The Planning For Retirement Podcast
By Kevin Lao
Here are some topics you will learn about:
- Social Security
- Retirement Income Planning
- Roth Conversions
- Tax Planning
- Charitable Giving
- Investment Strategies in Retirement
- Estate Planning
- Long-term Care Planning
- Medicare
- Required Minimum Distributions
- Retirement Mortgage Strategies
- And even some behind the scenes into building Imagine Financial Security
I hope you enjoy the show!
The Planning For Retirement PodcastAug 27, 2022
Ep. 43 - Stop Planning for a “Normal” Retirement Age
Two of our recent client meetings were with folks who retired much earlier than they had anticipated.
So, I started to go down a rabbit hole of research and thought this would be a great episode to encourage you all to STOP planning for a “normal” retirement age in your assumptions!
Even if you do end up working until 65 or 70, you should not build that into your calculations when planning for retirement. Instead, whatever you think your expected retirement date is, push it forward 5 years. So if you want to work until 60, push it to 55. If you want to work until 70, push it to 65.
The point is, that you cannot control what you cannot control.
It then got me thinking about assumptions for retirement planning. And how the inputs/assumptions we, as financial planners, put into the calculations make a huge difference.
So, what I thought I would do for the next several episodes is go through each of those inputs (retirement age, retirement spending, inflation, longevity, investment returns, and taxes) to coach you through some of those important considerations before making certain assumptions. Also, to point out mistakes that I’ve seen in my career practicing retirement planning.
I hope you enjoy this episode, the FIRST-ever time we are publishing a video recording! (*Welcome to 2024 😁)
Thanks for tuning in.
-Kevin Lao
Links:
USA Today Article - Most Americans Retire Earlier Than Expected
Connect:
Are you interested in working with us? Fill out our "Retirement Readiness Survey" and we'll follow up with some feedback on how you're tracking for your goals and how we could help.
Ep. 42 - Wealth Protection and Transfer in a Blended Family (with Tim & Alexis Woodward)
Episode Overview
In this episode we shed light on the unique financial planning and estate planning considerations for blended families, emphasizing the importance of tailored advice and open family communication to navigate these complexities successfully.
Today’s guests are Tim and Alexis Woodward, co-founders of Blend Wealth, a firm specializing in financial planning for blended families and business owners.
If you haven’t already done so, make sure you listen to episode 41: Blending and Building Wealth in a Blended Family before listening to this episode.
Connect with Tim and Alexis:
Instagram: www.instagram.com/theblendcouple/
Twitter/X: twitter.com/theblendcouple
Facebook: www.facebook.com/blendwealth/
Blend Wealth: blendwealth.com/
Key Points
3:56 - Retirement Distribution and Wealth Preservation:
Complexities of retirement distribution, wealth preservation, and estate planning for blended families.
Managing different account types for tax diversification and creating a retirement income strategy that supports both parents and children in blended families.
8:14 - Estate Planning and Beneficiary Designations:
The critical role of updating estate plans and beneficiary designations to reflect current family dynamics and intentions.
15:10 - Family Meetings for Estate Planning:
The value of holding family meetings to discuss and clarify estate plans to prevent misunderstandings and ensure fairness.
21:40 - Long-Term Care Planning:
The necessity of planning for long-term care, particularly in blended families, and the options available, including insurance.
27:48 - Life Insurance as a Tool for Estate Planning:
How life insurance, especially permanent policies, can be strategically used in estate planning for blended families.
31:36 - Investing in Relationships and the Future:
The importance of investing time and resources in family relationships and future generations.
Resources:
Blend Wealth blendwealth.com/
Blended Kingdom Families blendedkingdomfamilies.com/
Ron Deal's Smart Stepfamily smartstepfamilies.com/
FamilyLife Blended www.familylife.com/familylifeblended/blended-families/
Ep. 41 - Blending & Building Wealth in a Blended Family (w/ Tim and Alexis Woodward @ Blend Wealth)
40% of marriages today create a blended family, which involve children from previous relationships or marriages. I'm very excited for these next two episodes with Tim and Alexis Woodward from the Blend Wealth team!
