Retirement Starts Today Radio: Recent Episodes
Benjamin Brandt CFP®, RICP®
Benjamin Brandt wants to teach you how to retire! Listen in as Benjamin Brandt CFP©, RICP© answers the questions on the minds of the modern retiree, often joined by the top experts in the retirement planning industry. Ask Benjamin a question here: https://retirementstartstodayradio.com/ask-a-question/
A rule changed on January first that takes the tax deduction away from catch-up contributions for a lot of people who are still working. We'll run through all the 2026 numbers and talk about whether it's still worth doing.
In our Listener Question segment, a fellow in Connecticut is worried that the low-income window he's been counting on for Roth conversions may never show up, because his wife is a high earner four years younger than he is. He's come up with a clever workaround.
And to close out the show we hear from a retired HR Manager. After building a successful career, he found a meaningful way to give back through Reading Partners, serving as a remote reading tutor for students who need extra support.
Resources:
- Article by Amy Arnott in MorningStar: Should Higher Earners Still Make 401(k) Catch‑Up Contributions?
- Reading Partners: https://readingpartners.org
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
Chris Heye makes the case in a Journal of Financial Planning article that the two retirement risks we obsess over might not be the two most likely to derail us. There are four risks in play, and the two nobody models are the ones quietly doing the most damage:
- Longevity Risk
- Market Risk
- Health Risk
- Decision Risk
I go into depth on those last two.
In our Listener Question, a 69-year-old retired engineer and do-it-yourselfer asks about setting up my plan for his wife who's just not into dollars and cents.
And in our Retire To Something segment: Debbie shares her "One Year Sabbatical" — and how she gives herself permission to figure out her purpose along the way.
Resource: Article by Chris Heye, Ph.D. in the Journal of Financial Planning: Beyond Sequence of Returns: The Four Risks to Retirement Security
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
Inflation again? Christine Benz over at Morningstar has three questions that tell you exactly how exposed you are - and how much retirees worry about inflation.
Then, a listener question from someone one year into retirement who says their pension check feels like it just shrank ten percent - and what they might do to remedy that.
And in our Retire To Something segment, Linda from Ontario, Canada, wanted a job at a cheese shop that wasn't hiring — and she applied anyway.
Resources:
- Morningstar article by Christine Benz: How Much Should Retirees Worry About Inflation?
- Christine Benz book: How to Retire: 20 lessons for a happy, successful, and wealthy retirement
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
If you've been anywhere close to a retirement podcast over the last 10-20 years, you've heard of the 4% rule. And like many people, you might have questions about it.
We're going to hear about it directly from the horse's mouth as we talk to Bill Bengen, who first articulated the 4% withdrawal rate as a rule of thumb for withdrawal rates from retirement accounts.
The 4% rule is not a rigid rule but a guideline. Its application requires careful consideration of individual factors, including health, life expectancy, and specific financial circumstances. Bengen encourages retirees to tailor their withdrawal strategies based on their unique situations. Our discussion also explored required minimum distributions (RMDs), which may necessitate higher withdrawals in later years of retirement. However, Bengen suggests that for most people, RMDs would not exceed the calculated withdrawal rates until a very advanced age, making the two compatible.
Core Points:
- The 4% rule, initially a worst-case scenario calculation, suggests a 4% annual withdrawal from retirement savings. This has since been refined
- Research indicates a more generous 4.7% withdrawal rate is now possible due to portfolio diversification and lower investment costs
- Higher withdrawal rates might be feasible (5-5.5%), depending on market valuations and inflation
- Early retirement withdrawal timing significantly impacts long-term success
- Consider individual circumstances, market conditions, and inflation when adjusting withdrawal strategies
Resource: Bill Bengen's book, "A Richer Retirement: Supercharging the 4% Rule to Spend More and Enjoy More" https://www.bengenfs.com/order-my-book
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
Fritz Gilbert says the adage that "Retirement is a marathon, not a sprint" is backwards. He cites an average age where health starts to decline is 64, so sprinting in those first few years when the average retiree is 61-63 makes sense.
We will dig into that idea, then follow it up with a listener who can't get her husband to think about anything but saving money.
Resource:
- Article by Fritz Gilbert: Retirement is a Sprint, Not a Marathon
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
The fear of running out of money in retirement turns out to be mostly backwards. For super-savers, the data says the opposite usually happens. A piece from Danielle Labotka at Morningstar makes the case that for a lot of retirees: Being too cautious with your spending is actually the bigger risk.
In our listener question segment: Anonymous wants to give money to her kids with warm hands, not cold. How much you can safely give today without putting your own retirement at risk?
And then we'll wrap up with our Retire To Something segment: Dabbling in a little of everything.
Resources:
- Article by Danielle Labotka at Morningstar: Is Your Cautious Retirement Spending Doing More Harm Than Good?
- Book by Bill Perkins: Die With Zero: Getting All You Can from Your Money and Your Life
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
Every year, thousands of retirees pay an extra penalty to the IRS — and almost none of them see it coming.
What catches them off guard isn't a penalty for owing too much. You can do everything right — claim Social Security at the right age, run picture-perfect Roth conversions, manage your withdrawals down to the dollar — and still get a letter from the IRS charging you extra.
I reworked a framework from an article by Sheryl Rowling at Morningstar into four clean, completely legal ways to avoid getting tax penalties.
After that, we've got a listener question: A retiree writes in and says, "I don't want to think about money. My plan is tested, I have enough — so what's a simple checklist I can use to stay on track?"
And to close the show, our Retire To Something segment where Clif traded his to-do list for a garden plot — and found community, leadership, and a whole lot of homegrown vegetables in the process.
Resource: Article by Sheryl Rowling at Morningstar: 5 Ways to Avoid Tax Penalties
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
Americans don't feel great about the economy. Consumer Sentiment just hit the lowest reading in roughly 75 years.
Ben Carlson over at A Wealth of Common Sense dug into why that might be, and what it means for those of us trying to enjoy a retirement when it always feels like the second shoe is about to drop.
In our Listener Question segment, we hear from someone who is sitting on 50x their annual spending - and they can't get their spouse to spend it.
Wrapping up the episode we hear from Karen in our "Retire To Something" segment. She's thru-hiking thousands of miles and loving it.
Resource:
- Article by Ben Carlson of A Wealth of Common Sense: The Lowest Consumer Sentiment EVER
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
There's a decision your surviving spouse is going to make about your IRA, after you're already gone, that can either cut short or stretch out how long your kids get to keep that money growing — and most people don't even realize the choice is being made. We're going to zero in on one option in particular, one that sounds a little crazy on its face: turning down an inheritance on purpose.
In our Listener Question segment: A listener wrote in about a family farm, a couple of brothers he'd rather not be in business with, and whether saying "no thank you" to his own share is the way to keep the peace in the family.
And then to close things out, we'll head over to our Retire To Something segment where Shawn figured out how to check just about every box that matters.
Resource: Article by Denise Appleby at Morningstar: The IRA Decision That Affects Your Kids
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
You've heard it said a hundred times: Spend the money, make the memories, don't die with regret.
However, for certain kinds of retirees, dying as the richest person in the graveyard isn't a tragedy at all. The comfort of simply having the money can be worth more than anything you'd ever buy with it.
Today, we begin with an article, The Many Utilities of Retirement, which talks about RPIG (the Richest Person In the Graveyard) versus FORO (the Fear of Running Out of money).
It's an interesting look at the juxtaposition.
After that, a question - listener that calls himself the millionaire next door — he'll never spend what he's saved, it's all headed to the kids and grandkids, and yet he still mows his own lawn and changes his own oil. He wants to loosen up and spend a little more… but he also kind of loves the life he's already got. So what do you tell a guy like that? I'll give you my take.
And we wrap up the show with our Retire To Something segment.
Resource:
- Article by William Bernstein and Edward McQuarrie: The Many Utilities of Retirement
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
If you want to spend more at the beginning of retirement, which withdrawal strategies actually let you do that? This week's Retirement Headline from Amy C. Arnott called "The Best Strategies for Boosting Starting Withdrawal Rates in Retirement" answers that question.
For our Listener Question: A listener wrote in wondering whether sequence-of-returns risk really fades away after the first decade of retirement, and if so — whether that means it's safe to bump withdrawals up to 5.5% or more later in the game.
And we wrap it up with another Retire To Something segment.
Resource:
Article by Amy C. Arnott at Morningstar: The Best Strategies for Boosting Starting Withdrawal Rates in Retirement
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
Imagine a lifetime spent diligently saving your acorns, only to face a mental roadblock when it's time to enjoy them. Dana Anspach, CFP®, RMA®, and author of "Living Off Your Acorns," shares how this common challenge impacts retirees and introduces the critical "pre-go" phase.
This episode offers a fresh perspective on retirement planning, emphasizing conscious consumption of retirement funds.
Key Takeaways:
- Identify and plan for the crucial "pre-go" phase of retirement, which involves significant financial and identity shifts
- Overcome the "super saver" mentality to give yourself permission to enjoy retirement spending and experiences
- Understand that retirement is not a single phase but multiple stages, each with unique challenges and opportunities
- Recognize the emotional and psychological hurdles of transitioning from saving to spending retirement funds
- Explore how to find purpose and joy beyond work through hobbies, travel, and charitable giving
Resources Mentioned:
- Dana's new book: "Living Off Your Acorns: Your Guide To The Four Phases of Retirement"
- "Control Your Retirement Destiny" by Dana Anspach
- "Die with Zero" by Bill Perkins
- "The Prosperous Retirement: A Guide to the New Reality" by Michael Stein
- Your 12 Good Years article by Dan Hewlett
Connect With Dana Anspach:
- Website: https://www.sensiblemoney.com
- YouTube: https://www.youtube.com/@makingretirementmakesense
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get Benjamin's book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
What happens when you reach financial independence by paying off a low interest rate mortgage early? Or being renter instead of buying a home and growing equity? I'll explain why hitting that milestone earns you the right to ignore some of the most stubborn rules in personal finance.
For our Listener Question: A listener wants to know how to think about real estate as part of a retirement portfolio — should they own a rental property for income?
And we will wrap it up with another listener-sourced segment called "Retire to Something".
Resource: Article from Business Insider: "There's No One-Size-Fits-All Path to Early Retirement"
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
According to Capital One Shopping - 89% of shoppers have made some kind of impulse buy. More than half have spent more than $100 on a whim, and the average shopper made impulse buys adding up to $282 a month.
A classic rule is to wait 24 hours to help curb impulse buys, but on today's show, I'm going to flip that rule on its head and explain why my listeners might actually need the opposite advice.
After that, I'll answer a listener question about switching from saving for decades to a spending mindset? You'll learn about my "half for me, half for you" framework.
And to wrap up the show, I'll share what our happiest retired listeners are up to in our newest listener-sourced segment "Retire to Something".
Resource: Article by Marc Buerti at Money.com: The "24-Hour Rule" That Keeps Retirees From Blowing Their Savings on Impulse Buys
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
Imagine having 10 overstuffed boxes of grandma's collections in your living room.
That's the story that leads our show from a couple in Florida who received these items as hand-me-downs from a boomer parent trying to clear them out.
The article features estate specialist Julie Hall, who says Millennials don't want painted china or antique furniture — they want Pottery Barn and IKEA. When Hall asked her own daughter what she'd want from her house, the answer was, "Just the jewelry". Hall's takeaway? That response gave her permission to let go.
We discuss this growing issue in our headline segment before answering a listener's question: "Do you have any advice on giving money to adult children while still living? Giving them some of their inheritance while they are younger and need money more than later in their life when my husband and I pass away."
Then we wrap it up with a retired pastor who spends his time diving into a reef tank full of sharks at the Toledo Zoo in our "Retire To Something" segment.
Resource:
Article by Richard Eisenberg: Sorry, Your Kids Don't Want Your Stuff or Your Parents' Stuff
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
There is roughly a ten-year window centered around your retirement date, five to ten years before, and five to ten years after called "The Retirement Risk Zone". This is when you're most vulnerable to sequence-of-returns impacting the longevity of your withdrawal strategy.
We cover this idea brought up by Wade Pfau in an episode of "The Long View", a show hosted by Christine Benz, Amy C. Arnott, and Ben Johnson - specifically:
- The Retirement Risk Zone
- The Rising Equity Glide Path
- The Social Security Delay Bridge
After that, I answer a listener question: Frank is planning to delay Social Security and wants to know — does it make sense to take bigger withdrawals from the portfolio in your 60s and then scale back in your 70s once Social Security kicks in? Short answer: yes — but how you do it matters a lot. We'll walk through it.
Finally, in our "Retire to Something" segment: After 50 years in the workforce, a former Senior of VP in Manufacturing inspires us with ideas he is doing in his retirement.
Resources:
- Episode of The Long View from Morningstar, featuring Wade Pfau: What Is the 'Retirement Risk Zone?'
- The Retirement Starts Today Blueprint
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
Why is it so hard to spend the money you spent a lifetime saving?
This is a question from Janet Bodnar in a Kiplinger article. She admits that one of her guilty pleasures in retirement is treating herself to a casual lunch while she's out running errands. Why does she feel so guilty?
Christine Benz from Morningstar is quoted in the article, which we discuss at length in this episode.
Then a listener asks a question I think a lot of you are wondering: "How am I supposed to figure out what I want to do in retirement when I can barely find time to do laundry while I'm still working?" Great question!
And in our "Retire To Something" segment, Lois from the Southeast turned a lifelong love of animals into a retirement packed with purpose — volunteering at a zoo, working part-time at an aquarium, and spending half the year with manatees!
Resource:
Article by Janet Bodnar in Kiplinger: Stop Sweating the Small Stuff When You Spend Your Retirement Money
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
Your beneficiary designations are probably outdated. Not because you made bad decisions, but because you made them once and never looked again. We're going to walk through five areas where these forms commonly go wrong, and what you can do about it.
For our Listener Questions segment: "What's the best way to position any assets I have for when my wife and I pass — to most easily and efficiently pass on to our kids?"
And this week's "Retire to Something" listener talks about her definition of retirement, which might be the simplest and best one yet.
Resource:
Article by Daniel P. Michaelse on WealthManagement.com: "Five Beneficiary Designations to Review Now "
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
How do higher oil prices impact stock market returns? Ben Carlson at A Wealth of Common Sense challenges the assumption most people have, but with some genuinely surprising and con historical data.
For those who retired right around 2022, our Listener Questions segment might interest you. A listener is comparing bonds to guaranteed products like MYGAs and annuities with income riders. They're seeing five and a half to six percent guaranteed payouts and wondering: are these actually better than bonds for generating retirement income?
Then we wrap it up with our Retire "To" Something Segment: A listener who is only 2-5 years away from retiring wrote in with their very simple philosophy: "Never run away from a job. Instead, seek out the next better opportunity."
Resource:
Article by Ben Carlson: How Do Higher Oil Prices Impact Stock Market Returns?
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
What if you paid all your taxes - and still got hit with a penalty from the IRS?
Our retirement headline this week comes from Laura Saunders in the Wall Street Journal. Estimated tax penalties are skyrocketing, and retirees and investors are some of the most likely to get caught in the trap.
We will cover that, then hop into our Listen Question: "What happens when you lose faith in fixed income as the foundation for your retirement plan?"
Then stick around to hear what our happiest retired listeners are up to in our newest listener-sourced segment "Retire to Something"
Resource: Article by Laura Saunders in the Wall Street Journal: Estimated Taxes Are a Pain. Here's How to Avoid Costly Penalties.
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
Some desirable investment income - like interest and dividends - might actually hurt high-net-worth investors' bottom line. This comes from an article by Larry Swedroe in Financial Advisor Magazine.
He outlines four hidden costs that can quietly erode over 1% of after-tax returns each year:
- Cash Drag
- Tax Deferral
- Step-up and Charitable Giving Advantage
- Financial Planning Flexibility
For our Listener Question: "Are brokerage account gains taxed before the money is withdrawn?" If you've ever wondered how your taxable investment account stacks up next to your IRA or Roth, this one's for you. We dig into the 'magic middle' of retirement savings and clear up how and when Uncle Sam wants his share.
And to wrap up the show, Dave in New York shares his work of raising dogs to help the blind. 🦮
Resource: Article by Larry Sweroe in Financial Advisor Magazine: The Hidden Cost Of Investment Income
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
You might have received a Social Security cost-of-living increase this year — but did your net check actually go up?
A recent Wall Street Journal article highlights how rising Medicare premiums and IRMAA surcharges are offsetting those increases for millions of retirees - and "takes a bigger bite out of Social Security checks".
Then, a listener writes in "How to convince my husband's parents to spend their money. We don't need it." Tune in to hear that one!
And we wrap it up with our "Retire to Something" segment from Dave in Massachusetts.
Resource:
Wall Street Journal article by Laura Sanders: The Medicare Charge That's Taking a Bigger Bite Out of Social Security Checks
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
Sheryl Rowling positions income tax returns as diagnostic tools — not merely a compliance document — and outlines four common red flags that suggest a client failed to take advantage of proactive tax strategies.
Here are "4 Tax Return Red Flags That Signal Poor Tax Planning":
- Very Low or Zero Taxable Income
- Charitable Giving After Age 70½ Without Using QCDs
- Donating Cash Instead of Appreciated Securities
- Holding Municipal Bonds in Low Tax Brackets
For our listener question: "I'm in a job I hate and would love to scale back to something that could pay less but be more enjoyable -- how can I evaluate if that is possible?". Most people think the first question is: "How much do I have saved?", but that's actually backwards. I share a calculation for cash burn that matters more than your portfolio balance.
And to wrap up the show in our "Retire to Something" segment, I'll share Jerry's story that shows us how retirement isn't about winding down — it's about doubling down on growth, adventure, and intentionally building an active, meaningful life.
Resource: Article by Sheryl Rowling on Morningstar: 4 Tax Return Red Flags That Signal Poor Tax Planning
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
Retirees obsess over the exact safe withdrawal rate they think they'll need while simultaneously building layer after layer of backup plans. Dividends, buckets, multiple years of cash, constant Monte Carlo recalculations are all done in the name of safety.
Jordan Grumet's argument to this problem is simple and provocative: If you believe in the safe withdrawal rate, then act like it. Stop stacking contingencies on top of contingencies and chasing 100% certainty in a world where it doesn't exist.
We go over Jordan's article "Stop Chickening Out" in our headline segment.
Then we answer Robert's question: "What if you just use the Traditional IRA for living expenses instead? If both approaches reduce the IRA balance and lower future RMDs, is Roth conversion strategy overhyped?"
And we wrap up the show with a story from one of our happiest retired listeners in our newest listener-sourced segment "Retire to Something".
Resources:
Article: "Stop Chickening Out" by Jordan Grumet Jordan Grumet interview on our show: https://retirementstartstodayradio.com/purpose-vs-purpose-an-interview-with-doc-g-ep-382
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
Sheryl Rowling from Morningstar argues that the greatest danger in retirement isn't the stock market — it's the constant fear of running out of money.
We will walk through her eight "anchors" from the article posted on Morningstar.
Anchor 1: Confirm Your Sustainable Spending Level Anchor 2: Embrace Flexibility in Down Markets Anchor 3: Recognize That Spending Often Declines With Age Anchor 4: Create a Recession Buffer Anchor 5: Reduce Future Tax Uncertainty Anchor 6: Maximize Guaranteed Income Anchor 7: Protect Against Long-Term Care Costs Anchor 8: View Home Equity as a Backstop
For our listener question: I've said before that accumulation is the easy part - and distribution is harder. But Kevin wrote in to say "wait a second… don't prices move around when you're buying or selling? So what's the real difference?" We're going to unpack why dollar-cost averaging on the way in is not the same thing as sequence risk on the way out — and why that distinction matters once you're living off the portfolio.
And to wrap up the show, we'll hear from Bernie about how he is blending service & fun for an even better retirement.
Resource:
Article by Sheryl Rowling in Morningstar: 8 Tips to Stop Worrying About Running Out of Money in Retirement
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What does research say about retirement withdrawal strategies that are specifically designed to leave more money behind? We'll walk through what the research says works best, the trade-offs involved, and why the "right" strategy depends on what you're really trying to optimize in retirement.
Quote: "Smaller gifts sooner can be more impactful than larger gifts later." - Benjamin Brandt
We've also got a great listener question from Tom about the three big company retirement plans — 401(k)s, 403(b)s, and 457s. On the surface they all look the same, but the rules under the hood are very different, and those differences can have a huge impact on taxes, flexibility, and when you can actually use your money. We'll break down what "qualified" really means, which accounts may be easier to tap earlier, and how to think about simplifying all of this as you head into retirement.
And we wrap up the episode with what our happiest retired listeners are up to in our "Retire to Something" segment.
Article:
The Best Retirement Strategies for Leaving Money Behind by Amy C. Arnott, CFA in Morningstar
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
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- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
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Is there an ideal level of wealth? Our Retirement Headline comes from Nick Maggiulli, who starts by rejecting the usual vague answers—"it depends," "on your own terms," or "whatever makes you happy." Instead, he tries to give a practical, math-based answer that works for most people, even if it's not perfect for everyone.
Then our listener question is "How should we think about future income sources—like Social Security and pensions—in terms of our net worth? Should we include the present value of that income?"
Finally, in our "Retire to Something" segment, we're learning from an anonymous HR manager that is deploying their skillset in a totally new way in retirement.
Resource:
Article by Nick Maggiulli in Of Dollars & Data: The Ideal Level of Wealth
Connect with Benjamin Brandt:
- Subscribe to the This Week in Retirement: http://thisweekinretirement.com
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- Work with Benjamin: https://retirementstartstoday.com/start
Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
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Andrew Rosen, CFP®, CEP, writes in a Kiplinger article how to walk through several common reasons people keep working — even as retirement comes into view.
Rather than looking at money first, the author looks at motivation and breaks it into five broad categories:
Category 1: I must keep working Category 2: I probably should keep working Category 3: I want to keep working Category 4: I'm afraid to retire Category 5: I don't know why I'm still working
The author suggests borrowing from a concept by Artiste called "First Principles Thinking". Listen in for the answer.
Also, our listener Maria asks about the timing of your first RMD (Required Minimum Distribution): "If we want to skip our 1st RMD and take two the following year, how does that work?"
Resource: Article by Andrew Rosen, CFP® in Kiplinger's "Why Are You Still Working?"
Connect with Benjamin Brandt * Subscribe to the This Week in Retirement: http://thisweekinretirement.com * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com * Work with Benjamin: https://retirementstartstoday.com/start
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Can you relate to this statement: "They've done everything right financially… but still can't bring themselves to spend the money they've saved."
In today's Retirement Headline, Meghaan Lurtz explains why underspending in retirement is usually rooted in psychology, not math.
Lurtz shares several common barriers:
- Fear of future dependence
- Doom forecasting
- And an Identity tied to being a saver
Resource:
- Article by Meghaan Lurtz: "Helping Underspenders And "Savers" Understand They CAN Spend More With 4 Stages Of "Experiments"
Listener question: "If I plan to retire at 65 1/2 or 66 and sign up for Medicare before 65 - but not for Parts B and D (because of my employer provided insurance) - will I have to pay a penalty to get Parts B and D (and Supplements) at a later date when I actually retire?"
Listen in to learn about creditable coverage and how penalties can stack up on themselves.
Connect with Benjamin Brandt * Subscribe to the This Week in Retirement: http://thisweekinretirement.com * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com * Work with Benjamin: https://retirementstartstoday.com/start
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"Just 10% plan to wait until age 70" to claim Social Security in retirement — and it's not because of a knowledge problem.
We discuss this from a new survey that suggests most Americans may be claiming Social Security earlier than is financially optimal because fear is driving the decision. They understand the math—but they're still claiming early.
We also answer a listener 2-part question about where to park short-term cash in inflationary times and to actually buy Treasuries.
And we wrap up the segment to bring you our newest segment from you, the audience: "Retire to Something". If you'd like to share your story about what you are retiring "to", simply look for the link in the new "This Week in Retirement Newsletter" and fill out the super-quick form.
Connect with Benjamin Brandt * Subscribe to the This Week in Retirement: http://thisweekinretirement.com * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com * Work with Benjamin: https://retirementstartstoday.com/start
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Paul Morrison details how Medicare premiums, including the IRMAA surcharge, are inflating at a rate higher than Social Security COLAs. This disparity is causing concern, as premiums can potentially consume a retiree's entire Social Security benefit over time, especially for those in higher IRMAA brackets for an extended period.
Paul provides concrete examples of how extended periods in higher IRMAA brackets could lead to Medicare premiums exceeding Social Security benefits, forcing retirees to pay out-of-pocket.
Resources:
Contact Paul Morrison: paul@irmaacertifiedplanner.com Website: irmaacertifiedplanner.com
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A special recording from Andy Panko for his Retirement Planning Education Podcast: We discuss how the financial industry is evolving, the common struggles of "super savers" in retirement, and the importance of aligning financial decisions with life goals, not just spreadsheets.
We talk about the role of Monte Carlo simulations, the importance of flexibility in financial plans, and the evolving role of advisors in a changing world.
It's a conversation that encourages you to find joy and flexibility in your retirement journey.
Resources: Andy's podcast: Retirement Planning Education
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter * Work with Benjamin: https://retirementstartstoday.com/start
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Nick Maggiulli's latest article in Of Dollars & Data challenges one of the core ideas that drives personal finance blogs, podcasts, and even some of our own thinking — the belief that financial independence should be the ultimate goal.
We explore the surprising downsides of chasing early retirement, the difference between financial independence and financial freedom, and why something called "Coast FIRE" might be the real goal worth aiming for.
I also answer a listener question: What can retirees do to fight back against inflation? One listener asks how to protect their buying power as costs keep rising. We go over several practical, actionable ways to stretch your dollars and build an inflation-resistant retirement.
Resource:
Article by Nick Maggiulli in Of Dollars & Data: Why Financial Independence is Overrated
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New research from David Blanchett, head of retirement research at PGIM, challenges one of the biggest assumptions in retirement planning: that happiness in retirement depends on maintaining a constant—or even increasing—level of spending.
⬇️ Upon entering retirement, households experience a median consumption decline of about 20%.
This drop is often viewed as a red flag in traditional financial planning models.
However, Blanchett argues that this decline is not necessarily problematic, especially when you look at how financial well-being changes over time.
☎️ Then on our listener question, we hear from a 34-year-old investor who's been all-in on stocks since taking Dave Ramsey's advice early in their career. Now, they're wondering how and when to start easing into a more balanced portfolio with bonds.
We'll talk strategy, psychology, and sprinkle in some data on market highs that might surprise you.
Resource:
Article by John Manganaro from ThinkAdvisor: Spending Drops in Retirement, but Satisfaction Doesn't: Blanchett
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Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Only 3% of Americans have saved $1 million for retirement. according to 24/7 Wall St. & AOL. I'll break down what that means—and why your personal number might be more important than any national average.
After that, I answer a listener question where we tackle how to cover healthcare costs in early retirement—specifically for a 58-year-old retiree with a non-working spouse and three adult kids under 26 still on the family plan. We'll explore ACA strategies, income planning, and a clever way to help the kids get their own coverage at a big discount.
Resource:
AOL article by David Beren: A Look at U.S. Workers Who've Accumulated $1M in Retirement Funds
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Most people focus on saving for retirement, but what happens when you actually get there? Retirement isn't just about having enough money—it's about managing risks that can threaten your financial security and lifestyle.
In this episode, we explore Five Key Retirement Challenges (and Solutions), inspired by a Kiplinger's Personal Finance article by Walt West. From unexpected market downturns to rising healthcare costs, these challenges can catch retirees off guard if they're not prepared.
We break down each challenge—financial instability, healthcare expenses, taxes, inflation, and estate planning oversights—and discuss practical strategies to navigate them. Learn how to structure a flexible withdrawal plan, prepare for long-term care costs, use tax-efficient strategies like Roth conversions, and ensure your estate plan protects your loved ones.
Plus, we tackle a listener question about using a MIGA ladder strategy to bridge the gap until Social Security—offering insights into the pros and cons of annuities in a retirement portfolio.
If you want to retire with confidence and avoid costly missteps, this episode is a must-listen. Whether you're years away from retirement or already in it, understanding these key challenges and their solutions can help you make smarter financial decisions for the road ahead.
Resources & People Mentioned * The Retirement Podcast Network * Kiplinger's Personal Finance "Five Key Retirement Challenges" by Walt West * Fidelity's Healthcare in Retirement Report
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Many retirees enter their golden years with the goal of financial security, but what if the biggest risk isn't running out of money—it's not spending enough of it? A surprising new study reveals that retirees are withdrawing just 2% a year from their savings—barely half of what's traditionally considered safe.
This cautious approach might seem responsible, but it often leads to unnecessary frugality, missed experiences, and larger-than-expected tax burdens later in life. The hesitation to tap into personal savings, even when there's plenty available, raises an important question: What's stopping retirees from spending with confidence?
Research shows that retirees feel much more comfortable spending guaranteed income from sources like Social Security and pensions while being reluctant to withdraw from their own investments. This behavioral tendency can leave money unspent for decades, only to be forced out later through required minimum distributions (RMDs) that create tax inefficiencies. Meanwhile, large inheritances often arrive too late to make a meaningful impact on the next generation.
Rethinking the 2% mindset means understanding what keeps retirees locked into ultra-conservative spending habits and finding ways to turn savings into income that feels reliable. A simple shift—such as automating monthly withdrawals or adjusting expectations around financial security—can open the door to a more fulfilling retirement. The money was saved to be spent, and spending it well can be just as important as saving it wisely.
Spending too little can be just as costly as spending too much. With the right approach, retirees can enjoy their wealth now while keeping future financial security intact.
Resources & People Mentioned * The Retirement Podcast Network * David Blanchett – Head of Retirement Research at PGIM DC Solutions * Michael Finke – The American College of Financial Services * Die With Zero by Bill Perkins – Book on intentional retirement spending
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter * Work with Benjamin: https://retirementstartstoday.com/start
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Are you spending too little in retirement, worried you might outlive your savings? Many retirees struggle to strike the right balance, often holding back on enjoying the wealth they've worked a lifetime to build. I'll show you how to overcome those fears and spend with confidence while still planning for the future.
What about real estate? Whether you're thinking about renting instead of owning, leveraging home equity for long-term care, or even investing in rental properties, the right approach can make all the difference. I'll share practical insights to help you figure out what works best for your lifestyle and financial independence.
Retirement is your chance to live on your terms, free of unnecessary stress and worry. By understanding the psychology of spending and making thoughtful decisions about your biggest assets, you can enjoy the freedom and security you've earned. Let's get started.
Outline of This Episode * [0:00] The Start of 2025 * [1:50] Spending Struggles in Retirement * [4:40] Connecting with Your Future Self * [6:12] Underspending Biases and Longevity Risk * [12:01] Real Estate in Retirement * [14:10] Renting vs. Owning * [16:10] Home Equity for Long-Term Care
Resources & People Mentioned * The Retirement Podcast Network * Morningstar Article: Tips to spend less or more in retirement by Samantha Lamas. * Benjamin Brandt's Book: Retirement Starts Today. * Capital City Wealth Management: Benjamin Brandt's financial planning firm.
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter * Work with Benjamin: https://retirementstartstoday.com/start
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Major charitable-giving changes are set to take effect next year under the One Big Beautiful Bill Act. As a result, 2025 may be the best—and possibly last—great year to make a big charitable gift and get the full tax benefit in the same year.
Listen in to hear the changes that take place in 2026 that could make 2025 the best year to use donor advised funds.
In our listener question segment, Christie inquires about buying a home in retirement: "Should we withdraw from investments, or use a mortgage?"
Resource:
Article by Ben Mattlin in Financial Advisor Magazine: "Why Some Advisors Are Daffy For Donor-Advised Funds"
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A new report says retirees who use a so-called "bridge strategy" can actually spend more and need fewer assets to retire securely.
That's right. By delaying Social Security and using other savings to "bridge the gap," you could improve your lifetime income, reduce longevity risk, and build more peace of mind into your plan.
We will break down the research and find ways to make Social Security work harder for you.
After that, I'll answer a listener question: What's the difference between a 5 year MYGA and a 5 year SPIA?
Resource:
Article by John Manganaro on ThinkAdvisor: This Social Security Strategy Gives Retirees More to Spend
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter * Work with Benjamin: https://retirementstartstoday.com/start
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If something promises higher returns, it comes with higher risk — even if that risk isn't easy to see. And if something promises to protect your downside, it's usually charging you for it through fees, limited upside, or long-term lockups.
Today's headline from Ben Henry-Moreland fits that idea perfectly. "Why 'Downside Protection' ETFs Don't Protect Portfolios As Well As A Stock-Bond Mix (In The Long Term)".
After that, I'll answer a listener question about taxes & avoiding underpayment penalties from a surprise inheritance. Should they make an extra quarterly payment to the IRS to avoid penalties, or is there a smarter way to handle it? I'll explain how the safe-harbor rules work, and why a simple IRA-withholding trick can sometimes do the same job even better.
Resource:
Article by Ben Henry-Moreland on Kitces.com: Why "Downside Protection" ETFs Don't Protect Portfolios As Well As A Stock-Bond Mix (In The Long Term)
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter * Work with Benjamin: https://retirementstartstoday.com/start
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A few episodes ago, we covered Derek Tharp's research suggesting that not everyone should delay until 70 — especially those with shorter life expectancies or limited assets.
This week's headline brings the opposite perspective: Michael Finke argues that for higher-income retirees who expect to live longer, claiming early is almost always a mistake — and that fear-based decisions about Social Security's solvency can cost retirees hundreds of thousands in lifetime income.
Plus, a listener asks about giving with warm hands vs cold hands - which is a euphemism for giving during life vs giving after death. How much can they give without fear of running out of money?
Resource:
- Michael Finke article on ThinkAdvisor: Why Advisors Should Never Recommend Social Security Claiming at 62
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Do lower-cost funds tend to outperform pricier ones over time?
Jeffrey Ptak analyzed fifteen years of performance data covering virtually every U.S. mutual fund and ETF. He divided them into five "cost buckets," from the cheapest 10% all the way up to the most expensive 10%. He then compared each group's average monthly return against its peers within the same category.
The result? A clean, almost perfect staircase of performance.
The cheapest funds outperformed the second-cheapest, which outperformed the middle, which beat the expensive ones — and so on — all the way up the ladder. The longer the time horizon, the wider the gap became.
That's from Jeffrey's Peak Substack piece "It's So Simple: Fees Predict Performance", which we go through in this episode.
We also answer a listener question from Ray about a 5-year SPIA, continuing the listener question from the previous episode.
Resource:Jeffrey Ptak article from Substack: It's So Simple: Fees Predict Performance
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com * *Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter * Work with Benjamin: https://retirementstartstoday.com/start
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Vanguard Research put out a paper called "The Emotional and Time Value of Advice" (June 2025).
It claims that there are "emotional benefits and time-saving value that paid professional financial advice provides to clients."
In other words: The benefit isn't the portfolio or financial advice, but the emotional and time-saving value getting paid professional advice can provide.
Then for our listener question: Gary wants to know how his Health Savings Account (HSA) interacts with Medicare. Can you pay Medicare premiums from an HSA at a later date like you can with qualified medical expenses paid out of pocket? Great question!
Resource: Vanguard Study: "The Emotional and Time Value of Advice" paper
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter * Work with Benjamin: https://retirementstartstoday.com/start
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Only about 4% of retirees actually wait until age 70 to claim Social Security, despite the financial benefits of delaying them.
This comes from an article by Derek Tharp at Kitces.com titled “The Flaws In Using A 0% Discount Rate To Justify Delaying Social Security”. It takes a hard look at why the common advice to “wait until 70” might not always hold up in the real world.
Tharp argues that the assumptions baked into much of the research—especially the idea that a future Social Security dollar is worth the same as a dollar today—can tilt the math toward delay, while ignoring very real risks like mortality, sequence of returns, policy changes, and even health-span.
I'll share the points and give my commentary on the topic. Thanks for hitting the Play button!
Then in our listener question segment: We’ll talk about whether it ever makes sense to use a SPIA to bridge the gap until Social Security. What are the pros and cons, and would I ever recommend one?
Resource: Article from Derek Tharp on Kitces.com: Why Delaying Social Security Benefits Isn’t Always The Best Decision
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Our retirement headline is from a ThinkAdvisor article titled "Ed Slott: Roth Conversions Are Trickier Under New Tax Law" by Melanie Waddell.
“With the extended tax cuts under President Trump’s recently passed tax and spending law, ‘Roth conversions should be accelerated to take advantage of more years of low tax rates,’ according to Ed Slott of Ed Slott & Co.
‘You never want to leave a low tax bracket unfilled,’ he said. ‘Low tax brackets need to be maximized each year, but how much to convert each year can be trickier now since many of the new tax breaks have income caps.’”
That’s the crux of it — Roth conversions still make sense, but now they’re bumping up against some new income cliffs. I take the first few minutes to share a few key numbers.
Then our listener question is actually one I asked myself after seeing a post about company financials being reported less frequently than quarterly. I go through the pros and cons of making this change.
Resources:
Article by Melanie Waddell, courtesy of ThinkAdvisor.com: Ed Slott: Roth Conversions Are Trickier Under New Tax Law
Article on Reuters by Johann M Cherian, Lewis Krauskopf and Douglas Gillison: Trump renews calls for ending quarterly reports for companies
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Should I collect Social Security early & invest the proceeds into the stock market? This is the age-old question I see on a nearly daily basis in retirement forums.
An article from Morningstar - written by Christine Benz and features a conversation with Social Security expert Mary Beth Franklin - gives me the basis for sharing six obstacles for claiming instead of waiting.
Also, we share a listener question about whether retirees should stick with the traditional 60/40 stock-and-bond portfolio or branch out into alternatives like gold, REITs, or managed futures to help with risk management and withdrawal rate.
Resource:
Article by Christine Benz featuring Mary Beth Franklin on Morningstar: Does It Make Sense to File Early for Social Security and Invest in the Market?
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Inflammatory headlines are "Clickbait", and I am not immune to falling for them.
"Social Security recipients set to face an $18,000 benefit cut in just seven years" is the most recent culprit in my Google feed - with an image of a Social Security check with a wrecking ball smashing straight through it.
The good news is the headline is pretty far from reality for most people, and I explain why.
Listen in to understand who might actually be impacted, and why most people actually won't.
Source:
Article by Emily Peck on Axios: "Social Security recipients set to face an $18,000 benefit cut in just seven years"
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"Only 5% of retirees say they’re living the dream and 19% are living the nightmare." says Deb Boyden in an article from Yahoo Finance. Deb provides three lessons to protect your future, which we dig into to see how it applies to your retirement:
Lesson 1: You’re Probably Not Saving Enough Lesson 2: Expect the Unexpected Lesson 3: Winging It Won’t Get You There
In our Listener Question segment, we talk about the pro rata rule and Roth conversions. It’s one of those areas that seems simple on the surface but trips a lot of people up once you start digging in, so we unpack what the pro rata rule really means and why, in most cases, an extra step at the point of retirement, and a bit of double-checking will keep things as clean and simple as possible.
Resource:
Article on Yahoo Finance from Deb Boyden: "Only 5% of retirees say they’re ‘living the dream’ and 19% are ‘living the nightmare.’ Here are 3 lessons to protect your future"
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If you’ve saved more than a million dollars, that puts you ahead of 90% of your peers. Statistically, that makes you a super saver. But one of the biggest challenges super savers face is this: it’s hard to spend your own money.
In this episode, I share one exercise that can help break some of those old habits and open the door to a more fulfilling retirement.
A Practical Exercise
Think back over the last year or two and pick a trip that you really enjoyed. Itemize all the spending decisions you can remember:
- Where did you go?
- How did you get there?
- How long did you stay?
- What did you eat?
- What souvenirs did you buy?
Take each line item and triple it.
Then think of two or three ways you could possibly spend that new tripled amount.
Listen to the rest of the episode and learn how we can rewire our brains from saving mode to spending mode.
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We’re taking another look at one of retirement planning’s sneakiest pitfalls — underestimating your own life expectancy.
We explore why smart people make short-sighted Social Security decisions, how psychological biases can distort your thinking, and why planning to live a long time isn’t pessimistic.
Then, our listener question covers the nuts and bolts of how to apply for Social Security (online, phone or in-person), a critical heads-up for widows who want to claim survivor benefits without accidentally locking in reduced retirement benefits, and what happens when spousal benefits enter the mix after one spouse files before the other.
Resources:
- The (F)Law of Averages: Episode 412
- Article by Rick Kahler of Advisor Perspectives: Underestimating Your Life Expectancy: Don’t Let Your Brain Shrink Your Retirement Benefits
- Applying for Social Security benefits: ssa.gov
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We’re going inside the new tax rules for retirees.
From a brand-new $6,000 deduction for seniors to major changes in how charitable giving is handled, the One Big Beautiful Bill Act has reshaped key parts of the retirement tax landscape.
We’ll break down what’s changed, what’s just political spin, and what you can do right now to take advantage of these new rules.
After that, we answer a listener question: Have you ever wondered what the letters behind a Financial Advisor’s name mean?
Resources:
- John Manganaro article from ThinkAdvisor: How the New $6,000 Tax Deduction for Seniors Really Works
- Article from Fidelity Charitable: One Big Beautiful Bill (OBBB): Impact on charitable giving
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Nick Maggiulli’s latest article in Of Dollars & Data challenges one of the core ideas that drives personal finance blogs, podcasts, and even some of our own thinking — the belief that financial independence should be the ultimate goal.
We explore the surprising downsides of chasing early retirement, the difference between financial independence and financial freedom, and why something called “Coast FIRE” might be the real goal worth aiming for.
I also answer a listener question: What can retirees do to fight back against inflation? One listener asks how to protect their buying power as costs keep rising. We go over several practical, actionable ways to stretch your dollars and build an inflation-resistant retirement.
Resource:
Article by Nick Maggiulli in Of Dollars & Data: Why Financial Independence is Overrated
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The (f)law of averages challenges a dangerous assumption we see far too often in retirement planning: The use of average life expectancy as a reliable planning target.
The question is: If you make it to retirement - are you already above average - and if that’s true, how do we use that in our planning?
I share six key takeaways from the article:
- Life expectancy is an average, not a prediction
- The mode — not the mean — may be more useful for planning
- Life isn’t neat and tidy
- Even “complete” life expectancy isn’t safe to use
- Relying on life expectancy is a planning shortcut — and not a good one
- The better tool is the survival curve
After that, I answer a listener question: Can you really self-insure for long-term care and use the tax code to make your dollars go further? One listener heard about using the medical expense deduction to offset the cost of care — and wants to know which types of care actually qualify. So, what does qualify?
Resource:
Article by Jeffrey Dellinger in Advisor Perspectives: Life Expectancy: The (F)Law of Averages
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Could heaven be an RV in a state park?
It is for Marian Barry, who became a traveling nurse after working in hospitals during the pandemic.
We share this story from a Business Insider article, pointing out that she lives on $2,972 a month in Social Security and is lovig life. "I literally live in heaven."
Key takeaways:
- Low-cost retirement living
- Lifestyle vs. possessions
- Community and mental well-being
- Flexibility in retirement
- Pursuit of happiness
- If any of this interests you - practice it first!
Then I share some of my thoughts from our Spring client meetings. I found some common threads from some our clients that seemed the most at peace - even during the reported "market turmoil".
Resource:
Article by Eliza Relman from Business Insider
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New research from David Blanchett, head of retirement research at PGIM, challenges one of the biggest assumptions in retirement planning: that happiness in retirement depends on maintaining a constant—or even increasing—level of spending.
⬇️ Upon entering retirement, households experience a median consumption decline of about 20%.
This drop is often viewed as a red flag in traditional financial planning models.
However, Blanchett argues that this decline is not necessarily problematic, especially when you look at how financial well-being changes over time.
☎️ Then on our listener question, we hear from a 34-year-old investor who’s been all-in on stocks since taking Dave Ramsey’s advice early in their career. Now, they’re wondering how and when to start easing into a more balanced portfolio with bonds.
We’ll talk strategy, psychology, and sprinkle in some data on market highs that might surprise you.
Resource:
Article by John Manganaro from ThinkAdvisor: Spending Drops in Retirement, but Satisfaction Doesn't: Blanchett
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There is a lot to cover in this episode, including new legislation that could impact your retirement.
Plus, 6 More Retirement Financial Myths to Avoid, and a listener with substantial assets who wants to know how to pay for a new car.
The OBBB
The One Big Beautiful Bill became public law on July 4, 2025. Included are:
- Lower Tax Brackets Are Now Permanent
- Larger Standard Deduction
- New Senior Bonus Deduction (2025–2028)
- Above-the-Line Charitable Deduction (2026–2028)
- Expanded SALT Deduction
- ACA Subsidy Planning Alert
- New Car Deduction
If you’re a client of ours - we’ll go into these changes in detail during our year-end appointments. If you really like the numbers, we’ll do a before & after to calculate your specific tax savings impacted by these changes.
Article: 6 More Retirement Financial Myths to Avoid
This article by Sheryl Rowling from Morningstar addresses these six myths:
- You Should Never Make a Big Splurge in Retirement 2. It’s Best to Give to Charity After You Die 3. Spending Less Is Always Better 4. You Must Pay Off Your Mortgage Before Retiring 5. Reverse Mortgages Are a Last Resort 6. Your Biggest Financial Risk Is a Market Crash
Resource:6 More Retirement Financial Myths to Avoid by Sheryl Rowling
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This week’s headline reads like a financial horror story — and unfortunately, it’s a true one. 😱
33-year-old Mr. Handy changed jobs and did what millions of Americans do every year: he requested a rollover of his 401(k).
Paychex, the provider managing his old employer's plan mailed him two paper checks: one for his traditional 401(k), and one for his Roth 401(k). They were intercepted in the mail, and over $114,000 vanished. Gone. Just like that.
This situation raises some serious questions. According to a recent report from Capitalize, 43% of people doing rollovers are still being sent paper checks. Why are we still using paper checks to transfer life savings?
We'll cover that through an article written by Ron Lieber of the New York Times.
📬 Then we will answer a listener question, "I invested in Vanguards 2035 Target fund a long time ago. Not a bad move. BUT, I did so in a brokerage account and not an IRA. Now I have over $100k in it. Oops. Should I leave it there or try to shift to a more flexible fund before a I retire in 5 year or so?"
Resource:
Article by Ron Lieber: His Life Savings Were Mailed to Him by Paper Check. Now, It’s Gone.
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According to BankRate, 23% of Americans 60-78 have a side-hustle. Maurie Backman says in an article by Kiplinger that this would help with two key areas in retirement planning: It provides us with something fulfilling to do after our primary career and provide a little extra cash in retirement.
The benefits of a side hustle:
- Mental Engagement
- Extra Income
- Social Connection
- Sense of Purpose
The Pitfalls of a side hustle:
- Tax Complications
- Outspending your retirement budget in search of business profits
- Medicare Premium Creep (IRMAA)
- Lifestyle Clash
- Time Commitment
Also in this episode, we discuss a listener's question about global stock allocations - and asks if I think it's better to own a global fund or to own US & international equity separately. How can one balance simplicity and effectiveness in their plan?
Resource: Article by Maurie Backman: Monetizing a Hobby in Retirement: The Benefits and Pitfalls Article by Bankrate: https://www.bankrate.com/credit-cards/news/side-hustles-survey/
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If you've been anywhere close to a retirement podcast over the last 10-20 years, you've heard of the 4% rule. And like many people, you might have questions about it.
We're going to hear about it directly from the horse's mouth as we talk to Bill Bengen, who first articulated the 4% withdrawal rate as a rule of thumb for withdrawal rates from retirement accounts.
The 4% rule is not a rigid rule but a guideline. Its application requires careful consideration of individual factors, including health, life expectancy, and specific financial circumstances. Bengen encourages retirees to tailor their withdrawal strategies based on their unique situations. Our discussion also explored required minimum distributions (RMDs), which may necessitate higher withdrawals in later years of retirement. However, Bengen suggests that for most people, RMDs would not exceed the calculated withdrawal rates until a very advanced age, making the two compatible.
Core Points:
- The 4% rule, initially a worst-case scenario calculation, suggests a 4% annual withdrawal from retirement savings. This has since been refined
- Research indicates a more generous 4.7% withdrawal rate is now possible due to portfolio diversification and lower investment costs
- Higher withdrawal rates might be feasible (5-5.5%), depending on market valuations and inflation
- Early retirement withdrawal timing significantly impacts long-term success
- Consider individual circumstances, market conditions, and inflation when adjusting withdrawal strategies
Resource: Pre-order Bill Bengen’s new book, "A Richer Retirement: Supercharging the 4% Rule to Spend More and Enjoy More" https://www.bengenfs.com/order-my-book
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Only 3% of Americans have saved $1 million for retirement. according to 24/7 Wall St. & AOL. I’ll break down what that means—and why your personal number might be more important than any national average.
After that, I answer a listener question where we tackle how to cover healthcare costs in early retirement—specifically for a 58-year-old retiree with a non-working spouse and three adult kids under 26 still on the family plan. We’ll explore ACA strategies, income planning, and a clever way to help the kids get their own coverage at a big discount.
Resource:
AOL article by David Beren: A Look at U.S. Workers Who’ve Accumulated $1M in Retirement Funds
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What do you do with RMDs you don’t actually need?
If you’re retired and over age 73 — or 75 if you were born in 1960 or later — you know the IRS requires you to start taking Required Minimum Distributions (RMDs) from your traditional IRAs and workplace retirement accounts.
Even if you don’t need that money for living expenses, you still have to take it - which means more taxable income, higher Medicare premiums, and a bigger chunk of your Social Security benefits becoming taxable in some cases.
Today I share "6 Strategic Ways to Make the Most of Distributions You Don’t Need", an article by Greg Hammons from TheStreet.com.
- Reinvest in a Taxable Brokerage Account - super straightforward.
- Make a Qualified Charitable Distribution (QCD)
- Use RMDs to Fund Life Insurance
- Cover the Taxes on a Roth Conversion
- Fund a 529 Plan for Education
- Give to Family—Tax-Free
So what’s the best move for you?
That depends on your goals—whether it’s growing your money, reducing taxes, helping your family, or supporting a cause. But the key message is this: RMDs don’t have to be a tax burden. With some intentional planning, they can be an opportunity.
Before making a move, talk to your financial planner or tax pro. These strategies can have long-term effects on your retirement plan, your taxes, and your legacy.
I also tackle a listener question: "What is your recommendation to cover the gap in sustainable income from pre-retirement (e.g., 60) to Social Security claiming age (e.g., 70)?"
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What happens when your emergency cash runs dry—and life keeps happening?
A recent article lays out a ranked list of ten ways to access emergency cash, starting with the best options and ending with the ones you’ll want to avoid unless it’s truly a last resort:
- Emergency Fund / Short-Term Securities
- Low-Risk Assets in Taxable Accounts
- Roth IRA Contributions
- Life Insurance Cash Values
- 401(k) Loan
- Home Equity Line of Credit (HELOC)
- Hardship Withdrawals from 401(k)
- Reverse Mortgage
- Margin Loans
- Credit Cards
The takeaway?
Know your emergency funding hierarchy before a crisis hits. With a plan in place, you’ll be better equipped to make calm, informed decisions when life throws you a curveball.
Resource:
- MorningStar article by Christine Benz: 10 Sources of Emergency Cash, Ranked From Best to Worst
- Christine Benz’s book - How to Retire: 20 Lessons for a Happy, Successful, and Wealthy Retirement https://a.co/d/3rZ3JgF
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“By the time your child turns 18, you’ve spent 95% of the time you’ll ever spend with them in your lifetime.”
This comes from research by the American Time Use Survey, highlighted by Our World in Data. And let’s be honest, when you first hear that, it stings a little. Especially as a parent. You can’t help but wonder, “Have I been a good steward of that precious time?”
But here’s the twist: this isn’t about guilt. It’s about awareness. It’s a gentle, data-backed nudge to savor the moments that feel small now—but that become the biggest memories later.
So how do we maximize the return on the time—and the money—we spend on experiences? Research tells us something powerful: experiences give us more lasting happiness than stuff. That’s not just my opinion, that’s from a 2020 study by Kumar, Killingsworth, and Gilovich. Experiences beat material goods both in prospect and in retrospect. In other words, we enjoy them more before and after they happen.
Step 1: Listen & Learn Step 2: Create Curiosity Step 3: Build Together Step 4: Build Up—and Look Back
What does this have to do with retirement? EVERYTHING!
Listen in to understand why.
I also answer a question from Wendell, a retiree who’s considering swapping out some of his stock-heavy portfolio for the safety of short-term government bonds — a strategy known as “T-Bills and Chill.” He’s wondering: with guaranteed income already in place, is it time to say goodbye to the stock market for good?
Resource:
Forbes article by Tim Maurer: A Method For Maximizing Memories With Money
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We’re talking about rebalancing! Rebalancing is key to any retirement plan, but how often should we do it? That’s the topic of today’s retirement headlines segment, where we’re going to look at an article by by Jennifer Reed
Key discussion points:
💵 Financial Considerations 💔 Emotional Considerations 🧩 Relational Considerations 📊 A Look at the Numbers
Resource: Article by Jennifer Reed: Is The Optimal Rebalancing Strategy To Not Rebalance At All? https://www.fa-mag.com/news/is-there-an-optimal-rebalancing-strategy--maybe-82136.html
After that, I answer a listener question: “Could you discuss the financial emotional and relationship issues with disclaiming an inheritance?”
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What are the perceived benefits of moving to a low-tax state in retirement? Is it all it’s cracked up to be?
We’re gonna cover a Wall Street Journal article by Debbie Carlson that delivers an important dose of nuance: “Don’t let the income-tax tail wag the total-spending dog.”
I also answer a very thoughtful question from Lynn about sequence of returns risk, as well as average returns vs order of returns.
Key topics from the article:
🏠 Real Estate & Insurance Can Eat Up the Savings 📊 For Middle-Income Retirees, Sales & Property Taxes Matter More 💵 Homeowners Insurance Is a Big—and Growing—Expense 📚 Don’t Forget State-Level Retirement & Estate Taxes 🧮 Ben’s Take: Look at the Whole Picture
Resource: Article by Debbie Carlson: https://www.wsj.com/personal-finance/taxes/retirement-low-tax-rate-states-move-cabdb31b
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How do you stay calm and confident when the markets get messy? In today's Retirement Headlines we go through Cullen Roche's article from Discipline Funds - "Finding Certainty in a Sea of Uncertainty".
With tariffs, global uncertainty, and market volatility making headlines again offers nine practical steps to help you stay grounded, focused, and on track with your retirement plan.
The 9 Calming, Confidence-boosting steps the article lays out are:
- Revisit Your Financial Plan
- Update Your Estate Plan
- Consider Tax Loss Harvesting
- Dollar Cost Average Excess Cash
- Think in Terms of Time Horizons
- Stay the Course (If You Can)
- Talk About It
- Focus on What You Can Control
- Go Do "Leg Day"
After that, I answer a listener question: “I’ve been paying $1,600 a year for a $500,000 level term life insurance policy, which runs through 2031. I have two financially stable adult children in their 30s, who are the policy’s beneficiaries, and two grandchildren. Should I keep making the premium payments—or let it lapse?”
Resource:
Article by Cullen Roche: Finding Certainty in a Sea of Uncertainty
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One of the biggest and often overlooked risks facing retirees is sequence-of-returns risk. The risk of experiencing investment losses early in retirement can have an impact on the sustainability of savings over the long term.
Morningstar researchers dug into this in their latest State of Retirement Income study. Their findings confirm what many retirement planners already suspect: the first five years of retirement are make-or-break.
I'll also answer a listener question: "Are there advantages to moving all your mutual funds into a brokerage firm such as Schwab? "
Resource: Morningstar article: How to Avoid Outliving Your Retirement Savings? It’s All in the Sequence
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It’s no secret that market volatility can feel especially nerve-wracking when you’re no longer earning a paycheck.
But what if I told you that, historically, every single crash has ended the same way—with a recovery?
That's what happened after the Covid-19 market crash, the 2021 downturn, and even the Great Depression.
We're going to discuss an article titled "What We’ve Learned From 150 Years of Stock Market Crashes" by Emelia Fredlick. The article highlights some of the worst market downturns in history and, more importantly, the lessons they offer for long-term investors like you.
Takeaways:
Lesson #1: We Can’t Predict Recovery Times Lesson #2: Every Decade Brings a Market Crash Lesson #3: Staying Invested is the Only Winning Strategy
Then I answer question sent in from a listener: "What are some good ways to gift money to my children while I'm still living?"
All of this in less than 20 minutes.
Resources:
- MorningStar article by Emelia Fredlick: What We’ve Learned From 150 Years of Stock Market Crashes
- Book by Bill Perkins: Die With Zero
- How many annual exclusions are available? IRS website on Gift Taxes
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Is your 401(k) prepared for a market crash? With market volatility on the rise, many investors are wondering how to protect their portfolios.
In this episode, I share an article from Go Banking Rates on how to safeguard your retirement savings during turbulent times. I’ll highlight key takeaways from the article, share my own insights on where I agree or disagree, and explain why certain strategies may be more effective than others.
After that, I answer a listener’s question about long-term care (LTC) insurance. We’ll explore different types of LTC policies, discuss the ideal time to purchase coverage (such as around age 50), and consider whether self-funding might be a smarter financial strategy.
Key takeaways:
- Diversify, Diversify, Diversify
- Shift Toward Conservative Investments as You Near Retirement
- Rebalance Regularly—Not Just After a Crash
- Consider a 401(k) Rollover for More Flexibility
- Stay the Course—Don't Panic Sell
Resources:
Go Banking Rates article: How To Protect Your 401(k) from a Stock Market Crash
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Get the book - out now!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
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Most people assume their tax burden lightens in retirement, but what if I told you that some taxes are actually designed to creep up on you year after year—without Congress passing a single new law? In this episode, we expose the sneaky taxes that can quietly erode your retirement income, from Social Security taxation to Medicare IRMAA surcharges. These hidden costs don’t just affect the ultra-wealthy anymore; thanks to outdated rules and inflation, they’re hitting everyday retirees harder than ever.
If you're relying on Social Security, investment income, or Medicare in retirement, you may already be on the IRS’s radar—without realizing it. We break down the four biggest tax traps, explain how they’ve changed over time, and why they’re pulling more retirees into the tax net each year. Whether it's the frozen thresholds for Social Security taxes or the stealthy Medicare penalties that kick in just because you had a good income two years ago, these sneaky policies can add up fast.
By the end of this episode, you’ll have a clearer picture of how these taxes work, why they exist, and what—if anything—you can do to soften the blow. If avoiding unnecessary taxes in retirement sounds like a smart move, you won’t want to miss this one!
Outline of This Episode * (0:00) Sneaky Retirement Taxes * (3:20) Sneaky Tax #1: Social Security taxation (how frozen thresholds trap retirees) * (5:10) Sneaky Tax #2: Capital loss deduction limit (unchanged since 1978!) * (6:55) Sneaky Tax #3: Medicare IRMAA (tracking your income before you even retire) * (08:45) Sneaky Tax #4: Net Investment Income Tax (how it quietly pulls in more taxpayers) * (09:40) Wrap-up – Why these taxes persist & what you can do about them
Resources & People Mentioned * The Retirement Podcast Network * Social Security Administration’s Taxation of Benefits * IRS Q&A on Net Investment Income Tax
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter * Work with Benjamin: https://retirementstartstoday.com/start
Get the book - out now!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today inApple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart
Most people focus on saving for retirement, but what happens when you actually get there? Retirement isn’t just about having enough money—it’s about managing risks that can threaten your financial security and lifestyle.
In this episode, we explore Five Key Retirement Challenges (and Solutions), inspired by a Kiplinger’s Personal Finance article by Walt West. From unexpected market downturns to rising healthcare costs, these challenges can catch retirees off guard if they’re not prepared.
We break down each challenge—financial instability, healthcare expenses, taxes, inflation, and estate planning oversights—and discuss practical strategies to navigate them. Learn how to structure a flexible withdrawal plan, prepare for long-term care costs, use tax-efficient strategies like Roth conversions, and ensure your estate plan protects your loved ones.
Plus, we tackle a listener question about using a MIGA ladder strategy to bridge the gap until Social Security—offering insights into the pros and cons of annuities in a retirement portfolio.
If you want to retire with confidence and avoid costly missteps, this episode is a must-listen. Whether you're years away from retirement or already in it, understanding these key challenges and their solutions can help you make smarter financial decisions for the road ahead.
Outline of This Episode * (0:00) 5 Key Retirement Challenges (and Solutions) * (1:17) Retirement headline: Kiplinger’s article on retirement challenges * (1:42) Challenge #1: Financial instability * (4:09) Challenge #2: Healthcare and long-term care costs * (6:33) Challenge #3: Taxes in retirement * (7:33) Challenge #4: Inflation’s impact on retirement income * (8:32) Challenge #5: Estate planning oversights * (10:25) Listener question: MIGA ladder strategy for retirement income
Resources & People Mentioned * The Retirement Podcast Network * Kiplinger’s Personal Finance “Five Key Retirement Challenges” by Walt West * Fidelity’s Healthcare in Retirement Report
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter * Work with Benjamin: https://retirementstartstoday.com/start
Get the book - out now!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
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Most people plan for retirement by focusing on their savings and investment returns—but what if some of the most important decisions happen after you stop working?
In this episode, I sit down with Jeremy Keil, also known as Mr. Retirement, to discuss the three biggest mistakes retirees make—mistakes that can cost them financial security, tax savings, and peace of mind.
From misunderstanding the best time to take Social Security to underestimating how long retirement will last, we break down the key oversights that can derail even the best-laid plans.
Jeremy and I dive into why retirement age and Social Security claiming don’t have to go hand in hand, how to accurately gauge your longevity to avoid outliving your money, and the crucial difference between optimizing for next month’s income versus planning for a lifetime of financial security.
Whether you’re a few years away from retirement or already in it, this conversation will challenge the way you think about your financial future and equip you with strategies to make smarter decisions.
