coming The Secure Act stands for “Setting Every Community Up for Retirement Enhancement” and is designed to provide more accessibility and flexibility when saving for retirement. The Secure Act 2.0 changes several things about its predecessor while introducing new tools for the retirement savings toolbelt. One of those changes is starting January 1st of 2025, individuals 60-63 years old can make catch-up contributions to a workplace retirement plan up to $10,000 annually. Also, the $1,000 catch-up contribution limit for people 50 and older will be indexed for inflation starting in 2024. This means the amount could rise every year based on federally determined cost of living increases.

Another provision made by The Secure Act 2.0 allows defined contribution retirement plans to add a designated Roth account as an emergency savings account. These accounts would be eligible to accept participant contributions from non-highly compensated employees starting in 2024. The contributions would be limited to $2,500 annually or a lower amount set by the employer. The first four withdrawals in a year are tax and penalty-free, and depending on your plan’s rules, contributions may be eligible for an employer match. This gives you the ability to set up an invested emergency fund that grows tax-free and allows you to pay for both short-term and unexpected expenses.

How The Secure Act 2.0 impacts required minimum distributions Required minimum distribution (RMD) changes are another big part of The Secure Act 2.0. As you may know, RMDs refer to the age at which you have to start taking money out of your retirement accounts. The original Secure Act increased that age from 70 to 72. Thanks to 2.0, that age increased to 73 starting January 1st of this year, and individuals turning 72 in 2023 will be able to delay their RMD until the following year. Additionally, the RMD age raises to 75 in 2033.

Prior to the passing of The Secure Act 2.0, there was a steep 50% penalty on late or insufficient RMD withdrawals. Starting in 2023, that penalty drops to only 25%, and further decreases to 10% for an IRA owner that fails to withdraw their RMD but corrects it in a timely manner. Additionally, Roth IRA accounts and employer-sponsored retirement plans will be exempt from required minimum distributions beginning in 2024. Listen to this episode to hear all the ways The Secure Act 2.0 could affect your retirement savings!

Resources Mentioned * Changes To Required Minimum Distributions For 2020, #3

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Hindsight is always 20/20. However, I thought it would be fun to give my market predictions for 2023 at the beginning of the year to see how close I can get. On this episode, I’m going to share six market predictions for 2023 along with historical and financial analysis to support my take.

You will want to hear this episode if you are interested in... * Will the S&P 500 make a comeback? [1:53] * Which will outperform: Growth or value stocks? [4:20] * Large cap or small cap stocks? [6:54] * Bitcoin or gold? [9:37] * Domestic or international stocks? [11:49] * Will interest rates continue to rise? [14:19]

History in the making The S&P 500 is a collection of the 500 largest stocks in the United States. Last year, the S&P 500 declined 19.4%, making it only the 32nd decline in the last 96 years. That means it has only experienced a decline one-third of the time, with the average being around 14%. While the S&P 500’s 2022 decline was higher than average, it’s by no means the worst historical decline.

Another historical gem about the S&P 500 is that it rarely experiences back-to-back declines. There have only been 10 occurrences of consecutive negative returns in its history. The last time we saw this was when the dot-com bubble burst, and 2001 through 2003 saw a decline. Typically when the S&P 500 has a negative return, the following year sees a double-digit increase of 20% or more. That’s why my prediction for 2023 is that the S&P 500 will see a 28% increase, making it firmly 3% higher than it was prior to the decline.

Understanding large and small-cap stocks A big question I have for 2023 is whether small-cap or large-cap stocks will outperform the other at the end of the year. If you’re unfamiliar, you can further categorize stocks based on the size of the company. This is called market capitalization, which can be determined by multiplying the number of shares of a company by the share price. That gives you a value and separates large companies as those with a value of 10 billion or more and small companies with a valuation of 2 billion or less.

When you look at these two stock categories, you can see big differences in performance. The most commonly measured index for large-cap stocks is the S&P 500, and the most commonly measured index for small-cap stocks is the Russell 2000. Large-cap stocks tend to favor technology in consumer staples, whereas small-cap stocks tend to be weighted more toward healthcare, financials, and industrials. So which one will win in 2023? Listen to this episode for my prediction on this and other areas of the market!

Resources Mentioned * 7 Best Short-Term Investments To Grow Your Money, #116

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We are more likely to spend when we have money in our pockets. That’s why automating the process of saving for retirement is a great way to achieve your financial goals. On this episode, I’m going to share five ways you can automate your retirement savings this year and stay on track for years to come.

You will want to hear this episode if you are interested in... * Are you automatically saving? [1:29] * Automated savings through an HSA [3:27] * Using a Roth IRA for automated savings [5:58] * Opening a high-yield savings account [7:39] * Automating debt payments [10:58]

Easy retirement savings automation The first and easiest way to automate saving for retirement is to set up and contribute to a work-sponsored retirement plan. If your company offers retirement options through a 401k, 403b, or 457 plan, chances are you’re already taking advantage of this. But perhaps other financial priorities have kept you from signing up for one of these automated retirement savings plans? If that’s the case, make sure you sign up for a retirement plan this year so you can receive the maximum match for your company.

If you want to max out your 401k this year, my recommendation is to double-check the amounts you’re set to contribute on an annual basis. The maximum contribution for a 401k in 2023 has increased to $22,500 if you're under 50. For those over 50, you can make an additional $7,500 catch-up contribution, bringing the maximum to $30,000. It’s also a good time to review your investments and make sure you have an advantageous asset allocation.

Going beyond the basics Do you have extra money just sitting in your regular bank account? Whether it’s for emergencies or fun, it’s time to check the interest you’re accruing. Without even looking, I can tell you that it's probably almost zero. Banks make money by paying you little to no interest. So take matters into your own hands! One option is opening a high-yield savings account. You could also open a brokerage account by combining an investment and savings account. With interest rates rising, any of these options will give you a more competitive yield than a traditional bank account.

Another great option for automatic retirement savings is through a Roth IRA. If opening a Roth IRA makes sense for your financial situation, you need to determine how much you want to contribute to your Roth account on a monthly or semi-monthly basis once it’s set up. The annual contribution limit for 2023 has gone up to $6,500 for those under 50, and $7,500 for anyone older. If you want to make the maximum contribution, simply divide the amount that applies to you by 12 or 24 and set up automatic contributions in that amount. Listen to this episode for additional tips on automating your retirement savings and investments!

Resources Mentioned * Bankrate.com

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The path towards healthcare coverage in retirement starts with enrolling in Medicare Part A and B. However, it’s only the first step! Signing up for supplemental coverage will save you from out-of-pocket costs beyond the cost of Medicare Part B. On this episode, I’m going to cover Medigap and Medicare Advantage plans, their pros and cons, and how to decide which plan is best for you.

You will want to hear this episode if you are interested in... * Understanding Medicare and supplemental coverage, and Medigap [0:56] * Exploring Medicare Advantage and its various plan types [5:16] * Deciding which supplemental coverage is right for you [8:37]

Closing the Medigap Signing up for Medicare is great, but it doesn’t cover everything. Such as 20% of doctor’s bills, outpatient services, chemotherapy, and more. Thankfully, you have the option to sign up for supplemental coverage through Medigap or Medicare Advantage plans. But which is better? The answer depends on you and your medical needs. The best way to make this choice is to weigh the pros and cons of each supplemental coverage plan.

The benefit of a Medigap plan is that you have a fixed monthly premium instead of unexpected out-of-pocket costs. Additionally, all doctors, clinics, specialists, and hospital systems that accept Medicare will accept your Medigap supplemental insurance. One potential downside to Medigap plans is that they don’t include prescription drug or dental coverage. However, those can be purchased separately. All coverage for Medigap plans is the same, so find the lowest-cost option when shopping.

Breaking down Medicare Advantage plans Medicare Advantage is a different type of supplemental coverage. Rather than purchasing additional insurance, Medicare Advantage is like buying into a separate network. By agreeing to use the doctors, specialists, and hospitals in your local area, your monthly premiums are typically much less than Medigap. In some cases, plans cost as little as $0 per month because a portion of your Medicare Part B premium goes to the insurance company. However, whenever you use a portion of your plan, expect to pay co-pays with an out-of-pocket maximum of $8,300 for 2023.

The three main Medicare Advantage options are an HMO, PPO, or a hybrid HMO POS plan. Health Maintenance Organization (HMO) plans are the most restrictive of the three. Monthly premiums can be as low as $0, but you can only use in-network doctors and facilities, pre-authorizations and referrals are required to see specialists, and one doctor generally oversees all parts of your health care. Preferred Provider Organization (PPO) plans offer a wider range of options, more flexibility, and the ability to use in-network or out-of-network providers without referrals. However, out-of-network providers can cost more. Finally, Health Maintenance Organizations with a Point of Service option (HMO POS) plans have the restrictions of an HMO with the flexibility to get out-of-network referrals at a higher cost. Listen to this episode for more on supplemental health care coverage in retirement!

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A great year-end tax strategy for Connecticut residents is a contribution to the Connecticut Higher Education Trust, also known as the CHET Plan. If you’re preparing to send someone to school, this is an excellent way to save while receiving deductions and creating tax-deferred growth. On this episode, learn five ways to get the most out of contributing to CHET accounts or other qualifying 529 plans.

You will want to hear this episode if you are interested in... * Making your first contribution [1:30] * Taking advantage of the Baby Scholars Program [2:17] * Investing the money carefully [3:30] * Using your CHET account for qualified expenses [10:46] * Creating tremendous tax-deferred growth [13:00]

Get the ball rolling The first thing you need to do to take advantage of the CHET Plan is to make a contribution. Simply opening the account is not enough. But hurry! You have until the end of the year to do so for a deduction in 2022. If you have a child under the age of one or you adopted a child in the last year, you can get up to a $100 bonus by taking advantage of the Baby Scholars Program. Within 60 days of opening the CHET, that $100 bonus will be deposited into your account if you do so by midnight on the child's first birthday or within one year of adopting your child.

Like any investment, the key to maximizing your returns with a CHET account is using caution around how the money is invested. These plans are supposed to be easy. They are set up so that investors need to exert minimal effort to manage them. However, just because something is being done for you does not mean it’s the best option. Listen to this episode to hear my insight on how you should invest funds in a CHET account!

Understanding qualified expenses If your child is going off to school next Spring and you’re about to write a $10,000 tuition check, you have a potential $10,000 deduction just sitting in the bank. Putting that money into a 529 plan like the CHET plan is the easiest way to create a deduction for yourself by simply making a $10,000 contribution and then pulling it out. But a big mistake people make with CHET accounts is not using that money for qualified expenses so that it counts as a deduction.

Qualified expenses include tuition, fees, books, supplies, computers, computer software, and internet access. Room and board also qualify, but the student needs to be enrolled at least half time, and it doesn’t matter if they live on or off campus. Unfortunately, things like renting a car, maintaining a vehicle, travel costs for flying home, and health insurance do not qualify. Other uses for CHET account funds include up to $10,000 per year for elementary and secondary school tuition and a $10,000 lifetime maximum to pay off student loans.

Resources Mentioned * CHET Baby Scholars

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As we close out 2022, I want to ensure you're setting yourself up for success in 2023. A great way to do that while helping you save for retirement is opening a Health Savings Account (HSA). On this episode, I'm going to break down the three reasons why opening an HSA is a smart retirement planning move and how to choose the right HSA provider.

You will want to hear this episode if you are interested in... * Why an HSA is different than any other retirement account [1:43] * Investing with an HSA [4:00] * Using an HSA to reimburse your medical expenses [9:52] * The logistics of opening an HSA [12:24]

What does an HSA have to do with retirement? A critical part of retirement planning is developing strategies that help you save the money needed for retirement. You're likely already doing that through your employer-sponsored retirement plan, but you might not be taking advantage of a potentially better retirement savings option known as a Health Savings Account (HSA). Many people do not automatically connect an HSA to retirement planning, but the two go hand in hand.

The first reason you should consider opening an HSA in 2023 is that it’s a triple tax-free account. This means you receive a deduction when you contribute to the HSA. Any gains, interest, or dividends are tax-deferred while your money is invested. And if you take the money out for health related costs, it's completely tax-free. Once you reach 65, if you have excess money in your HSA that you need for non-healthcare related expenses, you can withdraw the money, and it will be taxed just like a 401k distribution.

Quality investing with an HSA The second reason you should open a health savings account is that the money can be invested. An HSA’s real benefit is that you can experience compound growth like regular retirement accounts. Many people do not use an HSA to it's full potential by treating it like a medical checking account. To get the most bang for your buck, you need to invest your money in some type of a bucket strategy.

Because you’re using this account to pay for out of pocket medical expenses, emergencies, and sicknesses, you want to invest the money in relatively conservative, minimal fluctuation buckets like money market or short term bonds. If you don’t plan on needing the money for a long time, then a longer term investment would be best. This looks like stock funds, real estate funds, and possibly commodities funds for longer term growth. You also want to make sure you’re getting a competitive interest rate. If you're not earning at least 3% interest on your Health Savings Account, you might want to consider switching to a different HSA. Listen to this episode for more on why opening an HSA in 2023 is a great move for retirement planning!

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Many listeners have submitted questions for the podcast. On this week’s episode, I’m going to answer a few! We’ll dive into the logistics of collecting Social Security survivor benefits and the best ways to maximize your benefits in the event of a spouse's passing. I’ll also discuss how to change financial advisors without selling funds and the benefits of tax-loss harvesting.

You will want to hear this episode if you are interested in... * Collecting Social Security survivor benefits [1:07] * Switching to a different financial planner without having to sell funds [4:42] * More on tax-loss harvesting and Roth conversions [6:54]

Navigating the unexpected The unexpected passing of a spouse is heartbreaking. If you haven’t reached full retirement age yet, knowing what to do with your Social Security benefits can ease the financial burden during such a difficult time. First, it’s important to know that any benefits (whether you’re collecting them or not) will receive cost of living adjustments. Next year, that will be an adjustment of 8.7%. There may be an urge to immediately start collecting your own Social Security benefits to account for the loss of income. This is definitely an option, but if you collect your benefits early, there's a limit to how much you can earn before your full retirement age. If you wait until full retirement age to collect your own benefit, you'll receive an additional 8% increase per year for doing so.

Another option would be to collect your late spouse's Social Security survivor benefit. Let's just say your Social Security survivor benefit was $1,500 a month, and you were going to earn under $56,520 that year. You could receive the whole benefit without any reduction. Even if you haven’t reached full retirement age! This is because of a special provision in place for Social Security survivor benefits.

Changing it up It’s been a trying year for the stock and bond market. Many investors are underwhelmed with the results. However, if you feel like your financial advisor could have handled 2022 better, you may be in the market for a new one. Therefore you may be asking yourself (like one of our listeners), “Can I switch to a different financial planner without having to sell the funds and take a big loss?” The answer is YES! You can make the change without having to sell your funds. Most financial planners use a custodian like TD Ameritrade Institutional, Fidelity, Charles Schwab, or other broker-dealers. Most firms will allow you to change companies without selling your funds because they use the Automated Customer Account Transfer Service (ACATS) to make those transfers.

Once you have an idea about who you’d like to hire as your new financial planner, you need to check with them to find out where they plan to hold your money. Give them your account statement and show them the funds that you have. You shouldn’t have any issues if it's a traditional mutual fund. This may also be a good time to assess what you’re investing in. You want to look at the performance of your funds versus the different benchmarks. If it's a large-cap fund, you want to compare how it’s doing against other large-cap funds. Same thing for smaller cap funds. You also want to understand the ongoing costs to manage active funds and evaluate if the investment is worth it.

Resources Mentioned * Social Security And Medicare 2023 Cost Of Living Adjustment, #120 * How To Lower Your Income Taxes With Tax-Loss Harvesting, #117

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Energy costs have risen substantially over the past year. However, there are certain things that you can do to lower your energy usage. Some with little to no effort at all! On this episode, I’m going to cover five things that you can do to specifically lower your electric bill and save hundreds of dollars a year.

You will want to hear this episode if you are interested in... * Shopping for a better supplier rate [2:17] * Requesting a home energy audit [8:53] * Upgrading to a smart thermostat [10:40] * Using LED light bulbs [12:51] * Unplugging vampire appliances [14:07]

Utilize your resources for lower energy costs If you pay the utility bill in your household, it’s evident that natural gas and heating oil prices have risen dramatically over the past year. The cost to fill up your tank at the gas station is another major indication of skyrocketing costs. While we’re powerless to control the cost of oil, there are things we can do to lower our energy and electricity usage.

First, you should check to see if you live in a state with a deregulated energy market like Connecticut. If you live in one of the 26 states that do, there are two components to your electric bill. The first component is known as the delivery rate. This is considered the “regulated” portion of the bill that consumers have little control over. The second potion is the supplier rate. Consult your electric bill to determine the kilowatt per hour cost. That is the rate you want to shop around for! You should be able to use a resource like Connecticut's energizect.com to evaluate which providers in your area have the best supplier rate and make the switch.

Upgrading to downgrade your electric bill Another great way to cut down your energy costs is to install a smart thermostat. These relatively easy-to-install devices learn your heating and cooling habits to use the most efficient amount of energy possible, ultimately lowering your monthly bill. Additionally, if you leave the house for an extended period of time and forget to set your thermostat accordingly, it’s easy to adjust the temperature from afar, saving you from a costly spike in your electric bill.

Connecticut residents have the added benefit of requesting a home energy audit through Energize CT. For a $50 inspection fee, a home inspector can examine your home for possible pitfalls such as air leaks, insufficient insulation, and inefficient appliances. They also provide professional insight on how to fix these issues if they are present. If you implement these upgrades to your home, you can significantly decrease your electric bill and heating costs by up to $200 per year. Listen to this episode for more energy saving tips!

Resources Mentioned * 7 Ways To Cut Your Monthly Bills, #111 * Energize CT * How Much do LED Lights Save?

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7 Year-End Tax Moves to Consider for 2022, #125 The end of 2022 is quickly approaching! This means time is running out to take advantage of money-saving tax breaks. On this episode, I’ll highlight seven year-end tax moves to consider before the ball drops on December 31st. Don’t miss these invaluable tax tips that could make 2022 your best fiscal year yet!

You will want to hear this episode if you are interested in... * Contribute to a traditional IRA [1:12] * Contribute to a state-sponsored 529 Plan [3:02] * Fully fund your Health Savings Account [5:17] * Take a tax loss on any investments outside of retirement accounts [8:16] * Consider a Roth conversion [9:10] * Take advantage of the 401k profit-sharing limit [12:03] * Write off a business use vehicle [14:13]

Give me a break Thanksgiving is over. The all-out sprint through the holidays towards the end of the year has begun! Now is the time to start planning your final tax moves for 2022. The first move I’d recommend before the year ends is contributing to a traditional IRA. Especially if you’re self-employed or don't have access to a retirement plan through work. If you have earned income in 2022, you can make a traditional IRA contribution up to $6,000 if you're under 50 and $7,000 if you're over 50. All of this as a pre-tax deduction, of course!

If you don't have earned income for 2022, but you’re married to someone who did, they can make what's known as a spousal IRA contribution. With an adjusted gross income under $204,000, you can make the full $6,000 or $7,000 contribution depending on your age. That contribution amount gets proportionately phased out until your income exceeds $214,000. You also have the potential to make this contribution if you are covered by an employer-sponsored plan through work. As a single filer, if your adjusted gross income is below $68,000, you can make the full contribution, and if you're a joint filer, that adjusted gross income limit is $109,000.

Invest in your health Another year-end tax tip I highly recommend is fully funding your Health Savings Account (HSA). HSAs have a single and a family plan maximum. The single plan maximum for 2022 is $3,650, and the family plan maximum is $7,300. Additionally, if you're over the age of 55, you can add up to $1,000 as a catch-up contribution. I'm such a big fan of doing this because HSAs are considered a triple tax-free account. You get a tax deduction when the money goes in, and a tax deduction for health-related costs when it comes out. The money also grows tax-deferred!

To really take advantage of this, I would suggest investing the money and leaving it in the account for as long as possible. Be sure to track your health savings account expenses so you can reimburse yourself years after you've made the contributions. The goal is to invest the money in some type of stock-bond portfolio so that it grows in your account. This way you're only actually spending your gains and not the principal. Listen to this episode for more year-end tax moves!

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Do you have old retirement plans or 401ks that you've lost track of, but you're not sure where you can find and gain access to those accounts? On this week's episode, I'm going to cover four ways you can locate those old retirement plans and discuss how to put them to their best use.

You will want to hear this episode if you are interested in... * The three places your old retirement account money could be [1:49] * Using your social security number [3:35] * Searching unclaimed property databases [5:51] * An exciting solution from the industry's leading retirement plan providers [6:57] * What to do with your money when you find it [8:32]

Where is your money? It's been estimated that there are billions of dollars sitting in old retirement plans that people have forgotten about. If you have an old 401k or retirement plan that you’ve lost track of, there are three places where that money could be right now. If your employer is still in business, it's easy to track them down and find out where your old 401k has gone. However, the size of the balance left in your retirement account will most likely determine where the money is.

If you have less than a $1,000 balance, your 401k provider can cash in that account and send a check to you. If this is the case, you want to follow up because the original check is likely invalid, and there could be tax consequences for not rolling the money over within 60 days of the original check being issued. If you had a balance between $1000 and $5,000, the old retirement plan provider can't send you a check, but they can move that account to another IRA. Finally, having a balance over $5000 is the easiest option because chances are it's still with the employer-sponsored retirement plan. It's simply a case of you gaining access to that account.

Finding old retirement accounts What do you do if you don’t know who your old 401k provider is anymore? Maybe it’s been a few years. Maybe your former company has merged a few times, or they went out of business altogether. It still might be a good idea to contact your old 401k provider to see if they still have an account open for you. If you're unable to locate your 401k through your administrator, your next step is to try and look it up with your social security number through various unclaimed retirement benefit registries. And if all else fails, there are several multi-state unclaimed property databases that could be helpful.

Hopefully, one of the three options above yields results, but it can be a lot of work. Recently, a trio of the industry's largest 401k administrators (Fidelity Investments, Vanguard, and Alight Solutions) have teamed up to try to alleviate some of the stress and tax problems that go along with old 401k balances. They've put together a clearing house of sorts where anytime you leave a job with an old 401k balance, after a certain period of time these companies will talk to each other and automatically try to transfer that money over to a new qualified window quickly. If it's less than $1,000, but they don't know where to send it, or it comes back because it was in cash, they would take care of that. And if you have another retirement account with them, they'll try to automatically move that money over to that plan for you.

Resources Mentioned * 'Billions of dollars get left behind': The 401(k) industry now has a 'lost and found' for your old retirement accounts * National Registry of Unclaimed Retirement Benefits * Contacting PBGC About Unclaimed Pensions * FreeERISA * MissingMoney.com * Find your old 401ks * 4 Things To Know Before Doing A 401k Rollover, #40

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Simultaneously saving for retirement and your child’s college education requires delicate and intentional planning. You want to ensure you and your student will get a quality return on the sizable investment you’re making. On this episode, I sit down with educational planning expert Beth Probst of At The Core to discuss the rising costs of college tuition, setting up high school seniors for success, and the tool she created to help college-bound students get the most out of higher education.

You will want to hear this episode if you are interested in... * Setting high school seniors up for success and the misnomer of “good schools” [1:48] * Ryan’s college selection experience, the rising cost of tuition, and questions to answer before investing in higher education [9:07] * Beth’s Guided Self-Assessment and why students should plan before they leap [20:11]

Understanding the cost of higher education It’s hard to believe that college ever cost $6,000 a year. Today you would be lucky to pay that per semester for tuition alone. With the average annual cost for the complete college experience (tuition, books, room, and board) coming in around $35,000, you want to know that you and your student will get the most out of that investment before you sign on the dotted line. Parents will want to do everything they can to help their students not only get into college, but leave that place with the training and skills needed to have a successful career.

One way to do that is through students taking AP classes in high school. These classes of increased difficulty are taught by high school teachers to prepare students for a three-hour test administered at the end of the year. Students can receive college credit for the subject area depending on their score out of five and the preferences of the institution they are enrolled at. Another option to prepare students for college is dual enrollment. This is where students take actual college classes for credit during high school hours at a significantly reduced rate.

Setting students up for success While AP classes and dual enrollment can help prepare students for the college academic environment, knowing why they want to be there in the first place is the key to making a solid academic investment. It’s easy to walk onto a gorgeous college campus and fall in love with an $80,000-per-year school, but unless your student can financially justify the price tag, a less expensive option is probably a better investment. The idea that some schools are better simply because they cost more is nothing but clever marketing. The best school is the one that sets your student up for success without crippling debt.

It’s so important for college-bound students to know who they are and what kinds of careers could be a great fit. College is way too expensive for them to just show up and figure it out. That’s why Beth started At The Core. Her guided self-assessment allows students to dive deep into their strengths, struggles, interests, preferences, values, and lifestyle goals through a series of five one-hour interviews. Then Beth and her team compile that information into a report, giving students a snapshot of who they are and potential careers tied to their natural inclinations. Walking into college with solid career goals and objectives for their educational experience helps students get the most out of their educational investment. For more information listen to this episode and visit the links below!

Resources Mentioned * Follow Beth on LinkedIn * At The Core * Call At The Core

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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The secret to anyone’s life is cash flow. But what if that cash could flow into your bank account through passive income? On this episode, I’m joined by Dustin Heiner of Master Passive Income to discuss investing in real estate through rental properties. We’ll discuss his real estate investment journey, obtaining financing for rental properties, and the best ways to manage those properties.

You will want to hear this episode if you are interested in... * Getting to know Dustin Heiner and how he became successfully unemployed [0:42] * Obtaining financing to purchase a rental property [5:04] * The logistics of managing a rental property [15:33] * Simplifying the real estate investment process [23:05] * What about reserves for rental properties? [31:02] * Final thoughts [33:22]

Financing a rental property When deciding whether to invest in a rental property, one of the scariest aspects is financing. Saving up enough money for a down payment of 25 to 30 percent can feel daunting. However, that’s only one way to do it. Dustin has used 14 different ways to finance a rental property, including mortgages, conventional loans, commercial loans, signature loans, private loans, and even credit cards. He admits that the last one is a bad idea unless you know you’re going to make money.

One financing avenue I didn’t realize was possible for rental properties is using an FHA loan. Buying a home with a 3% down FHA loan is a fantastic way to get into a property. But don't sell it! If you refinance the property to get out of the FHA loan, you can buy and move into a second house with a new FHA loan and a 3% down payment. Then simply rent out the first home and repeat the process with the second. Another financing option Dustin recommends is using private money. He suggests approaching someone you know that can reliably invest in the property and find out what they need to invest. This could be 10% interest, points up front, or equity in the deal. You want to give them a good return while using as little of your own money as possible.

Build the business first Dustin attributes all of his success to a simple principle: build the business first. Most people think the first step to investing in a real estate property is buying the property. But this is actually the LAST step in Dustin’s process. Once he establishes an area he wants to purchase in and how much he needs to charge for rent to cover all expenses with at least $250 in positive income, he seeks out local experts to ensure he can rent the property for the right amount. But don’t count websites like Zillow as experts! You want to find and hire experienced property managers who know the area and can give you insight into whether or not it’s a good investment before you buy.

The other reason you want quality property managers is that they will end up running the day-to-day of your business. They interact with tenants, collect rent, facilitate most repairs, and even deal with evictions if necessary. A common question for Dustin is how he affords property managers? The short answer is: he doesn’t. Everything needed to maintain the property, including its managers, is baked into the cost of rent. Listen to this episode for more on investing in rental properties for extra income!

Resources Mentioned * FREE Real Estate Investing Course

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Housing is the number one cost and chief concern for people in retirement. What if you could use the equity in your home to generate income and put your mind at ease? On this week’s episode, join me for a conversation with Mutual of Omaha’s Mitch Cooper to discuss reverse mortgages. We’ll dissect the pros and cons and give you the information you need to decide if a reverse mortgage makes sense for your retirement.

You will want to hear this episode if you are interested in... * Who is eligible for a reverse mortgage and what are the logistics? [2:01] * The most strategic use of a reverse mortgage [8:18] * Does a reverse mortgage have a downside? [19:37] * Final thoughts [23:00]

What is a reverse mortgage? The average American has two-thirds of their wealth tied up in home equity. So the biggest question becomes how do you access that equity safely and strategically? Enter the reverse mortgage! The simplest way to think about a reverse mortgage is as a lien on your property. You still own your home, but you pay off the loan when you sell, and there is no required monthly payment as long as you still live there. Once the last borrower leaves the home, the loan is due. However, be aware that there is still interest accruing monthly!

One of the biggest factors for reverse mortgage eligibility is age. The minimum age requirement for an FHA reverse mortgage is 62 years old. Some proprietary programs go down to age 55, but that will vary by state. Unlike traditional loans, reverse mortgages won’t give you access to 80% of your home’s value. The amount of a reverse mortgage loan depends on age and interest rates. The older you are and the lower the interest rates, the more equity you will have access to. Typically, a 62-year-old can liquidate around 30% of their home's value through a reverse mortgage.

Less house, more estate The most strategic use for a reverse mortgage is using it to open a line of credit. Let’s say you own your house free and clear, and you qualify for a $200,000 reverse mortgage. With no existing mortgage payment, you could leave that in the line of credit, giving you a liquid tax-free bucket that can be used for several retirement income strategies. One of which is using a line of credit from a reverse mortgage to pay for long-term care if needed. Or as an insurance policy in case of emergencies.

Ultimately, reverse mortgages should be viewed as an asset protection tool. With the stock markets seeing losses as high as 20%, a reverse mortgage can be used as a timely shield to prevent your IRA from getting drained in down markets. Using a reverse mortgage alongside other assets makes both last longer. Research shows that using a reverse mortgage in this strategic manner actually increases the value of your estate because of how it can protect your other assets. Listen to this episode for more on reverse mortgages!

Resources Mentioned * Retire With Ryan Podcast 2022 Listener Survey * Email Mitch

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There’s a new cost of living adjustment for both Social Security benefits and Medicare! But what does it mean? And how will these changes impact your retirement? On this week's episode, I'm going to address the recent announcement from Social Security regarding the 2023 cost of living adjustment and answer a listener's question on signing up for Medicare while using COBRA insurance.

You will want to hear this episode if you are interested in... * How Social Security cost of living adjustments are determined [1:22] * Cost of living adjustments for Medicare [3:42] * What is the Social Security Wage Base Cap? [6:34] * COBRA or Medicare: What should you choose? [8:48]

Understanding cost of living adjustments for Social Security benefits Every year, the Social Security Administration (SSA) performs a cost of living adjustment (COLA) for Social Security benefits. The SSA uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPIW) to determine the adjustment. They take the average of the indexes for July, August, and September, and then subtract the average for the same period from the previous year. That is how the recently announced 8.7% increase in Social Security benefits was formulated. Thankfully, you don’t have to wait to get your statements to find out how this impacts your benefits. Simply go to SSA.gov and log in or create an account to view the changes.

Additionally, if you are not yet collecting Social Security benefits, the COLA will not show up directly on your statements. Rather, when your Social Security benefit is calculated annually, it will be increased by the cost of living adjustment so that when you actually claim your benefit, they will be adjusted for this increase. If you’re still planning to delay your benefit, then any future cost of living adjustments will increase the amount you could receive.

How cost of living adjustments impact Medicare Aside from Social Security benefits, Medicare beneficiaries also received a cost of living adjustment. The base premium for Medicare Part B actually decreased to $164.90 from last year’s $170.10. Usually, when we have inflation, there's an increase in Social Security benefits, but the cost of Medicare goes up as well. This Medicare decrease is a welcome relief for retirees struggling to keep up with the current rate of inflation.

Another facet of this Medicare announcement is a change to the income-related monthly adjustment amount (IRMA). This is the additional amount you may have to pay on top of the standard Medicare Part B premium if your income exceeds a certain level. For this year, single filers will have to pay the surcharge if their income is over $97,000 (up from $91,00), and joint filers will have extra fees with an income over $194,000 (up from$182,00). They also announced that the maximum amount for this surcharge is $395.60 per month per person for Medicare Part B. Listen to this episode for more on the Social Security and Medicare cost of living adjustments!

Resources Mentioned * Retire With Ryan Podcast 2022 Listener Survey * SSA Press Release on Cost of Living Adjustment * Avoid Overpaying For Medicare In 2021 And Beyond, #31

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Have you ever gotten a suspicious text or email that felt real and didn’t know what to do? When was the last time you changed your online bank account password? In honor of Cybersecurity Awareness Month, I thought it would be the perfect time to talk about the seven steps you can take to protect yourself from becoming a victim of cybercrime.

You will want to hear this episode if you are interested in... * Are your passwords strong enough? [2:57] * Who is managing your passwords? [4:14] * The power of two-factor authentication [5:38] * How to avoid malicious emails [7:05] * When was your last data backup? [9:07] * The risks of public Wi-Fi [10:10] * What if I’ve already been hacked? [13:06]

The five most common cybercrimes As we continue to move at breakneck speeds into an increasingly digital age, digital security should be one of our top priorities. One of the first ways to stay protected is to know the most common cyber schemes employed by the internet’s criminals. The most common technique is called phishing, where an attacker uses generic spam emails or targeted communications to acquire your personal information. Spoofing is similar to phishing, but it’s more complex in that the attackers mimic a specific organization or website to get your information or to install ransomware or malware.

Ransomware is software that criminals use to lock you out of your system or important files and extort you for money to regain access. Malware is software that actually gives attackers control of your system and opens the door for even more damage. The final thing to keep on your security radar is IoT or “Internet of Things” hacking. This type of hacking is done by accessing your computer and stealing data through other connected devices like smartphones and smart appliances that are connected to the same wireless network. The terms and conditions for some apps even give companies permission to do this kind of data mining, so be careful what you download!

Keep it secret, keep it safe It’s 2022, yet the most common digital password is still 123456. That fun fact is only fun if you're a hacker. Professional cybercriminals have software that can easily guess simple passwords like this. You want to make sure the passwords guarding your important accounts are complex and at least eight characters long. That goes double for your smartphone! Our entire lives are on these things, and major damage can be done if they fall into the wrong hands.

The most common complaint about having quality passwords is that they are too difficult to remember. That’s why it’s essential to use a password manager such as 1Password or Bitwarden on your computer and mobile devices. Apple users have an advantage through the password management software called Keychain built into every device. Not only does it store all of your passwords using biometrics (i.e. fingerprint or Face ID), it will help you generate and save advanced passwords to keep all of your information safe. Listen to this episode for more cybersecurity tips!

Resources Mentioned * Retire With Ryan Podcast 2022 Listener Survey * 3 Ways to Protect Your Money From Hackers With Devin Kropp (Part 1), #45 * 3 Ways to Protect Your Money From Hackers With Devin Kropp (Part 2), #46 * NordVPN

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Despite our industry's best efforts to protect investors from scams and bad recommendations, good people are being taken advantage of every day by shady financial advisors. On this episode, I’m going to address the 10 questions you need to ask any financial advisor you want to hire or are currently working with and give you my answers so that you stay protected from financial predators.

You will want to hear this episode if you are interested in... * Are you a fiduciary and a fee-only firm? [1:51] * Do you have any disclosures or complaints? [5:00] * Do you have any specific certifications? [5:34] * Do you have any specialties and what services do you offer? [7:41] * How are you compensated for your services? [8:33] * What other charges will I potentially incur? [9:22] * What’s your investment philosophy? [10:54] * Where do you keep your client’s money and how can they see it? [11:51] * How often will we communicate? [13:40] * How many clients do you advise and how long has your oldest client been with you? [14:40]

Integrity first One of the most important questions you can ask a potential financial advisor is if they are a fiduciary. This means that as an advisor, they are required to put their client’s interests ahead of their own at all times. Unfortunately, non-fiduciary advisors make recommendations to their clients that solely benefit them every single day. It’s extremely important to verify that any potential or current financial advisor is a fiduciary because they will be legally and ethically bound to handle your money responsibly.

The second and equally important question you should ask a financial advisor you’re looking to hire is if they are a fee-only advisor working for a fee-only firm. This means neither the firm nor the advisor accepts commissions for recommendations they make or for managing their client’s portfolios. However, some fiduciary advisors maintain insurance and brokerage licenses that allow them to receive commissions for the recommendations that they make. I believe this creates an unhealthy conflict of interest and that being a fee-only advisor is the way to go.

Specialties, services, and security Another great piece of information to know about a potential financial advisor is if they have any specialties and what services they offer. You want to select a financial advisor whose expertise matches your needs. If you’re hoping to start a small business you don’t want to go with someone who specializes in people going through a divorce. My specialty is retirement planning. I help people within five years of retirement through comprehensive financial planning and wealth management services. The right financial advisor is the one that matches your goal.

Finally, you need to know where your financial advisor keeps their client’s money and how you can see it. Bernie Madoff ripped off so many people because he was personally holding their investments in an account with unrestricted access. I urge all investors not to allow their advisor or their advisory firm to hold their investments directly. Rather, their investment should be held by an independent third party known as a custodian like TD Ameritrade or Charles Schwabb. Never personally write a check to your financial advisor. Any fees for services should be made out to the firm itself. Listen to this episode for more insights on hiring a financial advisor!

Resources Mentioned * Retire With Ryan Podcast 2022 Listener Survey * Top 10 Interview Questions When Hiring a Financial Advisor (Blog) * Investment Adviser Public Disclosure Website * BrokerCheck * CFP Board

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Wouldn’t it be nice if every investment was a winner? While not every investment will make you money, there are strategies to help you make the most of a loss. On this episode, I’m going to show you the dos and don’ts of tax-loss harvesting so you can lower your income taxes and soften potential losses in the market.

You will want to hear this episode if you are interested in... * What is tax-loss harvesting [1:10] * Examples of tax-loss harvesting [2:30] * Four things to be aware of when developing a tax-loss harvesting strategy [4:29] * Do your tax-loss harvesting homework [8:13]

Understanding tax-loss harvesting Tax-loss harvesting is one of the many tax strategies you should consider as an investor. It works by selling investments that are down in value from your purchase price. You can use the loss to offset other taxable capital gains from that year or reduce your ordinary income for that year by up to $3,000. Then you have the option to reinvest that money into a similar investment or purchase the same investment after 30 days to avoid missing any recovery.

This strategy can be used for both short-term and long-term investment losses to soften the blow and stay invested in the market. Let’s say you have a long-term capital loss of $15,000 and you sell it off. If you have no other capital gains for the year, take $3,000 of that $15,000 loss as a deduction on your taxes this year against your ordinary income. The remaining $12,000 loss would carry over to use the following year off any other gains, or you could continue writing off the remaining loss up to $3,000 per year until it's used up. Long-term losses don't have limitations either, so you can keep using them over your lifetime to offset future gains or to write them off as ordinary income deductions.

The rules and limitations of tax-loss harvesting While tax-loss harvesting in the current economic climate feels like a no-brainer, there are some things you need to be aware of when developing this strategy. The first is that tax-loss harvesting cannot be used with retirement accounts such as 401ks, IRAs, Roth IRAs, SEP IRAs, Simple IRAs, 403 B's, etc. Secondly, losses need to be first used to offset like gains. If you have long-term losses, those losses first need to be applied against any long-term gains, and vice versa for short-term gains and losses.

For instance, if you believe the soft drink industry is a solid investment despite your current losses, you could sell Coke to buy Pepsi. It’s a little more complicated with things like funds. Let’s say you’re invested in an S&P 500 index fund. You could sell that fund and buy a "different enough" index fund that tracks a different index, such as the total stock market index or the Russell 1000. You just have to ensure that you don’t buy a substantially identical investment within 30 days of the sale, or that loss is disallowed for current income tax purposes. For more on this and other tax-loss harvesting tips, listen to this episode!

Resources Mentioned * Retire With Ryan Podcast 2022 Listener Survey * What Is The Difference Between An Index Fund And An ETF?, #113 * IRS Revenue Ruling 2008-05

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With the Federal Reserve aggressively raising interest rates, it’s a great time to consider your options for short-term investments. Whether you have liquid cash or you’re a conservative investor, this episode is for you! Join me as I dive into the seven best short-term investments you can make to grow your money and save for retirement.