Financial issues are a hot topic within families. And when you add additional parties, it can create added complexity.
We are breaking down this topic of blended family financial planning considerations into two parts:
Episode 41: Blending and Building Wealth in a Blended Family
Episode 42: Wealth Protection and Transfer in a Blended Family
Tim and Alexis Woodward are co-founders of Blend Wealth, a firm specializing in financial planning for blended families and business owners. We hope you enjoy this episode! If you do, make sure to share this with a "blended family" you care about!! Thank you!
Connect with Tim and Alexis:
Instagram: https://www.instagram.com/theblendcouple/
Twitter/X: https://twitter.com/theblendcouple
Blend Wealth: https://blendwealth.com/
Key Points
6:51 - Financial Planning Complexities in Blended Families:
Blended families face unique challenges in both family dynamics and financial planning, often dealing with children from previous marriages.
9:36 - Starting the Financial Planning Journey:
Importance of transparency and communication about finances between partners.
Different approaches to managing finances: joint, separate, or a combination.
14:55 - Prenuptial Agreements:
Discussed as a tool for addressing financial anxieties and ensuring security for both partners.
18:29 - Setting Financial Goals:
Shared goals might include retirement planning, travel, and charitable giving.
Individual goals often relate to obligations towards biological children from previous relationships.
26:33 - Blended Family Dynamics:
Emphasizes the importance of prioritizing the marital relationship and intentional parenting in blended families.
33:46 - Retirement Specifics:
Social security strategies for blended families.
Tax-efficient withdrawal strategies from retirement accounts.
Resources:
Blend Wealth https://blendwealth.com/
XO Marriage https://xomarriage.com/
Blended Kingdom Families https://blendedkingdomfamilies.com/
Ron Deal's Smart Stepfamily https://smartstepfamilies.com/
FamilyLife Blended https://www.familylife.com/familylifeblended/blended-families/
- Blended Family Breakthrough Podcast “Blended Family Breakthrough” Podcast with Mike and Kim Anderson
I hope you enjoyed today's episode! Stay tuned for Part 2!
Ep. 40 - What this election year means for your investment portfolio
The financial markets are well known to cause some stress and anxiety, but this escalates even more during a Presidential election. Especially this one which is likely to bring out emotions from both sides. As a result, I felt called to do this episode to provide some facts about how Presidential elections impact the stock market.
I hope you enjoy this episode! Make sure to share it with a friend or family member who might find it helpful! I want to impact as many people as possible with this message!
Thank you!
***Just a footnote here. I mentioned I was recording on video, which I did...However, I do not have time to edit this video in time for the next episode. I am currently working on hiring an editor, and will hopefully be adding video as a feature to tune into the show soon enough!
If you're interested in becoming a client, fill out our Retirement Readiness Survey Here
Links from the show:
https://www.eatonvance.com/advisory-blog.php?post=election-cycle-is-very-likely-to-impact-stocks-
https://www.fidelity.com/learning-center/trading-investing/election-market-impact
https://www.newyorkfed.org/medialibrary/media/research/capital_markets/Prob_Rec.pdf
https://www.ustreasuryyieldcurve.com/
https://www.blackrock.com/us/financial-professionals/insights/investing-in-election-years
Ep. 39 - Are you getting too conservative too early before retirement?
First and foremost, it's been a whirlwind for the Lao family in March. My financial planning firm just went through its first audit, woohoo! In the midst of all of the heavy lifting preparing for said audit, my wife gets the worst food poisoning of her life. Needless to say, Daddy's daycare was in session for the majority of last week. To cap things off, my oldest son got sick, so I took my twin boys to their first hockey game on Sunday just the three of us. While there, my wife called me with the news that one of our dogs, Guinness, was bitten by a venomous snake. We spent the rest of the day in the ER while he received anti venin and pain meds. Thankfully, he survived and was released the following evening. He's doing much better now, but the pain meds are keeping him up all night with "stomach problems." TMI, but I woke up this morning to prep and record this podcast only to find multiple piles of you-know-what scattered throughout my office. When it rains, it pours!!