Outline of This Episode * (0:00) Intro * (1:19) Mistake #1 – Tying retirement to Social Security * (4:05) Mistake #2 – Underestimating longevity * (8:41) Planning for an earlier retirement than expected * (13:50) Mistake #3 – Optimizing for short-term income over long-term security * (19:20) Where to find more from Mr. Retirement
Resources & People Mentioned * The Retirement Podcast Network * Mr. Retirement YouTube Channel * Longevity Illustrator Tool
Connect with Jeremy Keil * Connect with Jeremy Keil AKA Mr Retirement on LinkedIn
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter * Work with Benjamin: https://retirementstartstoday.com/start
Get the book - out now!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
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Many retirees enter their golden years with the goal of financial security, but what if the biggest risk isn’t running out of money—it’s not spending enough of it? A surprising new study reveals that retirees are withdrawing just 2% a year from their savings—barely half of what’s traditionally considered safe.
This cautious approach might seem responsible, but it often leads to unnecessary frugality, missed experiences, and larger-than-expected tax burdens later in life. The hesitation to tap into personal savings, even when there's plenty available, raises an important question: What’s stopping retirees from spending with confidence?
Research shows that retirees feel much more comfortable spending guaranteed income from sources like Social Security and pensions while being reluctant to withdraw from their own investments. This behavioral tendency can leave money unspent for decades, only to be forced out later through required minimum distributions (RMDs) that create tax inefficiencies. Meanwhile, large inheritances often arrive too late to make a meaningful impact on the next generation.
Rethinking the 2% mindset means understanding what keeps retirees locked into ultra-conservative spending habits and finding ways to turn savings into income that feels reliable. A simple shift—such as automating monthly withdrawals or adjusting expectations around financial security—can open the door to a more fulfilling retirement. The money was saved to be spent, and spending it well can be just as important as saving it wisely.
Spending too little can be just as costly as spending too much. With the right approach, retirees can enjoy their wealth now while keeping future financial security intact.
Outline of This Episode * (0:00) Why Retirees Spend Far Less Than They Could * (1:46) The study: Retirees underspending their savings * (3:33) Why the 2% problem exists * (6:10) The impact of underspending on taxes & an inheritance * (8:11) The role of financial planning & behavioral coaching * (9:20) Possible solutions: Turning savings into reliable income * (11:04) Listener question: A simple withdrawal plan
Resources & People Mentioned * The Retirement Podcast Network * David Blanchett – Head of Retirement Research at PGIM DC Solutions * Michael Finke – The American College of Financial Services * Die With Zero by Bill Perkins – Book on intentional retirement spending
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter * Work with Benjamin: https://retirementstartstoday.com/start
Get the book - out now!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
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For decades, you've been focused on saving—watching your retirement accounts grow, sticking to a budget, and making smart financial decisions to ensure a secure future. But now that the time has come to actually enjoy your hard-earned money, spending it feels... unsettling.
You’re not alone. Many retirees struggle with the mental shift from accumulation to decumulation, even when their financial plans show they have more than enough. The fear of running out, coupled with conflicting financial advice, makes it tough to confidently transition into this new phase of life.
Today we explore strategies for overcoming the retirement spending fear, based on an insightful Forbes article by Tim Maurer. We’ll break down his three-step approach: phasing into retirement instead of stopping abruptly, redefining "work" to maintain purpose and fulfillment, and structuring an investment portfolio designed specifically for retirement withdrawals.
Plus, we’ll tackle a listener question about Social Security spousal benefits and the implications of early filing. By the end of the episode, you'll gain a clearer understanding of how to embrace your retirement, spend with confidence, and fully enjoy the wealth you’ve built.
Outline of This Episode * (0:00) The fear of spending in retirement * (1:19) The “Retirement Cycle of Fear” * (3:13) Step 1: Phase into retirement gradually * (5:15) Step 2: Keep working, but redefine it * (7:20) Step 3: Build a portfolio for spending * (10:14) Listener Q – Social Security & spouses * (14:30) Final thoughts (how to thrive in retirement)
Resources & People Mentioned * The Retirement Podcast Network * Tim Maurer’s Forbes article – Overcoming the fear of spending in retirement. * Daniel Crosby’s The Soul of Wealth – A deep dive into money and psychology.
Connect with Benjamin Brandt * Become a Client: www.retirementstartstoday.com/start * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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A lot of retirees assume their tax situation gets simpler once they stop working, but that’s not always the case. There are plenty of ways high-net-worth retirees end up paying more than they need to—sometimes without even realizing it.
Maybe it’s interest and dividend income getting taxed at higher rates, or IRA withdrawals happening earlier than necessary. Maybe it’s something as simple as missing the right way to report charitable giving. These things add up, and over time, they can quietly eat away at retirement savings.
Some of the biggest inefficiencies show up on tax returns in ways people don’t always expect. Social Security benefits taken too soon, mutual funds kicking off surprise capital gains, or estimated tax payments falling short and triggering penalties—it all matters.
There are ways to structure income, investments, and withdrawals to keep more of what’s earned, but they take a little planning. The goal isn’t just to minimize taxes for the sake of it, but to make sure every dollar is working as efficiently as possible.
Most of these inefficiencies can be fixed with a few small adjustments. Some require a different way of thinking about income in retirement, others just mean taking advantage of tax rules that are already there. Either way, it’s worth a closer look. A little awareness now can mean thousands saved over the years.
Outline of This Episode * (0:00) Inefficiencies on Rich Retirees' Tax Returns * (4:07) Top tax inefficiencies: Interest, dividends, and premature IRA withdrawals * (6:52) Charitable distributions, Social Security timing, and phantom capital gains * (9:33) Capital gains, charitable intent, and avoiding underpayment penalties * (12:24) Listener question: Travel spending habits of wealthy retirees * (19:05) Listener question: Callable CDs and interest rate risk * (21:16) Closing thoughts and practical takeaways
Resources & People Mentioned * The Retirement Podcast Network * Kiplinger’s Article * TurboTax Safe Harbor Guide * Fidelity Charitable
Connect with Benjamin Brandt * Become a Client: www.retirementstartstoday.com/start * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Most people plan for retirement by focusing on their finances—building up a nest egg, securing passive income, and minimizing taxes. But what if that’s only part of the equation? Many retirees find themselves financially secure yet feeling unexpectedly lost, disengaged, or even unhappy. The truth is, money alone doesn’t guarantee a fulfilling retirement.
Dr. Daniel Crosby explains how work naturally provides purpose, engagement, relationships, and growth—key elements we often lose in retirement without realizing it. Without a plan to replace them, retirees risk dissatisfaction, depression, and even health issues.
The good news? By proactively designing your retirement around these five pillars—positive experiences, engagement, relationships, meaning, and growth—you can create a life that is just as rich in purpose as it is in financial security.
Whether it’s through hobbies, social groups, volunteering, or personal growth, Dr. Crosby shares how to build a retirement that keeps you mentally, emotionally, and socially fulfilled for decades to come.
Outline of This Episode * (0:00) Introduction * (1:30) The unexpected struggles of retirement * (2:40) The five facets of a meaningful life * (6:23) How to intentionally rebuild purpose after retiring * (9:50) The hidden danger of loneliness in retirement * (14:30) Why purpose-driven money decisions matter * (22:50) A hilarious twist: How Elon Musk “stole” from Dr. Crosby!
Resources & People Mentioned * The Retirement Podcast Network * Dr. Daniel Crosby’s Book – The Soul of Wealth (Amazon) * Dr. Daniel Crosby’s Podcast – Standard Deviations (Podcast) * CDC Report on Loneliness & Health Risks (Report)
Connect with Dr. Daniel Crosby * Chief Behavioral Officer bio * His Twitter/X: @danielcrosby * His LinkedIn: Dr. Daniel Crosby
Connect with Benjamin Brandt * Become a Client: www.retirementstartstoday.com/start * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Many people fear running out of money in retirement, assuming they'll struggle financially once they stop working. But a recent Gallup poll shows 80% of retirees have enough to live comfortably, despite concerns about Social Security, longevity risk, and pension declines.
Why the difference between expectation and reality? Many retirees find their expenses drop, Medicare covers more than expected, and Social Security plays a bigger role in their income.
However, many still claim Social Security early, leaving money on the table. By making strategic choices, like delaying Social Security and managing retirement savings wisely, you can secure a more stable, stress-free future.
If you're anxious about your retirement income, you're not alone—but retirees before you have found their finances more stable than they expected. By taking the right steps now, you can be part of that 80% who enjoy a confident retirement.
Outline of This Episode * (0:00) Concerns vs. Reality * (1:30) The Gallup poll and retirement reality * (5:00) The Social Security dilemma and when to claim * (9:10) The shift from pensions to 401(k)s * (11:17) Listener question: Pros and cons of 55+ communities * (18:30) Why renting before buying can save you money * (21:00) Final takeaways and episode wrap-up
Resources & People Mentioned * The Retirement Podcast Network * Gallup poll on retirement confidence * 55+ community comparison site * Emile Hallez’ Investment News retirement article
Connect with Benjamin Brandt * Become a Client: www.retirementstartstoday.com/start * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Listen in to this BONUS episode as Canadian CFP and host of the Your Retirement Planning Simplified Podcast, Joe Curry, interviews me (Benjamin) about:
- The non-financial aspects of retirement planning
- Shifting from a scarcity to an abundance mindset
- Retiring to something rather than from something
- and embracing creativity to design a fulfilling post-career life
Key insights include overcoming spending anxiety, identifying passions, building social connections, and planning purposefully for a no-regrets retirement. With actionable insights and a focus on mindset, this episode is perfect for those looking to simplify and enrich their retirement journey.
Enjoy!
Resources:
Joe Curry's website and podcast
Joe Curry on LinkedIn
Book: Be Your Future Self Now by Dr. Benjamin Hardy
- Inspiration for understanding and connecting with your future self to create a fulfilling retirement.
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
Get the book - out now!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Subscribe to Retirement Starts Today onApple Podcasts, Spotify, Pocket Casts, TuneIn, Podbean, Player FM, or iHeart
Click here to work with us!
Employee benefits are one of the most overlooked aspects of financial planning. We often check a few boxes during open enrollment and move on—but are we truly maximizing what’s available to us?
This week, we sit down with Joe Saul-Sehy, host of Stacking Benjamins, to uncover the hidden value in workplace benefits. From disability insurance pitfalls to term vs. whole life insurance, Joe walks us through key strategies to ensure we’re not leaving money (or protection) on the table.
Joe also introduces a powerful HR benefits guide, a resource designed to help us navigate workplace perks with confidence. Whether it's understanding own-occupation disability insurance, avoiding junk policies, or knowing when to self-insure, this conversation is packed with actionable advice. If you’ve ever wondered whether you’re making the most of your benefits—or if you’re just blindly accepting what’s offered—this episode is for you.
Outline of This Episode * (0:00) Maximizing Workplace Benefits * (2:32) Disability Insurance: Are You Really Covered? * (6:50) The Truth About Accidental Death Policies * (10:30) How Your Emergency Fund Can Replace Certain Insurances * (14:50) The Hidden Costs of Small-Dollar Insurance Policies * (18:00) Term vs. Permanent Life Insurance: What’s Right for You? * (24:20) How Much Life Insurance Do You Actually Need? * (27:40) The Ongoing Evolution of Workplace Benefits & Joe’s HR Guide
Resources & People Mentioned * The Retirement Podcast Network * Website: Stacking Benjamins
Connect with Joe Saul-Sehy * Twitter: @AverageJoeMoney * Instagram: @StackingBenjamins * LinkedIn: Joe Saul-Sehy
Connect with Benjamin Brandt * Become a Client: www.retirementstartstoday.com/start * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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What if you could turn those green numbers in your investment account into retirement income while paying as little in taxes as possible? That’s exactly what we’re covering today with Peter Lazaroff, Chief Investment Officer at PlanCorp. We’re tackling the challenge many of us face: managing deferred gains in our portfolios and figuring out the smartest ways to reduce the tax hit as we transition to retirement.
Peter and I talk through a range of strategies for handling concentrated stock positions, whether it’s selling off winners gradually, taking advantage of tax-loss harvesting, or exploring more advanced options like exchange funds or a 351 exchange. These aren’t just dry financial concepts—they’re real, actionable ideas that can help you simplify your portfolio and make the most of what you’ve saved. And trust me, simplifying your financial “closet” can feel like a huge weight lifted.
We also talk about the emotional side of investing. Why does it feel so hard to part with stocks that have been good to us? Whether it’s an attachment to the company or pride in your early picks, Peter shares why these feelings matter and how to move past them to make decisions that better serve your long-term goals. Stick around—you won’t want to miss the insights he has to share.
Outline of This Episode * (0:20) Peter Lazaroff’s Options for Reducing Taxes on Deferred Gains Pre-Retirement * (01:46) Why retirees need to manage large brokerage gains. * (03:10) The emotional challenge of selling winning stocks. * (05:20) Risks of concentrated stock positions and diversification. * (09:00) Tax-loss harvesting and direct indexing strategies. * (14:30) Simplifying portfolios with the 351 exchange. * (18:40) Portfolio simplicity and enjoying retirement income.
Resources & People Mentioned * The Retirement Podcast Network * Peter Lazaroff’s Book: "Making Money Simple" – www.peterlazaroff.com/freebook * Peter Lazaroff’s Website – peterlazaroff.com * The Long Term Investor Podcast – thelongterminvestor.com
Connect with Peter Lazaroff * Peter's website
Connect with Benjamin Brandt * Become a Client: www.retirementstartstoday.com/start * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Can you be fired after announcing your retirement? It's a question that raises eyebrows and stirs concern for anyone nearing the end of their career. A recent article highlights the legal and financial implications of being terminated after sharing retirement plans, and it’s a scenario more common than you might think.
Employers often operate under at-will employment laws, giving them broad rights to terminate employees, even after a retirement announcement. But what does that mean for you? Understanding protections like ERISA and the Age Discrimination in Employment Act can make all the difference in navigating this tricky situation. It's not just about legalities—financial stability, severance packages, and health insurance come into play too.
On top of that, announcing retirement at the wrong time could mean missing out on potential benefits or buyouts. Striking a balance between professional courtesy and protecting your financial future is essential. When it comes to planning for life after work, the timing and approach of your announcement could impact everything from your wallet to your peace of mind.
Outline of This Episode * (0:00) Introduction * (0:29) Yahoo Finance article discussion * (1:11) At-will employment laws explained * (2:08) Legal considerations: ERISA and age discrimination * (3:57) Financial steps after unexpected termination * (7:47) Protective measures to stay on track * (10:05) Client story: Announcing retirement too early * (12:12) Listener questions: What to retire to * (13:04) Crafting a fulfilling retirement plan * (17:27) Taking small risks to find post-career purpose
Resources & People Mentioned * The Retirement Podcast Network * Yahoo Finance Article by Christy Bieber – Discussing legal and financial challenges of being fired after announcing retirement * Freedom for Fido – A charity building shelters and fences for dogs in need
Connect with Benjamin Brandt * Become a Client: www.retirementstartstoday.com/start * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Are you spending too little in retirement, worried you might outlive your savings? Many retirees struggle to strike the right balance, often holding back on enjoying the wealth they’ve worked a lifetime to build. I’ll show you how to overcome those fears and spend with confidence while still planning for the future.
What about real estate? Whether you’re thinking about renting instead of owning, leveraging home equity for long-term care, or even investing in rental properties, the right approach can make all the difference. I’ll share practical insights to help you figure out what works best for your lifestyle and financial independence.
Retirement is your chance to live on your terms, free of unnecessary stress and worry. By understanding the psychology of spending and making thoughtful decisions about your biggest assets, you can enjoy the freedom and security you’ve earned. Let’s get started.
Outline of This Episode * [0:00] The Start of 2025 * [1:50] Spending Struggles in Retirement * [4:40] Connecting with Your Future Self * [6:12] Underspending Biases and Longevity Risk * [12:01] Real Estate in Retirement * [14:10] Renting vs. Owning * [16:10] Home Equity for Long-Term Care
Resources & People Mentioned * The Retirement Podcast Network * Morningstar Article: Tips to spend less or more in retirement by Samantha Lamas. * Benjamin Brandt’s Book: Retirement Starts Today. * Capital City Wealth Management: Benjamin Brandt’s financial planning firm.
Connect with Benjamin Brandt * Become a Client: www.retirementstartstoday.com/start * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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What does it mean to live a life of purpose? I talk with Jordan Grumet, aka Doc G, host of the Earn & Invest podcast, about how his work as a hospice doctor shaped his understanding of purpose and regret. His new book, “The Purpose Code,” offers insights on how to live with intention and meaning.
We talk about the difference between "Big P" and "Little P" purpose and why focusing on grand goals often leads to frustration. Jordan shares how the terminally ill reflect on their lives, emphasizing the courage it takes to prioritize what truly matters.
This conversation is about using time, money, and energy to create a fulfilling life. Whether you’re planning retirement or redefining your goals, Jordan’s perspective can help you focus on what lights you up and brings you joy.
Outline of This Episode * [1:42] Purpose and Regret: Lessons from terminally ill patients * [3:40] The Purpose Paradox: Tackling anxiety in finding purpose * [5:50] The Role of Courage: Overcoming barriers to meaningful living * [8:40] The Trap of “Enoughness”: When financial goals fall short * [14:00] Winning Life: Filling your calendar with what matters * [17:10] The Purpose Code: A guide to living intentionally
Resources & People Mentioned * The Retirement Podcast Network * Book: The Purpose Code (Available January 7th, 2025) * Podcast: Earn and Invest * Book: Taking Stock: A Hospice Doctor’s Advice on Financial Independence, Building Wealth, and Living a Regret-Free Life
Connect with Jordan Grumet * Jordan Grumet’s Website: jordangrumet.com
Connect with Benjamin Brandt * Become a Client: www.retirementstartstoday.com/start * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Originally aired February 2024:
There are two ways to mess up retirement: run out of money or die with regret. Oftentimes, people in the retirement space only focus on the running out of money part.
In an effort to help you live an even better retirement, today’s retirement headline discusses the regret part. Join me to learn five expenses that retirees wish they had spent more money on so that you can learn from their mistakes.
Stick around to hear the answer to our listener question: Is there one person who can help develop a comprehensive retirement plan? Or do you need to have an investment advisor, a financial advisor, a tax advisor, and an estate planning attorney? Find out the answer by pressing play.
For more information, visit the show notes at https://retirementstartstodayradio.com/5-expenses-retirees-wish-they-spent-more-money-on-rebroadcast
Originally aired March 2024:
There are many ways that could threaten your financial security in retirement. Knowing the common issues can ensure that you don’t fall into the traps.
Today’s financial headline comes from Yahoo Finance and is called 8 Ways Baby Boomers Become Poor in Retirement. Listen in to learn what they are so that you don’t drive yourself into the poorhouse.
For more information, visit the show notes at https://retirementstartstodayradio.com/8-ways-to-become-poor-in-retirement-rebroadcast
Originally aired April 2024:
It may be easy to define success in your working career, but defining success in retirement can be more difficult. What does success look like in retirement? What will you do daily or weekly to get the most out of your retirement?
In this episode of Retirement Starts Today, we’ll explore a TEDx talk about the 4 phases of retirement that many (but not all) experience. Click play to hear how you can squeeze the most juice out of your retirement.
For more information, visit the show notes at https://retirementstartstodayradio.com/the-4-phases-of-retirement-rebroadcast
Originally aired February 2024:
You’ve heard of the 4% rule, and if you’ve listened to this podcast before, you’ve heard of Guyton’s guardrails strategy. But have you ever heard of using them together? Today’s retirement headline explores this idea.
Overall, the article highlights the importance of considering sequence-of-returns risk in retirement planning and adopting flexible strategies, such as guardrails, to ensure financial security throughout retirement.
Listen in to learn more about this combination of strategies as well as my opinion on the matter. Then stick around for the listener question segment where Bret and I answer the question: Do I need a will if I want to split my assets evenly between my two children?
Outline of This Episode
(02:11) Sequence of returns risk is the greatest risk to your retirement (14:49) Should I have a will to split my assets evenly between my kids?
For more information, visit the show notes at https://retirementstartstodayradio.com/using-guardrails-for-the-4-rule-rebroadcast
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
Pre-order Benjamin's book by January 7, 2025:Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Subscribe to Retirement Starts Today onApple Podcasts, Spotify, Pocket Casts, TuneIn, Podbean, Player FM, or iHeart
Originally aired June 2024:
The 4% rule is the “golden rule” of retirement planning. Everyone is familiar with it and it’s easy to work out for some quick, back-of-the-napkin math.
Since it is so easy to calculate and implement, many use it as their retirement withdrawal rule. However, this approach may be overly conservative. While using a significantly higher withdrawal rate may go too far, the 4% rule may be too cautious.
Listen in to hear the limitations of sticking with this overly simplistic rule of thumb.
Outline of This Episode * (2:25) Is the 4% rule too safe? * (11:16) Does it make sense to spend more in the early years while awaiting full retirement age?
The pitfalls of the 4% rule Oftentimes, people fail to take into account other income sources when calculating the 4% rule. Social Security and pensions may provide a base income floor which means you could use a higher withdrawal rate from your portfolio.
My biggest problem with the rigid 4% rule is that it isn’t flexible enough. The 4% rule doesn’t allow for spending flexibility and ignores spending adjustments that could be made on actual needs and circumstances.
Another reason to avoid this stringent rule is that it doesn’t fully evaluate outcomes. The probability of success should be viewed as a spectrum. This approach will help measure the total amount of the goal achieved each year providing a more nuanced understanding of retirement readiness.
What to do instead of relying on the 4% rule Incorporating more realistic metrics, such as goal completion and spending flexibility can lead to higher optimal spending levels. Based on this updated perspective, a 5% withdrawal rate may be more appropriate for the average retiree over a 30-year retirement period.
However, the ideal rate depends on various factors, including the retiree’s specific circumstances and goals.
Recent research introduces guided spending rates, where the withdrawal rate adjusts based on an individual’s flexibility and retirement duration, ranging from 10 to 40 years. Increasing the withdrawal rate from 4% to 5% may seem modest, but it represents a 25% increase in potential income, offering retirees more discretionary funds earlier in retirement when they are more active.
Finding the right withdrawal rate is about balancing safety and practicality. A more dynamic approach that reflects individual circumstances and the ability to adjust spending is essential for effective retirement planning.
In conclusion The 4% rule is a great rule of thumb based on a worst-case scenario, however, it isn’t comprehensive enough to create a fully-fledged retirement plan.
Your retirement income plan needs to be adjusted based on your spending level, market performance, and inflation. To simply set your income source one day at the beginning of retirement and never look back is a foolhardy endeavor. There is no way that you could accurately plan the next 30 years of your life. Flexibility is key for planning your spending in retirement.
Resource Mentioned * Think Advisor article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
Pre-order Benjamin's book by January 7, 2025:Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Subscribe to Retirement Starts Today onApple Podcasts, Spotify, Pocket Casts, TuneIn, Podbean, Player FM, or iHeart
You’ve been accumulating your savings your entire life, but when the time comes to draw down your investments, there are new risks. In this episode, we’ll discuss four risks that come with the decumulation phase of retirement.
Press play to learn how to avoid these risks in retirement.
Are you looking for a new advisor? One of our listeners is looking for a checklist to help him hire a retirement advisor. While answering that question I went ahead and made my advisor checklist available to all of you to download here.
Outline of This Episode
[1:47] Understand effective strategies for the decumulation phase [11:20] Do I have a checklist to use to hire a retirement advisor?
Resources Mentioned
- The Retirement Podcast Network
- Questions to ask a retirement advisor
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
Pre-order Benjamin's book by January 7, 2025:Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Subscribe to Retirement Starts Today onApple Podcasts, Spotify, Pocket Casts, TuneIn, Podbean, Player FM, or iHeart
Ready to learn how to make a lasting and meaningful legacy for your loved ones? I had an in-depth conversation with Myra Salzer from the Wealth Conservancy. Myra brings a unique perspective as a financial advisor who specializes in helping clients navigate life after inheriting significant wealth. We explore not just the financial implications but the deeply personal challenges that can come with inheriting a fortune.
Myra shows us how inheritors are similar to retirees in that both are financially independent, yet they differ significantly in their experiences. Unlike retirees who have worked, saved, and planned, many inheritors have never experienced earning and managing money themselves. This usually leads to a lack of control over their finances, emotional challenges, and pretty complex social relationships.
We also get into the importance of transparency and avoiding surprises when planning an inheritance. Myra shares invaluable advice on how wealthholders can communicate with beneficiaries to build trust and strengthen relationships. For those of us planning to leave a financial legacy, this conversation is a must-listen to ensure that our wealth becomes a true blessing for future generations.
Outline of This Episode * [0:20] Meet Myra Salzer * [1:18] Myra’s specialty * [3:05] Inheritors’ limited control * [4:48] Differences between inheritors and retirees * [6:00] Social challenges where inheritors often struggle * [8:20] Avoiding surprises in inheritance planning * [14:00] The value of smaller, meaningful gifts
Resources & People Mentioned * The Retirement Podcast Network * Book: Die with Zero
Connect with Myra Salzer * Myra’s Website - The Wealth Conservancy * Myra’s YouTube Channel * The Inheritor’s Sherpa
Connect with Benjamin Brandt * Become a Client: www.retirementstartstoday.com/start * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Go deeper into retirement planning with Ben at www.RetirementIncome.University
Pre-order Benjamin's book by January 7th:Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Subscribe to Retirement Starts Today onApple Podcasts, Spotify, Pocket Casts, TuneIn, Podbean, Player FM, or iHeart
In this episode, we step away from our usual financial discussions to share personal stories from our military service. Why? To give listeners a glimpse of who we are beyond our roles as financial advisors—so we opened up about how our time in the service shaped our lives.
Bret shares his experience working in logistics and on the flight line in the Air Force, while I discuss my years as a combat engineer in the Army National Guard. We both reflect on how those experiences influenced our paths and continue to impact our work today.
Bret talks about his five years of active duty and four years in the reserves, highlighting memorable assignments from Korea, Guam, and Germany, and sharing humorous tales about managing logistics and hazardous materials.
I share stories of my time in Iraq, from conducting mine detection patrols to the lessons learned during long days in a tent. Our service stories illustrate how those years instilled lessons that we now apply to our roles as financial planners.
We close the episode with some actual advice on how to give financial gifts to loved ones in a tax-smart way. This special Veterans Day episode honors the holiday by sharing how our military experiences have shaped us and reminding listeners of the lasting impact service can have.
Outline of This Episode * [0:32] Why are we pausing our financial talk to share our military stories? * [1:36] What was Bret’s role in the Air Force, and how did it shape his journey? * [3:40] Which memorable places did Bret serve, and what did he learn? * [7:00] How did my role as a combat engineer lead to unexpected experiences? * [8:50] What connections can we draw between military service and advising? * [14:17] How can you give cash or assets to loved ones in a tax-efficient way? * [19:10] Final thoughts on recognizing veterans and what their service means
Resources & People Mentioned * The Retirement Podcast Network
Connect with Benjamin Brandt * Become a Client: www.retirementstartstoday.com/start * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Investing in health can lead to a more vibrant, enjoyable retirement. In this episode, I share the personal health investments I've made, like sleep tracking and working with a health coach, each designed to enhance well-being and longevity. Prioritizing health alongside wealth allows us to fully embrace retirement.
I detail four key health tools, each with its own costs and benefits. From the Whoop Strap for monitoring sleep quality to MyFitnessPal for tracking nutrition, these tools help create a healthier lifestyle. My biggest investment was a full-body MRI, providing peace of mind and preventive insights—sometimes, the best financial choice is a health choice.
To finish, Brett and I answer a listener's question on Roth conversions, covering the best timing to optimize tax efficiency and avoid penalties. This episode offers practical advice for a health-focused, financially savvy retirement.
Outline of This Episode * [0:27] Nine-Year Milestone and Book Announcement * [2:30] The Importance of Investing in Health * [4:17] Wearable Tech: The Whoop Strap * [6:10] Health Coaching and Nutrition Tracking * [8:08] Long-Term Investment in a Full-Body MRI * [13:06] Listener Question: Optimal Timing for Roth Conversions
Resources & People Mentioned * The Retirement Podcast Network * Whoop Strap – Wearable device for tracking recovery and sleep quality * MyFitnessPal Premium – Nutrition and macro tracking app * Prenuvo – Provider of full-body MRI scans * Peter Diamandis and Fountain Life – Inspiration for full-body MRI screenings
Connect with Benjamin Brandt * Become a Client: www.retirementstartstoday.com/start * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Are you feeling rattled by Required Minimum Distributions (RMDs)? We’re here to help. Today we get deep into managing RMDs as we explore an article by Pam Krueger from Kiplinger’s. I outline the complexities of RMDs, share strategies to minimize tax impacts, and talk about how to craft a "perfect RMD" strategy. Plus, I’ll dig into why so many retirement podcasters, myself included, have no plans to retire themselves.
We kick things off by understanding the basics of RMDs, including when and how retirees must start withdrawing funds from tax-deferred accounts like IRAs and 401(k)s. I share exactly how the timing of RMDs, starting at age 73 (or potentially later under new laws), can have huge tax implications. I also detail strategies to minimize taxes through Qualified Charitable Distributions (QCDs) and preemptive withdrawals.
And of course, co-host Bret Mulvaney and I respond to a listener's intriguing question: why don’t retirement podcasters retire?
Outline of This Episode * [00:22] Tax Month and RMDs Overview * [02:10] Age Changes and Future Implications * [08:00] Strategies for a “Perfect RMD” * [16:10] Why Retirement Podcasters Don’t Retire * [21:30] Life Fulfillment through Financial Planning
Resources & People Mentioned * The Retirement Podcast Network * Kiplinger’s article by Pam Kruger: “Rattled by RMDs? Look No Further.” * Retirement Starts Today Tax Tool: retirementstartstoday.com/tax * Secure 2.0 Act details
Connect with Pam Krueger * https://www.kiplinger.com/author/pam-krueger
Connect with Benjamin Brandt * Become a Client: www.retirementstartstoday.com/start * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Are you sure you're making the right call when deciding between Roth and traditional retirement accounts? A recent article on the Michael Kitsis blog started a debate into why, during your peak earning years, contributing to traditional pre-tax accounts might actually make more sense—even if tax rates rise in the future.
I’m going to break down why high-income earners can often benefit more from deferring taxes now and paying them later in retirement when they have more control over their income.
I’ll explain how using tax deductions at your highest earning years and withdrawing funds at lower tax rates in retirement can save you a significant amount in taxes over time. It’s all about maximizing your flexibility and finding opportunities to lower your tax burden down the road.
Outline of This Episode * [0:20] Why are pre-tax contributions better during peak earning years? * [0:52] How can retirees better control income and taxes after retiring? * [5:00] What’s the key tax strategy difference between Roth and traditional? * [6:10] Why take deductions at high income and realize them later? * [9:20] How do tax rate changes affect Roth vs. traditional choices? * [12:08] Why is avoiding future "tax tidal waves" crucial for savers? * [13:20] What life events can raise taxes, even without rate hikes? * [14:50] How do traditional accounts allow for smart Roth conversions? * [15:20] Why should retirees focus on tax flexibility now?
Resources & People Mentioned * The Retirement Podcast Network * Michael Kitces Blog: The article titled "Why Pre-Tax Contributions Are Better Than Roth in Peak Earning Years, Even If Tax Rates Increase" by Ben Henry-Moreland. * Retirement Tax Quiz Tool: Available at retirementstartstoday.com/tax * Ben Henry-Moreland’s articles
Connect with Benjamin Brandt * Become a Client: www.retirementstartstoday.com/start * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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What could happen to our taxes if the 2017 Tax Cuts and Jobs Act (TCJA) expires in 2025? This week, we explore a Wall Street Journal article analyzing the TCJA’s potential expiration and its varied impacts across the U.S. from coast to coast.
These tax cuts, enacted under President Trump, included reductions across multiple income brackets, increased standard deductions, and expanded child tax credits. However, when they’re set to expire, the shift could mean substantial tax hikes for many households.
The discussion centers on the unique impact of these changes in different regions, showing how factors like income levels and state taxes could influence the extent of the increase.
Outline of This Episode * [0:20] What happens if the 2017 tax cuts expire? * [3:00] Impact of the TCJA’s expiration on different regions * [4:47] Where tax increases will be highest * [5:45] Bay Area faces double pressure * [6:05] Retirees in Collier County, Florida, brace for tax changes * [7:50] Rural areas face modest tax impacts * [12:21] Listener Question: Social Security & retirement timing
Resources & People Mentioned * The Retirement Podcast Network * Where Taxes Would Rise the Most if Trump’s Tax Cuts Expire * Retirement Starts Today Tax Tool: retirementstartstoday.com/tax
Connect with Benjamin Brandt * Become a Client: www.retirementstartstoday.com/start * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Are you actually prepared for how upcoming tax law changes could impact your retirement? I analyze insights featured on the Nerd’s Eye View blog, focusing on key tax strategies for retirees. With the potential 2025 sunset of the Tax Cuts and Jobs Act approaching, potential changes in marginal tax rates, personal exemptions, and deductions could significantly affect tax planning, especially for higher-income earners.
Flexibility is super important when preparing for uncertain legislative changes. Roth conversions and gains harvesting are explored as ways to mitigate the potential impact of rising tax rates. By taking action now, retirees can strategically time income recognition and navigate these upcoming shifts in tax policy.
We’re going to keep this conversation centered around forward-thinking tax planning based on Nerd’s Eye View insights, helping retirees and financial advisors remain adaptable and ready for the changes that may come. Understanding these strategies can help you out big time, and lead to smarter decisions as the future tax landscape unfolds.
Outline of This Episode * [0:08] Discover October’s tax focus and new tool * [1:06] Estimating Your Retirement Tax * [2:30] What happens when tax cuts sunset? * [6:10] How to adapt to future tax changes effectively * [7:00] Roth conversions for tax efficiency * [13:50] Listener question on retirement spending * [18:00] Social Security as a contingency plan
Resources & People Mentioned * The Retirement Podcast Network * Retirement Starts Today Tax Tool * The Nerd’s Eye View Blog article
Connect with Nerd’s Eye View * Nerd’s Eye View
Connect with Benjamin Brandt * Become a Client: www.retirementstartstoday.com/start * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Are index funds really the “sure thing” in investing, or do our emotions get in the way? To help answer that question, we’re going to talk about a Wall Street Journal article by Jason Zweig, which demonstrates the simplicity and challenges that come with investing in index funds. While these funds are designed to replicate […]
The post The Closest Thing to a Sure Thing, Ep 368 appeared first on Retirement Starts Today Radio.
How can we better prepare for a successful retirement? We’re exploring the lessons from a recent article by Christine Benz of Morningstar, where she reflects on her six-week sabbatical and how “mini-retirements” can help us test the waters before we fully retire. We talk about how the luxury of unscheduled time, balancing purpose, and the […]
The post Lessons From Another ‘Faux-tirement’, Ep #367 appeared first on Retirement Starts Today Radio.
Are you actually prepared to navigate the complexities of retirement? We’re exploring Fritz Gilbert’s Six Lessons From Six Years of Retirement, shared from his blog The Retirement Manifesto. One by one, we’ll walk through these lessons, keeping in mind that retirement is an evolving journey, not a static experience. For those who still need to optimize their […]
The post Six Lessons From Six Years of Retirement (from Fritz Gilbert’s Retirement Manifesto), Ep # 366 appeared first on Retirement Starts Today Radio.
Retirement is not just a transition from work to leisure. It’s a continuous journey of self-discovery. We explore the story of Tom, who reflects on the emotional and financial challenges he faced after leaving a successful career. From adjusting to a fixed income to finding new ways to matter outside of his career, Tom’s experiences […]
The post Freedom or Free-fall (Tom’s Story), Ep #365 appeared first on Retirement Starts Today Radio.
You know inflation is something to consider in retirement, but how much should you worry about it? On this episode of Retirement Starts Today, we’ll explore an article from Of Dollar and Data that dives into the nitty gritty of inflation by analyzing three hypothetical retirement scenarios. Learn how to plan for any eventuality so […]
The post How Does Inflation Impact Retirement? Ep #364 appeared first on Retirement Starts Today Radio.
In retirement, retirees make the big switch–drawing on savings rather than contributing to them. This is often when the trouble comes–the psychological hurdle comes when it’s time to start spending your hard-earned savings.
In this episode, you’ll learn how to understand the mental barrier that comes with the big switch and learn strategies to overcome it. Listen to learn how to use your retirement funds without guilt or fear of financial instability.
Outline of This Episode * [1:22] Will you need permission to spend in retirement? * [4:06] Strategies to overcome your mental hurdle about spending * [14:57] How do you handle the taxes from different types of income?
Resources & People Mentioned * The Retirement Podcast Network * Annual Listener Survey * Morning Star article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Knowing when to retire is not just an economic decision; it’s highly personal. In an era where your work is with your identity, deciding when to retire can feel monumental. So how do you know when the time is right? That’s what we’ll explore in today’s episode.
In addition to discussing this retirement headline, Bret Mulvaney joins the show again to help me answer our listener question. Press play to listen.
Outline of This Episode * [1:06] Retirement Starts Today updates * [3:48] How do you know it’s time to retire? * [12:35] Does bank health matter if it is FDIC insured?
Resources & People Mentioned * The Retirement Podcast Network * Vox article * Dan Sullivan - The Strategic Coach
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Knowing when to retire is not just an economic decision; it’s highly personal. In an era where your work is with your identity, deciding when to retire can feel monumental. So how do you know when the time is right? That’s what we’ll explore in today’s episode. In addition to discussing this retirement headline, Bret […]
The post How Do You Know It’s Time to Retire?, Ep #362 appeared first on Retirement Starts Today Radio.
Do you feel pain when spending money? Or perhaps it’s the opposite, and you spend a little too freely without much thought, pain, or remorse?
In this episode of Retirement Starts Today, we’ll explore an article on how to make the most out of retirement by trying to land somewhere in the middle of the spending spectrum. Whether you find yourself to be a “tightwad” or a “spendthrift” you’ll find this episode to be a helpful exploration of gaining happiness from your retirement spending plan.
Outline of This Episode * [1:22] The two types of money people * [5:20] Pre-establish pivot points * [11:45] How to deal with rising insurance premiums
Resources & People Mentioned * The Retirement Podcast Network * The Wealth of Common Sense
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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It’s easy to make mistakes in your investment portfolio, but as you get closer to retirement, it becomes more important than ever to make sure you are maximizing your financial health so that you can achieve your long-term goals.
In this episode of Retirement Starts Today, we’ll take a look at an article written by Christine Benz which highlights several common errors that investors make. Listen in to avoid these mistakes and learn the actions you can take to rectify the problems.
Outline of This Episode * [1:34] Are you making these common portfolio mistakes? * [9:08] Does your asset allocation reflect your portfolio goals? * [12:13] Amy is worried about staying invested, what can she do?
Resources & People Mentioned * The Retirement Podcast Network * MorningStar article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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What would you say your retirement confidence level is? If you’re like many super-savers, it may be surprisingly low. In this episode of Retirement Starts Today, we’ll explore an article from Investment News that dives into a phenomenon where wealthier Americans who are confident in their money management skills still feel shaky about retirement and […]
The post Super-Savers Confidence Score, Ep #349 appeared first on Retirement Starts Today Radio.
We may think of many things when it comes to rising interest rates, but often we fail to understand how that could lead to rising IRS penalties.
In this episode of Retirement Starts Today, we’ll take a look at an informative article from the WSJ about how to avoid rising IRS penalties.
Make sure to stick around for the listener questions segment where I answer Jeff’s question on how to bridge the income gap between retirement and Social Security.
Outline of This Episode * [1:42] Paying quarterly tax withholding * [8:24] My two tips on avoiding penalties * [11:48] On bridging Jeff’s retirement income gap
Resources & People Mentioned * The Retirement Podcast Network * WSJ article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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When was the last time you checked your beneficiaries on your retirement account? After listening to today’s episode, I guarantee you’ll be logging in to verify. In the retirement headlines segment, we’ll check out a Yahoo Finance article titled ”They Broke Up In 1989, But Now His Ex-Girlfriend Is Inheriting His $1 Million Retirement Account […]
The post My Ex Has Your Inheritance… Ep # 357 appeared first on Retirement Starts Today Radio.
While, for some people, the transition to retirement goes perfectly smoothly, that’s not the case for everyone.
Most of us are counting the days until retirement. We’re excited by all the prospects this new stage in life will bring. However, some people struggle with the change. In this episode of Retirement Starts Today, we’ll look at a common issue with retirement from a psychological perspective with this article from Psychology Today.
In the listener question segment, I’ll touch on how to bridge the gap between the beginning of retirement and collecting Social Security and discuss how to invest for the short-term in retirement. It’s time to up your retirement game; press play to get started.
Outline of This Episode * [1:22] I just retired so why am I unhappy? * [8:55] What the hapipest retirees do * [11:00] How to generate income to bridge an income gap before Social Security * [16:05] How to invest for the short-term in retirement
Resources & People Mentioned * The Retirement Podcast Network * Psychology Today article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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It’s no secret that I want you to spend more money in retirement. Why? Because you’ve worked for it! Retirement is about living the life you have saved for all these years, so I’m looking for any way I can to help you get out there and enjoy it. One way that has been gaining […]
The post Semi-Retire to Spend More $$$?! Ep #355 appeared first on Retirement Starts Today Radio.
We’ve all heard the saying, “Money can’t buy happiness.” However, research suggests that while money may not buy lasting joy, it can certainly enhance our lives if spent wisely. The key lies in how we spend our money. On this episode of Retirement Starts Today, we’ll explore a recent article on spending money to maximize […]
The post How To Spend Your Money To Maximize Happiness, Ep # 354 appeared first on Retirement Starts Today Radio.
By now, we’ve all heard of AI, but many people still have mixed feelings about this revolutionary tool. Since I’ve been using it in my life on a daily basis, I have been wanting to share how you all can use AI to help with retirement planning. When I came across this article from Business […]
The post Your AI Retirement, Ep #353 appeared first on Retirement Starts Today Radio.
Many factors should come into play when deciding when to take your Social Security benefit but doomsday headlines shouldn’t be one of them. On this episode, you’ll hear how Social Security’s biggest myth is costing retirees a lot of money. Don’t get caught unaware! Make sure to stick around until the end to hear about […]
The post Social Security’s ‘Biggest Myth’ & Jury Duty Scams, Ep # 352 appeared first on Retirement Starts Today Radio.
The 4% rule is the “golden rule” of retirement planning. Everyone is familiar with it and it’s easy to work out for some quick, back-of-the-napkin math.
Since it is so easy to calculate and implement, many use it as their retirement withdrawal rule. However, this approach may be overly conservative. While using a significantly higher withdrawal rate may go too far, the 4% rule may be too cautious.
Listen in to hear the limitations of sticking with this overly simplistic rule of thumb.
Outline of This Episode * [2:02] Is the 4% rule too safe? * [10:50] Does it make sense to spend more in the early years while awaiting full retirement age?
Resources & People Mentioned * The Retirement Podcast Network * Think Advisor article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Did you know that you can buy gold at your local Costco?
However, just because it’s easy to buy doesn't mean it’s easy to sell.
In this episode of Retirement Starts Today, we’re exploring gold and its role in your retirement portfolio. To do that, we’ll take a look at a retirement headline from WSJ and i’ll share my thoughts on the latest gold rush.
Make sure to stick around until the end for Kevin’s question about the key difference between accumulation and decumulation.
Outline of This Episode * [1:12] Gold and groceries * [5:08] My thoughts on buying gold * [11:03] Accumulation vs. decumulation
Resources & People Mentioned * The Retirement Podcast Network * WSJ article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Risk is what is left over after you think you’ve thought of everything. – Carl Richards
Getting to financial independence is job #1, but staying financially independent comes a close second.
To do so you’ll need to be aware of the risks that could empty your accounts. Being vigilant of these risks and having a plan to work through or avoid them could save you hundreds of thousands of dollars. Listen in to hear how you can save your financial independence.
Outline of This Episode * [1:22] 3 big risks to look out for in retirement * [5:01] Long-term care * [13:55] Getting scared out of the market * [20:12] Getting scammed
Resources & People Mentioned * The Retirement Podcast Network
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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There are two ways you can ruin your retirement: running out of money and dying with regret.
If you are listening to this podcast, chances are, you’ve been a diligent saver and probably aren’t in danger of the first one.
That’s why, today, we’re exploring an article from the White Coat Investor on ways to spend more money.
Don’t risk ending your days with regret. Listen in to find out how you can enjoy all that you have worked for.
Outline of This Episode * [1:22] Two ways to ruin retirement * [5:13] Strategies for spending more money * [12:47] How to spend your HSA
Resources & People Mentioned * The Retirement Podcast Network * BOOK - Die with Zero by Bill Perkins * 8 Ways to Spend More Money
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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It can be easy to forget your age as the birthdays roll around. However, when you’re about to turn 65 you’ll know. Medicare and all of their relevant service providers won’t let you forget.
You may feel inundated with the amount of mail, emails, and even phone calls and text messages, but rather than ignoring all the excess information, it’s important to dig in and learn so tha you can make the best decision for your healthcare.
To help you avoid potentially expensive and health-altering mistakes, today we’ll review 5 of the biggest Medicare mistakes you can make by reviewing an article by Rick Fine from The Sensible Financial Planning blog.
Outline of This Episode * [1:36] The 5 biggest Medicare mistakes * [14:05] A rule of 55 question
Resources & People Mentioned * The Retirement Podcast Network * Sensible Financial Planning blog * Medicare Basics: What to Expect as You Approach Age 65 with Danielle Roberts
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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You’ve been accumulating your savings your entire life, but when the time comes to draw down your investments, there are new risks. In this episode, we’ll discuss four risks that come with the decumulation phase of retirement.
Press play to learn how to avoid these risks in retirement.
Are you looking for a new advisor? One of our listeners is looking for a checklist to help him hire a retirement advisor. While answering that question I went ahead and made my advisor checklist available to all of you to download here.
Outline of This Episode * [1:47] Understand effective strategies for the decumulation phase * [11:20] Do I have a checklist to use to hire a retirement advisor?
Resources & People Mentioned * The Retirement Podcast Network * Questions to ask a retirement advisor
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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A lot of us are looking to get in shape in retirement. This is a good thing since part of living an even better retirement is looking after your health and muscle mass. Staying healthier and more active longer will ensure that you are making the most out of your retirement. In addition, maintaining a healthy muscle mass is a huge part of keeping your health as you age.
In this episode, we’ll explore a Scientific American article on keeping your muscles strong as you age. Make sure to listen in to discover some tools that I use to track my health and wellness as I enter the second half of my life.
Outline of This Episode * [1:12] Keeping up your muscles * [5:23] What I’m doing to stay healthy * [10:01] How can two opposite approaches achieve the same goal?
Resources & People Mentioned * The Retirement Podcast Network * Scientific American article * Dexa Scan * InBody Scan * My Fitness Pal * Whoop Band
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Do you have index funds in your portfolio? Chances are you do!
Our retirement headline today describes the rise of index funds over active funds and why that’s important. Discover how index funds connect with my investment philosophy by pressing play now.
Outline of This Episode * [1:22] Index funds have grown exponentially over the years * [2:23] What are index funds * [5:58] How index funds fit into my investment philosophy * [10:04] Will my estimated Social Security benefit decrease if I retire before full retirement age?
Resources & People Mentioned * The Retirement Podcast Network * Morning Star article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Recent legislation has made everyone’s favorite college savings plan a little more flexible. Funds in a 529 plan aren’t as locked up as they used to be now that your children’s unused college funds can be rolled into a retirement account.
In this episode, we’ll discuss an article from the White Coat Investor which explores how the 529 can be rolled into a retirement account. We’ll discover the benefits and drawbacks of using a 529 to save for retirement. Listen in to hear whether the 529 rollover could help you in your retirement.
Outline of This Episode * [2:12] Using unused 529 funds * [9:30] Utilizing spend-down strategies
Resources & People Mentioned * The Retirement Podcast Network * The 529 to Roth IRA Rollover
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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It may be easy to define success in your working career, but defining success in retirement can be more difficult. What does success look like in retirement? What will you do daily or weekly to get the most out of your retirement?
In this episode of Retirement Starts Today, we’ll explore a TEDx talk about the 4 phases of retirement that many (but not all) experience. Click play to hear how you can squeeze the most juice out of your retirement.
Outline of This Episode * [1:52] How to squeeze the most juice out of retirement * [11:18] Help with spending more in retirement
Resources & People Mentioned * The Retirement Podcast Network * The 4 Phases of Retirement TEDx Talk * The 4 Phases of Retirement by Fritz Gilbert
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Due to last year's poor market returns, you’ve probably seen the headlines that the 60/40 portfolio is dead. But is that really the case?
This week’s retirement headline explores the history of this classic retirement investment strategy. After we tackle the headlines, Bret and I team up to consider the best places to move in retirement. Listen in to hear where not to move.
Outline of This Episode * [1:52] A history of the 60/40 portfolio * [8:09] Why I like 60/40 * [15:10] Where should retirees consider moving to for a great retirement?
Resources & People Mentioned * The Retirement Podcast Network * A Short History of the 60/40 Portfolio
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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There are many ways that could threaten your financial security in retirement. Knowing the common issues can ensure that you don’t fall into the traps.
Today’s financial headline comes from Yahoo Finance and is called 8 Ways Baby Boomers Become Poor in Retirement. Listen in to learn what they are so that you don’t drive yourself into the poorhouse.
Outline of This Episode * [1:22] 8 ways to become poor in retirement * [10:58] How can we determine the biases in an advisor
Resources & People Mentioned * The Retirement Podcast Network * 8 Ways Baby Boomers Become Poor in Retirement
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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We all want to retire, but have you considered how you would like to transition to retirement?
This week’s retirement headline article shares some interesting statistics on phased retirements: who is thinking about them, who is utilizing them, and what people think about them.
Listen in to learn the findings. Then stick around for our listener question surrounding stock positions, diversification, and taxes.
Outline of This Episode * [1:42] Exploring the idea of a phased retirement * [7:12] Can a phased retirement allow you to have your cake and eat it too? * [11:38] A book update * [13:10] Weighing risk vs tax consequences
Resources & People Mentioned * The Retirement Podcast Network * ThinkAdvisor article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Once upon a time, there was a prediction that the baby boomer generation would face a retirement crisis. So how did this gloom and doom projection turn into the wealthiest generation in history? Listen in to find out.
Make sure to stay tuned for the listener question: What is the best way to fund a large expense without a large tax bill?
Outline of This Episode * [1:37] The accuracy of predictions * [7:26] What is the best way to fund a large expense without a large tax bill
Resources & People Mentioned * The Retirement Podcast Network * City Journal article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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You’ve heard of the 4% rule, and if you’ve listened to this podcast before, you’ve heard of Guyton’s guardrails strategy. But have you ever heard of using them together? Today’s retirement headline explores this idea.
Overall, the article highlights the importance of considering sequence-of-returns risk in retirement planning and adopting flexible strategies, such as guardrails, to ensure financial security throughout retirement.
Listen in to learn more about this combination of strategies as well as my opinion on the matter. Then stick around for the listener question segment where Bret and I answer the question: Do I need a will if I want to split my assets evenly between my two children?
Outline of This Episode * [1:42] Sequence of returns risk is the greatest risk to your retirement * [6:48] How you can take the best of both strategies * [14:20] Should I have a will to split my assets evenly between my kids?
Resources & People Mentioned * The Retirement Podcast Network * Financial Advisor Magazine article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Is it possible to suddenly step away from a high-powered job and into a life of leisure? This may not be the best idea for your retirement if you work at the executive level.
In this episode of Retirement Starts Today, we’ll explore an article from Harvard Business Review that outlines several pitfalls that could come with retiring from a high-powered job and insights on how to navigate them.
Stick around for the listener question segment to hear the best ways to give money to your adult children while you are still living rather than waiting until you pass away to leave an inheritance.
Outline of This Episode * [1:42] Advice for a CEO about to retire * [3:36] Areas to think about when making the retirement transition * [12:54] Advice on giving money to adult children while you’re still living
Resources & People Mentioned * The Retirement Podcast Network * Harvard Business Review article * Episode 295 - How Could This Go Horribly Wrong? Lessons in Estate Planning Part 1 * Episode 296 - My Kids Don’t Want My Stuff – Lessons in Estate Planning Part 2
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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There are two ways to mess up retirement: run out of money or die with regret. Oftentimes, people in the retirement space only focus on the running out of money part.
In an effort to help you live an even better retirement, today’s retirement headline discusses the regret part. Join me to learn five expenses that retirees wish they had spent more money on so that you can learn from their mistakes.
Stick around to hear the answer to our listener question: Is there one person who can help develop a comprehensive retirement plan? Or do you need to have an investment advisor, a financial advisor, a tax advisor, and an estate planning attorney? Find out the answer by pressing play.
Outline of This Episode * [1:42] The 2 ways to mess up retirement * [8:12] Investing in your home * [10:00] Helping your children * [14:38] Is there one person that can do all my retirement planning?
Resources & People Mentioned * The Retirement Podcast Network * Yahoo Finance article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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If you want to spend more money in retirement you’ll want to understand how to maximize your Social Security benefits. Many people think that there is no going back once you’ve decided to collect your Social Security benefits. However, today’s retirement headline discusses two options in case you’d like a do-over.
In our listener question segment, one listener asks the best way to pass on their assets to their children. Listen in to hear the answer and scroll to the bottom of the show notes to discover more estate planning resources.
Outline of This Episode * [2:02] What happens if you change your mind about collecting Social Security? * [7:01] When exactly should you start Social Security? * [10:50] The best way to pass assets onto your kids
Resources & People Mentioned * The Retirement Podcast Network * Retirement Revealed podcast * Financial Advisor Magazine article * Estate planning episodes 295, 296, 124, 313, 255
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Tax season is here so when I found this article from Morning Star to share some tax tips for you. Your tax bill will be the largest bill you pay in retirement. If you want to reduce it, make sure to press play.
Helping clients save money on taxes and avoid common investment mistakes is an important task for financial planners. If you don’t have a financial planner, that means you are your own financial planner, so you’ll want to take good notes.
Outline of This Episode * [1:22] Maximizing tax savings * [3:30] How to utilize deductions * [7:45] How to utilize investment strategies * [11:11] How to utilize Roth conversions * [13:32] How to know how much to safely spend and how to know if I’m spending too much?
Resources & People Mentioned * The Retirement Podcast Network * Episode 331 - We Need to Talk About Your Retirement Spending * Episode 332 - A Tax Break Worth the Hassle * The Retirement Tax Podcast - the least boring tax podcast! * Morningstar Article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Some tax breaks aren’t worth the hassle of pursuing them, however, today’s example is definitely worth the hassle!
If you are charitably minded you’ll want to listen to learn about the advantages of making qualified charitable distributions. Discover how to increase your standard deduction while enjoying charitable tax benefits.
Stick around for the listener question to hear a great way to start practicing spending your money when you have been over-flexing your savings muscle.
Outline of This Episode * [2:22] The power of qualified charitable distributions * [5:56] How IRMAA thresholds work * [7:27] Three key takeaways * [12:41] How to convince your spouse that you have enough money to retire
Resources & People Mentioned * The Retirement Podcast Network
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Planning retirement spending is tough to do since there are so many unknowns. Many people tend to take a fear-based approach and rely on the 4% rule. Some even take a step further and spend less of their nest egg.
Today’s Retirement Headline urges you to take a different approach. Listen in to hear what the article advises and my thoughts on the matter. Then stick around for the listener question to learn how our national macroeconomic situation affects financial planning.
Outline of This Episode * [1:22] Rethink underspending in retirement * [5:01] My thoughts on the article * [10:12] How does our national macroeconomic situation affect financial planning?
Resources & People Mentioned * The Retirement Podcast Network * The Morning Star article * BOOK - More than Enough by Dave Ramsey * BOOK - Die with Zeroby Bill Perkins
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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I don’t know about you, but I want to stay active and healthy for as long as possible. That’s why when I saw this Forbes article I knew I wanted to share it with you.
If you want to learn how to age gracefully and maintain your vitality, you won’t miss this episode. Then, stick around to hear my answer to the question: why do some people have a hard time with retirement?
Outline of This Episode * [1:24] How to age gracefully and maintain vitality * [4:20] Embrace interdependence * [9:55] Why do some people have a hard time with retirement?
Resources & People Mentioned * The Retirement Podcast Network * Forbes article * Dexa body scan * InBody body scan
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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As you probably know by now, Bret and I are here to help you spend more money and spend less in taxes so that you can live an even better life in retirement.
This week we’re helping you do that by sharing some lessons that we learned from our clients’ fall tax meetings. If you enjoyed our Lessons in Estate Planning episodes last spring, you’ll love hearing what we learned from our clients this fall. Press play to hear what you can learn from our experience with our clients.
Outline of This Episode * [1:42] Why we love Roth conversions * [10:40] Don’t forget to plan for taxes as a widow/er
Resources & People Mentioned * How Could This Go Horribly Wrong? Lessons in Estate Planning Part 1, Ep #295 * My Kids Don’t Want My Stuff – Lessons in Estate Planning Part 2, Ep # 296
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Would a 0% tax rate help you live an even better retirement? In this week’s Retirement Headline, we’ll explore a WSJ article titled How You Can Grab a 0% Tax Rate. If that doesn’t pique your interest, I don’t know what will!
Listen in to hear how you can learn to plan so that you can take advantage of a 0% tax rate on capital gains income.
This episode originally aired in August 2023.
If you have diligently saved throughout your career, you may be ready to retire, yet still feel uncertain about spending your savings.
To truly live your best life in retirement you need to learn how to shift from a saving mindset to a spending mindset. In this episode of Retirement Starts Today, we’ll help you do just that.
This episode was first broadcast in July 2023.
One of the greatest financial assumptions is that it’s always better to own than to rent. However, in retirement, this may not be true. Once you are financially independent it is important to realize that not every dollar you spend needs to yield a return.
Join me for this episode of Retirement Starts Today to question traditional thinking and to see how you can improve your life, spend more money, and have more fun in retirement.
This episode was first broadcast in June 2023.
Do you have an HSA? If so, do you simply use it to pay for your medical expenses? Or do you use it as a way to build your wealth? Today we’ll look at an article from Financial Advisor Magazine that will help us identify opportunities for wealth creation.
Listen in to learn how to maximize the triple benefit of the humble HSA.
This episode was first broadcast in March 2023.
We are spending some extra time off from the podcast over this holiday season to spend time with family. I hope you're using this opportunity to spend some time with family as well.
I've gone through my favorite episodes of 2023 to bring you some fantastic rebroadcasts. So here's one and I hope you enjoy it!
The Puzzling Gap Between How Old You Are and How Old You Think You Are, first broadcast in May 2023.
Do you ever get together with your friends from high school and wonder why they all look so old? Are you surprised by the image that you see in the mirror each morning? If so, you’re not alone.
In today’s retirement headline segment, we’ll explore an article from Jennifer Senior at MSN.com that examines the abstract concept of feeling a different age in your head than you physically are in years.
Related to the retirement headline, today’s listener question is about how to understand when you are mentally ready to retire. Learn how important purpose is in your decision to retire.
Most people are worried about spending too much and running out of money in retirement. However, few people worry about spending too little.
In this week’s episode of Retirement Starts Today, you’ll learn why you should spend your principal in retirement. Our retirement headline comes from Dr. Jim Dahle at the Whitecoat Investor and shows us why many people don’t spend enough of their money and how you can take a practical approach to spending more.
If you are like most people, one of your main worries about retirement is that you’ll end up running out of money. While this is a well-founded fear for many underfunded Americans, chances are, if you are listening to this show, you aren’t an underfunded retiree.
While the current state of retirement savings is quite shocking, if you have a healthy retirement portfolio, you don’t have to lump yourself in with the majority of Americans.
Outline of This Episode * [1:52] Many people have a fear of running out of money in retirement * [3:40] The state of retirement savings * [7:02] Why some people don’t spend their principal * [13:19] What should you do with excess RMD dollars?
Resources & People Mentioned * Spend Your Principal * The Extraordinary Upside Potential Of Sequence Of Return Risk In Retirement * Boomer Benefits * Boomer Benefits on Facebook
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Would you like to have more confidence in your retirement plan? In the retirement headlines segment, you’ll learn one simple way to increase your certainty about what you can accomplish in retirement.
In the listener questions segment, Bret helps answer what the essential aspects of an estate plan include.
If you are ready to get serious about retirement planning press play to get started.
Outline of This Episode * [2:26] A written retirement retirement plan boosts your confidence * [4:11] 4 areas to consider in your plan * [11:15] What do you need to create an estate plan?
Resources & People Mentioned * Boomer Benefits * Boomer Benefits Facebook Group * Here’s One Surefire Way to Boost Retirement Confidence * The link to the video and schedule
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Do you wish you had more optionality when it comes to designing your retirement? In this episode of Retirement Starts Today, we’ll explore an article from Forbes that poses five alternatives to the 4% rule that you may want to explore for your retirement withdrawal strategy.
In our retirement headlines segment Bret and I team up to answer a question that both Google and ChatGPT got wrong. Find out what it is by listening until the end!
Outline of This Episode * [2:22] The types of spending strategies that can be used in retirement * [13:30] Is creating a donor-advised fund a good way to avoid IRMAA?
Resources & People Mentioned * Boomer Benefits * Boomer Benefits Facebook group * Forbes article * Want to help me with my book? Take this survey! * Schedule a meeting with me to see if we would be a good fit * Trusted sources for financial information - Ed Slott, IRS.gov, Kitces.com
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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What happens if you get to retirement age and realize that you saved too much? Believe it or not, this does happen and has its own set of problems. In this episode, we’ll explore those problems along with some potential solutions.
Stick around until the end of the episode to hear our listener question about deciding whether to do Roth conversions or take ACA health insurance premium tax credits.
Outline of This Episode * [2:32] Too much retirement savings does have its downsides * [4:54] What you can do to combat * [8:21] My thoughts on what you can do if you saved too much * [11:27] Choosing between Roth conversions and ACA
Resources & People Mentioned * Yahoo Finance article * Book survey - have a chance to be in my book! * Schedule a meeting with me to see if we would be a good fit for each other * BOOK - Die with Zero by Bill Perkins * Retirement Income University * Boomer Benefits * Boomer Benefits Facebook group
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Would you like to make $170,000? On this episode, you’ll learn what you can do to save yourself 17% in lower returns over a decade. On a million-dollar portfolio that comes to $170,000!