You will want to hear this episode if you are interested in... * Exploring money market accounts for short-term investing [2:22] * The benefits of a one-year CD [6:03] * What about short-term bond funds? [7:34] * Taking advantage of Treasury bonds [10:09] * Is a fixed annuity right for you? [11:41] * The best short-term investment you can make [13:00]

Staying liquid Online banking has been a commonplace practice for many years. But did you know you can use online banks to find a good money market rate? Websites like Bankrate and NerdWallet (linked below) can help you find a competitive rate with several online banking institutions. However, not all online banks are created equal. Some may have stipulations that keep your money tied up for a fixed period, or there are specific limitations about transferring money in and out. That’s why it’s a good idea to know your options and read reviews about the online banks you're considering using for a money market account. Money market accounts are also the most liquid short-term investment option, so it’s worth exploring if that is important to you.

Another money market option for short-term investing is a mutual fund account. Rather than going through a bank or credit union, these money market accounts are obtained through a mutual fund company like TD Ameritrade Institutional, Charles Schwab, and Fidelity. This is a great investment option if you want your stocks, bonds, and mutual funds all in the same place.

Breaking down bonds and annuities If liquidity is not a priority in your investment portfolio at this time, you may want to consider U.S. Treasury bonds. Typically, a two-year Treasury bond yields less than a ten-year one. Yet right now, the two-year bonds are paying almost 4% interest compared to the ten-year rate of 3.5%. The downside to this investment option is that anytime you sell a bond, the price could go down if interest rates have gone up. However, if you're willing to hold this bond for two years, the worst-case scenario is getting back nearly 4% interest. Treasury bonds are also not subject to state income tax which is another benefit of this strategy.

If you're willing to have even less liquidity with a little bit more yield, you could consider fixed annuities as a good short-term investment. A fixed annuity is an investment made with an insurance company where they invest your money in something else and pay you a higher interest rate because you're giving up some liquidity. For instance, if you want to take your money out early from a three-year fixed annuity, there will most likely be penalties. You may not even be able to make a withdrawal in the first year. Though interest rates for annuities are around 4.4%, they are subject to state and federal income tax, further decreasing your possible yield. Weigh these pros and cons before choosing annuities as a short-term investment. Listen to this episode for more short-term investment options to grow your money!

Resources Mentioned * Retire With Ryan Podcast 2022 Listener Survey * Bankrate * NerdWallet

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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With the Federal Reserve aggressively raising interest rates, it’s a great time to consider your options for short-term investments. Whether you have liquid cash or you’re a conservative investor, this episode is for you! Join me as I dive into the seven best short-term investments you can make to grow your money and save for retirement.

You will want to hear this episode if you are interested in... * Exploring money market accounts for short-term investing [2:22] * The benefits of a one-year CD [6:03] * What about short-term bond funds? [7:34] * Taking advantage of Treasury bonds [10:09] * Is a fixed annuity right for you? [11:41] * The best short-term investment you can make [13:00]

Staying liquid Online banking has been a commonplace practice for many years. But did you know you can use online banks to find a good money market rate? Websites like Bankrate and NerdWallet (linked below) can help you find a competitive rate with several online banking institutions. However, not all online banks are created equal. Some may have stipulations that keep your money tied up for a fixed period, or there are specific limitations about transferring money in and out. That’s why it’s a good idea to know your options and read reviews about the online banks you're considering using for a money market account. Money market accounts are also the most liquid short-term investment option, so it’s worth exploring if that is important to you.

Another money market option for short-term investing is a mutual fund account. Rather than going through a bank or credit union, these money market accounts are obtained through a mutual fund company like TD Ameritrade Institutional, Charles Schwab, and Fidelity. This is a great investment option if you want your stocks, bonds, and mutual funds all in the same place.

Breaking down bonds and annuities If liquidity is not a priority in your investment portfolio at this time, you may want to consider U.S. Treasury bonds. Typically, a two-year Treasury bond yields less than a ten-year one. Yet right now, the two-year bonds are paying almost 4% interest compared to the ten-year rate of 3.5%. The downside to this investment option is that anytime you sell a bond, the price could go down if interest rates have gone up. However, if you're willing to hold this bond for two years, the worst-case scenario is getting back nearly 4% interest. Treasury bonds are also not subject to state income tax which is another benefit of this strategy.

If you're willing to have even less liquidity with a little bit more yield, you could consider fixed annuities as a good short-term investment. A fixed annuity is an investment made with an insurance company where they invest your money in something else and pay you a higher interest rate because you're giving up some liquidity. For instance, if you want to take your money out early from a three-year fixed annuity, there will most likely be penalties. You may not even be able to make a withdrawal in the first year. Though interest rates for annuities are around 4.4%, they are subject to state and federal income tax, further decreasing your possible yield. Weigh these pros and cons before choosing annuities as a short-term investment. Listen to this episode for more short-term investment options to grow your money!

Resources Mentioned * Retire With Ryan Podcast 2022 Listener Survey * Bankrate * NerdWallet

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Long-term investments are a great way to help you save for retirement and add stability to your future. With so many options available, you need to know which investments are worth the time and resources you will ultimately put into them. On this episode, I’m going to discuss the five best long-term investments to help grow your money and set you up for retirement success.

You will want to hear this episode if you are interested in... * Reviewing why index funds are great investments [1:56] * Why you need to invest in yourself [4:14] * The beauty of depreciation [5:56] * Embracing the entrepreneurial spirit [9:19] * The rules for owning individual stocks [10:42]

Hitting the books to get ahead One of the best investments you can make is an investment in yourself and your future. A great way to do that is by investing in training and education for yourself and your family. Although, education does not necessarily mean getting a degree. There are plenty of skills and trades that can improve your income potential. Then theoretically, you'll have more disposable income to invest in other opportunities mentioned in this episode.

Before investing in additional education, always do research to figure out what your increased earning potential will be. One of the best ways to do that is through a cost-benefit analysis. If it's going to take you 20 years to get back the investment you're making in education, it may not be worth it. Especially, if you’re entering retirement in that timeframe. However, the ROI is three to five years away, expanding your knowledge base and your income potential is probably well worth doing.

Making the most out of real estate investment Real estate is an investment I talk about often on this podcast. One of the major reasons you should consider real estate as a long-term investment is depreciation. This allows you to write off a certain percentage of the acquisition cost for the property if you are investing in something outside of your primary residence. For instance, a residential rental property can be written off over 27 years, and commercial property has a write-off term of 39 years. Meaning, that even though you may be earning income off of your real estate investment, you can offset the amount on your taxes through depreciation.

That is on top of the costs property owners usually deduct like taxes, insurance, and other maintenance costs. Assuming you use a mortgage to acquire the property, the income from your tenants will help you pay it down. Once it’s paid off, you could keep renting the property out for additional cash flow or sell it and make a profit. Another benefit to property investment is leverage. Most banks require you to put down between twenty and thirty percent, whereas stocks have to be paid for in full. Real estate allows you to get more exposure with a smaller amount of money. Listen to this episode for more long-term investment strategies!

Resources Mentioned * Retire With Ryan Podcast 2022 Listener Survey * What Is The Difference Between An Index Fund And An ETF?, #113 * 6 Ways To Make Money From Real Estate, #54 * 7 Things To Know About Investing In Rental Properties, #55

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Long-term investments are a great way to help you save for retirement and add stability to your future. With so many options available, you need to know which investments are worth the time and resources you will ultimately put into them. On this episode, I’m going to discuss the five best long-term investments to help grow your money and set you up for retirement success.

You will want to hear this episode if you are interested in... * Reviewing why index funds are great investments [1:56] * Why you need to invest in yourself [4:14] * The beauty of depreciation [5:56] * Embracing the entrepreneurial spirit [9:19] * The rules for owning individual stocks [10:42]

Hitting the books to get ahead One of the best investments you can make is an investment in yourself and your future. A great way to do that is by investing in training and education for yourself and your family. Although, education does not necessarily mean getting a degree. There are plenty of skills and trades that can improve your income potential. Then theoretically, you'll have more disposable income to invest in other opportunities mentioned in this episode.

Before investing in additional education, always do research to figure out what your increased earning potential will be. One of the best ways to do that is through a cost-benefit analysis. If it's going to take you 20 years to get back the investment you're making in education, it may not be worth it. Especially, if you’re entering retirement in that timeframe. However, the ROI is three to five years away, expanding your knowledge base and your income potential is probably well worth doing.

Making the most out of real estate investment Real estate is an investment I talk about often on this podcast. One of the major reasons you should consider real estate as a long-term investment is depreciation. This allows you to write off a certain percentage of the acquisition cost for the property if you are investing in something outside of your primary residence. For instance, a residential rental property can be written off over 27 years, and commercial property has a write-off term of 39 years. Meaning, that even though you may be earning income off of your real estate investment, you can offset the amount on your taxes through depreciation.

That is on top of the costs property owners usually deduct like taxes, insurance, and other maintenance costs. Assuming you use a mortgage to acquire the property, the income from your tenants will help you pay it down. Once it’s paid off, you could keep renting the property out for additional cash flow or sell it and make a profit. Another benefit to property investment is leverage. Most banks require you to put down between twenty and thirty percent, whereas stocks have to be paid for in full. Real estate allows you to get more exposure with a smaller amount of money. Listen to this episode for more long-term investment strategies!

Resources Mentioned * Retire With Ryan Podcast 2022 Listener Survey * What Is The Difference Between An Index Fund And An ETF?, #113 * 6 Ways To Make Money From Real Estate, #54 * 7 Things To Know About Investing In Rental Properties, #55

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Everyone is buzzing about the newly passed student loan relief program. The measure is estimated to help up to 43 million federal loan borrowers who will qualify for this debt relief. On this episode, I’ll go over the program and how it works, how to qualify, and the different ways you could potentially reduce your student loans.

You will want to hear this episode if you are interested in... * How much of my student loan debt can be forgiven? [2:17] * Qualifying for student loan forgiveness [3:22] * Exploring the logistics of the student loan relief program [5:47] * Is the loan forgiveness plan a sure thing? [10:15]

Meeting the criteria The biggest question on every student borrower’s mind is how much of my debt can be forgiven with the new student loan relief program? For those who don't exceed the income cap, you'll qualify for up to $10,000 of traditional federal loans forgiven or $20,000 of Pell Grants. You can determine the type of loan you have by logging into your account with studentaid.gov. One thing to note is the debt relief is also not a lump sum. As a result, if your loan is less than the maximum forgiveness amount, you won’t be able to pocket the cash, but your loan will be paid off.

As mentioned, there is a qualifying income gap you would need to meet in order to be eligible for loan forgiveness. An individual borrower must have an income below $125,000 in either 2020 or 2021. For married couples filing joint taxes or as head of household, the annual income must not exceed $250,000. Eligibility is based on the adjusted gross income from either 2020 or 2021. Unfortunately, income from 2022 cannot be used. Current dependent college students can receive loan forgiveness, but they would have to use their parental income from 2020 or 2021, and the loans cannot have been issued after June 30, 2022.

Which loans qualify? Another great question about the new student loan relief program is which loans are eligible for debt forgiveness? Any Federal Direct Loan will be eligible, including direct subsidized and unsubsidized loans, direct Grad PLUS loans, direct Parent Plus loans, and direct consolidation loans. Additionally, Federal Family Education Loans (FFEL) are eligible with a few caveats. The Federal Family Education Loan program was discontinued in 2010, and allowed private lenders to work with borrowers to provide education loans guaranteed by the government. FFEL loan holders are eligible as long as the debt is held by a federal loan servicer.

However, commercially held FFEL loans are not automatically eligible for student loan forgiveness. You can find out who holds your student loan by once again visiting student aid.gov. If your loan is commercially held, you’re not out of luck yet! The current workaround for borrowers is to move their FFEL loan to a federal direct consolidation loan, making it eligible for loan forgiveness. Listen to this episode for more information on the new student loan forgiveness program and how you could be eligible to eliminate some or all of your student debt!

Resources Mentioned * Retire With Ryan Podcast 2022 Listener Survey * Federal Student Aid * Department of Education

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Everyone is buzzing about the newly passed student loan relief program. The measure is estimated to help up to 43 million federal loan borrowers who will qualify for this debt relief. On this episode, I’ll go over the program and how it works, how to qualify, and the different ways you could potentially reduce your student loans.

You will want to hear this episode if you are interested in... * How much of my student loan debt can be forgiven? [2:17] * Qualifying for student loan forgiveness [3:22] * Exploring the logistics of the student loan relief program [5:47] * Is the loan forgiveness plan a sure thing? [10:15]

Meeting the criteria The biggest question on every student borrower’s mind is how much of my debt can be forgiven with the new student loan relief program? For those who don't exceed the income cap, you'll qualify for up to $10,000 of traditional federal loans forgiven or $20,000 of Pell Grants. You can determine the type of loan you have by logging into your account with studentaid.gov. One thing to note is the debt relief is also not a lump sum. As a result, if your loan is less than the maximum forgiveness amount, you won’t be able to pocket the cash, but your loan will be paid off.

As mentioned, there is a qualifying income gap you would need to meet in order to be eligible for loan forgiveness. An individual borrower must have an income below $125,000 in either 2020 or 2021. For married couples filing joint taxes or as head of household, the annual income must not exceed $250,000. Eligibility is based on the adjusted gross income from either 2020 or 2021. Unfortunately, income from 2022 cannot be used. Current dependent college students can receive loan forgiveness, but they would have to use their parental income from 2020 or 2021, and the loans cannot have been issued after June 30, 2022.

Which loans qualify? Another great question about the new student loan relief program is which loans are eligible for debt forgiveness? Any Federal Direct Loan will be eligible, including direct subsidized and unsubsidized loans, direct Grad PLUS loans, direct Parent Plus loans, and direct consolidation loans. Additionally, Federal Family Education Loans (FFEL) are eligible with a few caveats. The Federal Family Education Loan program was discontinued in 2010, and allowed private lenders to work with borrowers to provide education loans guaranteed by the government. FFEL loan holders are eligible as long as the debt is held by a federal loan servicer.

However, commercially held FFEL loans are not automatically eligible for student loan forgiveness. You can find out who holds your student loan by once again visiting student aid.gov. If your loan is commercially held, you’re not out of luck yet! The current workaround for borrowers is to move their FFEL loan to a federal direct consolidation loan, making it eligible for loan forgiveness. Listen to this episode for more information on the new student loan forgiveness program and how you could be eligible to eliminate some or all of your student debt!

Resources Mentioned * Retire With Ryan Podcast 2022 Listener Survey * Federal Student Aid * Department of Education

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Investing can be complicated and confusing. With so many investment strategies out there, it’s important to find the one that best works for your portfolio. On this episode, I’m going to discuss the difference between index funds and an ETF, their pros and cons, and how to determine which one is right for you.

You will want to hear this episode if you are interested in... * Defining index funds and ETFs [1:36] * Differentiating between index funds and ETFs [5:19] * Deciding which investment is right for you [12:01]

Understanding index funds and ETFs An index fund is an investment designed to track a particular index. One of the most popular indexes is the S&P 500, an annual ranking of the top 500 companies doing business in the United States. Investors don’t own a piece of each of these companies in equal percentages, but rather the bigger companies in the index represent a larger percentage of your holdings. This is known as a cap-weighted index. Studies have shown that if you hold an index fund from year to year versus other investments where you have to pick individual companies to invest in, the index funds typically out-perform traditional investments. It’s better to own a broad portion of the market than try to guess which companies will give you the highest returns. Aside from the S&P 500, other indexes include the Dow Jones Industrial index, the Russell 2000 index, the IFA index, and hundreds more.

An exchange-traded fund, is otherwise known as an ETF. The first ETF was an S&P 500 index ETF created in 1993. After the stock market crashed in 1987, there were several investigations into how it happened and ways to prevent it in the future. A lack of liquidity in the futures market was cited as the reason for the single-day 25 percent dip. As a result, the ETF was born, allowing people to make multiple trades in the market without hurting the overall stock price. It took a while for ETFs to catch on. There were only 102 of these funds ten years after their inception. Today, however, there are over 7,000 ETFs on the market.

Weighing the pros and cons Now that we understand what index funds and ETFs are, let’s look at a few of the major differences between the two. When we say the term index fund, the word fund means that it is a mutual fund. With any mutual fund, you have to place your buy or sell order before the stock market closes on one of its 255 open days per year. The price you receive, whether selling or buying, is determined by whatever the price is at 4pm when the market closes. If liquidity is important to you, index funds provide very little because you can only make one trade per day.

That’s why the ETF was created! Exchange-traded funds can be traded just like a stock during the market’s open hours, with the main difference being that ETFs have no limit to how many trades can be performed daily. Because ETFs are structured differently, they allow for this level of liquidity versus mutual funds that are limited to their closing price. Another major difference between ETFs and index funds is that mutual funds force you to regularly pay out capital gains taxes at the end of the year. Because mutual funds are pooled accounts, when stocks have to be sold off within the fund, you could be subject to taxes even if you didn’t make any money on your investment. Listen to this episode for more on the difference between index funds and ETFs!

Resources Mentioned * Retire With Ryan Podcast 2022 Listener Survey * The Institutional ETF Toolbox: How Institutions Can Understand and Utilize the Fast-Growing World of ETFs (Book) * The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today (Book)

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Investing can be complicated and confusing. With so many investment strategies out there, it’s important to find the one that best works for your portfolio. On this episode, I’m going to discuss the difference between index funds and an ETF, their pros and cons, and how to determine which one is right for you.

You will want to hear this episode if you are interested in... * Defining index funds and ETFs [1:36] * Differentiating between index funds and ETFs [5:19] * Deciding which investment is right for you [12:01]

Understanding index funds and ETFs An index fund is an investment designed to track a particular index. One of the most popular indexes is the S&P 500, an annual ranking of the top 500 companies doing business in the United States. Investors don’t own a piece of each of these companies in equal percentages, but rather the bigger companies in the index represent a larger percentage of your holdings. This is known as a cap-weighted index. Studies have shown that if you hold an index fund from year to year versus other investments where you have to pick individual companies to invest in, the index funds typically out-perform traditional investments. It’s better to own a broad portion of the market than try to guess which companies will give you the highest returns. Aside from the S&P 500, other indexes include the Dow Jones Industrial index, the Russell 2000 index, the IFA index, and hundreds more.

An exchange-traded fund, is otherwise known as an ETF. The first ETF was an S&P 500 index ETF created in 1993. After the stock market crashed in 1987, there were several investigations into how it happened and ways to prevent it in the future. A lack of liquidity in the futures market was cited as the reason for the single-day 25 percent dip. As a result, the ETF was born, allowing people to make multiple trades in the market without hurting the overall stock price. It took a while for ETFs to catch on. There were only 102 of these funds ten years after their inception. Today, however, there are over 7,000 ETFs on the market.

Weighing the pros and cons Now that we understand what index funds and ETFs are, let’s look at a few of the major differences between the two. When we say the term index fund, the word fund means that it is a mutual fund. With any mutual fund, you have to place your buy or sell order before the stock market closes on one of its 255 open days per year. The price you receive, whether selling or buying, is determined by whatever the price is at 4pm when the market closes. If liquidity is important to you, index funds provide very little because you can only make one trade per day.

That’s why the ETF was created! Exchange-traded funds can be traded just like a stock during the market’s open hours, with the main difference being that ETFs have no limit to how many trades can be performed daily. Because ETFs are structured differently, they allow for this level of liquidity versus mutual funds that are limited to their closing price. Another major difference between ETFs and index funds is that mutual funds force you to regularly pay out capital gains taxes at the end of the year. Because mutual funds are pooled accounts, when stocks have to be sold off within the fund, you could be subject to taxes even if you didn’t make any money on your investment. Listen to this episode for more on the difference between index funds and ETFs!

Resources Mentioned * Retire With Ryan Podcast 2022 Listener Survey * The Institutional ETF Toolbox: How Institutions Can Understand and Utilize the Fast-Growing World of ETFs (Book) * The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today (Book)

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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In over 20 years of working with clients, I’ve seen people choose bad investments that have negatively impacted their ability to save for retirement. Don’t let that be you! On this episode, I’m going to take a look at seven investments that every retiree should try to avoid and the alternative investments that are more likely to lead towards successful saving.

You will want to hear this episode if you are interested in... * Is this life insurance product a waste of money? [1:47] * Don’t fall for false advertising [4:40] * Why hedge funds aren’t worth the risk [5:50] * Should you invest in crypto? [7:17] * The do’s and don’ts of annuities [8:39] * You can’t win if you don’t play [9:49] * Only trust the pros [10:48]

Insure your future There are a lot of options out there when it comes to choosing investments that will help you save for retirement. That’s why it’s so important to know which ones to avoid. You don’t want to bank on something that could ruin all of your hard work and retirement planning. The first investment to avoid is private real estate deals. Typically, these are done between friends and family or a small real estate company which many find enticing. Truthfully, you can get fortunate. Sometimes these deals work out, but mostly they end up being money pits due to false advertising. Some common issues regretful investors run into are overpaying for a flipped property, hidden maintenance costs, and large vacancies that leave the properties disheveled. If you want to invest in real estate, buying individual properties you can control is the way to go.

Another investment to avoid is life insurance. Life insurance is a good idea for most people to have. Specifically, a term life insurance policy is the most economical way to ensure that your loved ones are taken care of after you're gone. However, cash value life insurance is something you definitely want to stay away from. Mainly pushed by career agents at large companies, the cash value component allows you to earn interest on a portion of your paid premium that can be withdrawn or borrowed against in an emergency. While that may sound useful, the large fees imposed for having the account or using the money significantly eats into any benefit you may receive. You will have a much higher chance of long term success with regular retirement investments.

Invest in reality The third investment to avoid are hedge funds. For those unfamiliar, hedge funds quite literally hedge the risk in the stock market by using options or shorting a stock by betting it will decrease in value. For as long as I’ve watched the results of hedge funds, very few of them reach their expected potential. Sure, a select few will do well, but that’s a drop in the bucket compared to the unreliability of most hedge funds. In fact, hedge funds struggle to beat the returns of a simple index like the S&P 500. While they may seem like a logical “get rich quick” strategy, traditional stock and bond portfolios are a much better option to dependably save for retirement.

Finally, and probably most controversially, we have crypto currency. Crypto may be the hot button issue of the day, but does it make sense to have it as a retirement investment? Due to crypto’s speculative nature I think retirees should avoid it altogether. While Bitcoin and Ethereum may be the biggest names on the crypto market, many smaller digital currencies have lost 40 to 50 percent of their value. Crypto is also difficult to hold. Because most major financial institutions don’t support it, investors have to use crypto wallets like Coinbase, who charge an exorbitant broker commission of around 1.5% on every transaction. Crypto may be the currency of the future, but it's not stable enough to trust it with your future. Listen to this episode for more investments you should avoid in retirement!

Resources Mentioned * Retire With Ryan Podcast 2022 Listener Survey * Should You Keep Your Life Insurance In Retirement?, Ep #7

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Those in retirement often live on a fixed income. That’s why evaluating recurring expenses while planning for retirement is an excellent way to set you up for success. On this episode, I’m going to share seven easy and effective ways to cut costs and lower your overall monthly bills. If you want to learn how to decrease your electricity bill, save on groceries, and cancel unused subscriptions, this one is for you!

You will want to hear this episode if you are interested in... * Changing your electrical supplier [1:57] * Why your insurance might need a shake-up [4:24] * The shopping tip you can’t afford to ignore [5:38] * Get economical with grocery shopping [6:20] * Unsubscribing from unnecessary costs [7:27] * Are you ready to cut the cord? [8:58] * An easy way to make extra cash [12:09]

Illuminating monthly savings The company that delivers your electricity is often decided by the town you live in. However, you may have several different options for electrical suppliers. Most people assume they have to purchase electricity from the set company that delivers it, but some states allow you to choose your supplier and get a potentially lower rate. Wi-Fi-connected smart thermostats are an additional way to save on electricity. These relatively easy-to-install devices learn your heating and cooling habits to use the most efficient amount of energy possible, ultimately lowering your monthly bill.

Another big monthly expense most people continue to have through retirement is car and property insurance. Insurance companies can raise rates based on the overall accidents and claims within a zip code with every new policy term. You shouldn’t have to pay more because of the behavior of others. The needs of their business do not take your budget into consideration! That’s why it's prudent to shop around with the same frequency that companies change the rates. Loyalty discounts are often nominal, and you’ll likely save more money if a quality company offers you a much lower rate.

Use your resources With the advent of the digital marketplace comes the wonderful world of price matching. Most physical retail stores will match the price of an item if you find it cheaper at another store online. It’s especially important to do a price check on larger purchases because five minutes of your time could end up saving you hundreds of dollars. Discount codes are another great money saver when shopping online. Many digital coupon sites offer a web browser add-on to automatically find the best deals and price matches for items you’re looking at in real-time.

One area that can break a budget is monthly subscriptions. Many companies are moving to a subscription-based business model because it guarantees revenue. There’s nothing wrong with signing up for subscriptions if you’re going to use them, but those small monthly fees add up. A recent survey showed Americans pay an average of $237 per month in subscriptions. It may be worth reviewing what you’re paying for and if you are still getting value from that service. Netflix, Hulu, and HBO Max don’t need your hard-earned money as a charitable donation. A wonderful way to save and get free entertainment is through your local library. Many are unaware that libraries allow you to check out movies and TV shows as long as you have a library card. Some even have apps that let you check out media directly on your phone or tablet. Listen to this episode for more ways to cut your monthly bills!

Resources Mentioned * Energize CT * 16 Tips and Tricks Aldi Shoppers Need to Know * Cut the cord: How to ditch cable TV for good * Retire With Ryan Podcast 2022 Listener Survey

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Owning a life insurance policy isn’t just a good idea, it’s a necessary measure to ensure that the family you leave behind is taken care of. But how much life insurance do you actually need? On this episode, I’m going to discuss three different methods for determining the amount of life insurance you need and the best strategy for making that purchase.

You will want to hear this episode if you are interested in... * The simplest methods for determining how much life insurance you need [1:36] * The seven steps for comprehensively calculating your life insurance needs [3:38] * Exploring different life insurance policies [10:08]

Keeping it simple Death is an inevitable part of life. It’s something everyone can anticipate at some point. Yet, so many are left financially unprepared by the passing of a loved one. That’s why it’s so important to not only have a life insurance policy but to ensure that policy provides enough financial security for those left behind. One of the easiest ways to determine how much life insurance you need is to multiply your annual income by ten. While that is relatively simple to figure out, it doesn’t account for additional assets or income your family would have received. You could also add the average cost of college tuition for every child who has yet to attend, but it’s still more of a broad stroke than an accurate assessment of your family’s needs in the event of your passing. Listen to this episode for the seven steps you need to know to accurately calculate your life insurance needs!

Identify the best option When it comes to purchasing life insurance, there are a few different options to consider. The best option for covering yourself during your working years is term life insurance. For many people, the need for life insurance disappears once they retire. Presumably, your retirement portfolio would be enough to provide for your spouse once you pass away. Term insurance is the least expensive life insurance you can buy because there is no investment or cash value component. You are strictly paying to be insured for the term of the policy. As long as you are in relatively good health, you shouldn’t have any issues getting approved. And depending on the coverage you need, expect to pay between $50 and $150 per month.

As you get closer to retirement, your life insurance needs often decrease. You don’t need as much coverage because of the assets built in your retirement portfolio. Instead of buying one 20-year policy at a higher fixed level of coverage, you could spread the coverage out over a 5, 10, and 15-year policy in varying amounts. That way you can drop coverage off as needed and save more money in the long run.

Resources Mentioned * 3 Reasons Not To Purchase Employer Supplemental Life Insurance, #109

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Whether you're onboarding at a new job, or simply reviewing your existing benefits, you might be thinking about buying supplemental life insurance through your employer. On this episode, I’ll go over the three reasons why you should NOT purchase employer supplemental life insurance and the benefits of getting an individual life insurance policy.

You will want to hear this episode if you are interested in... * Exploring employer life insurance options [1:25] * Three reasons to stay away from employer supplemental life insurance [3:44] * Finding the perfect individual term life insurance policy [10:17]

Understanding employer-based life insurance policies Many employers offer life insurance as a part of their benefits package. Typically, we see life insurance benefits offered in two different forms. The first is usually free and is sometimes referred to as basic group life insurance that pays out a fixed dollar amount or a portion of your salary in the event of your death. Because coverage is usually guaranteed and an included perk of employment, signing up is an obvious choice.

The second life insurance option given by employers is known as supplemental life insurance, and there is a cost associated with it. Paying for this coverage allows you to customize and increase your coverage limits per what your employer allows. Getting this coverage is a fairly easy process that requires some light paperwork. Similar to basic group life insurance, acceptance is all but guaranteed, making this a decent option for those with serious medical conditions and other potential underwriting concerns.

Only pay for what you get If employer supplemental life insurance coverage is so convenient and easy to obtain, why should we stay away from it? For starters, coverage purchased through your employer tends to have a higher premium than individual term life insurance policies. Yes, a huge benefit to the employer policy is guaranteed coverage, but because of that, insurance companies know they are covering a higher level of risk, and the premiums reflect that. Individual insurance policies don’t inflate your rate by forcing you to subsidize high-risk individuals.

Something else to consider before purchasing employer supplemental life insurance coverage is that the rates are often age-banded as an additional means of mitigating risk. Policy holders pay a certain rate based on their five to ten-year age range, and the premiums can dramatically increase simply because you’re a year older. The benefit of an individual term life insurance policy over the employer plan is that it locks in your rate for the duration of the policy. Listen to this episode for more reasons to avoid employer supplemental life insurance and potential alternatives!

Resources Mentioned * Policygenius

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Planning for retirement can be a complex process. There are so many things to do that it’s easy to forget common pitfalls to a successful retirement strategy. On this episode, I’m going to go over the Top 5 Retirement mistakes that I see regularly, how to avoid them, and resources to make sure you’re on the right track.

You will want to hear this episode if you are interested in... * Are you paying too much in taxes? [1:31] * How soon is too soon to collect social security? [8:04] * Do you have an investor policy statement? [10:23] * How much money do you need to retire well? [11:45] * Don’t get ripped off by people or products [13:19]

Keep your money in your pocket The number one retirement planning mistake I see is people paying too much in taxes during pre and post-retirement. This happens most often in pre-retirement through missed deductions. Future retirees want to find out if their employers match 401k and 403b contributions and if they contribute enough to earn their companies maximum match. Those on high deductible health plans should also take advantage of a health savings account (HSA) if it’s availab. These two deductions alone can set you up for success in pre-retirement.

On the post-retirement side, you want to develop a strategy around your taxable income. Traditional retirement accounts allow you to take deductions upfront and pay taxes later. This could potentially create an issue in retirement because with various forms of retirement income like Social Security and a pension, retirement account distributions could put you in a similar tax bracket as when you were working. Not to mention mandatory distributions kick in when you turn 72. One way to tackle this problem is to take the money out now at a lower and predictable tax rate and put it into a Roth IRA where the money can be withdrawn tax-free at a later date.

Fail to plan, plan to fail You would never plan a trip without knowing where your starting point is. So why do that when it comes to retirement planning and investments? A recent study showed that out of 6,300 Americans, half simply guessed a dollar amount when it came to knowing how much money they’ll need for retirement. Only seven percent of the study participants opted to use a retirement calculator. For whatever reason, many future retirees put off doing the math on how much they’ll need to live comfortably in retirement. Perhaps out of fear that the end goal is unattainable? But ignorance is not bliss! You have no chance of knowing where you stand without running the numbers and clearly planning for your future.

A great way to start the retirement planning process is through an investor policy statement. This guide establishes a framework for your portfolio by detailing your target asset allocation, which assets you’re investing in, the investment timeframe, cash flow needs, and your system for maintaining these investments. Without an investor policy statement, you’re essentially winging it. Buying and selling based purely on emotion rather than strategy. That will turn you into a collector of investments rather than a profitable investor. Having an investor policy statement means having a clear direction that helps you stick to your investments long-term. Listen to this episode for more retirement planning pitfalls to avoid!

Resources Mentioned * How Does Medicare Enrollment Impact HSA Contributions, #91 * TCRS Annual Retirement Survey * How to Avoid Being Ripped Off By Your Financial Advisor, Ep #10 * BrokerCheck * Investment Adviser Public Disclosure

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Due to a recent rise in interest rates, annuities are experiencing record sales. This boom has listeners curious about whether to purchase hot ticket annuities or individual bonds. If you’re considering buying a fixed annuity, I want to give you the pros and cons of fixed income investments, as well as potential alternatives to help you make the best decision for your retirement portfolio.

You will want to hear this episode if you are interested in... * The pros and cons of fixed annuities [2:40] * Taking a look at fixed annuity alternatives [7:16] * Other ways to take advantage of rising interest rates [10:19]

Weighing the pros and cons With record high inflation rates, the Federal Reserve is doing everything it can to lower inflation by raising interest rates. This increase has produced competitive yields for fixed annuities, with interest rates between three and four percent depending on the company you invest in and the amount. If you want to purchase an annuity, I believe that three-year fixed annuities are the best option. Why three years? The unpredictable nature of these rates makes short-term fixed income investments the safer bet because there’s no telling what the rates will be beyond a few years. A three-year fixed annuity is much more predictable and will help to ensure a competitive yield.

However, there are definitely some drawbacks to purchasing a fixed annuity. Anytime you buy an annuity, there is some type of commitment period for the investment. Meaning, that on a three-year fixed annuity your money will be tied for three years. If you want access to the principal before the commitment period is over, you would need to pay a penalty. Some annuities allow you to withdraw up to ten percent of the principal without issue. Anything above that will take money out of your pocket at a rate of seven to nine percent depending on the company. Then there is the nature of annuities themselves. These products are designed to benefit the insurance company over the investor. They take the money you invest in an annuity and invest it into something with a higher rate of return than your interest rate. They figure out how much money they need to invest in something to make a profit and pay you a lesser amount. If you decide to access the principal early, the company will have to sell off its investment as well. Any loss they incur on interest rates will then be passed to you.

Keep your options open Just as rising interest rates allow you to get a more competitive return on fixed annuities, the same can be said for bond investments. When you buy corporate or U.S government bonds, you want to make sure the brokerage firm allows you to purchase individual bonds with your account. Additionally, the yield on a two-year U.S. government bond has risen to 3.2 percent. That means you can get a similar yield to a fixed annuity with a shorter commitment period. There is also very little risk with treasury bonds because the U.S government would have to default into bankruptcy for someone to not get their money back.

Liquidity is another huge advantage to U.S. Treasury investments. Investors can sell these bonds at any time without penalty. The only downside is that market value adjustments can cause you to sell these bonds at a loss if interest rates have risen since the purchase date because the price of the bond would go down in value. Investors can also look to corporate bonds as a potential investment option with higher yields. However, with the greater reward comes the greater risk of investing in companies subject to market volatility. For more information on fixed annuities and other investment opportunities, listen to this episode!

Resources Mentioned * 4 Things To Know Before Buying A Fixed Indexed Annuity, #58 * Should I Own Individual Bonds or A Bond Mutual Fund?, #98 * Investors Pour Cash Into Higher-Yielding Fixed Annuities (WSJ Article)

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Due to a recent rise in interest rates, annuities are experiencing record sales. This boom has listeners curious about whether to purchase hot ticket annuities or individual bonds. If you’re considering buying a fixed annuity, I want to give you the pros and cons of fixed income investments, as well as potential alternatives to help you make the best decision for your retirement portfolio.

You will want to hear this episode if you are interested in... * The pros and cons of fixed annuities [2:40] * Taking a look at fixed annuity alternatives [7:16] * Other ways to take advantage of rising interest rates [10:19]

Weighing the pros and cons With record high inflation rates, the Federal Reserve is doing everything it can to lower inflation by raising interest rates. This increase has produced competitive yields for fixed annuities, with interest rates between three and four percent depending on the company you invest in and the amount. If you want to purchase an annuity, I believe that three-year fixed annuities are the best option. Why three years? The unpredictable nature of these rates makes short-term fixed income investments the safer bet because there’s no telling what the rates will be beyond a few years. A three-year fixed annuity is much more predictable and will help to ensure a competitive yield.

However, there are definitely some drawbacks to purchasing a fixed annuity. Anytime you buy an annuity, there is some type of commitment period for the investment. Meaning, that on a three-year fixed annuity your money will be tied for three years. If you want access to the principal before the commitment period is over, you would need to pay a penalty. Some annuities allow you to withdraw up to ten percent of the principal without issue. Anything above that will take money out of your pocket at a rate of seven to nine percent depending on the company. Then there is the nature of annuities themselves. These products are designed to benefit the insurance company over the investor. They take the money you invest in an annuity and invest it into something with a higher rate of return than your interest rate. They figure out how much money they need to invest in something to make a profit and pay you a lesser amount. If you decide to access the principal early, the company will have to sell off its investment as well. Any loss they incur on interest rates will then be passed to you.

Keep your options open Just as rising interest rates allow you to get a more competitive return on fixed annuities, the same can be said for bond investments. When you buy corporate or U.S government bonds, you want to make sure the brokerage firm allows you to purchase individual bonds with your account. Additionally, the yield on a two-year U.S. government bond has risen to 3.2 percent. That means you can get a similar yield to a fixed annuity with a shorter commitment period. There is also very little risk with treasury bonds because the U.S government would have to default into bankruptcy for someone to not get their money back.

Liquidity is another huge advantage to U.S. Treasury investments. Investors can sell these bonds at any time without penalty. The only downside is that market value adjustments can cause you to sell these bonds at a loss if interest rates have risen since the purchase date because the price of the bond would go down in value. Investors can also look to corporate bonds as a potential investment option with higher yields. However, with the greater reward comes the greater risk of investing in companies subject to market volatility. For more information on fixed annuities and other investment opportunities, listen to this episode!

Resources Mentioned * 4 Things To Know Before Buying A Fixed Indexed Annuity, #58 * Should I Own Individual Bonds or A Bond Mutual Fund?, #98 * Investors Pour Cash Into Higher-Yielding Fixed Annuities (WSJ Article)

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If you’re a small business owner and are potentially in the market for a new vehicle, this episode is for you! Join me as I discuss potential vehicle write-off strategies that you can only take advantage of in 2022, the logistics of writing off a vehicle for small business use, and other ways vehicles can keep your tax dollars in your pocket.

You will want to hear this episode if you are interested in... * Can I write off the purchase of a vehicle as a small business owner? [1:23] * The logistics of writing off vehicles for your small business [3:39] * Challenges to taking advantage of Section 179 and other vehicle write-off strategies [8:34]

Understanding small business vehicle write-offs As a small business owner, you can write off business expenses such as standard supplies and various operational costs. You also have the ability to write off the purchase of equipment under what is known as Section 179 Depreciation. Cars, trucks, and SUVs all fall under Section 179 and 100 percent of the cost can be written off over the course of five years. However, vehicles with a gross vehicle weight rating (GVWR) of over 6000 pounds qualify for “bonus depreciation” and can be written off over a shorter period of time.

The interesting part about this is that there are a number of mainstream SUVs with a GVWR of over 6000 pounds. Meaning, if you are a small business owner and are already looking to purchase an SUV, Section 179 is your new best friend. You should absolutely consult the link below before making your purchase because it could save you tens of thousands of dollars come the 2022 tax season.

The deduction is in the details So how do you write off the entire cost of a vehicle on your small business taxes? The simple answer is that 100 percent of the vehicle’s use must go towards the business. That can include any activities associated with running the business. However, plenty of small business owners have vehicles that are used for both business and personal use. Thankfully, there is still a tax write-off available in this scenario.

In order to determine how much of the vehicle’s costs can be written off, you would need to calculate how much of the vehicle’s usage is going towards the business. For example, if the vehicle is used for business 70 percent of the time, you can write off 70 percent of the total cost. This can be a great strategy if you are trying to keep yourself out of a higher tax bracket after a successful year for your business. Listen to this episode for more insight on writing off vehicle purchases as a small business owner!

Resources Mentioned * Section 179 Deduction Vehicle List 2021-2022 * Is An Electric Car Tax Credit Worth It?, #63

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In 2015, Congress passed the Budget Reconciliation Act, which eliminated a few common loopholes used to get retirement-age couples additional spousal benefits. However, if you’re between the ages of 68 and 70, some of these strategies may still apply! On this episode, I’ll break down these strategies and help you take advantage of the free money available to you.