But thankfully, I was able to do some prep and record later in the afternoon...so you all BETTER enjoy this episode!
...
The issue with getting too conservative too quickly is that you bring inflation, longevity, and interest rate risk into the picture! This is NOT an ideal situation for retirees in 2024!
In this episode, I discuss the three reasons I believe most investors get too conservative too early, my issue with "Risk Tolerance" as the primary driver of asset allocation, and the concept of "Risk Capacity."
Instead of selecting your asset allocation based on how you feel, or overly simplistic rules of thumb, reverse engineer your asset allocation based on your personalized financial goals and "required rates of return!" Meaning, don't invest based on how someone ELSE tells you to invest but invest based on your priorities and values.
A few links I referenced:
Jack Bogle's Asset Allocation Rule of Thumb
Ep. 36 - Asset Location to Improve Tax Efficiency in Retirement
If you are interested in working with me 1 on 1, please fill out our Retirement Readiness Survey here, and we will provide personalized feedback on how and what we would address your financial situation.
Feel free to send me an email with your support, feedback, or questions for me! kevin@imaginefinancialsecurity.com
Thank you!
Ep. 38 - Leveraging legislative changes to maximize your company retirement plans (w/ Alex Jenkins from NestEggs)
The SECURE Act of 2019 was the first major overhaul of retirement plans, specifically 401ks. However, many people are still curious about what the changes are and how they impact these group 401k plans. I had the pleasure of being joined by Alex Jenkins, the Chief Revenue Officer @ Nest Eggs, to unpack all of this for us. You'll be sure to learn a lot whether you are a small business owner, an executive at a privately held company, or you're just interested in the evolution of 401k plans and how to maximize them for retirement.
Links from the show:
Interested in learning more about Nest Eggs?
Contact Alex Jenkins
alex@nesteggs401k.com
904 252 6780 (cell)
Check out their website here: https://www.nesteggs401k.com/
The SECURE Act 2019 details and how they impacted 401ks
Information on Pooled Employer Plans ("PEPS")
Are you interested in working 1x1 with me? Fill out our "Retirement Readiness Survey" and we'll follow up with some initial feedback on your progress to financial independence and whether or not we would be a good fit to work together.
You can also check out my website at https://imaginefinancialsecurity.com/
I love to hear from YOU, the listener! Email me directly at kevin@imaginefinancialsecurity.com
-Kevin
Ep. 37 - 3 flexible retirement withdrawal strategies to maximize spending during your lifetime
Have you heard of the 4% rule?! It's the most recognized benchmark for safe withdrawal rates in retirement. However, it lacks flexibility and often leaves retirees "under-spending," particularly in their prime retirement years.
Think Advisor put out this article (link below) that touched on three alternatives to the 4% rule and how they can potentially increase your spending capacity over time, while also protecting downside risk (outliving your assets).
I hope you enjoy this episode!
If you are interested in learning what it would be like to work with me, fill out my complimentary "Retirement Readiness Survey." We'll ask you to answer a few basic questions to determine the key areas of opportunity for you.
Make sure to check "Podcast" at the end when we ask how you heard of us!
Here are some other links I referenced in the show:
Think Advisor article - Pros and cons of 3 retirement spending plans
Bill Bengen's SAFEMAX, 4% Rule Study
Guyton and Klinger Decision Rules
Ep. 14 - "Retirees, Stop Underspending in your Go-Go Years"
My blog article on using Guardrails to boost retirement spending!
Make sure to share this with a friend or family member who needs to learn about how retirement works! I appreciate all of you!
Kevin@imaginefinancialsecurity.com
Ep. 36 - Asset location to improve tax efficiency in retirement
According to the Vanguard "Advisor's Alpha" study, asset location can add up to 60 bps in returns on an annual basis! The larger your taxable brokerage account balance, the more you need to pay attention to what investments you own in that bucket!