In the Retirement Headline segment, we’ll dive into an article from Financial Advisor Magazine which explores Morningstar’s annual Mind the Gap study analyzing the performance of mutual and ETFs and comparing them to the returns achieved by individual investors. Press play to hear what you can do to improve your investor performance.
Outline of This Episode * [3:12] Bad timing cost investors 17% in gains * [14:45] When does a person need a financial advisor?
Resources & People Mentioned * Boomer Benefits * Boomer Benefits Facebook Group * Financial Advisor Magazine article * Take our book survey * Schedule a meeting * Garrett Planning Network * Flat Fee Advisor Network
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Have you thought about using your home’s equity to help you fund a portion of your retirement?
In this episode of Retirement Starts Today, we’ll explore a Morningstar article that examines ways to use this supersized emergency fund. If you are ready to start thinking about retirement outside the box, listen to this episode to hear how you can supplement your retirement by using your home equity.
Outline of This Episode * [1:22] Home equity is seen as a someday asset * [9:28] Reverse mortgages could be a valuable lifeline * [14:10] Clarifying the rules surrounding spousal Social Security
Resources & People Mentioned * Participate in my book survey! * Boomer Benefits * Boomer Benefits Facebook Group * 2 Ways to Use Home Equity in Retirement
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Do you remember when you were a kid and were fascinated by the thought of living to be 100? It seemed like such a far-fetched idea, but now with advances in technology, nutrition, and medicine, this far-flung notion increasingly seems like a real possibility.
As you may have guessed, today’s retirement headline discusses planning to live until age 100. We’ll explore what that prospect means for your retirement income, goals, and health. Share this episode with a friend so you can discuss it together!
Outline of This Episode * [2:42] What if you live to 100? * [12:40] How to get beyond the accumulation mindset
Resources & People Mentioned * Forbes article on aging * Check out the free Easily Avoidable Medicare Mistakes download from Boomer Benefits * Medicare Q&A Boomer Benefits Facebook group
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Medicare’s open enrollment is starting soon, so I’ve invited Danielle Roberts from Boomer Benefits to join me today.
In this episode, we’re discussing what’s new with Medicare in 2024, the important dates to remember for open enrollment, when to reevaluate your health insurance options, and how to ensure you have health coverage when traveling abroad in retirement.
Press play to hear what’s new in Medicare.
Outline of This Episode * [2:26] What’s new with Medicare this year? * [8:44] How often do people reconsider advantage vs. supplement and drug plans? * [15:42] Bearing risk * [22:00] What can you expect from your Medicare when traveling abroad?
Resources & People Mentioned * 5 Easily Avoidable Medicare Mistakes * What to Expect as You Approach Age 65 with Danielle Roberts, Ep # 163
Connect with Danielle Roberts * BoomerBenefits.com * Boomer Benefits on YouTube * Medicare Q&A Group on Facebook
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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As retirement super savers, you all know that slow and steady wins the race. According to this Wall Street Journal article, that race is paying off again for many Americans. In the retirement headlines segment, we’ll take a look at this article. Then in the Listener Questions segment, Bret and I will discuss the merits of having one firm handle investments, taxes, and retirement planning.
Outline of This Episode * [1:42] Stock market rally * [12:27] When might having one firm handling all aspects of your financial matters might not be the best case
Resources & People Mentioned * Stock-Market Rally Makes More 401(k) Savers Millionaires
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Even if you aren’t familiar with Monte Carlo analyses, you’ve probably used it. Monte Carlo drives math behind the retirement planning software that you use. Monte Carlo software is truly amazing, however, the way people look at it is wrong.
In this episode, you’ll hear the pros and cons of Monte Carlo analysis and how you can use a Monte Carlo calculator to maximize your full retirement potential.
Outline of This Episode * [1:52] When Monte Carlo simulations work and when they don’t * [7:10] How to use Monte Carlo simulations effectively * [15:13] Should you annuitize to provide a safety net?
Resources & People Mentioned * Advisor Perspectives article * Check out the Monte Carlo analysis lesson for FREE at RetirementIncome.University! * BOOK - Die With Zero by Bill Perkins
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Aretha Franklin can teach you more than a little R-E-S-P-E-C-T.
On this episode of Retirement Starts Today, you’ll learn from her estate plan (or lack thereof). After hearing about this estate plan gone haywire Bret and I will team up to answer a listener’s question on how you can transition from a saving to a spending mindset.
Listen in to ensure that your estate isn’t tied up for years while your heirs battle out the details in court.
Outline of This Episode * [2:22] Why are the notes found in Aretha Franklin’s couch a valid will? * [5:35] My takeaways * [13:23] How to switch from a saving to a spending mindset in retirement
Resources & People Mentioned * Why Are the Notes Found in Aretha Franklin’s Couch a Valid Will? * Episode 295 - How Could This Go Horribly Wrong? Lessons in Estate Planning Part 1 * Episode 296 - My Kids Don’t Want My Stuff – Lessons in Estate Planning Part 2
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Here at Retirement Starts Today, we are always looking for ways to teach you how to spend more money so that you can enjoy an even better retirement. However, many times our clients and listeners have trouble loosening their purse strings.
After years of being diligent savers, instead of enjoying the fruits of their labor, retirees reaching financial independence often find another reason to be frugal. Listen in to hear how you may be overdoing delayed gratification.
Outline of This Episode * [1:32] Will gratification always lead to a more fulfilling life? * [2:55] How to find balance * [4:01] Habits are hard to make and hard to break * [10:12] How are expense ratio fees charged?
Resources & People Mentioned * Annual Listener Survey * LifeAfterTheDailyGrind.com
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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I’ve always said that it’s important to retire to something rather than away from something. To do that means finding a sense of purpose.
In this episode, we’ll explore an article from PhysicianOnFIRE.com that discusses how retirees can discover and maintain a sense of purpose in their lives after leaving the workforce.
Make sure to stick around for today’s listener question. This one was my favorite one this year so don’t miss it!
Outline of This Episode * [2:12] How to maintain a sense of purpose as a retiree * [8:43] Why a purpose-filled life is important to retirement * [12:40] How to deal with guilt about retiring from a much-needed service profession
Resources & People Mentioned * PhysicianOnFIRE.com * Annual Listener Survey * Episode 263 - Be Your Future Self Now * Episode 303 - Your Future (Retired) Self * BOOK – Be Your Future Self Now by Benjamin Hardy * BOOK – Your Future Self by Hal Herschfield
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Would a 0% tax rate help you live an even better retirement? In this week’s Retirement Headline, we’ll explore a WSJ article titled How You Can Grab a 0% Tax Rate. If that doesn’t pique your interest, I don’t know what will!
Listen in to hear how you can learn to plan so that you can take advantage of a 0% tax rate on capital gains income.
Outline of This Episode * [1:42] How to grab a 0% tax rate * [7:08] 4 ways to take action * [11:22] How will lowering my taxable income affect my future Social Security benefits?
Resources & People Mentioned * How You Can Grab a 0% Tax Rate
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Scammers are constantly changing their playbooks to try and stay ahead of the authorities. That is why the IRS annually updates its “Dirty Dozen Tax Scam” list. This week we’ll explore the latest article from the IRS on this year’s tax scams then we’ll check out an article from Financial Advisor Magazine that involve questionable tax practitioners and charitable remainder annuity trusts.
Don’t miss out on this week’s listener question because chances are, you have had this question as well.
Outline of This Episode * [2:22] What the IRS has to say about the dirty dozen in 2023 * [9:54] Tax scams that target the wealthy * [14:02] On making larger withdrawals in your 60s and lesser withdrawals later on
Resources & People Mentioned * The Retirement Tax Podcast * The Annual Listener Survey * The IRS 2023 Dirty Dozen * IRS Warns Of Tax Scams That Target Wealthy
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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As a financial advisor that thinks a lot about the Medicare surcharge IRMAA, an article titled Stop Worrying About IRMAA written by a source I trust certainly caught my eye.
In this episode, we’ll explore what IRMAA does, reflect on the article, and discuss whether the IRMAA surcharge is worth worrying about. If you have questions about IRMAA or are starting to approach Medicare age you won’t want to miss out on this episode.
Outline of This Episode * [1:22] How Medicare works * [5:33] How IRMAA works * [8:09] My thoughts * [9:18] Action items * [14:50] How to pay taxes on Roth conversions
Resources & People Mentioned * The White Coat Investor - Should We Even Worry About IRMAA? * Episode 101 - How to Navigate the Upcoming Changes in Medicare Supplement Plans
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Who wants to live longer? I know I do! Before you start taking magic pills and seeking the fountain of youth in an effort to increase your life span, Alex Janin from the Wall Street Journal suggests you start exercising.
In this episode of Retirement Starts Today, we’ll explore Alex’s article, What if the Most Powerful Way to Live Longer Is Just Exercise?
Make sure to stick around for the end of the show where Bret and I turn traditional retirement advice on its head as we answer one listener’s question about how to draw down their various retirement accounts.
Outline of This Episode * [2:32] Just exercise more * [5:41] Biohackers have discovered exercise is best * [8:22] Exercise sooner rather than later * [11:16] What is the best way to draw down my accounts in retirement?
Resources & People Mentioned * Whoop Strap * WSJ article - What if the Most Powerful Way to Live Longer Is Just Exercise?
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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If you have diligently saved throughout your career, you may be ready to retire, yet still feel uncertain about spending your savings.
To truly live your best life in retirement you need to learn how to shift from a saving mindset to a spending mindset. In this episode of Retirement Starts Today, we’ll help you do just that.
This is the podcast where you can learn how to spend more money and pay less taxes on your way to an even better retirement. Listen in to learn how you can start spending more money so that you can enjoy your best retirement.
Outline of This Episode * [2:52] 3 techniques retirees can use to spend more money confidently * [6:30] Techniques #2 and 3 * [12:24] Can my wife receive a spousal benefit before I receive my Social Security benefit?
Resources & People Mentioned * ThinkAdvisor article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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If you are new to the show, welcome! This is a place where we talk about how to spend more money, pay less taxes, and have an even better retirement. Today we’re investigating that last part–the even better retirement.
In the retirement headlines segment, we’ll take a look at a CNBC article that dives into an 85-year happiness study from Harvard University. Results from this study reveal the number one retirement challenge no one is talking about. Listen in to hear what this could be.
Outline of This Episode * [1:22] The number one retirement challenge that no one talks about * [3:38] Ask yourself a few questions * [8:17] How to go about bridging insurance before Medicare
Resources & People Mentioned * Boomer Benefits * CNBC article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Do you long for a lost golden age when everything was better? If you do you’re not alone. Many people feel that society is experiencing a moral decline. But is that really true?
On this episode of Retirement Starts Today, we’ll explore a New York Times article that challenges this way of thinking and attributes it to cognitive biases. Listen in to learn what you can do to improve your thinking about the present and the future so that you can experience an even better retirement.
Make sure to listen until the end of the episode to hear how you can celebrate my 300th episode with me and save 40% on Retirement Income University.
Outline of This Episode * [1:32] Your brain has tricked you into thinking everything is worse * [6:10] Maximize your full potential in retirement by eliminating stinkin’ thinkin’ * [8:15] Should this listener continue aggressively investing in retirement? * [11:20] Consider how you handled market corrections in the past
Resources & People Mentioned * Enter promo code Podcast at checkout and save 40% on Retirement Income University Hurry–the offer ends! July 31, 2023! * NYT article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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If you want an amazing retirement you need to start thinking about your future self. We discussed the idea of your future self on a previous episode where I interviewed my coach, Dr. Benjamin Hardy.
In this episode, we’re taking a look at another book on the future self, Your Future Self by Hal Herschfield. I’m listening to the audiobook now and this topic has me thinking about how it applies to retirement. Listen in to hear more about this book and my exciting announcement about my own explorations into the topic of the future self in retirement.
Outline of This Episode * [2:55] 4 observations on how your future perspective impacts your present * [8:15] 4 areas that you can reflect on to improve your future self * [12:15] The risk vs the value of starting Social Security at 62 versus 65
Resources & People Mentioned * Forbes article on your future self * Episode 263 - Be Your Future Self Now with Dr. Benjamin Hardy * BOOK - Be Your Future Self Now by Benjamin Hardy * BOOK - Your Future Self by Hal Herschfield
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Happy 4th of July weekend!!
Can you believe the podcast that started as a crazy experiment on my kitchen counter in the fall of 2015 is now over 300 episodes?! Thank you for all your support over these many years.
As a way to say thank you, I'm heavily discounting Retirement Income University this month.
Enter promo code "PODCAST" for a special $300 price to celebrate episode #300 (nearly 40% off).
Click here -> www.RetirementIncome.University
Happy 4th of July weekend, have a hot dog for me!
One of the greatest financial assumptions is that it’s always better to own than to rent. However, in retirement, this may not be true. Once you are financially independent it is important to realize that not every dollar you spend needs to yield a return.
Join me for this episode of Retirement Starts Today to question traditional thinking and to see how you can improve your life, spend more money, and have more fun in retirement.
Outline of This Episode * [1:42] Change your relationship with money * [3:21] With financial independence you can throw money away * [3:55] 12 reasons to rent in retirement * [10:20] How the Guyton-Klinger spending strategy works
Resources & People Mentioned * BOOK - Die with Zero by Bill Perkins * Episode 300 - $300 Gym Bag
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Have you considered working part-time in retirement? A growing number of older adults are choosing to continue work even after reaching retirement age. While some continue work due to financial necessity, many choose work that offers fulfillment and enjoyment.
In the retirement headlines segment of this episode of Retirement Starts Today, we’ll explore the meaning and nature of work and what that could mean for your retirement.
Make sure to stick around for the listener questions segment where we consider the pros and cons of keeping a stable value fund in a 401K while rolling over the rest of the 401K into a Roth. This is an interesting question to explore since the pros and cons have changed recently and what once were pros are now cons. Listen in to hear why.
Outline of This Episode * [1:22] Many older adults are choosing to work in retirement * [5:16] What could this mean for younger people? * [8:41] The pros and cons of rolling a portion of a 401K into an IRA
Resources & People Mentioned * Semi-Retirees Find Work-Life Balance by Choice
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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If you clicked on this title you may be wondering what a $300 gym bag has to do with retirement. Well, this podcast focuses on learning how to spend more money and pay less taxes to set yourself up for the ideal retirement.
Outline of This Episode= * [1:32] What a new gym bag can teach us about retirement * [4:20] The lens that you view your purchases through * [6:25] A thought experiment
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Have you ever considered joining a retirement mastermind group? Many of us choose mastermind groups to further our careers, businesses, or other areas of our lives, but few think to create one for retirement planning.
Today, we’ll focus this entire episode on Fritz Gilbert’s recent article on his experience creating a retirement mastermind group.
You won’t want to miss out on hearing what you could learn from a retirement mastermind. Make sure to listen until the end to hear how you can create your own retirement mastermind group.
Outline of This Episode * [1:42] How you could learn from a retirement mastermind * [4:55] What Fritz has learned from his mastermind * [9:33] How you can create your own mastermind
Resources & People Mentioned * What I’ve Learned From My Retirement Mastermind Group * Episode 284 - Investing in Yourself – An Interview with Fritz Gilbert * Retirement Planning Education Facebook Group (Formerly Taxes in Retirement) * BOOK - The Law of Success by Napoleon Hill * BOOK - Think and Grow Rich by Napoleon Hill
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Have you ever thought about how much money you need to be truly happy? If so, you’re not alone. And chances are that number is elusive.
In today’s Retirement Headline segment, we’ll check out an article from The Atlantic called “The Reason Many Ultrarich People Aren’t Satisfied With Their Wealth.” In doing so, we’ll explore human nature and how to know when enough is enough.
In the Listener Questions segment, one listener asks how to withdraw funds from a taxable account during early retirement. Don’t miss out on discovering the logistics of how to access your money in retirement. Press play to find out.
Outline of This Episode * [1:42] What inspires the ultra-rich to keep spending? * [5:55] What can this teach us about retirement? * [8:16] How to withdraw funds from a taxable account in retirement
Resources & People Mentioned * The Reason Many Ultrarich People Aren’t Satisfied With Their Wealth
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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If you have found this podcast you’re probably interested in spending more money, spending less in taxes, and making life even better in retirement.
On this episode of Retirement Starts Today, we’re taking a look at how to spend more money in retirement by assessing a two-part article from AdvisorPerspectives.com called A Framework for Assessing Variable Spending Strategies.
If you are trying to figure out how to maintain your desired standard of living throughout retirement, you won’t want to miss hearing the authors’ findings. Press play to listen.
Outline of This Episode * [1:28] A variable spending strategy is better than a fixed withdrawal strategy * [6:40] Different types of spending strategies * [8:35] My thoughts * [11:45] How employee stock option plans work
Resources & People Mentioned * A Framework for Assessing Variable Spending Strategies * How Could This Go Horribly Wrong? Lessons in Estate Planning Part 1 * My Kids Don’t Want My Stuff – Lessons in Estate Planning Part 2 * Conversations about “Guardrails
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Welcome back to the second part of our lessons in estate planning. Bret and I recently reviewed all of our clients’ estate plans and in doing so, we learned a lot from this exercise that could help you and your heirs.
If you haven’t listened to last week’s episode make sure to go back and listen–especially if you have stepchildren or blended families. In this episode, you’ll learn why you might want to disclaim some assets, how to specifically disinherit a child, and why it is so important to clearly state your medical wishes to all of your kids.
Outline of This Episode * [1:22] Why you may want to disclaim assets * [6:00] What to do if you want to specifically disinherit one of your children * [8:07] Common * [11:22] Make sure your medical wishes are clear to all your children * [13:53] Surprising things we learned from our clients
Resources & People Mentioned * Episode 295 - How Could This Go Horribly Wrong? Lessons in Estate Planning Part 1 * We will soon be accepting new clients! Use this link to schedule a fit meeting
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Bret and I recently reviewed all of our clients’ estate plans this spring and, as a result, we have so much to share with you about what we learned. It was so much that we had to break it into multiple episodes!
If you are curious about how this sort of meeting goes and wish that you could be a fly on the wall, you won’t want to miss this episode.
Today we’ll discuss why you need to ask yourself what could go wrong, why it’s so important to consider where your documents are located, why you may want to consider having your medical power of attorney or living will a digital document, and how an executor is a mini dictator.
Everyone needs an estate plan. Listen in to hear what you need to consider when you create or update yours.
Outline of This Episode * [2:02] Having your estate planning docs in order can help you sleep better * [4:14] Don’t create complexity by trying to keep things simple * [9:17] Where are your documents located? * [12:38] How can your kids prove to a hospital that they can make medical decisions on your behalf? * [14:24] Commonly misunderstood ideas about estate planning * [25:01] The pros and cons of having co-powers of attorney or individual powers of attorney
Resources & People Mentioned * Use this calendar link to set up a 20-minute fit meeting
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Do you ever get together with your friends from high school and wonder why they all look so old? Are you surprised by the image that you see in the mirror each morning? If so, you’re not alone.
In today’s retirement headline segment, we’ll explore an article from Jennifer Senior at MSN.com that examines the abstract concept of feeling a different age in your head than you physically are in years.
Related to the retirement headline, today’s listener question is about how to understand when you are mentally ready to retire. Learn how important purpose is in your decision to retire.
Outline of This Episode * [1:02] Subjective age is feeling a different age in your head * [6:37] What can this teach us about retirement? * [8:50] Understanding the mental aspect of deciding when to retire
Resources & People Mentioned * The Puzzling Gap Between How Old You Are and How Old You Think You Are
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Have you made any changes to your retirement savings due to the poor economy? If you did, you’re not alone.
According to a Financial-Planning.com article, half of America stopped saving for retirement last year. Don’t miss hearing why this is such a bad idea.
Stick around for the listener questions segment where Bret and I address one listener’s worry about the upcoming changes to the tax code. Retirement Starts Today is the podcast where you learn how you can spend more money, pay fewer taxes, and live a better life.
Outline of This Episode * [1:42] 50% of Americans stopped saving last year * [6:10] My thoughts * [8:46] How prepared should I be for the sunset on tax laws in 2026
Resources & People Mentioned * Half of America stopped saving for retirement last year amid soaring inflation * The Retirement Tax Podcast
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You may be excited to jump on the early retirement bandwagon, but before you do, listen to this episode. In our retirement headlines segment, we explore a peer-reviewed article that shows that early retirement can accelerate cognitive decline.
Stay tuned for the listener questions segment to hear how to reimagine your retirement spending mindset by creating a flexible spending plan.
Retirement Starts Today Radio is a way to learn about having more income, paying fewer taxes, and creating an even better retirement, so if that sounds like the life you’re trying to create, press play now.
Outline of This Episode * [1:22] Cognitive decline can increase in retirement * [3:50] My takeaways from the article * [6:52] How can I convince my partner to spend more money in retirement?
Resources & People Mentioned * Research shows that early retirement can accelerate cognitive decline
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Many DIY investors would like to learn more about the latest changes in financial and tax laws but don’t have the same opportunities to attend professional financial conferences. The good news is that Bret and I do have these opportunities, and we relish sharing our findings.
On this episode of Retirement Starts Today, Bret shares his insights from his boots-on-the-ground experience at Ed Slott’s recent conference in Las Vegas. If you are curious about the changes surrounding IRAs and other retirement accounts as a result of the Secure Act 2.0, you won’t want to miss Bret’s distillation.
Outline of This Episode * [3:22] Private letter rulings are very expensive * [6:23] Tax laws are getting more complicated * [11:52] Main themes of the conference * [17:30] Don’t squander your biggest advantage in retirement
Resources & People Mentioned * Ed Slott * Devin Carroll on YouTube * Social Security Intelligence * Episode 279 - Secure Act 2.0
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Have you ever used a Monte Carlo analysis to help you plan retirement? If so, the results can seem scary. You may be looking for a 100% likelihood of success so that you can rest easy–after all, you are probably hoping for a 100% successful retirement.
However, in this episode of Retirement Starts Today, you’ll learn why a 100% success rate should not be your goal. Listen in to hear why.
Outline of This Episode * [1:42] Retirement plan uncertainties * [8:00] Don’t shoot for 100% success with a Monte Carlo analysis * [10:25] How to figure out the cost basis
Resources & People Mentioned * Monte Carlo Failures Aren’t Plane Crashes
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We talk about retirement income guardrails a lot on this show, but today we’ll go into greater depth while exploring an article from Kitces.com. This article was written by a mentor of mine and takes an advisor’s perspective on how to discuss spending increases and decreases with clients.
These are fantastic conversations to review if you have been implementing or thinking about using the guardrails strategy in your retirement plan. Grab a pen and paper and take some notes to reflect as you listen so that you can keep them handy and run them through your own filter.
Stick around until the end to hear from a listener who is unhappy with their advisor, yet concerned about the tax implications of switching to a new one.
Outline of This Episode * [2:22] What are guardrails? * [10:20] How to have the spending reduction conversation * [15:30] What to do if you are unhappy with your financial advisor
Resources & People Mentioned * Implementing Retirement Income Guardrails to Facilitate Spending Raises and Cuts * Dynamic Distribution Rate white paper * Jarvis Financial
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Do you want to know how you can fully utilize your biggest advantage over the IRS? Listen to this episode to find out.
Today, we explore a ThinkAdvisor.com article that turns traditional retirement tax thinking on its head. Then, Bret helps me answer a listener's question about opening a Roth IRA when your salary is too high. Bret has a great tip that you may not have thought of before. Finally, you’ll hear from Mike in Tuscon who is engaging in his love of music in retirement. Don’t miss out on this episode to hear how you can plan to improve your retirement.
Outline of This Episode * [1:22] Delaying taxes in retirement isn’t always the best * [5:10] My thoughts * [7:42] What about opening a Roth IRA and only making Roth conversions * [12:45] How Mike is investing in himself
Resources & People Mentioned * Delaying Taxes in Retirement Isn’t Always Best, Award-Winning Paper Shows * Personal Capital * Betterment
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Do you have an HSA? If so, do you simply use it to pay for your medical expenses? Or do you use it as a way to build your wealth? Today we’ll look at an article from Financial Advisor Magazine that will help us identify opportunities for wealth creation.
Listen in to learn how to maximize the triple benefit of the humble HSA.
Outline of This Episode * [1:22] A few tricks to turn the humble HSA into a wealth builder * [12:30] What is the Pension Benefit Guarantee Corporation?
Resources & People Mentioned * Article - A Few Simple Tricks Turn Humble HSAs into Wealth Builders * PBGC.gov
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Do you combine your finances with your partner? If you do, chances are that you might be happier. In this episode of Retirement Starts Today, we’ll explore a WSJ article written by Julia Carpenter titled Couples Who Combine Finances Are Happier. So Why Don’t More Do It?
In addition to examining the benefits of combining finances, we’ll take a look at the reasons couples choose not to pool their resources. Finally, I’ll share my thoughts on why merging with your spouse's finances could be a boon to your retirement.
Make sure to stick around for the listener question segment. Bret and I discuss whether it is worth self-funding long-term care rather than purchasing long-term care insurance. Listen in to hear discover whether you’re surprised by our response.
Outline of This Episode * [1:22] Couples who pool their finances are happier * [6:30] Do we recommend self-funding long-term care insurance?
Resources & People Mentioned * WSJ article - Couples Who Combine Finances Are Happier. So Why Don’t More Do It?
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Giving advice to your parents can be a challenge both for you and for them. However, there comes a time when the roles reverse and our parents may need to hear our practical advice. If you have been wondering how to go about doing this you’re not alone.
This week we’ll explore a retirement headline from Francine Russo at WSJ titled How to Give Your Parents Advice That They Will Actually Listen To. And to continue with the parent-child relationship theme we’ll answer a listener question about moving to be near the kids and grandkids in retirement. Don’t miss out on this helpful episode. Press play now.
Outline of This Episode * [1:12] How to give your parents advice * [6:32] On moving to be closer to adult children and grandchildren
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Investing in yourself is a great way to invest in your retirement. You may know Fritz Gilbert from the Retirement Manifesto blog or you may even have read his book, Keys to a Successful Retirement. What you may not know is how he has invested in himself in retirement.
On this episode of Retirement Starts Today, you’ll hear how Fritz has chosen to invest in his community and himself through a charity that his wife started. Listen in to hear how Fritz's life took off in unexpected directions because he chose to follow his curiosity.
Outline of This Episode * [2:22] How Fritz's life has changed in retirement * [5:30] Getting engaged in a charity is a great transition * [10:23] How he has invested in his physical health
Resources & People Mentioned * BOOK - Younger Next Year by Chris Crowley * PODCAST - Can Carl Retire? See The Retirement Planning Process In Action * FI Chautauqua Ecuador * Episode 146 - The Hidden Chances of Retirement with Fritz Gilbert
Connect with Fritz Gilbert * Freedom for Fido * The Retirement Manifesto * BOOK - Keys to a Successful Retirement by Fritz Gilbert
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Join the newsletter: https://retirementstartstodayradio.com/newsletter * Dive deeper into retirement planning with Ben at www.RetirementIncome.University
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Do you typically like to get your taxes done early? Before you rush out to submit your tax return, listen to this episode to hear why you might want to wait.
In this episode, we’ll explore a CNBC article by Kate Dore that lists the reasons you may want to wait to file your taxes in 2023. After the Retirement Headlines segment, Bret and I will discuss the differences between bonds and bond funds to see if we can answer which one is better.
Finally, in the Personal Development section, Scott from Houston will let us know what he has been doing to improve his life and health in retirement. This episode is packed full of helpful, informative ideas that you can use to improve your life in retirement. Press play now to listen.
Outline of This Episode * [1:22] Early filers should wait to submit their tax returns * [6:00] Which are better: bonds or bond funds? * [12:52] Scott is reassessing the practices and habits of his everyday life
Resources & People Mentioned * BOOK - Raise Your Healthy Deserve Level by Gary Kadi * Episode 282 - Raise Your Healthy Deserve Level an Interview with Gary Kadi * ‘Early filers’ should wait to submit their tax return in 2023, the IRS warns. Here’s why
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I’m so excited to bring you this interview with Gary Kadi. Gary is the author of one of the best books I read in 2022, Raise Your Healthy Deserve Level. I call this an accidental retirement book because although it is not specifically written for retirees, many topics apply to retirement.
Gary has so much to share in this interview. We discuss how to receive good things in life, how your net worth is directly proportional to your self-worth, why you shouldn’t reject good things, why only 5% of people retire with financial freedom, and how to find fulfillment in retirement.
This was a fantastic interview and I know you’ll enjoy hearing from Gary Kadi. Press play to hear what he has to say.
Outline of This Episode * [2:12] In life you don’t get what you deserve, you get what you think you deserve * [6:20] Tips to work on yourself that can spill over into your finances * [8:50] Retirement is an inside job * [13:00] What do you do to find fulfillment in retirement * [19:49] Accept yourself for who you are
Resources & People Mentioned * BOOK - Raise Your Healthy Deserve Level by Gary Kadi * BOOK - Think and Grow Rich by Napoleon Hill * Benjamin Hardy * BOOK - Be Your Future Self Now by Benjamin Hardy
Connect with Gary Kadi * Raise Your Healthy Deserve Level Facebook group
Connect with Benjamin Brandt * Dive deeper into retirement planning with Ben at www.RetirementIncome.University * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Many people are concerned that rising interest rates will eventually crash the housing market. Future retirees can become overly worried about the housing market since the value of their homes plays a huge role in their retirement plans.
This is why an article from Annie Lowrey at the Atlantic caught my eye. Today, we’ll dive into the article, The U.S. Needs More Housing Than Almost Anyone Can Imagine, and prognosticate the future of the housing market.
Outline of This Episode * [1:32] Addressing housing affordability concerns * [7:50] What to look for in a tax preparer * [14:50] What Jim did to improve his retirement
Resources & People Mentioned * Atlantic article: The U.S. Needs More Housing Than Almost Anyone Can Imagine
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Have you ever thought about what the future might be like for your children and grandchildren? In this week’s retirement headline, we’ll explore a Wall Street Journal article called What Old Age Might Be Like for Today’s 30-Year-Olds.
During the listener questions segment, one listener wonders whether it is possible to have too much Roth money. Finally, stay tuned for the personal development segment where we learn what Jerry is doing to find purpose and stay active in retirement.
Outline of This Episode * [1:22] What old age might look like for today’s 30-year-olds * [7:38] My thoughts * [9:12] Is it possible to have too much Roth money? * [13:57] Jerry’s investments in himself in retirement
Resources & People Mentioned * What Old Age Might Be Like for Today’s 30-Year-Olds * BOOK - Raise Your Healthy Deserve Level by Gary Kadi * The Retirement Manifesto
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Welcome back to Retirement Starts Today Radio! Today we have an extra special episode for two reasons.
Today, you’ll finally meet our newest advisor, Bret Mulvaney. He joins me today to discuss the most recent legislation regarding tax and retirement planning.
This entire episode is dedicated to reviewing the Secure Act 2.0. Listen in to learn what’s changing in retirement planning and how the Secure Act 2.0 will change your retirement tax situation.
Outline of This Episode * [2:12] The age for RMDs is changing * [7:58] Qualified Charitable Distributions have not changed * [10:35] Roth 401k or 403b no longer needed RMD * [12:00] An update to 529 plans * [16:58] Key takeaways
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Do you ever wish you could sneak a peek into someone else’s retirement financial plan? Our retirement headline this week does just that. The article, Some Now More Later, takes a look into Richard Connor’s decision-making process as he examines how best to allocate his retirement funds and how he and his wife decided how to claim their Social Security benefits.
After the retirement headlines segment, we’ll discuss the best way to rebalance a portfolio in retirement. And lastly, in the personal development segment, you’ll hear our first audio submission from Linda on how she made an investment in herself by committing to learning a foreign language in retirement. Don’t miss out on this informative episode!
Outline of This Episode * [1:52] Deciding how to claim Social Security with multiple sources of income * [9:32] Connor and Vicky’s retirement income plan * [17:18] A rebalancing question * [23:20] Linda has started to learn Spanish in retirement
Resources & People Mentioned * Retirement Income University * Some Now More Later * Episode 277 - Social Security Benefits to Run Out Faster Due to Social Security COLA Increase * OpenSocialSecurity.com
Connect with Benjamin Brandt * Retirement Income University * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Welcome back to a new year or Retirement Starts Today Radio! Just as you have been envisioning your retirement, I’ve been envisioning exciting new things for this podcast.
This year we are kicking off a couple of new additions to the show that I’m particularly excited about. After the retirement headlines, we’ll have our new Lead Financial Advisor, Bret, join us as an occasional co-host for the listener questions segment. In addition to our original segments, you’ll hear from listeners like yourself in our new personal development segment.
On this episode, you’ll hear the latest news on the Social Security front, I’ll answer a question about the best investment options for mid-term investments in a retirement portfolio, and one listener, Frank, will describe how he is investing in his health to improve his retirement. Make sure to stick around until the end to hear the latest addition to your second favorite retirement podcast!
Outline of This Episode * [2:12] The number of American retirees is outpacing the number of workers * [3:52] There are really only two ways to solve this problem * [10:15] My thoughts on claiming Social Security * [11:40] The best investment options for short and intermediate-term * [17:39] Frank is proud of exercising every day in retirement
Resources & People Mentioned * Investment News article * Episode 99 - What Can a Mullet Teach us About Portfolio Distribution?
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2050 seems like a long way away, however, it is closer than we think. In this week’s retirement headline, I share an article from Richard Archer at FinanceInsights.net which explores the future of retirement and the impact that technology has had on the past, present, and future of retirement.
In the listener questions segment, I help Bruce with a question about using individual bonds vs bond funds in retirement.
You only have a couple of weeks left to answer our annual listener survey. It only takes about 3 minutes of your time to state your opinion and make your voice heard!
Outline of This Episode * [2:02] Will retired life be better in the future? * [6:40] Technology can help retirees stay independent longer * [11:08] Individual bonds or bond funds in retirement? * [17:40] Using the portfolio immunization strategy
Resources & People Mentioned * Annual Listener Survey * Retirement in 2050. Will Retired Life Be Better in the Future? * Bond mutual funds article from Schwab
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Are you fed up with paying state income taxes? Before you pack your bags and move to a no income tax state you’ll want to listen to this episode. Moving to a different state to save money on taxes could cost more than you think.
After listening to the retirement headline, make sure to stick around to hear Doug’s question about where to save extra money for retirement–my response may surprise you.
Outline of This Episode * [1:22] Don’t move to save on income tax * [6:33] Should I invest additional money in my tax-deferred 457B account?
Resources & People Mentioned * Why Moving to a State with Low Income Taxes Could Cost You
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Jim is only 3 weeks away from retiring and wants to know my top tips for someone approaching retirement. If you are on the countdown to retirement, make sure to listen to the listener's questions to hear what they are.
In the retirement headlines segment, we’ll explore the benefits of using a bucket withdrawal strategy for investments. You may be surprised to hear what the actual benefit of using the bucket strategy is. Listen in to hear what the bucket strategy can do for your retirement.
Outline of This Episode * [1:22] Do bucket withdrawal strategies work well in retirement? * [6:35] 3 Practical tips for someone retiring in 3-5 weeks
Resources & People Mentioned * WSJ article - Do ‘Bucket’ Investment Strategies Make Sense in Retirement? * BOOK - Miracle Morning by Hal Elrod * Future Self video
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What does a good night’s sleep have to do with retirement planning? Listen to this episode to find out.
Today we’ll explore an article from Andrea Peterson over at the Wall Street Journal titled, To Get a Better Night’s Sleep, First Fix Your Day. After discussing how to apply her advice to retirement, we’ll tackle Bill’s questions. Since he has a few questions I’m trying something new and answering them in a lightning round style. Stick around until the end to discover if this method worked or if it was a flop.
Outline of This Episode * [1:22] Findings from pandemic related sleep problems * [6:45] How journaling can help you sleep better * [11:00] When should Bill take Social Security? * [11:55] Should he take the lump sum or the lifetime annuity?
Resources & People Mentioned * To Get a Better Night’s Sleep, First Fix Your Day by Andrea Peterson * Oura Ring * Whoop Strap * Sound Retirement Radio with Jason Parker
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Deciding whether to delay filing for Social Security is a hefty decision. Waiting to collect Social Security until age 70 will increase your monthly benefit by 32%, but that doesn’t mean much if you don’t live long enough to reap the rewards of being patient. In today’s retirement headlines segment, I’ll share an article written […]
The post Six Month Social Security Mulligan [Rebroadcast] appeared first on Retirement Starts Today Radio.
Deciding whether to delay filing for Social Security is a hefty decision. Waiting to collect Social Security until age 70 will increase your monthly benefit by 32%, but that doesn’t mean much if you don’t live long enough to reap the rewards of being patient.
In today’s retirement headlines segment, I’ll share an article written by Jeffrey Levine from Kitces.com that discusses a workaround to the seemingly all-or-nothing decision of whether to collect Social Security benefits at full retirement age or to delay filing until age 70. If this decision has been weighing heavily on your mind, you won’t want to miss this episode.
Outline of This Episode * [1:22] If you are a do it yourself investor you are your own financial advisor * [5:30] Retroactive payments are granted as a lump sum payment * [7:03] Use the nudge strategy * [9:00] Drawbacks to the 6-month nudge strategy * [12:48] Using QLACs and MYGAs to enhance a bucket strategy
DIY investors need plenty of tools in their retirement planning toolbox Jeffrey Levine, the author of Getting Comfortable Delaying Social Security with Six Month Reversible Delays, has a way of explaining complex financial concepts by breaking them into understandable bites. You can follow him on Twitter @CPAPlanner if you are looking for another go-to financial resource.
Although today’s retirement headline was written for financial advisors, it contains valuable information for the do-it-yourself investor. As a DIY investor, you need to recognize that you are your own financial advisor. Kitces.com offers a wealth of information and is one of my favorite retirement planning resources.
Nudging your Social Security claiming decision can lessen the worry of making the wrong choice The biggest question that you probably have about Social Security is how big will your benefit be? The answer hinges on two factors: your earnings history and when you choose to take your benefit.
By the time you get ready to retire, there isn’t anything you can do about your past earnings history, but you can control when you decide to collect your benefit. The longer you wait to collect, the larger your monthly check will be. Each year that you choose to wait your payment will increase by 8%.
With lifespans continually increasing it can make a lot of sense to delay filing for Social Security. However, not everyone will live long enough to reap the rewards of delaying their monthly benefit.
Many people see the decision to delay taking Social Security until age 70 as an all-or-nothing endeavor, but that is not the case. In fact, as Jeffrey Levine explains, this decision can actually be broken up into a series of 8 smaller decisions.
By using the strategy of nudging the decision forward every 6 months, you can break this seemingly all or nothing choice into 8 separate, independent, reversible decisions which will lessen the fear of an all or nothing approach.
Challenges to using the every 6-month nudging approach As with every financial strategy, there are drawbacks to using the nudge approach every 6 months. The most obvious is that if you happen to die during your wait, you won’t be able to collect the benefits. The author makes an important side note for married couples to consider this drawback. Listen in to hear what it is.
Another downfall is that retroactive applications can reduce your lifelong benefits. Something else to consider is that if you file retroactively, you will receive retroactive benefits in a lump sum which could lead to a spike in your marginal tax rate for the year.
Breaking down the decision of when to claim your retirement benefits into many smaller, less drastic decisions can give peace of mind to the decision-maker especially when they understand that the decision is reversible.
Resources & People Mentioned * Getting Comfortable Delaying Social Security with Six Month Reversible Delays * Kitces.com * Jeff Levine on Twitter @CPAPlanner * Connect with our Sponsor Boomer Benefits * Boomer Benefits Facebook Page * Boomer Benefits YouTube Channel
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Deciding whether to delay filing for Social Security is a hefty decision. Waiting to collect Social Security until age 70 will increase your monthly benefit by 32%, but that doesn’t mean much if you don’t live long enough to reap the rewards of being patient.
In today’s retirement headlines segment, I’ll share an article written by Jeffrey Levine from Kitces.com that discusses a workaround to the seemingly all-or-nothing decision of whether to collect Social Security benefits at full retirement age or to delay filing until age 70. If this decision has been weighing heavily on your mind, you won’t want to miss this episode.
Outline of This Episode * [1:22] If you are a do it yourself investor you are your own financial advisor * [5:30] Retroactive payments are granted as a lump sum payment * [7:03] Use the nudge strategy * [9:00] Drawbacks to the 6-month nudge strategy * [12:48] Using QLACs and MYGAs to enhance a bucket strategy
DIY investors need plenty of tools in their retirement planning toolbox Jeffrey Levine, the author of Getting Comfortable Delaying Social Security with Six Month Reversible Delays, has a way of explaining complex financial concepts by breaking them into understandable bites. You can follow him on Twitter @CPAPlanner if you are looking for another go-to financial resource.
Although today’s retirement headline was written for financial advisors, it contains valuable information for the do-it-yourself investor. As a DIY investor, you need to recognize that you are your own financial advisor. Kitces.com offers a wealth of information and is one of my favorite retirement planning resources.
Nudging your Social Security claiming decision can lessen the worry of making the wrong choice The biggest question that you probably have about Social Security is how big will your benefit be? The answer hinges on two factors: your earnings history and when you choose to take your benefit.
By the time you get ready to retire, there isn’t anything you can do about your past earnings history, but you can control when you decide to collect your benefit. The longer you wait to collect, the larger your monthly check will be. Each year that you choose to wait your payment will increase by 8%.
With lifespans continually increasing it can make a lot of sense to delay filing for Social Security. However, not everyone will live long enough to reap the rewards of delaying their monthly benefit.
Many people see the decision to delay taking Social Security until age 70 as an all-or-nothing endeavor, but that is not the case. In fact, as Jeffrey Levine explains, this decision can actually be broken up into a series of 8 smaller decisions.
By using the strategy of nudging the decision forward every 6 months, you can break this seemingly all or nothing choice into 8 separate, independent, reversible decisions which will lessen the fear of an all or nothing approach.
Challenges to using the every 6-month nudging approach As with every financial strategy, there are drawbacks to using the nudge approach every 6 months. The most obvious is that if you happen to die during your wait, you won’t be able to collect the benefits. The author makes an important side note for married couples to consider this drawback. Listen in to hear what it is.
Another downfall is that retroactive applications can reduce your lifelong benefits. Something else to consider is that if you file retroactively, you will receive retroactive benefits in a lump sum which could lead to a spike in your marginal tax rate for the year.
Breaking down the decision of when to claim your retirement benefits into many smaller, less drastic decisions can give peace of mind to the decision-maker especially when they understand that the decision is reversible.
Resources & People Mentioned * Getting Comfortable Delaying Social Security with Six Month Reversible Delays * Kitces.com * Jeff Levine on Twitter @CPAPlanner * Connect with our Sponsor Boomer Benefits * Boomer Benefits Facebook Page * Boomer Benefits YouTube Channel
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Do you wish that there was a list of what to do and what not to do in your retirement? I recently discovered an article from MorningStar.com written by Sheryl Rowling titled 8 Financial Do's and Don'ts for the 7-Figure Retirement, and I thought it would be perfect to share with my listeners. You'll learn several tips that you should consider when planning your retirement.
After we analyze the article’s do’s and don’ts, we’ll turn to Debbie’s question about taking Social Security early in order to protect beneficiaries.
Outline of This Episode * [1:42] 8 Financial Do's and Don'ts for the 7-Figure Retirement * [4:11] Boredom is a 4 letter word in retirement * [6:25] Don’t take Social Security too late * [10:19] Don’t write checks to charity * [12:07] Consult a financial professional * [13:45] Should Debbie take Social Security early?
8 Financial tips for a successful retirement Don’t retire too early. Retiring too early can be detrimental to both your psyche and your savings. If you have to retire early or sooner than expected, make sure that you retire to something rather than away from something. Creating a purpose in retirement can ensure that you don’t get bored. Boredom is a four-letter word in retirement.
For every year that you retire early, you have one less year of savings and one more year of spending. Do the math to learn what that could mean for your portfolio.
Do watch your taxable income level. This may sound odd, but it often makes sense to pay more taxes now in order to pay significantly less later. Retirement is one time in your life when you have control over the taxes you pay. Implementing careful tax planning strategies can save you over the course of your retirement.
Don’t take Social Security too early or too late. When to take Social Security is a complex question, and the answers vary depending on the individual. It’s usually best to wait until full retirement age to start taking benefits and it’s often even better to delay until age 70 especially if you’re married. Listen in to hear what I usually recommend to my clients.
Do consider Roth conversions. If you have the opportunity to convert your IRA to a Roth you should even though you must pay tax on the amount converted. Remember that since these are after-tax dollars, the income they provide is never taxed.
Do consider retirement stages and safe withdrawal rates when determining your budget. Spending more in the early years of retirement makes sense as long as you consider several factors. You’ll need to ensure that you have a safety net in place and that you have a plan to reduce your spending over time or whenever the market becomes uncooperative.
Don’t lock yourself into financial commitments or expensive payments. Long-term expenses like leasing a luxury car can lock you into financial commitments that you can’t free yourself from. Becoming the Bank of Mom and Dad can not only ruin your kids’ chances of financial independence, but it can also ruin your relationship and your own financial security in retirement.
Don’t write checks to charity. Instead of writing checks to charity, consider contributing appreciated stocks. This way of charitable giving can save you more in taxes. One way to utilize this strategy is by creating a donor-advised fund (DAF) which could be likened to a charitable IRA.
Do consult a financial professional. Obviously, I agree with this tip. Consider consulting a CPA as well as a financial advisor so that you can ensure that you are considering every angle in your retirement plan.
Resources & People Mentioned * Boomer Benefits * 8 Financial Do's and Don'ts for the 7-Figure Retirement
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Have you been wondering how to best prepare for the end of the tax cuts coming up in 2026? One of our listeners is and they would like to know how Roth conversions should factor into planning for the end of those tax cuts. You might be surprised by my response to her question, so don’t miss out on the listener questions segment today to hear my answer.
If you are Medicare aged you’ll want to pay attention to the Retirement Headlines segment today as we discuss Medicare’s open enrollment period. You’ll learn what changes to pay attention to and why. Make sure to press play to hear what you need to know about Medicare’s open enrollment period, how to plan for the tax cut sunset, and a special announcement regarding the show.
Outline of This Episode * [3:02] What’s new for Medicare open enrollment * [8:52] How to prepare for the 2026 tax code changes
Resources & People Mentioned * What’s New for Open Enrollment from Investment News * Retirement Repair Shop podcast with Mary Beth Franklin * Medicare series with Danielle Roberts - Episodes 163, 164, 165, 166 * Boomer Benefits on YouTube
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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What a difference 18 months makes in the housing market! Many who bought their homes at the peak of the real estate boom are beginning to regret their decision. A recent article from BuzzFeed tells stories of remorse experienced by several homeowners who are now in over their heads.
In this episode, we’ll explore the homeowners’ stories, and compare expert opinions. Finally, I’ll close the segment with my own thoughts. Make sure to stick around until the end to hear my observations about clients’ spending patterns once they reach retirement.
Outline of This Episode * [1:22] Many who have bought a house in the past 2 years now regret it * [5:39] Advice from different financial advisors * [9:02] My takeaways * [11:33] My interesting observations about clients’ spending patterns
Resources & People Mentioned * BuzzFeed article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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There’s big news in the world of retirement. The news is so big that we have 2 articles from mainstream media sources to check out in this week’s retirement headlines segment. If you’ve been wondering how inflation will affect Social Security benefits you won’t want to miss out on this episode.
Stick around for the listener questions segment to hear how to transition from biweekly paychecks to monthly portfolio withdrawals in retirement. This transition is trickier than you might think, so you won’t want to miss my tips for making the adjustment.
Outline of This Episode * [2:02] The average Social Security beneficiary will increase by $140 per month * [4:52] What is COLA? * [9:20] Will you get the increase if you delay filing for Social Security? * [10:21] How to manage a monthly payday * [13:54] How to get extra credit from your portfolio
Resources & People Mentioned * Social Security Benefits to Increase 8.7% in 2023 from ABC News * Social Security Announces Biggest Benefit Hike Since 1981 from CBS News * Inflation Reduction Act on CBS news
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Have you been wondering if the 4% rule still applies with a bear market and high inflation? Many financial pundits may have you questioning the validity of this so-called retirement rule of thumb.
In the retirement headlines segment, I share a recent article from Financial Advisor Magazine that highlights quotes from the creator of the 4% rule, William P. Bengen. After sharing the retirement headline, I’ll chime in with my own thoughts on the validity of the rule.
Stick around until the end of the episode to hear whether Social Security benefits increase each month that you delay filing until age 70 or each year.
Outline of This Episode * [1:52] William Bengen doesn’t believe that it is necessary to adjust spending to 3% * [5:24] Where the 4% rule is helpful * [9:20] Do Social Security benefits increase each month you delay filing until age 70, or each year?
Resources & People Mentioned * The Father Of ‘4% Rule' Doesn't Buy 3% Alternative * Delayed Social Security Planner
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasa * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
Have you ever thought about purchasing stocks for purpose of generating dividend income? If that is part of your retirement plan, then you won’t want to miss this episode. Today we’re taking a look at a retirement headline from MarketWatch that highlights three considerations to be aware of before jumping into this strategy.
Stick around for the listener questions segment to hear the answer to Jerry’s question about increasing his retirement spending until it’s time to collect Social Security.
Outline of This Episode * [1:22] 3 tips for buying stocks to produce dividends in retirement * [5:01] Use a Swiss Army Knife portfolio * [7:25] On increasing retirement spending before Social Security
Resources & People Mentioned * The Nerd’s Eye View blog * @DerekTharp on Twitter
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Why don’t more people maximize their Social Security benefits? As a financial advisor, I often wonder at the surprisingly low percentage of people who choose not to optimize their Social Security benefit.
Today’s retirement headline dives into that question in further detail by analyzing a study with plenty of data. Listen in to learn when many people choose to take Social Security and their reasons for making their decision.
Outline of This Episode * [1:42] When people plan to take Social Security and why * [7:26] 55% didn‘t think they would be able to replace three-quarters of their last paycheck amount in retirement income * [10:40] How should a new retiree fill their cash reserve bucket when stocks and bonds are down?
If you know someone who could benefit from the information we cover in this show, share it with them. You may end up encouraging them to consider retirement planning in a new way and improving their life.
Resources & People Mentioned * The Prudennt Pessimist episode * Just 11% of Near-Retirees Plan to Delay Social Security Benefits Until 70
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Envisioning what your retirement will look like can often be a challenge, so it may be helpful to hear some examples of people in similar situations. In this week’s retirement headlines segment, we’ll explore a WSJ article from Veronica Dagher and Anne Tergesen that interviews 4 retirees who saved enough for a comfortable retirement. Listen in to […]
The post $2 Million Retirement Plan, Ep #264 appeared first on Retirement Starts Today Radio.
Envisioning what your retirement will look like can often be a challenge, so it may be helpful to hear some examples of people in similar situations. In this week’s retirement headlines segment, we’ll explore a WSJ article from Veronica Dagher and Anne Tergesen that interviews 4 retirees who saved enough for a comfortable retirement. Listen in to hear how they spend their time and money.
Make sure to stick around until the end to hear the answer to Donna’s question about changing her husband’s variable annuity to a less expensive option.
Outline of This Episode * [2:02] What a $2 million retirement looks like in America * [12:45] How to move a variable annuity to a less expensive option
Resources & People Mentioned * Here’s What a $2 Million Retirement Looks Like in America
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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When we envision retirement, we think more about the things we’ll do to enjoy our time than about the person that we’ll become. My guest today encourages us to change that to spend more time thinking about who we want to be in the future.
Dr. Benjamin Hardy is an organizational psychologist, speaker, and author, in addition to being my coach. I have been involved in Dr. Hardy’s coaching mastermind group for 8 months and I’m excited to extend his teaching to all of you. Make sure to stick around until the end of the episode to hear how you can receive a FREE copy of his new book, Be Your Future Self Now.
Outline of This Episode * [2:49] What are the benefits of learning about who we’ll become in the future? * [5:02] How to assess the softer goals * [8:20] How to future set your goals when your life expectancy is shorter * [17:48] How to balance our future self with the present * [25:52] Retirement Starts Today Super Book Giveaway details
Resources & People Mentioned * BOOK - Thou Shalt Prosper by Daniel Lapin * Dan Sullivan * BOOK - Die with Zero by Bill Perkins
Connect with Dr. Ben Hardy * BenjaminHardy.com * BOOK - Be Your Future Self Now by Dr. Benjamin Hardy * BOOK - Personality Isn’t Permanent by Dr. Benjamin Hardy * BOOK - The Gap and the Gain by Dr. Benjamin Hardy and Dan Sullivan * BOOK - Who Not How by Dr. Benjamin Hardy and Dan Sullivan
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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When we envision retirement, we think more about the things we’ll do to enjoy our time than about the person that we’ll become. My guest today encourages us to change that to spend more time thinking about who we want to be in the future.
Dr. Benjamin Hardy is an organizational psychologist, speaker, and author, in addition to being my coach. I have been involved in Dr. Hardy’s coaching mastermind group for 8 months and I’m excited to extend his teaching to all of you. Make sure to stick around until the end of the episode to hear how you can receive a FREE copy of his new book, Be Your Future Self Now.
Outline of This Episode * [2:49] What are the benefits of learning about who we’ll become in the future? * [5:02] How to assess the softer goals * [8:20] How to future set your goals when your life expectancy is shorter * [17:48] How to balance our future self with the present * [25:52] Retirement Starts Today Super Book Giveaway details
Resources & People Mentioned * BOOK - Thou Shalt Prosper by Daniel Lapin * Dan Sullivan * BOOK - Die with Zero by Bill Perkins
Connect with Dr. Ben Hardy * BenjaminHardy.com * BOOK - Be Your Future Self Now by Dr. Benjamin Hardy * BOOK - Personality Isn’t Permanent by Dr. Benjamin Hardy * BOOK - The Gap and the Gain by Dr. Benjamin Hardy and Dan Sullivan * BOOK - Who Not How by Dr. Benjamin Hardy and Dan Sullivan
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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When we envision retirement, we think more about the things we’ll do to enjoy our time than about the person that we’ll become. My guest today encourages us to change that to spend more time thinking about who we want to be in the future. Dr. Benjamin Hardy is an organizational psychologist, speaker, and author, […]
The post Be Your Future Self Now, an Interview with my Coach, Dr. Benjamin Hardy, Ep # 263 appeared first on Retirement Starts Today Radio.
Have you been considering a change of scenery in retirement? Before you pack up the house, make sure to listen to today’s episode.
In the Retirement Headlines segment, we’ll check out an article from Harriet Edelson at MarketWatch.com which discusses 6 considerations before moving in retirement. This informative article lists statistics and anecdotal examples that can help you make the relocation decision easier.
I was really excited to see today’s listener question as I have been researching retirement calculators. Stick around until the end to discover 2 helpful calculators that could help you understand when you have enough to retire.
Outline of This Episode * [1:22] Why people choose to move in retirement * [3:43] 6 things to think about before moving in retirement * [11:06] Recommendations for public websites to understand whether you are close to your retirement goals
Resources & People Mentioned * MarketWatch article * Fidelity Retirement Income Calculator * Vanguard Retirement Income Calculator
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Have you been considering a change of scenery in retirement? Before you pack up the house, make sure to listen to today’s episode.
In the Retirement Headlines segment, we’ll check out an article from Harriet Edelson at MarketWatch.com which discusses 6 considerations before moving in retirement. This informative article lists statistics and anecdotal examples that can help you make the relocation decision easier.
I was really excited to see today’s listener question as I have been researching retirement calculators. Stick around until the end to discover 2 helpful calculators that could help you understand when you have enough to retire.
Outline of This Episode * [1:22] Why people choose to move in retirement * [3:43] 6 things to think about before moving in retirement * [11:06] Recommendations for public websites to understand whether you are close to your retirement goals
Resources & People Mentioned * MarketWatch article * Fidelity Retirement Income Calculator * Vanguard Retirement Income Calculator
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Have you been considering a change of scenery in retirement? Before you pack up the house, make sure to listen to today’s episode. In the Retirement Headlines segment, we’ll check out an article from Harriet Edelson at MarketWatch.com which discusses 6 considerations before moving in retirement. This informative article lists statistics and anecdotal examples that can help […]
The post Six Things to Consider Before You Move in Retirement, Ep # 262 appeared first on Retirement Starts Today Radio.
I’m sure you have heard the news about the recent Inflation Reduction Act, but what will this Act mean to you as a retiree? We’ll explore this question by examining an article written by Kelly Anne Smith over at Forbes.
If politics isn’t your thing, don’t worry, it’s not mine either. I scour the internet looking for the most neutral, least political articles that I can get my hands on. So, if you are interested in only the facts and how they apply to you, then don’t miss out on the retirement headlines segment today to hear what the Inflation Reduction Act could mean for you.
In the listener questions segment, I have a 3-part question from a listener survey respondent. I’ll answer whether you should convert a 401k or traditional IRA to a Roth IRA first, the pros and cons of converting 401Ks and IRAs, and whether there is any rush to convert 401Ks to Roth IRAs.
Outline of This Episode * [3:02] What the Inflation Reduction Act means for you * [11:32] On converting to Roth IRAs from 401K or IRA
Resources & People Mentioned * Forbes article - The Inflation Reduction Act Is Now Law—Here’s What It Means For You * PODCAST - The Retirement Tax Podcast with Benjamin Brandt and Steven Jarvis * BOOK - Be Your Future Self Now by Benjamin Hardy * BOOK - Raise Your Healthy Deserve Level by Gary Kadi
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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I’m sure you have heard the news about the recent Inflation Reduction Act, but what will this Act mean to you as a retiree? We’ll explore this question by examining an article written by Kelly Anne Smith over at Forbes.
If politics isn’t your thing, don’t worry, it’s not mine either. I scour the internet looking for the most neutral, least political articles that I can get my hands on. So, if you are interested in only the facts and how they apply to you, then don’t miss out on the retirement headlines segment today to hear what the Inflation Reduction Act could mean for you.
In the listener questions segment, I have a 3-part question from a listener survey respondent. I’ll answer whether you should convert a 401k or traditional IRA to a Roth IRA first, the pros and cons of converting 401Ks and IRAs, and whether there is any rush to convert 401Ks to Roth IRAs.
Outline of This Episode * [3:02] What the Inflation Reduction Act means for you * [11:32] On converting to Roth IRAs from 401K or IRA
Resources & People Mentioned * Forbes article - The Inflation Reduction Act Is Now Law—Here’s What It Means For You * PODCAST - The Retirement Tax Podcast with Benjamin Brandt and Steven Jarvis * BOOK - Be Your Future Self Now by Benjamin Hardy * BOOK - Raise Your Healthy Deserve Level by Gary Kadi
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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I’m sure you have heard the news about the recent Inflation Reduction Act, but what will this Act mean to you as a retiree? We’ll explore this question by examining an article written by Kelly Anne Smith over at Forbes. If politics isn’t your thing, don’t worry, it’s not mine either. I scour the internet looking […]
The post The Inflation Reduction Act – What it Means for Retirees, Ep #261 appeared first on Retirement Starts Today Radio.
The decision of when to take Social Security is one of the biggest that you will face in retirement. Many people turn to Social Security break-even calculators to help them make the decision, but my guest today insists that this shouldn’t be your only deciding factor.
Social Security expert, Devin Carroll from SocialSecurityIntelligence.com joins me today to discuss all things Social Security. We’ll touch on the break-even math, including where it works and where it doesn’t, cost of living adjustments, the possibility of the Social Security system going bankrupt, and how Congress could fix the Social Security funding problem.
Since Social Security is such an important part of retirement planning you won’t want to miss this episode.
Outline of This Episode * [1:22] The break-even calculator has been used for years to help people decide when they should file * [5:36] An example of how the break-even calculator could work * [8:02] Why very few people wait until 70 to file * [8:50] What’s next for the cost of living adjustment * [12:42] Will Social Security go bankrupt? * [16:08] How could the government fix Social Security problems?
Resources & People Mentioned * Rachel Greszler
Connect with Devin Carroll * Devin’s Social Security calculators * SocialSecurityIntelligence.com * Devin’s YouTube channel
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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The decision of when to take Social Security is one of the biggest that you will face in retirement. Many people turn to Social Security break-even calculators to help them make the decision, but my guest today insists that this shouldn’t be your only deciding factor.
Social Security expert, Devin Carroll from SocialSecurityIntelligence.com joins me today to discuss all things Social Security. We’ll touch on the break-even math, including where it works and where it doesn’t, cost of living adjustments, the possibility of the Social Security system going bankrupt, and how Congress could fix the Social Security funding problem.
Since Social Security is such an important part of retirement planning you won’t want to miss this episode.
Outline of This Episode * [1:22] The break-even calculator has been used for years to help people decide when they should file * [5:36] An example of how the break-even calculator could work * [8:02] Why very few people wait until 70 to file * [8:50] What’s next for the cost of living adjustment * [12:42] Will Social Security go bankrupt? * [16:08] How could the government fix Social Security problems?
Resources & People Mentioned * Rachel Greszler
Connect with Devin Carroll * Devin’s Social Security calculators * SocialSecurityIntelligence.com * Devin’s YouTube channel
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The decision of when to take Social Security is one of the biggest that you will face in retirement. Many people turn to Social Security break-even calculators to help them make the decision, but my guest today insists that this shouldn’t be your only deciding factor. Social Security expert, Devin Carroll from SocialSecurityIntelligence.com joins me today to discuss all […]
The post All Things Social Security with Devin Carroll, Ep #260 appeared first on Retirement Starts Today Radio.
You may have seen the news about tennis superstar, Serena Williams' upcoming retirement. In a recent interview, Serena expresses her heartache about her decision. In our retirement headlines segment, we’ll explore an article from MarketWatch that compares Serena Williams’ feelings with those of many retirees upon their decision to retire.
Afterward, we’ll check out a question from our recent listener survey about whether one listener should move to be closer to family in retirement. This answer to this question is tricky and not the same for everyone, so make sure you stay around until the end to hear my thoughts.