You will want to hear this episode if you are interested in... * Am I eligible for spousal benefits? [2:44] * Applying for spousal benefits [5:46] * Is a spousal benefit strategy right for you? [7:26] * Additional social security benefit strategies [9:53] * How to switch from spousal to retirement benefits [11:46]

Spousal benefit eligibility The Budget Reconciliation Act of 2015 ensured that anyone born after January 2nd, 1954 could no longer delay a social security retirement benefit, in lieu of collecting a spousal benefit as a result of a partner collecting their full retirement benefits. Thankfully, if you were born before that date, are younger than 70, and have not begun collecting social security benefits, you're still eligible to take advantage of this retirement strategy.

Delaying Social Security benefits until the age of 70 (if possible) is one of my top retirement strategies. The Social Security Administration rewards those who wait with roughly 132% more benefits than those who retire right at 67. One of the things that can make that wait easier is both spouses having an income. If one spouse receives their Social Security retirement benefits, the other can apply for the spousal benefit. They receive exactly half of the retired spouses' benefit until they receive their full retirement benefits at age 70.

Making it work for you What about divorced couples? If you were married for at least ten years, ex-spouses can still receive a spousal benefit. You only have to know that your former partner is receiving retirement benefits. However, not everyone is on good terms with their ex. As long as you have been divorced for at least two years, you can apply for the spousal benefit whether they are collecting their retirement benefits or not.

Applying for the spousal benefit is as easy as applying for regular Social Security. The best way to do it is to file a restricted application through the SSA website listed below. The only potentially tricky part is signifying that the application is restricted. This is done by answering “Yes” to whether or not you would like to delay retirement benefits if you are also eligible for spousal benefits. If you filed for retirement benefits in the last twelve months and want to change to spousal benefits, it's not too late! You would need to withdraw your application, repay the benefits already received, and refile the restricted application. Listen to this episode for more spousal benefit loopholes!

Resources Mentioned * The United States Social Security Administration

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In light of the recent stock market decline, many people are wondering what they should do (if anything) to survive the bear market. On this episode, I’m going to give you five tips to help weather the financial storm in your portfolio. Get ready to explore the history of bear markets and time-tested strategies used to come out on top during market declines.

You will want to hear this episode if you are interested in... * What is a bear market? [1:18] * The importance of knowing your asset allocation [3:30] * Why you should have a diversified portfolio [5:50] * Don’t time the market [7:35] * Why statements are unhelpful right now [9:46] * Should I stop investing? [10:37] * The impact of having a financial advisor [11:49]

The bear necessities If you’ve listened to or seen any financial talk show in the last few months, you’ve probably heard the term “bear market”. A bear market is when a non-cash asset class (stocks, bonds, real estate, or commodities) has a 20% decline or more in value. The time frame for this devaluation isn’t set and could happen over a short or extended period of time. The reality is bear markets happen more often than we’d like. We are currently in the 7th bear market since 1980 according to the S&P 500, with the most recent being in 2020 due to the pandemic. The length of time it takes the market to recover is truly a case-by-case basis. The COVID bear market of 2020 only took five months to bounce back, while the 2007 housing market crash correction took over four years. Check out this chart for a history of the past eleven bear markets!

Patience is a virtue The future is impossible to predict. All we have is past data to give us ideas for possible market outcomes. Yet, every time we turn on something like CNBC or FOX Business, we have so-called financial experts telling us to SELL because the house is burning down. If we can acknowledge that the media exists solely to sell ads, then we have to confront the fact that they have a vested interest in their viewers being sucked into the negativity to sell air time. Analysts can say the market is collapsing until they are blue in the face, but they have absolutely no idea what’s going to happen. What we DO know is that people who jump ship and miss the market’s best days will have significantly compromised returns going forward.

There are those out there who try to “time the market”. This means selling off underperforming stocks with the expectation that they will be able to hop back in right before the value goes up again. The likelihood of getting that timing right isn’t unheard of, but it is highly unlikely. Sentiment changes fast, and before you know it, you’ve missed a major market return that would have been yours if you had just stayed invested. Listen to this episode for more bear market tips!

Resources Mentioned * Sample Asset Allocation Performance * J.P. Morgan “Out of the Market” Study

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The usual focus of this podcast is the financial side of retirement. Equally important is knowing what retirement will actually be like. On this episode, I sit down with retirement coach and podcaster Wendy Green to discuss the logistics of retired life, retiree time management, and finding your purpose outside the workplace.

You will want to hear this episode if you are interested in... * Getting to know Wendy Green [1:31] * Retirement surprises and making the most of your third act [3:23] * Finding purpose beyond the early retirement phase and leaving behind the legacy you want [8:50] * The importance of mindset and goal-setting in retirement [14:50]

Making the most of your retirement Most people are counting down the days until they walk out of their workplace for the last time and enter retirement. But few consider this very important question: What are you going to do? How are you going to meaningfully fill your days after devoting 30-plus years to a career? Wendy gives most people a six-month honeymoon period before the golf bags and aimless days get old and 18 months to two years before retirees get their feet under them again. But with a little planning, it doesn’t have to take that long to acclimate.

Wendy suggests identifying and cultivating the roles that serve you while leaving behind the ones that no longer do. Going from strictly planned days to no plans at all can be a difficult transition to make. That’s why Wendy helps her clients put together a schedule that fits the retired lifestyle they want to have. Retirement is the time to pursue passions that were put on the shelf to prioritize family or a career. Take a class. Learn a skill. Go on that trip to Europe you’ve always dreamed of. Fill your days with the things that matter most to you.

Discover renewed purpose When we think about the focus of retired life, we often identify travel and time with family as top priorities. And they are! But Wendy notes that this is more of an early retirement view. Once retirees get a few months or even years under their belt, they often yearn for more, and life starts to become about purpose. They ask bigger questions like why am I here and what SHOULD I be doing with the hopefully 20 to 30 years I have left?

Volunteering can be incredibly positive for people looking for renewed purpose in retirement. It’s important to find things that will bring you fulfillment and leave behind the kind of legacy you desire. Wendy has witnessed clients find purpose in everything from working with organizations tackling food insecurity and homelessness to puppeteering and working with children. Age is just a number when it comes to making an impact. Get out there and discover your next passion. Listen to this episode for more of Wendy’s insights on retired life!

Resources Mentioned * Visit Wendy’s website * Listen to the Hey, Boomer! Podcast on Spotify and Apple Podcasts * Follow the Hey, Boomer! Podcast on Instagram

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This week, I’m continuing my discussion about the probate process with Judge Edward C. Burt Jr. (aka Ned). We’ll dive into what happens if someone dies without a will, the specifics of the full probate process, establishing the authenticity of wills, and Ned’s final tips for making probate as simple as possible.

You will want to hear this episode if you are interested in... * What happens if I die without a will? [3:36] * Diving deeper into the probate process [6:23] * How do I file a will? [9:57] * Determining the authenticity of multiple wills [12:42] * Ned’s final tips for simplifying the probate process [14:30]

A matter of time If you die without a will, it is known as dying intestate. This means the probate court will have to decide how your assets should be divided up. The process of doing so can be burdensome and expensive, which is why having a last will and testament is highly recommended. Assuming there is a will, the average probate process can take six to nine months. A will should be filed within 30 days of the deceased’s passing. Once a notice has been published in the newspaper, anyone has 150 days to file a claim against the estate, and fiduciaries have 60 days to respond to any claim. One of the final steps is filing an estate tax return within six months of the initial passing, but Ned suggests taking care of this as soon as possible because there are no extensions allowed and penalties for filing late.

While probate can be a lengthy process, there is a lot you can do while it’s still ongoing. If the claims process has concluded and no claims have been filed against the estate, executors are able to request a distribution from the court. You can also sell real estate during the probate process. Most wills give executors that right without probate court approval. Ned recommends including this in your will as a huge probate time saver. If the person who passes away is not the sole owner of any real estate and has less than $40,000 in assets, they are eligible for a streamlined probate process. All it takes is a few forms filed through the probate court, which Ned believes most people can do without professional help.

Establishing authenticity Many people believe their last will and testament should be filed with the probate court upon creation, but this is a common misconception. Original copies of the Will are filed when a person passes away. Lawyers used to hold onto the original copy of a will, but that is rarely the case now because if they misplace it they would be liable for malpractice. If you lose an original will, a conformed copy can be filed with the probate court and may need its witnesses to corroborate the authenticity of the document.

In situations where multiple wills are filed for the same person, determining the authenticity of the deceased’s final wishes can be tricky. Testimony is taken from both the witnesses who signed the will and the attorney who facilitated the creation of it to try and sort out the discrepancy. Interested parties can submit any evidence necessary, including professional testimony from experts, to try and prove things like diminished capacity in cases where a secondary will is contested. Listen to this episode for more information on the probate process!

Resources Mentioned * Simplifying the Probate Process with Probate Judge Edward C. Burt Jr. (Part 1), #101

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Is Probate a difficult and expensive process? Is there any way to avoid it altogether? If you’re diving into estate planning and have questions about Probate, this episode is for you! I’m joined by special guest Judge Edward C. Burt Jr. (aka Ned) who has served as a Probate Judge for the last 10 years. We’ll discuss common misconceptions about Probate and strategies to make it as simple as possible.

You will want to hear this episode if you are interested in... * Getting to know Ned and his Probate background [1:06] * Can I avoid Probate? [3:40] * Should I have a will? [7:17] * The logistics of sending your estate through Probate [9:39]

A common misconception Most people have zero idea what Probate court is or how to navigate the process because it’s usually an extremely sad circumstance that brings families to the court. Probate court is often viewed as the place where families go to settle a loved one’s estate when they pass away as well as any outstanding debts. However, there are many other matters handled by the Probate court like adoptions, name changes, conservatorships, and issues of guardianship. And while many people try to believe Probate court can be avoided, that is rarely the case.

Couples often have established through a deed that the ownership of jointly owned property will transfer to the surviving spouse in the event of the other’s death. This is known as the rights of survivorship. One of the biggest misunderstandings about Probate is that people assume just because a joint asset like real estate is in survivorship does not mean that it doesn’t have to be Probated. There may be inchoate taxes due to the state for the spouse that passes away. Though inchoate taxes are unlikely, the deed itself needs to be Probated to receive a certificate of no tax due which is required to sell the property down the road. Not doing so could hold up the closing process or cause the sale to fail entirely.

Where there’s a will, there’s a way Having a professionally prepared last will and testament is the number one way to prepare you for the Probate process. A “simple will” should suffice for young married couples, but as you get older or if there are significant assets to manage, a more complex legal document may be required. While a will doesn’t help you avoid Probate, it does provide the instructions for the distribution of assets during the administration of Probate making the process go smoothly. For more information on the Probate process, listen to this episode and tune in next week for Part 2!

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What is a target date retirement fund? If you are invested in a 401k, you are likely invested in a target date retirement fund as well. On this episode, I’ll dive into the four things you need to know about target date funds, including what they are and how they can help you save for retirement.

You will want to hear this episode if you are interested in... * What is a target date fund and why am I invested in it? [1:12] * Comparing target date funds [4:03] * How do target date funds work and should I invest in them? [6:55] * The pitfalls of target date funds [9:22]

Identifying target date funds In 2006, the Pension Protection Act was signed into law with the hope that it would bolster retirement plan design and the number of people saving for it. This required 401k providers to adopt automatic enrollment features and have default investment funds other than a money market account. Thus, target date funds became the new default and many people became invested in them without realizing it. This is also true for the employees of companies who change 401k providers. Most people are unaware of what their default investment fund is if they don’t specifically look into it.

However, it’s easy to spot target date funds in your portfolio. These mutual funds are easily identifiable because they have a year in the name, such as the Vanguard 2035 Fund. The year corresponds to the year you expect to retire, often when you turn 65. These funds use a preset mix of stocks, bonds, and cash so that investors don’t have to put much thought into who they are investing in. The companies that put together target date funds try to build the best portfolio for someone at their expected retirement age.

Compare and contrast By design, target date funds start out as an aggressive investment that gets more conservative the closer you get to retirement. This benefits investors who don’t want to keep a close eye on their portfolio as they get ready to begin their third act. Upon reaching retirement age, the fund will remain mostly static, with no more than 50% invested in stocks. When deciding which target date fund to invest in, the first thing you should determine is your asset allocation. This is the percentage you are invested in high risk/high reward investments like stocks, real estate, and commodities versus safer, low-yield investments like bonds and cash.

Once you determine your desired allocation, it’s time to pick a target date fund! The key here is research. Look into either the fund you are currently invested in or the other options available to you to see which one is closest to your ideal asset allocation. Additionally, you should rebalance your allocations to make sure you aren’t taking a loss or leaving money on the table. Listen to this episode for more information on target date funds!

Resources Mentioned * The 5 Step Portfolio Process, #17

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Do you own disability insurance? If you’ve been thinking about it and need more information, this episode is for you! Join me as I sit down with disability insurance expert Tim Kukieza of Ash Brokerage. We discuss the key questions everyone should be asking about disability coverage and what you need to know to financially protect yourself and your loved ones from a disability event.

You will want to hear this episode if you are interested in... * Getting to know Tim Kukieza [1:13] * What is disability insurance? [1:46] * How much coverage do you need? [4:27] * Breaking down different disability insurance policy types [6:43] * The benefits and logistics of owning an individual plan [13:35] * Social security disability benefits versus an income protection plan [22:07]

Protect your income Have you ever considered purchasing disability insurance? If you decided not to, it might be because you think the odds of ever needing it are too low to be worth the investment. Tim believes that has a lot to do with the phraseology of disability insurance. People see the word disability and assume that this coverage won’t apply to them. However, Tim wants people to see these policies as income protection insurance based on sickness or an accident. People fall ill and get injured every single day. Especially with the advent of COVID, disability insurance is more necessary than ever. While it can’t protect you from your place of employment shutting down, it can protect your income if you get sick and need to quarantine.

You are also much more likely to suffer an accident or illness than a death event during your working years. Yet, people tend to prioritize life insurance over disability insurance. After all, death is guaranteed, right? The reality is that no one plans to get sick or hurt, but one in four 25-year-olds will experience at least a 90-day disability event before the age of 65. In fact, 90% of all income protection situations are related to illness. Purchasing disability insurance is a great way to ensure your finances don’t take a hit when you do.

Individual versus group policies When deciding how much coverage you need through a disability insurance policy, the first thing you need to be aware of is that your actual income is not your take-home pay. For instance, if you make $1000 per month, you’re probably only receiving about $700 of spendable income. Income protection through disability insurance typically pays out 60% of your regular income to keep you afloat during a disability event. That may not seem like a lot, but if you normally take home $700 from your paycheck, then $600 is not far off. That’s more like 85% of your take-home pay versus 60% of your gross. These benefits are also tax-free if you’re using after-tax dollars to pay for them.

Something else to consider is the difference between getting the individual policy described above and a group policy through your employer. The benefit of a group policy is that employers can pay up to 100% of the premium for their employees. That means these benefits could be free to you! The downside is that they will be taxed, so 60% of your gross income drops to somewhere around 45%. Listen to this episode for more information on disability insurance!

Resources Mentioned * Email Tim Kukieza * Follow Tim Kukieza on LinkedIn * Ash Brokerage

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In light of the recent rise in interest rates, I thought it would be a good time to dive into the difference between owning individual bonds and owning bond mutual funds. On this episode, I’ll discuss the key differences between the two and what you should be looking for in your retirement portfolio.

You will want to hear this episode if you are interested in... * An overview of bonds [1:00] * Taking a closer look at bond mutual funds [5:38] * What about owning individual bonds? [11:07]

Reviewing bonds One of the most important decisions an investor can make regarding their portfolio is their asset allocation. This is the amount of money you divide between growth investments such as stocks, real estate, and commodities versus safer investments like bonds and cash. Once you determine your allocation amount for bonds, it’s important to understand the types of bonds available for purchase. The first are corporate bonds, which pay the most in interest but carry the most risk. Next, there are municipal bonds, that also have varying degrees of risk, depending on the municipality you're buying them from. And lastly, there are treasury bonds backed by the U.S. government that most people consider the safest bonds you can buy.

Regardless of which type of bonds you own, the greatest challenge with investing in bonds is rising interest rates. Bond prices and interest rates have what is known as an “inverse relationship”, where they always move in the opposite direction of each other. When interest rates go down, bond prices tend to go up. Likewise, as interest rates go up, bond prices are driven down. One way around inflation is through purchasing I bonds, but you can only purchase up to $10,000 worth per person, per year.

Mutually beneficial investment You have two choices when it comes to deciding how you want to own your bonds: you can own bond funds or purchase individual bonds. Owning bonds through a bond mutual fund allows you to put your money into a pool with other investors. A financial professional then invests that money according to what they think the best opportunities are. You can purchase funds that specifically invest in corporate, municipal, and treasury bonds or go with a fund that invests in a lucrative mix at the bond manager's discretion.

An extremely important thing to look at when purchasing mutual bond funds is the internal cost of the fund known as the “expense ratio”. Funds with lower expense ratios tend to yield higher returns due to lower operating costs, so it’s important to keep track to have a successful retirement portfolio. Another aspect of bonds that you can control is the length of their duration/maturity. If you believe that interest rates will continue to rise, you have the option to purchase shorter duration bonds to prevent further declines in value. However, the trade-off is that you will lose out on the often higher interest rate of medium to long-term bonds. Listen to this episode for more information on individual bonds and bond mutual funds!

Resources Mentioned * Understanding Bonds and How to Use Them, #15 * Increase Your Cash Return With I Bonds, #84 * Bankrate * Morningstar

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Health insurance is one of the top concerns for retirees today and there seems to be a lot of confusion about when to sign up for Medicare. If you’re still working at age 65 and debating signing up for Medicare, this episode is for you! Listen as I take an in-depth look at the five things you need to know before signing up for Medicare.

You will want to hear this episode if you are interested in... * When you NEED to enroll in Medicare [1:07] * Medicare and self-employment [2:26] * What if I have COBRA insurance? [3:39] * Should I enroll in Part A? [5:13] * Exploring the Medicare enrollment timeframe [7:57]

Clarifying Medicare enrollment If you have health insurance through your employer and you’re still working at the age of 65, you’re probably wondering how Medicare fits into the picture. You, or your spouse, can wait to enroll in Medicare until you are no longer working or you lose your health insurance, whichever comes first. This is generally true for large companies (20 plus employees) so double-check with your insurance provider or HR team to make sure you are enrolled in a group health plan as defined by the IRS. As long as the answer is yes, you can delay Medicare enrollment while you or your spouse have coverage through a qualified plan.

For those self-employed or who work for a company with less than 20 employees, you need to enroll in Medicare when you turn 65 to avoid the Part B late enrollment penalty. You definitely want to avoid this because once you are subject to it, you have to pay the Part B late enrollment penalty for life.

Getting specific about Medicare logistics and coverages Another scenario to consider is turning 65 during a period of transition. What happens if you lose your job or retire halfway through the year? Many people have the option to use COBRA insurance which extends your existing company health insurance for up to 18 months while you figure out your next option. However, being on COBRA insurance does not exempt you from enrolling in Medicare. If you turn 65 while using COBRA insurance, you need to enroll or you will be subject to the Part B late enrollment penalty.

Additionally, a question I get often is whether or not a client should enroll in Medicare Part A. As a reminder, Part A is free to those who’ve worked for at least 10 years and helps cover the costs of a hospital stay. Part B has a monthly premium and helps cover the costs of preventative care. A common misconception is that because Part A is free, you should enroll in it as soon as you turn 65 so you have coverage for a potential hospital stay. The problem with enrolling in Part A is that if you are currently covered by a health savings account (HSA), you and your employer can no longer contribute to it and you have to take out any contribution you’ve made in the previous six months. It’s better to enroll in Part B first and wait to enroll in Part A until you no longer need an HSA. Listen to this episode for more information on when to enroll in Medicare!

Resources Mentioned * How Does Medicare Enrollment Impact HSA Contributions, #91

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What if I don’t want a traditional long-term care plan? Last week, we covered the basics of traditional long-term care options. On this episode, I’ll continue my conversation with Nancy Simms and dive into the logistics of hybrid long-term care coverage and the Connecticut Partnership for Long-Term Care.

You will want to hear this episode if you are interested in... * What is a hybrid long-term care policy? [1:14] * Examples of life insurance policies with added long-term care [9:09] * The tax-deductibility of long-term care plans [10:32] * The underwriting process of long-term care plans [12:15] * Looking at the logistics of hybrid long-term care plans [14:17] * What is the Connecticut Partnership for Long-Term Care? [16:10] * Starting the process of researching long-term care options [21:35]

Exploring hybrid long-term care options There are essentially three different variations of a hybrid long-term care policy. The first is to have a life insurance policy that has an added long-term care rider. It works just like a normal life insurance policy that pays out in the event of your death. Except with the rider, it allows you to pay down your death benefit, dollar for dollar, to cover the costs of long-term care needs while you’re still alive. It’s a great way to add flexibility to a life insurance policy at a relatively low additional cost.

Another type of hybrid long-term care is what’s known as a linked benefit product. It’s a similar concept to the life insurance policy with a long-term care rider except that it accounts for inflation. Adding a long-term care rider to a life insurance policy will not increase the amount paid out based on the cost of care, making it more of an insurance product with added benefits and flexibility. The linked benefit is more like a long-term care product that has a smaller death benefit. A big advantage to this plan is if you never have a long-term care need, the majority of your premium will be returned to your estate through the death benefit.

Digging deeper The final type of hybrid long-term care combines an annuity with a long-term care plan. Annuities are long-term investments issued by an insurance company designed to help protect you from outliving your income. They typically provide a guaranteed stream of payments over a predetermined amount of time. When combined with a long-term care plan, these annuity payments increase to cover the cost of a long-term care need.

When it comes to hybrid long-term care plans, the biggest benefit is flexibility. Plan beneficiaries can choose how to receive their benefits depending on the plans they select. A plan that pays through reimbursement works much like insurance. Benefits are paid out by submitting proof of long-term care services rendered. Indemnity (or cash) plans pay out a certain amount of money based on a daily or monthly limit. The major upside to this is that this money is paid out regardless of the actual cost of care so you could potentially receive more than you need. However, because the money can be used for anything, a potential downside is someone mismanaging the money. Listen to this episode for more information on long-term care plans!

Resources Mentioned * 3 Ways to Cover Long-Term Care with Nancy Simm (Part 1), #95 * Connecticut Partnership for Long-Term Care

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If you’re concerned about paying for long-term care in retirement or are wondering the best way to pay for it, this episode is for you! This week, I’m joined by Nancy Simm of Highland Capital Brokerage to discuss retirement longevity, the types and costs of long-term care, and the best ways to pay for them.

You will want to hear this episode if you are interested in... * Getting to know Nancy Simm [1:13] * The five ways to pay for your long-term care in retirement [1:58] * What is long-term care? [2:54] * Identifying the costs of long-term care [5:42] * Diving into traditional long-term care products and policies [7:58] * How do I apply for long-term care and when is the best time to do so? [14:25] * What is an elimination period and shared benefits? [19:24] * Final thoughts on traditional long-term care plans [22:32]

Understanding long-term care Most people assume that long-term care is for people in their 90s with health issues. However, long-term care plans can be used at any age for several reasons including early-onset degenerative diseases, strokes, and injuries due to accidents. The reason is irrelevant as long as there is a long-term care need that inhibits the activities of daily living. Nancy defines these activities as bathing, eating, dressing, bathroom use, continence, and transfer. Difficulties in these areas don’t have to be permanent. As long as care will be needed for at least 90 days, it is considered long-term.

For example, a bone fracture that takes a month or two to heal would not be considered a long-term care situation even if it prevents you from completing the activities of daily living. Long-term care plans focus on care needs longer than 90 days, but they go beyond physical disabilities. Diseases like Alzheimer's are another reason to look into long-term care because while patients may be physically capable of completing tasks, their reduced cognitive ability makes them a qualified candidate.

Covering the cost Before deciding whether to pursue a long-term care insurance policy, it’s important to understand the out-of-pocket costs of long-term care. The Connecticut and New England areas have some of the highest long-term care costs in the country. Average home health care costs are between $5000 and $6000 per month for a few hours of care per day. While most retirees prefer to receive long-term care at home, sometimes that isn’t possible when the patient’s safety is in question. Nursing home costs can average around $15,000 per month for full-time care. A huge benefit of long-term care insurance policies, aside from saving your bank account, is that they cover any kind of care required and are no longer limited to a specific care type, whether in-home or at a facility.

Another cost-saving option is to retire in another state where long-term care costs are cheaper. If you live in Connecticut now but are debating retiring elsewhere, this may be the detail that gets you to reserve the moving truck. Midwestern states and most of Florida cut Connecticut's long-term care costs in half! Moving may be the best option for those looking to cut costs who aren’t tied down to their current area. For more info on long-term care plans and how to pay for them, listen to this episode!

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Southwest Airlines offers what is arguably one of the best perks within the travel industry: the Southwest Companion Pass. If you are someone who likes to travel and would be interested in having your spouse or companion fly with you for FREE, this episode is for you! I’ll give you all the details you need about the Southwest Companion Pass, how to qualify for it, and how to get the most out of it.

You will want to hear this episode if you are interested in... * What is the Southwest Companion Pass? [1:26] * How does the Southwest Companion Pass work? [3:05] * The best way to qualify for the Southwest Companion Pass [4:40] * The best time to qualify for the pass and tips and trick to earn it faster [10:38]

First-class perks One of the number one activities enjoyed by retirees is travel. After all, who wouldn’t want to see the world after completing a successful career? One of the best ways to travel is the Southwest Companion Pass. With the pass, designated companions can fly with you for free for as long as you hold it. Your companion will have to cover the taxes and fees associated with the cost of regular tickets, but that’s small in comparison to full-price airfare.

Flyers earn a companion pass by either flying 100 qualifying one-way flights OR accumulating 125,000 qualifying Southwest points in a calendar year. Once you earn the pass, it’s valid for the remainder of the current year and the following year with no limit to the number of times the pass can be used. While you can only select one designated companion to fly with at a time, you can change your companion up to three times in a calendar year.

Bang for your buck As great as the Southwest Companion Pass is, there are definitely some things you need to be aware of to get the most out of it. While simply earning the pass is an achievement, earning it as early as you can in the year will help maximize your experience. Because the companion pass has to be earned within a calendar year, the sooner you qualify the more you can get out of it. On the contrary, even if you are only one point away, all qualifying points must be earned before the stroke of midnight on December 31st, or else all points will reset.

Another thing to keep in mind is that Southwest does not allow for reserved seats. Southwest boards in A, B, and C groups, and seats are first-come, first-serve via boarding order. You can however pay an upgrade fee to lock in your A Group status or earn it through their rewards program. Families with small children and flyers requiring wheelchairs are automatically upgraded to pre-board status based on availability. All of this, of course, rests on whether or not Southwest flies routes that you want to travel. Their offerings are extensive and growing so check their website for more information. Listen to this episode for continued tips on the Southwest Companion Pass!

Resources Mentioned * Southwest Companion Pass * Southwest Rapid Rewards Credit Cards

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Retirees often wonder how they are going to afford health insurance if they retire before the age of 65. Thankfully, many Americans qualify for healthcare subsidies through the Affordable Care Act (ACA). On this episode, I’m going to cover the five things you need to know about these subsidies and how you can become eligible for them.

You will want to hear this episode if you are interested in... * What are ACA tax credit subsidies?[1:24] They are available to many people whose net income is between 100%-400% of the Federal Poverty Level * Exploring eligibility for ACA tax credit subsidies [2:17] * How does the federal government determine the poverty line? [5:33] * The logistics of signing up for healthcare through the Marketplace [6:53] * How do ACA tax credit subsidies work? [9:35] * What info do I need to get started? [11:32] * How do I apply for an ACA tax credit subsidy [14:19]

Reducing the cost of healthcare The years before retirement can be both exciting and nerve-wracking. That’s why retirement planning is an essential step! Set yourself up now so that life’s third act is enjoyable and stress-free. One major stressor most soon-to-be retirees face is figuring out healthcare coverage. Especially, if it’s not currently provided by an employer and they don’t yet qualify for Medicare due to age. Never fear, because the Affordable Care Act (ACA) may be the way to go. The ACA, also known as “Obamacare”, provides subsidies to qualifying individuals and families to help make healthcare costs more affordable. This is a great option to gain health insurance at a reasonable cost until you reach age 65 and qualify for Medicare.

These subsidies are available to many people who qualify and the money is put towards significantly reducing your health insurance premium. In some cases, it can even make healthcare free! In 2020, it was estimated that 87% of the roughly 11 million people enrolled in the Healthcare Marketplace received a premium subsidy. If you don’t qualify for Medicare and you haven’t looked into this yet, what are you waiting for?

Do I qualify? While the idea of affordable health insurance is appealing to everyone, some requirements need to be met in order to qualify. ACA tax credit subsidies work on a sliding scale that limits the amount you pay each month for health insurance premiums based on your modified adjusted gross income (MAGI). Most people are eligible for these subsidies if they annually earn between 100% and 400% of the Federal Poverty Level. However, in March of 2021, the American Rescue Plan Act (ARPA) added further relief to those struggling to find affordable health insurance during the COVID pandemic.

For 2021 and 2022, many retirees can take advantage of several ARPA provisions that will further reduce their healthcare costs. For example, no citizen or legally present non-citizen without access to other affordable healthcare options will pay more than 8.5% of income for a Marketplace Silver Plan. Additionally, individuals who earn 500% of the Federal Poverty level and don’t have access to other affordable healthcare options can take advantage of cost-sharing reductions through low-cost Healthcare Marketplace plans. For more information on reducing your healthcare costs and qualifying for subsidies, listen to this episode!

Resources Mentioned * Access Health CT * HealthCare.gov

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Several accounts allow you to name beneficiaries, some of which are likely familiar. It’s always important to name beneficiaries when given the opportunity. Doing so has some major benefits! On this episode, I’m going to discuss the different types of accounts that allow you to name beneficiaries, who you should and should not name as a beneficiary, how often you should update beneficiaries and more essential estate planning info!

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You will want to hear this episode if you are interested in... * These accounts allow you to name beneficiaries [1:36] * List these people as your beneficiaries [3:16] * Keep these people off your beneficiary list [4:08] * This is how often you should update your beneficiaries [7:46] * Common beneficiary mistakes and mishaps [9:11] * What is per stirpes and per capita? [10:33] * Do your homework [12:40]

Knowledge is power When starting the estate planning process, it’s important to list a beneficiary on every account possible. Ideally, the naming process happens when the account is opened. However, because one (or many) may have slipped through the cracks, you need to know which accounts allow you to name a beneficiary in the first place. Some of the most obvious are insurance products and annuities. I say that because who pays for a life insurance policy that benefits no one? Less obvious accounts that need beneficiaries are retirement accounts. Companies will often have physical or digital paperwork that needs to be completed to name these beneficiaries so talk to your HR representative to make sure everything is in order.

The following retirement accounts are eligible to name beneficiaries:

• 401k plans
• 403b plans
• 457 plans
• Simple retirement plans
• Simplified Employee Pension Plan (SEP)
• Profit-sharing plans
• Keogh plans
• Health Savings Accounts (HSA)
• Flex Savings Accounts (FSA)
• Traditional IRAs
• Roth IRAs

Keep it in the family The next biggest question most of my clients have is who they should name as their beneficiaries. A great rule of thumb is that if you have family, they should be named as your beneficiaries. Generally, spouses are your primary beneficiary with children listed as your contingent beneficiary. Children can be named as the primary beneficiary, but if your spouse is alive when you pass away it can create unnecessary complications that would award them the benefit anyway. Another great option is donating the benefits from these accounts as a legacy gift. Charities and other qualifying 501(c)(3)s can be named as beneficiaries on these accounts as well.

One question that some clients fail to ask is who they SHOULDN’T list as a beneficiary. At the top of my list is anyone who is receiving any type of financial assistance such as a special needs child or a spouse on Medicaid. Receiving these assets upon your death could disqualify them from these programs. Another beneficiary to avoid is your estate. You would think that naming your estate as the beneficiary of a retirement account is a good idea, but it’s often an overly complicated one. Assets that pass through your estate are likely subject to probate, which can delay receipt of these benefits for up to 9 months. You’re better off directly naming your beneficiaries so that it’s an easy process in an already difficult time. Listen to this episode for more information on naming beneficiaries!

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If you’re thinking about enrolling in Medicare or collecting Social Security benefits this year and you still contribute to a Health Savings Account (HSA), there are tax penalties that you need to be aware of! On this episode, I’m going to cover how to avoid triggering those penalties and what to do if you’ve overcontributed to your HSA.

You will want to hear this episode if you are interested in... * The wonderful world of HSAs [1:16] * The six percent overcontribution penalty [2:02] * When should I enroll in Medicare and Social Security if I have an HSA? [4:59] * Using HSAs to save for retirement [10:22] * How to fix HSA mistakes you’ve already made [11:26]

Don’t pay the price It will be no surprise to regular listeners of the podcast that I love Health Savings Accounts. I’m such a huge fan because they are a largely unknown way that you could be saving for retirement. Even if you are utilizing an HSA, you may not know how to get the most out of it. Or you’re making mistakes with it that could cost you down the road.

One common HSA tax penalty is the 6% overcontribution penalty. This penalty triggers when you’re enrolled in Medicare and you inadvertently contribute to your HSA. Enrolling in Medicare means that you can no longer contribute to an HSA. It also means you’re employer can’t contribute to an HSA on your behalf either. If you’re planning to work past 65 and enroll in Medicare, it’s crucial to communicate that with them.

Slow your enroll The most frequent HSA mistake that people make is not knowing when to enroll in Medicare. Medicare has two standard parts: Part A and Part B. Part A is free as long as you or you’re spouse has worked for at least 10 years and covers the partial cost of a hospital stay. Part B helps cover medically necessary services like doctors' visits, outpatient care, and other medical services that Part A doesn't cover. If your plan is to work past the age of 65 and continue to make HSA contributions, you wouldn’t want to enroll in Medicare until you retire.

Another HSA mistake I see often is people who work past 65 and collect Social Security benefits. For some, this is the best option for their situation. But like I’ve said in numerous past episodes, waiting to collect Social Security until full retirement age, or even age 70, will put far more money in your retirement savings than collecting as soon as you can. However, it’s even more necessary to wait if you want to contribute to an HSA because collecting Social Security benefits will automatically enroll you in Medicare Part A. Listen to this episode for more information on Medicare enrollment and HSAs!

Resources Mentioned * How To Make The Most of Your Health Savings Account, #1 * The Top Providers For HSA Accounts, #44 * 7 Things To Know About Working and Collecting Social Security Benefits, #74

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How do married people make retirement contributions for both spouses if only one is working? Whether you’re dragging your feet to file taxes for 2021 or planning ahead for 2022, this episode is for you! Learn how to keep your significant other’s retirement planning on track while getting them a tax deduction they would otherwise miss.

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You will want to hear this episode if you are interested in... * Getting familiar with spousal IRA contributions [1:21] * Which type of spousal IRA contribution is right for you? [4:05] * Exploring spousal IRA income limitations [5:50] * Where do I set up a spousal IRA? [10:37]

The basics of spousal IRA contributions As a married person, you likely want your spouse to be just as prepared for retirement as you are. After all, you’re in it together! But what happens if your spouse needs to take a year off from work to focus on themselves or take care of children? Do they have to put their retirement planning on hold as well? Absolutely not. Spousal IRA contributions allow a working spouse to contribute on behalf of a partner who isn’t working or didn’t have access to a company retirement plan.

Spousal IRAs are almost identical to normal IRAs and are fairly straightforward. If your spouse is under 50 years old you can contribute up to $6,000 to an IRA in their name. After 50, the IRS gives you a “catch-up bonus” of a thousand dollars bringing the maximum contribution amount to $7,000. The IRA contribution deadline is easy to remember because it’s Tax Day (April 15th) so there is still time to make a contribution for 2021. If you’ve already filed taxes for last year and would still like to make an IRA contribution, be aware that you need to amend your return to reflect that contribution.

Know your options and your limits Similar to a regular IRA contribution, spousal IRA contributions have the option of going into either a traditional IRA or a Roth IRA. If you are looking to receive a deduction for your spousal IRA contribution then the traditional IRA is the way to go. The only downside is that all withdrawals on a traditional IRA will be taxed. With a Roth IRA, you lose the ability to deduct the contribution, but you pay taxes on the money upfront so all distributions are tax-free. Choosing which option is best for you really depends on your financial situation so pick the one that best suits your needs.

Another thing to consider is the spousal IRA income limitations. If your modified adjusted gross income (MAGI) is under $198,000 and the spouse you plan to contribute for didn’t have access to a company retirement plan during the year, you can make the full six or seven thousand dollar contribution. If your spouse had access to a company retirement plan for part of the year, they are subject to a different adjusted gross income limit. To learn more about these limits and other valuable information about spousal IRA contributions, listen to this episode!

Resources Mentioned * Episode 87: How a Mega Backdoor Roth Can Accelerate Your Retirement Savings

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You may have seen that the Federal Reserve is officially increasing interest rates. The question on many of my client’s minds is “How will this affect my retirement?” If you’re asking the same question, this episode is for you! Join me, as I break down this new interest rate hike and give you strategies to continue planning for and living in retirement successfully. You will want to hear this episode if you are interested in... * How DOES the Fed and central banking work? [1:13] * How interest rates impact spending [2:55] * Fighting inflation and examining historical interest rate changes [5:23] * Why higher interest rates impact bonds and other investments to keep your eye on [8:24] * What interest rate increases mean for U.S. stocks [12:22]

Getting to know the Fed One of the ways that central banks around the world control economic activity is by raising interest rates. If an economy is doing well, banks will raise interest rates to curb inflation. Alternatively, banks will lower interest rates to help jumpstart a sluggish economy. In the United States, interest rates are controlled by the Federal Reserve Board, aka the Fed. Our Fed’s dual mandate also includes the responsibility to promote maximum employment and promote price stability.

Currently, the Fed is in the difficult situation of balancing low price stability and high-interest rates with the geopolitical climate. As of March 16th, the Fed raised interest rates a minimal 0.25 percent. This is definitely on the low end of what some economists were predicting, nevertheless, it’s still an increase with the expectation that there will be further increases later this year. Don’t get caught off guard! Read on to learn how these increases could impact your retirement.

Measuring the impact of higher interest rates For every loan you take, interest is typically paid to compensate the lender. Several factors go into determining your interest rate, such as your credit history, the amount of money that you’re borrowing, and the timeframe chosen to pay back the loan. The banks we borrow from have to keep a certain amount of capital on hand to meet minimum deposit requirements. When they run short, they borrow money from the Fed to keep the economy rolling.

However, when the Fed increases interest rates, they raise the cost for banks to borrow the money they are lending to you. Fed interest rate hikes force banks to increase their interest rates when you borrow money to purchase things like homes, cars, and other kinds of loans. The more you have to pay in interest, the less money you’ll have in your pocket to go towards the principal, thus diminishing the amount of money you can spend. That means a $500 per month payment buys less house and less car than it did before, potentially limiting your buying choices. It also further complicates an already complicated housing market, especially if more increases are on the way. For more ways interest rate increases impact you and your retirement, listen to this episode!

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Has inflation gotten you down? Are you worried about rising prices and how to combat them in retirement? This episode is for you! Let me show you five ways to hedge your retirement income against inflation and why these methods are effective. You will want to hear this episode if you are interested in... * Delay collecting Social Security benefits [1:56] Waiting till full retirement age. You can * Does your pension have a cost of living adjustment? [6:07] * Invest in stocks and real estate [7:21] * Why you need I-Bonds in your retirement portfolio [10:38] * Is your portfolio worth its weight in gold? [13:16]

An essential retirement planning strategy Any regular listener of the podcast has heard me talk about delaying the collection of Social Security benefits until their full retirement age. The longer you wait until age 70, the more your monthly benefit will be. If you can wait, do it! However, with the current rise in inflation, waiting to receive your maximum benefit is quickly becoming an essential strategy for retirement planning. Not only will your monthly benefit be larger, but the cost of living increases to that benefit will be as well. A 5% increase on $2,000 is obviously more than the same increase on $1,000. That extra money in your pocket will help you keep pace with inflation.

So what does a cost of living increase for Social Security benefits look like? The percentage is determined by the Consumer Price Index. Over the last decade, we haven’t seen much of an adjustment. However, last year saw a large 5.9% cost of living increase. The downside to this strategy is that you have to live long enough to make back what you’re giving up by deferring your Social Security benefits. Give this episode a listen to learn how to figure out YOUR specific “break-even point”.