Conventional wisdom says that the taxable accounts should be tapped into first, and therefore should be the most conservative. However, the result could leave you paying more in taxes than you need to!
This is where proper Asset Location comes into the picture.
I hope you enjoy this episode and make sure to share this with someone else like you!
If you are interested in working with me 1x1, make sure to visit my website: https://imaginefinancialsecurity.com/
Links:
- Schwab article on after-tax returns
- American Century average etf and mutual fund distributions
- Kitces article on the benefits of asset location
- Is the 60/40 portfolio dead (episode 29)
Ep. 35 - Using a reverse mortgage as part of your retirement income strategy
Housing wealth is one of the largest, if not the largest, assets on the balance sheet for retirees today. However, many retirees simply pay off their mortgage and let their housing equity sit idle.
There's nothing inherently wrong with this line of thinking because being debt-free is often a goal for most people. However, you may want to look at a reverse mortgage as a tool in the toolbelt to achieve your ideal retirement, minimize taxes, and age in place.
A big thank you to George Vrban, a reverse mortgage specialist with Movement Mortgage, for joining us on this episode and providing education on how this strategy fits into a retirement income plan.
For me personally, my conversation with George has shifted my mindset from thinking of home equity as a "last resort," to using it as a potential strategy to maximize retirement wealth and tax efficiency.
Additionally, the reverse mortgage can also be used as a line of credit, not just an income stream, which can be invaluable in case of an emergency.
Finally, I loved the idea of using the reverse mortgage for creative financial planning strategies like Roth conversions, or purchasing a dream vacation home!
Here is a link to George's contact information.
office: 904 616 8181
email: george.vrban@movement.com
Here's a link to Ep. 24 - Self funding long-term care expenses
I always love to hear from you all, so never hesitate to email me directly: kevin@imaginefinancialsecurity.com
If you are interested in working with me 1x1, we are currently on a waiting list for Q2 2024. If you have saved between 2 million - 5 million in retirement assets and you're looking to maximize spending, minimize taxes, and maximize your financial legacy to your children, our firm was built to serve you!
Visit our website to learn more:
Ep. 34 - Top investment mistakes retirees have made since 2020
Welcome to another episode of The Planning for Retirement Podcast. I'm your host, Kevin Lao!
2020-2023 brought about legitimate market volatility, the first we've experienced since The Great Recession of 2008. I thought I would share some common mistakes I've personally seen retirees make over the last few years to highlight the importance of having a disciplined, unemotional, repeatable, investment process.
I'll also highlight some of the key metrics we are watching in 2024 and how we are currently managing risk in portfolios.
Here are some of the links I referenced in the show:
- Follow me on Facebook (I posted both the Consumer Confidence and the Periodic Table of Returns charts on my Facebook page because they weren't linking properly in the show notes).
- Economic Trends in Equity Markets
- What do the markets do after rate cuts are over?
- What do the markets do when there is a Presidential election?
- 2004 - 2023 Periodic Table of Returns
- Magnificent 7 vs. the market
I always love to hear from you all, so never hesitate to email me directly; at kevin@imaginefinancialsecurity.com
If you are interested in working with me 1x1, we are currently on a waiting list for Q2 2024. If you have saved between 2 million - 5 million in retirement assets, you're looking to maximize spending, minimize taxes, and maximize your financial legacy to your children, you are in our target demographic.
Visit our website to learn more:
Ep. 33 - My sincere gratitude, plus a few tax planning observations as we close out 2023
2023 was an amazing year, and I just wanted to spend some time sharing my sincere gratitude for my listeners, clients, and most importantly my wife, Jessica, for supporting me on this journey.
I also wanted to share a few tax planning observations as we close out 2023.
Here are some links I referenced in the show:
- Ep. 18 - Roth conversion strategy could save $427k in taxes
- Ep. 10 - 6 reasons to take advantage of Roth conversions
For those of you interested in working with me 1 on 1, visit my website:
https://imaginefinancialsecurity.com/
Wishing you and yours a happy, healthy and prosperous 2024!