Outline of This Episode * [1:32] Serena Williams feels no happiness upon retirement * [7:45] My thoughts on combatting depression in retirement * [10:04] What are the benefits and pitfalls of moving closer to the children in retirement?
Resources & People Mentioned * Market Watch article on Serena Williams’ retirement * Vogue article * Study on the prevalence of depression in retirement * The benefits of volunteering
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Have you ever considered taking a sabbatical from work? If you did take one, would it ruin your career and financial goals? Most companies in the United States don’t offer paid sabbaticals like some in Europe, so doing so would require extensive planning. Jake Northrup at Kitces.com recently wrote an article that could help financial planners and DIYers plan how to take a sabbatical without destroying their financial future.
If taking a mini-retirement appeals to you, make sure to listen in to hear how it could affect your financial goals. You’ll also discover loads of resources that could help you make the most of your financial planning for such an endeavor. Make sure to stick around until the end of the episode to hear my response to whether I think Social Security is doomed.
Outline of This Episode * [2:22] The idea of traditional retirement is being challenged * [6:02] An example of how one couple planned their sabbatical * [9:20] How taking time off could affect your long-term goals * [13:26] Will Social Security be eliminated by the Supreme Court? * [17:04] How to secure your benefit against possible reductions in Social Security
Resources & People Mentioned * Kitces article on Sabbatical Financial Planning * Kitces article on 3 types of retirement * Kitces article on the FIRE movement * Indeed article on employee burnout * World Economic Forum on Sweden’s sabbatical policy * Research on the Great Resignation * Reuter’s labor article * Interactive planning tools * Finding your tax equilibrium * Harvesting capital gains * Marketwatch article on Social Security * BOOK - The 4-Hour Workweek by Tim Ferriss * Episode 142 - Are You a Prudent Pessimist?
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Have you considered moving to a new city in retirement? If you work in the tech industry you may find a city willing to pay you to move there.
In today’s retirement headline segment, we’ll dive into an article written by Christopher Mims at The Wall Street Journal which explores towns that provide incentives to lure highly paid tech workers away from Silicon Valley.
Don’t miss out on the listener question segment especially if you have or are considering an annuity. I’ll explain the various fees, benefits, and drawbacks to these insurance investment products.
This is the last week to complete our annual listener survey, so if you haven’t filled it out yet, then please do so that you can voice your opinions and help direct the future of this show.
Outline of This Episode * [1:22] Some towns are offering moving incentives to remote tech workers * [5:14] How could this improve your retirement? * [6:34] How variable annuity fees are calculated * [8:40] Annuities can provide many options * [12:56] My thoughts on annuities * [16:30] Don’t forget to fill out our annual listener survey
Resources & People Mentioned * WSJ article - 71 Cities and Towns Are Paying Tech Workers to Abandon Silicon Valley * Annuity.org article * Investopedia on annuities * Capital One article on market risk * BOOK - Be Your Future Self Now by Dr. Benjamin Hardy * BOOK - Raise Your Healthy Deserve Level by Gary Kadi * Annual Listener Survey
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Have you considered moving to a new city in retirement? If you work in the tech industry you may find a city willing to pay you to move there.
In today’s retirement headline segment, we’ll dive into an article written by Christopher Mims at The Wall Street Journal which explores towns that provide incentives to lure highly paid tech workers away from Silicon Valley.
Don’t miss out on the listener question segment especially if you have or are considering an annuity. I’ll explain the various fees, benefits, and drawbacks to these insurance investment products.
This is the last week to complete our annual listener survey, so if you haven’t filled it out yet, then please do so that you can voice your opinions and help direct the future of this show.
Outline of This Episode * [1:22] Some towns are offering moving incentives to remote tech workers * [5:14] How could this improve your retirement? * [6:34] How variable annuity fees are calculated * [8:40] Annuities can provide many options * [12:56] My thoughts on annuities * [16:30] Don’t forget to fill out our annual listener survey
Resources & People Mentioned * WSJ article - 71 Cities and Towns Are Paying Tech Workers to Abandon Silicon Valley * Annuity.org article * Investopedia on annuities * Capital One article on market risk * BOOK - Be Your Future Self Now by Dr. Benjamin Hardy * BOOK - Raise Your Healthy Deserve Level by Gary Kadi * Annual Listener Survey
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Have you considered moving to a new city in retirement? If you work in the tech industry you may find a city willing to pay you to move there. In today’s retirement headline segment, we’ll dive into an article written by Christopher Mims at The Wall Street Journal which explores towns that provide incentives to lure highly […]
The post Cities That Will Pay You to Leave Town, Ep #257 appeared first on Retirement Starts Today Radio.
2050 seems like a long way away, however, it is closer than we think. In this week’s retirement headline, I share an article from Richard Archer at FinanceInsights.net which explores the future of retirement and the impact that technology has had on the past, present, and future of retirement.
In the listener questions segment, I help Bruce with a question about using individual bonds vs bond funds in retirement.
You only have a couple of weeks left to answer our annual listener survey. It only takes about 3 minutes of your time to state your opinion and make your voice heard!
Outline of This Episode * [2:02] Will retired life be better in the future? * [6:40] Technology can help retirees stay independent longer * [11:08] Individual bonds or bond funds in retirement? * [17:40] Using the portfolio immunization strategy
Resources & People Mentioned * Annual Listener Survey * Retirement in 2050. Will Retired Life Be Better in the Future? * Bond mutual funds article from Schwab
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Nobody likes to think about their own death but to save your loved ones from the headache of trying to navigate your digital accounts without your passwords, you’ll need to set them up for success now. If you don’t take steps to share your accounts after your death, gaining access to your data could be a lengthy and challenging process.
I recently found an excellent article from Dalvin Brown at The Wall Street Journal which discusses How to Pass On Your Passwords When You Die. This article gives tips on what to do with our digital lives when we pass away.
Make sure to stick around until the end of the episode to hear a question about Roth conversions and taxes. And if you haven’t done so yet, please take 3 minutes and fill out our 5th Annual Listener Survey to help me improve the show for you.
Outline of This Episode * [2:52] How to pass on your passwords * [7:35] Using a password manager * [10:15] Using passkeys makes sharing challenging * [13:42] Roth conversions and taxes
Resources & People Mentioned * How to Pass On Your Passwords When You Die * 1Password * LastPass * Google Inactive Account Manager * 5th Annual Listener Survey
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Many of us have financial goals that extend beyond ourselves to include friends and family. Doing so can be an enormous help to those you love, but it is important to consider your own financial well-being in conjunction with that of the ones you want to help. Today, we’ll look at an article that explores how to intentionally offer financial support to your loved ones without deviating from your financial goals.
The article that we’ll look at comes from Sophia Bera at GenYPlanning.com and it takes a different approach to a timeless topic. Approaching issues from a different angle can give you a new perspective.
In the listener questions segment, we’ll discuss two questions: one about inverse ETFs and another about the specific mechanics of doing a Roth conversion. Make your voice heard by completing our annual listener survey!
Outline of This Episode * [3:12] Money is a team sport * [10:54] Create healthy boundaries * [13:24] My thoughts on inverse ETFs in a declining market * [16:54] Should Dave rebalance first before making a Roth conversion?
Resources & People Mentioned * How to Financially Support Your Loved Ones without Derailing Your Plan * Fill out our annual listener survey!
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Have you ever tried tax loss harvesting? With the markets down across the board, now is a good time to learn to utilize this tax-saving tool. I found a great article about this from Barrons.com that I share in the retirement headline segment. The article explores the traps that can befall someone trying to use this strategy.
Afterward, in the listener questions segment, we’ll dive into the question: do I need life insurance in retirement? You may be surprised to learn that there is no one size fits all answer to this question.
If you have been a long-time listener of Retirement Starts Today, you may remember that I use our annual listener survey to improve the show each year. Now is the time to make your voice heard. Please take a few minutes to fill out this mostly multiple-choice survey so that we can ensure that we are bringing you the most relevant content to help guide you on your retirement journey.
Outline of This Episode * [2:17] Tax loss harvesting can be more sizzle than steak * [3:44] 7 Tips for tax loss harvesting * [15:29] How much life insurance does Jim need in retirement?
Resources & People Mentioned * Now’s a Good Time to Focus on Tax-Loss Harvesting. Here Are 7 Tips * Dave Ramsey * Our annual listener survey
Connect with Benjamin Brandt * Don’t forget to fill out our annual listener survey: https://retirementstartstodayradio.com/Survey * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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If you are like many retirees and soon-to-be retirees, you may be rethinking your entire investing strategy. Stocks are down, interest rates are up, and inflation is eating away at your purchasing power.
One listener wonders, with everything going on in the world, should they shift their investments into commodities? In the listener question segment, I discuss what commodities are, how to invest in them, and share my thoughts on whether investing in commodities is a good idea.
Before the listener questions, we’ll explore a retirement headline written by Eleanor O’Sullivan at Rethinking65.com which examines what life might look like if more people live to age 114.
Join me on this episode of Retirement Starts Today as we explore the effects of technology on longevity and whether you should jump ship from your sinking stock portfolio to invest in commodities.
Outline of This Episode * [1:32] Planning to live to 114? * [3:15] Cell phones improve access and democratize healthcare * [7:53] Technology can help in every aspect of our lives * [11:03] Is it time to invest in commodities? * [13:08] How to invest in commodities * [17:55] My thoughts on investing in commodities
Resources & People Mentioned * 88 Years Old and Planning on 114 * Brite ’22 Conference * Greycroft * Primetime Partners * Apax Partners * Sharecare * Investopedia on commodities
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Nobody likes to experience the uncertainty that a bear market brings, but it’s an even more challenging experience to weather when you are a recent retiree. It’s easy to lose sight of your goals in a bear market which is why I found an article outlining some lessons that you can remember during a bear market.
Listen to this episode to hear some wise words of wisdom that may help you keep your wits about you during this bear market. Stick around until the end to hear my thoughts on tax-loss harvesting.
Outline of This Episode * [1:42] 5 lessons to remember in bear markets * [9:20] How to use tax-loss harvesting
Resources & People Mentioned * Five Things to Keep in Mind During Bear Markets by Jack Forehand * The Retirement Tax Podcast - Listen to CPA, Steven Jarvis’ answer to the same listener question
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It’s no secret that we’re living longer than ever. People are living so long that we may soon be seeing 6 generations in a single-family.
With people living such a long time it makes retirement planning even more challenging than ever before. Understanding the 4 stages of retirement can help understand the different approaches to money management in each stage. Listen in to learn the 4 stages of retirement and how they can help you plan your retirement.
Outline of This Episode * [1:42] There may soon be 6 generations in a single family * [2:52] You may be in the anticipation stage of retirement * [4:23] The reinvention stage is perhaps the most challenging stage * [6:52] The reflection stage leads to thoughts on legacy * [9:49] Renting vs. owning in retirement
Resources & People Mentioned * Ken Dychtwald Breaks Down the Four Stages of Retirement
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Inflation is weighing heavy on the minds of retirees right now, so when I came across this article on WSJ.com from Cristin Lourosa-Ricardo, I knew I had to share it with you. Listen in to try and find the silver lining of inflation.
If you are a financial advisor fan of this show, make sure to stick around until the very end for a special announcement.
Outline of This Episode * [1:38] How to lessen the impacts of inflation * [5:19] Why you should buy the car you're leasing * [9:00] Control lifestyle creep * [14:34] How to balance a portfolio in this economic climate
Resources & People Mentioned * 15 Ways Consumers Can Deal with–and Even Benefit from–Rising Inflation * Episode 247 - What’s Going on with the Market?! with Joseph Hogue * Episode 245 - An Active Retirement Could Cost More Money with Thatcher Taylor * Capital City Wealth Management on LinkedIn
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It’s true, money can’t buy happiness. But does how you choose to spend your money affect your happiness? Today we’ll discuss one article that challenges that old adage. We’ll also discuss a multifaceted question from a listener who just accepted an early retirement package. We’ll help her consider whether to rollover funds into an IRA and figure out what to do with her target-date funds. Listen in to hear the answers to this question and to consider whether money could actually buy happiness.
For more information, visit the show notes at https://retirementstartstodayradio.com/money-cant-buy-happiness-or-can-it-ep-148/
Unless you’ve been living under a rock, you've probably noticed a bit of an issue with the stock market lately. This can be distressing for any retiree, but when the declines in stock prices are coupled with high inflation and rising interest rates, then you have a triple threat to your retirement plans.
Today we have a special guest joining the show. Joseph Hogue, CFA from the Let's Talk Money! YouTube channel, is here to help us understand what the heck is going on with the stock market. If you have been trying to figure out what you should be doing with your portfolio you won’t want to miss this interview with Joseph Hogue
Outline of This Episode * [1:22] What is a CFA? * [3:22] What the heck is going on with the stock market? * [8:55] Will this be over sooner or later? * [10:50] Should we rebalance now?
Connect with Joseph Hogue * Let's Talk Money! with Joseph Hogue, CFA * MyStockMarketBasics.com
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We’ve all heard of the 4% rule, but did you know that the creator’s recommendation for it has changed over the years?
I recently discovered an article from ThinkAdvisor.com that included an interview with the father of the 4% rule, Bill Bengen. In the retirement headlines segment, we’ll take a close look at the article and learn directly from Mr. Bengen’s perspective and then I’ll offer my own. Don’t miss out on this glimpse into the mind of the creator of the 4% rule.
Outline of This Episode * [2:12] Manage the risk portion of your retirement nest egg actively * [7:00] Adjust your withdrawal rates along with inflation * [7:47] My thoughts on using the 4% rule * [15:03] Is there a way to improve Jim’s retirement plan?
Resources & People Mentioned * Father of 4% Rule Urges Caution, Cash as Market Risk Rises * The American College of Financial Services * The Extraordinary Upside Potential Of Sequence Of Return Risk In Retirement
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Are you planning on enjoying an active retirement? If so, it may cost you more than you think.
On this episode of Retirement Starts Today, I interview Thatcher Taylor, the financial advisor behind ProPathFinancial.com. Thatcher and I discuss how to prepare financially and mentally for an active retirement.
Outline of This Episode * [1:42] How to navigate the balance between * [3:18] How plan for a longer retirement * [9:00] A phased retirement plan could help you stay active * [11:55] Do you have a sense of purpose in retirement? * [18:33] Check out Thatcher’s YouTube channel
Resources & People Mentioned * Dr.Peter Attia
Connect with Thatcher Taylor * Thatcher Taylor on YouTube * ProPathFinancial.com * @DadBodFinancial on Instagram
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Are you fed up with paying state income taxes? Before you pack your bags and move to a no income tax state you’ll want to listen to this episode. Moving to a different state to save money on taxes could cost more than you think.
After listening to the retirement headline, make sure to stick around to hear Doug’s question about where to save extra money for retirement–my response may surprise you.
Outline of This Episode * [1:22] Don’t move to save on income tax * [6:33] Should I invest additional money in my tax-deferred 457B account?
Resources & People Mentioned * Why Moving to a State with Low Income Taxes Could Cost You
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If you are looking to ease into retirement by transitioning into a part-time role first, you won’t want to miss this episode of Retirement Starts Today. In the retirement headlines segment, we’ll explore an article by Anne Tergesen at the Wall Street Journal which outlines topics to consider when phasing out your retirement before retiring fully.
Make sure to stick around for the listener questions segment to hear a question from Scott about how to evaluate COLA options on a pension. Press play to start planning your amazing retirement.
Outline of This Episode * [1:32] Talk to your employer about how to work fewer hours * [3:12] Plan your income * [6:34] Social Security considerations * [11:51] To take the COLA or non-COLA option on a pension
Resources & People Mentioned * WSJ article - How to Plan for Part-Time Retirement
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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If you have received an inherited IRA or think you will in the future you won’t want to miss this episode. In the retirement headlines segment, we’ll take a look at the proposed changes in regulations regarding inherited RMDs based on the Secure Act of 2020.
In the listener questions segment, we’ll hear from Jim who has a question about rebalancing retirement income buckets. Make sure to stick around until the end so that you understand the best way to manage your buckets in retirement.
Outline of This Episode * [1:32] The IRS interpretation isn’t what we thought it would be * [7:36] An example to illustrate an inheritance scenario * [10:45] What can we learn from this new rule? * [14:25] Should you have 5 years of income or 25% of your portfolio value in bucket #1? * [17:18] Should you rebalance when stocks and bonds are down? * [18:56] Do Vanguard total bond funds qualify for bucket #1 or #2? * [22:03] Should you maintain a small list of funds in a portfolio?
Resources & People Mentioned * Episode 239 - Part-Time Retirement Programs Are on the Rise * Investment News article by Ed Slott
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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How much thought have you given to your future self? This week’s retirement headline explores the concept of nurturing your future self now so that you can increase your health, happiness, and financial security.
Over in our listener questions segment, I’ll answer a question from an anonymous listener about increasing their spending in retirement. They are looking for advice on whether they can afford to substantially increase their spending this year. Listen in to hear the Retirement Starts Today version of Suze Orman’s “Can I Afford It.”
Outline of This Episode * [1:58] Thinking about your future self can help you build a happier life * [7:52] Who is your future self 10 years after retirement? * [11:00] Should this listener spend the money that he didn’t spend in the past 3 years?
Resources & People Mentioned * How Thinking About 'Future You' Can Build a Happier Life * Dr. Benjamin Hardy’s 30 Day Future Self Course * BOOK - Be Your Future Self Now by Dr. Benjamin Hardy
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If you are heading into retirement you probably have a bucket list that you want to work on. While just about everyone has heard of a bucket list, not many are familiar with the concept of reverse bucket lists.
On this episode of Retirement Starts Today, we’ll explore this concept by referring to an article from Jeff Stein at Inc.com. You’ll learn how a reverse bucket list could help you manage your wants versus your needs.
Stick around for the listener questions segment to hear which assets to look at when doing a Roth conversion. You’ll also hear a question from Paul about the logistics of retirement withdrawals.
Outline of This Episode * [1:42] Using reverse bucket lists to prioritize * [5:20] What assets to use at when looking at Roth conversions * [9:48] The logistics of retirement withdrawals * [12:48] Make sure the money comes out of the right accounts
Resources & People Mentioned * Inc.com article * Podcast - Optimism with Simon Sinek and Arthur Brooks * An online risk tolerance questionnaire
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Do you wish you could have more freedom at work yet still earn a paycheck? Remote work and flexible scheduling may help you ease into retirement rather than plunging in all at once.
In our retirement headline segment today, we’ll explore an article from the Wall Street Journal that discusses a new phenomenon that is a direct result of the Covid-19 pandemic.
Additionally, I’ll answer Frank’s question about using the bucket time segmentation strategy in retirement. Listen in to hear details about what those buckets might look like and how to time withdrawals from each bucket.
Outline of This Episode * [1:32] How should the increase in mortgage interest rates change your retirement plans? * [3:21] Part-time retirement programs are on the rise * [7:40] Obstacles to phased retirements * [8:25] My thoughts on phased retirement * [9:54] How to determine when your long-term retirement savings bucket is up or down
Resources & People Mentioned * WSJ article - Part-Time Retirement Programs Are on the Rise * Episode 238 - I’m Retiring in 3 Weeks! Here’s What to Do…
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Jim is only 3 weeks away from retiring and wants to know my top tips for someone approaching retirement. If you are on the countdown to retirement, make sure to listen to the listener's questions to hear what they are.
In the retirement headlines segment, we’ll explore the benefits of using a bucket withdrawal strategy for investments. You may be surprised to hear what the actual benefit of using the bucket strategy is. Listen in to hear what the bucket strategy can do for your retirement.
Outline of This Episode * [1:22] Do bucket withdrawal strategies work well in retirement? * [6:35] 3 Practical tips for someone retiring in 3-5 weeks
Resources & People Mentioned * WSJ article - Do ‘Bucket’ Investment Strategies Make Sense in Retirement? * BOOK - Miracle Morning by Hal Elrod * Future Self video
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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When people begin retirement planning they usually have 3 main questions. We cover the questions about what to do about healthcare before Medicare and should I pay off my house regularly on this show. However, the third question, what do I do if I still have kids at home, is not one we regularly address. That is why I’m excited to have Bobbi Rebell, author of the new book, Launching Financial Grown Ups on the show today.
Bobbi is here to discuss the growing phenomenon of adult kids living with their parents and how that can impact your retirement plan. You won’t want to miss this episode if your kids are not completely launched. Listen in to hear Bobbi’s fantastic advice for creating an exit strategy to get your children off the payroll.
Outline of This Episode * [1:22] What to do if we have kids at home when facing retirement? * [7:20] What can we do to prepare our kids for an exit strategy? * [10:53] How to deal with our children’s financial mistakes * [19:07] Don’t rob kids of the ability to think things through
Resources & People Mentioned * Lemonade Insurance * BOOK - Think Like a Bread Winner by Jennifer Barrett
Connect with Bobbi Rebell * BobbiRebell.com * BOOK - Launching Financial Grown-Ups by Bobbi Rebell * Check out GrownUpGear.com for some Grown-Up merch * @BobbiRebell on Twitter * @BobbiRebell1 on Instagram
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Have you been hesitant to retire this year because of all that is going on in the world? On this episode of Retirement Starts Today, we’ll explore a retirement headline from Maurie Backman at The Motley Fool called 3 Reasons Why 2022 May Be a Bad Year to Retire, but then you’ll hear my rebuttal to each of her 3 arguments.
If you have been on the fence about whether you should take the plunge and retire now, you won’t want to miss this episode. Make sure to stick around until the end of the episode to hear an anonymous question about how to be certain that you won’t owe interest and penalties on a Roth conversion.
Outline of This Episode * [2:11] Pitfall #1 - The pandemic is still raging * [5:00] Pitfall #2 - Inflation is rampant * [8:15] Pitfall #3 - Stability is important * [12:23] An underpayment penalty question
Resources & People Mentioned * The Motley Fool - 3 Reasons Why 2022 May Be a Bad Year to Retire * Taxes in Retirement Facebook group * Underpayment of Estimated Tax on the IRS website * Estimated Taxes on TurboTax’s website
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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With the news that January’s inflation rate was a staggering 7.5%--the highest level in 40 years–everyone has inflation on their minds lately. Many retirees are reassessing how they can protect their nest eggs.
On this episode of Retirement Starts Today, we’ll explore a WSJ headline, “There’s No Perfect Way to Inflation-Proof Your Investments,” by Anne Tergesen. If you have been wondering how you can best use your investments to hedge against inflation in retirement, don’t miss out on this episode to hear the pros and cons of several different options. Make sure to listen to the end to hear how long you might have to hold on to gold so that it keeps pace with inflation. (Spoiler alert–it’s a lot longer than you think!)
Outline of This Episode * [1:22] Inflation is on the mind of every retiree in 2022 * [3:57] I bonds are the belle of the ball * [6:14] The pros and cons of TIPS * [7:23] The pros and cons of stocks, commodities, and real estate * [10:06] The pros and cons of buying gold * [11:29] How to pay taxes on Roth conversions
Resources & People Mentioned * WSJ article - There’s No Perfect Way to Inflation-Proof Your Investments * Taxes in Retirement Facebook Group
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Many people begin retirement with the question: what’s next? That question can plant the idea of starting a second chapter whether it be a new business, a side hustle, a passion project, or a consulting business. The question then becomes, how to get started?
Gabe Nelson, the host of the Solopreneur Money podcast, is here to discuss how you can start a business in retirement. In this episode, you’ll learn tips on how to get started, how to decide what to charge, how long it should take to become profitable, and so much more.
Outline of This Episode * [1:58] What are some tips for someone that wants to start a business in retirement? * [5:28] How to keep track of expenses * [7:00] At what point does the business have to become profitable? * [11:30] How to move from employee to employer * [14:00] The kinds of clients that Gabe works with * [16:42] Gabe never plans on retiring
Resources & People Mentioned * QuickBooks
Connect with Gabe Nelson * SolopreneurMoney.com * BOOK - The Solopreneur’s Money Manifesto by Gabe Nelson
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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What does a good night’s sleep have to do with retirement planning? Listen to this episode to find out.
Today we’ll explore an article from Andrea Peterson over at the Wall Street Journal titled, To Get a Better Night’s Sleep, First Fix Your Day. After discussing how to apply her advice to retirement, we’ll tackle Bill’s questions. Since he has a few questions I’m trying something new and answering them in a lightning round style. Stick around until the end to discover if this method worked or if it was a flop.
Outline of This Episode * [1:22] Findings from pandemic related sleep problems * [6:45] How journaling can help you sleep better * [11:00] When should Bill take Social Security? * [11:55] Should he take the lump sum or the lifetime annuity?
Resources & People Mentioned * To Get a Better Night’s Sleep, First Fix Your Day by Andrea Peterson * Oura Ring * Whoop Strap * Sound Retirement Radio with Jason Parker
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Tax season is here. This yearly duty is something that a good portion of citizens put off until the last minute, with some even requesting an extension to file later. However, today I have 8 reasons for you to consider filing your taxes early. Listen in to discover why you might want to bite the bullet and file your tax return early this year.
Outline of This Episode * [1:12] 8 reasons to file your 2021 tax return early * [4:18] Why you should try to get as small a refund as possible in retirement * [8:09] Should Marion invest 25% of her portfolio in a fixed annuity over 10 years?
This is a great list to encourage people to get started on their taxes. I’ve had my thoughts on tax planning for a while now that I’m cohosting the Retirement Tax Podcast with Steven Jarvis. Check it out if you are interested in tax planning strategies in retirement.
Resources & People Mentioned * The Retirement Tax podcast with Steven Jarvis and Benjamin Brandt * Retirement Tax Services from Steven Jarvis * 8 reasons to file your 2021 tax return early by Kay Bell
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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You may be worried about money in retirement, but are you worried that you won’t spend enough of it? Today’s retirement headline comes from Neil Templin over at Barrons.com and it examines how people’s core spending and saving habits from their working years continue in their retirement years.
Listen to this episode to hear the author’s suggestion for how to rectify this issue and whether or not I agree with him.
Outline of This Episode * [1:22] Retirees aren’t spending enough * [5:30] Create a retirement paycheck * [7:20] My thoughts on the article * [10:00] join the newsletter * [11:07] How to invest for retirement with limited assets
Retirees aren’t spending enough Why do people continue to save in retirement when they are expected to be spending? Retirees Aren’t Spending Enough of Their Nest Eggs, Here’s Why, an article written by Neil Templin, examines the reasons why some people don’t plan to spend down their assets in retirement. These retirees' portfolios remain the same or sometimes even grow at a time of life when they should be diminishing. The author looks into why this phenomenon is happening.
Reasons for reluctant spending in retirement One study even revealed that ¾ of participants had seen their assets remain the same or grow in retirement. There are numerous reasons why this could happen.
The robust stock market over the past ten years could contribute to a steady or growing portfolio. However, even with strong returns, some people may not feel comfortable enough to loosen their purse strings and spend their savings in retirement. Templin lists these reasons for reluctant spending habits in retirement:
- Fear of running out of money paired with uncertain longevity
- Worry about future medical expenses
- Concern over rising long term care costs
- Learning from a parent’s retirement experience
- Spending habits from working years continue through retirement
- Not wanting to be a burden on their children
It is difficult to change the core values that people have about spending. Saving is a habit developed over time and retirees are discovering that they can’t simply flick a switch and turn it off.
A solution to reluctant retirement spending The author next examines research on retirees with pensions. The research showed that those who received more than half of their income in regular payments spent much more in retirement than those who received less than half of their income regularly.
The article concludes that creating a pension-style income or regular paycheck by using annuities could be a solution for retirees who are reluctant to spend in retirement.
An alternative to purchasing annuities in retirement My concern with purchasing annuities to solve this problem is that this solution eliminates the freedom to choose. With a flexible spending strategy, retirees can spend confidently. They understand that when the market doesn’t behave ideally that there is always a plan b to fall back on. This flexible spending strategy relies on education and knowledge to give retirees the peace of mind they need to spend confidently. Listen in to hear how Guyton’s Guardrails could inspire confidence in your retirement spending strategy.
Resources & People Mentioned * Retirees Aren’t Spending Enough of Their Nest Eggs, Here’s Why * Join the Every Day Is Saturday newsletter!
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Do you know where you’ll live when you retire? Deciding where to live in retirement is one of the biggest retirement decisions that you’ll make. There are so many factors to consider that it can be overwhelming with the myriad choices.
On this episode of Retirement Starts Today, we’ll explore a headline from J.D. Roth at GetRichSlowly.org that reveals a new tool from The New York Times which helps people find places to live that suit their lifestyles.
You’ll also hear the answer to Frank’s question about the inflexibility of safe withdrawal rules for those who choose to delay taking Social Security.
If you have been considering moving in retirement, don’t miss out on this episode to discover how this fun tool could help you narrow down your choices.
Outline of This Episode * [1:22] A useful tool to help you choose a place to live * [4:03] My thoughts on purchasing a second home in retirement * [7:01] On taking larger withdrawals in your 60s to delay taking Social Security * [11:14] How I use Guyton’s Guardrails to set up safe withdrawal rates
This useful tool can help you choose a place to live in retirement Today’s retirement headline, A Useful New Tool to Help You Pick a Place to Live, comes from J.D. Roth’s blog GetRichSlowly.org. In the article, the author explores a new interactive tool from The New York Times that could help you decide where to live based on your lifestyle choices.
The interactive quiz uses 35 different factors which can help you narrow down the 17,000 cities and towns across the country they have to choose from. These factors include choices like population density, climate, racial diversity, political affiliation, the average cost of living, and many more. Users can even emphasize which qualities matter most to them.
After exploring a few options, users can compare their favorite choices in an easy-to-read table. Although the tool, isn’t the end all be all in deciding where to live, it may be able to accurately narrow down some areas for you to consider.
Since the tool comes from the New York Times, it is behind a paywall you may be blocked if you have already read your free articles for the month. If you haven’t, spend some time exploring the variables to see which places look good to you.
You may not qualify for a mortgage Many retirees choose to buy a second home in retirement, and I work with several clients that have considered this option. When purchasing a home in retirement, it is important to remember a few rules.
Oftentimes, people don’t realize that after leaving their career behind it can be very challenging to get a mortgage. Since qualifying for a mortgage depends on income rather than assets, many recent retirees discover that they may not qualify for a mortgage even when they have the assets to purchase the home outright.
One way to prevent this issue is by massaging your portfolio income to a level that the bank would approve to secure the loan. After closing on the mortgage, then you can reset your portfolio withdrawals back to normal.
Don’t be afraid to rent If you are considering purchasing a second home or moving to a new area in retirement, don’t be afraid to rent first. By renting for several months in the city you would like to move to, you’ll be able to explore the town and understand where the desirable (and undesirable) areas are. Renting first could save you from a mistake that could cost hundreds of thousands of dollars.
Learn more about moving in retirement and how using Guyton’s Guardrails could help you set up flexible, safe withdrawal rates in retirement on this episode of Retirement Starts Today.
Resources & People Mentioned * New York Times interactive tool * GetRichSlowly.org * Guyton’s Guardrails
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Is saving for the future preventing you from enjoying your present life? This may be an unpopular opinion for a financial podcast, but it is important to ask difficult questions to experience growth. If over-saving is preventing you from enjoying your present life, then you need to make changes. On this episode of Retirement Starts Today, we’ll examine an article by Darius Foroux that asks, Are You Saving Too Much Money? After the retirement headlines segment, I’ll answer a question from CJ about using a donor-advised fund to offset the last year of high income before retirement. Get ready to ask challenge yourself and explore your financial decisions as you press play.
Outline of This Episode * [1:42] Saving too much money for your future could prevent you from enjoying your present life * [4:32] How to know when you’re saving too much? * [6:53] Does it make sense to create a donor-advised fund to get a tax deduction? * [10:22] What other deductions could you take advantage of?
Saving too much for the future could prevent you from enjoying the present Today is the most important day that you have to live. If you are saving too much money you may not be able to enjoy today to its fullest. There are people that save up to 70% of their income while planning an early retirement, but this type of habitual frugality can get in the way of enjoying life in the present. Although saving a high percentage of your salary could give you confidence about your future, it can be difficult to unwind that practiced frugality to truly enjoy life.
How to know if you are saving too much If you’re constantly asking yourself on a daily basis how much things cost, you might be saving too much. Try not to calculate your spending down to the penny. Instead, be more conscious of how you spend your money. The is a balance between spending your entire paycheck and over saving is fluid and complex, so it is important to analyze your situation to understand the best saving situation for you.
There are several factors to consider when analyzing your savings patterns:
- How old are you?
- What do you value in life?
- What type of lifestyle do you want?
- Do you have a career you enjoy?
- Where do you live?
- What are the odds you can do your work until you’re old?
- Do you have a support system?
Understanding the answers to these questions can help you recognize whether you are saving too much.
How to balance saving for the future while maximizing today So, how do we balance living in the present and making the most of our lives today while, at the same time, being responsible stewards for our future selves? A good place to start is by coming up with a financial strategy that incorporates your values. Once you do that, you can use the free tools available on the internet to help you determine how much you need to save.
Self-reflection is important to understand whether you are truly living your best life now or if you are waiting for some arbitrary future date to pursue happiness. Are you living your best life now? If not, what are you waiting for?
Resources & People Mentioned * Boomer Benefits * Are You Saving Too Much Money by Darius Foroux * BOOK - Your Money or Your Life by Vicki Robin * Fidelity Charitable
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Deciding whether to delay filing for Social Security is a hefty decision. Waiting to collect Social Security until age 70 will increase your monthly benefit by 32%, but that doesn’t mean much if you don’t live long enough to reap the rewards of being patient.
In today’s retirement headlines segment, I’ll share an article written by Jeffrey Levine from Kitces.com that discusses a workaround to the seemingly all-or-nothing decision of whether to collect Social Security benefits at full retirement age or to delay filing until age 70. If this decision has been weighing heavily on your mind, you won’t want to miss this episode.
Outline of This Episode * [1:22] If you are a do it yourself investor you are your own financial advisor * [5:30] Retroactive payments are granted as a lump sum payment * [7:03] Use the nudge strategy * [9:00] Drawbacks to the 6-month nudge strategy * [12:48] Using QLACs and MYGAs to enhance a bucket strategy
DIY investors need plenty of tools in their retirement planning toolbox Jeffrey Levine, the author of Getting Comfortable Delaying Social Security with Six Month Reversible Delays, has a way of explaining complex financial concepts by breaking them into understandable bites. You can follow him on Twitter @CPAPlanner if you are looking for another go-to financial resource.
Although today’s retirement headline was written for financial advisors, it contains valuable information for the do-it-yourself investor. As a DIY investor, you need to recognize that you are your own financial advisor. Kitces.com offers a wealth of information and is one of my favorite retirement planning resources.
Nudging your Social Security claiming decision can lessen the worry of making the wrong choice The biggest question that you probably have about Social Security is how big will your benefit be? The answer hinges on two factors: your earnings history and when you choose to take your benefit.
By the time you get ready to retire, there isn’t anything you can do about your past earnings history, but you can control when you decide to collect your benefit. The longer you wait to collect, the larger your monthly check will be. Each year that you choose to wait your payment will increase by 8%.
With lifespans continually increasing it can make a lot of sense to delay filing for Social Security. However, not everyone will live long enough to reap the rewards of delaying their monthly benefit.
Many people see the decision to delay taking Social Security until age 70 as an all-or-nothing endeavor, but that is not the case. In fact, as Jeffrey Levine explains, this decision can actually be broken up into a series of 8 smaller decisions.
By using the strategy of nudging the decision forward every 6 months, you can break this seemingly all or nothing choice into 8 separate, independent, reversible decisions which will lessen the fear of an all or nothing approach.
Challenges to using the every 6-month nudging approach As with every financial strategy, there are drawbacks to using the nudge approach every 6 months. The most obvious is that if you happen to die during your wait, you won’t be able to collect the benefits. The author makes an important side note for married couples to consider this drawback. Listen in to hear what it is.
Another downfall is that retroactive applications can reduce your lifelong benefits. Something else to consider is that if you file retroactively, you will receive retroactive benefits in a lump sum which could lead to a spike in your marginal tax rate for the year.
Breaking down the decision of when to claim your retirement benefits into many smaller, less drastic decisions can give peace of mind to the decision-maker especially when they understand that the decision is reversible.
Resources & People Mentioned * Getting Comfortable Delaying Social Security with Six Month Reversible Delays * Kitces.com * Jeff Levine on Twitter @CPAPlanner
Connect with our Sponsor * Boomer Benefits * Boomer Benefits Facebook Page * Boomer Benefits YouTube Channel
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Tax scams are as old as taxes themselves, so are you doing everything you can do to avoid them? In this episode of Retirement Starts Today, we’ll explore what the IRS labels, ‘the dirty dozen’ tax scams. You’ll learn who is targeted by the various scams and then you’ll discover what you should do to protect yourself from scammers. Make sure to stick around until the end of this episode to hear what you should avoid doing so that you don’t fall prey to tax scammers.
Outline of This Episode * [1:24] The IRS has issued a warning to taxpayers * [6:10] Protection for taxpayers * [9:00] Dave wonders whether he should build his home with cash or use a mortgage
Watch out for the ‘dirty dozen’ Every year the IRS publishes its list of the 'dirty dozen’ tax scams that citizens should be on the lookout for. This year’s list comes directly from the IRS website in an article called Americans Urged to Watch Out for Tax Scams During the Pandemic. The article breaks up the 12 types of schemes into 4 categories based on who carries them out or whom they affect.
The scams can be described as pandemic-related scams, personal information cons, ruses that focus on unsuspecting victims like seniors and immigrants, and schemes that persuade taxpayers into performing unscrupulous actions. The IRS urges everyone to stay aware of scams and scammers, especially during tax season.
Economic impact payment theft This first category of the dirty dozen is related to the pandemic-related stimulus payments from the government which are still under threat from identity thieves.
Look for these warning signs to spot identity theft scams. Any text messages, random incoming phone calls, or emails inquiring about bank account information or requesting recipients to click a link should be considered suspicious and deleted without opening. Remember that the IRS will never initiate contact with taxpayers by phone, email, text, or social media asking for a Social Security number or other personal or financial information related to economic impact payments.
Be alert to mailbox theft by checking your mail frequently and reporting suspected mail losses to the post office. It is also important to remember that IRS.gov is the agency’s official website for payments, refunds, or other tax information.
Unemployment fraud leading to inaccurate taxpayer 1099-Gs Stay vigilant about receiving receipts of unemployment benefits that you did not actually receive since this could be a sign of identity theft. This is yet another way that identity thieves try to steal stimulus payments. Taxpayers should look out for a form called 1099-G which reports unemployment compensation that they did not receive.
If you do receive this form, the IRS urges you to contact the appropriate state agency for a corrected form. If a corrected form cannot be obtained in time for taxpayers to file a timely tax return, they should complete their return claiming only the unemployment compensation and other income they actually received.
How you can protect yourself This year the IRS made its IP PIN program available to all taxpayers. In the past, this program was only available to victims of identity theft. The IP PIN will help prevent fraudulent filings from identity thieves by serving as a key to unlock a taxpayer’s tax account. In addition to the IP PIN, the IRS is further working to reduce fraud by strengthening tax software password protocols, asking for driver's license numbers as a way to prove identity, limiting the number of tax refunds going to bank accounts, and making personal information from tax transcripts.
It is important to stay one step ahead of scammers so that you can protect yourself from fraud. Remember that the IRS will never ask you for your personal information via phone, text, or email.
Resources & People Mentioned * Americans Urged to Watch Out for Tax Scams During the Pandemic
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Do you have gold as a part of your investment portfolio? Several years ago there were loads of infomercials about investing in gold, but after today’s retirement headline you may want to think twice about complicated investment strategies.
Don’t miss out on this real-world cautionary tale which provides an example of how and why owners of IRAs with assets invested in nontraditional means need to follow strict guidelines. Press play to listen.
Outline of This Episode * [2:32] Don’t make this $300,000 tax mistake * [5:25] You don’t have to invest your IRAs in stocks and bonds * [12:40] You don’t need complexity to have great retirement investments * [13:50] When the first RMD is taken from an IRA is the money considered earned income? * [16:08] Does the custodian of an IRA pay taxes directly before distribution of the money?
Are you signed up for the Every Day Is Saturday newsletter? If you have been wondering how you can submit your own listener question, make sure to head on over to my website RetirementStartsTodayRadio.com and simply click the ask a question button.
Another way to submit a question is by responding to my weekly Every Day Is Saturday newsletter which is delivered every Thursday morning. By joining the newsletter not only will you be reminded that in retirement every day is Saturday (even Thursday mornings), you’ll also get links to articles and resources that were mentioned on the show.
Why one couple owes the IRS $300,000 for storing gold in their home How’s this for a headline? A Couple Stored a Gold IRA at Home. They Owe the IRS More Than $300,000. Today’s retirement headline was written by Laura Sanders at WSJ. The article discusses a scheme that was promoted years back when ads extolled the benefits of using IRA assets to buy silver and gold coins to store at home or in a safe deposit box. However, the IRS has made it clear that there are strict rules that must be adhered to regarding IRA investments, and the couple failed to follow those rules.
You don’t have to invest your IRAs in stocks and bonds Many people don’t realize that retirement investment accounts don’t have to invest the assets in typical securities like stocks, mutual funds, and ETFs. The law actually gives retirement plan investors many options on how they invest funds, as long as it’s not in collectibles such as artwork. Retirement accounts can hold investments in real estate, litigation funding, deeds of trust, and even cryptocurrency. One thing to watch out for with these kinds of alternatives is if your investment asset isn't liquid you could be in for some trouble around the time of your 72nd birthday when RMDs start.
Make sure to follow the rules The article emphasizes that savers who have decided to invest in alternative assets must follow strict rules so that they are not considered self-dealing. Investors who do not follow the rules closely are risking financial catastrophe. Listen in and click through to the article to hear the details of the case so that you can understand how to avoid this type of costly situation.
Resources & People Mentioned * A Couple Stored a Gold IRA at Home. They Owe the IRS More Than $300,000
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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You may have noticed how the spirit of giving changed your mood this holiday season. That is because giving can actually increase your happiness. This week’s retirement headline from BigThink.com is titled How Generosity Changes Your Brain, and it discusses recent research on how giving to others promotes happiness. On this episode of Retirement Starts Today, you’ll learn how acting on your generosity creates numerous psychological and physiological benefits in your body.
If one of your goals for 2022 is to be more generous or even if you simply want to reflect on the acts of gift-giving that you experienced over the holiday season, don’t miss the retirement headline segment. Then make sure to stick around until the end of the episode to hear my favorite retirement resources.
Outline of This Episode * [2:42] How generosity changes your brain * [8:02] How you can incorporate giving into your retirement plan * [9:47] Dave is looking for quality retirement resources
Giving can increase happiness Can spending your money maximize your happiness? We’ve all been told that money can’t buy happiness. However, new research suggests that the opposite is actually true: spending money can bring joy.
Rather than buying things to increase happiness, researchers have found that sharing wealth with others is what creates long-lasting contentment. New research has been able to scientifically measure the ways that giving can improve joy. Giving actually releases neurochemicals like oxytocin and endorphins in your brain that are known to increase happiness. Have you noticed this phenomenon whenever you give to others?
Volunteering is sharing the gift of your time In addition to giving money and gifts to others, giving the gift of time increases happiness as well. During the working years, donating time can be a challenge with all the other commitments that people have. This issue disappears in retirement.
Volunteering can even improve health. Science shows that generosity can increase longevity. Researchers found that retirees who volunteer were less likely to die over the course of a 5-year study. The results of the study showed that volunteering boosted people’s overall well-being. Regular volunteering is even more beneficial to health than giving financially. Do you have plans to make volunteering a regular part of your retirement?
How to maximize your happiness through regular giving Making a habit of generosity is a great way to improve your happiness and health in retirement. Whether you choose to give financially or donate your time, the results will benefit you.
Now that you know that giving can increase your joy, you can find ways to maximize that happiness. One way to ensure that you are optimizing your giving is by giving consciously rather than setting up an automated gift to charity each month.
If you do automate your giving, looking at your bank statements each month to see how much you spend on yourself and comparing that with your spending on others can also increase your contentment.
Have you thought of giving your time or money in retirement? Volunteering or donating money in retirement can also give you a renewed purpose. Think about ways that you could increase giving in ways that align with your values. Listen in to hear my favorite volunteer opportunity.
Resources & People Mentioned * Boomer Benefits * How Generosity Changes Your Brain from BigThink * BOOK - Control Your Retirement Destiny by Dana Anspach * PODCAST - Control Your Retirement Destiny * Devin Carroll’s YouTube Channel * Taxes in Retirement Facebook Group with Andy Panko * The Boomer Benefits Facebook community * PODCAST - Retirement Answer Man with Roger Whitney * PODCAST - The Retirement Tax Podcast with Steven Jarvis and Me
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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You may have noticed how the spirit of giving changed your mood this holiday season. That is because giving can actually increase your happiness. This week’s retirement headline from BigThink.com is titled How Generosity Changes Your Brain, and it discusses recent research on how giving to others promotes happiness. On this episode of Retirement Starts Today, […]
The post My Favorite Retirement Resources for 2022 & How Generosity Changes Your Brain, Ep # 225 appeared first on Retirement Starts Today Radio.
Would you want to raise your standard of living for half of what you live on now? Tim Leffel did, which is why he chose to uproot his family from their life in Nashville to move to a small city in Mexico. Tim is the author of the book A Better Life for Half the Price and he joins me today to discuss the pros and cons of living abroad.
Don’t miss the opportunity to learn how you can save money by living abroad. Tim is an expert in the subject and has written extensively about this topic. Listen in to hear this interview.
Outline of This Episode * What made Tim decide to live in Mexico? * Why did he rent before buying? * What are examples of how he saves money by living in Mexico? * Do you need to know Spanish before moving to Mexico? * Why would people not want to move abroad?
Why did Tim choose to move to Mexico? Tim and his wife have traveled extensively and even lived in Seoul, Korea, and Istanbul, Turkey when they were young. When they had their daughter they knew that they didn’t want to live in the far flung reaches of the world but they still wanted the experience of living abroad.
Mexico was close by and easy to travel to, plus they liked the culture and the food which made it an easy choice to settle on. They chose to live in the central Mexican town of Guanajuato which is a mid-sized city of 200,000 with pleasant weather all year round.
It makes sense to rent first before purchasing abroad Tim chose to rent for a year first before taking the plunge and purchasing a home. He remarks that buying a house abroad is not like it seems on those popular house hunting TV shows.
There is a lot you need to think about when buying a home abroad. The zoning laws aren’t the same as in the U.S. and it can be hard for a foreigner to understand what things are worth without living there first. Tim recommends putting in the time and effort to truly understand the market value before purchasing a home.
What are examples of how he saves money by living in Mexico? It’s no secret that living in Mexico is less expensive than living in the U.S. Rent in the United States can easily cost $2000. In Mexico, you can find a house to rent for a fraction of that.
Healthcare expenses are notoriously high in the U.S. and in Mexico, Americans are shocked to find how easy it is to pay for those expenses out of pocket.
Tim finds that his total monthly expenses in Mexico are roughly equivalent to what he paid in rent in the U.S. Not everything is cheaper in Mexico though, listen in to hear about what costs more in Mexico.
Do you need to know the language first? You would think that you need to be fluent in the language before moving abroad, but there are some places in Mexico where you can get by being monolingual.
Tim still doesn’t consider himself fluent, although he is learning the language. Since his daughter went to school in Mexico, she had the opportunity to become fluent. Would you want to learn the language before moving abroad?
Connect with Tim Leffel * CheapLivingAbroad.com * CheapestDestinationsBlog.com * TimLeffel.com * BOOK -A Better Life for Half the Price by Tim Leffel
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Despite the economic downturn, 2020 turned out to be a fantastic year for charitable giving. In this episode, we’ll look at how people chose to give and you’ll learn about the efficiency of giving through donor-advised funds (DAFs).
In the listener questions segment, you’ll learn how to survive a bear market in retirement. We’ll investigate the length of the average bear market and see how you can prepare for the worst in your retirement years.
Outline of This Episode * 2020 was a banner year for giving * Planning ahead can help alleviate a hefty tax bill * What is the average length of recovery from a bear market? * Look into Guyten’s Guardrails
Shwab and Fidelity both showed an increase in giving You would think that with the economic downturn of the last year that people would tighten their bootstraps and cease giving to charities, but it turned out that the opposite was true. The two largest brokerage firms, Schwab and Fidelity, recorded increases in charitable donations.
Donations were made in response to the Covid pandemic and the social justice protests that marked the year. The biggest recipients of these charitable gifts were organizations that provide food and other necessities
Donor-advised funds are an important vehicle for charitable giving Fidelity Charitable and Schwab Charitable both use donor-advised funds as a vehicle for charitable giving. Donor-advised funds (DAFs) have become popular since they are simple and make for an easy way to give strategically. These charitable investment accounts allow a donor to make a charitable contribution, receive a tax deduction, and then distribute the money over time. Have you thought of changing the way that you make charitable contributions?
What are the benefits of using DAFs? DAFs have become more popular in recent years due to changes in tax laws. The new standard deduction for charitable giving increased to $24,800 for a married couple. By creating a DAF, donors can contribute a lump sum every few years and then administer the funds to the charities they choose over time. Many advisors recommend donor-advised funds as a receptacle for their clients to strategically deduct charitable contributions. Listen in to hear a real-world example of how a DAF can be used.
Planning ahead can create a tax deduction We must all pay our taxes, but we never want to overpay -- no one wants to leave the taxman a tip. If you are charitably minded, a donor-advised fund is an excellent way to implement a multi-year tax strategy and take advantage of the standard deduction. Think about how lump sum giving every few years could change your tax situation. It pays to plan your taxes ahead in retirement.
Resources & People Mentioned * Investment News article on charitable giving * Guyton’s Rules for Withdrawal Rates * Guyton’s Guardrails are discussed in - Episode 181, Episode 153, Episode 149, Episode 93
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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We’ve all been sitting at home for the past year and now everyone is getting the travel bug. That’s why today we’re kicking off the Summer Travel Series with an interview with Lee Huffman. Lee hosts a podcast called We Travel There and he writes a frugal travel blog at BaldThoughts.com. I’ve been curious about the world of travel hacking, so I have plenty of questions for Lee about using travel points, how to find the best travel resources, and, of course, where to travel. Check out this interview to help you plan your summer vacation.
Outline of This Episode * Where should we get started? * What should one look for in travel points? * How saving miles and points are like saving for retirement * The go-to resources to use * Places to check out
How should we all get started traveling again? The pandemic has left many of us homebound for over a year, so now that many people are fully vaccinated, everyone is ready to get on the road again. The big question is: how should we get started?
Lee recommends using the travel credits that you may have accrued from canceled vacations over the pandemic. Those credits and vouchers may have expiration dates, so be sure to check the fine print to ensure that you don’t lose out.
He also suggests getting your summer trips booked ASAP. The sooner you book, the sooner you’ll be able to find reward availability and lower prices. The more people begin traveling the higher the prices will rise.
What about international travel? Travel within the U.S. is on the rise, but people are also itching to travel internationally. Since the vaccine rollout has been different in each country, it is important to carefully investigate the specific travel rules for the country you wish to go to. Each country has its own pandemic rules and regulations. Some countries require negative Covid tests upon arrival and others may require you to be fully vaccinated. It is also important to remember that if you travel internationally, you will need a negative Covid test to enter the U.S. again, regardless of your vaccination status. Listen in to hear how many hotels in Mexico are helping travelers with this requirement.
What are the best ways to earn points? You can earn travel points and rewards even when you are not traveling by using a credit card. Lee recommends the Capital One Venture Rewards card to get started. You can get cash back or earn extra miles with each purchase that you make. Listen in to hear how you can get started with the Capital One Venture rewards program to start traveling this summer.
Lee compares saving miles and points with saving for retirement. He states that the two best days to start saving your miles are 10 years ago and today. He also mentions the importance of using your miles periodically. You don’t want them to become devalued over the years.
How to use your travel miles There are more ways you can earn travel miles than just making purchases. There are apps that you can use like Dosh to help you earn extra miles on each transaction.
If you have had a travel rewards card for years but find it difficult to use, you won’t want to miss this interview with Lee Huffman as he explains how you can best use your hard-earned miles. He not only mentions how to use your miles, but he also includes fantastic resources that you can check out to help you find availability so that you can actually use the points that you have accrued.
Make sure to check out Lee’s podcast, We Travel There, to get inspiration for your next travel destination. He interviews locals to help his listeners understand how to get there, where to go, what to do, how to get around, and where to stay.
Resources & People Mentioned * Dosh rewards app * Juicy Miles - app for redeeming rewards. * Capital One Venture Rewards card * Frugal Travel Facebook Group with Holly Johnson
Connect with Lee Huffman * BaldThoughts.com * WeTravelThere.com
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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What is the number one travel goal for people approaching retirement? Disney! People young and old alike love to go to Disney. In my 15 years of retirement planning, I have discovered that a multi-generational trip to Disney is at the top of most people’s bucket lists. That is why I have brought the world’s foremost expert on Disney travel, Lou Mongello, on to Retirement Starts Today for an interview. Lou and I discuss all things Disney: the must-see attractions, when to go, how to plan, and what is so special about Disney.
Outline of This Episode * [1:52] What’s so special about Disney? * [4:29] What are the must-see attractions? * [8:45] When to go * [12:53] Plan in advance * [15:56] Lou’s favorite thing at Disney
What’s so special about Disney that everyone wants to go there? Since Disney is the number one bucket list item for many people there must be something extra special about it. When I ask Lou why it is so special, he is unable to quantify this phenomenon. He chalks it up to the way Disney makes us feel. If you have been, you know what he means.
One way that Disney is able to give us those warm fuzzy feelings is with its customer service. Disney’s level of service is unparalleled. They always go beyond expectations which is why everyone remembers Disney with such fondness. No other place in the world enjoys such a level of brand loyalty.
What are the must-see attractions? There is so much to do at Disney. In Orlando, there are not only the 4 main theme parks but there are water parks and resorts to enjoy as well. It can be challenging to figure out what to do when there is so much to choose from.
There is something for everyone at Disney. Lou recommends the classics from Magic Kingdom in addition to some of the newer attractions. Grandma and the littles are sure to enjoy It’s a Small World and the Jungle Cruise. The Haunted Mansion is another Magic Kingdom classic. At Hollywood Studios, the Tower of Terror and Rock n Roller Coaster are fun for the thrill-seekers in the family. And Frozen and Toy Story are hits with the kids. The Animal Kingdom safari also brings joy to the entire family.
When to go? When planning your Disney vacation it is you’ll need to consider when to go. This will depend on your family’s schedule, but there is more to consider. Disney has different travel seasons. The peak season includes major holidays and summer. The off-peak times are the rest of the year. During the off-peak times, you can find values on food and lodging prices.
One tip to use while planning your Disney vacation is to use a Disney travel agency. Many don’t realize that Disney agents are free to the consumer since they get paid by Disney. When planning your Disney vacation make sure to take advantage of these experts. They can help you make the most of your holiday.
What is the best age to go to Disney? There is no bad age to go to Disney. There is so much to do that appeals to every age group. That is what makes Disney such a great multigenerational vacation getaway. Not only is there something for everyone, but there is a wide variety of accommodations and food choices. You can customize your vacation to your family’s specific wishes. The most important thing to do is plan ahead. Much like financial planning, planning before you go to Disney will ensure that you get the most out of your family holiday.
Resources & People Mentioned * Stacking Benjamins
Connect with Lou Mongello * Lou Mongello on Facebook * Lou’s podcast - WDW Radio * LouMongello.com
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Since travel is on many soon-to-be retirees' must-do lists I have created this summer travel series with various travel experts. Danielle Desir from the Thought Card podcast joins me today to discuss how to travel to any destination on a budget. Recognized by Flight Network as one of the best travel hackers in the world, Danielle has figured out how to travel to bucket-list destinations on a dime. Are you ready to learn how to plan your next big trip on any budget? Listen in to discover how.
Outline of This Episode * Danielle’s journey to bucket list budget travel * Identify the things that you value * Take an individual approach * Danielle’s top destinations * How to choose to repeat a destination * Jet lag tips * Where to learn more about travel hacking with Danielle
If you’re on a budget, don’t settle for inexpensive destinations, think big! Many people think that if they are on a budget they can only travel to budget-friendly places, but Danielle Desir takes a different approach. As a travel hacker, Danielle has learned how to make travel to bucket-list destinations more affordable. She describes using an abundance mentality as a way to make affordable travel work. She recommends getting creative when planning, “take what you have and make it work.”
Identify what matters to you The first step in becoming a financially savvy traveler is to identify what you value in travel. Is it important to you to be comfortable on a flight? Do you like to eat out and try the best local cuisine? Do you want to see everything you can in one location? Do you prefer luxury accommodations?
Once you have identified what the most important aspects of travel are to you then you will understand where you can be flexible in your spending. If eating out isn’t important to you then you can save money by packing a sack lunch each day. If a fancy hotel room isn’t important then you could save money by staying in a hostel or an inexpensive Airbnb or motel.
Understanding what you value in travel will help you save money and ensure that you have an amazing time on your trip.
Make a game of saving money Another way to save money is to gamify your planning experience. By making a game of saving money you can compete with yourself to see how much money you can save each time you travel. You can cut costs in a variety of ways by looking for inexpensive accommodation, saving on flights, or by using travel points. Gamifying your travel costs allows you to get creative and save more.
Communication is key when it comes to couples’ travel When traveling with your significant other it is important to take into account what they value as well. Make sure to communicate with them so that you are both on the same page. They may value different things about travel so it is important not to skimp in the areas that matter to them.
You should also be understanding of your partner's travel experience. There may be one partner that is more travel savvy than the other. That means that the travel-savvy partner needs to be patient and explain the importance of the things that you do to save money when traveling.
It is also important to remember that traveling in retirement will be much different than traveling for work. You are out there to have fun. Listen to this episode with travel expert Danielle Desir to hear how you can travel to any destination affordably.
Resources & People Mentioned * Boomer Benefits
Connect with Danielle Desir * Thought Card Podcast * How To Save Money In Iceland * How Much Does A Four Day Trip To Iceland Cost * Iceland: Nature, Nurture and Adventure
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Now is a great time to start financial and tax planning for the next year. To do so, you must first look at any changes that were made to tax laws. We’ll do that by exploring 2 articles from Forbes and CNBC which take a closer look at any imminent changes to the tax code.
Then we’ll dive into the main segment with an article from Investment News which claims that fewer retirees are claiming Social Security at age 62. Listen in to hear if there will be any tax and retirement planning changes that affect you and to hear why fewer people are claiming Social Security early.
Outline of This Episode * [1:42] Changes in tax planning for 2022 * [5:12] Changes in retirement savings plans for 2022 * [8:08] Fewer retirees are claiming Social Security at 62
Tax updates from Forbes Despite all the news media clamoring that there might be significant tax changes in 2022, there haven’t been many changes. According to an article from Forbes, marginal tax rates will rise slightly. The standard deduction will rise to $12,950 for individuals and $25,900 for married couples filing jointly. Capital gains rates remain unchanged for the next year, however, the brackets moved slightly to keep pace with inflation. Unfortunately, the charitable deduction that was available to nonitemizers in 2021 did not carry over to 2022. The SALT tax cap could possibly increase from $10,000 to a significantly higher number, but as of this recording, it is not yet official.
Retirement plan changes in 2022 Do you max out your 401K? I’m always shocked when I realize how few people actually maximize their savings. Only 8.5% of workers save the maximum allotted amount.
Even though the vast majority of people do not max out their 401Ks, savers will have the opportunity to save even more next year. The employee contribution limit for tax-deferred retirement savings plans will increase to $20,500 which is up $1,000 from 2021. On the other hand, Roth IRA limits will remain unchanged at $6,000.
So despite the dramatic headlines in the financial media earlier this year, very little has changed for tax and retirement planning from 2021 to 2022. We’ll keep you posted if anything new arises.
Fewer retirees are claiming Social Security at age 62 If you are curious about the effects of the baby boom consider this: the number of men who turned 62 has more than doubled between the years of 1997 and 2019. This shocking number makes it easy to be fooled by the number of people who claim Social Security early since the number of people who claim Social Security has risen, but when you look at the percentage of people who claim early the statistics have declined greatly. According to a study at Boston College by the Center for Retirement Research (CRR), the percentage of 62-year-olds who claim Social Security early at age 62 has decreased in the past 20 years.
How has the Covid pandemic affected Social Security claiming age behavior? Although we won’t have hard data for another year, it looks like some older workers who lost their jobs may have turned to Social Security to help make ends meet. Early evidence shows that the effects of Covid have not pushed large numbers of people into early retirement. This could be because those most affected cannot afford to stop working.
I’m encouraged that folks are waiting to collect Social Security and in doing so growing the guaranteed income portion of their retirement income. Hopefully, this is due to retirees actively making the decision to defer, rather than deferring because they are having to work longer. Whether it is planned or unplanned, deferring will result in a larger benefit for those retirees.
This is our last original episode of 2021 so that I can spend more time over the holidays with my family. We’ll close out the year with a list of my favorite episodes from 2021. Enjoy the holiday season, and we’ll meet again in 2022!
Resources & People Mentioned * Forbes tax article * CNBC tax article * Investment News article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Have you ever filled out a questionnaire at your financial advisor’s office? If you have, it was probably a risk tolerance questionnaire. I have my own opinions about them, but you’ll have to wait until the end of this episode to hear what it is.
On this episode of Retirement Starts Today, we’ll explore an article from AdvisorPerspectives.com written by Dr. Wade Pfau and Alex Murguia which argues that risk tolerance questionnaires (RTQs) don’t work. You’ll hear new retirement slang and acronyms as well as a discussion of retirement income sourcing.
Dr. Pfau has also developed his own tool to use that can help you select the best deaccumulation approach. Don’t forget to stick around until the end to hear my thoughts.
Outline of This Episode * [2:22] How risk tolerance questionnaires are used * [5:45] The different approaches * [10:35] Two different styles * [12:58] My personal criticisms of risk tolerance questionnaires
What are risk tolerance questionnaires used for? RTQs are a tool that help financial advisors identify the amount of volatility that clients can handle in their investment portfolios. These tools generally consist of 9 questions and they are designed to establish a baseline so that the advisor can rank the investor on a scale of 1-5 from conservative to aggressive. These documents are especially helpful for advisors to stay compliant as they choose portfolio recommendations.