Weigh your options and do what makes sense Another great way to use retirement income to shield yourself from inflation is through your pension. If it allows for a cost of living adjustment, it would be in your best interest to know exactly how it works. You need to know how that cost of living adjustment is determined. Any pension that offers you a cost of living increase will clearly communicate what they tie that number to. Similar to delaying Social Security benefits until your full retirement age or age 70, there is a “break-even point” to consider because a pension with a cost of living adjustment always pays out less initially than one without. Weigh your options and do what makes sense!

Investing in stocks and real estate is another way to fight inflation with your retirement portfolio. Since 1957, the S&P 500 has reported an average annualized return of 10.5% through 2021. When you have a significant allocation of your retirement investments in stocks and stock funds, you’re trusting in the time-tested reliability of the market to eventually adjust for inflation. However, volatility can be an issue. Over the last 30 years, the S&P 500 has seen an average intra-year decline of 15.7% and it’s declined over 30% a total of six times. Including when the pandemic hit in March of 2020. Obviously, we can’t take the good without the bad, but stocks have proven to be a useful hedge against inflation. For more information, listen to this episode!

Resources Mentioned * https://www.ssa.gov/cola/

Connect With Morrissey Wealth Management * www.MorrisseyWealthManagement.com/contact

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401k and IRA contribution limits can stand in the way of trying to save a lot of money in a short amount of time. If you got a late start on retirement planning and you’re trying to save as much money as possible in a tax-advantaged way, this episode is for you! I’m going to tell you all about the Mega Backdoor Roth IRA: what it is, how it works, who should consider it, and what the alternatives are if you don’t qualify. You will want to hear this episode if you are interested in... * What is a Mega Backdoor Roth IRA? [1:08] * How a Mega Backdoor Roth IRA works [3:10] * Who should take advantage of a Mega Backdoor Roth IRA? [9:37] * Alternative options if you don’t qualify for the Mega Backdoor Roth IRA [11:47]

Understanding traditional Roth accounts Before diving into what a Mega Backdoor Roth IRA is and how it accelerates retirement savings, we need to understand how a traditional Roth account works. With both a Roth 401k and Roth IRA, you contribute money that you’ve already paid taxes on, allowing it to grow and be withdrawn tax-free. While Roth 401ks are pretty straightforward, Roth IRA contributions are a bit trickier because they depend on your adjusted gross income (AGI) and your tax filing status. For example, the 2022 AGI for those filing as single needs to be under $129,000 to make the full contribution. Additionally, people who are married and file jointly need an AGI under $204,000 to do the same. You can also convert traditional 401k and IRA money over to a Roth IRA by paying taxes on it at your current rates.

There are also limits to how much you can contribute to both accounts. If you are over 50 years old, you can contribute up to $27,000 to a Roth 401k and $7,000 to a Roth IRA. Those under 50 can contribute up to $20,500 and $6000, respectively. These limits pose a potential problem for those who waited for retirement planning and need to increase their saving power. That’s why a Mega Backdoor Roth account might be your next best option!

Using a Mega Backdoor Roth IRA To determine if you’re eligible for a Mega Backdoor Roth account, you need to make sure your company allows for after-tax contributions and in-service withdrawals on your traditional 401k. The next thing to look at is the total profit sharing contribution limit. This limit is the combined contributions of what you and your employer make. Pending eligibility, those under 50 can save up to $61,000 while those over tap out at $67,500, depending on your specified limit.

The final step to setting up this account would be converting the money over to a Roth IRA as soon as possible. This is why you need in-service withdrawals! Transferring the money out of your pre-tax 401k account into a Roth IRA means you would benefit from the tax-deferred growth that occurs on top of whatever amount you are contributing. To learn more information about Mega Backdoor Roth IRAs and alternative options for those who don’t qualify, listen to this episode!

Resources Mentioned * Episode 25 - Which is Better: Roth IRA or Traditional IRA * Episode 67 - Elimination of the Backdoor Roth IRA and Other Possible Tax Changes

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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As tensions run high between the U.S. and Russia over the latter’s occupation of Ukraine, many investors are worried about how this conflict will impact their retirement portfolio. On this episode, we’ll take a look at the current state of the market, stock market performance during previous wars and conflicts, as well as potential portfolio strategies that can help you weather the storm.

You will want to hear this episode if you are interested in... * Examining the current state of the market [1:12] * Financial analysis of five crucial historical conflicts [3:03] * Ways to be prepared for the potential Russian conflict ahead [10:15]

Look at the market There are several different metrics that you can use to ascertain the current health of the stock market. While the Dow Jones average is certainly one method, I prefer the S&P 500 because we have data on that going back to 1927 that is easily searchable online. It's also a good indicator of how the stock market is doing because it represents the 500 largest companies in the United States. Currently, the S&P 500 is down 9.5% year to date and will require market correction if it hits 10%.

However, we’ve experienced positive returns over the last three years averaging 24.01% so this current downturn could simply be the natural flow of the market. Even during the years that have ultimately turned out positive, we’ve experienced “intra-year declines” where we see drops throughout the year. At the height of COVID, we saw the S&P 500 drop as low as 30%, yet it ultimately ended the year with a 16.26% return, further proving that the current state of the market is not an invitation for drastic action but a call to be alert and prepared.

Follow the money All the market cares about is profit. Profits are what drive the entire thing. Investors use profit information found in S&P 500 company’s fourth-quarter (Q4) reports to inform their trades and how they invest. For Q4 of 2021, 84% of S&P 500 companies have reported as of now. 78% of those companies show positive numbers across the board in their annual reports. Meaning they received more revenue and earned more profits than anticipated for the year. So it would seem most companies do have a cushion if the U.S. were to get into a prolonged war with Russia.

Another thing to consider is how many S&P 500 companies actually have exposure to Russia. To date, only ten companies would feel a direct impact if the U.S. goes to war with Russia. If none of these companies could do business in Russia, the highest revenue lost would be Philip Morris at 8%. While that may be a significant amount of money, it’s not enough to put any of these major corporations out of business. Admittedly, I don’t know the future. Things could get way worse than anticipated if war does break out. The market could also get better like when the U.S. called Russia’s bluff in Crimea. Trying to predict what’s going to happen before it happens is largely a waste of time, but there are things you can do to be prepared. Listen to this episode to learn more!

Resources Mentioned * Yahoo Finance * Factset: S&P 500 (PDF) * J.P. Morgan S&P 500 Investment Performance Report (PDF) * Financial Analysis of Historical Conflicts (PDF)

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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When people think about retirement, they view turning 65 years old as the magic number. And I get it! Why wait a few more years if you can retire now? Surprisingly, there may be more reasons than you think. On this episode, I’m going to share with you five benefits of working past the age of 65, why these may be beneficial for you, and how to take advantage of them before it’s too late.

You will want to hear this episode if you are interested in... * Working longer to keep saving towards retirement [1:20] * Working longer to delay Social Security benefits [2:51] * Working longer to contribute to an HSA [5:22] * Working longer to cover your travel expenses [8:09] * Working longer to stay young [9:22]

Worth the wait Many people have the mindset that they want to retire as soon as possible. However, there are plenty of good reasons to wait. For example, if someone worked until the age of 70, that’s going to shorten the amount of time they would need to live off their portfolio in retirement. Thus needing to save less than someone who retired earlier. It’s also a huge benefit if you got a late start in retirement planning. Staying in the workforce and retiring later can help you make up for lost time and save the money you’ll need for a successful retirement.

Another great reason to keep working is that it delays when you begin collecting Social Security benefits. You get an additional 8% credit per year for every year you wait until your full retirement at age 70. Meaning, if full retirement for you is age 67 and you wait until you turn 70, you would receive an additional 24% in benefits. Working longer also benefits people who earned a lower income at the beginning of their careers and are now in their peak wage-earning years. Replacing lower-income years with higher-income years can also increase your benefits.

Strike while the iron is hot When planning for retirement, there are a handful of things that you can only do before retirement that will serve you well in retirement. One of those things is contributing to a Health Savings Account (HSA). I LOVE these things because they are currently the only triple tax-free investment account available. Triple tax-free means that you receive a deduction on your contributions, the money grows tax-deferred, and when you take it out and use it for health-related costs it’s 100% tax-free to you. You would likely be able to take advantage of this because many employers are switching to high deductible health plans. However, once you enroll in Medicare, you are no longer eligible for an HSA account. Staying employed allows you to continue making contributions to an HSA that will serve as a tax-free medical fund in retirement.

Additionally, most people wait until after they retire to take their dream vacation. While the sentiment makes sense, it could be more beneficial to take that trip while you’re still working. If you can pay for your travel while you’re still receiving a paycheck, it will be less of a hit on your finances in retirement. You also have the added benefit of using paid time off if you have it available. For more information on working past the age of 65, listen to this episode!

Resources Mentioned * 6 Ways Seniors Can Stay Young And Active After 60 (Article)

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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If you listened to last week's episode, you know that owning bonds is a key part of asset allocation. However, the issue with that at present is their low return. This is especially challenging given the recent spike in inflation. On this episode, we’re going to talk about I bonds. A bond specifically designed to adjust for inflation! I’ll show you how they work, how you can invest in them, and potential setbacks with this kind of investment.

You will want to hear this episode if you are interested in... * What is a U.S. savings bond? [1:27] * How does an I bond work? [2:50] * The pros and cons of investing in I bonds [5:23] * Purchasing and planning for I bonds [10:56]

Bond, Savings Bond U.S. savings bonds are issued by the U.S. government and are often considered one of the safest investments you can make. There are multiple types of U.S. savings bonds, however many of these are paying little to no interest at the present moment. For example, the 10-year savings bond has a rate of 1.954% interest, which is even an increase from a few weeks ago. Normally, this would be a decent return, but with inflation rising to nearly 7% and no signs of stopping, you’re likely looking at a negative return with this kind of investment.

Thankfully, there is a U.S. savings bond that adjusts for inflation. It's called the I bond and inflation is what the “I” stands for! Two components make up an I bond you need to be aware of. The first component is the fixed-rate currently sitting at 0%. Obviously, investors won’t get a return with that number. They need to look at the second component that is tied to inflation as measured by the consumer price index. The good news is that because inflation has been so high recently, the consumer price index rate is 7.2%, making I bonds significantly more attractive for investors.

Weigh your options There are numerous benefits for investors looking to diversify their portfolios with I bonds. The first is that interest is deferred for the 30-year length of the bond unless you cash it out early. I bonds are also an incredibly low maintenance investment. The interest rates adjust every six months so you only need to check on it in May and November. There is also a huge benefit to those looking to use I bonds to cover educational costs as the interest earned is federally tax-exempt when used for that purpose.

While there are many reasons to take advantage of I bonds right now, they do have a few restrictions. You can only purchase $10,000 worth of I bonds per person, per year. That limit can be frustrating for investors who have a lot of money in the bank that is earning a nominal amount of interest. While it’s certainly not a reason to avoid I bonds altogether, it simply means that I bonds shouldn’t be your only investment strategy. Another potential hiccup for I bond investors is if they are purchasing them for their grandchildren. In this case, I bonds could disqualify college students from necessary financial aid through FAFSA because it represents an asset in the student’s name. Investors should coordinate with their children before purchasing an I bond for their grandchild. Listen to this episode for more information on I bonds!

Resources Mentioned * Series I Savings Bonds

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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What is asset allocation? How should you approach that while saving for retirement? What about during retirement? Deciding how to invest your assets is incredibly important. On this episode, I’m going to break down your diversification options and give you my take on how to best invest for a successful retirement! You will want to hear this episode if you are interested in... * What is asset allocation? [1:21] * Deciding which asset allocations are right for you [3:16] * Asset allocation and your retirement time horizon [5:57] * Exploring your risk tolerance [7:34] * Steps needed to create a diversified asset allocation [12:17]

The benefits of diversification Asset allocation is the single greatest decision that an investor has to make with one of the largest impacts on your investment portfolio. If you Google asset allocation you’ll get a lot of different answers, but it boils down to this: dividing your assets among the various asset classes such as stocks, bonds, and cash to manage the risk in your portfolio. There are also additional options for asset allocation such as real estate or commodities. Diversity amongst your assets will help smooth out any declines. For example, your portfolio will take a minimum hit if the stock market declines while the commercial real estate market remains steady. Diversification helps to protect your portfolio when the markets inevitably fluctuate.

While you definitely should diversify your portfolio, an issue we’ve encountered over the last several years is the high correlation between these asset classes. Meaning, when stocks go down so do the real estate market and commodities like gold and other precious metals. You don’t always see this happen, but it’s definitely something to keep an eye on when choosing how to allocate your assets.

Keeping pace with inflation There are several different ideas when it comes to how you should allocate your assets. A typical suggestion is to subtract your age from 100 and the remaining number is the percentage of your assets you should have invested in stocks. A major problem with this method is that it’s fairly inaccurate. It would have a 65-year-old investing only 35% of their portfolio into stocks. That puts too much weight into bonds and cash and doesn’t properly account for the rising rate of inflation. Increasing the number you subtract from to 110 or 120 does give you a better chance of combating inflation, but it still leans heavily on bonds.

Investing in bonds has a certain amount of unpredictability involved. Bond returns are based on ever-fluctuating interest rates. As we know, current interest rates are at an all-time low so the likelihood of finding a CD with a good return is as well. In my research, I couldn’t find anything higher than 1.25%. If inflation is hanging out around 7%, investing a large number of assets in bonds will put you way behind the curve. For more information on how to allocate your assets, listen to this episode!

Resources Mentioned * Vanguard Investor Questionnaire * The Investment Answer: Learn to Manage Your Money & Protect Your Financial Future (Book) * Simple Wealth, Inevitable Wealth (Book)

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Every parent wants to provide the brightest future possible for their child. That includes helping them save for college! But sometimes the money you set aside for higher education is no longer needed. Scholarships could cover it or a change of plans could render it unnecessary, leaving you with a large pile of cash. What now? On this episode, I’ll show you six ways to use an old 529 College Savings plan so you don’t pay the penalty for an unqualified withdrawal.

You will want to hear this episode if you are interested in... * The surprising people who can benefit from a 529 account [2:14] * Yes, doing nothing is an option [5:04] * 529 accounts and student loans [6:20] * Using a 529 account to create a legacy [7:25] * Taking advantage of penalty-free scholarship withdrawals [8:22] * Using the money for non-qualified expenses [9:39]

Change of plans? No problem! So your high school senior just told you they’re starting a business instead of going to college…now what? You’re happy for them, but what do you do with all the money you saved in that 529 College Savings plan? Thankfully, you have options! At any time you can transfer the beneficiary to another qualifying family member. If you decide to make this change you’re not turning over control of the money to anyone, just naming a beneficiary for when you decide to release the money. If your name is still on the account, it's still your money.

Also, most people don't realize they can make themselves the beneficiary of a 529 account. If you’ve been planning to continue or go back to school you can use the money to pay for your own educational costs. However, it’s not only limited to pursuing education for a career. Have you been dreaming about going to culinary school in France? Or maybe learning from the pros at a golf college? A 529 plan can be used for your passions as well as a degree.

Get the most out of your 529 plan One of the beautiful things about a 529 College Savings plan is that it is not subject to a time or age limit. You never have to take a required distribution so if you’re kid decides to skip college to start a band, you have time to figure out your next move for the money. Some people choose to keep growing the account to build a legacy. You can leave the money in a 529 for a lifetime. Upon passing, the account will transfer to whoever is listed as the successor. The money just keeps growing! If down the road someone in your family needs help with school, it would be available.

So what about scholarships? Are parents penalized because their child worked hard and figured out how to pay for school? Not at all. Anytime your student gets a scholarship, you can withdraw up to the amount of that scholarship to spend on anything you want. Keep in mind that you still need to pay income tax on any gains in the account. Meaning, if you’ve contributed $20,000 to the 529 account and through investment, it’s now worth $30,000, you would need to pay income tax on the $10,000 increase if you empty the account. Because a 529 uses pro-rata distribution, you can’t differentiate between principal and gains. For more 529 account tips, listen to this episode!

Resources Mentioned * 4 Surprising Places to Use 529 Plan College Savings (Article) * Who is a Member of the Family of a 529 Plan Beneficiary? (Article)

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Tax-planning for small businesses is a critical aspect of their success. After all, the better you plan the better things tend to work out. On this episode, I’m once again joined by tax expert Laura Caifa to discuss something new: tax reduction strategies for small businesses. We go over everything from the deductions you should keep track of to why it may be time to transition to an S-Corp. You will want to hear this episode if you are interested in... * Everything small businesses should keep track of [1:17] * Deductions you should be taking 100% of the time [6:02] * Why a Health Savings Account is a retirement game-changer [8:41] * What you need to know about tax-free rental income [12:40] * Reasons you should consider moving to an S-Corp [14:35]

What you track today could save you money tomorrow Transitioning from payroll employee to small business owner can be an overwhelming process. Especially when it comes to tax season. The best advice anyone could give in this area is to keep track of EVERYTHING. But what is the best way to do that? GOne are the days of using a shoebox to keep track of receipts. Or worse, your memory. Accounting software like QuickBooks will bring you and your accountant some much-needed stress relief. However, income and expenses aren’t the only things you need to keep a record of. Mileage can be a huge tax break if tracked properly through one of the many phone apps that do so. Just make sure the mileage you’re tracking is business mileage and not commuting mileage going to and from the office. Another deduction every small business owner should be tracking is meals. As of 2021, 100% of business meals are deductible if they are purchased at a restaurant. There are a slew of great apps that can save and organize your receipts and let’s be honest: why wouldn’t you want to write off every meal you can? It’s a major perk of owning your own business.

Tax seasons best-kept secrets While these aren’t specifically for small business owners, there are two tax strategies Laura and I talked about that I want to highlight. The first is using a Health Savings Account (HSA). Most people know how HSAs work. Any money you put into it takes a pre-tax deduction, but any money withdrawn from the account for qualified medical expenses is not taxable. However, most people are unaware that you can use an HSA as a retirement strategy. Laura and I both recommend throwing money into a high-deductible HSA qualified plan and then letting it sit. Cover any affordable out-of-pocket costs so that the account continues to grow tax-free. That way when retirement comes and income decreases, you can reimburse yourself from years prior by saving old receipts. You can even invest the money back into a stock fund if your plan allows, rather than letting it sit there earning zero interest.

The second tax strategy is tax-free rental income. I have to admit, I was unaware of this until my conversation with Laura, but it’s one of my new favorite things. The general rule is that if you rent your residence or a residence you own for 14 days or less, the income from that rental is tax-free regardless of how much it is. Meaning you could rent out that vacant vacation home for two weeks out of the year and get a sweet tax-free boost to your income.

Resources Mentioned * Caiafa & Company LLC

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Everyone has their own unique tax puzzle. Retirement can be an especially challenging time because there are many uncharted waters to navigate for new retirees. Did I pay enough taxes during the year? How can I avoid paying penalties altogether? Questions like these can seem intimidating, but they don’t have to be! On this episode, I’m joined by tax expert Laura Caiafa to give you the answers you're looking for and help you breeze through your first tax season in retirement.

You will want to hear this episode if you are interested in... * Getting to know Laura Caiafa [1:00] * Pitfalls of paying your taxes on the back-end in retirement [2:34] * How the IRS determines underpayment penalties [4:43] * Best ways to avoid paying an underpayment penalty [6:21] * Setting up quarterly estimated taxes and thoughts on intentionally overpaying [9:36] * Exploring deductions as a new retiree [11:58] * The logistics of changing your residency to avoid income tax [14:23] * Final thoughts [17:33]

Tax professionals can help you avoid IRS headaches Bottom line: The IRS wants their money evenly throughout the year. If you don’t pay enough taxes throughout the year or you pay late, the IRS can hit you with an underpayment penalty that averages around 3% of what you owe. You can avoid the penalty by making sure that your tax balance due at the end of the year is under $1000. The real question is why would you want to give a free gift to the IRS? As Laura said, there’s no reason to pay this penalty and it’s easily avoided with tax planning. Avoid this headache altogether by paying the correct withholding or even estimated taxes. You may have “less” money during the year, but it’s better to pay some now than lose even more money to a pointless fee.

A common question we get is “Should I intentionally overpay my taxes to avoid penalties or an end-of-year tax bill?” By intentionally overpaying, you’re giving the government an interest-free loan that gets you zero brownie points. There’s no benefit to overpaying at all, other than maybe peace of mind that you won’t owe anything when tax season comes to a close. But that’s where using a tax professional comes in handy! They can figure out roughly what you’ll need to pay the IRS and even build in an appropriate cushion to ensure you’re paying enough while keeping the majority of your money with you.

Retirement is the perfect opportunity to re-evaluate your deductions Unfortunately, there aren’t any deductions available just for entering retirement. Standard deductions are quite high these days, coming in at a whopping $25,000 for married couples. That makes it difficult to get the maximum tax benefit on an annual basis. Philanthropic retirees can maximize their contributions by switching between itemized and standard deductions each year. Meaning, clients can save all of their charitable giving for a year that will push them above the standard deduction, instead of constantly falling below it.

There are also state-specific deductions on retirement income that you may be able to take advantage of. Retired teachers in Connecticut can subtract 50% of the income received from the state teacher's retirement system on their state taxes. Additionally in Connecticut, there is a subtraction modification of 28% for pension and annuity income and you can exclude Social Security income altogether on your state taxes. Other states may have similar deductions so do your research and reach out to a tax professional for more information!

Resources Mentioned * Caiafa & Company LLC

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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If you’re approaching the age of 72 and you still have questions about Required Minimum Distributions (RMD), this episode is for you! We’ll take a deep dive into all things RMD so that you know what they are, how much you can expect to take out, and the best way to withdraw them. I’ll also give you helpful strategies to prevent RMDs from inflating your next tax bill. That way you can put more of your wealth to good use!

You will want to hear this episode if you are interested in... * What is a Required Minimum Distribution (RMD)? [1:30] * How much do you need to take out? [2:13] * RMD aggregation rules you need to know [4:17] * What can you do with the money from an RMD? [6:18] * Can you avoid an RMD? [7:04] * How is the money from RMDs taxed? [8:21] * How can I reduce my RMD tax bill? [9:35]

The basics of Required Minimum Distributions Required Minimum Distributions may sound confusing, but they are rather straightforward. RMDs are an amount of money that the IRS requires you to withdraw from your retirement accounts at the age of 72. All IRAs are subject to these required distributions except for Roth accounts. Once taxes have been paid on the amount withdrawn, the money is yours to do with what you like. Reinvesting the money into a taxable investment account may be a wise choice, but using it to enjoy your retirement is a completely valid option as well. After all, you can’t take it with you!

One thing to be aware of with RMDs are the aggregation rules. You can combine your required contributions from regular IRAs and pay with one account, but you can’t lump that in with other workplace retirement accounts like a 401k or a 403b. This is where many retirees get into trouble and even advisors can get confused. My recommendation is to roll everything into an IRA with one advisor/custodian who can keep an eye on all of your accounts to make sure everything is done correctly. The last thing you want is to pay a 50% penalty to the IRS!

As the old saying goes… Death and taxes may be unavoidable, but good wealth management strategies can at least lessen the blow of the latter. While continuing to work can delay Required Minimum Distributions past the age of 72, they won’t prevent them from kicking in the year after you retire. A better strategy to reduce the tax impact of RMDs is to begin taking money out as early as 65 or whenever you retire. You will likely have to pay more in taxes if you wait until you turn 72 versus paying fewer taxes over time if you start early.

Another fantastic RMD strategy for the charitably inclined is using a Qualified Charitable Contribution (QCD). QCDs allow you to donate your RMD to the 501c3(s) of your choice up to $100,000 per year, per person. That’s especially beneficial for those who can no longer itemize their taxes and are limited to writing off only $600 in charitable contributions per couple. Just make sure you donate the money through your financial institution by filling out their forms as you are unable to take receipt of the money and donate it yourself.

Resources Mentioned * Uniform Lifetime Table 2022 (PDF)

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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If you’re looking to retire in the next few years, this episode is for you. As we move into 2022 you can start your year right and get your retirement plan in order by doing a handful of simple “money moves” to ensure you’re on the right track. This is a rapid-fire, easy-to-follow episode so get out your pencil and paper and take some notes. We’ll cover reviewing your budget, paying down high-interest debt, increase contributions to your retirement plans, review your asset allocation, create an emergency fund, review life insurance coverages, and review or update your estate planning documents. It’s all on this episode.

You will want to hear this episode if you are interested in... * [0:56] Review your budget: How did you spend your funds in 2021? * [2:20] Start to pay down your high-interest debt * [4:30] Increase your contributions to your retirement plans * [6:00] Review your asset allocation * [8:09] Create an emergency fund * [9:39] Review your life insurance coverage * [11:01] Review your estate planning documents

2022 money move recommendation #2: Pay down high-interest debt This could be holiday spending debt, or debt you’ve had for a while. High-interest debit is problematic especially as you near retirement. I personally like to address the highest interest debt first and begin making extra payments to it. As you pay off that debt, you then move your payment to the next debt in line. Some other options to help you accelerate your debt payoff are:

You could consider refinancing your home if the interest rate you currently have is high, but be sure you calculate if it’s worth the process to incur closing costs and fees required to refinance. You could also take out a home equity line of credit, which will have a variable interest rate after a year or so, but it likely won’t be as high as your credit card rate.

Money move #7: Review your estate planning documents Reviewing your estate planning documents is easy to put off, it’s like cleaning out the garage or the attic — you know you need to do it but it never seems to get done. If I may, can I encourage you to bump this up on your priority list? It’s very important. If you don’t have an estate plan and pass away, the disposal of your estate may not go as you wish which could make things very difficult for your beneficiaries and family. But you can do some simple things and avoid all that. What are those things?

Make sure you have a Will. Then ensure you have beneficiaries named on all of your retirement, investment, and annuity accounts. For non-retirement accounts, make sure you set them up as “transfer on death” accounts or with joint tenancy so someone else can access the account if you are unable. Also, consider setting up both healthcare and financial power of attorney.

Listen to hear all the money moves I recommend for 2022.

Resources Mentioned * The ADP Paycheck Calculator (it’s free) * Episode 76: Should you have an emergency fund? * Episode 7: Should you keep your life insurance? * Episode 9: Estate planning in 7 steps

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Taking out a line of credit on your home can be a great wealth management strategy, but it can also feel like a scary process. Who should you get the loan through? How long do you have to pay it back? Why should you even do it in the first place? On this episode, I’m going to tell you the seven things you need to know about home equity lines of credit as it relates to retirement and give you the confidence to make the best decision for your financial future.

You will want to hear this episode if you are interested in... * What is a home equity line of credit? [1:48] * How do you get a HELOC? [02:56] * How is a HELOC paid back? [4:19] * What are the costs associated with a HELOC? [5:00] * Reasons why you should consider a HELOC [5:43] * Things to consider before opening a HELOC [8:22] * Why HELOCs are better than taking out a traditional loan [10:16]

Defining a HELOC and the best way to get one A home equity line of credit (HELOC) is a loan that you take out against your primary residence. You can also take out a HELOC against a rental property, but it usually works best with your main home. These types of loans require you to have equity in your home to qualify and most banks lend up to 80 or 90 percent of that value. Meaning you can take the loan out against a house with no mortgage or as a secondary mortgage. While I always recommend living a debt-free lifestyle, there are advantages to using a HELOC as your primary mortgage. Even though your house is likely one of your largest assets in retirement, none of that equity is liquid cash. Setting up a HELOC prior to retirement allows you to access that equity in the form of a loan.

Getting a HELOC is fairly simple. My recommendation is to apply for one through a local bank or credit union because they typically have fantastic rates for these lines of credit. How much a bank will loan you depends on how much equity you have in your home and your income to debt ratio. As I mentioned earlier, you should apply for a HELOC before retirement because income usually decreases once you stop working, making you a less desirable loan candidate from the bank’s perspective. As with any loan, you will need to provide documentation of your income, assets, and tax returns, but it’s not as grueling of a process as applying for a traditional mortgage.

The logistics of a HELOC and why it can be beneficial Most HELOCs allow you to use the line of credit for 10 years, essentially like a credit card backed by your house. They give you a checkbook that can be used for whatever you need. You can pay your bills, pay your insurance, and even pay yourself. If there is a balance on the account at the end of 10 years they typically give a 15 year repayment period to bring it down to zero, but you can obviously pay it off before then. You also have the option to refinance a HELOC before the end of the 10 years to extend your credit line an additional 10 year period.

The following are reasons why you should consider opening a home equity line of credit if you’re approaching retirement:

1. It can be used as a backup plan for stock market decline
2. Interest rates are very low
3. It can be used as an alternative emergency fund
4. It can be a great option to cover long-term care needs

For more information on HELOCs and things you should consider before applying, listen to this episode!

Resources Mentioned * Connex Credit Union

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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If you’ve attended one of my retirement readiness workshops, you’ve probably heard me say that every working person needs an emergency fund containing three to six months of income. But what about retirement? Should someone still keep an emergency fund even if they receive a steady retirement income? Listen to this episode to hear me go over the four things you NEED to know about having an emergency fund in retirement. You will want to hear this episode if you are interested in... * Do you need an emergency fund when you’re retired? [0:55] * How much money should you have in your emergency fund during retirement? [3:07] * Where should you keep your emergency fund? [5:29] * Where NOT to keep an emergency fund [8:58]

Find the right balance Because most retirees have guaranteed income through Social Security, pensions, and other sources, the typical recommendation to have 3-6 months of living expenses in an emergency fund can be unnecessary. How much you keep in that fund depends on how much retirement income you receive and your expenses. It’s always a good idea to follow a budget and be aware of these numbers. If your income is greater than your budgeted expenses, you may not need as much money in your emergency fund. However, if your income closely matches your expenses, I’d recommend having at least three months of income or more saved in the fund, depending on where your money is invested. If the majority of your money is invested in pre-tax retirement accounts like traditional IRAs and 401ks, I would recommend saving at least three months of income for a rainy day. However, Roth accounts are post-tax, so if that’s where you keep your investments, you shouldn’t need to save as much.

If you don’t have an emergency fund right now, that’s okay! It’s easy to set a little bit aside each time you take money out of your retirement accounts and slowly build up your fund. You can also take out a little more each time to create this cushion. The important thing is to make sure you keep track of how much you are withdrawing from your retirement accounts annually. You don’t want to accidentally put yourself in a higher tax bracket just to start an emergency fund.

Location. Location. Location. Choosing where to keep your emergency fund is a matter of preference and interest rates. You want to make sure your fund is kept in a comfortable place, but also in a place where it’s going to earn the most interest. One option is a high-yield savings account. However, the term “high-yield” has lost some of its luster in recent years. Your best bet is to do online research to find which banks offer the most bang for your buck. 0.5% is typically the highest interest rate you’ll be able to find. That means if you have a $50,000 emergency fund in a high-yield account, you will earn $250 annually. While that amount won’t necessarily make anyone run out and get one of these accounts right away, if interest rates go back up to what they were even a few years ago (between 2 and 2.5 percent), it could make a big difference in the future.

Another great location for an emergency fund is a Roth IRA account because the money is already taxed. It may even be beneficial to look at your Roth IRA as your emergency fund in the first place. One of the major benefits of this kind of account is that once the account has been open for five years and the account holder has reached the age of 59 and six months, you can withdraw the entire balance without a tax penalty. Equally important to where you keep your emergency fund is where you shouldn’t. Avoid places that cost you penalties to withdraw funds or accounts that earn little to no interest like traditional IRAs and 401ks. For more information on where you should or shouldn’t keep an emergency fund in retirement, listen to this episode!

Resources Mentioned * Bankrate.com

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Have you recently received a letter notifying you of an exorbitant increase in your property value that will lead to much higher property taxes? Do you know your options? I get it: Everyone’s taxes increase over time. Dealing with inflation is a universal experience. My goal for this episode is to help you identify and prevent gratuitous increases in your property value. I'm going to show you the essential steps you can take to determine if an appeal is necessary, the tools you need to win, and the exemptions you may not be taking advantage of.

You will want to hear this episode if you are interested in... * Knowing the rules for property tax revaluation [1:39] * How to ensure your property records are correct [2:19] * Why property value research is the essential next step [3:40] * Why you may not need an official appeal [5:20] * Walking through the appeals process [6:12] * Additional exemptions for your final tax bill [8:20]

Do your homework Death and taxes may be a guaranteed part of life, but unfair property tax rates driven up by inaccurate property values don’t have to be. The key to fighting a major hike in your next tax bill is doing your homework. First, make sure that your property records are accurate. Mistakes with your square footage, number of rooms, and number of bathrooms can and do happen! Find this information by searching for your property card on your municipality's website or by simply typing “property card” and the name of your city into a search engine like Google. If you find any discrepancies, correct them by contacting the office of your City Assessor.

If your property records are correct, the best way to show your property revaluation is too high is by researching surrounding property values. If your neighbor's property value is much lower for a similar size, condition, and build date then you may be gearing up for an official appeal. If not, research other similar homes in your area to build your case. The burden is on you to prove that your new property value is inaccurate so any relevant information helps.

Know your options If you are looking at a massive increase in your tax bill due to a new property tax revaluation, it may be worthwhile to reach out to a professional. Lawyers and even real estate agents can help you build a successful appeal against your municipality's decision. However, you must decide if your increase warrants the time and money it would take to enlist their help. A yearly increase of $100 compared to $3000 may be worth fighting on your own or leaving alone altogether. The choice is up to you.

Even if you lose your appeal, there are still options you should consider. Statewide tax breaks and exemptions could be your best option for reducing your next property tax bill. Connecticut offers a credit to residents over the age of 65 or those receiving Social Security disability payments. The catch is that it is an income-based credit. Single individuals who make more than $37,600 annually and married couples that make more than $45,800 each year do not qualify. Veterans can also receive additional reductions if they meet specific criteria. Listen to this episode for more information on exemptions and your options for appealing a property tax revaluation!

Resources Mentioned * Connecticut Online Database (Vision Appraisal) * State of CT Guide to Benefits * Q&A Booklet (PDF)

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Working while collecting Social Security has become a popular choice for those approaching retirement, but is it the right choice? If you’ve been thinking about receiving Social Security benefits early, this is your episode! There are seven things you need to know before making this decision. I’m going to walk you through each of them so you can get all the facts and set yourself up for retirement success!

You will want to hear this episode if you are interested in... * Social Security recap [1:24] * Is there a limit to how much Social Security you can receive by working and collecting early? [2:24] * Practical examples of Social Security withholding [4:07] How does all this work? * What income counts towards social security withholding? [7:48] * The special rule you HAVE to know [9:15] * Should you report income changes to Social Security? [10:26] * Are withheld benefits gone forever? [11:13]

Know your limits Ideally, everyone should wait until their full retirement age before collecting social security benefits. If possible, I recommend waiting until age 70 to collect the highest amount owed to you. But life happens! Sometimes it makes more sense to collect early than to wait, depending on your circumstance. If that’s the case, you need to know how your benefits are limited/withheld when you decide to start collecting early while still working and earning additional income. Let’s take a look:

• Limit 1: Between 62 and the year you reach full retirement
• 2021 Earning Limit: $18,960
• 2022 Earning Limit: $19.560

• Amount Withheld: $1 of every $2 over the earning limit (50% penalty)

• Limit 2: Within the year you reach full retirement

• 2021 Earning Limit: $50,520
• 2022 Earning Limit: $51,960
• Amount Withheld: $1 of every $3 over the earning limit (33.33% penalty)

Make it count A question I often get regarding collecting Social Security benefits early is “What income counts towards withholding?” The short answer is: only earned income. Things like investment income, pension income, and other forms of passive income will not be penalized. If you are self-employed, only your net income counts as earned income. If you contribute to a 401k or a retirement plan, you don’t have to worry about paying taxes on that money, but anything that reduces your net pay will count towards Social Security withholding.

What about changes in income? Should I report that to the Social Security Administration (SSA)? Surprisingly, this question is often a follow-up to the first one. The answer is a resounding YES. Failing to report income or changes in income to the SSA can result in a stoppage of Social Security benefits until the issue is resolved, or worse, a requirement to pay back benefits received under false pretenses. Bottom line: be honest and plan well so that you don’t find yourself in a difficult situation.

Resources Mentioned * Collect Social Security Now or Wait? Ep #4 (Podcast Episode) * Cost-of-Living Adjustment (COLA) Information * Retirement Earnings Test Calculator * How Work Affects Your Benefits (PDF)

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Are you receiving the maximum financial benefit from your charitable donations? Are you giving your hard-earned money to the IRS when you could be giving it to charities you’re passionate about? The answer to either question could be burning a hole in your wallet. That’s why it’s important to familiarize yourself with donor-advised funds (DAFs)! Join me as I give an overview of this generosity-focused investment account to help you manage your wealth while making a difference.

You will want to hear this episode if you are interested in... * Charitable giving stats you should be aware of [1:19] * What is a donor advised fund? [2:31] * How do donor advised funds work? [6:45] * Making a donor advised fund work for you [9:39]

Understanding donor advised funds Typically, donating to charity is a one-to-one interaction where the donor needs to know which charity they are giving to and the exact amount at the time of the gift. While that is certainly one way to be generous, it may not be the best way. Using a donor-advised fund could be a game-changer for your wealth management. Donating to this type of investment account allows you to designate cash or securities for charitable use at a later date while receiving an immediate tax benefit. Here are the top three donor-advised fund providers:

• Fidelity Charitable Fund
• Minimum fund donation: $5,000
• Minimum charitable contribution: $50

• Additional contributions: N/A

• Charles Schwab Charitable Fund

• Minimum fund donation: $5,000
• Minimum charitable contribution: $50

• Additional contributions: $500

• Vanguard Charitable Fund

• Minimum fund donation: $25,000
• Minimum charitable contribution: $500
• Additional contributions: $5,000

Make your donations work for you The 2021 tax year is a great opportunity to start using a donor-advised fund for your charitable contributions. Take advantage of the ability to deduct 100% of your adjusted gross income (AGI) in cash donations before that percentage drops to 60% in 2022. Another benefit of DAFs is the ability to deduct up to 30% of your AGI from donating publicly traded stock, real estate, limited partnership interests, private C-Corp stock and S-Corp stock, and other privately held assets.

When managed correctly, donor-advised funds will offset your tax costs while ensuring that money goes to your favorite 501-C3 charitable causes. It can also be a generosity-building activity for the whole family. Sitting down to decide which causes to donate to can become a yearly tradition that makes the world a better place, even after you’re gone. A donor-advised fund may not be the right solution for everyone, but it could help you leave behind a beautiful legacy while taking advantage of tax breaks right now.

Resources Mentioned * Best Charities for 2022 (WalletHub) * Is a Donor-Advised Fund Right for You? (Morningstar) * Charity Navigator

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Year End Tax Savings Opportunities for Dentists and Small Business Owners, with Dr Mark Costes, Part 2, #72

This week we are featuring part two of my conversation on the “Dentalpreneur Podcast” with Dr. Mark Costes. In our conversation, we finished discussing the 7 year end tax strategies for dentists. While this conversation is tailored to the dental industry, many other high-income earners can learn helpful tips that apply to their situation too. Have pen and paper ready, you don’t want to miss a minute of this informative episode!

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You will want to hear this episode if you are interested in... * Tax savings for end of year planning [2:00] * Maximizing your 401k and IRA options [4:00] * Tax credits for an electric vehicle [7:00] * Protecting your investments in the long term [9:00] * Common mistakes people make with investing [11:30] * Understanding a cash balance pension plan [16:00]

Tax credits can help Did you know that you can get a substantial tax credit from the federal government for purchasing an electric vehicle? It’s true! For many high-income earners like dentists, securing a tax credit from the federal government can be a huge benefit when it comes to the end-of-the-year tax bill.

Under the current rules, when you buy a new electric vehicle, you can claim up to $7,500 in credit against the federal income taxes you owe in the year in which you buy the car. In other words, it reduces your tax liability. If you’re eligible for a refund, you’ll get whatever the amount of your credit on top of that.

Tune into this episode as I expand on tax credits, electric vehicles, and so much more!

Common mistakes made Let’s face it, one of the best ways to learn is by avoiding the mistakes that others have made. Over the years I’ve noticed and documented the most common mistakes that people make when planning for retirement. By far, the most common mistake that people make is procrastinating. When it comes to investing, time is one of the most important factors - by procrastinating you are robbing yourself of a central element that you can’t get back! To learn more about avoiding mistakes like procrastination and making the right choices when it comes to your retirement, make sure to listen to this episode!