Why retirement investing is different RTQs work best in the accumulation stage of people’s lives, but when it comes to retirement they fall flat. In retirement, a person must shift their way of thinking from accumulation to decumulation and this can be a challenging adjustment in mindset. Viewpoints on funding daily expenses inevitably change when one is completely dependent on living off one’s investment capital without the luxury of human capital to cushion the blows of a bear market.
Retirement brings added risks In addition to a change in mindset, there are unavoidable spending shocks that arise in retirement. This means that retirees need to consider how much of their assets they need to keep on hand for these unexpected events and market downturns.
Not only are there the everyday expenses that come along, but retirement brings on further risks. There is constantly the risk of outliving your money and becoming a burden to others since no one knows their own longevity. Another retirement risk is lifestyle risk. To maintain a comfortable lifestyle in retirement it is important to ensure enough discretionary income to fully enjoy retirement.
Why RTQs don’t work RTQs work better for people in the accumulation stage of life because they weren’t designed to handle the broader questions that retirement brings. They can play a small role in helping to decide asset allocation, however, they cannot be used in place of a retirement plan.
It is important to come up with a retirement income strategy based on goals first. By beginning a retirement plan with a questionnaire you end up boxing yourself into a strategy that may not be in alignment with your ultimate retirement goals. Listen in to hear why I think RTQs are a poor excuse for proper retirement planning.
Resources & People Mentioned * Boomer Benefits * Why Risk Tolerance Questionnaires Don’t Work for Retirees * The Mullet Episode * BOOK - Paychecks and Playchecks by Tom Hegna * Wade Pfau’s Retirement Researcher blog * The American College
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Do you let news headlines affect your choices? The Center for Retirement Research at Boston College wanted to learn more about this question, so they conducted a study to find the answers. In this episode of Retirement Starts Today, we’ll take a look at the findings of this study and analyze how people’s misconceptions can influence their life choices in retirement. After checking out the retirement headline, I’ll clarify a Rule of 55 question from Dave. Listen in to hear how headlines may be affecting your decisions.
Outline of This Episode * [2:32] Media coverage of Social Security could affect claiming age * [7:21] Don’t let scary headlines plan your retirement for you * [9:40] A tricky Rule of 55 question from Dave
Do sensational headlines affect people’s retirement decisions? I found an article written by Emile Hallez at Investment News titled Media Coverage of Social Security Could Affect Claiming Age which piqued my interest since, as a financial advisor, this is exactly what I don’t want to hear.
In this age of social media, we are used to immediate gratification which means that many people don’t dig past a news story’s headline to learn more. The Center for Retirement Research at Boston College studied this phenomenon in relation to Social Security benefits and retirement age. Articles on Social Security often emphasize the trust fund depletion date which leads people to believe that the entire Social Security system is insecure.
Check out the episode where we recently reviewed an article similar to the ones shown in this study.
How did people react to the experiment? To analyze how people reacted to headlines, researchers showed several types of headlines on Social Security to participants and then asked them a series of questions about their confidence in the Social Security system. The researchers studied how the type of headline affected people’s decisions regarding their own retirement plans.
They discovered that workers shown headlines that emphasized the Social Security depletion date decided to claim Social Security a year earlier than those in the control group. Learn more about how the study was conducted and the results by pressing play.
Don’t let alarming headlines plan your retirement A careful retirement plan should be created based on what is right for you and your family. You’ll want to consider your financial future in the long term and how it will affect your life. Shocking headlines incite many to act on fear, but this would be short-sighted. Once you have a retirement plan in place, you can refer back to it when making any decisions about your retirement rather than a knee-jerk reaction.
Rules of thumb for claiming Social Security If you are listening to a retirement podcast, hopefully, you aren’t easily swayed by sensational Social Security headlines, but how should you plan on claiming Social Security? If you are married then I suggest deferring the larger benefit for as long as possible. You can collect the smaller benefit whenever you need the income. By deferring the larger benefit, you will be deferring income longer which will leave room to do Roth conversions if needed and the larger benefit will grow to serve the spouse that lives the longest. It doesn’t matter who earned the larger benefit because upon the first death the smaller benefit expires and the larger one continues.
Resources & People Mentioned * Media Coverage of Social Security Could Affect Claiming Age * Episode 210 - The Social Security Update * Forbes article on the Rule of 55 * Check out Boomer Benefits for your Medicare needs
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Our chances of death are 100%, so that means at some point in your life you will probably experience the death of a loved one, and you’ll need to prepare for your own passing. Choosing the right executor can make a traumatic time more bearable. The role of executor is not an easy one, which is why it is important to choose wisely.
In this episode of Retirement Starts Today, you’ll hear an interview with executor expert, David Edey. David has recently written a book titled How to Pick an Executor and Avoid Family Fights. After listening to this interview you’ll be able to choose and become an exemplary executor.
Outline of This Episode * [2:32] How to prepare your executor * [4:37] Should you hire a 3rd party or ask a family member * [10:15] How to be the world’s best executor * [15:34] More about David’s book
What you can do to prepare your executor David learned how to be a rock star executor from his own challenging family experience. It took him 7 years, 10 court appearances, and $50,000 in lawyers’ fees to settle his parents' estate and they both had a will!
Everyone seems to know someone with an executor horror story which is why he decided to write his book. David wants to teach others how they can choose or be a fantastic executor.
If you ask someone to become your executor, you must ensure that they have all the tools they need to perform their duty. Make sure to have an up-to-date will in place. Talk with your beneficiaries so that they know what to expect when the time comes. Your digital assets and files should be organized and easily accessible. No one wants to be looking around for missing paperwork when they are dealing with the loss of a loved one. Make it as easy as possible for the executor to get the job done.
How to choose an executor Families can fall apart when it’s time to settle an estate which is why it is important to carefully choose an executor. You could choose a family member, a friend, or a third party. If you choose to hire a third party there will be many fees involved. If you choose one of your children over another it is important to communicate with both the chosen executor and the other children to ensure that you help to keep the family harmony after you pass.
There is no one right way to choose an executor, but you should consider the health and age of the chosen executor. It is important to choose someone who can keep the dynamic that you want to set for the estate and that can get the job done.
How to be a fantastic executor If you have been chosen to be an executor you need to ask plenty of questions. It is important to understand where important documents, passwords, and information are. Insist that the will is up to date and that everything is labeled in an easy-to-find location. David’s book has a wealth of resources that can walk you through the process of being an executor. He explains the protocols for shutting down social media, bank accounts, and other online accounts. You can also check out David’s Executor Help podcast.
Family dynamics can fall apart when a loved one passes. Doing the proper preparations for your passing may be challenging now, but it will pay off in the long run. Doing so will ensure that you leave a legacy and not a mess.
Connect with David Edey * How to Pick an Executor and Avoid Family Fights * Executor Help podcast * Executor Help on Facebook * @DavidEEdey on Twitter
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If you are like many Americans who watch the news, inflation is probably on your mind. Since the Covid 19 pandemic began costs have been rising. We are still facing the effects of the supply chain breakdowns brought on by the pandemic in addition to extreme worldwide weather events.
These events have led to an increase in the price of goods on everything from fuel to food to lumber. This type of inflation can be stressful for the average working family but even more worrisome for those on the cusp of retirement.
Listen in to hear the latest Social Security news and learn how you can combat rising costs. Make sure to scroll down to the bottom of the show notes to access all the links mentioned in this episode.
Outline of This Episode * [2:52] Good news about Social Security * [4:26] How COLA is calculated * [5:40] COLA may not be enough to keep up with inflation * [9:28] What can we do to hedge for inflation?
Recipients of Social Security are getting a raise If you are already retired and receiving your Social Security benefits, I have good news! The annual cost of living adjustment (COLA) will increase by 5.9% in 2022 which will boost the individual income of recipients by about $92. This is the largest increase in Social Security benefits since the 7.4% augmentation in 1983.
Over the past decade, the rise in COLA has been negligible, only averaging 1.65%. This minimal increase is due to the way COLA is calculated. This calculation is based on the change in prices of a market basket of goods as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPIW).
Even with next year’s close to record-breaking increase, COLA may not be enough to truly combat inflation.
Are yearly inflation adjustments to Social Security enough to truly keep up with inflation? Despite yearly inflation adjustments, Social Security benefits have decreased their buying power by 32%. Even though COLA has increased benefits by 55% since 2000, senior citizens’ expenses have actually increased by 104.8% over this same timeframe.
This ThinkAdvisor article has a photo slideshow that illustrates 10 costs that older Americans have seen risen over the past 20 years.
The article cites The Senior Citizens League (TSCL), an advocacy group, which is trying to change the way COLA is calculated. While TSCL supports legislation that could modestly increase COLA, you won’t want to wait for Congress to ensure that you can maintain buying power in retirement.
What can we do to hedge for inflation in retirement? Buying (and holding) stocks in the best companies in the world is the best way to hedge for inflation. The best companies in the world will hire the best employees in the world, and together they will figure out how to find efficiencies and raise prices which will provide you with positive returns and an increasing long-term share price, regardless of inflation.
An allocation to 50-70% stocks should be plenty to keep your portfolio growing, which will grow your account balances over the long term and allow you to increase your monthly distributions. With this kind of diversified portfolio, you’ll be able to use your cash and bonds to weather the storms and ride out bumpy markets.
How are you planning to combat inflation in your retirement plan?
Resources & People Mentioned * 10 Fastest-Rising Costs for Older Americans Since 2000 * Our November 2020 Medicare series * Boomer Benefits * AARP Social Security Increase article * Basket of Goods definition * The Senior Citizens League
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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The end of the year is coming up right around the corner, and you know what that means: it’s time for end-of-the-year tax planning! However, this year’s tax planning may look a bit different with new tax legislation making its way down the congressional pipeline. Many wealthy individuals are nervous about what the current regime has in store for them. This is why when I saw the headline Tax Moves Advisors Should Be Making Before Year's End in Financial Advisor Magazine I knew I had to share it with my audience. If the news of the tax legislation has you worried, you won’t want to miss this episode.
Outline of This Episode * [2:22] It’s time for year-end tax planning * [8:53] Why you should donate to charity this year * [12:44] How to offset future inherited income taxes * [18:08] How a qualified charitable distribution could help with taxes
Do you have tax-change proposal fatigue? Keeping up with all the changes in tax legislation over the past few years can be exhausting. It seems like once in a generation tax law changes happen every couple of years.
One of the most troubling things about new tax legislation is wondering when it will take effect. Will the new law come into play at the end of the year, or will the changes be retroactive? While this can cause a bit of worry there is no sense in speculating. There is only so much that you can do to prepare.
Realize more income now to be proactive about the potential tax law changes While we have no idea what the future might hold, we can still have the presence of mind to plan ahead. One way to combat a hefty tax bill next year is to accelerate your income now.
For instance, if companies typically give bonuses at the beginning of the next year, they could pay those bonuses out in December instead.
Another way to realize more income sooner rather than later is to close any business sales before the end of the year to lock those earnings in under the current tax law.
Enter into deduction mode if you are close to retirement If you are nearing retirement and you know your income will drop once you retire, you should be in deduction mode. Take advantage of HSAs and 401Ks rather than Roth IRAs to reduce your income and maximize your contributions between now and the end of the year
If your income decreases once you retire then you can start Roth conversions to mitigate the tax deductions you took when you had a higher income.
Year-end tax tips If you file the standard deduction, don’t miss out on the charitable deduction of $300 for singles and $600 for married couples.
If you are able to itemize your deductions and you are charitably minded, consider funding future years' charitable contributions through a donor-advised fund (DAF). If you have highly appreciated stock then you could use it to contribute to charity while also realizing a valuable tax deduction.
Another way to finish out the year is to anticipate your year’s earnings so that you can fill up your tax bracket with Roth conversions. This is a great way to take advantage of the historically low tax rates.
Worrying about future changes won’t help at all, instead, do what you can to take advantage of this year’s low tax rates to prepare for an uncertain future.
Resources & People Mentioned * Tax Moves Advisors Should Be Making Before Year's End
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Do you wish that you could have a mulligan when it comes to taking your Social Security benefit? Once you file for Social Security, it seems like your decision is set in stone. But what if I told you that you have options to reverse your decision?
In this episode of Retirement Starts Today, we’ll explore an Investment News article written by one of my favorite Investment News contributors, Mary Beth Franklin. This article provides options for those who have remorse about the timing of their Social Security claim.
In the listener questions segment, we’ll discuss Jerry’s question about his health insurance premiums under the Affordable Care Act and how they are affected by the 8.5% rule.
This episode is jam-packed with helpful retirement information, so press play now to continue your retirement education.
Outline of This Episode * [3:02] 3 Social Security do-over options * [8:25] Check out the Retirement Repair Shop podcast * [9:24] Jerry’s ACA insurance premium questions * [13:50] Clarification on the ACA 8.5% rule
There are 3 ways that you could reverse your Social Security timing Have you found yourself regretting the timing of your Social Security benefits claim? Maybe you wish that you had waited longer to receive a larger benefit or maybe your retirement timeline has changed based on the pandemic or other factors. If so, I have good news for you. There are 3 ways that you could reverse your decision.
There are many people that wish they could go back and change the timing of their Social Security claim, so if you are one of them make sure to listen to this episode to learn which choice might best fit your needs.
Withdraw your application You may not realize this, but you can withdraw your Social Security benefits application. Use form 521 to do so, but keep in mind that there’s a catch.
You’ll have to repay any earnings you or your dependents have received. Withdrawing your application can only be done once, but doing so will allow you to apply again later when your monthly check would be higher.
You’ll also want to consider whether you are already enrolled in Medicare. If you withdraw your application, your Medicare premiums will no longer be automatically deducted from your Social Security benefit, so you’ll have to find another way to pay.
Suspend your benefits If repaying your Social Security benefits isn’t feasible, then you might want to consider suspending your benefits. This way you don’t have to repay anything, however, keep in mind that not only will your benefits stop, but also this action will stop any benefits to a dependent family member. Your benefits would then start again at age 70. Listen in to discover why this may be a good strategy for married couples.
Request a lump sum payout Requesting a lump sum payout works only for individuals who have reached full retirement age. They can request a lump-sum payout of up to 6 months of retroactive benefits. This option would best be used by someone who has an urgent need for cash or for people who waited until after their full retirement age to claim either spousal or survivor benefits. After receiving a lump-sum payment, that person could then voluntarily suspend benefits and earn delayed retirement credits up to age 70 which would boost future monthly benefits.
Claiming Social Security seems like such a permanent decision so if life comes along and changes your plans it’s good to know that you have these alternatives to consider.
Resources & People Mentioned * November 2020 Medicare series with Danielle from Boomer Benefits * Boomer Benefits * Retirement Repair Shop podcast with Mary Beth Franklin * 3 Social Security Do-Over Options article * Retirement Answer Man podcast * Stay Wealthy podcast * Financial Symmetry podcast * Market Watch article on the ACA subsidy cliff * KFF.org - resources for the ACA and other health matters
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Do you wish that there was a list of what to do and what not to do in your retirement? I recently discovered an article from MorningStar.com written by Sheryl Rowling titled 8 Financial Do's and Don'ts for the 7-Figure Retirement, and I thought it would be perfect to share with my listeners. You'll learn several tips that you should consider when planning your retirement.
After we analyze the article’s do’s and don’ts, we’ll turn to Debbie’s question about taking Social Security early in order to protect beneficiaries.
Outline of This Episode * [1:42] 8 Financial Do's and Don'ts for the 7-Figure Retirement * [4:11] Boredom is a 4 letter word in retirement * [6:25] Don’t take Social Security too late * [10:19] Don’t write checks to charity * [12:07] Consult a financial professional * [13:45] Should Debbie take Social Security early?
8 Financial tips for a successful retirement Don’t retire too early. Retiring too early can be detrimental to both your psyche and your savings. If you have to retire early or sooner than expected, make sure that you retire to something rather than away from something. Creating a purpose in retirement can ensure that you don’t get bored. Boredom is a four-letter word in retirement.
For every year that you retire early, you have one less year of savings and one more year of spending. Do the math to learn what that could mean for your portfolio.
Do watch your taxable income level. This may sound odd, but it often makes sense to pay more taxes now in order to pay significantly less later. Retirement is one time in your life when you have control over the taxes you pay. Implementing careful tax planning strategies can save you over the course of your retirement.
Don’t take Social Security too early or too late. When to take Social Security is a complex question, and the answers vary depending on the individual. It’s usually best to wait until full retirement age to start taking benefits and it’s often even better to delay until age 70 especially if you’re married. Listen in to hear what I usually recommend to my clients.
Do consider Roth conversions. If you have the opportunity to convert your IRA to a Roth you should even though you must pay tax on the amount converted. Remember that since these are after-tax dollars, the income they provide is never taxed.
Do consider retirement stages and safe withdrawal rates when determining your budget. Spending more in the early years of retirement makes sense as long as you consider several factors. You’ll need to ensure that you have a safety net in place and that you have a plan to reduce your spending over time or whenever the market becomes uncooperative.
Don’t lock yourself into financial commitments or expensive payments. Long-term expenses like leasing a luxury car can lock you into financial commitments that you can’t free yourself from. Becoming the Bank of Mom and Dad can not only ruin your kids’ chances of financial independence, but it can also ruin your relationship and your own financial security in retirement.
Don’t write checks to charity. Instead of writing checks to charity, consider contributing appreciated stocks. This way of charitable giving can save you more in taxes. One way to utilize this strategy is by creating a donor-advised fund (DAF) which could be likened to a charitable IRA.
Do consult a financial professional. Obviously, I agree with this tip. Consider consulting a CPA as well as a financial advisor so that you can ensure that you are considering every angle in your retirement plan.
Resources & People Mentioned * Boomer Benefits * 8 Financial Do's and Don'ts for the 7-Figure Retirement
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Do annuities give retirees a different attitude towards spending in retirement? In this week’s retirement headlines, we’ll examine an article that discusses the psychological benefits that retirees who shift their assets from savings to lifetime income enjoy. This group of retirees has more of a license to spend attitude and ends up gaining more enjoyment from their retirement savings.
Make sure to stick around until the end of this episode to hear my thoughts on the article. You’ll also hear me compare the advantages and disadvantages of using Cobra instead of the ACA before Medicare.
Outline of This Episode * [2:42] 3 need to know bullet points about annuities * [6:52] What do I think about using annuities? * [12:12] Cobra or the ACA?
Are you spending less than you should in retirement? Are you having a hard time loosening the purse strings in retirement? If so, you are not alone. Many retirees find it challenging to shift from a savings mindset to a spending mindset, so they find it difficult to spend their hard-earned savings even on the things they most enjoy. As a result, many retirees end up spending far less in retirement than they could. David Blanchett and Michael Finke at ThinkAdvisor.com recently wrote an article about the shift in mindset that annuities can provide.
Why do people purchase annuities? The biggest question in retirement is how much you can safely spend. Retirees are always at the risk of outliving their savings if they spend too much or they end up living a less enjoyable life if they spend too cautiously. For this reason, many decide to transfer the risk of an unknown lifespan to an insurance company that provides guaranteed income.
Do annuities provide a shift in the spending mindset? The authors of the article reference a study that discovered that people don’t spend more simply because they are wealthier, instead they spend more based on the form of wealth that they hold.
Households that hold more of their wealth in guaranteed income end up spending significantly more each year than those which hold a greater share of their wealth in investments.
Retirees end up spending twice as much each year when they have guaranteed income. Every dollar of assets converted to guaranteed income results in twice the equivalent spending compared to the money that is left invested in an investment portfolio.
Are annuities the only way to shift your spending mindset? However, you don’t necessarily need an annuity to change your spending mindset. Behavior management and accountability are the most important aspects of retirement planning. If you can hold yourself accountable and adjust your spending habits when necessary you can come up with a successful retirement plan.
To achieve that, you need a plan that you can have confidence in. If you can create a financial plan in retirement that you feel confident in then you will be able to spend with confidence. One way to increase your confidence in your retirement income is to defer Social Security for as long as possible. By waiting until age 70 you can increase your benefit amount by 32%.
What are you doing to create a successful retirement plan? Listening to this podcast can help you gain the knowledge and confidence you need to successfully plan your retirement.
Resources & People Mentioned * Boomer Benefits - Don’t miss out on the FREE 5 Easily Avoidable Medicare Mistakes download * Boomer Benefits on Facebook * Boomer Benefits on YouTube * Think Advisor article on annuities * Health and Retirement Study * Guyton and Klinger original article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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The annual Social Security beneficiary report was recently released and just like every other year that they release it, it has caused people to worry about their future. Social Security is a crucial, foundational element of most retirement income plans, so when you read headlines that it will run out soon how should you react?
Should you go about changing your retirement plans altogether? Should you file for Social Security early to ensure you get the most out of your benefit? We’ll explore these questions in this episode of Retirement Starts Today.
Outline of This Episode * [1:52] Will Social Security run out in 12 years? * [4:44] How to fix the Social Security math problem * [11:20] What you should do to prepare for a Social Security pay cut
Covid has exacerbated the Social Security funding crisis The recent report released by the government was unsurprising to anyone who has been paying attention. This year’s statement revealed that the Social Security trust fund will ‘run out of money’ in 12 years which is one year sooner than previously anticipated. The time frame has been accelerated due to the Covid pandemic.
The issue of ‘running out of money’ is caused by a math problem. There are insufficient people entering the workforce to support the increasing number of baby boomers that collect Social Security each month. The record unemployment rates during the pandemic resulted in even fewer people contributing to the Social Security fund.
There is a myth that there are fewer people in the generations succeeding the baby boomers than there are in the baby boomer generation, but this myth isn’t true. There are actually more people in each of the generations that follow the Baby Boomers. So, the problem isn’t due to a lack of work-age people. It is due to a lack of funding.
How to fix the lack of Social Security funding Before I continue, I need to address the wording that everyone uses surrounding the shortage in Social Security funding. It is commonly stated that Social Security will run out of money. However, Social Security cannot run out of money while workers continue to pay into it. The issue is that there won’t be enough income coming in to support the money going out to the beneficiaries. This means that there will be a reduction in benefits rather than a complete lack of funds.
There are two ways that Congress could alleviate the Social Security funding problem. They could increase payroll taxes beyond the current $142,800 cap or they could increase the percentage of the 12.4% payroll tax that comes from each worker.
What you should do to prepare for a Social Security pay cut Hopefully, now you aren’t worried about the complete elimination of the Social Security program, but you may still be concerned about getting a Social Security pay cut in retirement. Many people feel pulled to file early so that they can get into the program as soon as possible. However, if there is a reduction in Social Security benefits those people will be taking a cut on an already reduced benefit.
If you wait until age 70 to collect your Social Security payment you will receive 132% of your original benefit. So if there does end up being a reduction in the Social Security program, then you will end up taking a cut on an increased amount.
What would you prefer--taking a cut on a cut or a cut on a larger amount?
Don’t let sensationalist headlines dictate your retirement plans. Create your retirement plan based on your own unique needs. By maintaining a long-term focus you could end up saving hundreds of thousands of dollars in opportunity costs.
Resources & People Mentioned * Boomer Benefits * Boomer Benefits Youtube channel * Boomer Benefits Facebook Group * CNBC article on Social Security * US News article on Social Security
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Have you been feeling the pull to retire? This feeling isn’t constrained to those nearing retirement age; many people have been feeling the desire to quit their jobs lately. So many workers are considering a job change that this wave of people has begun what is called “The Great Resignation.” I read about this phenomenon on The Guardian website in an article written by Elle Hunt. Elle considers 17 questions that you should ask yourself before you make the leap into the unknown. If you have been contemplating retirement or a job change you won’t want to miss this episode.
Outline of This Episode * [2:02] 17 questions to ask yourself if you are ready to quit your job * [4:53] What do you actually want to do? * [8:08] What could you gain by quitting your job? * [12:55] You can’t bootstrap your mortgage
Attitudes surrounding employment are changing A recent survey indicated that over 40% of people have considered a job change this year. This trend could be a byproduct of stress brought on by the pandemic, but it could be due to a global shift in mindset which has led to a changing shift in employment priorities.
Have you considered retiring early or leaving your current job? If so, you’ll want to make sure that you ask yourself these questions before making any rash decisions.
17 questions to consider if you are ready to quit your job 1. What are your frustrations? Before you up and quit, you’ll want to ask yourself why you really want to quit. What are the underlying causes of your dissatisfaction? Make sure to go deep in your thinking since your first thought is rarely the true reason for your unhappiness. To explore this question further write down every thought and feeling you have surrounding your job for 10 days. 2. How did you get to where you are now? Reflect on what led you to your current job and what brought you to it in the first place 3. How long have you been feeling this way? Were you unhappy before the pandemic or is the feeling more recent? Consider whether your feelings are pandemic related. If so, this could mean you are actually seeking more control over your life. You may simply feel burned out and need some time off. 4. What do you actually want to do? How do you want to live your life? Who do you want to be? These questions cut to the core and ensure that you explore your values. You may find that your unhappiness runs deeper than your career choice. 5. How would your perfect day be different than it is now? Coming up with your perfect day can also help you explore whether you are ready to eliminate all work-related activities. If so, you may be ready to retire. 6. What do your friends and family say? Use your support system as a sounding board for your thoughts. 7. What would you be giving up by quitting? If you are thinking of retiring early, think about the costs of healthcare before Medicare and other stabilizing factors that your job brings. 8. What would you gain by quitting? Try to steer clear of revenge retirement. It may lead you to a situation that you can’t come back from. Your negative feelings might pass, so don’t box yourself into a corner. 9. Have you explored every option with your employer? Try negotiating. You may be able to work out reduced hours, higher pay, or other changes in your workplace. 10. Should you wait until you’re back in the office to make a decision? Be clear with your own needs and desires when considering this question. 11. Should you quit due to a toxic boss? It can be challenging to see a toxic relationship while you are in the thick of the situation. A toxic work environment could mean that it is time for a change. 12. When should you quit over stress? Is stress causing you to lose sleep, enjoy time with your family, or negatively affect your downtime? If your job adversely affects your life and health then you’ll want to assess why you feel stress. 13. Are your expectations realistic? Can you actually leave your job? 14. Can you afford to cover your expenses? If you can’t, then you may need to stick it out a bit longer. 15. Could caring less help? Try setting boundaries in your workday. Define your values and step away from work when needed. and define values. 16. Is now the right time? You can empower yourself by filling in the gaps. 17. Why can’t you make a decision? Set a decision date so that you don’t let your indecisiveness drag on.
Resources & People Mentioned * Boomer Benefits * Ready to Quit Your Job from the Guardian
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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In retirement, you have all the time in the world, but are you using your time wisely? I recently read an op-ed article from CNBC about the power of delegation and it got me thinking about the way we spend our time.
On this episode of Retirement Starts today, we’ll explore that op-ed article, I'll share what I learned about inherited IRAs this week, and I’ll answer a listener question about retirement planning beyond the 4% rule.
Outline of This Episode * [2:22] What I learned in my office this week * [5:24] An inherited IRA example * [6:35] The value of paying others to do services for you * [10:55] A question about episode 193 * [14:52] Check out my retirement guardrails video
What is the highest use of your time? Are you planning to live your best life in retirement? If so, you may want to consider delegating various tasks that could be better handled by someone else. Even if you have lived a life of frugality you should ask yourself if doing certain tasks is the best use of your time. You may receive a better return on investment and return on your health by hiring someone else to do certain services for you. Use your time to enjoy life rather than by doing menial tasks.
Tasks that may be best done by others If you can afford it, consider hiring someone to complete these tasks for you.
- Hire a lawn care service - Not only will having someone else care for your lawn save you time, but it could also save your energy, and maybe even save you from heatstroke, or worse.
- Use a travel agent for vacation planning - A professional travel agent can help keep your vacation costs down and save you time on research. A travel agent can also assist you with problems during your trip which can be extremely valuable when traveling abroad.
- Grocery pick-up, delivery, and ready-made meals - Many of us discovered the magic of grocery pick-up or delivery services during the pandemic. Choosing a grocery pick-up or delivery service can help save you time on meal prep and also alleviate any COVID-19 related fears associated with shopping in person.
- Hire a business coach - A business coach can help you overcome hurdles that stand in the way of your personal and professional goals. They can also help you navigate career options and even reduce stress.
- Quit doing your own taxes - Leaving the tax prep and planning to a professional can save you time and money.
Which of these services would best serve you?
How will you spend your time in retirement? Even though you will have more time on your hands in retirement, it still makes sense to use your time wisely. Think about the highest and best use of your time. What could this extra time mean to you? Would it bring an improvement in your quality of life? Could you plan your bucket list or how to leave your legacy? Retirement is all about the what if, so what if you could take some of these tasks off your plate?
Make sure to listen to hear what I learned this week about inherited IRAs and you won’t want to miss a listener question about using retirement guardrails. This episode is packed full of information so press play now to get started.
Resources & People Mentioned * Boomer Benefits * My Retirement Guardrails Video * Op-Ed article from CNBC * Ed Slott’s IRAHelp.com * Episode 193 - Improving the 4% Rule
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Since travel is on many soon-to-be retirees' must-do lists I have created this summer travel series with various travel experts. Danielle Desir from the Thought Card podcast joins me today to discuss how to travel to any destination on a budget. Recognized by Flight Network as one of the best travel hackers in the world, Danielle has figured out how to travel to bucket-list destinations on a dime. Are you ready to learn how to plan your next big trip on any budget? Listen in to discover how.
Outline of This Episode * [1:22] Danielle’s journey to bucket list budget travel * [3:23] Identify the things that you value * [7:21] Take an individual approach * [10:53] Danielle’s top destinations * [12:32] How to choose to repeat a destination * [15:41] Jet lag tips * [20:47] Where to learn more about travel hacking with Danielle
If you’re on a budget, don’t settle for inexpensive destinations, think big! Many people think that if they are on a budget they can only travel to budget-friendly places, but Danielle Desir takes a different approach. As a travel hacker, Danielle has learned how to make travel to bucket-list destinations more affordable. She describes using an abundance mentality as a way to make affordable travel work. She recommends getting creative when planning, “take what you have and make it work.”
Identify what matters to you The first step in becoming a financially savvy traveler is to identify what you value in travel. Is it important to you to be comfortable on a flight? Do you like to eat out and try the best local cuisine? Do you want to see everything you can in one location? Do you prefer luxury accommodations?
Once you have identified what the most important aspects of travel are to you then you will understand where you can be flexible in your spending. If eating out isn’t important to you then you can save money by packing a sack lunch each day. If a fancy hotel room isn’t important then you could save money by staying in a hostel or an inexpensive Airbnb or motel.
Understanding what you value in travel will help you save money and ensure that you have an amazing time on your trip.
Make a game of saving money Another way to save money is to gamify your planning experience. By making a game of saving money you can compete with yourself to see how much money you can save each time you travel. You can cut costs in a variety of ways by looking for inexpensive accommodation, saving on flights, or by using travel points. Gamifying your travel costs allows you to get creative and save more.
Communication is key when it comes to couples’ travel When traveling with your significant other it is important to take into account what they value as well. Make sure to communicate with them so that you are both on the same page. They may value different things about travel so it is important not to skimp in the areas that matter to them.
You should also be understanding of your partner's travel experience. There may be one partner that is more travel savvy than the other. That means that the travel-savvy partner needs to be patient and explain the importance of the things that you do to save money when traveling.
It is also important to remember that traveling in retirement will be much different than traveling for work. You are out there to have fun. Listen to this episode with travel expert Danielle Desir to hear how you can travel to any destination affordably.
Resources & People Mentioned * Boomer Benefits
Connect with Danielle Desir * Thought Card Podcast * How To Save Money In Iceland * How Much Does A Four Day Trip To Iceland Cost * Iceland: Nature, Nurture and Adventure
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Do you have bond funds in your portfolio? Many people understand the way that bonds work, but they may not know how bond funds work. El has written in to ask this question which I will answer in the listener questions segment.
Before we get to that retirement question, we’ll take a look at a MarketWatch article titled Are You in Retirement Hell? It was such a catchy title that I had to check it out.
The article expresses the author’s struggle with finding challenge and meaning in retirement. You won’t want to miss the ways that you can avoid your own retirement hell.
Outline of This Episode * [2:32] Are you in retirement hell? * [5:38] How to prevent retirement hell * [6:56] How do bond funds work? * [12:53] What are alternative options to bond funds? * [16:52] Does John have enough money to retire?
Are you in retirement hell? Retirement is a time of fun and relaxation. You no longer have exhausting work schedules, long commutes, or alarm clocks waking you up every morning. Every day is yours to do as you wish.
Passing the days pursuing leisurely activities like playing golf or visiting the grandkids may be just perfect for some laid-back retirees, but for those looking for more challenging pursuits, these carefree days could quickly turn into retirement hell.
You can recognize if you are in retirement hell if you are feeling lost and vulnerable. You may even sink into a depression as the activities that you once enjoyed feel empty and meaningless.
How to fix (or prevent) retirement hell In the article, the author mentions that he didn’t break out of retirement hell until he finally sat down and defined his concept of fine.
Contentment is an important part of retirement, it’s so important that I even discussed it once in a previous episode with Fritz Gilbert. When you’re done listening to this episode, pop back over to that one and have a listen.
I always like to say that you shouldn’t be retiring away from something, instead retire to something. It’s important to consider what you will do with those extra 40 hours a week that you now have at your disposal.
You don’t want to wait until you are in the thick of retirement hell to figure this out. Try creating a practice retirement with some of your vacation time. Take a couple of weeks off and don’t go anywhere or do anything exciting. Instead, try passing the days as you would like to when you retire.
How do bond funds work? A bond fund is similar to a mortgage, but you have a group of investors and a company instead of the mortgage lender and home buyer.
Bonds can be purchased individually and held to maturity or they can be traded. Bonds are similar to stocks in that they can go up or down in value but they have different interest rates and different rates of maturity.
To spread out the risk of buying individual bonds, most investors choose to invest in a basket of bonds or a bond mutual fund. The risk is spread in the same way that you spread out the risk in your stock portfolio.
What are alternative options to bond funds? If you aren’t happy with the bond funds that you have now try Googling portfolio immunization. Portfolio immunization means that you match your retirement liabilities with your retirement assets.
The way to do this is to purchase a bond in advance so that it matures the year that you need the cash flow. The specific benefit of this strategy is holding the bond until maturity. By holding the bond until it matures you remove the interest rate risk.
Make sure to stay tuned until the very end where I answer John’s question about whether he has enough money to retire. You may be surprised by my recommendation.
Resources & People Mentioned * Boomer Benefits * MarketWatch - Are You in Retirement Hell? * Episode 146 with Fritz Gilbert * Contentment episode with Fritz Gilbert * Retirement Manifesto * The infamous mullet episode * Guyton’s Guardrails episodes 153, 149, and 93
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Are you preparing for a successful retirement? If you are, you’ll need to consider more than just your finances because 80% of a successful retirement has nothing to do with money. However, when people focus on retirement planning, money is often the only thing they focus on. In the retirement headlines segment this week, we’ll check out an article from Financial Advisor Magazine titled Right Way Retirement. This article takes a look at the non-financial aspects of retirement that many financial advisors miss when it comes to retirement planning.
In the listener questions segment, I answer a question from Majid about working while collecting Social Security. Make sure to tune in until the end to hear how to complete the earnings test so that you will understand how much you can earn and how to avoid Social Security penalties.
Outline of This Episode * [2:12] To plan for retirement you need to stay ahead of the curve * [4:00] 6 items to focus on in retirement planning * [8:03] Will income from a part-time job affect the amount of Social Security I receive?
Retirement isn’t only about the money Robert Laura recently published an article in Financial Advisor Magazine about doing what it takes to create a successful retirement. The author noticed that most financial advisors that help people get ready for retirement focus solely on the financial aspect of this life change. However, retirement isn’t all about the money. He has noticed that advisors often have a blind spot for the areas of retirement that aren’t financially related. To truly prepare for retirement, people need to take a more holistic approach.
6 ways to create a successful retirement 1. Replace your work identity. Many retirees feel like they lose a significant piece of their identity when they leave the workforce. To combat this sense of loss, identify the specific areas of your career that you get fulfillment from. Then think of ways that you can parlay that area of fulfillment into your life in retirement. A couple of ways that retirees choose to carry on their former work identity in retirement is through mentoring or consulting. 2. Fill your time with meaningful tasks. Once you retire you’ll have a 40-50 hour space to fill in your week. Creating a retirement routine can help combat boredom. Try filling the gap with an active and healthy lifestyle. This will not only leave you fulfilled but healthier as well. 3. Stay relevant and connected. When you leave work behind you also leave much of your social network. Retirement can be an opportunity to re-establish old connections and create new ones. 4. Keep mentally and physically active. You can do this by creating healthy routines. 5. Express your spiritual beliefs. Not everyone is religious, so if you're not, you could work on improving your mindset by cultivating a gratitude practice. 6. Feel financially secure. If you’ve been listening to this show for a while, hopefully, you are well on your way to meet this goal.
Create a plan to gain the most fulfillment from your retirement Creating a retirement plan that addresses all 6 of these areas can help you create a greater sense of satisfaction with your life in retirement. You don’t want to get into the thick of retirement and discover that there is something missing from your life. Start a more holistic approach to retirement planning now so that you can create a meaningful life in retirement.
Make sure to tune into the listener questions segment to hear about receiving Social Security while you are still working. You’ll learn just how important it is to know your full retirement age and how the Social Security Earnings test can help you keep the most from your benefit.
Resources & People Mentioned * Boomer Benefits * Full Retirement Age from SSA.gov * Exempt Amounts for 2021 * Right Way Retirement from Financial Advisor Magazine
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Do you have a case of frugality syndrome? Many of us are so used to saving and living frugally that we have a hard time pivoting from the accumulation stage of retirement planning into the distribution stage.
A recent retirement headline from Advisor Perspectives titled Overcoming the Frugality Syndrome caught my eye. This article discusses the difficulty that some retirees have in switching from saving to spending. I wanted to share this with you all since so many of you are diligent savers.
After the retirement headlines, we move on to our listener questions segment. Wendell is concerned about having all his eggs in one custodian’s basket and Stella would like to learn about rolling a 401K into a Vanguard target-date fund.
Outline of This Episode * [1:22] What is frugality syndrome? * [4:18] 3 tips for overcoming frugality * [8:55] A question about target-date funds * [14:49] Should you consolidate accounts into one financial firm?
Can too much frugality be a bad thing? Rick Kahler at Advisor Perspectives recently wrote an article about the problems that can arise from too much frugality. He uses one particular example to make his point: the FI/RE movement. FI/RE stands for financial independence/retire early and those that try to achieve this goal often do so by becoming exceedingly frugal.
Many of you have been amazing savers over the years which is why you are on track to achieve your retirement goals. However, while your frugality can help you achieve your retirement goals, a long-term focus on constantly saving can make it hard to stop being thrifty and start spending.
Over the long-term, frugality becomes a habit and thriftiness becomes ingrained in one's being. This mindset makes the act of switching to the distribution stage of retirement a challenge for many people. Rick offers 3 tips on shifting gears from accumulation to decumulation.
3 ways to shift gears from accumulation mode to distribution mode 1. Recognize that frugality syndrome is normal. First, it is important to congratulate yourself on your financial achievement. Once you do so, then you can give yourself the grace and understanding that the transition from saving to spending will be a challenge. 2. Create a spending plan. A spending plan with set limits can help you overcome any anxiety that you may feel about overspending your carefully saved money. This will also help to ensure that your money will last and that you aren’t squandering away your financial future. 3. Get a financial checkup. Consider consulting a fiduciary financial planner a year or so before your target retirement date. You may also look into seeing a Certified Financial Therapist or Certified Financial Transitionist. These financial professionals can help prepare you for the mindset shift that comes with this monumental life change.
Creating a retirement plan can help you spend confidently Don’t think of frugality as a light switch that you can turn on and off. It will end up being a mindset that you have to ease out of.
Early planning can help with the emotional aspects of shifting your financial mindset. Creating a thorough retirement plan can help you to spend confidently. I like to set retirement guardrails that help to safeguard a person from market risk. These set limits protect against sequence of return risk as well as helping with one’s financial mindset.
Resources & People Mentioned * Advisor Perspectives article * Episode 94 - Set It and Forget It
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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How’s this for a headline? I’m 62, unemployed, living off my savings, and waiting on Social Security — ‘Can I go fishing for the next 25 years and forget about work? It naturally caught my eye since there was fishing in the title!
Today we’ll check out this MarketWatch article and answer the headline’s question as well as explore the additional recommendations the article mentions on ways to make retirement savings last.
In the listener questions segment, I’ll answer a complex question about borrowing against your home for a gift for a child. Once you’re done listening please head on over to our annual listener survey to make sure you voice your opinions on the trajectory of the show.
Outline of This Episode * [1:22] Can I go fishing for the next 25 years? * [4:58] Financial advisors weigh in on this question * [14:20] Should I take out $150,000 of my IRA to help my family buy a house? * [19:35] Make your voice heard--go check out our listener survey!
Is it time to forget work and go fishing? A recent Market Watch article caught my eye since it had fishing in the headline. The article opens with a question from a reader about his decision to quit his job early and go fishing for the rest of his life. The recent retiree did a great job saving for retirement and the MarketWatch author and I agree--he is absolutely ready to go fishing for the rest of his life.
I enjoyed reading this article since it included other experts’ responses, so I thought I would dig in and explore them a bit further and add my own 2 cents.
The dangers of leaving ‘moldy money’ lying around One commenter pointed out that the writer had a substantial amount of money in a savings account. He warned of the dangers of inflation by leaving that money in a low-yielding savings account.
I agree with these concerns. Unless there is a specific reason, you need to be wary of leaving ‘moldy money’ lying around in low-yielding accounts. This money will end up losing purchasing power over time due to inflation.
If you do have a substantial amount of money that isn’t invested consider converting a portion of that savings into a Roth IRA. Listen in to hear how I disagree with one advisor’s approach to investing for retirement.
Why the bucket approach works Another advisor suggested the bucket approach for asset allocation. This approach requires you to divide your assets into categories based on your withdrawal timeline.
The super-conservative category is the first bucket you’ll dip into. The less conservative bucket has a longer time horizon, and the aggressive bucket won’t be touched for a long time.
The bucket approach is a great idea and allows you to visualize your near-term assets and distinguish them from your longer, more volatile investments.
Recognizing the difference between the boring short-term assets from the more exciting long-term assets will help you keep your sanity when the market starts misbehaving.
To delay Social Security or not The next area that the article discusses is Social Security. The letter writer plans to wait until full retirement age in order to receive 100% of his Social Security benefit, but there is the possibility of delaying even longer until the age of 70.
Generally, my suggestion is to wait until age 70 to receive the maximum benefit, however, in this case, I don’t think it is as important. Listen in to hear why.
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Resources & People Mentioned * Boomer Benefits * IRS page on gift taxes * MarketWatch article * Annual Listener Survey
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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What do you think about senior living communities? Would you want to move to one? According to a recent WSJ article, occupancy in senior housing is on the decline despite the fact that baby boomers are aging and more of these communities are springing up all over the country. In the retirement headlines segment, we’ll take a look at the reasons for this phenomenon.
But before we get to the retirement headlines I also want to share a conversation I had with a client about how to plan sales of his company stock. Make sure to listen in if you have a significant amount of stock in your company. You’ll want to hear what you should consider before selling.
Outline of This Episode * [1:22] Identify you pain threshold when selling company stock * [5:58] Boomers want to stay home * [10:38] Who will win? * [11:40] How does long-term care insurance play into this equation? * [13:03] Don’t forget to answer our annual listener survey!
Boomers want to stay home It may not be a surprise to you that seniors want to stay in their homes for as long as possible. A recent WSJ article investigates these low occupancy rates in senior housing developments. People born during the Depression and World War II are moving into senior housing, but baby boomers plan to stay in their homes longer. Even though boomers would like to age in place, the oldest of this generation will start reaching their mid-80s within the next decade which is the age when many people start moving into senior housing.
Why are senior housing occupancy rates falling? There are a couple of reasons that senior housing occupancy rates are in decline. One reason is that improved health has led to people entering senior housing later in life than in years past. People are not only living longer, but they are also staying healthier longer.
Another reason for the senior residency decline is technology. There are several new technologies that can help the elderly stay in their homes longer than in the past. Seniors can remain independent for an extended period with technologies like Uber, self-driving cars, and grocery delivery services.
The article also mentions more innovative examples of how technology can help the elderly. One example is LifePod Solutions, a voice remote monitoring platform that can identify seniors' needs and send care when needed. An architectural design firm, Gensler is using technology to redesign senior-friendly homes that can adapt to the elderly’s changing needs. Tolent Construction in the U.K. has designed a mixed-use development that includes senior-friendly homes which will allow the elderly to age in place longer. Innovation is responding to demand and creating myriad ways to help the elderly stay in their communities with friends and family for as long as possible.
Who will win? The commercial real estate market has been betting big on the idea that aging baby boomers will be needing senior housing, but improved technology that can help the elderly stay home longer may change this reality. The beauty of capitalism is that competition will drive the best solution. I see a very bright technology-enabled future for our aging population.
How will long-term care insurance play into this equation? With all of these improvements in technology, will our aging populous still need long-term care insurance? Or will long-term care insurance legislation need to change? One way this insurance could adapt is to allow policies to pay for home upgrades that use technology-based solutions that allow elderly homeowners to age in place. Only time will tell how the technology, real estate, and insurance industries will adapt to baby boomers’ needs.
Before you go, be sure to chime in on what you think of Retirement Starts Today by filling out our annual listener survey. I produce this show with your needs in mind and want to ensure that I am addressing the issues that you find most important. Any changes in the coming year will be based on the results of this survey, so make sure your voice is heard!
Resources & People Mentioned * Boomer Benefits - my go-to Medicare planning experts * Medicare Basics series - start here to listen to Danielle Roberts walk through the basics of Medicare * WSJ article on senior housing * LifePod Solutions * Gensler * Tolent Construction * Annual Listener Survey
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Has the Covid pandemic caused you to reevaluate your life and consider early retirement? If so, you are not alone. Now that we are starting to emerge from the pandemic, many Americans have a new 'life is short' mindset. This, coupled with an upswing in investments and home values is leading many affluent Americans in a rush to retire.
Check out the retirement headlines segment where we explore a recent Bloomberg article that explores this topic. Then, stick around for the listener questions where I answer a question from Randy about paying off his mortgage with a Roth IRA and if you stay until the very end you’ll hear the story behind the Retirement Starts Today theme song.
Outline of This Episode * [3:22] Affluent Americans Rush to Retire in New ‘Life-Is-Short’ Mindset * [7:47] There is a downside to the loss of older workers * [9:32] Should we consider paying off our home loan with a Roth IRA? * [16:21] The story behind the theme song
Participate in our annual listener survey Every year I send out a listener survey to our Every Day Is Saturday newsletter subscribers to give you all the opportunity to guide the content over the next year. In the past, I have made changes based on your answers and I look forward to hearing your thoughts this year.
If you haven’t yet subscribed to the newsletter you can do so here. In addition to being able to participate in the survey, the newsletter also contains all the links from the show each week, as well as free book offerings from the authors I interview, and all kinds of useful retirement tips. If you want to complete the survey now, simply click here.
Many affluent Americans are ready to retire One of the most surprising aspects of the pandemic has been the unprecedented surge in the stock market. Investors have enjoyed double-digit returns and this swell in portfolio values has led many to reconsider their retirement plans. This is in stark contrast to those on the opposite end of the spectrum that had little savings and lost their jobs over the past year. Life for affluent Americans is looking good and many are taking advantage of the situation by considering early retirement.
Changes in work environments are another reason for the mass exodus Another reason people may be considering early retirement is the toll that the past year has had on workers. The pandemic has changed the way that many companies do business. Zoom fatigue and stressful work environments are also contributing factors in the rush to retirement. Teachers and healthcare professionals are experiencing record levels of burnout. While this mass exodus is positive for those ready to retire, there could be a downside.
As the most experienced and productive workers exit the workforce, businesses are experiencing labor shortages. Older workers have higher productivity, lower absenteeism, and usually train the newcomers so this loss significantly affects companies.
Life is short, enjoy it! I love to see the newfound freedom that many are experiencing post-pandemic. Life is short and we should enjoy it fully. To do so, make sure to have a written retirement plan to help guide you.
I also recommend taking a practice retirement before you actually retire. This can help you get a feel for retirement and help you build retirement routines. This trial run will also show you if you are mentally and emotionally prepared for retirement.
Have you been thinking of retiring early? If so, what have you been doing to prepare? Listen in to hear how a retirement rehearsal could help you prepare for your retirement journey.
Resources & People Mentioned * Annual Listener Survey * Bloomberg article on Americans Rush to Retirement * Limbeck * Silver Things
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Episode 200! I can’t believe I’ve made it to this landmark episode. Thank you all for joining me on this journey and I hope you'll join me for the next 200.
I enjoy looking back and reminiscing on previous episodes, but I don’t have to go too far back to find my most recent favorite. Episode 199 is one of my most recent favorites. In it, I interviewed world-renowned Disney expert, Lou Mongello, to discuss multigenerational Disney trips. Check it out if taking the grandkids to Disney is on your bucket list.
In this episode, we’re covering two retirement headlines. The first is from Investment News and it describes how some leading retirement experts question whether advisors should rethink their assumptions about retirement spending when creating financial plans. The 2nd retirement headline is from HumbleDollar.com titled Secret Sauce. This article describes the aspects of work that we want to hang onto, those that we might not, and it outlines six steps to design a successful and ideal retirement.
Outline of This Episode * [2:22] How we should rethink our assumptions about retirement spending * [9:30] How to plan your retirement withdrawal rate * [11:20] To have a successful retirement, you need to have an understanding of work
People in retirement live differently Mary Beth Franklin recently wrote an article for Investment News about retirement spending. She sourced a study completed by the Employee Benefit Research Institute (EBRI) which analyzed the spending of 2000 retirees. The study found diversity in the way people live in retirement based on financial status, retirement goals, demographics, and spending habits. Mary Beth's article focuses on the results for those that were classified as affluent and comfortable retirees.
Not many affluent retirees plan to spend their savings In the article, affluent retirees were defined as those with financial assets exceeding $320,000 and an annual income of $100,000 or more. Most of them were also mortgage-free with zero debt. Their most common sources of income were defined as employer benefit plans, Social Security, and personal savings. They reported that they feel they have saved enough for retirement and only 1 in 3 plans to spend all or a significant portion of their savings.
Comfortable retirees may spend only a small portion of their assets Comfortable retirees had mid-levels of financial assets between $99,000 and $320,000 and an annual retirement income of less than $100,000 a year. Many still had a mortgage and other debts. Most of these people cited workplace retirement savings and Social Security as their major sources of income. Almost 75% of these comfortable retirees said that their retirement savings are sufficient or more than meet their needs, however, more than half of them plan to grow, maintain, or spend only a small portion of their assets.
Why are affluent and comfortable retirees hesitant to spend their retirement savings? The study found that the Baby Boomer generation wishes to retain assets rather than spending them down. So the question is, why don’t these retirees wish to spend their retirement savings?
This may be due to the fact that their Social Security income or pension provides enough to meet their expenses, but it could also be due to an inability to switch gears from accumulation to decumulation. Another reason may be that many retirees don't know how to determine a sustainable withdrawal rate that considers future uncertainties, and this lack of knowledge makes them wary to spend their nest eggs.
I think the key to confidently spending and living off your savings is to understand how much it costs for you to live for a year in retirement. Listen in to hear how you can learn how to calculate your spending so that you can determine your sustainable withdrawal rate in retirement.
Resources & People Mentioned * Retirement Repair Shop with Mary Beth Franklin * Investment News article * Secret Sauce from HumbleDollar.com * Employee Benefit Research Institute study
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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What is the number one travel goal for people approaching retirement? Disney! People young and old alike love to go to Disney. In my 15 years of retirement planning, I have discovered that a multi-generational trip to Disney is at the top of most people’s bucket lists. That is why I have brought the world’s foremost expert on Disney travel, Lou Mongello, on to Retirement Starts Today for an interview. Lou and I discuss all things Disney: the must-see attractions, when to go, how to plan, and what is so special about Disney.
Outline of This Episode * [1:52] What’s so special about Disney? * [4:29] What are the must-see attractions? * [8:45] When to go * [12:53] Plan in advance * [15:56] Lou’s favorite thing at Disney
What’s so special about Disney that everyone wants to go there? Since Disney is the number one bucket list item for many people there must be something extra special about it. When I ask Lou why it is so special, he is unable to quantify this phenomenon. He chalks it up to the way Disney makes us feel. If you have been, you know what he means.
One way that Disney is able to give us those warm fuzzy feelings is with its customer service. Disney’s level of service is unparalleled. They always go beyond expectations which is why everyone remembers Disney with such fondness. No other place in the world enjoys such a level of brand loyalty.
What are the must-see attractions? There is so much to do at Disney. In Orlando, there are not only the 4 main theme parks but there are water parks and resorts to enjoy as well. It can be challenging to figure out what to do when there is so much to choose from.
There is something for everyone at Disney. Lou recommends the classics from Magic Kingdom in addition to some of the newer attractions. Grandma and the littles are sure to enjoy It’s a Small World and the Jungle Cruise. The Haunted Mansion is another Magic Kingdom classic. At Hollywood Studios, the Tower of Terror and Rock n Roller Coaster are fun for the thrill-seekers in the family. And Frozen and Toy Story are hits with the kids. The Animal Kingdom safari also brings joy to the entire family.
When to go? When planning your Disney vacation it is you’ll need to consider when to go. This will depend on your family’s schedule, but there is more to consider. Disney has different travel seasons. The peak season includes major holidays and summer. The off-peak times are the rest of the year. During the off-peak times, you can find values on food and lodging prices.
One tip to use while planning your Disney vacation is to use a Disney travel agency. Many don’t realize that Disney agents are free to the consumer since they get paid by Disney. When planning your Disney vacation make sure to take advantage of these experts. They can help you make the most of your holiday.
What is the best age to go to Disney? There is no bad age to go to Disney. There is so much to do that appeals to every age group. That is what makes Disney such a great multigenerational vacation getaway. Not only is there something for everyone, but there is a wide variety of accommodations and food choices. You can customize your vacation to your family’s specific wishes. The most important thing to do is plan ahead. Much like financial planning, planning before you go to Disney will ensure that you get the most out of your family holiday.
Resources & People Mentioned * Stacking Benjamins
Connect with Lou Mongello * Lou Mongello on Facebook * Lou’s podcast - WDW Radio * LouMongello.com
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Have you ever thought about your relationship with work? As retirement looms ahead, many people become fearful of the unknown that it brings. A common way to express this fear is to worry about money, but this fear goes beyond money. The real fear that people have about retirement is about how they will spend their time when they no longer have work to fill their days.
In 2017, Paul Millerd changed his relationship with work. After climbing the corporate ladder for 10 years he decided to slow down and become a freelancer. Listen to this conversation to hear what Paul learned from this experience and how his wisdom can help you prepare for retirement.
Outline of This Episode * [3:22] What kind of benefits do people see from a long break in work? * [5:16] Taking the first steps towards a sabbatical * [8:15] How can we use the curiosity that emerges with a sabbatical to explore retirement? * [11:01] Did Paul always think this way? * [13:17] Are there any types of careers that sabbaticals wouldn’t work for? * [16:24] People will refuse to take into account what they spend
What defines a sabbatical? I often ask my clients to take a couple of weeks off of work before retirement to explore what they will be doing when they retire. I liken this exercise to a practice round of retirement. A sabbatical can be a similar experience, but it goes even deeper. The time frame of a sabbatical isn’t strictly defined and can extend anywhere from 2 weeks to 2 months or more. The biggest difference between a sabbatical and a vacation is that a sabbatical is more of a change in mindset.
How is a sabbatical different from a vacation? Paul explains that vacations are packed full of activities, much like a workweek. People try to pack as much into a vacation as possible. However, a sabbatical is like taking a vacation without ever going into vacation mode. To try out a sabbatical, Paul suggests staying at an Airbnb and simply living there. Cook your meals rather than eating out, shop locally, and simply bike or walk around your new surroundings. Try to discover a state of non-doing. This can be challenging and can even become uncomfortable for many people. The result of this contemplative state is self-realization and a newfound curiosity.
How can we use the curiosity that emerges from a sabbatical to explore retirement plans? Taking a sabbatical can completely change your way of thinking and may even disrupt your plans for retirement. We have worked so hard our entire lives for a future payoff, so it can be hard to stop delaying gratification. By taking a sabbatical, it allows people to take the time to explore the work and hobbies that inspire their passion. In doing so, people can get a better understanding of the ways that they can spend their time in retirement.
A sabbatical can prepare you for retirement If you have been working your way towards burnout, perpetually delaying gratification, or even if you simply need a retirement trial run, you may want to try taking a sabbatical. Listen to this interview with Paul Millerd to hear how a sabbatical can provide you with a shift in mindset and truly prepare you for retirement.
Connect with Paul Millerd * The Case for Sabbaticals * Think-Boundless.com
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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We’ve all been sitting at home for the past year and now everyone is getting the travel bug. That’s why today we’re kicking off the Summer Travel Series with an interview with Lee Huffman. Lee hosts a podcast called We Travel There and he writes a frugal travel blog at BaldThoughts.com. I’ve been curious about the world of travel hacking, so I have plenty of questions for Lee about using travel points, how to find the best travel resources, and, of course, where to travel. Check out this interview to help you plan your summer vacation.
Outline of This Episode * [1:32] Where should we get started? * [5:45] What should one look for in travel points? * [11:02] How saving miles and points are like saving for retirement * [13:00] The go-to resources to use * [17:53] Places to check out
How should we all get started traveling again? The pandemic has left many of us homebound for over a year, so now that many people are fully vaccinated, everyone is ready to get on the road again. The big question is: how should we get started?
Lee recommends using the travel credits that you may have accrued from canceled vacations over the pandemic. Those credits and vouchers may have expiration dates, so be sure to check the fine print to ensure that you don’t lose out.
He also suggests getting your summer trips booked ASAP. The sooner you book, the sooner you’ll be able to find reward availability and lower prices. The more people begin traveling the higher the prices will rise.
What about international travel? Travel within the U.S. is on the rise, but people are also itching to travel internationally. Since the vaccine rollout has been different in each country, it is important to carefully investigate the specific travel rules for the country you wish to go to. Each country has its own pandemic rules and regulations. Some countries require negative Covid tests upon arrival and others may require you to be fully vaccinated. It is also important to remember that if you travel internationally, you will need a negative Covid test to enter the U.S. again, regardless of your vaccination status. Listen in to hear how many hotels in Mexico are helping travelers with this requirement.
What are the best ways to earn points? You can earn travel points and rewards even when you are not traveling by using a credit card. Lee recommends the Capital One Venture Rewards card to get started. You can get cash back or earn extra miles with each purchase that you make. Listen in to hear how you can get started with the Capital One Venture rewards program to start traveling this summer.
Lee compares saving miles and points with saving for retirement. He states that the two best days to start saving your miles are 10 years ago and today. He also mentions the importance of using your miles periodically. You don’t want them to become devalued over the years.
How to use your travel miles There are more ways you can earn travel miles than just making purchases. There are apps that you can use like Dosh to help you earn extra miles on each transaction.
If you have had a travel rewards card for years but find it difficult to use, you won’t want to miss this interview with Lee Huffman as he explains how you can best use your hard-earned miles. He not only mentions how to use your miles, but he also includes fantastic resources that you can check out to help you find availability so that you can actually use the points that you have accrued.
Make sure to check out Lee’s podcast, We Travel There, to get inspiration for your next travel destination. He interviews locals to help his listeners understand how to get there, where to go, what to do, how to get around, and where to stay.
Resources & People Mentioned * Dosh rewards app * Juicy Miles - app for redeeming rewards. * Capital One Venture Rewards card * Frugal Travel Facebook Group with Holly Johnson
Connect with Lee Huffman * BaldThoughts.com * WeTravelThere.com
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Nobody wants to think about becoming a widow or widower, but unfortunately, if you are married, there is a 50/50 chance that you could. In addition to the crushing grief that comes with losing a spouse, there are many details to take care of in that first year alone. This is why I want to share an article with you from NextAvenue.org.
The article, written by Anna Byrne, outlines 7 steps that you can take to help manage that first year on your own. Anna was only 28 years old when she lost her husband, so she has firsthand experience with this overwhelming stage of life. Her professional estate planning experience also lends practical tips to the article. Don’t miss this episode so that you know what you can do to help keep your head above water during that first year alone.
Outline of This Episode * [2:22] 7 steps to take to manage the first year of widowhood * [8:34] My top 2 tips for a new widow or widower * [10:26] A question on the ACA subsidy under the American Rescue Plan
7 steps to manage the first year of widowhood There’s no doubt that losing a spouse will cause overwhelming grief, but on top of that, there is so much to do in the wake of this personal tragedy. To help you wrap your head around all that there is to do, Anna Byrne from NextAvenue.org came up with 7 steps to help you through this challenging time.
Step 1 - Take care of immediate things. The small steps matter early on. You’ll need to notify family members and advisors right away. You’ll also need to make decisions about organ donation and funeral arrangements. Lean on family and friends if possible.
Step 2 - Find and organize key documents. Whether you want it or not, you are now in control of all aspects of your finances. You’ll need to find and organize important documents. Make sure to call your estate planning attorney if you used one since they will have the original will in their office. They will also have useful information to guide you through this process.
Step 3 - Take inventory of your financial situation. This is a good time to take inventory of your assets. You’ll want to create a list of all assets and debts owed by you and your partner. A good place to start is by looking at your tax returns since they detail itemized income and list the financial institutions. Look for bank accounts, retirement accounts, pensions, life insurance, real estate deeds, and Social Security information.
Step 4 - Pull the pieces together. Every state has different laws and procedures regarding wills and probate. Familiarize yourself with the probate process in your state. You’ll also want to have a good understanding of the value of your spouse’s assets at the time of death since this is how estate taxes are calculated.
Step 5 - Build a team of trusted advisors. Having a financial and legal advisor that you can count on will help you navigate this process and avoid difficulties down the road.