Resources Mentioned * The Millionaire Next Door

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Every year we have an opportunity to evaluate our current financial status and make changes that can benefit us when tax time rolls around. It’s that time of year again, so I thought I’d bring you some resources to help you make the needed changes that will benefit you.

The format in which I’m doing that is through a recent opportunity I had to be interviewed, on the “Dentalpreneur Podcast” with Dr. Mark Costes. He was asking me about the topic so I provided 7 year end tax strategies for dentists… but the principles apply on a personal or small business level as well. Let’s dive in!

You will want to hear this episode if you are interested in... * Potential new taxes due to Capital Gains increases [2:06] * Cryptocurrencies: Will they be taxed or regulated any time soon? [4:25] * Ways to reduce your income because of rising tax rates [5:22] * How Health Savings Accounts (HSAs) can help you pay less tax [6:45] * What happens to a HSA if you were to die? [10:56] * Understanding the term “deductible” when it comes to a HSA [12:12] * What is a 529 plan and how can it be used? [13:53]

Are long-term capital gains going up? There has been some talk of Congress raising long-term capital gains rates — to equal the highest Federal tax bracket of 35%. The good news at this date is that it doesn’t look like that’s going to happen. The maximum capital gains rate is probably going to land around 25%, and that will only be for those already in the highest Federal tax bracket. For those below that highest rate they will experience a 15% capital gains rate. Those in the bottom two tax brackets will experience 0% capital gains tax.

Should the rates go up — and we’re waiting to see if the current legislation goes into effect — it’s already too late to sell gaining stocks to avoid the higher rate. The law would be retroactive, going into effect as of September 13th, 2021.

If tax brackets change, how can you mitigate your tax liability? It’s likely that the existing U.S. tax brackets are changing. In summary, the tax rates will be going up and the income levels that fall into each bracket are going down. That means you may be paying a higher tax rate come next year. What can you do to decrease your income legally?

Health savings accounts are a great idea because the money you contribute to them can be deducted. You can contribute as much as $9200 for a married couple over 55, for example. The effect of that is a significant income reduction. And many people don’t realize HSAs are what is considered a “triple tax free” account. What does that mean?

1. You receive a tax deduction when you contribute to an HSA
2. The money you contribute grows tax-deferred
3. It is tax-free when you use it for health-related costs

To take full advantage of this account, you should invest those funds while they are in the account. Listen to find out how you can use these accounts to their maximum potential.

Resources Mentioned * How to make the most out of your health savings account (episode) * The Top Providers For HSA Accounts (episode) * What Happens to My HSA Account When I Die (episode)

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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What can you do to bring in some additional income into your household? What would it look like to start a new opportunity that works around your schedule? If you are looking for a way to get ahead financially or if you are just looking for a new career, this is the episode for you! For this episode, I’ve brought a special guest, Maria Kertez to help explore the topic of direct sales. After years of hearing about direct sales, Maria decided to take a closer look and was surprised by the results - she is here to share her story and explain how savvy investors like you can get involved. If you are new to the term, “Direct sales” you likely know it by another name.

Direct sales, “Network marketing,” or “Multi-level marketing” often refers to a variety of business forms premised on person-to-person selling in locations other than a retail establishment, such as social media platforms or the home of the salesperson or prospective customer.

Tune into this episode to hear more about Maria and her story, you don’t want to miss it!

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You will want to hear this episode if you are interested in... * Learning about network marketing from Maria Kertez [1:00] * Dispelling myths about network marketing - is it a pyramid scheme? [4:00] * How to make sure you aren’t getting scammed [7:15] * Work around your schedule [9:00] * What it costs to get started [14:00] * Why your mindset really matters [17:00] * Closing thoughts [20:00]

Direct sales or a pyramid scheme? Anything resembling a pyramid scheme freaks people out and rightfully so - pyramid schemes are illegal and unethical. Too often, direct sales and “Pyramid schemes” get lumped into the same conversation but there are important distinctions between the two.

Fraudulent pyramid schemes — like Ponzi schemes — are illegal but often try to disguise themselves as multi-level marketing (MLM) programs or direct sales. Traditional MLM programs are legal because there is a real product that is being sold through the channel.

Is it the right time for you to jump into a direct sales endeavor? What should you look for or be wary of? To hear more about protecting yourself as you move forward with direct sales, make sure to listen to this episode featuring Maria’s valuable advice!

Mindset matters! While it might sound cliche, the truth is, your mindset really matters! What is the biggest difference between someone who succeeds and someone who fails? More often than not it comes down to mindset. You have the power to write your own story and chart your own path, don’t let negative thoughts and narratives keep you from moving forward! Join me on this episode as Maria shares her story and the important role that mindset played in her growth.

Resources Mentioned * www.neora.com * https://mariakertesz.neora.com/ * https://www.instagram.com/_maria_kertesz_/

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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How should your Health Savings Account factor into your plans for retirement? Who should you list as a beneficiary for your HSA? Is it really worthwhile to use an HSA to protect your money? If you are worried about how to factor your HSA into your retirement plan, you’ve come to the right place! On this episode, you’ll hear me answer some important questions about Health Savings Accounts from a listener like you. If you’d like to ask a question, make sure to leave a comment and let me know - I’d love to hear from you!

You will want to hear this episode if you are interested in... * Options for your HSA when you die [1:00] * Who you can name as a beneficiary for your HSA [3:00] * Using a Trust to pass on your HSA [5:20] * Naming your estate your beneficiary [7:00] * Closing thoughts [8:30]

Why I love HSA’s If you’ve heard me speak on this topic before, you know that I love HSA’s. The main reason I love HSA’s is for their triple tax savings properties.

When you contribute money to your HSA, the funds are not taxed. This is similar to a traditional 401(k) or IRA. Additionally, HSA account holders can also grow the funds in their account through interest and, potentially, through investing - unlike other growth options, the increase in funds is not subject to taxes. Finally, funds spent from an HSA are not taxed as long as they are spent on qualified medical expenses. In other words, account holders can’t use their HSA funds to pay for a vacation or buy a new big-screen TV, but they can fund doctor's visits, dental and vision care, etc.

Join me on this episode as I expand on the benefits of using an HSA, who you should list as a beneficiary, and so much more. You don’t want to miss a minute of this informative episode!

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Is it a good idea to continue to stay in your home that you’ve paid off in retirement or does it make sense to sell and rent a smaller residence? Can renting end up saving you money in the long run? Join me on this episode as we dive into the world of homeownership and rental properties. We will discuss some critical aspects of this conversion and link to some helpful resources. Make sure you have pen and paper ready, you don’t want to miss a minute of this episode!

You will want to hear this episode if you are interested in... * Renting or owning your home in retirement [1:15] * Protecting yourself as a renter [4:00] * Why owning your home isn’t always the best investment [7:00] * How the tax code changes can impact your housing costs [12:00] * Closing thoughts [14:00]

Does it make sense to sell? If you have paid any attention to home prices in 2021, you know that the arrow is still pointing up and to the right. While various parts of the country have taken some time to catch up, the fact is, home values are up by large margins all over the country. Should you sell your home and net a profit like my friend down in Florida did when he sold his home for over $300,000 more than what he bought it for last year? Here are a few factors that savvy investors like you should keep in mind when considering selling your home as you approach retirement.

• Identify your goals. Are you planning to stay in the area long-term or do you want to be able to move around with ease?
• Who do you want to rely upon for repairs and maintenance? While it may be nice to not have to deal with those costs, you are also at the mercy of your landlord.
• Less stability when it comes to renting can give many people pause. Leases usually only last for a year or so.

According to The New York Times, close to 80 percent of people 65 years old and up own their own homes. On the other hand, one of the fastest-growing groups of renters is those in their retirement years. What path is the right one for you and your family? To hear me expand on these factors and so much more when it comes to housing in retirement, make sure to listen to this episode.

Resources mentioned * https://www.nytimes.com/2020/03/12/business/retirement-rent-buy-home.html * https://www.kiplinger.com/real-estate/mortgages/602858/should-you-rent-or-buy-your-next-home-in-retirement

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Elimination Of The Backdoor Roth IRA And Other Possible Tax Changes #67

Does all the talk in D.C. have you nervous about changes to the US Tax Code? What will the new President pass with his allies in Congress? Should you expect to pay more taxes in the coming years? How will this change impact your plans for retirement? Don’t worry, you’ve come to the right place to get the information you need! On this episode, we will cover some of the proposed changes to the tax code that is being discussed in Congress. Have pen and paper handy, you don’t want to miss a minute of this informative episode!

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You will want to hear this episode if you are interested in... * Retirement planning for new Connecticut teachers [0:50] * How the new tax plan will impact higher-income families and individuals [5:00] * Small business changes in the tax code [8:00] * What has changed for IRAs and ROTH IRAs [10:00] * Reduction in the estate tax exemption [12:00] * What the child tax credit is how it helps [15:00] * Closing thoughts [17:0a0]

Changes coming Let’s face it, most people don’t like change. The financial sector by and large doesn’t like change either - change is unpredictable and risky. Nevertheless, changes are coming to the United States Tax Code and it will likely be here before the end of the year. Should you fear the changes? Could the changes actually help? Last month, House Democrats proposed a slew of changes to retirement accounts for the wealthy on Monday, part of a restructuring of the tax code tied to a $3.5 trillion budget plan. Here is a brief list highlighting some of the changes they are considering in Washington.

• Limits on High Income Earner Contributions to IRAs
• Increase in Required Minimum Distributions with Large Account & High-Income Earners
• Roth Conversion Limitations for High-Income earners
• End of “Back-Door Roth” Conversions

If all these changes have you panicking, take a breath or two. First, you need to know that none of these changes are law yet so you have some time. Don’t let fear freeze you in your tracks, start planning! If you are looking for a good place to start, take a look around. There are a ton of resources here at your fingertips!

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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How do you feel about your retirement plans? Do you feel like you’ve explored and considered all the options available to you? If you are looking for helpful resources to get started on your journey toward retirement, you’ve come to the right place! Join me on this episode as I discuss an answer to another listener's submitted question - this week’s topic covers retirement planning for new Connecticut teachers. If you are interested in getting a question answered on one of my upcoming episodes, make sure to submit a question by clicking here!

You will want to hear this episode if you are interested in... * Retirement planning for new Connecticut teachers [0:50] * 403B providers [6:30] * Maxing out your retirement options [11:00] * Why you need a will and other legal documents as you plan for retirement [13:00] * Closing thoughts [15:30]

Retirement for teachers in Connecticut There are a ton of questions out there about retirement and how it works for those who are quickly approaching retirement and for those who are just laying the groundwork. To specifically address 403b accounts, I tackled a few questions about this topic a while back.

Listener, John asked about his wife who is a teacher in Connecticut schools but wanted to know if they could purchase credits for the time she worked as a preschool teaching assistant. Unfortunately, the information I found did not indicate that John’s wife could purchase these credits for that time served but could moving forward as a teacher in the Connecticut school system.

Following my episode regarding 403b accounts, I learned of another option available to educators that is worth considering, NEA (National Education Association) Direct Invest. NEA Members who feel confident enough and wish to make their own retirement planning decisions, there's an online way to invest in the NEA Retirement Program. DirectInvest offers a convenient way to invest through a secure Internet connection.

NEA Direct Invest is part of the overall NEA Retirement Program and is a voluntary retirement savings and investment program designed for educators.

To learn more about this topic and how to enter retirement with confidence, make sure to listen to this episode - you don’t want to miss it!

Resources mentioned * https://portal.ct.gov/TRB * https://www.nearetirementprogram.com/nea-directinvest * https://neafundperformance.com/ * https://portal.ct.gov/TRB/Content/Active-and-Inactive/Active-and-Inactive-Menu/Retirement-Information/Early-Retirement

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How are you feeling about the future of Social Security? Do you feel confident that the program will be there for you and your family as you enter retirement? Have you been reading rumblings about the program going broke in just a decade or so? If you want to know what is going on with the Social Security program, you’ve come to the right place! On this episode, we’ll take a look at the 2021 Social Security Trustees report and what it means for the future of the valuable public program.

You will want to hear this episode if you are interested in... * Understanding the Social Security Trustees 2021 report [0:50] * Some proposed solutions for “Fixing” Social Security [3:30] * Why the Social Security program needs to be addressed [7:30] * Closing thoughts [9:00]

The status of Social Security When you think of retirement, you think of social security - for many Americans, this is just a matter of fact. But can you really count on Social Security to be there when the time comes for you and your family? Recently, the SSA released an Annual Trustees Report for 2021- these reports provide estimates of the financial status of the program. From the report;

“Social Security and Medicare both face long-term financing shortfalls under currently scheduled benefits and financing. Both programs will experience cost growth substantially in excess of GDP growth through the mid-2030s due to rapid population aging….the data and projections presented include the Trustees' best estimates of the effects of the COVID-19 pandemic and the 2020 recession, which were not reflected in last year's reports. The finances of both programs have been significantly affected by the pandemic and the recession of 2020.”

While the report does strike a sober note, it doesn’t really tell us anything new. The program has been in need of a substantial fix for a long time, the impact of COVID-19 has only exasperated what was already present. Yes, there are some important things that need to be addressed when it comes to Social Security but I don’t think it is time to panic, there are some smart people with good solutions out there.

Join me on this episode as we expand on some other important findings in the annual report and so much more, you don’t want to miss it!

Resources mentioned * https://www.ssa.gov/OACT/solvency/provisions/ * https://www.aarp.org/politics-society/government-elections/info-2021/social-security-trust-funds.html * https://www.cnbc.com/2019/12/08/this-is-what-experts-really-want-to-see-happen-to-fix-social-security.html

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Is it a good idea to lease a car or finance the purchase of a car? Does this equation change when you factor in retirement? What are the drawbacks of leasing a car? If you’ve ever wondered if leasing a car is the right decision for you at this point in your life, you’ve come to the right place! On this episode, I am joined by my special guest and brother-in-law, David Fernandez. David has years of experience as an auto broker in the New York metropolitan area and he’s eager to share his valuable insights. Make sure to have pen and paper close by for this informative episode, you don’t want to miss it!

You will want to hear this episode if you are interested in... * Learning from my guest, David Fernandez [1:15] * Understanding how an auto broker works [3:00] * The advantages and disadvantages of leasing a vehicle [5:30] * How maintenance costs work when leasing a vehicle [11:00] * Costs that are owed post-lease [13:00] * How COVID-19 has impacted the automotive sales industry [19:00] * Closing thoughts [23:00]

What is an auto broker? We’ve all been on the lot of a car dealership - usually pressure-filled and stressful - what if there was an alternative? For those who are considering leasing a vehicle, connecting with an auto broker in your area might be a smart decision to make. As an auto broker, David has spent years helping hard-working people just like you get into the car that fits their needs.

According to David, auto brokers know the intricacies of dealerships, financing, and buying in a way that the typical car buyer most likely hasn't learned. Brokers have years or decades of experience in the industry, often on the other side of the desk. Auto Brokers buy in bulk and they leverage this ability to save clients in many cases THOUSANDS of dollars. Tune into this episode to hear more about working with an auto broker and so much more!

Leasing a vehicle Let’s face it, the idea of having really nice car that you don’t have to worry about when it comes to repairs and maintenance is a pipe dream for most people. The vast majority of people have become accustomed to the idea of purchasing or financing a vehicle - without really considering the other options available to them, namely, leasing a vehicle.

Here are a few of the benefits of leasing a vehicle;

• You drive the car during its most trouble-free years.
• You're always driving a late-model vehicle that's usually covered by the manufacturer's new-car warranty.
• The lease may even include free oil changes and other scheduled maintenance.
• You don't have to worry about fluctuations in the car's trade-in value or go through the hassle of selling it when it's time to move on.
• At the end you just drop off the car at the dealer.

Some common drawbacks of leasing a vehicle;

• In the end, leasing usually costs you more than an equivalent loan because you are paying for the car during the time when it most rapidly depreciates.
• If you lease one car after another, monthly payments go on forever.
• If you don’t maintain the vehicle in good condition, you’ll have to pay excess wear-and-tear charges when you turn it in.
• If you decide that you don’t like the car or if you can’t afford the payments, it might cost you.
• You need to bring back the car in “as it left the showroom” condition, minus usual wear and tear, and configured like it was when you leased it.
• You may have to pay a fee when you turn the vehicle in at the end of the lease.

If you are ready to learn more about leasing a vehicle with all the benefits and drawbacks considered then make sure to listen to this episode featuring David!

Resources mentioned * https://www.nobleautoleasing.com/ * https://instagram.com/drivewithdavid?utm_medium=copy_link * www.nobleautoleasing.com

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Have you considered purchasing an electric car? Have the cost savings and tax credits piqued your interest in the booming electric car industry? If you are interested in learning more about investing in electric cars, then this is the episode for you! Join me as I give you an overview of my research into electric cars and if they are really worth investing in. You’ll also want to make sure to check out the resources at the end of this post to continue your own research!

You will want to hear this episode if you are interested in... * Making a smart car decision [0:50] * Understanding how electric car tax credits [2:50] * Cars that qualify for the electric car tax credit [6:00] * Enjoying a lower car payment with leasing an electric car [8:00] * Fuel savings with an electric car [10:30] * Closing thoughts [14:30]

Electric car tax credits - are they worth it? If you’ve been looking into getting an electric car, you’ve likely heard of a federal tax credit that comes along with the purchase of most electric vehicles. In short, a buyer of a new electric car can receive a federal tax credit between $2500 and $7500. The specific amount of your tax credit is determined by the capacity of the battery and the size of the vehicle. The expiration of this federal tax credit only comes when more than 200,000 electric cars from each manufacturer have been sold and used the credit - unfortunately - this rules out Tesla from consideration for tax credit purposes. To hear more about using the federal tax credit for electric vehicles to the fullest extent, make sure to listen to this episode!

Fuel savings from going electric When most people think of the financial benefit of switching to an electric vehicle, their minds usually go to one area right away, fuel savings. Let's face it, gasoline prices are something most people would love to no longer be subject to - they fluctuate often and there aren’t many alternatives! So what are the real-world cost savings of switching to electric? According to Consumer Reports, “...a typical EV owner who does most of their fueling at home can expect to save an average of $800 to $1,000 a year on fueling costs over an equivalent gasoline-powered car.”

Join me on this episode as we touch on the topics of electric-car tax credits, leasing an electric car, fuel savings, and so much more - you don’t want to miss it!

Resources mentioned * https://www.edmunds.com/fuel-economy/the-ins-and-outs-of-electric-vehicle-tax-credits.html * https://www.cnet.com/roadshow/news/ev-tax-credits-congress-tesla-elon-musk/ * https://www.motorbiscuit.com/how-much-does-it-cost-charge-tesla/

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Are you and your family prepared for the worst-case scenario? Are your home and vehicles properly covered with your insurance plans? If you have any doubt in your mind - this is the episode for you! Join me as I welcome back Matt Dzubin for the third and final week as our returning guest. In our conversation, Matt and I explore the topic of Umbrella Insurance and so much more!

Matt has over 20 years of experience in the insurance industry and currently works as a Sales Executive at Roland Dumont Agency in South Windsor, Connecticut. Pay close attention, Matt has some valuable insights that you don’t want to miss!

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You will want to hear this episode if you are interested in... * Paying the right amount of insurance for home and auto [1:10] * Understanding and avoiding higher insurance rates [4:30] * Umbrella insurance [6:00] * Closing thoughts [11:45]

Make it a habit Let’s face it, most people don’t enjoy having to go get the oil in their cars changed their annual trip to get their taxes done, or do many other important but mundane tasks. Responsible and wise individuals take these chores and make them habits. While you may never fully enjoy reviewing your insurance policy each year, the truth is, you should! Not only will it save you money, but it will keep you in the habit of paying attention to your finances. Make sure to tune in to this episode as Matt and I expand on this important topic and so much more!

Umbrella insurance If you’ve stayed on top of your insurance policies as they’ve changed over the years - what more can you do? Is there a way to fill the gaps between your insurance policies for home and auto? According to Matt, the best option for many savvy men and women is to consider using Umbrella Insurance.

Umbrella insurance is a type of personal liability insurance that can be crucial when you find yourself liable for a claim larger than your homeowner's insurance or auto insurance will cover. If you own a boat, umbrella insurance will also pick up where your watercraft's liability insurance leaves off. To learn more about protecting your hard-earned property, make sure to listen to this episode with Matt!

Resources mentioned * Matt’s email: Mdzubin[at]dumontagency.com * Matt’s phone: 860-933-0963

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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What should you be on the lookout for when it comes to car insurance as you approach retirement? Do you need to make changes to your coverage? Does it make sense to keep your children on your car insurance? My good friend and guest, Matt Dzubin was kind enough to join me for a second week as we explore the topic of car insurance during retirement and so much more.

Matt has over 20 years of experience in the insurance industry and currently works as a Sales Executive at Roland Dumont Agency in South Windsor, Connecticut. Pay close attention, Matt has some valuable insights that you don’t want to miss!

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You will want to hear this episode if you are interested in... * Re-evaluating your car insurance coverage in retirement [0:50] * Features and add-ons that you need to pay attention to [4:00] * How long should you have your children on your car insurance? [7:00] * Why you might need travel insurance [12:00] * Closing thoughts [18:00]

Car insurance during your retirement years As with many programs and policies you’ve managed over the years, it is a good idea to re-evaluate your car insurance as you approach retirement.

In general, what you need is proper coverage so you aren’t left in a financial bind if you end up in an accident. For each person and situation, the right coverage is going to change but if you haven’t evaluated your car insurance recently, make sure to take this opportunity to do so. Learn more about car insurance coverage and much more as Matt and I continue our conversation on this episode!

Travel insurance Is it a good idea to get travel insurance? You may not need travel insurance for inexpensive trips, but it can provide a sense of security when you prepay for pricey reservations, a big international trip, or travel during the COVID-era, which can be unpredictable.

According to Matt, when it comes to a more lengthy trip, yes you should get some time of travel insurance. When you’re considering travel insurance for an upcoming trip, you’ll be happy to know that some components of your trip may already be covered. For example, when you book a trip with your credit card, depending on the card you use, you may already receive trip cancellation and interruption coverage.

So when deciding on what level of coverage you need, check to see what you already get with your credit card. I’m speaking from personal experience here, you might already be covered, check it out! Learn more about travel insurance and how to make sure you are protected by listening to this informative episode with Matt.

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When was the last time you had someone review your insurance policy? Are you confident that you’d be covered for the full value of your property should a disaster strike? How concerned should you be about flood insurance? Here to address some common questions about homeowners insurance and much more is my good friend and guest, Matt Dzubin.

Matt has over 20 years of experience in the insurance industry and currently works as a Sales Executive at Roland Dumont Agency in South Windsor, Connecticut. Pay close attention, Matt has some valuable insights that you don’t want to miss!

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You will want to hear this episode if you are interested in... * Learning about property insurance [1:30] * Adjusting for inflation and making sure you are completely covered [4:00] * Understanding who needs flood insurance [7:00] * What is covered under most homeowners policies [10:45] * Closing thoughts [16:00]

Why you need a fresh review of your insurance policies It is a good idea for all homeowners to review their policy at least on an annual basis. While you might not make it an annual habit, don’t let your insurance policy go too long without getting a fresh set of eyes! Remember, your insurance policy dictates the type of coverage and benefits that you will receive if a loss or claim should happen.

Over the years, you’ve likely invested in your property and improved it in significant and meaningful ways. It would be almost impossible for many homeowners to try to build back from a disaster if they were only covered for the value of their home at the time they set up their insurance policy! Don’t let that disaster scenario happen to you - tune into this episode to learn more about getting the right homeowner's insurance policy.

Do you really need flood insurance? More than 1 million homes and businesses in Louisiana and Mississippi — including all of New Orleans — were left without power as hurricane Ida, one of the most powerful hurricanes ever to hit the U.S. mainland, pushed through on Sunday, August 29th, 2021.

With this massive weather event occupying the headlines, many people around the county find themselves wondering if they need flood insurance where they live. Has that thought crossed your mind? Do you live in an area that deals with occasional flooding?

The National Flood Insurance Program (NFIP) is managed by the Federal Emergency Management Agency and is delivered to the public by a network of approximately 60 insurance companies and the NFIP Direct.

Flood insurance is available to anyone living in one of the 23,000 participating NFIP communities. Homes and businesses in high-risk flood areas with mortgages from government-backed lenders are required to have flood insurance.

To hear Matt expand on the topic of flood insurance and so much more, make sure to listen to this episode!

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Do you find yourself worrying about the stock market and how the events of the day will impact your investments? Are you looking for an alternative to investing your retirement money in the stock market? If you are someone who is more comfortable with playing it safe and taking a more conservative approach to investing, then this episode is for you! Join me as we dive into the topic of longevity annuities and if they are the right investment - you don’t want to miss it!

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You will want to hear this episode if you are interested in... * Understanding what a longevity annuity is [1:15] * How to generate retirement income [3:45] * The benefits of a longevity annuity [6:30] * Closing thoughts [10:00]

Longevity Annuities Have you ever heard of a longevity annuity? Is it a good option for long-term investing? What are the benefits and the drawbacks?

For our purposes, we will focus on a qualified longevity annuity contract (QLAC). This is a type of deferred annuity funded with an investment from a qualified retirement plan or an individual retirement account (IRA).

A QLAC annuity provides guaranteed monthly payments until death and is shielded from downturns in the stock market. As long as the annuity complies with Internal Revenue Service (IRS) requirements, it is exempt from the required minimum distribution (RMD) rules until payouts begin after the specified annuity starting date.

If you are more concerned with keeping a conservative investment portfolio and you need the security of a monthly payment coming to you in retirement, then you should consider a longevity annuity. To hear more about this critical topic and what it can mean for you and your investments, make sure to listen to this episode.

Find what works for you If you’ve taken the time to learn about longevity annuities and you find that this option is not right for you, that’s great! Part of discovering what you need in your retirement portfolio is identifying the options out there that won’t work for you. Now that you’ve crossed this one off of your list, what is next to investigate? Have you turned over every rock? To find strategies and solutions that work for you and your investment needs, I hope you’ll continue to join me each week!

Resources Mentioned on This Episode A Retirement Income Planning Strategy That Works, Ep #2

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Is it a good idea to keep your money for retirement in a CD? What about investing in the stock market? How should you invest your retirement money? If you are wondering if a fixed indexed annuity is the right investment for your retirement portfolio, you’ve come to the right! Join me for this episode as we dive into fixed indexed annuities - we’ll answer some common questions and cover some helpful tips, you don’t want to miss it.

You will want to hear this episode if you are interested in... * Are fixed indexed annuities any good? [1:30] * Understanding how “Point to point” fixed indexed annuities work [3:00] * How insurance companies make a profit from fixed indexed annuities [6:30] * Make sure you aren’t getting ripped off by your financial advisor [12:00] * Closing thoughts [16:00]

Fixed Indexed Annuities What is a fixed indexed annuity? Is it a good investment for you at this stage in your life?

An indexed annuity has characteristics of both fixed and variable annuities. Income payments for indexed annuities are tied to a stock index. You’re guaranteed to receive at least 87.5% of your principal back, plus 1 to 3% interest. Annuities are contracts between purchasers and insurance companies. In most cases, the annuity buyer is purchasing a steady income stream to fund retirement.

You need to know that fixed annuities are not going to be for everyone. If you want to get a really good return on your investment, you need to be prepared to let your money stay in a fixed indexed annuity for at least five years. Make sure to tune in to this episode as I expand on fixed indexed annuities and so much more!

Follow the money! If you’ve been listening to my podcast for a while, you’ve probably heard me say that you need to make sure you understand how your financial advisor is getting paid. I want to stress this important lesson when it comes to indexed annuities as well - make sure you are following the money. How does the person advising you get paid? How does the insurance make money on the product they are selling you? If you can’t get a straight answer to these critical questions, then don’t walk, run away! Learn more about protecting your investments and planning for the future wisely by listening to this episode.

Resources Mentioned on This Episode * How to Avoid Being Ripped Off By Your Financial Advisor, Ep #10

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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On the fourth and final episode of our four-part real estate series, I’ve invited my friend and special guest, Bill Hawthorn.

Bill is the owner of Homes R Us LLC and he’s been hard at work for over 20 years helping new real estate investors get started and helping people who don’t qualify for a mortgage. Bill was kind enough to join me on this episode to share his decades of experience in real estate. Make sure to have pen and paper handy, you don’t want to miss a minute of this informative episode!

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You will want to hear this episode if you are interested in... * How Bill Hawthorn makes a profit from real estate [2:00] * What is an option agreement in real estate? [6:30] * Getting the word out [17:30] * Taking over a mortgage payment with a warranty deed of trust [19:00] * Bill’s winning formula for making a profit in real estate [22:00] * How Bill uses the owner financing process [23:45] * Why you should check out Bill’s website and podcast [26:00]

An option agreement in real estate Sure, you’ve heard about flipping houses and becoming a landlord but what if there was a way to have the best of both worlds? Most people have never heard of an option agreement, so how does it work and what are the advantages? According to Bill, using an option agreement is a good way to make a profit in real estate, he’s been using this method for years!

In short, a real estate purchase option is a contract on a specific piece of real estate that allows the buyer the exclusive right to purchase the property.

Once a buyer has an option to buy a property, the seller cannot sell the property to anyone else. The buyer pays for the option to make this real estate purchase. The option usually includes a predetermined purchase price and is valid for a specified term such as six months to a year. However, the buyer does not have to buy the property, whereas the seller is obligated to sell to the buyer within the terms of the contract. Options have to be bought at an agreed-upon price. If the buyer doesn’t buy within the time frame, the seller keeps the money used to buy the option.

To hear more about using an option agreement to make money in real estate, make sure to listen to this episode as Bill expands on this topic and so much more!

Bill’s preferred method for selling real estate Having options is great but what do the experts do? How can savvy men and women like you learn from Bill’s years of experience and hard work in real estate? Follow his footsteps! You don’t have to do everything like Bill does it but why try to reinvent the wheel? Bill’s preferred method for selling real estate is known as "Subject-To." Subject-to is a way of purchasing real estate where the real estate investor takes title to the property but the existing loan stays in the name of the seller. In other words, "Subject-To" the existing financing. The investor now controls the property and makes the mortgage payments on the seller's existing mortgage. Properties can be purchased using this method with little cash and no credit. Want to learn more from Bill and his innovative approach to real estate? Make sure to check out the links to his website and podcast in the resources section below!

Resources Mentioned on This Episode * https://offers.flippinghousesforrookies.com/?r_done=1 * http://flippinghousesforrookies.com/podcast/ * 1031 Exchange Rules To Defer Capital Gains Taxes #56 * 7 Things To Know About Investing In Rental Properties #55 * 6 Ways To Make Money From Real Estate #54

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Did you know that there are steps you can take to defer capital gains taxes on your rental property? If you own or are considering buying a rental property, you want to make the most of your investment. I’ve come up with some helpful tips that you can use to make sure you aren’t overpaying when it comes to your capital gains taxes. What are you waiting for? Grab your pen and paper, you don't want to miss a minute of this informative episode!

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You will want to hear this episode if you are interested in... * Understanding what a 1031 exchange is [1:18] * How depreciation works [6:00] * A “like-kind property” [7:30] * Avoid paying unnecessary taxes [12:00] * Ownership structures that can be used for a 1031 exchange [14:00] * Next steps you can take [18:00] * Closing thoughts [19:20]

Deferred taxes on a rental property? Sounds too good to be true! Using a tool in the IRS code called, a 1031 exchange, savvy men and women like you can enjoy deferred taxes on your rental property. In short, a 1031 exchange allows you to avoid paying capital gains taxes when you sell an investment property and reinvest the proceeds from the sale within certain time limits in a property or properties of like kind and equal or greater value. Is taking the plunge and going for a 1031 exchange the right step for you? If you are ready to dive into this complex topic with some helpful tips, you’ve come to the right place!

Where to start? If moving forward with a 1031 exchange is in your future, here are some steps you can take to get started on the right foot. If you haven’t already, make sure to connect with a good accountant who can help you with getting your finances in order for this new process. After speaking with your accountant, you’ll want to find a qualified intermediary - if you can’t find one, try looking for one in a state that was mentioned that has safeguards in place. Make sure to hire that intermediary BEFORE you sell your property so you can use the 1031 exchange. Finally, don’t forget about the two important dates when it comes to a 1031 exchange,

• 45-day rule - Within 45 days of the sale of your property, you must designate the replacement property in writing to the intermediary, specifying the property you want to acquire.
• 180-day rule - You must close on the new property within 180 days of the sale of the old.

To hear me expand on how to get started with a 1031 exchange and so much more when it comes to finances and retirement, make sure to listen to this episode!

Resources Mentioned on This Episode * https://www.irs.gov/pub/irs-news/fs-08-18.pdf * https://www.cpajournal.com/2016/10/01/selecting-a-qualified-intermediary-for-a-like-kind-exchange/ * https://www.irs.gov/pub/irs-pdf/f8824.pdf * https://www.millionacres.com/taxes/depreciation/real-estate-101-rental-property-depreciation-rules-all-investors-should-know/

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Have you been looking at the local real estate market lately? Are you ready to start thinking about purchasing a rental property as a part of your long-term investment strategy? What are the benefits and potential pitfalls that come with investing in a rental property? If you are ready to jump into what it takes to invest in real estate using rental properties, you’ve come to the right place! On this episode, I’ll cover some helpful tips that savvy professionals like you can use to make the most informed financial decisions when it comes to investing in rental properties. Make sure you have pen and paper handy, you don’t want to miss a minute of this informative episode!

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You will want to hear this episode if you are interested in... * Using rental properties wisley [1:10] * Make sure you do your due diligence before you buy [3:00] * Know your future return on the investment [4:45] * Leveraging your rental property for tax advantages [7:00] * Buying a rental property [9:30] * Finding the right rental property to get started [14:00] * Managing your rental property [17:00] * Should you buy a rental property? [19:00] * Closing thoughts [20:50]

Don’t just buy any house, buy the right one! If you are looking into buying a rental property, keep much of that same energy and caution that you had when you bought your first house! The last thing you want is to let your guard down when it comes to purchasing the right rental property - do your due diligence and don’t skimp! Should you really buy that house that just went up for sale next door? Is it really worth it to buy a rental property across state lines? If you want to get a good idea on some of the helpful parameters that you need to consider when purchasing a rental property - listen to this episode!

What is your target ROI? Many people turn to investing in a rental property because they heard it was a good idea or it just made the most sense to them. What is your goal? Have you thought about your end game when it comes to purchasing a rental property? How much will you need to rent it out for? What are your projected expenses? If you don’t have an investment plan BEFORE you purchase a property you likely won’t develop one before it's too late. If you want to make sure you are crossing all of your “t’s” and dotting all of your “i’s,” you are in luck! Learn from my experience of managing several rental properties over the years - I’ll point you in the right direction!

Resources Mentioned on This Episode * www.rentometer.com * 6 Ways To Make Money From Real Estate #54

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Are you interested in getting into the real estate market? What is the best way to dip your toe into this lucrative market? Do you need to have a lot of cash to get started or are there other options out there? If you think you are ready to start investing in real estate or you just want to get some more information, this is the episode for you! Join me as we explore six ways that savvy investors like you can use to start making money from the real estate market - you don’t want to miss it!

You will want to hear this episode if you are interested in... * Making money with publicly-traded REITs [1:30] * Privately traded REIT options [5:00] * Buying a rental property [7:15] * Renting out part of your home [10:30] * House flipping [12:15] * Using a real estate investment group [16:30] * Real estate crowdfunding platforms [19:00] * Closing thoughts [20:50]

REIT options both public and private Are you wary about sinking all of your money into a second house for investment purposes? What if there was a way to invest in real estate without worrying about renters, maintenance, and other common factors that people worry about? Many people are turning to real estate investment trusts (REIT) to get started in real estate investing.

A REIT is a company that owns, operates, or finances income-generating real estate. Modeled after mutual funds, REITs pool the capital of numerous investors. This makes it possible for individual investors to earn dividends from real estate investments—without having to buy, manage, or finance any properties themselves. Make sure to tune into this episode as I expand on how you can get started with investing in REITs!

Leveraging your residence for more income Of course, most people immediately think of buying a second property when they consider investing in real estate but what about leveraging your current property to bring in an income? There are two common ways people use their home to bring in additional income, renting out a room and sectioning off a portion of the house or property for rental use. If you want to get started when it comes to investing in real estate this is a relatively simple way to tip your toe into the real estate pool. Hear more about making the most out of your real estate investment opportunities by listening to this episode!

Resources Mentioned on This Episode * The 5 Step Portfolio Process #17 * Real Estate Select Sector SPDR (XLRE) * Income Property | HGTV

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Are you using all the investment options you have available through your workplace? Are your investments like a 403B managed by a reputable entity? If you want to make the most of your investments so you have plenty to rely on in retirement, you’ve come to the right place! On this episode, we’ll cover eight ways to not get schooled on your 403B account - this one is especially for educators and public servants in Connecticut. Have pen and paper handy - you don’t want to miss a minute of this informative episode!

You will want to hear this episode if you are interested in... * Making the most of your 403B account [1:20] * Starting your 403B account [3:50] * Changing your account management [8:00] * What investments can you make with a 403B? [13:50] * Closing thoughts [16:00]

What is a 403B account? I'm sure you’ve heard of a 401k - but do you know what a 403B is? A 403B account is a retirement account for certain employees of public schools and tax-exempt organizations. Participants in 403B accounts often include teachers, school administrators, professors, government employees, nurses, doctors, and librarians.

If you want to start your 403B account, you will do so through your employer. You’ll contribute to your 403B via payroll deductions. Next, you have to determine which provider you’ll use to manage the funds you are investing in. Make sure to pay close attention to your options when it comes to choosing a provider - just because you have a lot of options, it doesn’t mean they are all good quality choices. To hear more about 403B’s and how to make the best decision on investing your money, make sure to tune into this episode!

Stay informed! Over the years I’ve worked hard to keep my clients informed and up to date on what matters most regarding their investments. I don’t want to see hard-working men and women like you make simple mistakes that could be avoided. Take it from me, I’ve heard the stories and I’ve seen the pitfalls, there is a better way! If you want to keep your investments safe, stay informed! You don’t need to have all the answers, you just need to know where to turn. I am so glad that many of you have found a place where you can ask your questions and get helpful advice. If you have a question that you’d like to ask, make sure to leave a comment below! It would also be helpful if you take some time to leave the podcast a review on Itunes or wherever you listen to this podcast.

Resources Mentioned on This Episode * Which is Better: Roth IRA or Traditional IRA #25

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Do you find yourself struggling with your plans for retirement? What will your pension look like? How much supplemental savings will you need to enjoy the lifestyle you had always dreamed of? For years, it has been my passion to empower men and women like you to make the most informed choices you can when it comes to your retirement. This week, I decided to focus on the answer to another question asked by a member of our growing audience. On this episode, I’ll cover three things you need to know about purchasing service credit for Connecticut teachers. If you’d like me to address a topic you are interested in, make sure to leave a comment below!

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You will want to hear this episode if you are interested in... * What service credit is available [2:00] * The best time to purchase credits [5:00] * Make sure you are choosing the right option [9:00] * Closing thoughts [12:00]

What is service credit and who is it available to? In the state of Connecticut, teachers are a part of the Connecticut Teachers' Retirement System (CTRS). The system was established in 1917 and is the largest public retirement system in the state. CTRS uses a program based on credits, there are numerous types of service credit that may be purchased to increase an educator’s retirement benefit. Some are treated the same as actual Connecticut public school teaching service and some are considered as Non-Connecticut. Here is a list of PURCHASABLE SERVICE CREDIT where you will find a list of purchasable credit along with links to the corresponding form(s) required to document the credit.

You can purchase additional credited services before the time of retirement or at the time benefits commence. If an active employee dies after attaining eligibility to receive an immediate retirement benefit and has designated his/her spouse as his/her primary beneficiary, the surviving spouse can purchase additional credited service in accordance with the laws and regulations in effect at the time of the member’s death.