Step 6 - Plan for your immediate future. Create a new household budget and develop your own financial and retirement objectives.
Step 7 - Plan things for your loved ones. Now it’s time to get your own affairs in order. This is a good time to update your will, power of attorney, and health care directive. Update your beneficiaries and create trusts as needed.
Listen in to hear my own top two tips for a recent widow or widower. Stick around for the listener questions as Linda asks about the ACA subsidy under the American Rescue Plan.
Don’t miss our summer travel series! Over the course of the summer, we’ll sprinkle in travel episodes among the usual retirement planning content. When I was working with my clients for their May tax planning, the number one non-tax-related topic on their minds was travel. Everyone is excited to start traveling again. This is why I’ve been reaching out to folks in the travel blogging space, so we can all learn tips and tricks to make the most out of travel. If you are looking for travel hacks, rewards programs, and budget travel make sure to tune in this summer.
Resources & People Mentioned * Next Avenue article on widowhood * Estate Tax Law article from Next Avenue * Advisor Perspectives article on health insurance under the ARP * Healthcare.Gov - Find local help
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Do you consider being rich and being wealthy the same thing? In the book by Morgan Housel, The Psychology of Money, the author argues that these words mean two different things. In this episode of Retirement Starts Today, we’ll explore the difference between rich and wealthy as well as the connotation of the word money.
Outline of This Episode * [1:42] A review of the psychology of money * [4:30] The difference between being rich and wealthy * [6:13] How to declutter the filing cabinet
Thank you for 1 million downloads I want to thank you all for helping me hit an exciting podcasting milestone. In May of this year (2021), we hit 1 million lifetime downloads. Wow! When I started this podcast several years ago I was thrilled to reach 100 listeners a month, so this kind of reach boggles my mind. Thank you for joining me on this journey.
To celebrate this milestone, I have an extra heaping helping of retirement headlines today. Both articles hail from the Wall Street Journal. The first article, written by Jason Zwieg, is a review of the book, The Psychology of Money, by Morgan Housel and it explores the different mentalities of the rich and the wealthy. The second article will reveal the best way to declutter your filing cabinet.
The Psychology of Money Have you ever thought about what money really is? Money is more than a way to show the value of things. Money is also a carrier of emotion, ego, hopes, fears, dreams, heartbreak, confidence, envy, surprise, and regret. There is so much of ourselves that we wrap up in the concept of money.
This is one of the central arguments in Morgan Housel’s new book, The Psychology of Money. The author juxtaposes two stories of two different men with two very different outlooks on money, and in doing so, he reveals that great fortunes can be built from old-fashioned values like delayed gratification.
Have you ever thought of money from a values perspective?
What is the difference between being rich and being wealthy? Housel explores the differences between those who are rich and those who are wealthy in his book. He describes being rich as having a high current income and being wealthy is having the freedom to choose not to spend money. He explains that many rich people aren’t wealthy because they spend much of their high income to show others how rich they are.
How the difference between rich and wealthy can figure into retirement “The ability to do what you want, when you want, with whom you want, for as long as you want pays the highest dividend that exists in finance.” This is what many people are looking for in retirement. Most people think of retirement as a time when you stop working, however, retirement could mean, “the ability to do what you want, when you want, with whom you want, for as long as you want.”
What are you looking for in retirement? Are you ready to give up working completely or do you simply want more freedom and flexibility?
Resources & People Mentioned * BOOK - The Psychology of Money by Morgan Housel * Wall Street Journal article - The Difference Between Being Rich and Being Wealthy * Wall Street Journal article - Declutter the Filing Cabinet * H&R Block - My Block * Intuit’s Turbo Tax * Jackson Hewitt * Fireproof Document Bag * External Hard Drive * Adobe Scanning App * Microsoft Lens
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Are you one of the many that are being held back from early retirement by the exorbitant cost of health insurance? If so, you won't want to miss this episode. This week’s retirement headline comes from Carolyn McClanahan at AdvisorPerspectives.com and it outlines the enhanced health insurance subsidies that stem from the American Rescue Plan (ARP).
You’ll want to stick around for the listener questions segment if you are a fan of retirement podcasts. I have a treat for you all as I crowdsource the answer to John’s question about asset location. Listen in to hear 4 different answers from voices that you may recognize.
Outline of This Episode * [2:12] Could the American Rescue Plan be the answer to your health care before Medicare question? * [5:05] What do you need to do to act? * [8:49] An asset location question from John * [10:01] Peter Lazaroff’s answer * [12:02] Roger Whitney’s answer * [15:45] Taylor Schulte answer * [18:44] Chad Smith’s answer
Could the ARP be the answer to your health care before Medicare question? The number one issue that holds back potential retirees from retiring early is how to find affordable health care before Medicare. If this sounds like you, then the American Rescue Plan may have the solution that you have been waiting for. Carolyn McClanahan's article is geared toward financial advisors, but we’ll take a look at it and see if the ARP could help you solve this common problem.
How can the ARP help lower the cost of health insurance? With the ARP, you may now be eligible for enhanced health insurance subsidies. The Affordable Care Act (ACA) subsidies have been limited to those with a modified adjusted gross income (MAGI) of less than 400% of the poverty level. However, the ARP has lifted these levels with a credit that is based on the cost of the second-cheapest silver plan available in any person’s given area. Unlike the previous credit under the ACA, it isn’t suddenly wiped out when someone’s income jumps over the income limit. Instead, it is phased out gradually.
What do you need to do to qualify? To qualify, you must purchase your health insurance via www.healthcare.gov. The open enrollment period lasts through August 15, and the tax credits apply only for the months a person is using a plan from the ACA. Therefore, the sooner you apply, the more savings you will receive.
Additionally, anyone who has received even one week of unemployment benefits in 2021 and is without access to affordable insurance through a family member will qualify for a silver plan at no premium cost. They also will qualify for cost-sharing subsidies to help lower their deductible.
You can utilize the calculators at www.healthcare.gov or the Kaiser Family Foundation to determine your tax credit amount. States that have opted out of the healthcare marketplace may operate differently, so you’ll want to work with a local health insurance agent to help you navigate the process.
The ARP also offers COBRA subsidies If you lose employer-based coverage due to job loss or reduction in hours, the ARP provides COBRA premium subsidies from April 1 to September 30, 2021. After that, you can continue coverage at full cost. It is important for you to weigh whether you should accept this benefit or choose an exchange-based plan. Will take advantage of the benefits offered in the ARP to retire early?
Resources & People Mentioned * Article from AdvisorPerspectives.com * www.healthcare.gov * Kaiser Family Foundation * IRS Coronavirus Tax Relief * Retirement Podcast Network * BOOK - Making Money Simple by Peter Lazaroff * PODCAST - The Retirement Answer Man with Roger Whitney * PODCAST - Stay Wealthy with Taylor Schulte * PODCAST - Financial Symmetry with Chad Smith
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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I’m sure you’ve all heard about the 4% rule for retirement planning. This rule is great for speculating your likelihood of success, but it isn’t always the best rule to follow in practice.
Druce Vertes at AdvisorPerspecives.com offers a different approach to implementing the original 4% Rule. On this episode of Retirement Starts Today, we’ll dive into his technical article which explores the idea of making the normally rigid 4% rule more flexible to maximize spending for different levels of risk aversion.
I’m always looking for innovative ways to help you turn your retirement portfolio into income and that’s exactly what we’re exploring this week. Tune in to hear how to tweak the 4% rule and maximize your spending in retirement.
Outline of This Episode * [2:52] Infinite risk aversion * [9:04] Constant relative risk aversion * [14:06] Thoughts on 401K rollovers
What exactly is the 4% rule? The original 4% rule was theorized by Bill Bengen in the 1990s. This rule is handy for napkin math but doesn’t allow much flexibility and it may be overly cautious.
The 4% rule states that you can invest an equal amount in stocks and bonds and withdraw 4% of your starting portfolio during each year of retirement. As long as you adjust for inflation each year, you would never exhaust your money over the course of a 30-year retirement. Have you used the 4% rule to help you calculate the likelihood of financial success of your retirement?
How can one make the 4% rule more flexible? Our retirement headline this week is titled Beyond the 4% Rule: Flexible Withdrawal Strategies Using Certainty-Equivalent Spending. It examines what would happen if we explored options beyond Bengen’s 4% rule. It asks, what flexible rules would maximize spending for different levels of risk aversion? The author used the programming language Python to maximize certainty-equivalent spending. This led him to three generalized rules based on one’s risk tolerance.
3 rules for 3 separate risk tolerance categories For those that are completely risk-averse, Bengen's 4% rule is the safest bet. The fixed constant withdrawal level never experiences a shortfall or reduction in withdrawals.
The next category is for those who don't mind plenty of risk in their portfolio. This is why this rule is not recommended for most people. It finds the withdrawal amount that historically maximized spending irrespective of market volatility. This risk-neutral category is for those that can tolerate reductions in spending or shortfalls in some years as long as they are offset by gains in other years.
For those that fall somewhere in between the two ends of the risk tolerance spectrum, different rules apply which trade off higher mean withdrawals against the risk of lower withdrawals.
Using some of these rules, a retiree could achieve more than the 4% expected withdrawal rate. All of these models are simplifications, but they are useful and allow you to visualize the choices between different rules that have varying levels of risk tolerance.
Visualize your retirement spending The author strived to create a simple model to help people understand strategies that may improve on a fixed withdrawal at varying levels of risk aversion. You can test out the different rules by using this online tool which allows you to try out and visualize each one.
It’s always refreshing to learn about new ways to live off your retirement savings. Vertes’ idea splits the difference between the 4% rule and a dynamic distribution plan. This hybrid plan would allow for higher spending in good markets and a scientific way to gradually reduce portfolio withdrawals when the market dips.
Listen in to hear how each of these rules could play out with concrete examples using actual numbers. You’ll also hear Joe’s question regarding multiple 401Ks.
Resources & People Mentioned * Advisor Perspectives article * Python programming language * Online tool to help visualize the different rules
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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As you prepare yourself for retirement, you probably have a vision of your retired self traveling, spending more time on your hobbies, or with loved ones. Retirement will give you time for all that and more.
I read an article recently that describes the 6 phases of retirement. I had never defined it that way before, but this was an interesting way to delineate a natural progression of this time period. Press play to learn what these 6 phases are.
Outline of This Episode * [1:42] There are 6 identifiable phases in retirement * [4:25] If you retire mid-year, is it better to reduce pretax and post-tax deductions? * [7:06] What should we do if our RMD rules violate our safe spending rules? * [11:04] What about using the 4% rule?
The natural progression of retirement Have you ever thought about the natural phases of retirement? This week’s retirement headline is written by Andy Millard from AndyTheAdvisor.com. In the article, Andy mentions that much like the 5 stages of grief, retirement can also be broken into 6 identifiable phases. These stages don’t take the same amount of time and can vary from person to person.
- Honeymoon - This is likely the most active phase of retirement and probably the one you have been looking forward to the most. People are likely to use their newfound freedom to pursue hobbies, take trips and classes, and do home improvement projects. This stage will get you out and about in the world.
- Rest and relaxation - After enjoying the hustle and bustle of the honeymoon phase you may be ready to settle down a bit. This is the time to sit back and relax into the new slower-paced lifestyle. This stage may also bring on some introspection. You may reflect on a life well lived and think about what brought you to this point.
- Disenchantment - During this phase, people begin to realize that the changes they’ve made to their routines are permanent. You may begin wondering about your purpose in this part of your life. This can be an emotional time period for many and consist of both physical and mental adjustments to a new way of life, whether it be a change in spending habits, a move to a new community, or changes to health.
- Reorientation - Hopefully the disenchantment won’t last long and you can quickly move onto the reorientation phase. This is a time when people begin to adjust to retirement and realize that there’s still more living ahead of them. Some examples of things that happen during this period are new marriages, learning new artistic disciplines, or finding new interests and hobbies.
- Retirement routine - This stage is inevitable since humans find comfort in and crave routine. Whether it be club meetings, volunteering at your favorite charity, or a weekly coffee chat with friends, your new reality becomes your new normal.
- Termination - Unfortunately, at some point, retirement will end for everyone. This is--hopefully--a peaceful phase where people reflect on their life’s journey, their accomplishments, and whatever the next season holds.
Do you recognize these phases? Have you noticed them from your parents or older friends’ retirements? What are you most looking forward to in retirement?
Check out the newsletter for more links and retirement learning opportunities Be sure to listen until the end of this episode to hear what to do if RMD rules violate your safe spending guidelines. I’ll also include links to the Guyton-Klinger rules in the Every Day Is Saturday newsletter. Head on over to www.retirementstartstodayradio.com/newsletter to sign up if you aren’t on the mailing list. The newsletter focuses on sending out relevant retirement information to educate you on your next phase of life.
Resources & People Mentioned * AndyTheAdvisor.com - The 6 Phases of Retirement * The Financial Ghost - Guyton Klinger Rules * Decision Rules and Maximum Withdrawal rates the original Guyton-Klinger article * RMD tables
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Have you ever considered going back to school? Early retirement can be a fantastic time to explore new learning opportunities.
In this episode of Retirement Starts Today, we’ll take a look at a Market Watch article that describes the burgeoning culture of adult learning for those at or near retirement age. We’ll continue by exploring many higher education programs across the United States that are aimed at people aged 50 and above.
Make sure to stick around for the listener questions segment where I answer a question about using home equity as long-term care insurance. You’ll hear my opinion on the matter and learn how much home equity you may need to make this strategy work.
Outline of This Episode * [1:36] It’s time to rebalance * [4:22] Have you considered taking an adult gap year? * [8:32] Real-world examples of retirement age students * [12:51] Using your home’s equity as long term care insurance * [17:19] How much home equity would you need?
It’s time to rebalance We all know that the market has had an incredible run this past year. Many people’s portfolios are up 30%. When you’re seeing these kinds of returns it can be especially difficult to take those earnings and put them into the calmer side of your portfolio, but as you approach retirement it’s a good time to edge closer to a 60-40 split.
If you are within a year or two of retirement, you should know where your first few years of retirement income are coming from. That means that this is the time to be prudent and squirrel away some of those profits in any boring type of account so that you can fund the first few years of your retirement without worrying about the ups and downs of the markets.
Now is the time to take a gap year If you have ever had the inkling of going back to school early retirement is a great time to start. Many people are turning to higher education as a way to find fulfillment after long and successful careers.
The rise of Covid and the ease of learning through technology are augmenting this trend. The pandemic has caused stagnant enrollment rates in many colleges around the country. This has led those institutions to find new ways to make money. Many universities are turning to alternative programs and continuing education as a way to reach a broader audience.
What kinds of learning opportunities are out there? There are learning opportunities offered through many different types of programs at different universities, private subscription programs, and even free online programs.
These are a few of the programs are offered by different universities:
- UT Tower Fellows Program
- Encore!Connecticut
- Duke Lifelong University
- Stanford University’s Distinguished Career Institute
- The University of Virginia
You don’t have to turn to a university to continue your education. There are many types of subscription learning programs available as well.
- Osher Lifelong Learning Institutes
- One Day University
- GetSetUp
- Oasis Everywhere
If you don’t want to invest any money into continuing your education you can take advantage of free or low-cost programs through these websites:
- Coursera
- EdX
- The Great Courses
- LinkedIn Learning
- MasterClass
- Skillshare
- TED Talks
- Udemy
Learning is easier than ever before There are so many amazing educational opportunities to enjoy. The pandemic has caused a giant leap forward in virtual learning. With modern technology, you can learn anything at any time from any place. Since people are living longer, retirement can last for 30 years or more. This leaves plenty of time for an encore. So, if you ever had the notion to go back to school to either pursue your options for a second act or simply to explore new educational opportunities, the world is your oyster. Have you ever considered going back to school? What would you want to study?
Resources & People Mentioned * Market Watch Gap Year article * Daily Table * Rusalia Resource Foundation * UT Tower Fellows Program * Encore!Connecticut * Duke Lifelong University * Osher Lifelong Learning Institutes * One Day University * Coursera * EdX * The Great Courses * LinkedIn Learning * MasterClass * Skillshare * TED Talks * Udemy * Oasis Everywhere * GetSetUp * OperaNuts * Senior Planet * Stanford University’s Distinguished Career Institute
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Since 2020 was the year of working from home, you may be wondering how you can deduct your home office expenses from your taxes now that tax time is upon us. For this reason, we explore an article written by Jeffrey Levine at Kitces.com. Learn the home office deduction rules and discover if they will apply to your situation.
Outline of This Episode * [2:12] The specifics of the home office deduction * [9:19] How to calculate the home office deduction * [11:55] Should he open an additional IRA?
Who is eligible for the home office deduction? Many small business owners can claim a home office deduction as a tax break. However, not every person working from home can claim this deduction. For instance, the deduction is not accessible for employees who work from their own home offices. People owning partnership interests, on the other hand, are potentially eligible for this deduction. There are specific rules that need to be followed in order to determine whether your home office qualifies.
What are the rules to claim the home office deduction? In order to claim the home office deduction, there are requirements that must be met.
The home office must pass the exclusive use test. This test dictates that in order to claim a home office deduction, the portion of the home that is deemed the home office must be used entirely for business purposes.
Something that limits a person’s ability to claim a home office deduction, but not necessarily eliminates it, is the ability to claim a separately identifiable space within their home that is used exclusively for business purposes.
Another stipulation of a home office deduction is the regular use requirement. Occasional office use is not enough, even if the business is the only use for that particular space. It must be used regularly in order to qualify for the home office deduction.
Another requirement is that the home office must be considered the taxpayer’s principal place of business for a particular business activity. This means that this is the space where the majority of business is done. Deciding on this can be tricky if you have a home office as well as one in an office building. When deciding on a principal place of business, individuals should consider both the amount of time they spend at their various business locations, as well as the relative importance of the tasks performed at each location.
Because of the pandemic, many have had to shift work that they typically did in an office building to spaces in their homes. For the year 2020, people in this situation may be able to claim a home office deduction.
How to calculate the home office deduction There are two ways that you can calculate the home office deduction. The regular method will calculate the actual expenses of using your home office space. The simplified method will calculate the square footage of your home office and multiply it by $5. The maximum deduction using the simplified method is $1500.
If you are considering using the home office deduction it is important to work with your tax professional to ensure that you are within the detailed guidelines. Make sure to click on through to the article to learn all the details about claiming the home office deduction.
Resources & People Mentioned * Kitces article on home office deduction
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If 2020 has taught us anything it is that the future is not always certain. This has brought about feelings of insecurity and anxiety in some people. That’s why this week, I share an article from Harvard Business Review which describes how people can use micro-planning and biomimicry to combat feelings of uncertainty brought on by this post-pandemic world.
After the retirement headlines, I’ll answer two listener questions. John asks about maxing out his HSA after 50 and Val is trying to decide between a pension and a lump sum payment. Don’t miss out on the latest episode of Retirement Starts Today; press play now!
Outline of This Episode * [1:22] How to plan your life when the future is foggy * [3:19] The six steps to learn from biomimicry * [7:35] How much can a person contribute to an HSA when they are over 50? * [9:28] Should Val take a lump sum or an annuity?
Micro-planning can help you take command of your life again Did Covid-19 toss your 5-year plan out the window? Many of us have had our future plans shaken up due to the effects of the pandemic. The lack of control that the long-term insecurity creates can bring about feelings of unease.
One way to take back control of your life is by harnessing the power of adaptability through micro-planning. Micro-planning is a way to take a larger plan and break it down into yearly, quarterly, monthly, weekly, and daily check-in practices.
Biomimicry is the inspiration behind micro-planning In tumultuous times, micro-planning is more manageable than big-picture planning, and it offers the sense of power and stability that we need. The idea behind micro-planning is based on biomimicry, a practice that learns from and mimics the strategies found in nature to solve human challenges. Biomimicry uses nature as a model to imitate or use as inspiration for designs or processes with the goal of solving human problems.
Six steps you can follow to feel more in control of your future Prolonged stress can cause us to function at less than optimal levels, so it is important to mitigate stress when we can. These six elements of micro-planning can help us manage this stress, function at higher levels, and give us a sense that we are taking back control of our lives.
- Set a purpose - Identify the common thread that connects the different roles you have had. What do they have in common? Think about the most fulfilling career experiences you’ve had to date and notice their commonalities.
- Plan your year - Make a plan for the year that aligns with your purpose and identifies between one to three focus areas of desired growth. Keep the list of focus areas short in order to promote a better chance of success.
- Plan by quarters - At the beginning of each quarter, reassess your successes and failures and set goals for the next quarter. Be careful to choose no more than five to keep the list manageable. You may want to shift your plan at this stage based on your reflections on the previous quarter.
- Break the quarters into months - Each month break your goals for the quarter down into specific projects, and then break the projects down into even more specific and manageable phases.
- Create weekly lists - At the start of the week, create a weekly to-do list, making sure to plan time for movement, sleep, time outside, hydration, and healthy food. Doing this makes sure that you are physically and mentally caring for yourself in support of your intellectual goals.
- Make use of your days - Use a journal to track your energy on a daily basis. Doing this gives you powerful information as to how to optimize your workflow and helps make annual planning more mindful. Make sure to note daily what you are grateful for, as well. Journaling in this way gives you an immense sense of control, which has been proven to shrink the amount of time it takes to get tasks done.
What have you been doing to help you feel more in control during the pandemic? Try implementing these steps to take command of your future. Make sure to press play to hear the details of how you can use micro-planning to improve your life.
Resources & People Mentioned * Harvard Business Review article * Kiplinger’s article on HSAs
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Are you signed up for the My Social Security account from the Social Security Administration? In this episode, we’ll review a Kitces.com article written by Jeffrey Levine about this important resource. We’ll review the history of My Social Security, how to sign up for it, how its benefit calculations account for inflation, and how Americans can interpret its information in order to understand their social security benefits. Don’t miss this excellent opportunity to review a very important topic. Press play to listen.
Outline of This Episode * [2:28] How to access your My Social Security account * [5:22] What can you do with your My Social Security account? * [10:04] A question about my podcast host * [11:28] Rusty needs to create about $50,000 of income each year - how should he do it?
Background information on My Social Security From 1990 to 2011, the Social Security Administration mailed paper copies of Social Security statements to most American workers. These statements summarized their personalized retirement and disability benefits. However, budget cuts in 2011 paused these mailings, and now workers under age 60 no longer receive mailed statements at all. The only workers to receive Social Security statements by mail are those who were both 60 or older in 2017 and had not yet registered for an online SSA account.
How to access your My Social Security account The primary way Americans can access their annual Social Security statements is online via their My Social Security account. To set up a My Social Security account users will be required to provide some basic information on an online form. This information includes first and last name as shown on their Social Security card, Social Security number, date of birth, home address, and email address.
After filling out the form, individuals will be required to complete an identity verification process. They can either verify their identity using their smartphone to photo-capture their state-issued ID card, or they can type in their information into the online form. The second method of verification uses financial information such as credit card information, Social Security benefit amount information, a Form W-2 Wage and Tax Statement, or a Schedule SE from their most recent Form 1040.
What can you do with your My Social Security account? Once you have set up your My Social Security account and can see your Social Security statements you should do a few things.
- Verify your reported work history.
- Review the current estimates of your anticipated Social Security benefits.
- Explore how the benefits align with your retirement income needs.
In the Social Security statements, there are three pages of important information, but most people are concerned with the information on pages two and three. Page two has a summary of your estimated retirement, disability, family survivors, and Medicare benefits. Page three of the statement lists earnings on file for each year from the time an individual began working. Listen in to hear why you should carefully check the income information from the past years.
Get your My Social Security account set up to begin your retirement planning Have you set up your My Social Security account yet? This is a great first step to get you on your way to creating your retirement plan. Make sure to listen to the listener questions segment to hear ways to create income in retirement.
Resources & People Mentioned * Kitces article * My Social Security
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Despite the economic downturn, 2020 turned out to be a fantastic year for charitable giving. In this episode, we’ll look at how people chose to give and you’ll learn about the efficiency of giving through donor-advised funds (DAFs).
In the listener questions segment, you’ll learn how to survive a bear market in retirement. We’ll investigate the length of the average bear market and see how you can prepare for the worst in your retirement years.
Outline of This Episode * [1:42] 2020 was a banner year for giving * [4:48] Planning ahead can help alleviate a hefty tax bill * [10:49] What is the average length of recovery from a bear market? * [17:04] Look into Guyten’s Guardrails
Shwab and Fidelity both showed an increase in giving You would think that with the economic downturn of the last year that people would tighten their bootstraps and cease giving to charities, but it turned out that the opposite was true. The two largest brokerage firms, Schwab and Fidelity, recorded increases in charitable donations.
Donations were made in response to the Covid pandemic and the social justice protests that marked the year. The biggest recipients of these charitable gifts were organizations that provide food and other necessities
Donor-advised funds are an important vehicle for charitable giving Fidelity Charitable and Schwab Charitable both use donor-advised funds as a vehicle for charitable giving. Donor-advised funds (DAFs) have become popular since they are simple and make for an easy way to give strategically. These charitable investment accounts allow a donor to make a charitable contribution, receive a tax deduction, and then distribute the money over time. Have you thought of changing the way that you make charitable contributions?
What are the benefits of using DAFs? DAFs have become more popular in recent years due to changes in tax laws. The new standard deduction for charitable giving increased to $24,800 for a married couple. By creating a DAF, donors can contribute a lump sum every few years and then administer the funds to the charities they choose over time. Many advisors recommend donor-advised funds as a receptacle for their clients to strategically deduct charitable contributions. Listen in to hear a real-world example of how a DAF can be used.
Planning ahead can create a tax deduction We must all pay our taxes, but we never want to overpay -- no one wants to leave the taxman a tip. If you are charitably minded, a donor-advised fund is an excellent way to implement a multi-year tax strategy and take advantage of the standard deduction. Think about how lump sum giving every few years could change your tax situation. It pays to plan your taxes ahead in retirement.
Resources & People Mentioned * Investment News article on charitable giving * Guyton’s Rules for Withdrawal Rates * Guyton’s Guardrails are discussed in - Episode 181, Episode 153, Episode 149, Episode 93
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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If you’ve been working from home over the past year you may wonder why you feel even more exhausted than normal. This could be due to Zoom Fatigue.
In this episode, we’ll explore an article from CNBC that references a Stanford study about this phenomenon. In the listener questions segment, I’ll answer questions about RMDs and Roth conversions. Let’s get to the bottom of your exhaustion--press play now.
Outline of This Episode * [1:22] Zoom fatigue affects people on a psychological level * [3:26] Solutions for Zoom fatigue * [6:17] Future tax rates and RMDs * [10:44] How to pay for Roth conversions?
Why are we so exhausted after video conferencing? Over the past year, many of us have been using Zoom and other video conferencing applications to replace in-person meetings. The constant video conferencing has led to increased fatigue at the end of the day and a researcher with Stanford University wondered why. Jeremy Bailenson researched this issue and recently published a paper about how video conferencing affects people on a psychological level.
4 reasons for Zoom fatigue Jeremy concluded that there are four different contributors to Zoom Fatigue:
- The extended level of eye contact is unnatural. The screen causes us to look at each other for an extended period of time. In a face-to-face meeting, we wouldn’t be behaving in such a way.
- Non-verbal signals during video conferences require more effort than in-person meetings. During in-person meetings, our nonverbal cues happen quite naturally and without any effort. However, we have to exaggerate our non-verbal communication in a video chat which requires more thought and increases our cognitive load
- Watching yourself in the little box on the screen for prolonged periods is unnatural and causes self-critique.
- Being forced to sit still in one place for long is exhausting. Since we are on camera we have little room to move around naturally.
Ways to battle Zoom fatigue To alleviate these issues, Bailenson has the following tips:
- Hide self-view.
- Shrink the participant’s video window to make other people a bit smaller.
- Spend some time adjusting your setup ahead of an important meeting.
- Turn off your camera and take a five-minute audio-only break during a long meeting.
- Set cultural norms in your workplace that it’s OK to turn off the camera sometimes.
Zoom fatigue is a new version of burnout that is important to mitigate. You want to retire when you are ready rather than because you are feeling burnt out due to video conferencing. Try using these tips to help you combat the exhaustion you feel after video conferencing.
Resources & People Mentioned * CNBC article - Zoom Fatigue and How to Fix It * A 15 question scale for evaluating Zoom fatigue * You can participate in the study on Zoom Fatigue
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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You have fraud protection on your bank accounts and your credit cards, but what about your retirement accounts? Today we’ll explore an article from the Wall Street Journal outlining a case of cyber fraud in a 401K account. We’ll also discuss ways for people to safeguard their savings.
In the listener questions segment, I’ll answer a question about buying an RV in retirement and we’ll wrap up this episode with a question from Hal about whether to make Roth conversions or pay off the mortgage. Press play to get started on this episode of Retirement Starts Today.
Outline of This Episode * [1:22] Retirement accounts are not offered the same protections as 401K accounts * [3:04] Steps you can take to protect yourself from cyber fraud * [6:20] John asks whether to get a loan for his RV or use his retirement account * [12:36] Hal asks, Roth conversions or pay off the mortgage?
Retirement accounts are not offered the same protections as 401K accounts Our retirement headline this week is titled Retirement Planning Gives Bigger Role to Theft Prevention as Risks Lurk Online. This article warns us against cyber fraud of retirement accounts. The laws regarding retirement income were enacted well before the internet, so they don’t address who should be responsible for this type of crime. We often have more money saved in our retirement accounts than in our checking accounts, so this kind of theft can be life-changing.
Retirement account cyberfraud is increasing Retirement account cyber fraud used to be typically perpetrated by members of one’s own family, but in the past few years, strangers have played a bigger role in committing these types of crimes.
The article highlights one particular case where the account owners were shocked to discover that ⅔ of their retirement savings had been transferred to an unknown account. The couple then had to postpone their retirement indefinitely.
5 steps you can take to protect yourself from cyberfraud If you don’t want to have this happen to you there are steps you can take to protect yourself from cyber fraud.
- Have an online account. Even if you prefer paper statements, set up online access since unclaimed online accounts are easier for impersonators to set up and control.
- Check in regularly. Check your 401K account along with your email and street addresses monthly. You can also sign up for text alerts that notify you of changes or transactions. Make sure to use multifactor authentication which verifies your identity by sending codes to multiple devices.
- Practice good internet hygiene. Avoid public wi-fi and never click on emails or texts that seek personal information including passwords. Make sure to install software updates regularly.
- Create good passwords. Choose a unique password and keep them confidential. If you use a third-party service to help you remember your financial passwords understand that could be grounds for denying reimbursement of any stolen funds.
- Evaluate the logistics of how you withdraw money from your retirement accounts. Check with your custodian to see what the protocol is for moving money between accounts.
Thieves always want to be ahead of us and the regulators so we have to stay on our toes. Listen in to hear the tips on how you can protect your hard-earned money and retire comfortably. You’ll also hear the answers to 2 relevant listener questions.
Resources & People Mentioned * Retirement Planning Gives Bigger Role to Theft Prevention as Risks Lurk Online * Retirement Answer Man episode 263
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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If you have listened to the news at all lately, you probably know what our Retirement Headlines segment will cover. The American Rescue Plan is all any financial news is talking about these days, so in today’s episode, we’ll explore what you need to know about this recent piece of legislation.
Then in the Listener Questions segment, I answer the question: should having a pension change the way we invest the rest of our portfolio? Press play to find out.
Outline of This Episode * [1:22] Eligibility has been expanded in this new round of stimulus checks * [5:36] What does this mean for you? * [9:22] What wasn’t included in the American Rescue Plan? * [12:10] How to invest if you are in line to receive a pension?
Eligibility for stimulus checks has changed The American Rescue Plan is all over the news lately, but the article that I am referencing is written by Jeffrey Levine from Kitces.com titled The American Rescue Plan Act Of 2021: Tax Credits, Stimulus Checks, And More That Advisors Need To Know!
The most talked-about part of this tax legislation is, of course, the $1400 stimulus checks which will be soon sent to eligible Americans to provide economic relief from the ongoing pandemic.
Not only are the checks more generous, but there are also key eligibility changes from the previous rounds of stimulus checks. Eligibility in this cycle has been expanded from including only children under the age of 17 to include all dependents in the household.
However, just because you got a stimulus check last time does not mean you will receive one this time. The income limitations of this package mean that there is a narrower margin of income eligibility. While the beginning of the phaseout starts at the same level of income, $75,000 for individuals and $150,000 for married couples, it phases out much more quickly. The cap for individuals is $80,000 and couples is $160,000.
What does this mean for you? If your income is close to that income cap and went down this year then you’ll want to file your taxes as soon as you can. However, if you are one of the lucky few whose income rose in 2020 compared to 2019 and are near or above the phaseout range then hold off on filing your income taxes until after you receive your stimulus payment.
What else is in the stimulus package? The stimulus checks weren’t the only thing included in this $1.9 trillion bill. Another significant change included is a significant increase in the child tax credit. This credit has been increased from $2000 to $3000 and $3600 for children under the age of 6.
It is important to note that not everyone with children age 17 and under will qualify to receive the enhanced 2021 child tax credit amount since the phase-out ranges will be at significantly lower income amounts than the standard child tax credit.
Listen in to find out what else was included and what wasn’t included in the American Rescue Plan and stick around to hear the listener question.
Resources & People Mentioned * The American Rescue Plan Act Of 2021 from Kitces.com
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Enrolling in Medicare can be extremely stressful and confusing. There are so many choices to make, there are different rules to follow, and timelines to be met. Additionally, there is so much information out there that it merely adds to the confusion.
On this episode of Retirement Starts Today, I share with you an article written by Joanne Giardini-Russel from Advisor Perspectives entitled, 5 Tips to De-Stress the Entry into Medicare. If you are starting to dive into the Medicare enrollment process you won’t want to miss these 5 tips.
Make sure to stick around for the listener questions segment to hear a question about enrolling in Medicare as an expat as well as whether you should be doing Roth conversions if your income will decrease. You’ll also learn why it has taken me a year to get around to answering some listener questions!
Outline of This Episode * [1:32] 5 Tips to lessen the stress of the entry into Medicare * [6:14] As an expat would it make sense to buy plans G or N now or wait? * [9:43] Should you do Roth conversions now if you will have a decrease in income? * [14:33] Why I haven’t been answering some listener questions
5 tips to ease the Medicare enrollment process If you are approaching age 65 you may have noticed all the literature surrounding Medicare that has come in your mail. Rather than help you answer the questions you have about Medicare, they often add to the confusion. The whole process can be overwhelming, but these 5 tips can help you understand what to do to enroll.
- Don’t automatically enroll in Medicare at age 65 unless you need or want to. Understand that there are situations where you want to enroll and where you don’t want to enroll in Medicare at 65. This is one of the keys to understanding Medicare. If you do want to enroll in Medicare at age 65 you’ll need to understand all the hoops to jump through. If you are drawing your Social Security benefits before age 65 then you will be automatically enrolled in Medicare parts A and B.
- Don’t overwhelm yourself with too much information. You can find thousands of Medicare webinars, workshops, and seminars with a simple web search, but overwhelming yourself with too much information isn’t beneficial. You may even fall prey to businesses that are looking only to serve themselves. A good place to start your Medicare research is with the official Medicare and You Handbook directly from Medicare.
- Understand the 2 paths to Medicare. You’ll want to decide whether to go with a Medigap plan or a Medicare Advantage plan. Learn the differences between the two and think about which one best fits your budget and lifestyle.
- Use technology to take advantage of everything that you can access from the comfort of your home.
- Secure a good Medicare guide. Contact several different agencies and agents before turning 65. Prepare a list of questions for them and make sure to check their Google reviews. When selecting an agent you’ll want to make sure to choose one who will stick with you over time and provide follow-up support.
Key takeaways about signing up for Medicare Try not to get overwhelmed by the Medicare enrollment process. Begin your research before you turn 65, and spend time finding a good agent or agency who will be there to support you over the long haul. Educate yourself with available government resources so that you can make informed decisions.
Check out the Boomer Benefits YouTube channel in April to see me on a 3-part series with Danielle Roberts. Make sure that you are subscribed to the Every Day is Saturday newsletter to receive a direct link when it comes out.
Resources & People Mentioned * 5 Tips to Destress the Entry into Medicare * Medicare and You Handbook * Medigap informational video * Medicare Advantage informational video
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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How long have you been saving for retirement? Are you hesitant to break into your retirement funds and start living it up once you retire?
This week I share two Retirement Headlines articles. The first is called Right-Sizing Retirement and it comes from the Financial Planning Association. In this article, the authors pose an important question: why save for retirement if you're not going to spend it?
We’ll also check out another article from Wharton Magazine entitled The Economics of Living to 100. Is your retirement plan ready for you to live until 100? Listen to this episode to understand how you can best combat the uncertainty that retirement brings.
Outline of This Episode * [1:42] Right-sizing retirement * [6:28] Combat uncertainty with contingency planning * [7:22] What if you live until 100? * [11:50] There is a need for longevity income * [13:39] What is your plan B?
Why are Americans underspending in their first 10 years of retirement? David Blanchett and Warren Cormier recently wrote an article for the Financial Planning Association in which they explore the first 10 years of retirement. What they discovered from the RAND Health and Retirement Study is that early retirees tend to underspend. The authors wanted to find the underlying reasons for why we are seeing this trend in America. This research explores the retirement consumption gap and considers both the wealth available to fund retirement and spending before and after retirement.
There are 2 types of retirees Retirees can be broken down into 2 main categories: those who have saved enough to cover their levels of pre-retirement spending and those who did not. Interestingly, both of these types of retirees tend to underspend in early retirement but for different reasons.
Only 18 percent of households in America have enough wealth to cover their pre-retirement spending during retirement. This tells us that most households will not be able to maintain their pre-retirement lifestyle in retirement because they don’t have enough money.
You may think that only those that don’t have enough saved cut their spending in retirement, however, the data shows that most households that have saved more than enough to fund their lifestyles in retirement also decrease their spending in early retirement.
Why don't well-funded households spend more in retirement? Many well-funded households could increase consumption but don’t. So, why does this group of retirees spend less during early retirement? Potential reasons include the desire to leave a legacy, uncertain medical expenses, or an uncertain life expectancy. There also could be psychological or other reasons not easily discerned from survey data.
Uncertainty leads to spending less The main reason for this lack of spending in the first 10 years of retirement is uncertainty. Does the uncertainty that retirement brings give you pause to live out your retirement fully?
One way to combat this unpredictability is with contingency planning. If you’re listening to a retirement podcast then you probably have a retirement plan, but do you have a plan B? What will you do if life throws a wrench in your plans? Listen in to hear what you can do to combat the uncertainty that retirement brings.
Resources & People Mentioned * Right-Sizing Retirement article * The Economics of Living to 100
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Have you heard of the Monte Carlo retirement projection analysis? It is being used more and more by advisors and even popular retirement planning websites. Today, in the Retirement Headlines segment, I offer some insight on an article from Kitces.com that argues that using the Monte Carlo projection, a 50%probability of success rate is good enough. Then in the listener questions segment, I answer the question: what should you do if you plan on never retiring? Don’t miss out on my 5 step plan for those that plan on never retiring.
Outline of This Episode * [1:32] A 50% probability of success is actually a viable Monte Carlo retirement projection * [7:34] Your retirement plan doesn’t have to be carved in stone * [11:11] What should you do if you plan on never retiring? * [16:00] Steps to follow if you don’t plan to retire
What is the Monte Carlo analysis? The Monte Carlo analysis is increasingly becoming the most common method of conducting retirement projections for clients. I use it in my own practice and many online retirement calculators such as Vanguard and Fidelity use it too. This risk management technique was actually developed by an atomic nuclear scientist in 1940 to analyze the impact of risks of a project and had nothing to do with retirement.
Would you be comfortable with a probability of success under 70% for your retirement? You may hear financial advisors discussing a client’s probability of success to describe their retirement portfolio. Reflecting on your grades in school, you probably aren’t comfortable with anything less than 70% since anything below that would be a failing grade. However, in his article, Derek Tharp argues that a probability of under 70% is still realistic for clients who are willing to make some spending adjustments.
Your retirement plan doesn’t have to be carved in stone Your retirement isn’t static, it’s a constantly changing dynamic picture that should use a dynamic strategy that fits your unique situation and shifting goals. If you are willing to make the needed adjustments on your path to retirement, then when you hear the news that you have a 50% (or even lower) probability of success, don’t panic, you may actually be in better shape than you may realize as long as adjustments are made.
The drawbacks of retirement models The Monte Carlo simulation is a useful planning tool but it has its drawbacks. Like many retirement tools, it doesn’t do a great job of modeling human behavior in retirement. If the markets start dropping most people adjust their spending habits accordingly. Guyton’s Guardrails are a better tool for predicting how people might behave as the markets rise and fall. You can learn more about Guyton’s Guardrails in episodes 153, 149, and 93. Stick around until the end of this episode to hear my 5 step plan for those that never plan to retire.
Resources & People Mentioned * Why 50% Probability Of Success Is Actually A Viable Monte Carlo Retirement Projection * Vanguard Retirement Tools * Fidelity Retirement Tools * Derek Tharp - Conscious Capital * Guyton’s Guardrails are discussed in - Episode 153, Episode 149, Episode 93 * Guyton’s Rules for Withdrawal Rates
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
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Have you wondered why the markets had such an amazing year in 2020 when the economy was a mess and everyone was stuck at home? You aren’t the only one. That’s why in this episode, we’ll look at a New York Times article that examines this question.
We’ll also answer some listener questions directly from our newsletter readers. Dave asks about dividend investing in retirement and Brian asks about how to pivot away from target-date funds after retiring.
Outline of This Episode * [1:22] How data can help us understand the stock market’s response to Covid 19 * [7:50] Is it better to reinvest dividends from stock funds and interest from bond funds in retirement? * [10:30] Should you maintain your assets in a target-date fund after retirement?
Covid brought about even bigger differences between the haves and have nots Recently the New York Times investigated Why Markets Boomed in a Year of Human Misery. This article analyzed the income, spending, and savings levels from March through November of 2020 and during that same time period in 2019. The comparison between these two vastly different years illustrates how policy, markets, and the economy intersect. Ultimately, the article reveals a sharp distinction between the haves and have-nots during the pandemic.
Incomes actually increased in 2020 It may be hard to believe, but the study that the article referenced shows that salaries and wages only fell 0.5% during the nine months of the Covid pandemic. This is due to the fact that the millions of people no longer working were disproportionately in lower-paying service jobs while higher-salary jobs were largely unaffected.
Due to the CARES Act, most households received $1200 stimulus checks. That coupled with an expansion in unemployment insurance programs prevented an income collapse. It turned out that Americans’ cumulative after-tax personal income was actually $1.03 trillion higher from March to November of 2020 than in 2019, an increase of more than 8%.
Americans spent less in 2020 than in 2019 While Americans were earning more in 2020 than in 2019 they ended up spending less. Spending on services like restaurants and travel fell by $575 billion, or nearly 8%. Instead, that money went to spending on durable and non-durable goods. Overall, American spending decreased by $535 billion.
Savings have reached record levels Since Americans were earning more and spending less that meant that savings rates increased dramatically. From March through November 2020, personal savings was $1.56 trillion higher than it was in 2019 -- a rise of 173%! Before the pandemic savings rates were at 7% and spiked to 33.7% in April. This was its highest level on record, dating all the way back to 1959.
These findings are quite unexpected during this time of worldwide crisis. If there is a lesson to be learned here it’s that when the world expects the stock market to zig more often than not it will zag. Remember that the next time the world throws us an economic curveball.
Tune in to find out the answers to our listener questions!
Resources & People Mentioned * New York Times article
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Has the Covid-19 pandemic cut into your vacation plans? It seems like everyone’s travel plans have changed over the past year. But what does that mean for employees and companies? Anne Steele and Chip Cutter examine the effects of Covid-19 and vacation taking in a recent Wall Street Journal article that we’ll look at today.
In addition to our Retirement Headline, I’ll answer two listener questions. One is about Medicare before age 65 and the other about investing in bonds. Grab your favorite listening device and join me to help you get retirement ready.
Outline of This Episode * [1:22] Many people aren’t taking time off right now * [6:10] Will Rich’s wife qualify for Medicare after he retires? * [10:28] Should we own bonds with these low interest rates?
Working too much decreases productivity We have discussed the importance of taking vacations on Retirement Starts Today before. And if you have listened in the past you know that vacations actually increase worker productivity and boost morale. However, this past year, the Covid-19 pandemic has changed most people’s travel plans. Many have decided to postpone taking their vacation days until a time when they can travel more. But with the stress over the pandemic and the changes brought about by working from home, people should be taking time off now more than ever.
Companies are becoming increasingly concerned about employee’s lack of vacation time Whether it is because people feel like they can’t or shouldn’t take vacation time right now, companies are becoming increasingly concerned. However, different companies are taking different approaches to the issue. Some are relaxing their vacation policies and allowing the vacation time to roll over while others are forcing their employees to use the time now to try and fend off burnout. Have you used your vacation time over the past year?
Vacations are even more important in the lead up to retirement As you approach retirement, it is even more important to take those vacation days. The free time that vacation days offer you an opportunity to explore and practice what you will be doing in retirement. If you have postponed your vacation, consider taking a staycation to practice for retirement. Take this time to explore new hobbies and act out what you would do during your retirement.
In retirement, every day is Saturday! Press play now to listen to the Retirement Headlines segment plus get the answers to our listeners’ questions. Have you signed up for the Every Day Is Saturday newsletter yet? If not, what are you waiting for? Follow this link to get the latest in retirement news in your inbox every Thursday morning.
Resources & People Mentioned * Wall Street Journal article - Companies Fret As Vacation Goes Unused * Boomer Benefits YouTube video - Medicare Under 65
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Has the news about the ups and downs in the market lately got you a bit worried? You aren’t the only one. Many people are even thinking about pulling their money out in case there is a market correction. Does this sound like you? If so, you’ll definitely need to listen to this episode.
When you press play you’ll hear what would happen if you only invested at the market peaks, what to do with an inherited IRA, and what the benefits are of an umbrella insurance policy.
Outline of This Episode * [1:25] What if you only invested at market peaks? * [5:21] What to do with an inherited IRA? * [9:00] The benefits of an umbrella insurance policy
What if you only invest at market peaks? Have you ever wondered what would happen if you invested at all the wrong times? Our retirement headline this week is from Ben Carlson who reflects in his widely read 2014 piece, What If You Only Invested at Market Peaks? In his newest article with the same title, Ben introduces a video illustration to turn his story of the world’s worst market timer into a timely cartoon about the rewards of patience and long-term thinking.
Ben responded to the pushback he got from the original article by explaining that while there are risks involved with any investment strategy, the most effective way to combat those risks is with a long-term investment mindset. Long-term thinking will give you the biggest margin of safety when investing.
Are frothy markets making you nervous? The current market volatility has many people looking for an exit strategy. While I share their concern over the rapid growth we have seen over the past several months, this is why we have an investment strategy. Overvalued markets are no reason to deviate from your investment plan.
A properly invested retirement portfolio should already include a contingency plan for a market downturn. If you are worried about the market then now is a good time to consider your investment plan. You may want to dial back your stock exposure back a few percent to help you sleep at night. If you are within a few years of retirement, you should already be close to a retirement income portfolio of about 40-50% in bonds and cash. Are you worried about a market correction?
What to do with an inherited IRA One listener writes about her daughter who inherited a 403B account. She would like to know what the best plan is for this unexpected inheritance. She could either take a lump sum or roll the money into an inherited IRA account which must be withdrawn over a 10 year period.
The answer to this question depends on her income. If she has a high income then she should spread the money over the 10 year period taking about 1/10 each year. If her income is not too high then taking the money now and paying the taxes on it shouldn’t be too much of a burden tax-wise. What would you do with such an inheritance?
Make sure to subscribe to my newsletter If you have any questions for me, want to hear more about retirement planning, or would like to be first in line for free book copies from the authors that I interview, click here to subscribe to my Every Day is Saturday newsletter. This weekly newsletter is delivered every Thursday morning to remind you that every day is Saturday in retirement.
Resources & People Mentioned * What If You Only Invested at Market Peaks? by Ben Carlson * USA Today article on umbrella insurance * Financial Samurai article on umbrella insurance
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter * Follow Ben on Twitter: https://twitter.com/retiremeasap
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Are you setting yourself up for a single-ply retirement? Do you find yourself trying to save money out of habit rather than necessity? Listen to the retirement headlines segment to find out why this may not be the best idea in retirement.
In the listener questions segment, I actually have a listener answer. I asked the subscribers of my Every Day is Saturday newsletter what they were doing to combat Zoom fatigue and Ann replied with a detailed answer. After that, we’ll analyze Social Security claiming strategies and discuss retirement rebalancing strategies.
Outline of This Episode * [2:02] What might it feel like to be frugal by choice rather than by default? * [5:46] What is your strategy to step away from Zoom calls and recharge your batteries? * [8:48] Social Security claiming strategy * [11:42] When is the right time to rebalance?
How would it feel to be frugal by choice rather than by default? Do you find yourself making money-saving decisions out of habit? Are you like Tim Ferriss and who still buys single-ply toilet paper after all his success? Oftentimes our frugality stems from our upbringing rather than from necessity. To kick the default frugality habit, it helps to look at your formative years. Did your parents instill this habit in you or does your frugality serve a purpose? There is a time and a place for frugality, however, automatic frugality isn’t always the smartest choice.
If you are automatically frugal how do you decide where to trim and where to spend? If you are the type of person who is thrifty by default, these decisions can be tough until you realize that survival level spending habits aren’t always the smartest choices.
How do you evolve from scarcity-based decision making to outcome-based decision making? One way to analyze whether your frugality is automatic or purposeful is to define your spending habits. Create an inventory of your spending. What indulgences did you make that were worthy last year? Which extravagances would you repeat? In what areas can you spend money to create more joy in your life? Learn to build a higher-quality life and become frugal by choice rather than by default by listening to this episode of Retirement Starts Today.
What is your strategy to step away from work and recharge your batteries? Over the past year, many of us have become very familiar with working from home. Although working from home allows us more flexibility, studies show we are working more than ever. With so much time spent in front of a screen, we can burn out quickly.
Ann enjoyed the freedom of taking 3 day weekends last year. She has learned to slow down, enjoy her time off, and practice self-care. She also learned to stand up for herself and be intentional about how she takes her vacation time. What can you learn from Ann?
Take time now before you retire to enjoy life If you describe yourself as a workaholic, then now is the time to consider what to do in your downtime. If you want to make the most out of your retirement, you’ll need to become comfortable with having free time. What are you doing to practice self-care and make the most of your downtime?
Listen in to hear all of this plus the effects that claiming Social Security early or late could have on the total benefits between spouses and how to balance your portfolio in retirement.
Resources & People Mentioned * Tim Ferriss * BOOK - The 4 Hour Work Week by Tim Ferriss * BOOK - The 4 Hour Body by Tim Ferriss * BOOK - Tool of Titans by Tim Ferriss
Connect with Benjamin Brandt * In retirement, Every Day Is Saturday, even Thursday! Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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I figured that you all may be a bit sick of hearing the news lately which is why this week’s episode will focus only on listener questions without the Retirement Headlines segment. I’ve got 2 listener questions that will pique your interest.
Chris asks about long term care insurance. What is the difference between hybrid and traditional policies and when can someone self insure? And Janet wants to know about the tax benefits of life insurance to fund your retirement. Don’t miss the answers to these complex questions, press play now!
Outline of This Episode * [1:22] Chris has a long-term care insurance question * [8:33] Consider your home equity as a quasi-long-term care policy * [10:09] Janet is curious as to how life insurance could be used as a tax strategy
Do you even need long term care coverage? The question of how to pay for long term care comes up when creating every retirement plan. It is extremely difficult to plan for long-term care due to the myriad unknowns. Will you even need coverage? This question can be difficult to answer since the duration and level of long-term care varies from person to person. This is why we look at the statistics. A person turning 65 today has a 70% chance of needing some sort of long-term care service in their life. And 20% of people will need it for longer than 5 years.
How much does long-term care cost? Since 70% of people end up needing long-term care service, it is prudent to be prepared. But how much money will you need? The average stay for a nursing home resident is 28 months and the average stay for assisted living is 27 months. When you consider that nursing homes cost $225 per day for a semi-private room and assisted living costs half that, and you take the average length of stay you can round the total cost to $200,000.
To self insure or purchase long-term care insurance Now that we have analyzed the 3 parameters surrounding the issue of long-term care -- the likelihood of needing long-term care, the length of stay, and the cost -- we can analyze how to cover this cost. There are a couple of different ways to tackle this problem. You could self insure or purchase one of the many types of long-term care insurance policies. Long-term care insurance may give you peace of mind, but is it worth the cost? Self-insuring may be easier than you think if you can handle the market risk. Listen in to hear an option for self-insuring that you may not have thought of before.
Can life insurance be used as a tax strategy? The shakier the stock market feels, the more we’ll hear about alternative investing strategies. Janet was curious about how life insurance could be used as a tax-saving strategy since all of her assets are in tax-deferred accounts. What she is referring to is overfunding a life insurance policy and living off the proceeds tax-free for decades. Does that sound too good to be true? If so, it probably is. Listen in to hear why life insurance is not as special as it sounds, you’ll want to hear how this strategy could backfire on you and ruin your retirement.
If you have a question that you’d like answered on the show you can ask in one of two ways. The easiest way to ask me a question is to simply reply to the Every Day Is Saturday newsletter. The second way is to visit the Retirement Starts Today website and click the Ask a Question tab.
Resources & People Mentioned * LongTermCare.gov * Kiplinger’s article * Vanguard article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Ask me a question: https://retirementstartstodayradio.com/ask-a-question/ * Follow Ben on Twitter: https://twitter.com/retiremeasap
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I’m feeling optimistic this year and I want to continue to spread that optimism. That’s why I want to focus several shows on travel. Most people’s travel plans were foiled by covid in 2020, so 2021 will be the year of the vacation! We’ll be interviewing experts and discussing the mental and physical health benefits of travel. We get started on that road today with a Retirement Headline from Harvard Business Review.
Outline of This Episode * [1:52] Let’s explore the relationship between well-being and time away from the office * [5:02] What should Seth’s mom do with her $500,000 portfolio?
Are fewer vacation days negatively impacting your work? You have probably heard that without recovery periods, your ability to perform tasks effectively diminishes significantly. However, this is in direct conflict with the common practice of powering through work without a break.
The Harvard Business Review performed a study with the US Travel Association to help understand the relationship between wellbeing and taking time away from work.
They discovered that there has been a significant decline in vacation days over the past 2 decades. In 1996, Americans averaged 21.1 vacation days per year and in 2016 that number fell to 16.1 vacation days per year.
Is technology helping or hindering your time? Although productivity has increased due to technology, our inability to unplug has offset those gains. In fact, our inability to step away from technology has even led to bad vacations. According to the article, poorly planned vacations do not improve energy levels or reduce stress, effectively eliminating the time away. Learn what you can do to make the most of your vacation time by listening to this episode of Retirement Starts Today.
How to double your chances of getting a raise People who took fewer than 10 of their vacation days per year had a 34.6% likelihood of receiving a raise or bonus over a three-year period of time. Whereas, people who took more than 10 of their vacation days had a 65.4% chance of receiving a raise or bonus. So, double your chances for a raise and take a vacation!
What would you do with an extra $500,000 laying around? Seth’s mom insists that she doesn’t need the money in her $500,000 401K until it’s time to start taking RMDs. He wants to help her understand what she should do with the money.
My first question is why doesn’t she need it? Many people are worried about having enough money to last the rest of their lives. Is she underspending to make her money last longer? After understanding her reasons, there are a few things she can do.
Long term tax planning is key here. You may be surprised to learn that sometimes it is better to pay more in taxes now to help save on your lifetime tax bill. Listen in to learn how long-term tax planning can affect retirement planning.
Resources & People Mentioned * Harvard Business Review article * Smart Asset Tax Calculator * Schwab Annuity Calculator
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Would you want to raise your standard of living for half of what you live on now? Tim Leffel did, which is why he chose to uproot his family from their life in Nashville to move to a small city in Mexico. Tim is the author of the book A Better Life for Half the Price and he joins me today to discuss the pros and cons of living abroad.
Don’t miss the opportunity to learn how you can save money by living abroad. Tim is an expert in the subject and has written extensively about this topic. Listen in to hear this interview.
Outline of This Episode * [1:22] What made Tim decide to live in Mexico? * [5:06] Why did he rent before buying? * [7:08] What are examples of how he saves money by living in Mexico? * [10:45] Do you need to know Spanish before moving to Mexico? * [13:55] Why would people not want to move abroad?
Why did Tim choose to move to Mexico? Tim and his wife have traveled extensively and even lived in Seoul, Korea, and Istanbul, Turkey when they were young. When they had their daughter they knew that they didn’t want to live in the far flung reaches of the world but they still wanted the experience of living abroad.
Mexico was close by and easy to travel to, plus they liked the culture and the food which made it an easy choice to settle on. They chose to live in the central Mexican town of Guanajuato which is a mid-sized city of 200,000 with pleasant weather all year round.
It makes sense to rent first before purchasing abroad Tim chose to rent for a year first before taking the plunge and purchasing a home. He remarks that buying a house abroad is not like it seems on those popular house hunting TV shows.
There is a lot you need to think about when buying a home abroad. The zoning laws aren’t the same as in the U.S. and it can be hard for a foreigner to understand what things are worth without living there first. Tim recommends putting in the time and effort to truly understand the market value before purchasing a home.
What are examples of how he saves money by living in Mexico? It’s no secret that living in Mexico is less expensive than living in the U.S. Rent in the United States can easily cost $2000. In Mexico, you can find a house to rent for a fraction of that.
Healthcare expenses are notoriously high in the U.S. and in Mexico, Americans are shocked to find how easy it is to pay for those expenses out of pocket.
Tim finds that his total monthly expenses in Mexico are roughly equivalent to what he paid in rent in the U.S. Not everything is cheaper in Mexico though, listen in to hear about what costs more in Mexico.
Do you need to know the language first? You would think that you need to be fluent in the language before moving abroad, but there are some places in Mexico where you can get by being monolingual.
Tim still doesn’t consider himself fluent, although he is learning the language. Since his daughter went to school in Mexico, she had the opportunity to become fluent. Would you want to learn the language before moving abroad?
Connect with Tim Leffel * CheapLivingAbroad.com * CheapestDestinationsBlog.com * TimLeffel.com * BOOK -A Better Life for Half the Price by Tim Leffel
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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I’m thrilled to be back sharing the latest retirement headlines with you after my short holiday break. The biggest news on the retirement radar this week is that the 2nd Coronavirus stimulus package has passed. Together, we’ll take a look at the most relevant parts. Then I’ll answer the question: do you need a Roth IRA even if you make more than the income limits allow for? Let’s start preparing for tomorrow by learning today. Press play now.
Outline of This Episode * [1:22] What will the Coronavirus stimulus package bring for us? * [7:19] Health expenses are now deductible after 7.5% AGI * [9:07] Standard deduction + $600 if you are married filing jointly in 2021 * [10:45] Unemployment benefits have been extended * [13:09] Does Janet need a Roth IRA?
Will you be cashing a $600 stimulus check? The 2nd Coronavirus stimulus package has recently been passed and rather than have you read this 5500 page piece of legislation, I’ll cover the highlights that most pertain to you. Jeff Levine, @CPAPlanner on Twitter was a great source to help me understand the most important information in this bill.
Perhaps the biggest news out of the stimulus package is that new stimulus checks are heading our way. These checks aren’t structured exactly the same as the last ones. The checks are $600 for each person in your household if your income falls under a certain amount. Find out the income limitations by listening to the details here.
If you subscribe to the Every Day is Saturday newsletter this week, we’ll have a link to a calculator that can help you calculate the amount you’ll receive.
Health expenses are now deductible after 7.5% Another change brought about by the Coronavirus stimulus package is that healthcare expenses are deductible after 7.5% of your income. This number often bounces back and forth between 10% and 7.5% of your adjusted gross income (AGI). This means that your healthcare expenses must be 7.5% of your income to be deductible and even then it only counts for the amount that is over 7.5% of your income.
Unemployment benefits have been extended If you found yourself unemployed, like many this year, there’s good news. The stimulus package added federal unemployment benefits for another 11 weeks. This means that $300 per week will be added to your state’s traditional unemployment benefit.
These weren’t the only changes in the bill. You can learn more about how the latest Coronavirus stimulus bill could affect you by listening to this episode of Retirement Starts Today Radio.
Do you really need a Roth IRA? Janet’s financial advisor told her that since she is over the income limitations to save in a Roth IRA that she doesn’t need to open one. However, Janet is a few years away from retiring and she is worried about retiring without one.
In my opinion, everyone could use a Roth IRA eventually. If your current income doesn’t allow for it, you can always fund a Roth IRA with a Roth conversion. Listen in to hear how you can fund your Roth most effectively while filling up your tax bracket.
Resources & People Mentioned * Jeff Levine on Twitter @CPAPlanner * Nerd’s Eye View Blog by Michael Kitces
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Welcome back to another edition of Retirement Rewind -- episodes so good we played them twice!
Time for travel is by far the number one thing that Retirement Starts Today Radio listeners look forward to in retirement. That’s why I interviewed David Jacoby on to this episode and why it was chosen as a Retirement Rewind.
David Jacoby is a financial planner and travel expert who specializes in helping travelers and expats. David, himself has lived in 4 different countries and even built his business while living abroad. On this episode, he’ll help us understand the unique aspects of retiring abroad. If travel abroad piques your interest then you won't want to miss this interview.
Outline of This Episode * [2:06] The 3 types of people that are interested in travel abroad * [5:22] When does traveling extensively turn into living abroad? * [9:10] How to determine where you might want to live? * [13:33] How do people plan for their elderly years? * [15:26] How does health insurance work when you live abroad? * [17:42] What do people neglect to plan for?
The 3 types of people that are interested in travel abroad Many people are interested in traveling when they retire, but David Jacoby has found that there are 3 types of people that come to him for his services.
Digital nomads or globetrotters are people who work remotely or are location independent entrepreneurs.
Next are people who want to retire abroad for financial or social reasons. They are looking for the right country to move to.