Don’t wait! Over the years, I’ve seen too many men and women who asked the right questions too late in the game. Don’t let that happen to you! Take full advantage of the resources available so you can get a jump start on your retirement. Even if retirement still feels like several miles away, it won’t hurt to do some of the leg work now so you can rest easy. What are you waiting for, grab pen and paper - you don’t want to miss a minute of this informative episode!

Resources Mentioned on This Episode * https://portal.ct.gov/TRB/Content/Active-and-Inactive/Active-and-Inactive-Menu/Purchase-Service-Credit * https://portal.ct.gov/TRB/Content/Active-and-Inactive/Active-and-Inactive-Menu/Purchase-Service-Credit/Additional-Service-Credit-Cost-Estimator * https://portal.ct.gov/-/media/TRB/Content/ActiveInactive/AI_VOLSUP20.pdf

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Do you understand how your employer's pension plan works? How many years do you have to wait to get your full retirement amount? Are there advantages to retiring later? Are they worth the wait? To help you get a better handle on your retirement and specifically what you need to know about the Connecticut Teachers Retirement Pension, I’ll be covering three things that you need to know before you retire as a CT public school teacher. This particular subject is near and dear to my heart, as many of you know I have family members who are educators in the state of Connecticut - I hope this helps you as much as it helps them as well!

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You will want to hear this episode if you are interested in... * Understanding the Connecticut Teachers Retirement Pension [1:45] * How benefits are calculated [4:00] * What it takes to qualify for early retirement [8:00] * How proratable retirement works [11:00] * What makes the most sense for you? [15:00] * Closing thoughts [20:20]

Connecticut’s Retirement Program for Teachers In the state of Connecticut, teachers are a part of the Connecticut Teachers' Retirement System (CTRS). The system was established in 1917 and is the largest public retirement system in the state. A teacher’s contributions and those made on their behalf by the state or school district do not determine the value of the pension at retirement. Contributions are invested in the market, and often managed by private equity and hedge funds, however - a teacher’s pension wealth is not derived from the returns on those investments. Instead, it is determined by a formula based on their years of experience and final salary. Additionally, it is important to note that the state assesses an educator’s final salary based on the average of their highest 3 years of salary.

At the end of the day, the value of the pension is derived from a formula. A teacher pension is calculated in Connecticut with the following formula. 2% Multiplier x Avg. 3 years of highest salary x Years of service.

Join me on this episode as I dive even further into this topic so you have the information you need to make the right decision - you don’t want to miss it!

What makes sense? Too often I see savvy men and women who are doing the best they can to make the right financial and retirement decisions only to miss critical data that could make all the difference. Not only do I want to give you the right information, but I also want you to check my work! Make sure to follow up on any of the topics discussed in today’s episode by visiting the links in the resources section at the end of this post - it is my hope that these resources will empower you as you take control of your future. As always, don’t hesitate to leave a comment and let me know if there is a topic that you’d like me to address!

Resources Mentioned on This Episode * https://portal.ct.gov/-/media/TRB/Content/ActiveInactive/AI_HANDBOOK.pdf * https://portal.ct.gov/TRB/Content/Active-and-Inactive/Active-and-Inactive-Menu/Retirement-Information/Payment-Plan-Options * https://portal.ct.gov/TRB * https://portal.ct.gov/TRB/Content/Active-and-Inactive/Active-and-Inactive-Menu/Retirement-Information/Estimate-Your-Benefit * https://forms.office.com/Pages/ResponsePage.aspx?id=-nyLEd2juUiwJjH_abtzi3KO9GYeqiNIh3YmimD1brlUNU9MVUJCRkdIVlJRNkNUSEhJOEJVQzYzUi4u

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What is your plan for retirement? Are you relying on a pension plan? What about auxiliary investment accounts? How does Medicare and Medicaid factor into your plans for the next stage of life? Don’t let these questions go unanswered for too long! Join me on this episode as we jump into some upcoming changes regarding the state of Connecticut and how their pensions work for state employees. You’ll want to pay close attention if you or someone you love is impacted by the changes in Connecticut. This particular question came to me from one of our listeners - if you have questions that you’d like to hear answered, make sure to reach out and leave a comment!

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You will want to hear this episode if you are interested in... * Understanding upcoming changes for CT State Employees Pensions [1:00] * Setting your budget for retirement. [4:00] * How your health insurance premiums are changing [8:00] * Are you eligible to retire? [10:00] * Closing thought [12:00]

Retire before CT Pension changes take effect? What is going on with the changes to the state of Connecticut’s pension plan for state employees? Should you retire ASAP or is it still beneficial to wait? To give you a little bit of context, here is the main issue.

An agreement made in 2017 with the State Employees Bargaining Agent Coalition (SEBAC) included many changes to state employee retirement benefits. Some of the changes

specifically affect benefits for those who retire on or after July 1, 2022, and could encourage many to retire before then. The biggest change is eliminating the minimum annual cost of living

adjustment (COLA) for pension benefits and delaying a retiree’s first COLA until 30 months after

retirement. The agreement also changed the health insurance premium share for retirees who are not covered by Medicare.

According to the Office of the State Comptroller, as of November 19, 2020, there were 13,066

state employees (full- and part-time) who are eligible for normal or early retirement before July 1, 2022. In the past, similar changes to retirement benefits have led to a surge in

retirements before the changes became effective. If this pattern reoccurs at a similar rate, the state can expect over 20% of eligible employees to retire between July 2021 and July 2022.

I know that this is a lot of information to think about and unpack - listen to this episode as I expand on this topic and so much more. Also - don’t miss the helpful links in the resources section!

Resources Mentioned on This Episode * Consumer Price Index (CPI-W) - Social Security * Properly Estimating Retirement Cash Flow #36 * A Retirement Income Planning Strategy That Works, Ep #2 * www.osc.ct.gov/empret/

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What happens if you are unsatisfied with the level of coverage and support you get with your current Medicare plan? Are you stuck in that plan forever? Are there benefits to exploring and switching to different Medicare plans? In this episode, you’ll hear from our returning guest, Danielle Kunkle Roberts as we complete our three-part interview covering the ins and outs of Medicare.

Danielle co-founded Boomer Benefits in 2005 in Fort Worth, TX. Boomer Benefits is an award-winning insurance agency for national insurance carriers such as Blue Cross Blue Shield, Aetna, Cigna, Mutual of Omaha, and many other A-rated carriers. Danielle and her team are licensed in 48 states. To help us better understand Medicare, Danielle has agreed to join me for a three-part interview as we dive into Medicare and explain how to get this massive government program to work for you.

You don’t want to miss a minute of this episode as Danielle is kind enough to share more from her perspective on what to do and what to avoid when it comes to Medicare and more!

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You will want to hear this episode if you are interested in... * Danielle joins me to discuss Medicare Open Enrollment [2:00] * Why some Medicare plans are no longer available [4:00] * Purchasing a supplemental plan [8:30] * Why HSAs are so helpful. [11:00] * Don’t wait before it’s too late! [13:00] * How Medigap is different in Connecticut [19:00] * Connecting with Danielle and her team [22:50] * Closing thoughts [25:00]

Understanding Medicare Open Enrollment Medicare open enrollment – also known as Medicare’s annual election period – runs from October 15 through December 7 each year. According to Danielle, during the Medicare open enrollment period you have the following options available to you:

• Switch from Original Medicare to Medicare Advantage (as long as you’re enrolled in both Medicare Part A and Part B, and you live in the Medicare Advantage plan’s service area).
• Switch from Medicare Advantage to Original Medicare (plus a Medicare Part D plan, and possibly a Medigap plan).
• Switch from one Medicare Advantage plan to another.
• Switch from one Medicare Part D prescription drug plan to another.
• Enroll in a Medicare Part D plan if you didn’t enroll when you were first eligible for Medicare. If you haven’t maintained other creditable coverage, a late-enrollment penalty may apply.

Unfortunately, the open enrollment period does not apply to Medigap plans. Also, it is important to note that if you didn’t enroll in Medicare when you were first eligible, you cannot use the fall open enrollment period to enroll. Instead, you’ll use the Medicare general enrollment period, which runs from January 1 to March 31.

Medicare’s general enrollment period is for people who didn’t sign up for Medicare Part B when they were first eligible, and who don’t have access to a Medicare Part B special enrollment period. It’s also for people who have to pay a premium for Medicare Part A and didn’t enroll in Part A when they were first eligible.

If you enroll during the general enrollment period, your coverage will take effect July 1.

Make sure to listen to this episode as Danielle expands on the topic of Medicare open enrollment and so much more!

Resources Mentioned on This Episode * https://boomerbenefits.com/ * https://www.facebook.com/groups/BoomerBenefits/ * https://boomerbenefits.com/medicare-for-fehb-va-tricare-webinar/ * www.medicare.gov * https://www.amazon.com/Costly-Medicare-Mistakes-Cant-Afford-ebook/dp/B08GL4FSWC * Medicare Easy Pay

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Have you thought about which Medicare plan is best for you? What are you waiting for? Don’t wait until the last minute to understand your options! Here to help us navigate the complexities of Medicare is our returning guest, Danielle Kunkle Roberts.

Danielle co-founded Boomer Benefits in 2005 in Fort Worth, TX. Boomer Benefits is an award-winning insurance agency for national insurance carriers such as Blue Cross Blue Shield, Aetna, Cigna, Mutual of Omaha, and many other A-rated carriers. Danielle and her team are licensed in 48 states. To help us better understand Medicare, Danielle has agreed to join me for a three-part interview as we dive into Medicare and explain how to get this massive government program to work for you.

From explaining how the Zero cost Medicare programs work to breaking down the differences between Medigap Insurance and Medicare Advantage, Danielle has you covered. Make sure to have pen and paper handy for this informative episode, you don’t want to miss it!

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You will want to hear this episode if you are interested in... * Danielle joins me to discuss Medigap Insurance and Medicare Advantage [0:50] * How retiree health insurance can help cover costs [4:00] * Medigap Insurance vs. Medicare Advantage [6:00] * Navigating the 10 different Medigap plans [10:30] * How to avoid getting confused by the different rates for the same plans [13:45] * Finding the right carrier for your needs [16:00] * ZERO cost Medicare plans? Are they worth it? [18:00] * How to get Dental and Vision coverage [22:00] * Closing thoughts and how to get a FREE copy of Danielle’s book [24:30]

Medigap Insurance vs. Medicare Advantage As we have covered before, Medicare (Part A and Part B) covers most healthcare expenses but it doesn’t cover everything. Even with covered health-cares services, consumers like you are still responsible for a number of copayments and deductibles, which can easily add up.

This is where Medigap Insurance and Medicare Advantage come in.

To avoid these out-of-pocket costs, many people with Medicare enroll in two types of plans to cover these gaps in coverage. There are two options commonly used to replace or supplement Medicare Parts A and B.

1. Medicare Advantage plans. Medicare Advantage plans are an alternative to Medicare Parts A and B. If you enroll in a Medicare Advantage plan, you’re still in the Medicare program. However, you’ll get your Medicare benefits through your Medicare Advantage plan, instead of through the federally administered program.
2. Medicare Supplement (or Medigap) insurance plans. Medigap is a type of health insurance that offers additional coverage for normal Medicare plans. It helps fill in the “gaps” in normal Medicare coverage by helping you pay for out-of-pocket costs.

To hear Danielle expand on the difference between these two options and what savvy consumers like you can do to make the best possible choice, make sure to listen to this episode!

Don’t forget to check out the links below to dig deeper into this topic and learn more from Danielle. Her book is another fantastic resource that belongs on your shelf get your FREE copy today!

Resources Mentioned on This Episode * https://boomerbenefits.com/ * https://www.facebook.com/groups/BoomerBenefits/ * https://boomerbenefits.com/medicare-for-fehb-va-tricare-webinar/ * www.medicare.gov * https://www.amazon.com/Costly-Medicare-Mistakes-Cant-Afford-ebook/dp/B08GL4FSWC * Medicare Easy Pay

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Do you know when you should sign up for Medicare? Will your prescription drugs be covered by Medicare or do you need to start looking into alternative options? If you are confused and overwhelmed by Medicare and all the complexity that surrounds the government program, you aren’t alone! After talking with many of her clients over the years, Danielle Kunkle Roberts discovered there was no easy solution to navigating Medicare so she decided to create one!

Danielle co-founded Boomer Benefits in 2005 in Fort Worth, TX. Boomer Benefits is an award-winning insurance agency for national insurance carriers such as Blue Cross Blue Shield, Aetna, Cigna, Mutual of Omaha, and many other A-rated carriers. Danielle and her team are licensed in 48 states. To help us better understand Medicare, Danielle has agreed to join me for a three-part interview as we dive into Medicare and explain how to get this massive government program to work for you.

Have pen and paper ready, you don’t want to miss a minute of this fascinating episode featuring Danielle’s unique perspective!

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You will want to hear this episode if you are interested in... * Reviewing the basics of Medicare [1:30] * Why working with a broker can be helpful [4:00] * Understanding how Medicare works [7:00] * When to sign up for Medicare [10:00] * Understanding the cost of Medicare part B [12:30] * What is Medicare Easy Pay? [15:00] * Using a program like COBRA [16:30] * How Medicare covers prescription drugs [19:30] * Closing thoughts and how to get a FREE copy of Danielle’s book [23:00]

Medicare basics What is Medicare and who is qualified to use it? At the end of the day, simply put, Medicare is a national health insurance program in the United States that started in 1965 under the Social Security Administration (SSA) and now administered by the Centers for Medicare and Medicaid Services (CMS). Medicare primarily provides health insurance for Americans aged 65 and older, but also for some younger people with disability status as determined by the SSA, and people with end-stage renal disease and amyotrophic lateral sclerosis. Do you feel like you have the information you need to navigate Medicare? If you’d like some additional information that will help you get headed in the right direction, make sure to listen to this episode with Danielle Roberts.

Why working with a broker can help You try to do your best to keep up with your investments and adopt the most successful personal finance habits possible but let’s face it, we all get overwhelmed from time to time. Where do you turn to when you get overwhelmed with your finances? What if there was a way to get at least one aspect of your financial portfolio under control and in the hands of trusted professionals?

Danielle and her team at Boomer Benefits are in the business of helping people understand Medicare, in simple, plain terms that everyone can understand. It’s their belief that you first need to understand Medicare itself. You can’t understand your supplement options until you first get a handle on basic Medicare benefits. Fortunately, they’ve mastered how to make it simple. Learn more from Danielle and her easy-to-understand approach to Medicare and so much more by listening to this informative episode!

Resources Mentioned on This Episode * https://boomerbenefits.com/ * https://www.facebook.com/groups/BoomerBenefits/ * https://boomerbenefits.com/medicare-for-fehb-va-tricare-webinar/ * www.medicare.gov * https://www.amazon.com/Costly-Medicare-Mistakes-Cant-Afford-ebook/dp/B08GL4FSWC * Medicare Easy Pay

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Do you know what is going on with your digital assets? How would you know if someone used your email address to get access to your credit card information? If you don’t have an answer to that question, you’ve come to the right place! On this episode, you’ll hear from my returning guest, Devin Kropp as we continue with part two of our conversation about how to protect your money from hackers. You can click here to catch part one of our conversation.

For Devin, the topic of hacking and identity theft is personal, she first experienced the shock associated with identity theft as an 11-year-old in 2002. Just before Christmas, hackers stole her father's debit card information and sold it to a thief in Spain, who drained several thousand dollars from the account.

As a millennial, Devin is a digital native. She started computer classes in elementary school, received her first PC in the fifth grade, and participated in one of the nation's first e-learning experiments equipping students with laptops. Devin is a graduate of Binghamton University (SUNY) where she studied English and journalism, and played wing and scrum-half for the Women's Rugby Club. She joined Horsesmouth in 2013 as an associate editor. Devin lives in Manhattan.

Make sure to have pen and paper handy, you are going to need them as Devin shares some valuable insights that you don’t want to miss!

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You will want to hear this episode if you are interested in... * Why you need to know what is going on with your finances [1:30] * How hacks and data breaches impact everyday people. [3:00] * Why texts and email alerts are so helpful [5:00] * Identify theft and dealing with its aftermath [9:00] * Protecting your children’s credit. [11:00] * Using a credit monitoring service. [14:00] * Protecting yourself by fighting your impulses [16:30] * How to avoid getting blackmailed with your own data [19:00] * Closing thoughts [21:00]

Take ownership of your cybersecurity If you’ve been following me for very long, you know that I am all about informing and empowering people like you to make the right financial decisions based on the data available. Too often people get overwhelmed about the complexities of personal finance so they’d rather keep it at an arm's length away, often to their own detriment. According to Devin, many people have a similar attitude when it comes to their cybersecurity. Don’t look for a silver bullet - it doesn’t exist! There are a ton of helpful tools and tips that will get you headed in the right direction but at the end of the day, you have to take ownership of your cybersecurity. To hear Devin and continue our conversation on this critical topic, make sure to listen to this episode!

Freezing your credit Did you know that you can actually “Freeze” your credit? It’s true! A credit freeze is a free tool you can use to help protect yourself from credit fraud resulting from identity theft. A credit freeze blocks most companies from accessing your credit report until you lift it, or "thaw" your credit.

When you freeze your credit reports, it makes it harder for criminals who may have stolen your personal credentials (account numbers, passwords, Social Security number, and the like) to commit credit fraud by taking out loans or credit cards in your name.

While some may think of this step as extreme, the truth is, it is a proactive rather than a reactive approach. Join Devin and me as we expand on this topic and so much more!

Resources Mentioned on This Episode * Book: Hack-Proof Your Life Now - https://www.amazon.com/gp/product/B01LXP4Q7O/ref=dbs_a_def_rwt_hsch_vapi_tkin_p1_i0 * Devin Kropp - Associate Editor - Horsesmouth | LinkedIn - https://www.linkedin.com/in/devin-kropp-50040238/

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You are accustomed to hearing me talk about investing your money and making smart decisions with your finances but today is going to be a little different - we will be talking about protecting yourself from hackers. Do you have a safe and secure approach when it comes to your passwords and digital assets? How easy would it be for someone to hack your information?

Here to share some helpful insights and specifically, three ways to protect your money and digital assets from hackers is my guest, Devin Kropp.

Devin first experienced the shock associated with identity theft as an 11-year-old in 2002. Just before Christmas, hackers stole her father's debit card information and sold it to a thief in Spain, who drained several thousand dollars from the account.

As a millennial, she's a digital native. She started computer classes in elementary school, received her first PC in the fifth grade, and participated in one of the nation's first e-learning experiments equipping students with laptops. Devin is a graduate of Binghamton University (SUNY) where she studied English and journalism, and played wing and scrum-half for the Women's Rugby Club. She joined Horsesmouth in 2013 as an associate editor. Devin lives in Manhattan.

I can’t wait for you to hear from Devin’s fascinating insights - you don’t want to miss it!

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You will want to hear this episode if you are interested in... * Cybersecurity dangers and solutions with Devin Kropp [1:15] * How one man hacked his friend’s bank account with information found online [4:00] * Securing your password from hackers [6:15] * An identity theft horror story with Gmail [9:00] * Two-factor authentication [11:00] * The value of using a password manager [13:00] * Is free public Wi-Fi secure? What about a VPN? [15:00]

Be smart with your passwords Is your password safe? Unfortunately, too many people assume that no one would be able to guess their password when in reality, they are using a common one that is easy to guess. According to NordPass, the top five most common passwords in 2020 were:

1. 123456
2. 123456789
3. picture1
4. password
5. 12345678

If your password is on the list, it's probably time to make a change.

Try to avoid using dictionary words, predictable number combinations, or strings of adjacent keyboard combinations. And this should go without saying -- but under no circumstances should you use a password-based on any personal details like your phone number, birth date, or name. To hear more from Devin about passwords and additional steps you can take to protect yourself from hackers, make sure to listen to this episode.

Better safe than sorry If you are ready to really take control of your digital security, Devin suggests taking the next step and start using a password manager. There are a ton of helpful services out there that will help you manage your passwords for free or for a small fee - Devin also suggests opting for the paid version of these programs. While you are taking extra steps to safeguard your privacy, you should reconsider your faith in public Wi-Fi networks as they are often a hotbed for hackers. To hear Devin expand on VPNs, password managers, and so much more - tune into this episode!

Resources Mentioned on This Episode * Book: Hack-Proof Your Life Now! * Devin Kropp - Associate Editor - Horsesmouth | LinkedIn

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Is a 401K the only way to invest your money with the help of your employer? What if there was an easy way to invest your money and plan for your health care expense at the same time? All the way back in episode one, I discussed the value of using a health savings account or HSA.

In short, an HSA helps pay for out-of-pocket medical costs but is also a good retirement savings vehicle too. While it is true that investing in a 401(k) or other workplace-defined contribution plans is the best way to start saving for retirement, they are by no means the only option!

Join me on this episode as I share some helpful tips regarding health care savings accounts, who some of the top providers are, and much more. Don’t miss a minute of this informative episode!

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You will want to hear this episode if you are interested in... * What a health savings account (HSA) is and how it works [1:00] * The top HSA providers on the marketplace [4:00] * Breaking down the difference between providers for spenders & investors [6:00] * Why Fidelity is ranked as the best provider for investors [9:30] * Don’t miss this great opportunity to invest your money [11:00]

The top HSA providers on the marketplace Morningstar reviewed eleven HSA providers and created a helpful report that examines the benefits of using each one. That review covered Fidelity, Lively, Health Equity, the HSA Authority, Fifth Third, HSA Bank, Optum, Bend, Bank of America, Further, and Health Savings. They divided each of these providers into one of two categories, providers appropriate for spenders and providers that were appropriate for investors.

Those later in life will want to take more of a spender approach so you can start spending down the balance in your HSA. Those who want to invest are typically those who are younger and have fewer health care costs currently. Make sure to check out the link in the resources section to get access to the Morningstar report.

Don’t miss a great investment opportunity Where are you at when it comes to HSA options in your plan? Have you maxed out your investment options? If you don't have a health savings account and you qualify for one or maybe you just don't put very much into it - then you should really think about fully funding that up to the maximum amount possible. I also want to stress that an HSA is a great way to save money as it allows you a triple tax-free benefit. To learn more about HSA accounts and how to utilize them to their fullest potential, make sure to listen to this episode!

Resources Mentioned on This Episode * How To Make The Most of Your Health Savings Account Ep #1 * https://www.morningstar.com/lp/hsa-landscape

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Is there a difference between social security survivor benefits and spousal benefits? Should you wait until you have reached retirement age until you start drawing from your survivor benefits? If you find yourself lost in the weeds when it comes to navigating social security and all the ins and outs, you’ve come to the right place! An essential part of planning for your future is making sure that you have your finances covered so you don’t have to worry and stress about it when the time comes. I’ve spent time researching and studying social security, retirement strategies, and so much more so savvy business professionals like you can get the head start that they need. So what are you waiting for? Grab pen and paper and make sure to pay close attention to this informative episode!

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You will want to hear this episode if you are interested in... * Who gets a Social Security Survivor benefit? [1:20] * Why waiting to collect your benefits can be helpful [3:30] * Collecting a survivor benefit. [8:00] * How survivor benefits work with minor children involved [10:00] * Why survivor benefits are more helpful than spousal benefits. [13:00] * Closing thoughts [15:00]

Social Security Survivor benefits In the past, I’ve touched on social security spousal benefits (linked below) but I wanted to take some time to go through social security survivor benefits as they are a bit different. Did you know that more than 5.9 million people were receiving Social Security survivor benefits in May 2020? It’s true! These monthly payments typically go to the spouse, former spouse, or children of someone who was receiving or eligible for Social Security benefits.

Most of the time, social security survivor benefits are based on the amount the deceased was receiving from Social Security at their time of death (or was entitled to receive if he or she died before filing for benefits). You can apply by phone at 800-772-1213 or by visiting their website (linked below.)

About two-thirds of social security survivor recipients are widows and widowers. They can collect survivor benefits from age 60 (50 if they are disabled), at rates ranging from 71.5 percent to 100 percent of the late spouse’s Social Security benefit, depending on the survivor’s age. There is an exception if you are caring for a child of the deceased who is under 16 or disabled; in this case, there is no minimum age and the survivor benefit is 75 percent of the deceased’s Social Security payment.

Look before you leap When is the right time to jump in and collect your social security survivor benefits? Don’t assume you have all the right information before you take the plunge! For example, If you are already drawing Social Security on your work record, you will receive social security survivor benefits only if they exceed your own payment. Social Security will pay the higher of the two benefit amounts. Widowed spouses and former spouses who remarry before age 60 (50 if they are disabled) cannot collect survivor benefits. Eligibility resumes if the later marriage ends. There is no effect on eligibility if you remarry at 60 or older (50 or older if disabled).

Other than the remarriage issue and the age parameters for children, there is no time limit on survivor benefits — they are payable for life. I know that this is a lot to take in and a lot to plan for! I hope you have found the information you need to get started in the right direction. If you have any questions or if I can help in any way, make sure to chime in the comments section below - we’d also love to hear your feedback and reviews!

Resources Mentioned on This Episode * Collect Social Security Now or Wait? Ep #4 * How To Apply For Social Security Benefits #38 * Collecting Divorced Social Security Benefits #41 * Are You Eligible For A Social Security Spousal Benefit? #42 * www.ssa.gov

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Are you worried about what your financial situation will look like in your retirement years? Will your spouse who had a limited work history receive any Social Security benefits? If you are looking for answers to help you make the right financial decisions as you approach retirement, you’ve come to the right place! From spousal benefits eligibility to extra options for those born before 1954, I’ve done the research so you can have all the information you need in one place! Join me as we explore the options available for couples as they plan and prepare for a post-work phase of life, you don’t want to miss it!

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You will want to hear this episode if you are interested in... * Social Security benefits that are available for married individuals [0:50] * Spousal benefits eligibility [5:00] * You have to be proactive - Social Security won’t do it for you [8:00] * Additional options for those born before January 2nd, 1954 [10:15] * Closing thoughts [13:00]

Spousal Benefits You might assume that since either you or your spouse did not have a significant work history (30+ years) that you would not be eligible for spousal benefits through social security - not so fast!

When an individual files for retirement benefits, their spouse may be eligible for a benefit based on their earnings. Another requirement is that the spouse must be at least age 62 or have a qualifying child in her/his care. By a qualifying child, the Social Security Administration means a child who is under age 16 or who receives Social Security disability benefits.

The spousal benefit can be as much as half of the individual's "primary insurance amount," depending on the spouse's age at retirement. If the spouse begins receiving benefits before "normal (or full) retirement age," the spouse will receive a reduced benefit. However, if a spouse is caring for a qualifying child, the spousal benefit is not reduced.

If a spouse is eligible for a retirement benefit based on his or her own earnings, and if that benefit is higher than the spousal benefit, then the Social Security Administration pays the retirement benefit. Otherwise, they pay the spousal benefit.

To hear more about using social security benefits strategically as you approach retirement, make sure to listen to this episode - you can also check out the links to previous episodes that touch on similar topics located at the end of this post.

Resources Mentioned on This Episode * Episode #41 * www.ssa.gov

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As retirement age approaches for many couples, they will find themselves asking who should retire first and what benefits will they get access to? Have you had that discussion with your spouse? What options are available for those who are divorced? Many people are completely unaware that they can collect Social Security benefits from their spouse even if they are divorced! If you are planning on getting a head start on your retirement strategy - you’ve come to the right place! On this episode, you’ll hear as I explain how investors like you can make the best decision when it comes to accessing your Social Security benefits and so much more.

You will want to hear this episode if you are interested in... * Social Security options when you are divorced. [0:55] * Eligibility requirements [2:20] * Getting the most from Social Security [7:00] * Collecting your spousal benefits early [9:30] * Helpful examples [13:00] * Closing thoughts [15:00]

Options for those who are divorced If you are currently divorced and you are getting to the point where you are thinking about Social Security and you are approaching retirement, you have two options.

1. Collect Social Security benefits off of your own benefit.
2. Collect Social Security benefits off of your divorced spouse.

Your spousal benefit off of your divorced spouse is up to a maximum of 50% if you wait to collect this benefit when you reach your own full retirement age. Your full retirement age is based on your year of birth. If you are born in 1954 or earlier, your full retirement age is 66.

Eligibility requirements Who qualifies for spousal benefits through Social Security? Can you collect benefits from a former spouse from a marriage that lasted for a small amount of time like a year? To help men and women like you make the most informed decisions about your retirement, I’ve collected some helpful information regarding eligibility requirements.

• The marriage lasted 10 years or longer.
• The ex-spouse is unmarried.
• The ex-spouse is age 62 or older.
• The benefit that your ex-spouse is entitled to receive based on their own work is less than the benefit they would receive based on your work.
• You are entitled to Social Security retirement or disability benefits.

To hear me expand on this critical topic and how it can impact your planning as you head into retirement, make sure to tune into this episode, you don’t want to miss it!

Resources Mentioned on This Episode * Collect Social Security Now or Wait? Ep #4

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4 Things To Know Before Doing A 401K Rollover #40

Is it a good idea to rollover your 401K plan? What are the benefits and the drawbacks? Is it too late to rollover your 401K plan from a previous employer? If you want to make sure that your 401K investments are in a good direction, you’ve come to the right place!

Recently, I’ve seen a lot of advertisements about rolling over your 401K and I wanted to make sure that savvy investors like you have all the information you need to make the best decision. Join me on this episode as I go over some key information regarding 401K rollovers and what it will take to protect your investments. You’ll want to have pen and paper handy for this informative episode - don’t miss it!

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You will want to hear this episode if you are interested in... * What is a 401k rollover? [1:15] * Understanding your gains on the stock market [3:00] * Don’t pay too much on your 401K rollover! [4:45] * The danger of putting all your funds into one stock [8:15] * Do you want to continue contributing to your 401K plan? [12:00] * Closing thoughts. [13:30]

What is a 401K Rollover? A 401k rollover is a transfer of money from an old 401k to an individual retirement account (IRA) or another 401k. Typically the money must go into the new account within 60 days of coming out of the old 401k.

When employees leave a job that had a company retirement plan, it's customary to roll over the plan's 401k into a traditional IRA. This provides a great way to continue deferring taxes on the account's earnings until you retire and begin taking distributions.

Or it does, at least, for most of the plan's assets. But if your 401k includes publicly held stock in the company you're leaving, you shouldn't automatically roll these assets over to an IRA. It may make more sense to instead move the stock to a brokerage account and pay at least some tax on it immediately.

Don’t pay too much with a rollover! One of your primary jobs as an informed investor is to protect your money. Too often I see men and women with good intentions who fail to keep a close eye on their investments - I don’t want that to happen to you! When it comes to rolling over your 401k into a new investment vehicle, it is wise to do your research before you make the move. It is important to understand the benefits and limitations of all of your available rollover options with respect to your individual circumstances.

When considering a 401(k) rollover, remember that you don’t have to do it by yourself. Many firms offer rollover specialists who can handle the account setup and funds transfer details to help make the process easier. Learn more about 401k rollovers and what you need to do to protect your assets by listening to this episode.

Resources Mentioned on This Episode * Retirement Plan Options For Self Employed People #24 * Avoid Overpaying For Medicare In 2021 and Beyond #31

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Do you have your health insurance figured out for 2021? What are your plans for health insurance as you head into retirement? Health care has been a huge topic in the news especially with the impact that COVID-19 has had on our country and our world. With the recent passage of the American Rescue Plan, Congress has provided some helpful avenues for people to get better coverage when it comes to health insurance.

The American Rescue Plan is a $1.9 trillion coronavirus rescue package designed to facilitate the United States’ recovery from the devastating economic and health effects of the COVID-19 pandemic. The nearly $2 trillion price tag on this economic rescue legislation makes it one of the most expensive in U.S. history.

You don’t need to follow politics or understand all the ins and outs of legislation to get access to these new programs. Have a pen and paper ready as we dive into several new opportunities for health insurance that you can access before age 65 - you don’t want to miss a minute of this helpful episode!

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You will want to hear this episode if you are interested in... * How does the American Rescue Plan impact you? [1:30] * What is a premium tax credit? [2:45] * How to qualify for the Premium Silver Plan [7:45] * How COBRA can help people who are unemployed [9:45] * Forgiveness of excess tax payment [11:20]

The Premium Tax Credit Did you know that one of the best ways to save on health care costs is to secure a premium tax credit? While it sounds complex and confusing, a premium tax credit is just a refundable tax credit designed to help eligible individuals and families with low or moderate income afford health insurance purchased through the Exchange. The size of your premium tax credit is based on a sliding scale. Those who have a lower income get a larger credit to help cover the cost of their insurance. To learn more about the premium tax credit and how you can reduce your health care costs, make sure to listen to this episode.

COBRA Another significant way that many Americans use to pay for their health coverage is the COBRA program. Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events.

With the passage of the American Rescue Plan, there are new provisions that create a valuable benefit for employees who have lost healthcare coverage due to an involuntary termination or reduction in hours — up to 6 months of free COBRA coverage for the employee and his or her qualified beneficiaries.

Join me on this episode as I expand on COBRA and other helpful resources that people like you can use to get the access you need to critical health care insurance.

Resources Mentioned on This Episode * Health Insurance Coverage Before Age 65 #18 * www.healthcare.gov * www.accesshealthct.com

Connect With Morrissey Wealth Management * www.MorrisseyWealthManagement.com/contact

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Do you have the first idea of how to get started when it comes to applying for Social Security benefits? What documents do you need to have with you when you start the process of signing up for Social Security? Should you draw from your spouse's Social Security as soon as they pass? Let’s face it, Social Security is one of those government programs that everyone knows about but very few people actually understand how it works.

To help hardworking men and women like you cut through all the complexity, I wanted to spend some time breaking down exactly what it takes to apply for Social Security benefits. As we go through all the requirements and rules, you’ll want to have pen and paper ready. You don’t want to miss a minute of this helpful episode about Social Security and how to get started!

You will want to hear this episode if you are interested in... * Applying for Social Security - when to start [1:00] * How to start receiving funds from Social Security [4:00] * Can you still earn an income if you are drawing Social Security? [6:00] * Survivor benefits [9:30] * What you need to have when applying for Social Security [11:30] * Documents needed from survivors. [15:00] * What is the windfall elimination provision? [18:00] * Closing thoughts [19:15]

Is now the right time to apply for Social Security? Should you wait until you retire from your job before you apply for Social Security? Would it be beneficial to get the process started ahead of time? According to my research, applications for Social Security benefits can only be processed a maximum of four months before benefits are scheduled to begin. So the earliest you can apply is age 61 and eight months, and you can expect to receive your first payment five months later—the month after your birthday.

Receiving Social Security at age 62 (the earliest age you can receive benefits) means you will receive a reduced payment compared with waiting for full retirement age. For those born in 1960 or later, the reduction is 30%, and all reductions are permanent. If you delay taking your benefits past full retirement age, you receive an 8% increase for each full year you do so, up until you reach 70, at which point the increases stop. To hear more about figuring out the right time to retire based on your retirement strategy, make sure to listen to this episode!

What you need to get started While many people assume that the government will start sending you everything you need for Social Security once you hit that magical age of 62 - it couldn’t be farther from the truth. You need to make a plan and you need to be proactive, don’t wait until the time comes to get your ducks in a row!

Sometimes there are requests for documents, including original birth certificates, marriage licenses, and tax returns. Once you have completed your application and supplied all requested information, you are given a receipt for your records and a confirmation number you can use to check the status of your application online after submission. You can also follow up over the phone. Depending on your situation and what documentation may be required, your application may be approved within the same month you apply. To find the resources you need to get started, make sure to check out the links located at the end of this post.

Resources Mentioned on This Episode * www.ssa.gov * Social Security Phone Number: 1800-772-1213

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The day that no one wants to plan for is the day they will lose the person they love the most. We spend a lot of time planning and preparing for joining our lives together with our spouse but rarely do we devote the same amount of time and energy to plan for life after they are gone.

With COVID-19 leaving many people reeling with the loss of their spouse, parent, or primary caregiver, I wanted to provide a helpful resource so people like you can start planning and preparing before it's too late.

From death certificates and Social Security to joint accounts and selling your home, on this episode, you’ll hear some helpful tips that will get you started in the right direction when it comes to planning your future as a widow/widower. Have pen and paper handy, you’ll want to take notes and even share this one with some people in your life.

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You will want to hear this episode if you are interested in... * Why it is a good idea to pause financial decisions after your spouse passes away [2:00] * How to start preparing for your new financial future [4:30] * What do you do about Social Security? [6:00] * Understanding how access life insurance funds or a pension [10:00] * Dealing with joint accounts [13:00] * What is a required minimum distribution? [14:30] * Don’t forget about taxes and setting a new budget [17:00] * Update your beneficiaries and estate documents [19:00] * Is it time to downsize? [21:00] * Closing thoughts and resources [23:30]

Don’t make any quick financial decisions Losing someone you’ve joined your life with is unimaginable for many people. You assume that life will be fine and that you’ll handle anything that comes your way together. But what if one of the most challenging moments in your life comes when you lose that person you’ve depended on for so long?

Days, weeks, and months after the loss of a spouse can be some of the most sensitive and vulnerable times you ever face. The last thing you should be doing in such a vulnerable and turbulent time is making long-lasting financial decisions.

Just because you received a large life insurance payout or your home suddenly feels very empty, this doesn’t mean it is the right time to lend out money or sell your house. Those decisions can wait until you have a clear head and the grieving process has subsided.

Many experts recommend waiting between 6 - 12 months before you make any significant financial decisions after the loss of a spouse. My hope is that savvy investors like you will take this critical advice to heart and make sure you have a plan in place to avoid unnecessary financial decisions immediately following the loss of your spouse.

Re-organizing your life Avoiding any substantial financial decisions is a crucial first step but what comes after? How do you put the pieces together after you’ve lost someone who means so much to you?

Over the years, I’ve seen too many men and women who are reeling from the loss of their spouse and fail to take the necessary steps to re-organize their life. While the term “Reorganizing” sounds extreme, the truth is, you need to think broadly when it comes to planning for your future.

After some time, you’ll need to start contacting entities like life insurance and others to make sure you’ve updated your beneficiaries. Don’t forget to update your will, medical directives, and other documents to reflect the passing of your spouse. Making these simple changes can have a huge impact on your family when they deal with your passing down the line.

If you want to learn more about planning for your future as a widow or widower, make sure to listen to this episode and check out the resources listed below.

Resources Mentioned on This Episode * My Husband Died, Now What? * On Your Own

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Do you have any idea of much money you’ll need in order to enjoy your retirement? What about your monthly cash flow? Do you have enough saved to replace your current income from your job? If you don’t have a definitive answer to these questions, then this episode is for you!

Especially during a time of economic turmoil, it is prudent to re-evaluate your plans for retirement or get them started if you haven't already. While it might sound complex and challenging, the truth is, all you need to do is take a few steps in the right direction and before you know it, you’ll have a plan in place.

Join me on this episode as I break down some helpful tips that you can use to ensure you have a solid plan for retirement. You’ll want to have a pen and paper handy for this informative episode!

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You will want to hear this episode if you are interested in... * Having enough cash flow for retirement - what is the right number? [1:45] * Complete a cash flow worksheet [4:30] * Planning ahead for large expenses [7:00] * Reviewing your income sources [8:30] * Action steps you can take [11:30]

How much is enough? You may have heard the rule of thumb that goes like this, “In retirement, you are only going to need 80% of what you are spending pre-retirement if you have a mortgage” or that “You’ll only need 60% of your income pre-retirement if you don’t have a mortgage.” Does that sound right?

There are two approaches that I advocate for and that I share with all my clients when it comes to making sure you have enough money to retire.

1. Look at the number that you take home each month from your paycheck. What is leftover from that amount after you have paid all your expenses? If the number is large enough after your expenses, you are likely in a good position to consider retirement.
2. The second approach is to go to work on a cash flow worksheet. This exercise will help you see in black and what your fixed and variable costs are and how you can plan ahead with those factored in.

To hear more about both of these approaches and what you can do to make sure your family is prepared for a successful retirement, make sure to tune into this episode!

Plan for the worst At some point, most of us will find ourselves daydreaming about future travel, hobbies, or time we get to spend in retirement with friends and family. No one has a problem daydreaming and planning for the fun things but rarely do we have plans for the bad things that pop up in life!

Just like they do during your years in the workforce, challenging times will come in retirement too. What will you do when an unexpected financial situation arises in retirement? Will it send you scrambling or will you have a backup plan in place? I encourage savvy investors like you to not only plan for the fun aspects of retirement but to also plan for the unexpected that lurks around the corner - you can do both!

Resources Mentioned on This Episode * Episode #2: A retirement strategy that works

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How did your business fair when COVID-19 hit our nation last year? Were you able to adapt and pivot to make sure your business stayed solvent? How did the regulations impact your business? Hearing from frustrated business owners and leaders, the US federal government rolled out a program to help businesses during the pandemic impact. This program is called the Paycheck Protection Program (PPP). Round 1 of the PPP funding, which started in April 2020, ran out in a matter of weeks as a panicked business community quickly applied for loans. The second round, by contrast, finished the year with more than $100 billion leftover.

Today, I am joined by my guest, Brian Kerrigan. Brian is a Partner at the Hartford, Connecticut office of Whittlesey Advising. He has provided tax compliance and consulting services for large public and privately held companies throughout New England for more than 17 years. He is skilled in managing tax computations for larger corporations operating in federal and multi-state tax environments and has extensive experience with mergers and acquisitions of both private and publicly held companies.

In our conversation, you’ll hear as Brian explains how PPP funding works, what you can do to participate, how the loans can be forgiven, and so much more. I know that savvy business leaders like you will learn a lot from Brian’s helpful perspective - don’t miss it!

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You will want to hear this episode if you are interested in... * Brian Kerrigan joins me to explain how Round 2 of the PPP program works [1:20] * Are people still eligible for Round 1 of PPP? [4:00] * What you need to know about applying for Round 2 of PPP [9:00] * Can you get your PPP loan forgiven? [12:30] * Do you need to be worried about getting audited? [16:00] * Bryan goes over some additional programs to help businesses during COVID-19 [18:00] * Closing thoughts [20:00]

What you need to know about applying for Round 2 So you are ready to apply for Round 2 of PPP, what are your next steps? Can you apply for Round 2 in addition to Round 1? According to Brian, you need to start your application process through a bank or a Fintech company. Top Fintech companies are Chime, Tala, Pitchbook, Avant, Braintree, and Morningstar just to name a few.

A borrower is generally eligible for a Second Round PPP Loan if the borrower:

• Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses
• Has no more than 300 employees; and
• Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020

To hear more about PPP from Brian as he expands on this topic, tune into this episode!

How likely is an audit? When it comes to getting audited by the federal government, should business leaders who participate in PPP be worried? Is there added risk for audit when it comes to using PP? While you certainly want to make sure that you are doing everything above board, the chances are unlikely for you to get audited if your loan is under $2 million. That being said, the Small Business Administration (SBA) has reserved the right to also audit loans in any amount at any time, and will likely “spot check” loans in lower amounts. Learn more about this critical topic on this episode!

Resources Mentioned on This Episode * www.wadvising.com * Brian Kerrigan - Linkedin

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Are you ready to dive back into the world of 529 plans? I’m glad to have you back as we finish this two-part series examining how 529 plans work and what savvy investors like you can do to make the most of your finances. Last week, I walked you through what 529 plans are and how the one I’ve been using in Connecticut (CHET) works.

This week, we’ll look at rolling over a 529 plan, how to withdraw funds without a penalty, why 529 plans are a good tool for tax-deferred savings, and much more. Even if you feel like you’ve got this topic covered, I know there will be something you can learn from this episode - don’t miss it!

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You will want to hear this episode if you are interested in... * Using a different 529 plan with a rollover [1:45] * Challenges with age-based portfolios [5:00] * What does it look like to withdraw funds from a 529 plan for higher education? [8:20] * Can you use a 529 plan as a tax-deferred savings vehicle? [12:30] * Do you have to take funds out of your 529 plan before you die? [14:00] * Closing thoughts [16:00]

Can you roll over your 529 plan? So you’ve planned ahead and started investing in a 529 plan but you’ve lost confidence in how the fund is managed, what should you do? Is it possible to roll over a 529 plan to get better results? Yes!

Federal tax law allows you to roll over any or all of your 529 accounts from your current 529 plan to a different 529 plan, but only once in any 12-month period. (You can get around the 12-month restriction by naming a different family member as beneficiary of the 529 plan you are rolling into.) If you violate the 12-month rule, you must treat the transaction as a nonqualified distribution and pay federal tax and 10% penalty on accumulated earnings.

Have you thought about rolling over your 529 plan? What factors should you base this decision on? Make sure to tune in to this episode as I expand on this critical topic and so much more!

Withdrawing funds from your 529 The time has come to use that 529 plan you set up all those years ago for your child or grandchild - what happens next? When it comes to using your 529 funds, there are some important restrictions that you need to be aware of.

Funds from a 529 plan can be taken out tax-free to pay for qualified education expenses, which include costs required for the enrollment and attendance at in-state, out-of-state, public, and private colleges, universities, or other eligible post-secondary educational institutions. Qualified 529 plan expenses also include up to $10,000 per year in K-12 tuition expenses.

It’s up to the 529 plan account owner to calculate the amount of the tax-free distribution and how they want to receive the funds. Withdrawal requests can usually be made on the 529 plan’s website, by telephone, or by mail.

Tax-deferred savings Did you know that you can use a 529 plan as a tax-deferred savings vehicle? It’s true! No, you don’t have to do anything shady or illegal, you just need to be smart about it.

All 529 plans offer generous tax breaks, provided you use the money for qualified expenses. While your contribution is not deductible on your federal taxes, your investment will grow tax-deferred and withdrawals will not be subject to federal tax.

If you want to know more about how to use a 529 plan as a tax-deferred savings vehicle, make sure to listen to this episode!

Resources Mentioned on This Episode * Episode #33 * www.savingforcollege.com * www.aboutchet.com

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What plans have you put in place to make sure your kids or grandkids will have access to a quality higher education? Let’s face it, most people don’t think about this critical aspect of long-term investing until it’s too late! I don’t want to see smart and savvy financial planners like you get blindsided by this preventable scenario.

On this episode, you’ll hear part one of my two-part series where we will dive into the CHET plan and other 529 plans to explore how they work. I’ve always been a firm believer that the more information and understanding you have on a particular subject, the less intimidating and overwhelming it can be. I hope you pen and paper close by, you’ll want to take good notes on this episode - there’s no time like now to start planning for your future!

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You will want to hear this episode if you are interested in... * What is a CHET plan? [1:00] * How a 529 plan works [3:30] * The great value of getting started early (especially in Connecticut) [9:30] * How the CHET plan has recently changed [11:30] * 529 plans and analyzing risk [14:30] * Closing thoughts [17:00]

What is CHET? Many of you may have heard of 529 plans - in short, they are a tax-advantaged investment vehicle designed to encourage saving for the future higher education expenses of a designated beneficiary. Since I live here in Connecticut, I have been able to participate in the CHET program for my son. To help families save for college, the State of Connecticut offers the Connecticut Higher Education Trust (CHET), Connecticut’s 529 College Savings Plan.

Recently, State Treasurer Shawn T. Wooden, CHET plan trustee, selected Fidelity to be the new program and investment manager for the CHET plan because of the experience we can provide to help Connecticut families reach their college savings goals.

Tune into this episode as I share my experience with the CHET program and why I think it is a great idea to start investing in future higher education expenses as early as possible!

Making the right investment decision It has been an honor to serve many individuals and couples over the years who are just trying to do the right thing by investing in their child’s or their grandchild’s future with a 529 plan. Unfortunately, many people are unaware of how the plans work and what they should do to make sure their funds are doing what they are supposed to.

When it comes to 529 plans, each one is a bit different. With the CHET program, I am able to pick my risk tolerance and how much of my investments located in stocks and bonds. When planning for the long-term, you want to make sure that you are more risk-averse as you get closer to the time when you need to access the funds. Too many people just set their 529 plans and then forget about it - don’t let that happen to you! Join me on this episode as I explain how savvy investors like you can make the most of 529 plans like CHET and so much more!

Resources Mentioned on This Episode * Episode #14 * www.savingforcollege.com * www.aboutchet.com

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What does it take to put you and your family on the path toward financial success? Does it all come down to luck or happenstance? What role do hard work and personal work ethic play? While I don’t pretend to have all the answers, the truth is, you won’t go far if you don’t put your plans in place. I desire to see men and women like you get the financial tools and insights you need in order to not just survive but to thrive! Tune into this episode as I expand on some helpful tips that you can use to make sure you are on sound financial footing as you head into 2021 - don’t miss it!

You will want to hear this episode if you are interested in... * The value of visualizing what you want to achieve [1:45] * Setting specific goals - SMAC [5:00] * Put your plans in place - automate as much as possible [7:30] * Hold yourself accountable [9:45] * Closing thoughts [11:00]

Visualizing can make all the difference Have you ever visualized a goal before? What about writing your goals out on paper or making a vision board? You might be wondering, what does this have to do with financial success? Broadly speaking, visualization is all about generating a mental picture that helps you achieve your goals. The right visualization techniques can help you succeed—no matter what you’re aspiring to achieve. If a tool like visualizing can help you reach your financial goals, why not give it a try? Make sure to catch this episode as I expand on visualizing your goals and more helpful tips to achieve your New Year’s resolutions!

SMAC Taking the visualization step even further, I encourage people to use the SMAC method to set their goals. What is SMAC?

• S – Specific. Be specific about what you're planning to do. ...
• M – Measurable. Your goal must be measurable in a quantitative way, and this means attaching a number to it. ...
• A – Achievable. This is the trickiest one. ...
• C – Compatible or Challenging

Over the years, I have found it to be extremely helpful to use a system like SMAC to help me sort, identify, and articulate what I want to accomplish. I hope you find tools like SMAC helpful for your future planning too!

Action and accountability While it does take some serious willpower and determination to start dreaming of a new future - only action and accountability will get you to the finish line. Don’t make the common mistake of just setting really good goals and walking away - you’ve got to put your plans into action!

I recommend breaking down your goals into manageable steps - don’t bite off more than you can chew! Some have even found quarterly goals to be more helpful as they are short-term and help you achieve your long-term objectives.

After you’ve figured out your plan of attack, rope in a friend to help hold you to it. You won’t get where you want to be if you don’t have good people in your corner rooting for your success. To hear more about setting your goals and holding yourself accountable, make sure to listen to this informative episode!

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Do you know about the benefits that are available to you through Medicare when you retire? If you find yourself completely clueless when it comes to Medicare - you aren’t alone! Some many men and women are preparing for retirement and have no idea how to factor in their use of Medicare. I don’t want to see savvy people like you stuck without the right information or the right tools to succeed. On this episode, you’ll hear as I walk through some key tips that you can use to avoid overpaying for Medicare in 2021. Make sure to have pen and paper ready, you don’t want to miss a minute of this informative episode!

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You will want to hear this episode if you are interested in... * What Medicare premiums will cost you in retirement [1:20] * How to lower your Medicare premium by lowering your reported income [5:00] * When and why you can appeal your Medicare increase [9:00] * Closing thoughts [14:00]

What is Medicare and how does it work? For those who are still unsure what we are talking about - Medicare is a national health insurance program in the United States, created in 1966 under the Social Security Administration (SSA) and now administered by the Centers for Medicare and Medicaid Services (CMS).

Medicare primarily provides health insurance for Americans aged 65 and older, but also for some younger people with disability status as determined by the SSA.

The program helps with the cost of health care, but it does not cover all medical expenses or the cost of most long-term care. You have choices for how you get Medicare coverage. If you choose to have Original Medicare (Part A and Part B) coverage, you can buy a Medicare Supplement Insurance (Medigap) policy from a private insurance company.

Make sure you aren’t paying too much! I don’t know about you but it drives me crazy when I find out that I paid too much for something when I didn’t have to. I hate that feeling so much that I’ve worked hard to avoid it at all costs and I want you to avoid that feeling too! One of the best ways to make sure you aren’t paying too much for Medicare is by keeping an eye on your Medicare part B premiums.

With Medicare Part B, you pay a premium each month. Most people will pay the standard premium amount. If your modified adjusted gross income is above a certain amount, you may pay an Income Related Monthly Adjustment Amount (IRMAA). Medicare uses the modified adjusted gross income reported on your IRS tax return from 2 years ago. This is the most recent tax return information provided to Social Security by the IRS.

The standard Part B premium amount in 2021 is $148.50. Most people pay the standard Part B premium amount. If your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you'll pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra charge added to your premium.

You can avoid paying IRMAA by working with tax professionals to keep your adjusted gross income below the threshold set that year. You can also file an appeal due to a life-changing event. A major event can significantly decrease a person’s income and that can affect the premium he or she will pay for Medicare Part B, medical insurance.

Social Security recognizes the following life-changing events:

• marriage
• divorce or annulment
• death of a spouse
• work stoppage
• work reduction
• loss of income-producing property (beyond the beneficiary’s control), and
• loss or reduction of pension income (plan failure or termination, or scheduled cessation)
• employer settlement payment (as a result of an employer or former employer’s closure, bankruptcy, or reorganization)

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What are the rules when it comes to charitable giving? Are you able to donate property or stocks? How does your giving impact your tax filing? If you are trying to navigate the complexities of charitable contributions, you’ve come to the right place! As we move right on into 2021 - an exciting new year full of possibilities - it’s also the perfect time to check in on your charitable giving strategy.

You don’t have to have it all figured out to get started. On this episode, I’ll cover four ways that savvy investors like you can use to reduce your taxes with charitable contributions. Make sure you have pen and paper close by - you are going to need it!

You will want to hear this episode if you are interested in... * The best way to make charitable contributions for tax purposes [1:30] * How deducting a charitable gift works [3:00] * The parameters for donating cash [7:00] * Donating stock or property [10:00] * Tax benefits for small businesses [13:00] * What is a QCD? [15:30] * Closing thoughts [20:00]

4 Ways to Reduce Taxes with Charitable Giving As a society, we have determined that charitable giving is worth encouraging and supporting. Why not take advantage of tax rules that allow you to maximize your giving and reduce your tax costs? If you want to maximize your giving and make your money go further, here are four ways to reduce your taxes with charitable giving.

1. Donate and deduct up to $300 in cash contributions to a qualified charity per person.
2. Donate property like used furniture to a charity - you can deduct the market value.
3. Donate cash and/or property (that has appreciated) to a qualifying charity.
4. Donate your total adjusted gross income in cash so you can claim no income.

Make sure you keep a close eye on your tax return - your tax return needs to be itemized to qualify for many of these deductions. If you own your own business, it would also be wise to look into the qualified business income deduction (QBI). The QBI is a tax deduction that allows eligible self-employed and small-business owners to deduct up to 20% of their qualified business income on their taxes.

Making the most of your investments and your giving So there you have it, I hope you are able to get 2021 started in the right direction with your charitable giving. As we eagerly anticipate what this new year has in store for us, I’d like to invite you to join me as I continue to bring tips, insights, and lessons I’ve learned over the years in my role as a financial professional. Please make sure to subscribe and share any of these episodes that you find helpful - you never who will benefit!

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All good things must come to an end, and that is true of my conversation with Matthew Bartolini. It has been an honor to speak with Matthew over the last couple of weeks as we have explored the valuable insights he has been able to share drawing on his years of experience with State Street Bank. To conclude our conversation, Matthew was kind enough to open up about some of the more advanced elements of ETF and what wise investors like you can do to stay educated.

As a Managing Director at State Street Global Advisors and Head of SPDR Americas Research, Matthew is responsible for all product research and analysis of both SPDR ETFs and SSGA Funds. Matthew directs a team that develops proprietary research, marketing strategies, and campaigns across the firm’s ETF and mutual fund product suite.

Don’t leave too soon - you’ll want to pay close attention as Matthew really lays it out for us on this informative finale episode of our three-part interview!

You will want to hear this episode if you are interested in... * Matthew opens up about factor-based investing and expands on all five factors. [1:30] * What does “Alpha” and “Beta” mean when it comes to factor investing? [7:00] * Matthew explains how you can get exposure to certain investments via ETFs [9:30] * Understanding how leveraged ETFs work [11:00] * What is the status of the 60/40 portfolio? [14:45] * Closing thoughts [19:00]

Factor-based investing Have you ever heard of “Factor-based” investing? Which factors are the most important to look for - how do you know you are prioriti8zing the right factors? Thankfully, Matthew was able to sit down and unpack for us the five crucial factors when it comes to “Factor-based” investing. These come from Eugene Poma

1. Momentum
2. Value
3. Size
4. Quality
5. Low volatility.

According to Matthew, a common sixth factor that many people will include on this list is “Dividend yield.” Many investors are drawn to factor-based investing because it is rules-based, transparent, and commonly found within ETFs. If it seems like a bit of a “Best of both worlds” approach between passive and active - you are correct! Learn even more helpful tips and insights from Matthew and his years of experience by tuning into this episode - you don’t want to miss it!

Leveraged ETFs Are you interested in trying to get the most out of your ETF strategy? Have you heard of “Leveraged ETFs?” A leveraged ETF is a marketable security that uses financial derivatives and debt to amplify the returns of an underlying index. According to Matthew, the leveraged ETFs can be a challenge to navigate unless you really know what you are doing. While the appeal is strong, offering up to three times the return rate, the risk is very high. If you’d like to learn more about Leveraged ETFs and some helpful alternatives, listen to this episode as Matthew Bartolini brings his seasoned knowledge to help investors like you!

Connect With Matthew Bartolini * Matthew on Twitter - (@mattbartolini) | Twitter * Matthew on LinkedIn - Matthew Bartolini, CFA - Managing Director, Head of SPDR * Matthew Bartolini - State Street Global Advisors | Inside ETFs

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We are back with part two of our three-part interview with my special guest, Matthew Bartolini. Bringing his years of experience with State Street Bank, Matthew was kind enough to continue our conversation about ETFs, how they work, and what savvy investors like you can do to make the most of your financial assets.

As a Managing Director at State Street Global Advisors and Head of SPDR Americas Research, Matthew is responsible for all product research and analysis of both SPDR ETFs and SSGA Funds. Matthew directs a team that develops proprietary research, marketing strategies, and campaigns across the firm’s ETF and mutual fund product suite.

You’ll want to pay close attention to this episode as Matthew brings more of his helpful insights to help you make the best financial decision for your future - have pen and paper close by, you are going to need it!

You will want to hear this episode if you are interested in... * Matthew joins the podcast and continues our conversation on ETFs [1:30] * Why it’s important to understand the fees you are paying with ETFs [6:00] * Matthew brings up some good points about low or no-fee ETF management [9:30] * Make sure you have a benchmark you are trying to reach [12:00] * How State Street manages its ETFs [14:15] * Closing thoughts about the S&P [17:00]

ETFs and passive investing To better understand how ETFs work, I asked Matthew to drill down a bit into their primary focus and the value they bring to investors. According to Matthew, there are several advantages that ETFs have when it comes to passive investing.

• Lower costs and lower investment fees
• Rules-based investing
• Greater transparency - you know what you own when you own it
• Indexed-based vehicles have stronger historical performance
• More information leads to better due diligence

Make sure to tune in to this episode as Matthew expands on these valuable points to help you make the right decision for your financial future!

ETFs costs explained Do you know which fees you are paying when it comes to your mutual funds or ETF portfolios? Where do you look to find out? Are you getting a good deal on the fees and costs that you are currently paying? Thankfully, Matthew Bartolini has the experience and knowledge base to help us understand where to locate this critical information.

Matthew encourages investors to work with reputable brokers who will list their fees upfront and in an easily accessible way like they do at State Street Bank. He also mentioned that using resources like Morningstar can help savvy investors find the information they need. Essentially, if you have a difficult time locating the costs and fees associated with your ETF or mutual funds and your asset manager isn’t pointing in the right direction to locate those numbers, that should serve as a giant warning sign for you. Don’t forget to join us next week as we wrap up our three-part interview with Matthew Bartolini!

Connect With Matthew Bartolini * Matthew on Twitter - (@mattbartolini) | Twitter * Matthew on LinkedIn - Matthew Bartolini, CFA - Managing Director, Head of SPDR * Matthew Bartolini - State Street Global Advisors | Inside ETFs

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What a start to 2021! Most people were not expecting a crazy and eventful week like the last one we just had. Over the years, when things get challenging in life, I have found it helpful to focus on what I can control. While we may not be able to control what happens in Washington D.C., we can control what happens in many of the other areas in our personal and financial lives.

Here to help us welcome the New Year with a greater understanding of financial topics is my guest, Matthew Bartolini. As a Managing Director at State Street Global Advisors and Head of SPDR Americas Research, Matthew is responsible for all product research and analysis of both SPDR ETFs and SSGA Funds. Matthew directs a team that develops proprietary research, marketing strategies, and campaigns across the firm’s ETF and mutual fund product suite.

I am excited about this opportunity to learn from Matthew and all the wonderful insights he has to share, make sure to stick around, this is part one of a three-part conversation with Matthew Bartolini - you don’t want to miss it!

You will want to hear this episode if you are interested in... * Matthew joins the podcast [1:00] * What is State Street Bank? [2:30] * How ETFs were created. [4:30] * Understanding ETFs and how they are traded. [9:00] * The similarities and differences between mutual funds and ETFs. [13:30] * Closing thoughts from Matthew.[17:00]

What are EFTs? Have you ever heard of EFTs before? Chances are unless you’ve taken a financial course or two, you’ve never heard of it before.

An exchange-traded fund (ETF) is a basket of securities you buy or sell through a brokerage firm on a stock exchange. ETFs are offered on virtually every conceivable asset class from traditional investments to alternative assets like commodities or currencies. Many ETF structures allow investors to short markets, to gain leverage, and to avoid short-term capital gains taxes.

ETFs vs. mutual funds Why would someone invest in ETFs over investing in mutual funds? Are there any significant advantages or risks with one approach over the other? Right off the bat, ETFs have lower fees than mutual funds, this is a huge part of their appeal.

ETFs also offer tax advantages to investors. There's generally more turnover within a mutual fund compared to an ETF, which can result in capital gains. With all that said, ETFs are increasingly popular, but the number of available mutual funds still is higher.

Which option is the best for you and your financial future? Make sure to tune in to this episode with special guest, Matthew Bartolini to learn more!

Connect With Matthew Bartolini * Matthew on Twitter - (@mattbartolini) | Twitter * Matthew on LinkedIn - Matthew Bartolini, CFA - Managing Director, Head of SPDR * Matthew Bartolini - State Street Global Advisors | Inside ETFs

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www.MorrisseyWealthManagement.com/contact

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How do you decide which direction to invest your money? Do you flip a coin, do in-depth research, hire someone to do it for you, or something else? Over my years as a financial advisor, I’ve seen the range of people who come in with all types of methods and approaches when it comes to investing their money.

From my vantage point, I’ve been fortunate to observe some critical mistakes that men and women like you have made in their attempt to invest wisely. While I can’t make your financial decisions for you, I can give you the best information available so that you have the power to make the best decision for you and your family. I hope you pay close attention to this informative and in-depth episode that you can use to make the best financial investment decisions going forward - you don’t want to miss it!

You will want to hear this episode if you are interested in... * Setting the right investment expectations and goals. [1:00] * Make sure to diversify your investments! [3:00] * Why it’s a good idea to refrain from trading too much. [5:00] * Make sure to get good financial advice, not through the media. [8:00] * Don’t try to predict market trends. [10:30] * Conduct due diligence! [12:00] * Closing thoughts [15:00]

Investing mistakes to avoid Most people don’t realize it, but the truth is, you have the power to make wise financial investments. You don’t need to know all the in’s and out’s of the financial world to make smart decisions, a great way to start is by avoiding some common mistakes! I’ve spent many years meeting with men and women like you who are just looking for a way to make smart decisions for their future. Here is a brief rundown of several mistakes to avoid when it comes to financial investments.

• Set the right expectations, don’t set yourself up for early disappointment.
• Don’t put all of your eggs in one basket, make sure to diversify!
• Don’t take trading and into your own hands.
• Listen to experts not just the talking heads on TV.
• Don’t try to predict market trends.
• Make sure to do your research.

These are just a few of the mistakes to avoid and tips to follow when it comes to making financial decisions for your future. What mistake to avoid stands out to you? What would you add to the list? Make sure to join the conversation, I want to hear from you and where you are on your journey!

What are you waiting for? Seriously, what are waiting for? It’s never too early to start investing in your future! While investing may seem intimidating, I hope you will stick around and learn just how easy it can be to get your financial house in order. You don’t have to have a perfect plan in place to get started, you just need to get started. From resources and links to advice on tax changes and so much more, this is the space you want to watch in 2021 - make sure to subscribe, you don’t want to miss a single episode!

Resources Mentioned on This Episode * https://brokercheck.finra.org/ * https://adviserinfo.sec.gov/ * https://morrisseywealthmanagement.com/blog/2020/5/8/top-10-interview-questions-when-hiring-a-financial-advisor

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If you were a farmer preparing for their year ahead, would you rather pay the tax on the seed you plant or on the harvest of your yield from your labor? Most people will quickly look at this example and jump at the chance to pay tax on the seed rather than the whole harvest - is that really the best route to take? In many ways, this example works when it comes to comparing a Roth IRA and a Traditional IRA - while it might seem like a good idea to tax the smaller amount, it’s not always that black and white.

I know that the financial sector of the internet is full of confusing jargon and terms that only insiders really seem to understand. I don’t want hard-working men and women like you left to cobble a strategy together and figure out the best path to take all on your own. Tune into this episode as we dive into the details about Roth and Traditional IRA’s, you don’t want to miss a minute of this informative episode!

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You will want to hear this episode if you are interested in... * Which is better, Roth IRA or Traditional IRA. [1:00] * Comparing the two options. [3:30] * Using a “Backdoor” Roth IRA. [5:30] * How you can roll your IRA into a 401K. [8:30] * Qualifying contributions. [10:00] * Closing thoughts [12:00]

Roth IRA or Traditional IRA? What is a Traditional IRA? A traditional IRA is a way to save for retirement that gives you tax advantages. Contributions you make to a traditional IRA may be fully or partially deductible, depending on your filing status and income. If you’ve never heard the term Roth IRA, simply put, a Roth IRA is an IRA that, except as explained below, is subject to the rules that apply to a traditional IRA.

• You cannot deduct contributions to a Roth IRA.
• If you satisfy the requirements, qualified distributions are tax-free.
• You can make contributions to your Roth IRA after you reach age 70 ½.
• You can leave amounts in your Roth IRA as long as you live.
• The account or annuity must be designated as a Roth IRA when it is set up.
• The same combined contribution limit applies to all of your Roth and traditional IRAs.

Going back to our example of the farmer, when it comes to Roth and Traditional IRA’s, the Roth IRA is like paying taxes on the seed and the Traditional IRA is like paying taxes on the harvest. If we knew what future tax rates were going to be, it would be really easy to point you to the better option, the truth is, we don’t know what the future holds, you just have to decide which risk is worth it to you and your situation.

Resources Mentioned on This Episode * https://www.investopedia.com/how-to-set-up-a-backdoor-roth-ira-4584775 * https://www.tdameritrade.com/retirement-planning/ira-guide/roth-vs-traditional-ira.page

Connect With Morrissey Wealth Management Resources Mentioned on This Episode www.MorrisseyWealthManagement.com/contact

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When it comes to planning for retirement, most people can rely on some type of plan through their employer - but what about people who are self-employed? How do small business owners, contractors, and everyone in between make sure they are planning for their retirement? Believe it or not, there are several options for self-employed people when it comes to setting up a retirement plan. I don’t want to leave hardworking men and women like you without a guide when it comes to retirement. Make sure to pay close attention to this informative episode, you don’t want to miss it!

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You will want to hear this episode if you are interested in... * How much should you be saving for retirement? [1:20] * Setting up a ROTH IRA or a Traditional IRA. [2:30] * What is a Solo 401k? [4:30] * Creating a SEP IRA, pros, and cons. [9:45] * How to use a Simple IRA. [11:00] * The defined benefit plan or pension plan. [12:30]

5 Retirement Options Most people are unaware that there are specific options available when it comes to retirement planning for self-employed people. Did you know the options that are available on the marketplace? Here is a brief overview of the five retirement options that are available for the self-employed.

1. Traditional or Roth IRA (individual retirement arrangement). A Roth IRA allows qualified withdrawals on a tax-free basis provided certain conditions are satisfied. Roth IRAs are similar to traditional IRAs, with the biggest distinction between the two being how they’re taxed.
2. Individual or Solo 401k. You can make significant contributions toward your retirement with an Individual 401(k) plan. It’s easy to administer and has many of the same benefits as a traditional 401(k). Best of all, you direct how your contributions are invested.
3. SEP (Simplified Employee Pension Plan) IRA. A SEP plan allows employers to contribute to traditional IRAs (SEP-IRAs) set up for employees. A business of any size, even self-employed, can establish a SEP.
4. Simple IRA (Savings Incentive Match Plan for Employees). This option allows employees and employers to contribute to traditional IRAs set up for employees. It is ideally suited as a start-up retirement savings plan for small employers not currently sponsoring a retirement plan.
5. Defined benefit plan. A defined benefit plan is a qualified employer-sponsored retirement plan. This means they are qualified to receive certain tax benefits under the law, like tax-deferred investment growth or tax deductions for contributions.

Which plan do you suspect is the right one for your retirement strategy? When was the last time you re-evaluated your goals and objectives? Learn more about this critical topic by listening to this episode!

Don’t wait, start planning today! With the New Year just around the corner, it’s a good excuse as any to make sure you have your financial plans in order. Sure, you might not have enough in your budget to save and plan as you’d like but starting is half the battle! If you are serious about setting yourself and your family up for long-term financial success, you’ve come to the right place. As we look ahead to the new year, I am excited to continue to bring you accurate, and valuable financial insights that will help you thrive!

Resources Mentioned on This Episode * https://www.nerdwallet.com/investing/retirement-calculator * https://www.aarp.org/work/retirement-planning/self-employed-401k-calculator.html * https://scs.fidelity.com/products/mobile/sepMobile.shtml

Connect With Morrissey Wealth Management Resources Mentioned on This Episode
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Have you ever received an inheritance? Are you planning on leaving some money or possessions to your friends or family if something happens to you? What does it take to use an inheritance wisely? Too often, well-intentioned men and women find themselves with an unexpected win-fall of inheritance with no idea on how to proceed. In many ways, an inheritance is like winning an unexpected sum of money - no one knows how they’ll react until they have the opportunity. We’ve all read stories of people who squander their financial inheritances - what does it take to avoid becoming one of those stories?

To help proactive and organized individuals, I’ve created this helpful rundown of several tips you can use to make the most of your inheritance. Make sure you have pen and paper handy - you don’t want to miss a minute of this informative episode!

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You will want to hear this episode if you are interested in... * Using your inheritance wisely. [1:25] * Different types of inheritances. [3:00] * Options for paying taxes on your inheritance. [8:00] * How a ROTH IRA can factor into your inheritance plans. [11:00] * Why it’s a good idea to park your inheritance money. [15:00] * Review your insurance and estate planning needs. [17:00] * Closing thoughts. [19:00]

Different types of inheritances Did you know that there are different types of inheritances? It’s true! Whether it’s inheriting a lump of sum, a vehicle, a house, or even jewelry - you’ve got to have a plan.

• Cash inheritance.
• Inheriting a house.
• Inheriting a car, antiques, jewelry, and other items

What would be your first move when it comes to an unexpected inheritance? Stick around, I’ve got several helpful tips you can use to make the most out of inheritance should one come your way. Learn more by listening to this helpful episode!

6 tips you can use Where can you turn to when you experience a financial situation you’ve never encountered before? Do you have a financial advisor you can turn to that you can trust? Over the years I’ve helped hundreds of professionals just like you understand the inheritance they’ve received and create a plan to use it effectively. Here are six of the top tips that I use to help people make the most of the financial inheritance they’ve received.

1. Consult with a certified public accountant (CPA) or tax advisor, an insurance agent, an investment professional, an estate planning attorney, a tax attorney, or a real estate agent.
2. Park your inheritance. Don’t make any major decisions.
3. Eliminate any debt you are carrying.
4. Think about your overall financial plans and what your goals are.
5. Review your insurance and estate planning needs.
6. Do something fun with the money!

How will you plan to use your future inheritance? Make sure to pass this on to someone who will find it helpful!

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Has the recent political season left you anxious and worried about what 2021 will have in store for you and your family? What steps can you take to make sure you are in the best position for long-term financial success? The nation’s eyes rest on the upcoming Senate election in Georgia - where the contest will determine whether two Republican incumbents, Senators David Perdue and Kelly Loeffler, keep their seats. If their Democratic challengers, Jon Ossoff and the Rev. Raphael Warnock, both win, Democrats will claim control of the Senate. While the political future of our country is unclear right now, there are steps you can take to make sure you are putting your best financial foot forward as we enter 2021.

You will want to hear this episode if you are interested in... * Setting your goals and planning for financial success. [1:45] * Investment tips that you can use. [4:00] * How the political situation impacts financial planning. [8:30] * Accelerating your income. [11:00] * Contributing to a 529 plan. [16:45] * Making the most of your retirement plan. [18:00] * Closing thoughts. [20:00]

Setting your goals and planning for the future One of the best ways to future-proof your financial portfolio is to set goals and revisit them. While you can’t predict the future, you can make plans that will protect your investments and put you on sound financial footing. Here are several steps you can take to make sure you are headed in the right direction.

• Make sure you have an emergency fund set aside (3-6 months of living expenses).
• Assess your debt and look into refinancing that debt - especially mortgage loans.
• Keep an eye on your credit score and work on getting it to a healthy number - the higher the better!

What long-term goals have you set already? Are you going to add to those goals in 2021 or are you ready to re-evaluate? To learn more about this critical topic, make sure to listen to this episode - you don’t want to miss it!

Investment tips you can use How are your investments looking after the chaos of 2020? Have you seen a rise in their value or are you still waiting for those stocks to rebound? To help you make the right decisions when it comes to your investments, I’ve come up with several tips that you can use today.

• Review your asset allocation and make necessary changes.
• Review your 401K plan and consider your options.
• Conduct a year-end tax-loss harvesting or tax gain harvesting.

I know that many of you are worried and nervous as we approach 2021 and all the new changes the new year has in store - rest assured that I’m here to help. I plan to continue to bring you the most up-to-date and relevant financial information that you need to make the most of your earnings. Listen to this episode as I expand on my investment tips for you and so much more!

Resources and People Mentioned * The 5 Step Portfolio Process #17 * How to Help Your Grandchild Pay for College Ep #14

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Do you know how to take full advantage of your company’s non-qualified stock options? How do you factor this financial asset into your financial portfolio? From understanding exactly what non-qualified stock options are to knowing what it takes to put yourself in the best position to succeed - this is the episode you don’t want to miss. What about dealing with the tax implications, I’ve got you covered on that front too! Get your financial information from a source that has your best interests at heart. Make sure you have pen and paper handy - you’ll want to take good notes so you can reference this critical information down the road!

You will want to hear this episode if you are interested in... * What a non-qualified stock option is and how it works. [1:15] * How your non-qualified stock option is taxed. [3:30] * Breaking down an example of how to utilize non-qualified stock options. [5:00] * Three strategies you can use to exercise your options. [9:45] * Helpful questions to ask yourself. [12:30]

What are non-qualified stock options? Have you ever worked for a company that offered non-qualified stock options (NSO)? How do the options work? If you’ve got the option for NSO at work, you might want to know what those options are. An NSO is a type of employee stock option where you pay ordinary income tax on the difference between the grant price and the price at which you exercise the option. It is important to note that non-qualified stock options require payment of income tax of the grant price minus the price of the exercised option. NSOs might be provided as an alternative form of compensation. In most cases, the prices are often similar to the market value of the shares. Now that you understand what non-qualified stock options are, the important part comes next, how can you use those options?

Three strategies you can use To make the most of your company's non-qualified stock options, I’ve got three strategies for you to consider. If you don’t have a place to start when it comes to using your stock options, let this be a starting place for you!

• Exercise your NSO and sell it immediately with your own cash or through a brokerage.
• Exercise your NSO and hold on to the stock options.
• Wait toward the very end of when the NSOs are set to expire, exercise, and then sell.

There is however an additional way to have your NSOs taxed and rather than waiting to exercise them - you can use an 83b election. The 83(b) election is a provision under the Internal Revenue Code (IRC) that gives an employee the option to pay taxes on the total fair market value of the restricted stock at the time of granting. To learn more about NSO and so much more, make sure to tune in to this informative episode!

Connect With Morrissey Wealth Management * www.MorrisseyWealthManagement.com/contact

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Who came along and helped you get your finances pointed in the right direction when you were a young adult? Was it a parent who took you aside and explained how to make a budget or prioritize your financial goals? Let’s face it, there are several financial lessons that people need to learn before they really can thrive on their own.

Do you have someone in your life who could use a push in the right direction? If so, you’ve come to the right place! On this episode, you’ll hear as I walk through nine financial tips that you can use or pass on to someone in your life. Make sure to have pen and paper ready, you don’t want to miss a minute of this informative episode!

You will want to hear this episode if you are interested in... * Why it’s important to create a budget. [2:00] * Building an emergency fund. [4:00] * Invest in your 401k plan. [5:30] * Pay off your credit card debt. [8:30] * Take care of student loans and start saving! [11:00] * Tackle any other debt you have. [14:30] * Make sure you have the proper insurance coverage. [16:00] * Create an estate plan. [18:30] * Closing thoughts. [20:30]

9 Financial tips you can use I’ve heard from many men and women over the years who wish they would have taken financial advice from someone they trusted at a young age. I’ve taken the time to cover nine financial tips that you can use or share with someone in your life.

1. Create a budget.
2. Build an emergency fund.
3. Contribute to your 401K plan.
4. Pay off high-interest credit card debt.
5. Pay off your student loans.
6. Start saving.
7. Take care of any other outstanding debts.
8. Make sure you have proper insurance coverage.
9. Create an estate plan.

If you want to go even further as I expand on each one of these tips, make sure to listen to this informative episode - you don’t’ want to miss it! What tips would you add to the list? Which ones have you found the most helpful on your journey? Make sure to share your feedback - I want to hear from you!

It’s not too late to start! Did you find something helpful in the list that you can use to get started on your financial goals? Don’t buy the lie that it’s too late to get started - if you want to make a change, start today! What area of your finances needs the most attention? Try writing out the goals you want to accomplish and placing them somewhere you will see it every day. For more helpful tips and to learn more about putting yourself in the best position to succeed financially, make sure to subscribe to this podcast!

Resources and People Mentioned * www.nerdwallet.com/blog/finance/budgeting-saving-tools/ * www.daveramsey.com/everydollar * www.studentaid.gov/resources/pslf-text-only * www.nerdwallet.com/blog/pay-off-debt/

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What does Medicare cover? What is Medicare part A? What is Medicare part B? Is there a Medicare X, Y, and Z too? While these programs are designed to help people, the truth is, they are often viewed as this crazy and complex web of governmental agencies. I hate seeing hard-working men and women like you spin their wheels trying to untangle this wild web.

As a follow-up to last week’s episode, I wanted to take some time to help you understand how Medicare works, and what you need to do to make it work for you. I don’t pretend to have all the answers but I do know how to get you pointed in the right direction with tools you can use to make the best decision for you and your family. Make sure you have pen and paper ready for this informative episode, you don’t want to miss it!

You will want to hear this episode if you are interested in... * Planning to work past the age of 65 [1:00] * Understanding the different parts of Medicare [2:20] * How to plan for the costs that Medicare doesn’t cover [4:30] * What is a Medigap plan? [6:15] * How to pick the right plan for you [8:00] * Understanding how the enrolment period works [13:00] * How to switch plans to get the right coverage [16:00] * Closing thoughts [18:00]

Working past the age of 65 Are you ready to enroll in Medicare? First of all, you need to be 65 years of age or older. If you are 65 and you aren’t ready to enroll in Medicare because you are still in the workforce, make sure your employer-provided health insurance exempts you from enrolling in Medicare. If your health insurance doesn’t exempt you - you’ll likely want to enroll in Medicare to avoid paying a penalty based on the amount of time that goes by before you enroll - that’s a permanent increase! Don’t miss this episode as I expand on the topic of Medicare enrollment and so much more!

Medicare parts A - Z Are there really as many Medicare parts as there are letters in the alphabet? Thankfully, there are just four parts to Medicare today. Which one is the right one for you? Here is a brief review of the four parts of Medicare. There are four parts of Medicare: Part A, Part B, Part C, and Part D.