The last group of people is those who are not quite ready to retire abroad and still live in the U.S. They may be traveling a bit right now to scope out potential locations.
Would you consider living abroad when you retire?
When does traveling extensively turn into living abroad? Traveling abroad and living abroad aren’t quite the same. Rather than living full time in another country, some people would rather keep their house in the U.S. and spend extended vacations in other parts of the world.
Others just want to sell it all and start fresh in exotic locales. However, before this romantic idea sets in, it’s important to do your homework first. David encourages his clients to visit a place 2-3 times in different parts of the year before making any final plans. Renting a place for 3 months or so will give you a better feel for everyday life in your desired location.
How to determine where you might want to live? Some people may not know exactly where they want to live, they just have a general idea. They may prefer a tropical climate, be near the ocean, or perhaps they have always wanted to live in Europe.
David can help his clients consider practicalities when choosing a location. Oftentimes visas and taxes play a huge part in choosing where to settle. For instance, Portugal, Spain, and Italy have easily obtainable visas for Americans while other countries in Europe are more challenging for American citizens to move to.
But what about healthcare? Have you considered travel health insurance? No matter where in the world you choose to settle you’ll need to think about health care especially since Medicare does not work outside the U.S. Depending on where you live you’ll either rely on the local system of care or pay for private health insurance.
Some people even chose to forgo health insurance. This sounds crazy but when you consider that the costs of medicine in many parts of the world are 1/10 of what you pay in the U.S. it isn’t that scary.
You need to understand why you should still enroll in Medicare even if you plan to live abroad for several years, so make sure to listen to this interview with international travel expert, David Jacoby.
Connect with David Jacoby * Remote Financial Planner * 4 Ways Moving Abroad Can Radically Improve Your Finances
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Welcome to this episode of our Retirement Rewind. Retirement Rewind episodes are so informative that we decided to play them again while I take the month of December to spend a bit more time to enjoy my family.
Estate planning attorney, John Ross from the Big Picture Retirement podcast, joins me to discuss how you can preserve your IRAs for your heirs in the wake of the SECURE Act. Check out this interview to discover how to optimize legacy tax planning, how to utilize an accumulation trust, and learn about the charitable remainder trust.
Outline of This Episode * [1:22] How has the loss of the stretch IRA changed estate planning? * [4:06] An accumulation trust may be the key to planning your estate * [6:44] A new opportunity for state income tax planning * [9:22] How to turn a 10-year stretch into a 20-year stretch * [16:32] A case study * [18:44] You may want to consider a charitable remainder trust
How has estate planning changed with the elimination of the stretch IRA? The SECURE Act brought about huge changes to estate planning when it effectively killed the stretch IRA. The stretch IRA provided the opportunity for people to name their spouse as a primary beneficiary and their children as secondary beneficiaries.
Upon inheritance, the IRA could be sent into a conduit trust and the RMDs were sent directly to the beneficiary. Those RMDs were based on the life expectancy of the beneficiary. One benefit of this trust was that it was doled out over a lifetime, another is that the IRA was preserved and protected from creditors. With the SECURE Act in place the conduit trust will no longer set the standard.
What will replace the conduit trust? Now that the conduit trust is defunct, how should people plan their estate? An accumulation trust may be the key. Inheritors can no longer withdraw those IRA funds over the course of their lifetime. They now have only 10 years to draw on the IRA.
In those 10 years a lot can happen. If your inheritor gets sued, divorced, or has problems with creditors then the IRA is at risk of disappearing. One solution to this problem is to set up an accumulation trust.
You may want to rethink your beneficiaries Now that the long-term stretch IRA is gone we need to rethink legacy planning. You may be thinking that 10 years is too short of a window for your inheritors. However, there is a way to stretch that 10-year window into 20. You could stretch these funds into 20 years by leaving your spouse half of your IRA and your kids the other half. Find out how this could work by listening to this interview with Johnn Ross.
Now is the time to review your estate plan Instead of thinking of this change in the law as an inconvenience, take the opportunity to review and update your estate plan. Many people set up their estate plan and then never revise it, but a lot can change over the years. When was the last time you reviewed your estate plan?
Connect with John Ross * Ross and Shoalmire Law Firm * Big Picture Retirement
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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What would happen if you go over your tax bracket by $1 when doing a Roth IRA conversion? On this Retirement Rewind episode, we’ll explore the best way that you can take advantage of the current tax cuts and get the most out of your money. What will Roth conversion season mean for you? Listen in and find out!
Outline of This Episode * [1:22] Why do we wait so long to convert our Roth IRA’s? * [3:44] What happens if I go over my tax rate? * [6:40] What about Medicare? * [13:15] Why are Roth IRA conversions such a big deal? * [15:48] How do Duane’s earnings this year affect his Medicare premiums? * [17:15] Should Don put 100% of his portfolio in stocks?
Why should you wait until the end of the year to convert your Roth IRAs? It’s a good idea to wait until the end of the year to convert your IRAs into a Roth. This is because you’ll have a good idea as to how much you will earn during the year.
The reason that you’ll want to wait until the end of the year to make a Roth conversion is to understand how much you’ll be making this year so you can fill up your tax bracket with the conversions.
Will you take advantage of Roth conversion season?
Why should you bother to convert your traditional IRA into a Roth? The funds in your IRA are pretax dollars so when you convert them to a Roth you pay taxes on them. It’s a good idea to convert your IRA into a Roth so that you can pay taxes now rather than later.
Roth conversions are a fantastic way to take advantage of the current tax cuts since it’s better to pay the devil you know than wait until later on in retirement when you’ll have no idea what the tax rates will be like.
Have you been converting some of your traditional IRA into a Roth over the years? If you haven’t now is a great time to start!
What happens if you go $1 over your tax bracket? You may have the idea that if you go even just $1 over your tax bracket that all of your planning will be for naught. Before you panic too much, let’s talk about marginal income tax rates.
Those couples who are married and file jointly and earn $79,000 per year will be taxed at a 22% federal income tax rate. However, that doesn’t mean that all $79,000 is taxed at the same rate. The rates are different for different parts of your income. The first $19,400 is taxed at 10%. Then the income from $19,400 to $78,951 is taxed at 12%. So that means only $49 would be taxed at 22%.
This type of taxation is called marginal income tax. A marginal income tax ensures that if you get a raise your net income won’t decrease.
Hopefully, understanding how marginal income taxes work will help you understand that the sky will not fall if you go over your tax bracket by a few dollars.
What if you go over the income bracket for Medicare? Unfortunately, Medicare is not as forgiving as the marginal income tax system. Many people don’t realize that Medicare has income-based premiums. If you make over $170,000 then you will no longer qualify for the Medicare Part B standard premium and you will also pay more for the Part D drug plan.
Listen in to hear how much your Medicare premiums could be and find out the answers to our listener questions.
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Welcome back to the Retirement Rewind! I take the last part of the year off from podcasting to spend more time with my family. But that doesn’t mean that you miss out on your favorite retirement podcast. Actually, I have a treat for you today. This episode is so good this is the 3rd time I’m playing it. Press play to find out which retirement podcasts I listen to in my spare time and scroll down to the bottom of the page to find links to my favorite episodes of those podcasts.
On this episode, you’ll discover more amazing retirement podcasts to listen to. In addition, you’ll learn about the confusing world of reverse mortgages and whether you should plan for a 20% cut to your Social Security.
Outline of This Episode * [2:22] Do you understand reverse mortgages? * [8:26] Will you be taking a 20% cut on social security? * [12:46] Get retirement ready with my favorite retirement podcasts
Do you find reverse mortgages confusing? I’m sure you’ve seen the ads for reverse mortgages before, but do you really know what they are? A study done on a focus group showed that most people thought reverse mortgages were a government welfare program. They didn’t realize that there were interest and fees involved and many thought that with a reverse mortgage they wouldn’t have to pay any more property taxes. Do you have questions about reverse mortgages?
What exactly is a reverse mortgage? Commonly known as a reverse mortgage, a Home Equity Credit Mortgage (HECM) is just like any other mortgage -- it has to be paid back. Reverse mortgages are sometimes taken on by people in retirement who are looking for a lifetime income.
A reverse mortgage works when the HECM calculates half of your home equity value and they set up a lifetime annuity based on that amount. Reverse mortgages can be complicated, so if you are considering one, make sure you read all the fine print.
My 5 favorite retirement podcasts If you’re listening to Retirement Starts Today you probably love podcasts as much as I do. I got into podcasting because I realized it would be a fantastic way to share my knowledge with a wider audience without having to be a writer. You may be surprised to learn that I have my own favorite retirement podcasts.
Learning to save for retirement can be kind of boring since all of us retirement podcasters are essentially saying the same thing. It’s the personality of the podcast hosts that really sets these shows apart from the rest. Here are 5 retirement podcasts that I love to listen to and learn from.
- Stay Wealthy with Taylor Schulte
- Retirement Answer Man by Roger Whitney
- Sound Retirement Radio with Jason Parker
- Stacking Benjamins by Joe Saul-Sehy & OG
- Retirement Repair Shop by Mary Beth Franklin
Resources & People Mentioned * BOOK – How to Use Reverse Mortgages to Secure Your Retirement by Wade Pfau * Forbes article on reverse mortgages by Wade Pfau * Washington Examiner article on Social Security * Stay Wealthy Podcast * + How to Lower Taxes in Retirement + Avoid Massive Investing Mistakes * Retirement Answer Man Podcast * + RV in Retirement Series Episodes 263, 264, 265, 266 * Sound Retirement Radio * + Will You Run Out of Money in Retirement? + Urgent vs. Important * Retirement Repair Shop * Stacking Benjamins * + Here’s Why You Aren’t Rich + We Make 500k a Year and Struggle with Our Budget
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Welcome to Retirement Rewind! Each year I take the holiday season off from podcasting to spend more time with my family. The good news is that I prepare my favorite episodes from the past for you to enjoy.
This episode is an interview with Fritz Gilbert over at the Retirement Manifesto blog. In this interview, Fritz and I discuss his new book, Keys to a Successful Retirement as well as his firsthand experience now that he has recently retired. If you’ve already listened to this episode before you might be surprised to hear the tidbits that you forgot about and if you missed it the first time around, you won’t want to miss the interview this time.
Outline of This Episode * [2:37] Why your first cup of coffee in retirement is the best cup of your life * [5:22] Retirement advice for a 38-year-old * [9:53] If you only had $500 to spend on retirement education what would you do? * [13:28] Are we in the golden era of Roth Conversions? * [16:27] A question about chapter 4 of Fritz’s book * [20:21] How to create the ideal retirement
You have to experience retirement to really understand it Fritz spent years leading up to retirement trying to understand what retirement would be like. However, after finally retiring, he realized that it isn’t something that you can explain to others. You have to actually experience it yourself to understand. I like his analogy of having a locked door in front of you your whole life and on the day of your retirement, you are finally given the key. What do you think? Do you think the feeling of retirement can be conveyed to others?
More than half of all people retire before they think they will Save, save, save! Even if you are one of those people that think they will continue working forever, it is still important to save for retirement. 60% of all people are forced into retirement before they have planned. What if you were forced into retirement tomorrow? Would you be ready? What are you doing now to help yourself prepare for the inevitable time when you won’t be able to work anymore?
What is the biggest bang for your buck for learning about retirement? I asked Fritz how he would spend his money if he only had $500 to spend on learning about retirement. It’s not a lot of money to spend on such an important topic, but fortunately, there is so much free content available; you can learn just about anything without too much money. YouTube, podcasts, and blogs provide a lot of information for free.
Fritz would spend his $500 in one of two ways. He loves books and feels like they provide a wealth of information. He also values the money he spent on hiring a CFP for a once over on his accounts. As a DIY investor, the peace of mind of having a professional give him the green light was invaluable. If you only had $500 to spend learning about retirement how would you spend it?
Create your ideal retirement by embracing your passion Retirement is a fantastic time to devote yourself to the passions that you’ve had to put on the backburner during your working years. Do you have a passion? How will you pursue it in retirement? If you don’t have a passion yet a curious mind can take you a long way to discovering one. Fritz found a passion that he never knew he had. Find out what it is by listening to this interview.
Resources & People Mentioned * Garrett Planning Network * XY Planning Network
Connect with Fritz Gilbert * Retirement Manifesto * Keys to a Successful Retirement * Fritz on Twitter @RetireManifesto
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Are you worried about what the election means for your retirement portfolio? Many people are tempted to make big changes to their retirement savings to reflect their election concerns. On this episode of Retirement Starts Today Radio, you’ll learn what you can do to your portfolio if you are nervous about the transition. You’ll also hear what the new RMD tables mean and how the Biden proposals could change the entire retirement landscape.
Outline of This Episode * [2:12] What do the new RMD tables mean for you? * [4:40] How much is the next Medicare Part B premium increase? * [7:40] Should you make big changes to your retirement plan because of the election? * [11:50] Which Biden proposals could affect you and your retirement?
What do the new RMD tables mean for you? Since people are living longer than ever before, the IRS has finally decided to acknowledge these longer lifespans by updating their Required Minimum Distribution tables. According to the longer retirement timeline, retirees can take out smaller mandatory distributions and spread them out over a longer period of time.
What does this mean for you? You can expect to see smaller tax bills and larger IRA balances compounding over time. Listen in to hear the details and learn why this new tax table may seem familiar.
Should you make big changes to your retirement plan because of the election? Thankfully, we’re not here to discuss politics. You can go just about anywhere else on the internet for that. However, I do want to touch on the changes that may arise due to the election.
An election year often brings about strong feelings one way or the other and many people feel that they need to make changes to their portfolio based on what they hear on the news. Just because there is an election doesn’t mean that you should make big changes to your retirement portfolio. It’s a good idea to keep in mind that there may be between 4 and 8 presidents in office over the course of your retirement.
Major global policy shifts don’t equal major portfolio shifts Even if there are major shifts in global policy you only want to make tiny shifts in your portfolio. If you listen in I will give you specific examples of what you can do to prepare for the future transition without changing the essence of your portfolio.
I do want to clarify that you should never take advice from me or anyone that you find on the internet. Regardless of who is running the country, I want you to have an amazing retirement.
Which Biden proposals could affect you and your retirement? One of Biden’s proposals could completely change the retirement landscape. How would your retirement plans change if the Medicare age was lowered from age 65 to 60? At this point, it is just a proposal. Stay tuned in to Retirement Starts Today Radio over the coming months to hear the latest on this Biden proposal as well as his plans for Social Security.
Resources & People Mentioned * Plan Adviser RMD tables * Think Advisor Medicare Part B article * NPR article about Biden’s Medicare proposal * CNBC article about Social Security
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com * Follow Ben on Twitter: https://twitter.com/retiremeasap
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After you finally get Medicare all figured out and everything in place, the last thing you want to do is ever think about it again. But unfortunately, you need to review your Medicare coverage annually.
Danielle Roberts is back, yet again, to help us understand what we need to do annually to review our Medicare plans. In this episode, you’ll learn what to do if you have a prescription drug change, if your Medicare Advantage plan gets discontinued, and how to change from supplemental plans to advantage plans and vice versa. There’s loads of information in this episode so make sure to pay attention so that you don’t miss any details.
Outline of This Episode * [1:22] What do we need to think about each year when it comes to Medicare? * [5:05] What to look for when you receive your annual notice of change * [10:01] How to change from a Medicare supplement to an advantage plan? * [14:43] Is switching between Medigap plans easy to do? * [17:35] What is in store for Plan F?
What is the annual election period? The Medicare annual election period runs from October 15 - December 7. This is the time when you can enroll in, change, or disenroll from a part d drug plan or a Medicare Advantage plan.
What to look for when you receive your annual notice of change When Medicare sends your annual notice of change it will lay out all of the benefit changes for the next year. This is one Medicare notification that you do not want to toss in the garbage. Take some time to go over this document to look for premium changes as well as changes in drug tiers for all of your medications. Even if you are happy with your current plans, it is still a good idea to check your coverage. Listen in to learn what you can learn from the MyMedicare.gov website.
What if I want to change my Medicare supplement to an advantage plan or vice versa? If you are looking to change plans you can do so during the open enrollment period which also takes place from October 15 - December 7. It’s quite easy to switch from a supplement to an advantage plan. Simply enroll during the open enrollment period and then cancel your supplement. There are no health questions to answer. However, if you would like to switch from an advantage plan to a Medigap plan, it is more complicated. Discover the order of events that must take place by hearing it straight from Danielle Roberts.
Is switching between Medigap plans easy to do? Switching between Medigap plans generally requires a health screening and underwriting which is why it is important to wait until you have been approved for a new plan before canceling your old plan.
Using a broker can help you understand the nuances of Medicare and ensure that you don’t make costly mistakes. Learn more about Boomer Benefits at BoomerBenefits.com.
If you haven’t listened to all 4 of the Medicare episodes with Danielle Roberts, I encourage you to head on over to episode 163 to get started. I know I have learned a ton from Danielle’s expertise and you will too.
Resources & People Mentioned * MyMedicare.gov
Connect with Danielle Roberts * Boomer Benefits YouTube Channel * BOOK - 10 Costly Medicare Mistakes by Danielle Roberts * Boomer Benefits Facebook page
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Do you know the difference between a Medicare supplement and a Medicare advantage plan? You’ll need to understand their differences to make an educated decision about which to choose when it is time to sign up for Medicare. Danielle Roberts from Boomer Benefits joins me again to help us wade through the various Medicare supplement choices. Learn how best to fill the gaps that Medicare leaves by listening to this episode of Retirement Starts Today.
Outline of This Episode * [2:12] What is covered by Medicare supplement plans? * [8:00] Medicare advantage plans operate through a network of providers * [15:02] Switching between plans may not be as easy as you think * [20:24] Dental and vision insurance
What is a Medicare supplement or Medigap plan? One benefit of choosing the original Medicare route is that the federal government will be processing your claims. While this is a positive aspect of choosing traditional Medicare, it also means that there will be deductibles and a 20% out of pocket cost on your claims. For this reason, it is important to consider purchasing a Medicare supplement plan. There are 10 different standardized plans to choose from, although most people choose one of 3 plans.
- Plan F is the Cadillac of plans, it was so popular and easy to use that it is actually being discontinued.
- Plan G is the next most popular plan. However, it doesn’t cover the $198 outpatient deductible.
- Plan N is a consumer-driven plan. It has a lower premium, but you pay a deductible and some copays for doctors and ER visits.
Find out why Medicare supplements are ideal for customers with some discretionary spending and frequent medical spending.
Medicare Advantage plans are becoming popular Medicare Advantage plans are gaining in popularity. The premiums are lower, but there is less choice for the consumer. You must use only the plan’s network of providers and their approved medications. There will also be extra spending on your part in the years that you have more medical spending.
If you want to switch from a Medigap to an Advantage plan there is no required medical questionnaire to fill out. However, if you would like to switch from an Advantage plan to a Medigap plan there is a possibility that you could be denied based on your health.
Listen in to hear what questions you need to ask before you sign up for a Medicare Advantage plan.
What about dental and vision insurance? Many people are surprised to discover that dental, vision, and hearing are not covered by Medicare. This is because in the 60s when Medicare was created, it wasn’t typical for insurance companies to cover these ancillary medical concerns.
There are a couple of options that seniors have when it comes to dental, vision, and hearing. You could purchase a standalone plan which covers these areas. Or you could choose a Medicare Advantage plan that also covers dental, vision, and hearing.
There is an important consideration you need to be aware of if choosing the Medicare Advantage route. Find out what it is by listening to this episode of Retirement Starts Today.
Do you have a rainy day fund? One last consideration that you need to think of is having a rainy day fund for out of pocket medical costs. If you choose a high deductible plan and then you end up needing cancer treatment that year, you could be hit with a $6500 bill. An HSA is a great way to cover this cost.
Have you listened to all of Danielle’s episodes? If not, head over to episode 163 to get started from the beginning!
Resources & People Mentioned * Taxes and Retirement Facebook Group
Connect with Danielle Roberts * Medicare Q&A with Boomer Benefits Facebook Group * Boomer Benefits * BOOK - 10 Costly Medicare Mistakes by Danielle Roberts
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Deciding to retire before age 65 can be a tough decision to make. For most people, this decision will result in an extra $1000 or more a month in health insurance expenses. Retiring after age 65 has its pitfalls as well. On this episode of Retirement Starts Today, Danielle Roberts joins me again to discuss the potential landmines that you need to look out for whether you are planning to retire before or after age 65.
Outline of This Episode * [2:22] What about retiring early? * [6:29] Which is better, shopping on the exchange or going directly to the insurance company? * [9:18] How to manage the risk? * [13:25] What are some mistakes people make when they retire after age 65? * [20:34] Why you don’t want to miss part D drug coverage.
Should you work longer just for health insurance? If you are considering working longer just for the insurance Danielle and I both recommend that you don’t. Instead, compare the cost of insurance through COBRA to the cost through the ACA. If you want to retire there are many plans to choose from through the ACA. One way to lessen the costs of insurance is to sign up for a high deductible plan that includes an HSA. That way you are building a healthcare nest egg at the same time. Discover a creative healthcare solution if you or your spouse is significantly younger by listening to Danielle’s advice.
Which is better, shopping on the exchange or going directly to the insurance company? It seems that it would be easy to shop insurance companies on your own these days by browsing through the companies websites. But Danielle recommends using the healthcare exchange at Healthcare.gov instead. She finds this to be a better way to compare carriers and their prices. The options are easier to find and the site will display all the plans that are offered in your area. Have you ever used the healthcare exchange?
How to manage the risk? Insurance is all about the transfer of risk. When trying to choose between a high deductible plan vs. a lower deductible plan you’ll want to compare your health concerns with your budget concerns. Consider how you use doctors. Do you have monthly visits with different specialists? Or do you visit the doctor once a year for your yearly check-up? If you only go to the doctor a couple of times a year then you don’t need to have a plan with a copay.
What are some mistakes people make when they retire after age 65? Many people delay their coverage of Medicare part B when they are still employed after age 65. This is fine while they are still employed, however, it is important to sign up for Medicare part B and D as soon as possible after leaving their employer-sponsored plan so as not to get stuck with a hefty penalty. Listen in to find out what you need to do to avoid penalties or a lengthy battle with Medicare.
Make sure you are signed up for the Every Day is Saturday newsletter so that you can respond to it and have a chance to receive a free copy of Danielle’s book, 10 Costly Medicare Mistakes You Can't Afford to Make.
Resources & People Mentioned * Healthcare.gov
Connect with Danielle Roberts * BOOK - 10 Costly Medicare Mistakes You Can't Afford to Make by Danielle Roberts * Boomer Benefits
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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You asked and I listened. This summer I asked you all for your thoughts on the show and many people responded that they wanted to hear more deep dives into complex subjects. We tried this out with the Living Off Your Savings series and now we’re taking some extra time to discuss Medicare. This episode is the first of a 4 episode series on Medicare. Grab your headphones and press play to begin your Medicare education.
Since I am not a Medicare expert, I have invited Danielle Roberts with Boomer Benefits to teach us about this nuanced subject. Make sure to stick around until the end of the episode to learn how you can get a free copy of Danielle’s new book, 10 Costly Medicare Mistakes You Can’t Afford to Make.
Outline of This Episode * [3:22] When should people start looking into Medicare in earnest? * [7:10] Why is Medicare Easy-Pay a good option? * [10:03] What will medicare pay for? * [12:25] What do your taxes pay for? * [17:15] Part D is an optional drug plan
When should someone start thinking about Medicare? The official Medicare enrollment period begins 3 months before your 65th birthday and this is often the time when people usually begin to start thinking about Medicare. Age 64.5 is a great time to begin to research your Medicare choices. In addition to Danielle’s book, there are plenty of resources online to help you educate yourself. After you listen to this series, YouTube and the Medicare website are good places to continue learning.
What costs are involved in Medicare? Some people are surprised to find that Medicare is not free. There are costs involved that you need to be aware of to properly plan for retirement. In addition to the monthly fee taken directly out of your Social Security payment, there are deductibles for inpatient and outpatient services as well as copays or coinsurance for doctor visits. Listen in to understand why it’s important to do your research early on to decide on what kind of extra coverage you may need.
What are the different parts of Medicare? Medicare Part A is what your Medicare payroll taxes have been paying for all these years and it covers hospital stays. Part B is what gets taken out of your Social Security check each month and this piece covers outpatient care. Medicare Part B pays only 80% so it is important to consider how you will cover the other 20%. This 20% can be supplemented in 2 ways. Listen in to hear what the difference is between Medigap and Medicare Advantage plans.
How you can receive a FREE copy of Danielle’s book Danielle is a fountain of Medicare information, so you won’t want to miss this series. On the next episode, you’ll hear what to expect if you retire before or after age 65. If you want a chance to get a free copy of Danielle’s book sign up for the Every Day is Saturday newsletter and respond to that email with a promise to leave an honest review of this podcast and Danielle’s book. So, if you haven’t already signed up for Every Day is Saturday, head over to RetirementStartsToday.com and hit subscribe.
Resources & People Mentioned * Start here to listen to the Living Off Your Savings series
Connect with Danielle Roberts * Boomer Benefits * BOOK - 10 Costly Medicare Mistakes You Can’t Afford to Make by Danielle Roberts
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Are you one of the many people still working from home due to the pandemic? What seemed like a phase that would last a few weeks has turned into a trend with no end in sight. While working from home creates exciting possibilities, especially for those considering retirement, it also has its downfalls. Many people have discovered that working from home means the lines between work life and home life are being erased. As long as you are conscious that burnout is a real risk then you can take active steps to keep your home life and work life in balance.
On this episode, I’ll share an Inc. magazine article about avoiding burnout while working from home. We’ll also take a look at a WSJ article on early retirement buyouts. Then we’ll wrap up this episode with a listener question about strategies for those on the cusp of retirement. So, grab your Airpods or your favorite listening device and take a walk with me.
Outline of This Episode * [1:02] How to avoid burnout while working remotely * [6:30] Should you consider early retirement? * [11:55] Are there any one-time financial strategies for those on the cusp of retirement?
Is working from home leading you to burnout? While the work from home revolution that picked up momentum during the pandemic has opened many doors, it has also revealed its own set of problems. People spend more time actively working and it seems that the 40-hour workweek has gone out of the window. Employees are now spending 25% more time ‘at work’ than before the pandemic. Many have stated that they find they are often sending work-related messages and emails after traditional work hours. Their desire to be productive now puts them at risk of burnout.
Try taking a virtual commute Microsoft has come up with a creative way to help its team avoid burnout while working remotely. Their solution is to bring back the commute. They don’t recommend you jump in the car and drive to your workplace, but rather a virtual commute. The Inc. article recommends a 20-minute meditation commute. I love this idea. However, if you are not a meditator, a walk to work commute might be a better alternative. Before you start working each morning, head out your front door, and walk around the block. You can use this time to get in the right headspace for work and plan your day.
Working from home could extend your working life Working from home can create amazing possibilities, especially for those of you considering retirement. The possibility of working from anywhere means that you could extend your work timeline. However, to take full advantage of the possibilities it is imperative to avoid burnout. As long as you are conscious that burnout is a real risk then you can take active steps to keep your home/work life in balance.
Have you been offered an early retirement package? Press play and listen in to hear whether you should consider taking an early retirement package. And keep listening until the end to hear the answer to Frank’s question about one-time financial strategies for those on the cusp of retirement.
Resources & People Mentioned * Inc magazine article on the virtual commute * WSJ article on early retirement buyouts
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Are you worried about the seemingly constant news stories which claim that Social Security may run out of money? These articles highlight any problems that the Social Security program is facing which can lead the reader to fret about the future of the guaranteed income source in retirement. Not surprisingly, there are companies out there that want to capitalize on this worry.
Does Social Security insurance sound like a good idea to you? On this episode of Retirement Starts Today I read from and discuss an article about Social Security Insurance. You’ll learn what it is and how it works and hear my thoughts about this product.
Outline of This Episode * [3:22] Make sure there is not a planning solution before rushing out to buy a product * [6:37] How does Social Security insurance work? * [9:48] What is my opinion on Social Security insurance * [12:10] How to begin a migration into bonds
There is a product out there to solve every problem Investors are always looking for less volatility in their investment portfolios, but oftentimes they don’t realize that proper investment planning is the best way to achieve that. Those who don’t approach their portfolios with an investment plan in place are often looking for a product to buy to solve their problems. The low volatility fund is one product for people who want to buy a risk solution rather than plan.
Is a low-risk fund all it’s cracked up to be? Does this low volatility fund end up raising risk in the short run while at the same time reducing risk in the long run? These low-risk funds often paint a distorted picture. While trying to reduce the downside they ultimately limit the upside which leads to less risk yet ultimately fewer returns. Zweig explains it beautifully, “the market loves to make monkeys out of people who think they’ve solved it.”
Solve your investing problems with strategy rather than products It is important to remember that in investing as well as in other areas of retirement planning there will always be someone there to charge you a fee for a product as a solution to your investment planning problem. So before you rush out to buy the first product that comes along, my advice to you is to think about your own behavior first. Consider if there is a planning or behavior management solution that could replace this product.
What is a good alternative to Social Security insurance? If you think that Social Security will run out of money or that you may see your benefits reduced that’s okay. But instead of rushing out to buy a product to hedge against the Social Security problem, be a prudent pessimist. A prudent pessimist doesn’t take a cut on their Social Security benefit by filing early, they wait until age 70 to receive a 32% bonus. That way if there is a cut to your benefit, it will be a cut on the bonus rather than on the reduced benefit. Press play to hear more about Social Security insurance, investment planning, and a listener question about how to migrate into the bond market.
Resources & People Mentioned * Jason Zweig’s WSJ article * Social Security insurance article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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If you are listening to Retirement Starts Today, you probably have retirement on your mind. You have probably given thought as to how you will spend your money, where that money will come from, healthcare, and plenty of other subjects.
But have you put any thought into how much notice you will give your employer? Do you have one of those jobs where you relish the day that you give your retirement notice? Or will your announcement be bittersweet? You may want to put some extra thought into how you want to present your retirement notice, especially during challenging economic times.
Outline of This Episode * [1:12] How much notice will you give your employer of your pending retirement? * [3:19] A cautionary tale * [5:54] Real life examples for you to learn from * [11:16] There is no one right answer
A cautionary tale You may want to give your employer plenty of notice about your retirement. If you have a strong sense of duty, you may feel that it is the right thing to do. I talked to one person who did just that. He was an employee who deeply valued his work and wanted to leave his career better than he found it. But his thoughtfulness didn’t pay off in the end. When the company offered early retirement packages he was passed over since he had already announced his retirement.
There are a number of different ways to make your retirement announcement While there are disappointing stories such as that one, there are also positive responses to retirement news. When I asked readers of my Every Day is Saturday newsletter about how they plan to announce the news of their retirement I got several different answers. These answers vary based on the type of work they do and the type of employer they work for.
What factors should you consider when announcing your retirement? One listener that has a technical job in IT plans to give 6 months’ notice. He based this number on the amount the time it will take to train his replacement. You may also want to consider the size of the company you work for and your level of responsibility in the organization. Another listener’s 1-month retirement announcement was well received. He also offered flexibility and it ended up paying off. Listen in to find out how that story worked out.
There is no right answer So what can you learn from these examples? What is the right amount of notice to give? Unfortunately, like just about everything else in retirement, there is no one size fits all answer. However, we are generally rewarded when we make these decisions with careful due diligence and specific intentions. So how will you give your retirement notice?
Resources & People Mentioned * Boomer Benefits
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Have you seen the news about Tesla and Apple lately? Their stock prices are surging to new highs after the announcement of a stock split. Is this what is supposed to happen with a stock split? Learn more about stock splits and what they mean for you by listening to this episode of Retirement Starts Today.
After we the Retirement Headlines I answer several listener questions. Have you been wondering about you and your spouse’s Social Security timeline? Should you roll over funds if you are happy with your 401K? Which is better--to dollar cost average or to max fund your retirement as quickly as possible? You’ll hear my take on the answers to these questions by pressing play now.
Outline of This Episode * [1:32] Are stock splits good for stocks? * [5:32] Should you run out and buy a stock upon the announcement of a split? * [7:01] What factors should be considered when setting up a Social Security timeline? * [9:23] Should you roll over your 401K if it is flexible and you are happy with it? * [14:44] Should you dollar cost average over a year or max fund your retirement as quickly as possible?
What is a stock split? Before I share my thoughts about the recent announcement of the Apple and Tesla split, I want to clarify what a stock split is. A stock split is simply dividing the price of a stock. When a stock split happens shareholders double the number of their shares but, essentially, they should hold the same monetary value. So if I own 1 share of Ben Brandt Industries at $10 per share before the split then afterward I’ll own 2 $5 shares that also equal $10. The whole point of a stock split is to bring down the price so that it becomes more affordable for everyday investors.
Should you buy a stock upon the announcement of a split? Recently Apple and Tesla both announced an upcoming stock split at about the same time. When they did so their share prices soared. This isn’t a typical market response of a stock split and is actually a surprising outcome. Listen in to discover why you should stay well away from announcements like these and you’ll even learn why stock splits should be obsolete in today’s world.
What factors should be considered when setting up a Social Security timeline? Are you wondering what the best timeline is for setting up your Social Security benefits? If you have listened to my show at all, you know by now that I am a fan of maximizing the largest of the Social Security checks by delaying those benefits for as long as possible. Grow the larger Social Security check for as long as possible to help you build the foundation of your retirement plan.
But what about the second Social Security check? If you are married then you likely have 2 Social Security checks to look forward to. Should you delay taking that benefit until age 70 as well?
I recommend waiting until full retirement age to file for this benefit, but keep it in your back pocket as a contingency plan. So, in case of a market downturn, you can be ready to turn on this benefit rather than dip into your savings before the market bounces back.
If you enjoy staying up to date on the latest retirement news, make sure to sign up for the Every Day Is Saturday newsletter.
Resources & People Mentioned * CNBC article about Apple and Tesla splits * Fractional shares article from Robinhood
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Have you been wanting to know a bit more about Biden’s tax plan without all the political spin? Me too! That’s why I dug deep to find the best information that I could share with you all. I promise, no politics here; just relevant information to help you best prepare for an amazing retirement.
In addition to learning how Biden’s tax plan could affect your retirement, I’ll answer a couple of listener questions. You’ll hear questions about TSP’s and Roth IRA conversions.
Outline of This Episode * [2:15] Biden’s first proposal is to repeal the tax cuts * [6:41] Biden’s proposal has some tax incentives as well * [8:47] Takeaways from these proposals * [11:02] The TSP in retirement * [14:11] How to structure your Roth IRA conversions
What’s the buzz about Biden’s tax proposal? There has been a lot of buzz about Biden’s tax plans in the news, but it can be challenging to find what those plans are without all of the political mumbo jumbo thrown in. I had to do some research, but I used the least politicized source I could find, TaxFoundation.org. Joe Biden has planned to raise taxes in several areas for certain groups of people, however, he has proposed a variety of tax incentives as well. Listen in to find out what Joe Biden’s tax proposal entails and how it could affect you.
How could Biden’s tax plan affect your retirement? At the end of the day, all you want to know is how the proposed tax changes could affect you and your retirement. What I want you all to understand is how important it is to build a flexible retirement strategy. You don’t ever want to jump all in or all out of the stock market. The middle ground will save your retirement in times of uncertainty.
Your retirement is more important than what is going on in Washington. If you have a portfolio consisting of half stocks and half bonds then you can even live off your bonds for an entire presidential term.
Remember, the stock market doesn’t care who is president. The top companies in the world will continue to succeed regardless of who sits in the Oval Office.
Taxes will always increase over time Another key takeaway that I want you all to remember is to pay the devil you know. Both portfolio values and taxes will likely increase over time. So, if you are newly retired with some tax flexibility it makes sense to pay more taxes now to prevent yourself from paying a lot more later. Remember, pay taxes like a pessimist and invest like an optimist.
What will you learn from our listener questions? Our listener questions today involve are about Thrift Savings Plans (TSP) and how to structure Roth IRA conversions. I’m not an expert in TSP’s, but if you are a government employee you’ll want to listen in to discover an excellent resource to help you plan your federal retirement. Stick around till the end of the episode to learn how to thread the needle and avoid a hefty tax burden with your RMD’s.
Resources & People Mentioned * Biden’s tax proposal from TaxFoundation.org * Taxes in Retirement Facebook group * Micah Shilanski, federal benefits and TSP expert
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Have you ever hear of a bank bail-in? You read that right, bail-in, not a bail-out. I hadn’t heard of this concept until recently and wanted to share it with you so that you understand how it works. Listen in to understand how this buzzword could be used to trick you into worrying about your savings. You’ll also hear the latest about the Fed’s plans for interest rates in the coming years. Stay informed of the latest in retirement headlines on this episode of Retirement Starts Today.
Outline of This Episode * [1:22] Is bail-in a new buzzword? * [6:04] What does FDIC insurance cover? * [9:42] What protections are offered for investment accounts? * [12:27] The Fed is planning to hold rates at zero for 5 years or more * [15:11] What is a bond barbell?
What is a bank bail-in? We’re all familiar with bank bailouts. These government-funded cash injections designed to prevent the collapse of a failing bank. Bank bailouts are unpopular across the board, from democrats to republicans to everyone in between.
A bail-in is also a way to prevent the collapse of a failing bank. But rather than being funded by taxpayers, bail-in money comes from deposit holders and creditors. The bank is allowed to convert its debt into equity to increase its capital requirements. How does this affect your money? Listen in to hear why a bank bail-in isn’t as worrisome as you may think.
What does the FDIC insurance cover? The FDIC insures each bank account up to $250,000 per person per bank. This insurance covers checking accounts, savings accounts, money market accounts, CD’s, etc. However, the FDIC doesn’t cover stocks, bonds, annuities, and life insurance. Generally speaking, the FDIC doesn’t insure anything that is considered to be an investment.
What is SIPC? Now you know that investments aren’t covered under FDIC, but are investments covered by any type of insurance? Similar to the FDIC for bank accounts there exists the SIPC for brokerage accounts. SIPC is the acronym for Securities Investor Protection Corporation. SIPC covers up to $500,000 in the event that your brokerage financially fails. It is important to remember that this insurance is not protection against poor investments. Did you know about SIPC?
What do zero interest rates mean for your portfolio? The Fed announced recently that it was planning on keeping interest rates near zero for five years. So, what does this mean for you? Well, unfortunately, that means that bonds won’t pay much interest in the near future.
Do you need to drastically change your investment outlook? Obviously I’m not here to give you investment advice, but if you have a Swiss Army Knife portfolio that is adaptable then you should be just fine. Learn why you may want to start using a dynamic withdrawal strategy and how that can help you weather any storm in retirement by listening to this episode of Retirement Starts Today.
Resources & People Mentioned * Investopedia article about bank bail-ins * Kiplinger FDIC article * Nerd Wallet SIPC article * Bloomberg article Fed Holding Rates at Zero
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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You may be wondering why I have invited Shark Tank star, Kevin Harrington on the show today. I often talk about how becoming a mentor in retirement is an amazing way to continue to get fulfillment while still enjoying the benefits of retirement. When I discovered that Kevin has a new book out called Mentor to Millions, I knew that my listeners could learn a lot from this interview. Kevin has mentored many business owners and can help you learn what it takes to become a powerful mentor.
Outline of This Episode * [1:02] A mentor changed Kevin Harrington’s business * [5:52] How can you become an amazing mentor * [11:10] How to decide on compensation? * [13:20] What kind of calculations does he use to make deals on Shark Tank? * [19:08] Is there any mentee he is particularly proud of?
A retired mentor changed Kevin’s business Kevin was already a successful business owner, but he couldn’t figure out how to get banks to loan his business any money. He was struggling to stay on top of inventory since the profits he was making had to go directly back into the business to buy more inventory. He went to every bank he could think of to try to get a business loan, but none would loan him the money he needed for his business.
That is when he decided to seek the help of a mentor. A retired finance expert took him under his wing and showed him how to make bank presentations. This help changed the course of his business.
How can you become an amazing mentor? The mentor-mentee relationship is a symbiotic one. As a mentor, you need to ensure that you find a mentee that fits. Make sure that your skill set matches what the student is looking for.
It’s also important to clearly understand and define expectations. Ask yourself and your student these questions. What are the terms of this relationship? How often will you communicate? What are the terms of service? What are the deliverables?
What will you get out of becoming a mentor? There are many ways of being a mentor. You could provide your services pro bono, you could charge a fee, or even use some combination of the two. If you do decide to charge for your services make sure that the terms of the service are crystal clear.
There are more than just financial benefits of becoming a mentor. In addition to the fulfillment that you get from helping someone out and passing on your expertise, you could create additional contacts and build key relationships. You never know where the role of mentor could take you.
Check out Kevin’s new book Kevin’s new book is called Mentor to Millions and is coming out soon and it is now available for preorder. If you order his book through his website KevinMentor.com you can receive 30 days of free mentoring! His book will teach you how to develop a strong mentor-mentee relationship and you’ll even learn about Kevin’s role as a mentor.
Connect with Kevin Harrington * KevinMentor.com - buy the book directly from his website and get 30 days of free mentoring! * KevinHarrington.tv
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Have you thought about what you’ll do with your life insurance policy in retirement? One listener is considering what he should do with his policy. Find out 3 options you have available as well as my opinion on whether you still need to carry life insurance in retirement. On this episode, you’ll also hear a retirement headline about the entrepreneurial boom that’s happening now as well as how you should calculate your home equity when using a retirement calculator. Press play to hear about all of these topics to help you prepare for an amazing retirement
Outline of This Episode * [2:02] More people are working for themselves now * [4:07] What is the best way to fund a trust for a special needs dependent? * [9:32] A thought experiment * [12:10] When using retirement calculators how much weight to put into home equity?
Would you delay your retirement to become an entrepreneur? According to a recent article in Bloomberg, more Americans have started working for themselves during this pandemic began. Self-employment brings more flexibility so that you can have time for work and play. For those on the cusp of retirement, becoming an entrepreneur could mean extending your work life. The longer you work the less time you will have to live off of your savings. If you were able to have more flexibility in your work, how many more years would you work?
Life insurance in retirement One listener has a question about his life insurance in retirement. He is considering using it as a trust for a special needs dependent. With life insurance in retirement you have 3 options:
- Cancel the policy the day you retire. Term insurance has no cash value, so when you cancel the policy you are done.
- Keep paying your premium until the end of the contract.
- Convert the term insurance policy into a permanent insurance policy. If this option interests you, contact your insurance adjuster to see which kind of insurance would best suit your needs. Keep in mind that your premium will change but you may not have to go through a health screening in underwriting.
Do you really need life insurance in retirement? Whether or not to keep your life insurance policy is a very personal decision. It’s actually a decision that shouldn’t be made by you. Your life insurance isn’t for you. It’s for your dependents. Since your dependents are the recipients of the policy upon your death they should have a say in this decision.
I personally don’t recommend life insurance in retirement since being retired means being financially independent. If you have a hard time envisioning your life without life insurance, then listen in to hear my thought experiment that explains why I don’t think that retirees need insurance.
How to use your home equity in a retirement calculator When using retirement calculators, how much weight should you put into your home equity? While your home equity is a part of your net worth, you don’t necessarily want to include it in your retirement plan. The value of your home functions differently in retirement. It can be used as part of a contingency plan if all else fails, but you shouldn’t use your home’s value as part of the calculations of your retirement funds. Instead, consider your home equity more like a multi-line insurance policy.
Resources & People Mentioned * Bloomberg article about self-employment * Reverse Mortgage episode with Dirk Cotton * Reverse mortgage calculator * Listener Survey
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Welcome back to another exciting episode of Retirement Starts Today. I want to say thank you to everyone who has participated in the Listener Survey. There is still time until the end of August 2020 to participate in the survey and voice your opinion about what you would like to hear on the show next year. You can fill out the survey here. It will take just a few short minutes of your time. In this episode, we’ve got a couple of listener questions plus you’ll hear about an interesting new addition to your 401K. Press play now to begin to learn how to make your retirement dreams a reality.
Outline of This Episode * [2:07] A new lifetime income disclosure rule * [7:46] Can you perform a Roth conversion while still contributing to a 401K? * [12:32] A Roth conversion tax question * [17:58] Don’t forget to take the listener survey
Lifetime income illustrations may be a new part of your 401K disclosure The Labor Department has just revealed a new rule for plan administrators of contribution plans like 401Ks and 403Bs. This rule states that the plan administrators must begin to demonstrate how your account balance can be used as an income stream. They will need to illustrate how the retirement plan could realistically provide the account holder with a lifetime income. The goal is to help people understand how their savings could translate to retirement income.
How will this rule help you plan for retirement? I think this visualization will be helpful but it misses the bigger picture. Seeing the basic math laid out is helpful for general retirement planning, but it won’t help you put the nuts and bolts together to build a comprehensive retirement plan. It’s important to remember that your retirement income is rarely linear. It changes throughout retirement. These illustrations can simply help you get a birds-eye view of how your savings can turn into retirement income. If you are looking for something a bit more comprehensive, download my Retire Ready Toolkit.
Can you contribute to a Roth and a 401K at the same time? John asks if he can begin contributing to a Roth while also contributing to a 401K. You can make Roth conversions at any time. A Roth conversion is when you send money from your IRA to a Roth IRA and pay the taxes on that money. You can do this at any time since the government is always happy to collect your tax dollars. Press play to hear why I suggest waiting until retirement to start converting your IRA.
A Roth conversion tax question Greg has a question on maximizing Roth conversions now to save on taxes in the future. It may make sense for some people to make large conversions this year. My opinion is that it’s better to pay the devil you know. The current tax cuts are set to expire soon so there will probably be tax hikes in the coming years. I like to call this the Golden Era of Roth Conversions. It’s always a good idea to fill up your tax bracket with Roth conversions as well. Having a decent amount of your money in a Roth IRA adds tax flexibility
Resources & People Mentioned * Annual Listener Survey * Pensions and Investments article * Taxes in Retirement episode with Andy Panko * Andy Panko’s Facebook retirement group
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Do you have a lot of stuff? If you said yes, you are not alone. 60% of Americans think that they have too much stuff. We’ll take a look at an article that addresses this problem in the Retirement Headlines segment today. I also have 2 listener questions that I will respond to. But before we get into any of that I would love it if you could help me out and take our annual listener survey. After you take the survey, press play to learn more to help you make the most of the only retirement you’ll get.
Outline of This Episode * [2:42] How to get rid of stuff * [10:09] The 5-year conversion rule * [15:39] Guyton-Clinger rules
We’re ready to hear your voice with our annual listener survey Before we get into our Retirement Headline, I would love it if you could help me out and take our annual listener survey. This 10 question survey only takes a few minutes and it helps me guide the topics of the show next year. You can tell me what you love and don’t love about the show. You can also voice your opinion and let me know what kind of topics you’d like to hear more about. I’d love to hear all of your opinions, so please make your voices heard by responding to this survey!
Do you have too much stuff? I am like most people in America, I feel like I have too much stuff. But with 6 kids at home, I’m just going to have to deal with it for a bit longer. Recently, I came across an article that had an interview with the author of Downsizing. The interview with the “King of Downsizing” highlights why we have so much and what we can do to get rid of it.
He remarks that early retirement provides a window of opportunity for downsizing and shedding away those things that you don’t need anymore. Once people reach their 70s, 80s, and beyond the ability to stoop and crouch can be limited which can make downsizing much more difficult.
Tips for downsizing When we finally decide to relinquish our possessions there is a hierarchy of ways to part with them.
- Give it away - when we pass on a special object to someone who shares a similar attachment to the item it makes everyone happy.
- Sell it - if the item still has some value then selling it is a great option.
- Donate it - giving the item to someone who needs it more can still make you feel good.
- Throw it away - this sometimes has an added cost to it. You may need to pay someone else to help you get rid of it.
Often the downsizing process takes between 2-6 months. The experts recommend giving yourself a deadline to complete the process. This article had some interesting ideas that I hadn’t thought of. Press play to hear advice for receiving your parents’ stuff.
A 5-year Roth conversion rule clarification Gerry had a question about Roth contributions and conversions after age 59 ½. We all know that after age 59 ½ we no longer subject to the early withdrawal penalty, but what about the 5-year rule? What triggers the 5-year rule?
The 5-year rule can be a bit confusing, so here are the basics. At age 59½, you can withdraw both your contributions and your earnings with no penalty provided your Roth IRA has been open for at least five tax years.
The 5-year rule is triggered by three circumstances:
- You withdraw earnings from your Roth IRA
- You convert a traditional IRA to a Roth IRA
- You inherit a Roth IRA
Are you curious to find out what you can do to make sure that you have no issues with the 5-year rule? Make sure to listen in to hear the full answer to Gerry’s question and you’ll also learn what kinds of funds you can use to build a Guyton-Clinger model.
Resources & People Mentioned * RetirementStartsTodayRadio.com/Survey * BOOK - Downsizing by David Ekerdt * Ed Slott tax expert * Next Avenue article - How to Get Rid of Stuff * Journal of Financial Planning * Kitces article on Roth contributions and conversions
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Welcome back to Retirement Starts Today! I have long been a proponent of saving in 401K’s, but will this article in Bloomberg make me change my mind? That’s the first article in the Retirement Headlines segment. We’ll also check out an article about the coin shortage and another about how hobbies can improve your financial fitness. Couple that with some listener questions and you’ll gain tons of financial insight. Listen in to continue expanding your financial knowledge.
Outline of This Episode * [1:22] Do 401K’s still made sense? * [6:58] Why are coins so difficult to find during the pandemic? * [8:55] How can your hobbies make you financially fit? * [11:10] A Roth conversion question * [14:00] How to describe real estate income in retirement
Do 401K’s still make sense? The 401K retirement savings plan was authorized in 1978 and began to take hold in the ’80s. Many different employers take advantage of these types of retirement savings plans. Recently there was a Bloomberg article written that questioned whether the 401K still made sense to save in.
The author argued that today’s low tax rates and the high fees of many 401K’s make it an undesirable vessel for saving. He does make some interesting suggestions on ways to improve the 401K program.
Listen in to hear whether this article changed my opinion about 401Ks and what I think the best way to save for retirement is.
Why are coins so difficult to find during the pandemic? Have you noticed the coin shortage? If you have been just about anywhere lately you have probably seen the signs on various stores and establishments about the shortage of coins.
I have been wondering why there has been a coin shortage during the pandemic until recently. My hometown newspaper, the Bismarck Tribune, published an article that helped me understand why. Listen in if you are curious why there has been a shortage of coins in circulation lately.
How can your hobbies make you financially fit? I often tout the benefits of retiring to something rather than away from something. It’s much healthier to keep active with hobbies in retirement, but your hobbies are more than a way to simply keep you busy.
Hobbies can actually help you lower your stress levels. Hobbies can actually get you out of a negative mindset and help you to break away from financial stress. Have you noticed that your hobbies help you reduce stress?
Will I have to pay a penalty for a Roth conversion? A listener is wondering about converting funds from a 401K to a Roth before the age of 59.5 He knows that he will have to pay taxes on the conversion but he was wondering whether he had to pay the 10% withdrawal penalty as well.
The good news is that you don’t have to pay a penalty for converting funds into a Roth. However, it is important to have money set aside for the tax liability.
Do you have a question for me? I love answering listener questions on the show, so please send in your questions!
Resources & People Mentioned * Bloomberg article about 401K * Bismarck Tribune article about the coin shortage * How Your Hobbies Can Make You Financially Fit
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ * Follow Ben on Twitter: https://twitter.com/retiremeasap
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So you think you know a thing or two about Social Security? Let’s put it to the test! I came across a Social Security Quiz from CNBC that I thought was fun, so I wanted to share it with you all. Stick around after the quiz to hear some listener questions. You’ll learn how to compare the 4% rule to a dynamic withdrawal rate. You’ll also learn about rolling over an IRA and the tax consequences. Let’s have some fun today, so listen in to find out just how much you really know about Social Security.
Outline of This Episode * [1:42] Take this Social Security quiz * [9:15] How do the dynamic withdrawal system and 4% rule compare? * [14:10] How to draw money from tax-deferred accounts and * [17:35] Do I need a separate IRA to roll over my pension?
Test your social security knowledge Sure, you are probably more educated about Social Security than the average Joe, but how much do you really know about Social Security? Take this Social Security quiz to test your knowledge. Let’s see how much you really know. Can you get 8 out of 12 correct? You’ll have to listen in to hear the answers.
- If you take benefits before full retirement age, will those benefits be reduced for early filing?
- If you take benefits before full retirement age, will your Social Security benefits be reduced if you continue to work?
- Once you start collecting Social Security, your benefits will never change. True or false?
- If your spouse passes away, will you continue to receive both benefits?
- Can your spouse receive benefits from your record if they have no individual earnings history?
- Does the money that you put into Social Security go into a specific account solely for you until you receive Social Security benefits?
- Under the current law, is 65 the full retirement age for Social Security?
- Could you claim Social Security benefits based on your ex-spouse?
- Could Social Security benefits be reduced for everyone in 2035 based on the current law?
- If you claim Social Security and have dependents age 18 or younger could they qualify for my Social Security benefits?
- Can you continue to get delayed retirement credit increases after age 70?
- Do you have to be a U.S. citizen to collect Social Security retirement benefits?
How do the dynamic withdrawal system and 4% rule compare? I’ve mentioned in the past that by using the 4% rule, 96% of the time people will have more money left over than when they started. Pete is curious about how the dynamic withdrawal system compares to that 4% rule. The 4% rule is easy to assess because you can look backward in time to analyze the data. With a dynamic withdrawal system, the amount of money left at the end would depend on your sequence of returns. Since the dynamic withdrawal system looks forward rather than back, there isn’t the same kind of data to assess. The difference between the two systems is that one is looking backward and the other is looking forward.
How to draw money from tax-deferred accounts and already taxed accounts One listener has money in tax-deferred accounts as well as in accounts that have already been taxed. He is trying to decide the best way to withdraw money from these in retirement. My advice is to think about what you are trying to solve. Are you interested in paying taxes now or later? When would you prefer to have the least tax burden? It is also important to note that Roth conversions are very appealing right now.
Resources & People Mentioned * Take this CNBC Social Security quiz * The Prudent Pessimist episode
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Tax expert, Andy Panko, joins me today to discuss taxes in retirement. Andy and I know each other from his Taxes in Retirement Facebook group. I figured he would be the perfect person to have on the show to help me answer several questions about this topic. Retirement is one time in life when you can plan for taxes in the long-term, so you’ll want to do as much tax planning as you can. Listen to hear the different types of tax questions that people have about retirement.
Outline of This Episode * [2:22] Do spouses have to calculate their RMD’s separately? * [8:32] An IRMAA question * [15:09] Bill wants to know about the 5-year rule * [20:36] How do RMD’s work? * [25:10] It’s not what you make it’s what you keep
An IRA question Wouldn’t it be easier to combine a husband and wife’s assets and just take one RMD? If a husband and wife have separate 401K’s and IRA’s even though it would seem easier to take those RMD’s together, they must be taken individually. The RMD is based on your age and each IRA and 401K has its own calculator.
One way to simplify the various retirement accounts is to take a rollover whenever you leave an employer-sponsored 401K. Remember the RMD penalty is steep, 50% of the required amount. So if you can find a way to simplify your retirement accounts then do it.
An IRMAA question The next question is actually from me. Normally I help my clients stay within the $174,000 income limit that IRMAA allows. But I recently discovered a case in which a client should go over that limit. Are there cases where people should deliberately go over the IRMAA limit?
If you already have a large pot of tax-deferred money it makes sense to pay those taxes now rather than later. We are experiencing all-time lows in tax rates and those rates are subject to change at any point. It may make sense to pay the $70 extra per month in Medicare costs rather than be stuck with a large tax bill later. Listen in to hear what the next IRMAA income cap is.
What are the rules of converting a Roth IRA? If you are already over 59.5 and the Roth account has been open more than 5 years then you are set. You can withdraw funds from that account without penalty. Any money that comes out is a qualified distribution. However, if you do not meet those requirements there could be a penalty. There are further rules and regulations surrounding Roth IRA’s and they can be very confusing. To ensure that you don’t encounter any problems with your Roth IRA, open one as soon as possible and fund it with a rollover.
How do RMD’s work? When you save into your IRA you are saving into a tax-deferred account. The RMD is simply there to make sure you pay the income tax on that money. It’s important to remember that the money isn’t entirely yours, you need to split it with Uncle Sam. You want to maximize the amount that you get and minimize Uncle Sam’s portion.
You and Uncle Sam see your IRA in different ways. You see that account as an asset and Uncle Sam sees it as (untaxed) income. It won’t allow you to put it off paying those taxes indefinitely. The RMD is simply the government’s way of ensuring that you pay the taxes owed on that money.
Press play to discover the answers to all of these listener questions and help realize all the tax planning opportunities that retirement brings.
Connect with Andy Panko * Andy Panko’s Taxes in Retirement Facebook Group * Tenon Financial * Retirement Planning Demystified YouTube channel
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Have you ever wondered what I sound like on a different podcast? Well, today you get to find out. Since I am attempting a family road trip with 6 kids under 12, I can’t personally be with you all this week. But I am excited to share with you a bit of my interview with my friend Grant Bledsoe on his podcast, Grow Money Business. Listen in to hear my thoughts on several hot retirement topics like the 4% rule, how to set up your income in retirement, and stay tuned until the end to hear people’s biggest problem people in retirement.
Outline of This Episode * [2:12] Our lives are too dynamic for a linear approach to retirement * [4:50] How do you adjust your tactics? * [8:47] What are Guyten’s guardrails? * [12:00 How do you set up your income in retirement? * [14:23] What is the biggest thing that people get wrong in retirement planning? * [20:10] How much cash should you have on hand in retirement?
Is the 4% rule the best way to plan for retirement? Most people who are deep into retirement planning are familiar with the 4% rule. The idea that if you take 4% out of your retirement portfolio each year and never run out of money is simple and easy to remember. However, I argue that you need more flexibility than the 4% rule offers. In practice, our lives are too dynamic to take such a linear approach. Your income in retirement may end up changing several times and you need to have a retirement plan that can adjust to the changes that life brings.
How do you adjust your retirement planning strategies? So how do you adjust your retirement plan to account for all those life changes? You and I aren’t the only ones with this question. Guyton is a retirement researcher who wanted to figure out another way of not running out of money in retirement. In a nutshell, Guyton’s guardrails state that you can increase your spending when the market is good and decrease your income when the market takes a downturn. Guyton’s guardrails start you off with a higher income at the beginning of retirement. This retirement model takes into account the more human side of retirement planning. Is your retirement plan flexible?
How do you set up your income in retirement? One of the biggest problems people have about retirement planning is, how do they get their money? I think it is important to stick with what you know. You probably aren’t used to getting one lump sum of money each year, so that may be hard to adjust to. I like to set up distributions once a month. These distributions come from the boring side of your portfolio. I call it the mullet distribution strategy Just like that memorable 80’s haircut your portfolio is business up front and a party in the back. I like to let the exciting stuff ride it out and party while taking from the business end of the portfolio. Listen in to hear more about the mullet distribution strategy.
What is the biggest thing that people get wrong in retirement planning? The number one problem that I see people having in retirement is that they are retiring away from something rather than towards something. Retirement shouldn’t only be about telling your boss to kiss-off. It’s important to find a meaningful way to spend your time. Find something to do with your newfound time freedom. Take a class, discover a hobby, or mentor someone. Remember you are jumping into a void. You’ll need a way to find contentment outside of the things that are related to money. What will you do after you retire?
Resources & People Mentioned * Grow Money Business
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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It’s true, money can’t buy happiness. But does how you choose to spend your money affect your happiness? Today we’ll discuss one article that challenges that old adage. We’ll also discuss a multifaceted question from a listener who just accepted an early retirement package. We’ll help her consider whether to rollover funds into an IRA and figure out what to do with her target-date funds. Listen in to hear the answers to this question and to consider whether money could actually buy happiness.
Outline of This Episode * [1:12] What we spend our money on can give us happiness * [4:28] Amy has accepted an early retirement package * [9:02] An IRA offers more choices
How we choose to spend our money matters Although money can’t purchase a deep, meaningful feeling, how we choose to spend our money matters. What we spend our money on can contribute to our happiness. The Washington Post recently published an article that reported on a study about how money affects our happiness. Having more money can make life better for those who struggle to make ends meet. Once their basics are covered they may have money to spend on things they enjoy.
How to use your money to make you happy People who spend their money on activities and causes that are important to them are more satisfied with their lives. Rather than worrying about how to make more money, start using your money in ways that benefit your happiness. Let’s think about how your money can buy you happiness. When you do have extra cash think about what you are trying to accomplish. What makes you happy? Don’t buy just something to buy it. Instead, ask yourself whether spending money on a certain product will actually help you lead the type of lifestyle that you want to lead.
Should I roll over my 401K into an IRA after retirement? The short answer is yes. One reason to move from a 401K to an IRA in retirement is that you will have many more investment options in an IRA than a 401K. A 401K is designed to please the general public as they accumulate their wealth. An IRA can be tailored to your individual needs and offer many more options than a 401K. A properly diversified retirement portfolio will have much more diversity than a 401K can provide.
What to do about target-date funds in retirement? I love target-date funds for the accumulation period of life but they don’t work as well in retirement. (If you haven’t listened to the Set It and Forget It episode about target-date funds, bookmark it for later.) Target date funds are great for keeping your savings well balanced and adjusted according to your target retirement date. But in retirement, you’ll want to be more surgical with your investing and slice away at your portfolio as needed.
Resources & People Mentioned * Washington Post article - Money Can Buy Happiness * Set It and Forget It episode
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Would you consider adding private equity funds to your 401K? We’ll weight the pros and cons of this interesting idea as we explore the retirement headlines. No listener questions today, instead, this episode is all about the headlines. We have news about RMD’s, private equity funds, tax strategy in retirement, and a shocking Fidelity study. Make sure to listen until the end to hear the surprise twist.
Outline of This Episode * [1:22] All unwanted RMD’s taken in 2020 can be returned * [2:16] Including private equity funds in your 401K * [8:08] Many Retirees forget to plan for taxes in the long term * [10:35] A Fidelity study stated that ⅓ of investors over 65 moved their money out of stocks
What are private equity funds? You may have heard of private equity funds before but many people aren’t exactly sure what they are. So before we explore this retirement headline I want to define the term. Private equity funds are an investment class of their own which consists of capital that isn’t listed on the public exchange. Whereas public equity involves buying shares on the stock exchange, private equity funds invest directly in private companies.