• Part A provides inpatient/hospital coverage.
• Part B provides outpatient/medical coverage.
• Part C offers an alternate way to receive your Medicare benefits (see below for more information).
• Part D provides prescription drug coverage.

It is important to understand your Medicare coverage choices and to pick your coverage carefully. How you choose to get your benefits and who you get them from can affect your out-of-pocket costs and where you can get your care. Learn more about Medicare and navigating your choices by visiting the resources located at the end of this post.

Resources and People Mentioned * www.medicare.gov * www.ssa.gov * www.cms.gov/newsroom/fact-sheets/2021-medicare-parts-b-premiums-and-deductibles * www.medicare.gov/sign-up-change-plans/how-do-i-get-parts-a-b/when-will-my-coverage-start * www.medicare.gov/your-medicare-costs/ways-to-pay-part-a-part-b-premiums/medicare-easy-pay * www.medicare.gov/supplements-other-insurance/how-to-compare-medigap-policies

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What would you do if you lost your employer-provided health insurance? Would you sign up for the Affordable Care options, would you try a state program, or something different? If you haven’t investigated your options or considered what would happen if you needed to make a change with your health insurance coverage, this is the episode for you!

A while back I posted a blog article about health care coverage before the age of 65 but I wanted to make sure I updated it to include some critical changes that will impact people like you. I’ve also included some links that I know you will find helpful, they are located in the resources section at the end of this post.

You will want to hear this episode if you are interested in... * Getting healthcare coverage before the age of 65. [1:30] * Investigate individual health insurance plans. [5:30] * Utilizing the Affordable Care Act. [7:30] * Breaking down the insurance exchanges and how the process works [12:00] * Using the open enrolment period and planning ahead [15:30] * Closing thoughts [17:15]

Why 65? When you consider your long-term health insurance coverage, are you basing your decisions on what your employer provides, or are you planning on something different? As you look ahead, remember to factor in the age of 65 - that is the age when you are eligible for Medicare.

Medicare is a national health insurance program administered by the Centers for Medicare and Medicaid Services (CMS), it primarily provides health insurance for Americans aged 65 and older, but also for some younger people with disability status.

Know your options When it comes to assessing your options, it’s good to start by laying it all out on the table. Looking at all of your reasonable options and weighing the pros and cons can be an effective way of helping you make the right decision for you and your family. As I see it, here are the main options that most people have when it comes to considering health care coverage before the age of 65.

1. Chose to have no health insurance.
2. You could qualify for your state’s version of Medicare.
3. Continue your existing health insurance from your employer using COBRA.
4. Investigate the individual plans that are available.
5. Purchase a plan through the Affordable Care Act.

Those are the five options as I see them when it comes to health care coverage before the age of 65. Have you had to rely on any of these options? What has been your experience when it comes to planning ahead for health care coverage? Make sure to tune in and let me know what you think, I love hearing from passionate followers!

Resources and People Mentioned * portal.ct.gov/HUSKY/How-to-Qualify * portal.ct.gov/-/media/HH/PDF/HUSKYAnnualIncomeChart.pdf * portal.ct.gov/CID/Life-And-Health/Companies-with-Approved-Individual-Health-Insurance-Policies * www.healthcare.gov/ * www.accesshealthct.com/AHCT/cthix/#/home * https://www.healthcare.gov/glossary/federal-poverty-level-fpl/ * Episode 1 * Episode 16

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Do you have a plan in place when it comes to your investment portfolio? What are your primary objectives? Do you have the right investments in place that align with your goals? There are so many different directions you could go when it comes to approaching the portfolio composition process.

At the heart of my business and professional goals is a desire to help others invest their money wisely so they can make the most of the hand that life dealt them. On this episode, you’ll learn about the portfolio process in five simple steps that can empower people like you to get a good start on investing. Make sure you have pen and paper ready, you are going to need them for this informative episode - don’t miss it!

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You will want to hear this episode if you are interested in... * What is asset allocation? [1:30] * Understanding your risk tolerance [3:30] * The rule of 100 [7:30] * How diversified is your portfolio? [9:30] * Passive or active investment strategies? [12:00] * What is your rebalancing strategy? Should you get some outside help? [17:00] * Closing thoughts. [19:00]

Five-Step Portfolio process I hate to see hardworking men and women struggle and reach their breaking point when it comes to navigating the process of building and maintaining an investment portfolio. Don’t leave something as crucial as your financial future up to guesswork and chance, get your information from a solid source! Inspired by the work of Dan Goldie, here is the five-step portfolio process.

1. Asset allocation - diversifying your portfolio across different asset classes.
2. Diversification - not having all of your money in a few stocks, bonds, or other investments.
3. Active vs. passive - tracking a certain segment of the market or a more active management approach.
4. Rebalancing - your strategy for adjusting your investment approach when one portion of your investments change.
5. Do it yourself - this is the step where you need to decide how much you want to be involved in your financial management.

I want you to spend some time and really dig into this breakdown of the process. Have you started to explore your options? What stands out to you on the list, where do you need to get started? Make sure to tune in to this episode as I expand on each of these steps and much more!

Don’t go it alone! Do you have a reliable set of financial and investment resources that you can count on? Too often smart business people like you overlook the need to connect with an investment advisor to help you navigate blindspots. From resources and tips to encouragement and positive energy, this podcast is made to empower regular men and women to take control of

Resources and People Mentioned * The Investment Answer by Dan Goldie * www.morningstar.com

Connect With Morrissey Wealth Management * www.MorrisseyWealthManagement.com/contact

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Getting laid off is an experience that no one wants to encounter- unfortunately, thousands of men and women across the country are coming face to face with this stark reality. How should you respond to getting laid off? What is the smartest financial course of action when you find yourself having to deal with a layoff?

As our country deals with COVID 19 and the economic repercussions of the ensuing lockdowns, many people are wringing their hands - trying to find a financially feasible path forward. Don’t let fear and uncertainty rule your decision making - use facts and data! Tune into this episode as I explain how hard-working people like you should respond when faced with a layoff - you don’t want to miss a minute!

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You will want to hear this episode if you are interested in... * Taking a hard look at your budget after a layoff? [1:30] * Stabilizing your health care coverage. [4:00] * Using your retirement investments while unemployed. [5:45] * Getting back into the workforce. [10:00]

Evaluating your budget One of the first things you should do when faced with an income shortage or layoff is to re-evaluate your budget. While most people dread this thought, the truth is, you can really locate a lot of unnecessary expenditures by taking a hard look at your budget. From streaming services to subscription boxes and more, reigning in your budget can help you buy some time before you start writing your next chapter. I also encourage people who have just faced a layoff to make sure they secure their connection to health coverage - the last thing you need is healthcare coverage that has lapsed when you are unemployed.

Writing the next chapter You’ve heard the saying “To get what you’ve never had, you must do what you’ve never done” this can apply to your financial journey as well. It’s hard for people to imagine getting to where they’ve never been in life or business if they don’t set a goal. If you’ve faced a layoff and you’ve taken the time to evaluate your budget and secure your healthcare - the next step is to make a plan. Is it time to retire and close the door on your time in the workforce? Or is it time to dust off your resume and apply for a position with a new company? Whichever course is the right one to take for your family - this is the episode for you!

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Do you own any bonds? Have you ever considered using this investment tool but want more information before you make the purchase? What is the best approach to using bonds as a part of your long-term investment strategy? If you’ve ever wondered about using bonds, this is the episode for you! Should you pick a corporate bond or a municipal bond? Discover the tips and insights you need to make the best decision for you and your family - have pen and paper ready as you listen to this informative episode!

You will want to hear this episode if you are interested in... * What is a bond and how can do you use it as a part of your investment strategy? [1:15] * How are municipal bonds different from corporate bonds? [7:30] * Why buy a municipal bond over a corporate bond? [10:30] * Is it a good idea to buy a US Savings Bond? [12:30] * How to use bonds in your investment strategy. [15:00] * Risks with using bonds. [17:00] * Closing thoughts. [19:30]

What are bonds? If you are new to exploring the idea of using bonds, don’t worry - I’ve got you covered. When it comes to bonds there are three types that we are going to focus on; corporate bonds, municipal bonds, and US Savings bonds.

1. Corporate bonds. A corporate bond is a type of debt security that is issued by a firm and sold to investors. The company gets the capital it needs and in return, the investor is paid a pre-established number of interest payments at either a fixed or variable interest rate.
2. Municipal bonds. Municipal bonds are issued by state and local governments. These can be thought of as loans that investors make to local governments, and are used to fund public works such as parks, libraries, bridges & roads, and other infrastructure.
3. US Savings bonds. U.S. savings bonds are a form of government debt issued to American citizens to help fund federal expenditures. Savings bonds are sold at a discount and mature to their full face value, and do not pay regular coupon interest.

Which bond is the right one for you to invest in? Are you ready to pull the trigger and make it happen? To learn more about each of these types of bonds and how the details impact investors like you, make sure to listen to this episode!

Using bonds as a part of your investment strategy Are you ready to jump in and see what it would mean for your investment strategy to embrace the use of bonds? While using bonds does force you into a conservative investment strategy, that doesn’t have to be the case across the board. You'll earn interest on the bonds, but they may have rules as to when you can redeem them. Generally, savings accounts are ideal for low-risk, short-term savings and bonds are ideal for low-risk, long-term savings. Explore your investment options and so much more on this powerful episode!

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As you prepare for your future and look toward retirement, you might be also considering how you can help your grandchildren take care of college costs. What are the options when it comes to paying for a family member’s college tuition? How do you determine which option is the best fit for your retirement plans?

While it’s a great privilege to go to college, the truth is most people don’t have the means to get there on their own these days. On this episode, you’ll hear as I break down the common ways that prudent investors like you are using to ensure their grandchildren have help for college - you don’t want to miss a minute of this informative episode!

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You will want to hear this episode if you are interested in... * Common ways most people help their family members pay for college [1:15] * What is a Coverdell education savings account? [8:00] * How 529 plans work and how to understand them. [12:30] * Choosing the right plan for you. [14:00] * Closing thoughts [17:00]

Common ways to help your grandchildren pay for college Chances are, you didn’t have much help from your grandparents when it came to paying for college - why are things different today? While there are a ton of answers to that question - the fact remains that most people need some type of assistance when it comes to paying for college in 2020. I’ve taken the time to collect the common ways most people help their grandchildren pay for college so you can see them in one place and make the right decision for your family.

1. Pay your grandchild’s tuition directly.
2. Offer your grandchild a loan.
3. Pay off your grandchild’s loan after they graduate.
4. Buy a U.S. savings bond.
5. Set up an irrevocable education trust.
6. Set up or contribute to a custodial account.
7. Contribute to a Coverdell education savings account
8. Open a 529 plan in your name.
9. Contribute to a 529 plan that has already been set up.

Which option is best for your family? What route are you more inclined to take? Have you learned about options that you’ve never heard of before? Make sure to check out the link in the resources section so you can go even further with this important topic!

Why it’s a good idea to use the 529 plan There are some great options that are covered in my 9 ways to help your grandchild pay for college but I want to stress the fact that I like the options that use a 529 plan. Each person has to make the right decision for their family and their goals when it comes to their investments but I know that savvy consumers like you will use this information wisely. To learn more about helping your grandchild pay for college and to hear my expanded take on each of the ways mentioned, make sure to tune into this episode!

Resources & People Mentioned * www.savingforcollege.com

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Have you noticed ads for annuities showing up in your area or online? Are you thinking of using an annuity as a tool in your retirement portfolio? How do you know if purchasing an annuity is the right decision for you and your family?

When interest rates are low, it usually means that annuities become a popular commodity that people try to sell. The real money for the insurance agencies comes when they don’t have to pay out the full amount of benefits when an annuity holder passes away.

To help you make the most of your finances as you plan for, enter, and enjoy retirement - I’ve come up with a helpful overview of how annuities work and how you can use them to their maximum potential. You don’t want to miss a minute of this episode!

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You will want to hear this episode if you are interested in... * What are the different types of annuities available? [1:40] * The benefit of purchasing an annuity. [3:00] * Understanding how a fixed annuity works.[6:00] * How to use an indexed annuity. [9:15] * Is a variable annuity right for you? [11:45] * How death benefits and living benefits with annuities work. [15:30] * My take on using annuities wisely. [18:00] * Closing thoughts [20:00]

Four types of annuities Let’s face it, most people don’t have an idea of what an annuity is or how it works. Even people who purchase an annuity find that they don't’ really understand how it works a year after they’ve purchased one! As you begin the process of investigating if an annuity is the right decision for you and your family - here an overview of the four common annuities.

1. SIPA or a single premium immediate annuity is set up where you pay an insurance company a sum of money upfront and they promise to pay you a certain amount of money periodically (monthly, for instance) for the rest of your life.
2. A fixed annuity is where an insurance company promises to pay the buyer a specific, guaranteed interest rate on their contributions to the account.
3. An indexed annuity or a fixed index annuity is a type of annuity whose income payments are tied to a stock index, such as the S&P 500. Indexed annuities perform well when the financial markets perform well.
4. A variable annuity is an option that allows you to choose from a selection of investments, and then pays you a level of income in retirement that is determined by the performance of the investments you choose.

Which type of annuity are you the most familiar with? Are you ready to learn more about this important and helpful topic? Make sure to tune in to this episode as I expand on each of these types of annuities and so much more!

Using annuity wisely What is my “Take” when it comes to annuities? I encourage the people that I serve to consider using a different approach when it comes to using annuities. I recommend looking into a withdrawal strategy that optimizes the use of annuities without looking up too much of your money for the long-run. You can learn more about my withdrawal strategies and how they work when it comes to using an annuity by listening to the second episode of this podcast linked in the resources section at the end of this post.

Resources & People Mentioned * Retire with Ryan Episode #2 * The Guyton Guardrail Strategy

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Have you ever thought about buying a second home? What is it about owning a second home that interests you? Are you in it for the special getaway that it provides you and your spouse? Or maybe it’s for you and your grandchildren to make memories. Whatever your reason for buying a second home, I’m sure you have a ton of questions.

Buying a second home can provide you with a ton of helpful options when it comes to planning and preparing for your retirement years. To help you get a good handle on this critical topic, I’ve laid out some important factors for you to consider as you gather your information. Make sure you pay close attention to this informative episode - you don’t want to miss it!

You will want to hear this episode if you are interested in... * Can you afford a second home? [1:30] * The advantage of buying a second home used as a rental property [5:30] * Anticipating repairs and maintenance. [8:30] * Why your location is so critical [10:00] * Do you really want to be a landlord? [12:15] * Purchase options for your second home purchase [13:45] * Closing thoughts [16:00]

Can you afford a Second Home? Sure, the idea of spreading out and having a vacation home or a rental property sounds great but can you really afford it? Are there any hidden costs that you should be aware of before you get too far down this path?

Start by identifying a particular house in the location you are interested in. What are the property taxes for that house? Is it in an association that has rules you need to factor into your decision making? Make sure you are aware of any special insurance policies that you might need to acquire for the location and condition of your new home. Next, you need to determine if you are going to pay in cash or through a mortgage - which one is better for your financial state? To learn more about this important topic and so much more, make sure to listen to this episode!

Making the right decision It’s not easy trying to plan out how you want the next phase of your journey to go - there are so many questions! If you feel like you need more information before you make a big decision like purchasing a second home, you are not alone. I’ve had many of my clients approach me about this very topic and I’m always excited to share the options and opportunities! Before you decide if buying a second home is right for you and your family - consider your goals - where do you want to be during this next stage of life? Are you willing to go through the headache of being a landlord? Get more helpful insight into what it takes to buy a second home on this episode!

Resources & People Mentioned * Retire with Ryan Episode #5

Connect With Morrissey Wealth Management * www.MorrisseyWealthManagement.com/contact

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What is the best route to protect your hard-earned money and invest it wisely? Is it still a good idea to place your money in a 401K that is matched through your employer or is there a better option out there?

As you look to the future, you want to ensure that your money will be protected in the best possible way. There are those who are questioning if it is a good idea to continue with 401K investing and I wanted to go on the record to let you know where I stand on this topic. Drawing on my experience in the industry and by following the data, I do believe that 401K’s are still worth the investment. Tune into this episode as I break down some helpful tips that will empower people like you to make the most of your 401K!

You will want to hear this episode if you are interested in... * Does it still make sense to use a 401K plan? [1:15] * Take full advantage of your employer’s matching program [2:30] * When you should max out your 401K plan [3:40] * Understand the fees you are paying with your 401K [5:30] * Why you should consider using index funds [7:00] * Be wary of target day funds [8:30] * What is NUA? [12:00] * Taking money out of your 401K without a penalty [15:00] * Closing thoughts [16:30]

Don’t leave money on the table! If you’ve come this far, you know that the best way to protect your money is to be smart with your money. Too many people live their lives ignorantly spending themselves out of house and home! One of the all-too-common ways that people miss easy investing opportunities is by failing to max out the match that their employer provides when it comes to their 401K. Have you maxed out your matching program at work? What are you waiting for? Learn more about using your employer’s 401K matching program so you don’t leave money on the table by listening to this helpful episode!

8 Tips to make the most of your 401K To help action-taking people like you, I’ve compiled a helpful list of the top tips that will help you make the most of your 401K. Make sure to have pen and paper ready to jot down some notes - you are going to need it!

1. Make sure you are contributing enough to get the full match from your employer.
2. If you are close to retiring, max out your 401K program.
3. Understand the fees you are paying with your 401K.
4. Consider using index funds.
5. Be wary of target day funds.
6. Have an asset allocation plan and stick with it.
7. Understand how Net Unrealiazed Apprication (NUA) works with your 401K program.
8. Take money out with out getting penelized.

Those are my tips for making the most of your 401K investing strategy. What tip stood out the most to you? Where do you need to get started to ensure you are investing wisley? If you have any 401K tips, I’d love to hear those too - make sure to leave a comment!

Resources & People Mentioned * https://www.bloomberg.com/opinion/articles/2020-07-21/401-k-plans-no-longer-make-much-sense-for-savers?sref=2o0rZsF1

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Let’s face it, no one likes to get the wool pulled over their eyes. When it comes to investing your money, you’ve got to make sure you are partnering with someone who is trustworthy and honorable. Over the years, I’ve heard horror story after horror story from clients who have learned the hard way. What if you could learn from their mistakes and avoid similar situations?

I’ve compiled a helpful resource that empowers people like you to make the best decision for their families and their future. These aren’t just some random factors to consider, the financial planning and advising industry is highly regulated and for a good reason. Make sure you have pen and paper handy for this informative episode - you are going to need it!

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You will want to hear this episode if you are interested in... * How to stay away from bad financial advisors [0:45] * Are there any disclosures or complaints against your financial advisor? [3:00] * Why it can be helpful to connect with a financial planning specialist. [8:00] * Do you know what your financial planner's investment philosophy is? [11:00] * Why you should stay in contact with your financial planner. [14:00] * Closing thoughts [17:00]

Why it matters When you place a lot of pride and effort into your profession you really want to make sure that you are doing your part to ensure that the public has confidence in your industry. Unfortunately, most people only know the financial planners who abused their power by name, those who follow the rules don’t get the publicity and notoriety. I’ve recently seen a few instances of financial fraud committed by peers in my industry so I wanted to make sure there was a helpful resource available to people who are looking to stay informed.

10 Questions to Ask Your Financial Advisor To equip responsible consumers like you, I’ve created a helpful list that will give you the tools you need to make the right choice when it comes to hiring a financial advisor.

1. Are you a Fiduciary and a fee-only firm?
2. Do you have any disclosures or complaints?
3. Do you have any specific certifications?
4. Do you have any specialties and what services do you offer?
5. How are you compensated for your services?
6. What other costs will I be charged?
7. What investment philosophy do you follow?
8. Where do you keep my money and how can I see it?
9. How often will we communicate?
10. How long has your longest client been with you and how many clients do you advise?

By no means is this an exhaustive or perfect list, this is merely meant as a tool that will get you started in the right direction. It is my hope that this will help you avoid common mistakes when it comes to assessing which financial advisor to enlist. If you’d like these questions addressed in fuller detail, please make sure to check out the link to my post in the resources section at the end of this post.

Resources & People Mentioned * www.cfp.net * 10 Interview Questions When Hiring a Financial Advisor

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Do you have everything figured out for your estate? What will happen to your assets when you pass away? Who will take care of your children or your animals? If you don’t make a plan - you are planning for disaster!

I know that estate planning isn’t the sexiest topic in the world but it is vital for protecting your loved ones and making sure they are taken care of after you are gone. I took the time to jump into estate planning so you don’t have to - learn from my leg work and get started today, what are you waiting for?

You will want to hear this episode if you are interested in... * How to get started with estate planning [1:35] * Legal directives and living wills [5:00] * Reviewing accounts [7:00] * Navigating state laws regarding estate taxes [10:00] * Plan to review everything [14:00] * Closing thoughts [15:20]

7 steps to Estate Planning The best thing you can do when you are faced with a large task is to break it down into steps you can take bit by bit. To take on a task like breaking down estate planning - decided to go with seven steps you can take to get a handle on your estate planning goals.

1. Take an inventory of your assets.
2. Create or update your will.
3. Create or update your legal directives.
4. Review the beneficiaries on your accounts.
5. Assess whether you are subject to any estate, inheritance, or federal tax.
6. Consult with a professional - an estate planning attorney or financial planner.
7. Periodically update and review your estate as necessary.

Over the years I have talked to many people who are stuck on step one or never get to step five - I hope that this list helps you make a plan. Consider printing out this list and making notes as you go!

Make a plan and review it! What will you do first to get started with your estate planning adventure? You don’t have to have everything planned out right away - break it down into manageable chunks and go from there. Too many people make a plan and then forget about it - don’t let that happen to you. If you want to have an effective and smooth estate plan, you need to make sure it stays up to date. Your plan will also do you no good if no one knows where to find it! To hear more helpful tips that will put you in the best position for long term financial success, make sure to listen to this episode!

Resources & People Mentioned * www.legalzoom.com

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Have you or a family member had to use long term care insurance before? Are you considering acquiring long term care insurance as part of your retirement strategy? Whether you’ve just started looking at long term care or you’ve never heard of it before, this episode is for you!

No one likes the idea of spending the final years of their life in a facility cared for by strangers. What if there was a way to financially plan so you don’t have to worry about leaving the comfort of your own home to receive the care you need? Don’t leave it all up to guesswork and half-answers - get the details you need to make informed and educated deicings for you and your family by listening to this informative episode!

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You will want to hear this episode if you are interested in... * What is long term care? [1:30] * The different ways to receive long term care. [6:30] * Why people like the life insurance and long term care combination. [11:00] * How much long term care coverage do you need? [13:15] * When is the best time to purchase a long term care policy & how much is it? [17:00] * Action steps you can take [20:30]

What is long term care? Imagine the peace of mind that full auto or home insurance gives you - wouldn’t be great if you had that same sense of security when it comes to your long term care needs? Many people have never even heard of long term care insurance - what is it?

“Long term care” refers to the help that people with chronic illnesses, disabilities or other conditions need on a daily basis over an extended period of time. The type of help needed can range from assistance with simple activities (such as bathing, dressing and eating) to skilled care that's provided by nurses, therapists or other professionals.

52% of people turning 65 today will need long-term care at some point. Purchasing long-term care insurance can help you have peace of mind.

Have you factored in government programs that will help you during retirement age for these sorts of services? Don’t make the mistake of believing Medicare will cover long-term care costs. It doesn’t. And while Medicaid—the government program designed for people who truly don’t have any money—will cover long-term care expenses, it should never be your first choice.

When should I buy Long Term Care Insurance? Should you buy long term care insurance early to lock in a low monthly premium? Is it a wise investment to start early or is it better to wait? Based on my research, the best time to buy long term care insurance is between 60 and 65 years of age because the likelihood of you filing a claim before that age is slim. Statistically, 89% of long term care claims are filed for people over age 70.6. Make sure to catch more helpful details about long term care and some helpful action steps you can take by listening to this episode!

Resources & People Mentioned * https://longtermcare.acl.gov/index.html * https://www.genworth.com/aging-and-you/finances/cost-of-care.html

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You’ve done the responsible and smart thing by paying into life insurance over the years but you’ve finally made it to the finish line - retirement! What do you do with your life insurance now? Do you still need it? Is there a better way to use that investment tool?

At the end of the day, forward-thinking people like you are looking to make the smart and responsible decision - I’ve done the work so you don’t have to go chasing down all the details.

On this episode, I’ll help you find out if you still need life insurance, what my preferred method of life insurance is, what to do if you don’t need your life insurance policy anymore, and so much more! There is a ton of information you’ll find useful on this episode, don’t miss it!

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You will want to hear this episode if you are interested in... * Do you need life insurance? [1:20] * What type of life insurance policy should you purchase? [4:20] * Three types of permanent life insurance policies [6:10] * What if you don’t need a life insurance policy anymore? [8:10] * What is a “1035 exchange?” [10:30] * Closing thoughts and key takeaways. [13:10]

Do you need life insurance? Have you determined if you currently need life insurance? Most people who need life insurance are those who are in their peak income-earning years, people who have non-liquid assets, those who still have minor children, and people who want to leave more money behind than they currently have saved or invested. Just because there are many people out there who decide to use life insurance as a retirement tool, it doesn’t mean you automatically need to do the same!

Assess your situation and really take a look to see if you need life insurance at this point in time - there might be better options out there for you to invest your money. To learn more about determining if you need life insurance and other helpful insights, make sure to catch this episode!

What type of life insurance policy is the best fit? If you’ve determined that you still need life insurance, what type of life insurance policy should you get? There are two main types of life insurance policies, term policies, and permanent policies.

• Term policy - A term policy covers you for a certain period of time - if you die during that term policy then your beneficiaries get the full amount. I encourage people to buy term and invest the difference.
• Permanent policies -
• • Whole life insurance policy - the most conservative and the most guaranteed.
  • Universal life insurance policy - more flexibility but fewer guarantees.
  • Variable universal life insurance policy - more flexibility - the funds can be invested in stocks for a greater return.

Each of these types of life insurance policies has their benefits and their drawbacks, I encourage people to really take the time to review their options and revisit their prevision decision to make sure they are on the right track.

What if you don’t need life insurance anymore? If you’ve come to the point in your financial journey where you don’t need life insurance anymore, what should you do? If you have a term policy that you no longer need, you simply stop paying the monthly premium. If you’ve selected a permanent policy, you’ll want to reach back out to that insurance agency that you set up the policy with and request an in-force illustration. An in-force illustration is a picture of your insurance policy as it stands now. It will show the exact results of what has happened from the initial policy inception to today with future projections based on current assumptions.

After your in-force illustration, if you find that there is no cash value in the policy then you simply walk away. If there is cash value to your policy, you’ll want to find out if it the value is taxable or not. I go into even further detail on this critical topic on this episode, make sure to tune in!

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Do you know what to do with your pension plan? Do you have the option to have your pension paid out in a lump sum or in monthly payments? If you are unsure how to use your pension plan effectively as you head into retirement, you’ve come to the right place!

I know talk of pensions and annuities can be confusing, I don’t want to add to any of that confusion for you. Rather, I’d like to take some time to give you helpful information on lump sums, monthly payments, and more. Make sure you have pen and paper ready, you are going to need it!

You will want to hear this episode if you are interested in... * Two options for your pension, monthly payments or lump sum. [1:30] * How your marital status can impact your pension decision. [4:00] * Why taking a pension lump sum can be helpful [8:00] * Should you purchase an annuity to use as an income stream. [11:00] * Closing thoughts. [14:30]

Looking at your options If you don’t know what the situation is with your pension plan, you aren’t alone! I find that many of my clients know that they have a pension but they don’t know what their options are for using it. The two most common options when it comes to using your pension are;

• Opt for a monthly payment for the rest of your life if you are single. If you are married, you’ll opt for a joint option that will provide a monthly payment for you and your spouse.
• Opt for a one-time lump sum payout.

There are several things to consider if you opt for the one-time lump sum payout. You could roll that money over to an IRA or you could pay the taxes on that lump sum and use right away. Make sure to listen to this episode as I expand on this topic and much more.

Planning for the long term Many people don’t take into consideration how their marital status will impact their efforts to plan for their future. When it comes to using your pension to purchase an annuity, make sure you know that the return may be impacted. Insuring two people on one policy is often more expensive - the benefit this allows for that the payments continue even if the person who earned the pension has passed away. What are you waiting for? Don’t leave your pension plan to the last minute! Learn more about using your pension wisely and a whole host of related topics by staying connected to this podcast!

Connect With Morrissey Wealth Management
www.MorrisseyWealthManagement.com/contact

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I get it, most people think that taxes and even tax tips are boring. But what isn’t boring is the freedom that you will have by saving your money, investing it wisely, and keeping it protected.

No one likes to be stressed out - it can affect your health, your relationships, and so much more. One of the best ways to avoid stress to reduce the areas of complexity and concern in your life. While I don’t have a tone of tips when it comes to health and relationships, I do have some insights when it comes to investing your money and protecting it.

On this episode, you’ll hear me break down some simple and easy to understand tips that you can use to protect your money and make the most of retirement. While this is no means a definitive list, I wanted to get you a good start on what you need to succeed - make sure to subscribe to the podcast as I share more insights!

You will want to hear this episode if you are interested in... * Tips for reducing your taxable income and more! [1:35] * Lowering your federal income to avoid taxation [4:30] * Why it’s helpful to delay drawing from Social Security [7:30] * Living in a tax-friendly location [9:00] * What to do with inherited funds and property [13:00] * Key takeaways from this episode [15:45]

How to reduce your taxable income on the federal level The federal government has rules for different age groups and income levels to make sure that the tax program works across the board. While there are many challenges to taxation at a federal and even at a state level, I found a few tips you can use to reduce your taxable income on the federal level.

• Keep your income below $40,125 for a single person or below $80,250 for a couple. You can do this by delaying your decision to draw from retirement accounts or investments if needed.
• Delay drawing from Social Security. My last podcast episode (#4) was all about this topic.
• Convert part of your 401K or IRA into a ROTH IRA - this will help reduce your future taxable income.

State income taxes and how to play it smart Do you know anyone who vacations to a different part of the country for half of the year? Are there tax benefits to changing your residence to a different state? Thankfully, there are some helpful solutions out there to protect your money when it comes to state income taxes. One relatively easy way to lower your state income tax rate is to move to a state that doesn’t have an income tax.

Before you move, make sure to check out where that state gets their revenue - just because they have no income tax doesn’t mean they don’t try to get you through property taxes or cost of living increases. If you are looking at this option seriously, I recommend playing it by the book, the IRS considers you a resident of a state if you spend six months and one day in that state.

I know this topic can seem boring but I hope you found some helpful tips that will save you money in the long run - please let me know if you have any tips you have found helpful, I want to hear from you!

Resources & People Mentioned * IRMAA * Kiplinger’s State by State guide to taxes for retirees * 14 States that won’t tax your pension * States without income tax * Federal tax income brackets * The SSA’s retirement planner page

Connect With Morrissey Wealth Management
www.MorrisseyWealthManagement.com/contact

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Have you started planning for the day when you’ll apply to receive Social Security benefits? Do you know how old you need to be? What will you do if your spouse dies before you?

I know that Social Security can become a hot button political issue - but the truth is millions of Americans rely on Social Security for their income and for retirement planning. I want to cut through all the noise and talking heads out there and get you what you really need to know about Social Security and when you need to apply.

On this episode, you’ll hear a brief explanation about the program and how it works for people planning to retire, the five things I’ve identified that are critical to collecting Social Security the right way, why you don’t need to worry about Social Security solvency, and much more. Make sure you pay close attention to this informative episode, you don’t want to miss it!

You will want to hear this episode if you are interested in... * When is the right time to collect your Social Security check? [0:45] * 5 things you need to know about collecting Social Security [3:30] * What does family history have to do with Social Security? [8:30] * Keeping your pressure off of your assets [10:15] * Should you be concerned about Social Security solvency?[13:00]

When you should apply to Social Security Should you apply for SSN benefits as soon as you possibly can? It depends! For most people, the answer to that question is, no. If you and your spouse plan on working into your 60’s, you don’t need to collect SSN at the earliest possible date. The more you wait, the more benefits you’ll be able to collect from SSN. You can learn more about planning for the right time to apply to receive SSN benefits by visiting the link to the SSN administration located in the resources section at the end of this post.

5 things you need to ask about Social Security I have met with numerous individuals over the years as they plan for financial success and I’ve noticed five key things people should be on the lookout for as they plan to receive SS benefits. Each of these topics will help you filter and understand where you need to be when it comes to analyzing your Social Security options.

1. Do you need income from Social Security?
2. Are you working?
3. Are you married?
4. Look at your family history - what does it show you about your longevity?
5. Should you work longer to increase your benefits?

To hear a full break down of each of these categories and how the answers these questions will help you plan for the future, make sure to listen to this episode!

Don’t stress! Are you worried about the future especially when it comes to safety nets like Social Security? Does the gridlock in Washington D.C. leave you cynical and hopeless for long-term solutions? I know that it’s easy to get overwhelmed by negative and discouraging news but I want to give you a glimmer of hope. I really don’t think that Social Security will become insolvent - it sounds like a huge colossal problem when you talk to politicians but the truth is, Congress can fix it with some pretty simple changes. I am confident that if Social Security is left to fail, people will vote to correct that very quickly.

Resources & People Mentioned * www.ssa.org

Connect With Morrissey Wealth Management
www.MorrisseyWealthManagement.com/contact

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2020 has been a crazy year, for sure. Many things have happened because of the COVID-19 pandemic that has swept the globe. The ripple effects are still being felt. The legislation passed by Congress to address the impact of the pandemic is multifaceted and impacts not only those who are retired or who are planning to retire soon, but also those who are beneficiaries of relatives’ IRAs.

This episode will highlight some of the most significant changes brought about by the CARES Act and the SECURE Act and will provide you with options you can consider for a variety of scenarios.

You will want to hear this episode if you are interested in... * The background of Required Minimum Distribution (RMD) [1:01] * How things are different for beneficiaries of these funds [6:57] * Understanding the Coronavirus related distributions provision [11:08]

RMDs (Required Minimum Distributions) do not follow traditional guidelines for 2020 To address the impact of the COVID-19 pandemic, Congress passed two pieces of legislation that have an effect on Required Minimum Distributions. Those acts are the SECURE Act and the CARES Act. These acts change the rules surrounding how and when individuals are required to take distributions from tax-sheltered investment vehicles.

Previously, at age 70 ½ at least 3.5% of your IRA or 401K balance was required to be distributed to you. In an effort to help with the tax burden such distributions could cause, the CARES Act has changed that required distribution age to 72. That means you can delay having to claim more income because of an RMD and perhaps keep yourself in a more secure financial footing until the COVID crisis is over.

What if you’ve already taken your Required Minimum Distribution for 2020? It’s not uncommon for individuals who have to initiate their RMD to do so beginning in January of the calendar year, continuing to take set amounts out each month. With the changes brought about by these Acts, that may not be the best plan moving forward. But what if you HAVE already taken some or all of your RMD? What can you do?

Under the old rules, you would only have 60 days to roll the distribution you've received back into an IRA to avoid the tax implications of receiving it. But now, because of the pandemic, the IRS has released a notice that indicates that you have until August 31st to roll money back into the IRA it came from or to put it into a new one.

This applies to any RMDs from IRAs, 401Ks, 403Bs, SEPs, 457 Plans, Thrift Plans, and others.

The situation is different for beneficiaries of IRAs The rules mentioned above do not apply to beneficiaries of IRAs. If you have taken your RMD as a beneficiary, you will have to pay taxes on it because you are not allowed at any time to roll that money back into an IRA that is not your own. That’s bad news for anyone who has taken out their entire RMD amount as a beneficiary. But if you have that RMD set to distribute money to you on a monthly basis, you can pause those distributions for the rest of the year to at least avoid having to claim the entire amount as income for 2020.

There is also a change to what has been known as the “stretch IRA” provisions. Previously, beneficiaries were allowed to stretch out RMDs for their entire lifetime. The 2020 COVID legislation has changed that. Now you only have 10 years to take your RMDs, at which point the account has to be completely empty. That means you will pay tax on each distribution when it happens. So consider your tax situation when deciding how you want to address this issue. If you’re still working you may not want to take the RMD now because it would add to your taxable income currently.

Strategies to reduce your tax burden because of RMDs With these changes to the rules governing RMDs going into effect, many people are scrambling to do what seems best with their distributions. If you took any RMDs and decide that you don’t want that money to be counted as income for 2020, take action to roll it back into the IRA before August 31st (the extended deadline).

There is one exception to that August 31st deadline. If you were impacted directly by Coronavirus and it created financial hardship, you can take money out of your IRA, retroactive to January of 2020 and you can roll that money back into the IRA within three years, which is beyond the August 31st deadline of this year. But you have to be able to prove you were adversely impacted financially due to COVID.

Finally, you can donate your RMD directly to a charity or multiple charities. It will not be considered taxable income for you if you do and must go directly to one or more charities.

Listen to hear all the issues you should be thinking about when it comes to the changes recent legislation has made to RMDs.

Resources & People Mentioned * CARES Act * SECURE Act

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Retirement income planning is something we all know we need to do but don’t always get around to in a timely manner. One of the reasons we delay could be because we simply don’t know where to start. That’s why I’ve recorded this episode. I want you to know the basic, prudent steps that you can take to get your retirement ship sailing and to ensure that you feel comfortable with what your income is going to be like during retirement. It’s not a hard process, but it does take some thought and some assessment of where you’re at financially now and where you want to be financially during retirement.

You will want to hear this episode if you are interested in... * How to use my 4-step process to figure your retirement needs [1:40] * The best approaches to using Social Security in retirement [5:31] * Approaches to utilizing your pension effectively [7:07] * How personal savings can help with retirement expenses [10:10] * How to monitor your retirement funds in light of tax changes [14:53]

Resources & People Mentioned * https://ssa.gov - download your Social Security statement * The Guyton Guardrail Strategy

Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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Welcome to the very first episode of Retire with Ryan! Due to the restrictions of COVID-19, I haven’t been able to get the usual information I share in my adult education classes out there so I decided to try something new. I hope that these episodes help you as you invest and plan for the future.

Have you started investing in your Health Savings Account (HSA) yet? What are you waiting for? You might be thinking that you don’t have any pressing medical needs and you don’t see any coming your way soon - that’s OK - you should still consider investing in an HSA. On this episode, you’ll find out what an HSA is, how it works, benefits of investing in an HSA, action steps you can take, and so much more!

You will want to hear this episode if you are interested in... * Health Savings Accounts and how to use them! [0:38] * I explain the benefits of a triple tax-free retirement play. [3:00] * How to move your money from an HSA account for more investment options. [5:00] * What you can spend your money in the HSA account on. [8:30] * Why you need to look at the HSA as a long term investment strategy. [11:00] * Action steps you can take! [12:30]

What is a Health Savings Account? An HSA is a type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses. By using untaxed dollars in an HSA to pay for deductibles, copayments, coinsurance, and some other expenses, you may be able to lower your overall health care costs. You will likely be familiar with an HSA if you participate in a high deductible health care plan. For a single individual in 2019, you can contribute $3,500 - if you are married, the limit is $7,000. If you are over 55 years old, you can make a $1,000 “Catch-up contribution” to your HSA.

Benefits of a TRIPLE TAX-FREE retirement play Wouldn’t you like to protect your hard-earned money and maximize your buying power as you plan for retirement? What if you could position your money in a triple tax-free plan? While a triple tax-free plan may sound too good to be true, I can assure you - it’s not!

With an HSA, you receive a tax deduction when your money goes into the account, the money grows tax-deferred, and if you take it out for health-related costs - it’s tax-free. If you are maximizing your employer-provided retirement options like a 401k, I strongly encourage you to start investing your money into an HSA also.

Action steps you can take today! If you are anything like me, you need some solid action steps - concrete plans you can put into place to move things forward. Don’t let good advice and helpful insights go in one ear and out the other! Here are some key action steps you can take to get started with your HSA today.

• Find out if you are eligible for an HSA. If you are, start contributing!
• If you are contributing but it isn’t earning much interest, see if you can move it.
• Make sure you are maxing out your contributions!

You can learn more about these action steps that I suggest, and a ton of additional details about HSA investing by listening to this episode of Retire with Ryan - you don’t want to miss it!

Resources & People Mentioned * www.morningstar.com

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