Do Private equity funds belong in your 401K? Recently changes were made that opened the door to allow private equity funds into 401K plans. There are pros and cons to this idea. One positive is that they can provide added diversification to your investments. Another positive is the potential for increased returns.
However, there are 3 serious downsides you need to consider before adding private equity funds to your 401K.
- A lack of transparency - It’s difficult to understand what you own when you own a private equity fund. Mutual funds are designed to be transparent, but with private equity, you won’t have that same clarity.
- A lack of liquidity - With mutual funds, if you need cash out of your retirement account you could sell and have the funds within 3 days. However, it could take months to get your money out of a private equity fund.
- High fees - Private equity funds can charge 2 & 20 which means that they have a 2% annual fee and take 20% of your profits. This is a huge difference when compared to the ever-lowering fees of mutual funds.
Listen in to hear my opinion about private equity funds in your 401K.
Many Retirees forget to plan for taxes in the long term The pandemic has caused many of us to reevaluate a number of things in our lives. One of those considerations was taxes. 59% of Americans surveyed said that they are more worried about taxes now than before. And 63% responded that it’s more important to develop a tax strategy in retirement. I am a proponent of long-term tax strategy in retirement in conjunction with your yearly tax planning. My takeaway from this article is that it is important to get professional tax advice early on so that the taxman doesn’t sneak up on you.
The importance of accurate reporting The Wall Street Journal published an article that stated that ⅓ of investors over age 65 moved their money out of stocks. But the article published inaccurate data. Although the article was corrected, it took 3 days for the correction, an eternity in this time of instant news. Mistakes in reporting will inevitably happen which is why it is important to read news surrounding statistics and investing with a grain of salt. It’s also important to be conscious of your own bias when reading news articles.
Resources & People Mentioned * Unwanted RMD’s can be returned by August 31 * Market Watch story on private equity * Retirees planning for taxes * Wall Street Journal article about retirees withdrawing from the market * Think Investor correction article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Retirement Manifesto blogger, Fritz Gilbert joins me today. Fritz was actually my very first guest on the show and is now my first repeat guest. I’m excited to have him join me again since he has recently retired. Fritz shares insight from his research in writing his blog and book but also from his first-hand knowledge of retirement. Listen in to our conversation as we discuss hidden challenges of retirement, how it feels to be newly retired, and how to get the most bang for your buck in retirement planning.
Outline of This Episode * [2:22] The first cup of coffee you drink after you retire is the best cup of your life * [5:25] Even if you don’t plan to retire you should still save for retirement * [9:48] Books can offer a lot of knowledge * [13:28] Is 2020 the golden era of Roth Conversions? * [16:27] The hidden challenges question * [20:21] Embrace your passion to create your ideal retirement
The first cup of coffee is the best cup of coffee of your entire life In Fritz’s book he mentions that the first cup of coffee he drank the day after he retired was the best cup of coffee he ever had in his life. Fritz was obsessed with trying to figure out what retirement would be like, but mentions that it is something that you can never understand until you actually do it. He compares it to marriage or having a child. One metaphor he uses is that it’s like having a locked door in front of you your whole life and then you are finally given the key.
Did he always think about retirement? At 38 years old, I can’t picture myself retired. So I ask Fritz, did he always picture retirement? His response is that he didn’t really begin to think about retirement until his mid 40’s and then when he was in his early 50’s he began to get serious about retirement planning. When he started running the numbers he realized that retirement was a possibility sooner rather than later. He realized he could get out of the rat race early and enjoy more out of life. He thinks it is important to do some serious planning when you are within 5 years of retiring.
One thing that is important to consider is that many people get pushed into early retirement, so whether you are planning for it or not, it is important to be prepared financially. We both agree that whether you are thinking about retirement or you plan to work forever, it is important to save for it.
The hidden challenges of retirement One of the chapters of his book discusses the hidden challenges of retirement. I was surprised that market volatility was not one of the challenges that he mentioned in that chapter. His reasoning is that market volatility is not a hidden challenge. It is to be expected and planned for. If you create a sound financial plan then market volatility won’t worry you. The hidden challenges that he mentions are not financial and not as widely communicated as the financial aspects of retirement. Listen in to hear what some of those hidden challenges are.
Embrace your passion to create your ideal retirement In his book, Fritz states that finding a focus or passion in retirement is so important. But what should someone do if they don’t have a passion? How should they go about finding their passion? Should they do that before retirement or can they wait until after they have already retired? Fritz answers that finding your passion is a matter of being curious and maintaining a willingness to learn. Discover how Fritz found the passion he never knew he had and how you can find your passion to create an ideal retirement by listening to this chat.
Resources & People Mentioned * Garrett Planning Network * XY Planning Network
Connect with Fritz Gilbert * BOOK - Keys to a Successful Retirement by Fritz Gilbert * The Retirement Manifesto blog * Fritz on Twitter @RetireManifesto
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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I’ve got an exciting episode planned for you today. This episode will focus solely on listener questions but as an added twist I’ve asked my friend Grant Bledsoe over at Grow Money Business Podcast to join me in answering these questions. I think you’ll benefit from Grant’s expertise as a Registered Investment Advisor and enjoy hearing his perspective as he helps me answer your questions. Listen in to hear our two points of view about rebalancing in difficult markets, quarterly tax payments, and choosing between a lump sum or monthly payments.
Outline of This Episode * [1:22] How to rebalance your portfolio when dealing with difficult markets * [7:00] What is the classification of REITs? * [15:30] After a Roth conversion should you send in quarterly tax payments? * [17:55] A $200,000 lump sum or $1500 a month payments for life?
How to rebalance your portfolio when dealing with difficult markets With all of the market turmoil over the past few months, many of us are left scratching our heads when the time comes to rebalance. How are we supposed to rebalance when the stock market is so volatile?
Grant sees 2 sides to this thought equation. One side contains the math and the other part has the psychology. The math side will tell you that you are better off investing all your cash at once. But, psychologically, not many of us are prepared to jump all in today’s turbulent market. Grant suggests waiting or using the dollar cost average to divide up the cash over the next year or two. He stresses that you should choose a reasonable method and stick with it. Consistency is key, especially in times of uncertainty. Listen in to hear my response to this timely question.
How should REITs be classified? Do you have REITs in your portfolio? One listener wonders whether they should be classified as a stock or a bond. While Grant thinks they act more like a stock, I tend to put them in the same category as bonds, but really, they are neither. Most REIT funds will invest in big commercial real estate, such as hospitals and shopping malls. They behave in their own way since the returns are driven by rents, interest rates, and appreciation. Having REITs in your ‘other’ category is one way to diversify your portfolio. Discover the risks of owning REITs as well as the difference between traded and non traded REITs on this episode of Retirement Starts Today.
Should you send in quarterly tax payments when doing a Roth conversion early in the year? One listener asks if you do a Roth conversion early in the year should you be making quarterly tax payments to the IRS? This is a great question to ask your tax professional. If you do your own taxes then the IRS website is the resource to help you with the logistics. Basically, if you have 90-100% of the payments prepaid you won’t incur a penalty. This is why it is important to understand what your tax burden will be.
A $200,000 lump sum or $1500 a month payments for life? To people that love math problems, deciding whether to take a lump-sum or monthly payments may seem as easy as plugging in the numbers. But there are more factors to consider beyond the math. You should examine what your retirement plan looks like. Will you be receiving Social Security payments? Think about your risk tolerance and your longevity as well. Grant helps me answer this common listener question, find out his take on it by pressing play.
Connect with Grant Bledsoe * Grow Money Business Podcast with Grant Bledsoe * Three Oaks Capital * Above the Canopy blog
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Can you imagine this nightmare? You’re newly retired and then a global pandemic comes along and threatens financial markets all over the world leaving you bankrupt in only two weeks. Listen to this cautionary tale in the retirement headlines segment of our show today. But what is more important than hearing the frightening scenario is learning what you can do to prevent yourself from taking this kind of risk.
Outline of This Episode * [3:22] How did one man go from retired to bankrupt in just 2 weeks? * [7:40] How to protect yourself from risk * [9:15] Few use the CARES Act to tap into their retirement savings * [11:50] Should you cover non-discretionary expenses with Social Security or an annuity?
Retired to bankrupt in 2 weeks How could someone go from retired to bankrupt in two weeks? This Wall Street Journal article notes that one investor reentered the stock market after the 2008 financial crisis by investing solely in leveraged exchange-traded notes (ETN’s). ETN’s are similar to ETF’s but they don’t own the assets they track. The investor’s ETN’s were earning 18% a year until the bottom dropped out. It’s important to remember that highly profitable investments come with added risk.
How to protect yourself from risk Hearing a story like that may cause you to think twice about risk, but to stay on top of inflation we have to take on some risk. Instead of running from risk, we must understand it. If you want to maintain your purchasing power your money has to grow beyond inflation. You can do this safely by creating a war chest of cash and bonds that has several years’ worth of income. Your war chest will allow you to ride out the market dips so that your portfolio has time to recover. Listen in to learn what else you can do to protect yourself from risk.
Few use the CARES Act to tap into their retirement savings If you’ve listened to this show in the past few months you have heard the different retirement benefits of the CARES Act. One of the provisions waives RMD’s for 2020. Another allows individuals younger than 59.5 to access their retirement portfolio without penalty. According to this Investment News article, few people have taken advantage of this aspect of the new law. Even those who did dip into their retirement savings didn’t typically take too much out. This leaves me cautiously optimistic about people’s retirement plans.
Should you cover non-discretionary expenses with your guaranteed income? Mike has an interesting question. He asks if his essential expenses should be covered by Social Security or other guaranteed income. I think it’s a smart idea to pair non-discretionary expenses with your known income. Although I like Mike’s idea, it’s not what I do.
I create a budget based on expenses then subtract guaranteed income. The deficit is what needs to be covered by the retirement portfolio. Find out more by listening to this episode of Retirement Starts Today.
Resources & People Mentioned * Retirement Answer Man episode with me * Wall Street Journal article about going bankrupt * Investment News article on CARES Act
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Do you know what you would do if your employer offered you an early retirement package? Before you rush into an answer, I have 4 questions for you to consider. Given the present economic climate, this is an important consideration. On this episode, we’ll also talk about survivorship bias and what you can learn from it. Then I answer a listener question about alternative minimum tax and donor-advised funds. Lastly, we’ll discuss 3 different retirement headlines. Don’t miss out if you have been considering taking an early retirement package from your employer.
Outline of This Episode * [1:32] Survivorship bias * [4:21] AMT’s and DAV’s * [6:45] Unlikely to be a social security boost in 2021 * [8:53] Retirement savers stayed calm during the market hiccup * [11:05] Delta airlines is offering a buyout package * [14:12] What is the appropriate amount of time to give when contemplating retirement?
What can we learn from survivorship bias? Survivorship bias can often leave us dead wrong. We often look to the successes to try and learn how to succeed ourselves. This is often because we don’t see the failures. But in failure is where we can find the lessons to be learned. For every Amazon or Apple, there are hundreds of potential ideas that didn’t pan out. Next time you plan for success look to the failures to guide you. Listen in to hear an interesting story of how to learn from failure.
Will a donor-advised fund be excluded from alternative minimum tax calculations? I don’t often get questions about alternative minimum tax (AMT) so I am excited to share some insight on this one. According to the American Endowment Foundation, there are 5 primary tax benefits to becoming a donor with a donor-advised fund (DAF).
- If you are subject to AMT your contribution to a DAF will reduce the AMT impact.
- You will receive an immediate income tax deduction in the year you contribute to your DAF. The deduction for a cash donation is up to 60% of AGI. The deduction for securities or other appreciated assets is up to 30% of AGI.
- You will not incur any capital gains tax on gifts of appreciated assets.
- Your DAF will not be subject to estate taxes.
- Your investments in a DAF can appreciate tax-free.
Delta is offering buyout packages to its employees I recently read an article from CNBC about employee buyouts. Delta airlines is offering a buyout package to its employees since under the conditions of their federal aid package they cannot layoff or cut the pay of any workers until September 30. Those who qualify for early retirement would receive up to 26 weeks of severance, 2 years of medical coverage, and a year of travel benefits. Given the current economic climate, Delta may not be the only large company we see offering buyouts in the coming months.
Tips to consider if you are offered an early retirement package Have you considered what you would do if your employer offered you an early retirement package? I chose to highlight the article about Delta’s buyouts to get you to think a bit about what to do if you are offered early retirement. Here are 4 questions to ask yourself if your job offers you an early retirement package.
- Why is your employer is offering this package? This early retirement package may be a sign that your employer is in financial distress. If you don’t accept the buyout, you may still be laid off later on and the terms may not be as good.
- Where will your income come from? While periods of 4-26 weeks like the Delta offers may sound like a long time, they will go by quickly. You may have the opportunity to withdraw from your retirement funds, but doing so earlier than projected may deplete your savings faster than you think.
- Where will you get your health insurance? Early-retirement packages typically allow workers to keep their health insurance for a period after leaving the company, but after that, those people are on their own unless they have reached age 65 and can enroll in Medicare.
- Is there a good reason to stay put? Your pension may be based on the average of your last three years of income. If you expect that number to rise, you may have a good reason to reject the offer.
Listen in to hear what you should consider when offered an early retirement package and to learn why you might not want to give too much notice of your retirement.
Resources & People Mentioned * Survivorship Bias fallacy * Don’t focus on the successful to become successful * Investment News article about Social Security * Retirement savers stayed calm * CNBC article on Delta buyout
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Are you an eternal optimist or a prudent pessimist? It may seem like the stock market is the eternal optimist. Have you seen the headline that Uber laid off 3,000 employees? If you have, you may be wondering why their stock jumped up. Learn why this is a common occurrence by listening in. Then on the other side of the coin, you’ll learn how you can be a prudent pessimist after reading the latest Social Security headlines. But first, let’s get to a listener question from Jennifer.
Outline of This Episode * [1:22] Should Jennifer roll over her lump sum pension payment into a Roth IRA? * [6:45] Bad news and stock prices * [10:15] Should you worry about the latest Social Security news? * [16:10] If you want to be a pessimist, be a pessimist the right way
Should Jennifer roll over her lump sum pension payment into a Roth IRA? We may be hearing more and more questions regarding lump sum pension payments in the coming months due to dropping interest rates. These lowered interest rates make lump sum pension payouts more attractive. Jennifer is considering rolling over her lump sum pension payment into a Roth IRA. I would advise against this due to the high tax rate. You don’t want to have that heavy tax bill all at at the same time. Instead of rolling everything into a Roth IRA, a partial Roth conversion could be a better option. Listen in to hear why.
Why does the stock market favor bad news? I recently came across an article on Tech Crunch which stated that Uber laid off 3000 employees. However, the stock market’s reaction to the tightening of Uber’s purse strings was positive. Many people wonder why news like Uber’s often leads to increased stock values. This is because the stock market looks forward in time, months, or even years ahead. While the news is bad for the company and the employees right now, this fiscal responsibility may pay off in the long run, or so investors think.
Should you worry about the latest Social Security news? While the stock market may seem overly optimistic, any news surrounding Social Security seems pessimistic. How about this headline from Investment News? Pandemic Will Deplete Social Security Trust Fund, is that scary enough for you? Of course, like all headlines, this one is meant to grab your attention. The truth is, legislators will probably figure this out in the end. The pandemic will not last forever and soon people will get back to work and their Social Security tax contributions will be collected once again. As long as people are paying into Social Security, this fund will not run out of money.
If you want to be a pessimist, be a prudent pessimist the right way If you still believe that Social Security is doomed, don’t let that cause you to change your retirement plans. If you think that claiming your benefit early at age 62 will be the best way to make use of your contribution, think again. If you really want to be the prudent pessimist you’ll wait all the way until age 70 so that you receive a 32% increase on your benefit. Listen in to hear why waiting to take Social Security at age 70 is the best choice for the prudent pessimist.
Resources & People Mentioned * Uber Layoffs Tech Crunch article * Social Security Investment News article
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Thanks for participating in the office hours that we’ve held for the past several weeks. Due to that question and answer period, we have exhausted all of our listener questions. But don’t worry we have some interesting articles to discuss on today’s episode. Listen in to learn more about the CARES Act, the lack of inflation, market positions from the big, and why so many people plan to return to work after being laid off.
Outline of This Episode * [2:42] Financial planning opportunities within the CARES Act * [5:02] Taking a coronavirus distribution * [8:10] What’s up with inflation? * [10:55] The outsized position of FAANG stocks * [13:22] 80% of workers think they will return to their previous jobs
Financial planning opportunities within the CARES Act The CARES Act was recently passed to provide more options to those affected by the COVID situation. This landmark legislation presents savvy with a few financial planning opportunities. The CARES Act has allowed for money saved in employer-sponsored retirement plans to become more readily available. Up to $100,000 can be moved to a less restrictive plan. Another opportunity is if you have already taken your yearly RMD. If you have done so, you have the opportunity to return the money to the account and let it keep growing tax-deferred.
Be careful when taking a coronavirus distribution One more benefit from the CARES Act is that if you are under 59 ½ and you take income from a distribution over 3 years without the 10% IRS penalty. This was written into the law to help people economically that have been affected by Coronavirus in some way. If you feel that you qualify to take money out of your IRA it is important to make sure that you only take the amount that you need so that you don’t end up with a hefty tax bill at the end of the year.
Where’s the inflation? When the government pumps trillions of dollars into the economy all of the economic textbooks say that there should be inflation. But nothing much is happening. Travel and apparel fell 0.4%, gas dropped 20%, and food costs went up 2.6%. While these numbers are interesting, what do they mean for the average investor? We can learn a lesson from this. Every time we think the market is going to zig, it zags. Remember this when you try to insulate your portfolio from a specific type of risk. There is always a different risk that you weren’t anticipating. The market will always throw you a curveball. Listen in to hear what you can plan for all kinds of risks in retirement.
80% of laid-off workers believe they will return to their old jobs soon As the country slowly begins to return to normal after the quarantine over the past couple of months many laid-off workers are optimistic. I find myself sharing their optimistic, albeit cautiously. Typically fewer than half of laid-off workers expect to return to their previous jobs but this time there is hope that things could be different. Only time will tell if this will be the case.
Resources & People Mentioned * Michael Kitces article * Forbes article * Bloomberg article on inflation * Professor Galloway article * Washington Post article about laid-off workers
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Have you been listening to what has been going on in the commodities markets lately? People around the world were shocked when oil prices went negative in the month of May. I didn’t even know that this could happen and I’m a financial professional! This interesting turn of events led me to seek the expertise of someone more knowledgable in the oil commodities sector. This is why I’ve asked oil expert, Dan Eberhart, to come on the show today and explain how the price of oil could drop into negative numbers. We’ll also talk about the importance of diversification and not only in your portfolio.
Outline of This Episode * [2:02] What the heck happened to oil prices in May? * [4:18] Should we start thinking of the city we may end up in? * [6:35] Should we avoid the Middle East in our international investments? * [9:32] What are the long term implications on oil? * [11:58] If we have the capital is it a good idea to invest in oil right now? * [13:15] Is the oil industry a viable industry for the future?
How did oil prices drop into negative numbers in May? The price of oil is actually based on a futures contract. That contract is set for delivery at a certain date and these contracts roll over each month. Oil is traded by commodities brokers who don’t actually take possession of the product. Most people who want to trade in oil don’t actually want to take over the physical delivery of this commodity. What happened in May is that when it was time for the traders to exit and hand over the delivery of the product no one wanted to take it due to the lack of available storage facilities. This caused a panic in the market and sent the price into negative numbers. Listen in to find out if this could happen again.
Should we start thinking about the city we may end up in? We all know about the importance of diversification in our portfolios, but have you ever thought about the economical drivers of the town that you live in or want to live in during retirement. If that place’s sole economy lies in one market you may be taking on extra risk. Before purchasing a home in retirement think about what kind of economy drives the place. North Dakota and Texas have strong ties to oil. Wyoming and Pennsylvania are large producers of natural gas. And Silicon Valley and the tech economy drive much of California. If you do live in one of these places it is a good idea to pay even more attention to the diversification of your portfolio so it is not tied to one of these sectors.
Should we avoid master limited partnerships? Retirees are often looking to have some income-producing investments in their portfolios. Until recently, master limited partnerships (MLPs) seemed like a great way to provide income and diversification. There were some MLPs that were paying between 7-9% annual yield on investments. Since these have been more volatile should we steer away from MLPs in the future? Dan recommends approaching these with caution. They will be less volatile than oil and gas stocks but more volatile than they have been in the past.
What are the long-term implications for the oil industry? With more people working from home, the increasing popularity of electric cars, and the green movement it seems like the future of the oil industry could be bleak. Dan mentions that it’s not practical to flip a switch to change our energy from oil and gas to renewables. He is confident that the free market will help solve this puzzle. As those in the sector already know, the oil and gas industry has always followed a boom and bust cycle. The demand for oil is down right now but it will begin to increase over the next 18-24 months.
Has the wild swing in oil changed your diversification strategy?
Resources & People Mentioned * Interactive Brokers article
Connect with Dan Eberhart * Dan Eberhart on Forbes * @DanKEberhart on Twitter * Canary LLC
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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One of the effects of the Coronavirus has been a number of cancelled plans. Have you had to cancel plans due to the pandemic? Today we’ll explore how to get a refund. I’ll also share a CNBC article that I use as a cautionary tale. Then we’ll look at some cosmic opportunities that may arise post-pandemic. And lastly, we’ll listen to a listener question about home mortgages in retirement. We’ve got an action-packed episode, so press play now.
Outline of This Episode * [1:02] Resist the urge to swing at a fat pitch * [5:24] How to get a refund from your canceled plans * [7:13] The cosmic opportunity post-Corona * [10:00] A home mortgage question
Resist the urge to swing at a fat pitch A recent CNBC article came across my feed right before I started recording and I wanted to share it with you all as a precaution. The headline states that investors are betting that 2 of the hardest-hit sectors, airlines and energy, have hit their bottoms. ETF’s including these 2 sectors have increased in the past few weeks. I want to warn you away from betting on the large companies with household names that have taken a beating recently. Just because a company has suffered huge losses over the past few months doesn’t necessarily mean that it will eventually bounce back to its all-time highs. These may seem like huge opportunities but taking risks with your retirement money is a frightening gamble right now.
How to get a refund from your cancelled plans 59 million people have been forced to cancel their plans due to the Coronavirus pandemic. But shockingly, only ⅓ of them expect to get a 100% refund. Have you tried to get a refund from your cancelled plans? If you have and haven’t been successful try these strategies. Start by calling the merchant. But before you call to ask for a refund develop a plan. Consider whether you are looking for a full refund or if you’ll settle for a credit. You may yield better results by being willing to take a credit. If the merchant doesn’t cooperate try calling your credit card company.
The cosmic opportunity post-Corona I’m always looking for positive news coming out of the pandemic. Recently I read an article written by Professor Scott Galloway. If you haven’t heard of Professor Galloway, he is a fun follow on Twitter @ProfGalloway. His article showcases the idea that we can use this downtime that Corona has offered to invest in ourselves. By investing in ourselves and our relationships we are really investing in our future. So ask yourself how can you use this time to improve yourself?
A home mortgage question To pay off the house or to retain a mortgage? That is a common question folks have as they get closer to retirement. There really is no correct answer. The answer is different for every person and it depends on your own personal goals. On the one hand, no one ever laments their paid-off house. And no mortgage means less risk. But… With interest rates being so low you could see much more growth by leaving those funds in the market. Where do you stand on this subject?
Resources & People Mentioned * CNBC article about investing in hard hit sectors * CNBC article about canceling plans * @ProfGalloway on Twitter * Post-Corona, the Cosmic Opportunity on ScottGalloway.com
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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With the recent market volatility, people are looking for financial advisors now more than ever. But how can you choose a financial advisor that’s right for you? I created a PDF with 8 questions to ask a financial advisor when you are looking. I’ll discuss these 8 questions as well as answer 2 listener questions and discuss the retirement headlines on this episode of Retirement Starts Today.
Outline of This Episode * [1:42] What is the best way to take Social Security benefits? * [5:15] A 60/40 question * [11:55] 8 Questions to ask a potential financial advisor * [19:21] Nationwide has decided to have 50% of their staff work from home permanently
How to decide the best way to take Social Security benefits Often in a marriage, the Social Security benefits vary greatly between the 2 partners. One may be much larger than the other. So how should you determine which one to take when? Many people don’t realize that if one spouse has a very small or even no Social Security benefit they are actually entitled to half of their spouse’s benefit. Find out how to decide what to do if one of the Social Security benefits is much smaller than the other by listening to this episode of Retirement Starts Today. You can also check out one of the Social Security calculators on the Social Security website.
How much bond diversity should you have in your bond portfolio? I often call the 60-40 portfolio the swiss army knife of portfolios for a good reason. The 60% in stocks is for growth and the 40% in bonds is for short term spending. A listener asks how diversified their bond portfolio should be. I think that just like your stock portfolio, your bond portfolio should be as diversified as possible. It should include short term, intermediate-term, and long term bonds. These types of bonds have different levels of volatility.
8 Questions to ask a financial advisor With the recent market volatility, people are looking for financial advisors now more than ever. But how do you find the right financial advisor to meet your needs? I created a free PDF of questions you can ask potential financial advisor candidates. Included are these questions:
- Are your questions truly in my best interest?
- Will your recommendations be focused in one area or will they be comprehensive?
- Do you have the knowledge and experience to help me achieve my financial goals?
- How many clients do you serve and how does their situation compare to mine?
- How often will I hear from you?
- What will my total investment expense be?
- Will you help me solve any financial problems I may encounter?
- Where do you keep my money and how can I see it?
Download the PDF to see the full questions and my answers.
A Fortune 100 company plans to have 50% of their staff work from home permanently This pandemic has shown that many people can do their jobs from a home office. One company plans to continue this trend in the long term by having 50% of their staff work from home. This is a huge benefit for the company and will save them a lot of money on commercial real estate, but the potential benefits for employees looking for flexibility is even greater. Many people looking to retire are really looking for time flexibility. If your company offered you a semi-retirement option where you could work from home and have flexible hours would you take it? How many more working years would that afford you? This may be the wave of the future.
Resources & People Mentioned * Social Security calculators * Download your free PDF with the 8 questions to ask a potential financial advisor * Investment News article about people seeking financial advisors * Biz Journal article about Fortune 100 company closing offices
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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On this episode of Retirement Starts Today I want to share with you the retirement questions I received through my Friday Office Hours. Office Hours is an online space where I am available to answer any financial questions that come to mind. Over the past 2 weeks, we’ve had a great turn out with about 50 people joining each session. If you want to come to Office Hours make sure you are signed up for my Every Day is Saturday newsletter to get the invite. The next Office Hours session is on Friday, May 1 at 10:30 am CDT. Listen in to hear these retirement questions from my Office Hours session on April 24, 2020.
Outline of This Episode * [1:22] The solvency of the PBGC * [7:00] Do I still recommend delaying Social Security until age 70? * [15:34] How will the new money being pumped into the economy affect inflation? * [18:15] Tax diversification * [22:14] Should deflation be a worry?
What do I think about the solvency of the PBGC? The PBGC or the Pension Benefit Guarantee Corporation is a private insurance company that insures pensions. This corporation is a safety net for private pension plans. Many people are choosing to cash out their pensions in favor of a lump sum. The lump-sum payments are artificially high right now due to low interest rates which and this fact has put extra stress on the PBGC. Whether or not the PBGC remains solvent should not affect your decision to take a lump sum or to keep your pension.
How you should decide whether to take a lump-sum payment or a pension The solvency of the PBGC shouldn’t play much of a role in your decision to take a lump sum or an annuity, instead, you should first consider other factors. First, consider your lifestyle and then do the math, after you have done both of these things then you can factor in whether you think the PBGC will remain solvent. You should really think about how much flexibility you need with your money. If you need a lot of flexibility the lump sum is the right choice for you. But if you are risk-averse then the annuity is your best bet. You’ll also want to factor in your own longevity and how much you value simplicity. Next, you’ll want to factor in the math. Listen in to hear all the factors that you should consider when making this decision.
How will the new money being pumped into the economy affect inflation? We have been printing money for years and that should have led to inflation but it hasn’t yet. This also should have led to high gold prices but that hasn’t happened either. None of the things are happening the way the textbooks told us they would. This may be due to technological advances leading to deflation or it could be because the dollar is the reserve currency of the world. Learn how to outgrow inflation by listening in.
A strategy for tax diversification In an ideal world, you would start your retirement with 30% of your assets in a Roth IRA, 30% in tax-deferred accounts like IRAs, and the last 30% in a brokerage account. This would give you a lot of flexibility to live life how you really want. Unfortunately, most of us don’t have our assets perfectly distributed so we need to consider how we can diversify our assets before we reach age 72. It’s important to figure out what your RMD’s will be and planning your taxes. Find out about tax diversification and the answers to many other questions on this episode of Retirement Starts Today.
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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You may have gotten your stimulus check last week, but whether or not you have received the funds you may still have stimulus check questions. On this episode, I’ll answer several common questions surrounding the stimulus checks. I’ll also highlight some positive news for most of us. Positive news is hard to find today so let’s relish it a bit! Listen in to get your stimulus check questions answered and bask in the glow of some happy news.
Outline of This Episode * [0:22] will you be benefitting from auto insurance discounts? * [4:45] Did you receive your stimulus check this past week? * [6:15] Questions surrounding the stimulus check
Is your car insurance going to give you money? When I see good news I want to spread it far and wide, especially during these trying times. Since there has been less traffic on the roads there have been fewer car accidents which, in turn, has led to fewer car insurance claims. Many insurance companies have decided to pass their savings back to their policyholders. Listen in to hear whether your insurance company is one of those that are offering discounts or refunds.
We all have stimulus check questions The Senate passed the stimulus package bill in record time and the treasury started rolling out the money even faster. Our government wanted to get the money in the hands of the citizens as soon as possible. We all have questions about the stimulus checks that we will be receiving soon. So, I thought I would do some digging since there is so much information out there it can be difficult to determine what is true and what is false.
Will this stimulus check eat into my 2020 tax refund? One of the biggest questions people have is whether this federal benefit is simply an advance on next year’s tax refund. Thankfully I was able to find a reliable source that could help me answer this question. The answer is no. This is considered a special tax credit and is simply an addition to anything you might have otherwise expected.
Will this money count toward my taxable income for 2020? The stimulus funds aren’t considered income so the money is not taxable and it won’t affect your tax bracket for 2020. Some people also wonder whether they will still get a stimulus check if they don’t normally receive tax refunds. Eligibility for a refund check is determined by your 2018 or 2019 AGI. If you look at line 8b on your 2018 1040 or line 7 on the 2019 tax return you will see your AGI. You can check the status of your refund on the IRS website. Did you receive your stimulus check this past week? Listen in to hear more questions about the stimulus money answered.
Resources & People Mentioned * State Farm issuing $2 billion in dividends * Auto insurance companies offering refunds * Bloomberg article about travel and work * Only use the IRS website to check on your stimulus payment * Money article on stimulus checks
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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We all know that scammers are out there looking for the next opportunity to prey on their targets. The Coronavirus isn’t just a worldwide pandemic, for scammers its an opportunity to try new scams. On this episode of Retirement Starts Today you’ll learn how to spot a Coronavirus scam, stimulus check scam, and a grandparent scam. I also have lots of links to resources for you to learn more about this topic so be sure to scroll down to the bottom of this page when you’re done listening.
Outline of This Episode * [1:02] Thanks for coming to the webinar * [6:02] How to Coronavirus scams * [13:22] Stimulus check scams * [15:07] Grandparent scams
I’m holding office hours Since we are all experiencing heightened stress and worry during this pandemic I thought I would try something new. On Friday 4/17 at 10:30 am CDT I’m holding office hours so that we can chat and discuss all things retirement. I’ve had many attendees during my recent webinars, but they aren’t very interactive. During this Zoom meeting, you’ll be able to ask questions. If you are nearing retirement and have worries about the virus, the markets, or anything retirement-related this will a great place to bring your questions. So please join me here on Friday 4/17 at 10:30 CDT
The Coronavirus is a great time for scammers Anytime is a good time for scammers, but people are even more susceptible to scams during times of stress. The Coronavirus has brought stress upon us all so scammers are having a field day. A plethora of new scams have sprung up during the past few months. These scams range the gamut from apps with viruses, phishing emails, Robo phone calls, and so many others. Listen in to hear how to identify a Coronavirus scam and find out what you can do to protect yourself and your loved ones from these tricksters.
Stimulus payment scams The thought of $1200 per person has scammers ready to pounce. Your stimulus check is not in the mail. Paper checks won’t arrive until May. If you receive a paper check for more than you were expecting it’s probably a scam. Remember the IRS call, text, or email you to ask you for your bank account information. If you need information about your stimulus check go directly to their website irs.gov/coronavirus.
Grandparent scams with a new Coronavirus twist Grandma, I’m sick in the hospital, please wire money right away! Grandpa, I’m stuck overseas and can’t get home, please send me money! These old scams can pull at the heartstrings even more in these challenging times. You are probably savvy enough not to fall for these types of tricks but maybe someone you know and love could be easy prey. Do them a favor and educate them about these tactics. Listen in to hear about all the different types of Coronavirus scams and what you can do to help the ones you love not fall for them.
Resources & People Mentioned * My Office Hours link - Friday 4-17 at 10:30 am CDT * Physician on Fire article - 5 Ways to Spot Investment Scams * CNET article - Coronavirus stimulus check scams * IRS website - IRS Coronavirus information * FTC article - Coronavirus scams part 1 * FTC article - Coronavirus scams part 2 * FTC article - Grandparent scams in the Coronavirus age
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Everyone is talking about buying the dip, but what is the best way to do that? I’m not an investment advisor, but since the stock market has taken a serious downturn, now may be a good time to consider your overall investment strategy. That’s why I’ve invited investing expert, Lawrence Hamtil, co-founder of Fortune Financial Advisors, to chat with me about the ups and downs of investing after the recent stock market collapse. Listen in on this discussion to hear the pros and cons of buying the dip, investment timelines when buying today, and exceptional industries that have stood the tests of time.
Outline of This Episode * [1:22] He does custom portfolios for clients * [2:35] What should people look for when buying the dip? * [4:18] What kind of timeline should you consider when investing today? * [5:44] How to pick and choose? * [7:50] How much time should you spend studying the stocks before investing? * [11:05] What do some of the exceptional industries have in common?
What should people look for when buying the dip? Now that the stock market has dropped everyone is talking about buying the dip, but how should an individual investor approach this? Lawrence recommends sticking to your investment strategy. You need to have an idea of how much of your portfolio you want committed to a particular sector. Once you establish that then it is important to stay within the confines of your plan and rebalance as necessary. He points out that sometimes rebalancing can be a challenge, but the best time to rebalance is when your portfolio is off-kilter. Stay within your target allocations rather than focusing on the daily moves of the market.
What kind of timeline should you consider when investing today? Investing in today’s market can be a bit nerve-wracking, but in the long-term, it can really pay off. The stocks of many large corporations are down 20-80%. But that just means that you are getting more for your money now than just a few months ago. The investment that you make today won’t immediately bear fruit and it could take up to 5-10 years to really pay off. Rather than trying to pick individual winners and losers a better strategy is to make broad sector bets.
How much research should you do before investing? It is important to understand how a company drives revenue before you purchase their stock. Some important questions to ask are: How do they compete? How does the company react to crises? And how does buying that stock fit into your individual thesis? Don’t just study the company before you invest. It is important to study the behavior of the company while you hold the investment. Listen in to hear what else you can consider when investing in individual stocks.
What do exceptional industries have in common? We all know that many companies’ valuations have taken a nosedive, but there are some exceptions to note. Tobacco, food, and defense are some examples of industries that are insulated. Some of these are historically undervalued or underappreciated. Think about what can be learned from this downturn. How will this affect your investment strategy going forward? Keep your eyes open to see which companies survive and why.
Connect with Lawrence Hamtil * @LHamtil on twitter * Fortune Financial Advisors
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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With the Coronavirus situation bringing so much change into our lives, I decided to bring an abrupt conclusion to the Living Off Your Savings series. Instead, today, we’ll talk about some of the changes that the Coronavirus legislation will bring. Now that President Trump signed the Coronavirus stimulus package into law I wanted to give you an idea of what you can expect from this landmark legislation. Join me on this episode of Retirement Starts Today to discover how the Coronavirus stimulus package affects you.
Outline of This Episode * [3:58] Who is eligible for a stimulus check * [8:02] Take advantage of tax-loss harvesting * [12:10] RMD’s are waived in 2020 * [13:43] Waiver of early IRA distribution penalties * [15:44] 401K loans have changed * [16:40] Charitable deductions have a change * [18:10] The COVID19 test and vaccine will be covered by health insurance
Join me for the Living Off Your Savings webinar! I wanted to make sure to fulfill my promise of having a webinar to cap off the Living Off Your Savings series especially since the series was shorter than expected. You’ll have 2 options to join the webinar. Option A takes place on April 2 at 10:30 AM CDT. Option B is April 2 at 2 PM CDT. This webinar will cover how to turn your accumulated savings into monthly retirement income. We’ll cover case studies, portfolio breakdowns, and how to have an amazing retirement even in the midst of a market meltdown! Sign up soon since we are already at ⅔ capacity.
What you should know about the Coronavirus stimulus package Have you filed your taxes yet? If you haven’t, pay attention. If your income was over $150,000 in 2018, but under in 2019 then file immediately. If your income was under $150,000 in 2018 but over in 2019 and you haven’t filed then wait to file. The stimulus checks that are coming are based on your AGI in 2018 or 2019 if you have already filed.
Those stimulus checks will be $1200 per adult and $500 for each dependent child. If you filed jointly the income threshold is $150,000. The stimulus checks will be directly deposited into the bank account in which you received your 2018 return. Let’s hope that it’s still open!
How a retiree can put their stimulus check to good use If you are losing sleep at night about the stock market then take this money and put it where it is needed most -- put it in a savings account, checking account, or stash the cash under the mattress. Do whatever will help you sleep at night. If you aren’t having trouble sleeping and you know where your income is coming from, think about making a Roth IRA contribution. If you have the stomach for it and don’t need it for a while, consider using that check for long-term investments. Listen in to hear a great way to teach the grandkids about the power of compound interest.
How else could the Coronavirus stimulus package affect your retirement * You have until July 15th not only to file taxes, but you can also make your 2019 IRA and HSA contributions. * RMDs are waived for 2020 * The IRA distribution penalty has been waived for 2020 in some cases * 401K loans have expanded provisions * You can now take charitable deductions of up to $300 * Tests for the virus and the eventual vaccine will be covered by health insurance
Listen in to hear all the details on how this landmark stimulus package could affect you and your retirement.
Resources & People Mentioned * Living Off Your Savings webinar April 2, 10:30 AM CDT * Living Off Your Savings webinar April 2, 2 PM CDT * Jeff Levine on Twitter @CPAPlanner * CNBC article on tax filing * Bloomberg article on how Coronavirus will change the world
Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap
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Before you retire you’ll need to think about how to turn your assets into retirement income. Today I’ll share with you my 2 favorite ways to turn your assets into retirement income. You’ll hear about the pros and cons of the 4% rule. I’ll also teach you about the guardrail strategy. After listening, you’ll be […]
I promise I did not crash the market just to give you guys an example of a bear market for this episode! But I guess this episode is releasing at the right time. As of this recording, we are not in a bear market yet, but it looks like we’re heading there. It doesn’t really […]
Now you know what your spending in retirement will be, but how do you know where and when to withdraw money? Welcome back to the second episode in the Living Off Your Savings series. Last week we established how much you needed to retire and you learned how to create a retirement budget. Today we’ll […]
Have you created a retirement budget? That’s what we’re going to cover this week on Retirement Starts Today. The month of March brings a change in format for us. We are going to try a monthly series format. The theme of this month’s series is Living Off of Your savings. For the entire 5 week […]
Last year 14 million Americans paid for tax prep that they could have had for free. Are you one of those people? Today, we’ll take a look at why people are spending money they don’t need to and how to rectify that. I’ll also answer some insightful listener questions concerning legal documents for retirees, the […]
I’m sure you’ve seen Tesla all over the news lately, today we’ll think about what we can learn from its parabolic trajectory. We’ll also cover additional questions about the SECURE Act and I make a correction about something I said about the SECURE Act as it pertains to minor beneficiaries. Then we’ll cap off the […]
Do you know how to avoid penalties on early retirement withdrawals? Is the 4% rule confusing to you? On this episode of Retirement Starts Today 2 astute listeners have some fantastic questions for me to answer today. You’ll want to listen in to hear 3 tips on how to take early retirement without the early […]
Welcome back to another episode of Retirement Starts Today. On this episode, I review the questions that were asked in both sessions of the SECURE Act webinar. You’ll want to listen even if you attended a webinar session since you didn’t hear the questions that were asked in the other session. I really enjoyed teaching […]
Now that the SECURE Act is the law, we need to rethink our estate planning strategies since it has effectively killed the stretch IRA. With the death of the stretch IRA, many people are scrambling to figure out what the best way is to leave their heirs their IRA’s. Fortunately, estate attorney and host of […]
You know that you need to have a diversified portfolio with both stocks and bonds, but do you know how bonds work? On this episode of Retirement Starts Today we have 2 fantastic listener questions that deserve detailed responses. John wants to know how bonds work before he begins investing in them and George has […]
Webinar #1 sign up – 11AM CST, January 23rd Webinar #2 signup – 3:30PM CST January 23rd The recently passed Secure Act brought about the most significant changes to retirement planning in a decade. In this free live training, you’ll learn the key points that could affect your retirement plans, your parent’s retirement accounts, and […]
Webinar #1 sign up – 11AM CST, January 23rd Webinar #2 signup – 3:30PM CST January 23rd The recently passed Secure Act brought about the most significant changes to retirement planning in a decade. On this episode, you’ll learn the key points that could affect your retirement plans. Make sure to listen to the end […]
Welcome back to Retirement Starts Today and welcome to 2020! The New Year is a time when many of us consider setting goals or resolutions and focus on self-improvement. I don’t have any new goals for 2020. Instead, I am looking to improve where I failed in 2019. Rather than feeling defeated by my resolution […]
Originally broadcast June 2019. I recently had 2 fantastic questions about retirement strategies come to my inbox. Both questions require thoughtful, detailed answers. So on today’s episode of Retirement Starts Today, I focus on carefully answering both of these questions. On this episode, you’ll learn how to tweak an already fantastic retirement plan and turn […]
Originally broadcast June 2018 We all work hard to plan for retirement. In any such endeavor, it’s good to learn from other people’s triumphs and mistakes, so I’d like to share six retirement mistakes I see all too frequently. The best part is, they’re easily avoidable!
Originally broadcast in May of 2019 Do you have a retirement planning process? Do you know how much you need to retire? Have you thought about what the purpose of your money is? Jason Parker from Sound Retirement Radio is my guest today and is here to discuss the steps you need to take to […]
Originally broadcast April 2018. While becoming a 401k millionaire may seem like a crazy, out-of-reach goal, it’s not that hard to become a 401(k) millionaire if you have the self-discipline to stick with a long-term plan.
Podcasts! I love them (and I’m guessing you do too). This week I’m sharing my favorite retirement podcasts that will educate and entertain you all the way to your ideal retirement.
Are bonds worth buying as a way to help keep a balanced portfolio in retirement? You may have read in the news lately about negative yield bonds. One listener has, and he is concerned that if they aren’t paying much interest then maybe they aren’t worth buying. I’ll tell you my thoughts on bonds as […]
We make financial choices harder than they need to be. That’s why Peter Lazaroff wrote the book, Making Money Simple. He joins me today to discuss the theme of his book. We reflect on why we make money decisions so complicated when the beauty of finance lies in simplicity. You’ll be interested to hear why […]
Have you heard about the coming changes to Medicare in 2020? On this episode of Retirement Starts Today, we’ll say good-bye to the donut-hole and take a look at other relevant changes to the retiree health insurance program. Then in the retirement headline segment, I cover a Forbes article that highlights a proposal on lowering […]
You may not have considered the importance of having friends in retirement, but they add more than just social value to your life. On the Retirement Headlines portion of the show, I read from a Forbes article that discusses the value of having an active social life in retirement. You’ll learn why an active social […]
It’s Roth conversion season! What does that mean for you, and how can you take advantage of the current tax cuts to get the most out of your money? On this episode of Retirement Starts Today Radio we’ll get down and dirty with Roth IRA’s and find out what happens if you earn even $1 […]
Have you considered a medi-share or health sharing plan in retirement? Shary asks why I’ve never mentioned them before. So on this episode, I open up and share what a health sharing ministry is and how I feel about them. Our second listener question comes from Don who asks about owning company stock in retirement. […]
If you turn on the cable news there is only one thing you will hear about: the possible impeachment of President Donald Trump. This is not a political show. I don’t discuss politics on this show or in my practice. But we do need to discuss the impeachment possibility because you need to be prepared […]
Are annuities for retirees a good option? Nes wants to learn more about annuities and how they work. But before I answer that question, first Bruce asks how he can calculate his exact social security benefits. If you have a question for me that you would like answered on the show, you can email me […]
If you have been thinking of retiring early, you know that one of the biggest factors is health insurance before Medicare. One listener asks whether Obamacare or COBRA would be the best option. Another listener writes in with a question about investing his home equity in the stock market. You’ll hear my responses to these […]
Do you understand how to use the bucket strategy for retirement? One listener has a question about how to use the bucket strategy and whether or not it is too conservative. I also answer another listener question about the 5-year rule for Roth conversions. And finally, we discuss a retirement headline about the shift from […]
What retirement lessons can you learn from a 4-hour daily commute? On this episode of Retirement Starts Today I share an article I found on CNBC. The article isn’t directly about retirement but there are lessons we can learn from it that apply to life and retirement. I also answer a listener question about Roth […]
Do you know what to do if you fall victim to a Social Security scam? In the Retirement Headlines segment, we’ll discuss a recent Market Watch article that shares some excellent tips for protecting yourself against social security scams and advice on how to minimize the damage if you fall victim to one. But before […]
Have you heard of the FIRE movement? In this episode, you’ll hear why I hate it. We’ll also discuss a listener question about spousal Social Security benefits and a CNBC article that compares retiring at different ages. You’ll learn why it is important to work for as long as possible. Listen to this episode to […]
Do you know what you need to do to travel or retire abroad? We asked and you answered. The number one thing that our listeners would like to do in retirement is travel. That’s why I found financial travel expert, David Jacoby from RemoteFinancialPlanner.com to help us understand all the nuances of travel and living […]
If you’ve seen then news lately, then you know that there are big changes in Medicare supplement plans coming in 2020. This is why I’ve invited Danielle Roberts on the show today. Danielle is a Medicare Expert with Boomer Benefits. Boomer Benefits is a Medicare broker that can help you navigate the complex world of […]
On episode 100 I answer listener questions including what to do about the rising costs of long-term care insurance premiums, what to do with old annuities, and SIPC protection. Thanks to all of you listeners for 100 amazing episodes! I have learned so much alongside you all. Your questions and feedback on the show have […]
Are you ready to learn about portfolio distribution? I’ve got the perfect visual for you! Listen in to hear how to rebalance your portfolio in retirement. Thank you all for sending in your rebalancing spreadsheets! Several listeners sent in their own rebalancing spreadsheets and they all were fantastic. I’m working with an Excel wizard and […]
On this week’s episode of Retirement Starts Today we’ll discuss whether donor-advised funds are a good fit, tax planning in retirement, and answer a listener question about Roth IRA’s. Have you taken our listener survey? If you are signed up for the Every Day is Saturday email list then you’ve probably seen the listener survey. […]
Do you have multiple retirement accounts lying around and don’t know what to do with them? On this episode of Retirement Starts Today we answer 2 listener questions. One is about having multiple retirement accounts with multiple custodians, the other is about how to withdraw from a portfolio in retirement without adding additional risk. Then […]
Charitable giving in a tax beneficial way has gotten a bit more complicated with the new tax law. Of course, we donate to charities to help those less fortunate, but it helps when we receive tax benefits as well. CPA, John Madison, joins me to discuss how to reap the most tax benefits from your […]
Is your Social Security timing losing you money? Millions of Americans don’t ideally time their Social Security and end up losing thousands of dollars. On today’s episode of Retirement Starts Today I focus on 3 articles. The first one focuses on Morning Star’s star ratings. You’ll learn how and why they are getting an overhaul. […]
On this episode of Retirement Starts Today, we’ll discuss the pros and cons of target date funds as well as Vanguard’s managed payout fund. You’ll learn exactly what a target date fund is and why they are the preferred vehicle of the majority of 401K savers. We’ll discuss an Investment News article that warns of […]
I recently had 2 fantastic questions about retirement strategies come to my inbox. Both questions require thoughtful, detailed answers. So on today’s episode of Retirement Starts Today, I focus on carefully answering both of these questions. On this episode, you’ll learn how to tweak an already fantastic retirement plan and turn it into an epic […]
When planning your retirement lifestyle it’s a good idea to think about how to add exercise into your routine. Many people who haven’t made exercise a regular part of their lives may think that it will be difficult but retirement is a great time to start a new lifestyle. Fitness expert, Pete McCall, joins me […]
Are you planning to keep up your life insurance in retirement? One listener asks if I think it’s necessary. I also answer another question from a listener about diversification. As you approach retirement, you may want to rethink your risk tolerance. Do you feel secure in your asset allocation? Many people prefer to stay safe […]
Do you have moldy money hanging out in your accounts? I’m not talking about the cash that got wet and stuck in the back of a drawer. Moldy money is the topic of today’s Retire Ready segment, you’ll want to listen to find out why you don’t want to keep moldy money around. You’ll also […]
The father of life planning, George Kinder, joins me on this episode of Retirement Starts Today Radio. George trains financial advisors to look at the softer side of retirement planning, at what he calls life planning. He helps financial advisors teach their clients how to live life to the fullest in retirement. Life planning is […]
Do you have a retirement planning process? Do you know how much you need to retire? Have you thought about what the purpose of your money is? Jason Parker from Sound Retirement Radio is my guest today and is here to discuss the steps you need to take to begin considering your retirement. Jason has […]
Podcasts! I love them (and I’m guessing you do too). This week I’m sharing my favorite retirement podcasts that will educate and entertain you all the way to your ideal retirement. Also in today’s episode of Retirement Starts Today, I will help you understand reverse mortgages. You’ll discover what they are and whether they are […]
On this episode of Retirement Starts Today I tackle the age-old question: should you sell in May and go away? This is a question you may hear each April and May so we’ll talk about where it came from and why people say it. We’ll also discuss a big idea from Nobel laureate, Richard Thaler, […]
It was a Thursday afternoon in July of 2017. I had just finished at the gym and checked my phone on the way to my car – over a dozen missed calls – my immediate reaction was, “Who died?”… Rewind to the fall of 2016, my wife & I had decided to start the process […]
You know that the key to investing is having a diversified investment strategy and on this episode of Retirement Starts Today you will hear how people that decided to switch gears during the crisis ended up losing out. We will also discuss the Lyft IPO and why betting on individual stocks is no safer than […]
Will retiring baby boomers crash the stock market? Are you part of the looming baby boomer retirement crisis? According to some experts, baby boomers will crash the market when they retire. Find out my take on this by listening in. You guys probably don’t want to hear another thing about taxes after paying Uncle Sam […]
Welcome to Retirement Starts Today Radio, a retirement podcast. On today’s episode, we take a look at your children. Will they be the downfall of your retirement plans? We all love our kids, but they could ruin our financial planning for retirement if we don’t create some boundaries. We will also discuss a new retirement […]
What could we learn about ourselves if we took a one-week “dry run” at retirement? Your host Benjamin Brand CFP®, RICP® is under the weather, so we are revisiting this idea of sitting home for a full week and doing absolutely nothing. What can be learned about your future, and how would your plans for […]
Are you ready for your kids to start learning about finances? Well, don’t send them to me! This may surprise you, it certainly surprised a client of mine that asked me to work worth their children. I specialize in working with baby boomers who are getting ready to retire and I don’t work with young […]
Have you ever considered buying fraud insurance for your portfolio? How about moving abroad to save on health care costs? On this episode of Retirement Starts Today we go over articles that tackle these questions as well as why many financial firms are giving back money to their clients. Listen to this episode of Retirement […]
Have you ever heard of the term forcing mechanism? You may not have since it is a scientific term. But today you will learn how a forcing mechanism can improve your retirement. But first, we will discuss 2 headlines for you to think about. The first one will make you wonder what you should be […]
In this episode of Retirement Starts Today, you will learn about scams targeting seniors, what not to do to replace long-term care, and how the sharing economy may help you stay independent longer. You will also learn whether you should invest in the latest marijuana investment craze. Listen to this episode of Retirement Starts Today […]
Have you heard of the grey divorce phenomenon? Many of us have the vision of walking into retirement hand in hand with our spouse. You know that vision, where you walk off into the sunset and live happily ever after. What happens instead if you face a divorce in retirement, can there be a happily […]
When is the last time you checked up on your employer-sponsored retirement plan? Dealing with 401K’s is a daunting task, people have so much on their plates already. Learning about all the fees and costs can be a bother. But it is important to know whether your employer-sponsored retirement plan is up to snuff. On […]
Are you familiar with the term “State of domicile?” You’ll be hearing it more and more as our world becomes more and more digitally connected and people become more mobile. Retirees should especially pay attention to the issue because it could save them thousands of dollars. If you’re interested in possibly changing your state of […]
There are many things we can learn from the time usage and happiness of Millionaires – not just how to make money and enjoy a better lifestyle. This episode brings you a handful of insights from a Harvard Business School study that looked into how millionaires use time, particularly when it comes to the level […]
There are many people who have impacted the way the world of investing works – but none in such a game-changing way as John Bogle. John founded Vanguard, a discount investment company specializing in index funds, in 1976 and was harshly criticized for it. But his approach has truly changed the way investments happen today. […]
Most people have retirement questions – and this podcast is aimed at helping answer them – so I’m thankful when I get to do these “Q&A” sessions on the podcast. In this episode, you’re going to hear 4 questions from listeners like you. The first one highlights my advice to those who do NOT contribute […]
What would you do if a $90,000 bill showed up in your mail a few weeks after your parents passed away? Can creditors pursue children for the medical expenses of their parents? We’ll get into it on this episode. But first, I want to address what’s going on in the markets. It looks like there […]
Even though by all counts, 2018 was a terrible year for investing, you can make 2019 your best year ever. I can say that so confidently because I believe that it doesn’t depend on what will happen in the markets or economy. It depends on you. On this first episode of 2019, I want to […]
The calendar is almost done for 2018 – and I’ve been thinking about podcast goals for 2019. Great things have happened with the show in the past year and the future looks very bright. I’ve enjoyed the interaction I’ve been able to have with you – the loyal listeners of the show – and look […]
As you might imagine, tax strategies for retirees are not the same as those for non-retired investors. Not only do typical considerations like income brackets make a significant difference there are also changes in the tax laws that impact retirees differently than others. In this episode, I dive into specific situations and opportunities retirees need […]
One of the first books that got me thinking differently about finances and helped me believe that becoming wealthy was within reach was “The Millionaire Next Door.” The impact of the book on my life is hard to describe and is one of the many reasons I invited Sarah Fallaw to be my guest on […]
Preorder Chris Hogan’s new book: Everyday Millionaires: How Ordinary People Built Extraordinary Wealth―and How You Can Too I’ve been a fan of Dave Ramsey and the entire Dave Ramsey team for many years. My wife and I have coordinated several Financial Peace University classes at local churches and I was even one of Dave Ramsey’s Endorsed […]
Recorded LIVE at FinCon 2018 (Financial Blogger’s Conference) in Orlando Florida. Advisors share their worst investments and the most shocking investments they’ve ever seen. Later on, the advisors discuss why investors are so drawn to speculative investments. Your hosts: Me – You know me 🙂 Roger Whitney – Host of The Retirement Answer Man Chad […]
Our guest today is Jamie Hopkins. Jamie and I have a unique connection, as Jamie was one of the professors for my RICP designation (Retirement Income Certified Professional). Listen in as Professor Hopkins and I discuss: Why he choose retirement planning and educating financial planners over other disciplines. What is an easy way to boost […]
In today’s episode, we tackle part two of our two part series – Working beyond age 70. Check out part one – Health Insurance and Social Security: Retirement Headlines!! We fired up the Retirement Starts Today way-back machine to the year 2016 – when companies were tripping over each other to get out ahead of […]
In today’s episode we share the results of our first annual listener survey, we check out breaking news in our “retirement headlines’ segment, and we tackle part one of our two part series: ‘Working beyond age 70’. — Thank you to those of you that participated in the survey – It is my hope that […]
In our 2018 listener survey, we learned that over 50% of our listeners listed “traveling” as the #1 activity that excites them about retirement. When talking about traveling in retirement, the topic of timeshares often isn’t far off. Anecdotally, our clients are happy with their timeshare purchases, but that doesn’t mean horror stories aren’t out […]
Click here to take our 2018 listener survey Immediate Annuities: Friend or Foe? A few weeks ago, a reader named Richard emailed me with this exact query: “Is having a non-inflation indexed payment stream desirable? Are there other better options?” It didn’t surprise me at all that Richard wrote in with this question. If you […]
With around 10,000 baby boomers retiring in the US every day, the investment industry is always trotting out the latest and greatest investment offerings to help retirees solve the following riddle: How do I turn my accumulated savings into consistent retirement income? Strategy Shares Nasdaq 7HANDL Index ETF (HNDL) is the latest offering attempting to […]
How to Deal with Increasing Long Term Care Insurance Premiums Question from listener: “My Long Term Care insurance premiums just went up by 70%! What should I do?” Long Term Care (LTC) presents a sticky dilemma. It seems to be a responsible choice that will provide some peace of mind about your future, but it’s […]
Medicare is going broke!! Time to panic! Everybody pack your bags and move to Canada because the the entire country is going broke…. Or is it?…. We’re going to break it all down and help you make sense of the headlines. A Washington Post article made waves this week, stating that a crucial Medicare trust […]
The Top 6 Easily Avoidable Retirement Mistakes We all work hard to plan for retirement. In any such endeavor, it’s good to learn from other people’s triumphs and mistakes, so I’d like to share six retirement mistakes I see all too frequently. The best part is, they’re easily avoidable! #6: Not getting the most out […]
Our guest today, Roger Whitney, is the host of the popular retirement planning podcast The Retirement Answer Man and author of the new book Rock Retirement. Roger has over 27 years experience walking life with clients into and through retirement. Listen in as Roger and I discuss: Why do we tend to draw ‘inside the lines’ […]
When looking for that perfect house to retire to, many retirees discover that getting a mortgage in retirement is different than getting a mortgage while working. Once we retire, our wages (the primary mortgage underwriting qualifier) stop and the source of our income radically changes. Many recent retirees complain that once their paychecks stop, their banker starts to look at them differently!
Is Selling Your Life Insurance a Good Idea? Recently, I was sitting in our office waiting anxiously for our Keurig machine to do its job when I saw a commercial that piqued my interest. The commercial was about life insurance, but it wasn’t your typical sales pitch. It was a service touting the benefits of […]
5 Easy Steps to Becoming a 401k Millionaire While becoming a 401k millionaire may seem like a crazy, out-of-reach goal, it’s not that hard to become a 401(k) millionaire if you have the self-discipline to stick with a long-term plan. Fidelity recently shared this idea in a blog post on the top habits of 401(k) […]
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Warren Buffett is a legendary investor, a business tycoon, and a hero for many who work in the financial services industry like I do. He’s a man with principles – a man of wisdom. He’s also one of the richest men in the world. But despite his riches, Buffett still lives in the same modest […]
The post Warren Buffett is Never Going to Retire. Should You? appeared first on Retirement Starts Today Radio.
2018 Changes for Social Security and Medicare Social Security Changes include: Social Security recipients will receive a 2% increase in 2018, which amounts to approximately $27 per Social Security recipient. We won’t know until later this year, but this increase could be offset by rising Medicare Premiums. This increase may or may not effect Medicare […]
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Fritz Gilbert (a friend of the show) reached out to me with an interesting question a few weeks ago. Basically, he asked if I would be interested in participating in an ongoing conversation amongst retirement bloggers about their personal retirement withdrawal strategy. Of course, I was more than happy to toss my hat in the […]
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When my grandparents were just married and starting to build wealth, they put a lot of faith into a financial advisor. They met with their advisor monthly and leaned on him for the bulk of their financial and estate planning. Unfortunately, only one of my grandparents was paying much attention during their regular meetings. As […]
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You’ve worked and saved your entire life, and you’re finally ready to retire. Unfortunately, your foray into investing and building wealth doesn’t end the second you hang up your hat. For most people, the next step involves hooking up with a qualified financial advisor that will help you maximize your retirement funds – and […]
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No matter who you are, where you live, or how long you’ve been married – you never think it will happen to you. No amount of planning is adequate to prepare for the worst day of your life – the day your spouse dies. But just like life itself, death happens…often when we least expect […]
The post {Guest Post} Saying Goodbye to Richard, Lorraine’s Story appeared first on Retirement Starts Today Radio.
You’ve paid into social security for your entire working life, and you’re ready to reap what you’ve sewn. By claiming your benefits early, you can enjoy greater income now and and let your investments grow untouched for a few years more…… Right?! Year after year, millions of people choose this fast and furious approach to their […]
The post Why Taking Social Security Early Could Be a Grave Mistake appeared first on Retirement Starts Today Radio.
– Originally posted 08/24/2015 – It finally happened…. The 10% market correction the financial pundits have been clamoring about for years finally arrived this week. What does this mean for your retirement plan? Where will you take investment income next month? When will the market come back? How long will this […]
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Are you ready to head down the path to an amazing retirement? We are tackling the topics on the mind of the modern retiree, on Retirement Starts Today Radio. Recent Posts Do I Need Two Financial Advisors? 5 Reasons to Work One More Year Why You Shouldn’t Hire Me As Your Financial Advisor The Fiduciary […]