-Kevin
Ep. 32 - Tactical ways to reduce your anxiety transitioning from saving to spending in retirement
I decided to record this episode as a follow-up to Ep. 30 given how many questions and discussions I've heard from listeners. If you have not listened to Ep. 30 (link here), you should go back and listen as Cody Garrett joined me to talk about the challenge of psychologically going from "Saver to Spender" in retirement.
However, many of the follow-up questions were about what tactical action items you could take to get comfortable with "spending" down your retirement nest egg.
There are 7 potential tactics and philosophies you could adopt, but be sure to coordinate these concepts with a comprehensive financial plan.
Here are some of the resources I referenced in the show:
-The Retirement Planning Education Facebook Group
- Changes in retirement spending behaviors over time (Michael Kitces article)
- Bill Bengen's original 4% rule study
- Immediate Annuity (SPIA) rates
- IRS single life expectancy tables
***Just a note here, I meant to add that the "Required Minimum Distribution" is based on qualified tax-deferred accounts including IRAs, 401ks, 403bs, TSPs, etc. Roth IRAs are exempt, non-qualified brokerage accounts are exempt, AND Roth 401ks/403bs/TSPs will be exempt from RMDs beginning in 2024.
- Ep. 14 from The Retirement Planning Podcast (Retirees - Stop Underspending in your Go-Go Years)
-Using the Guardrail Withdrawal Strategy to Increase Retirement Income
-Guyton and Klinger Guardrail Decision Rules
If you are interested in working with me 1x1, visit my website:
https://imaginefinancialsecurity.com/
You can email me directly at kevin@imaginefinancialsecurity.com
I hope you enjoy this episode!
-Kevin
Ep. 31 - Nontraditional retirement planning using real estate, tax planning, and end of year charitable gifting opportunities (featuring Brady Slack)
I'm excited to have Brady Slack, the proud owner of High Country Finance based in Utah, join for this fascinating topic. At first, I was planning to steer Brady in two directions with regards to tax planning opportunities for business owners and W2 employees. But, we ended up mainly focusing on using real estate as a nontraditional retirement planning vehicle, and the tax efficiency of leveraging this asset class.
Just a word to the wise, investing in Real Estate is NOT as easy as it sounds. Many of these expert investors have been through ups and downs, and Brady talks about the need to be experienced in order to be successful in this market.
We also talked about a few charitable giving ideas for all taxpayers.
I hope you enjoy this episode!
Here are the details on how to connect with Brady and his team.
Website - Highcountryfinance.com
Instagram - @thebradyslack
Brady's podcast - Slackin' Off
If you are interested in learning more about how to work with me 1x1, visit my website: www.imaginefinancialsecurity.com
-Kevin Lao
Ep. 30 - Is it harder to go from spender to saver pre-retirement, or saver to spender in retirement? (Featuring Cody Garrett)
I've known Cody for almost 3 years now, and this man is a true student of his craft. Cody is an advice-only financial planner passionate about helping DIY investors on the path to financial independence and through early retirement. He is a CFP practitioner and proud owner of the Measure Twice® brand. His educational insights have been featured by Barron's, Forbes, Fox Business, CNBC, Morning Brew, Business Insider, and MarketWatch. You can also hear him on the ChooseFI, The Long View (Morningstar), The Financial Independence Show, and Michael Kitces' Financial Advisor Success podcasts. Twitter: @MeasureTwiceMNY LinkedIn: https://www.linkedin.com/in/codylgarrett/ Website: https://www.measuretwicemoney.com/ Cody brought up an interesting question that received a ton of engagement in the "Retirement Planning Education" Facebook group. The question was: "Is it easier to go from a spender to a saver, or a saver to a spender?" So naturally, we recorded a podcast about it! In this episode, we will cover: - the topic itself - the poll results - the psychological shift from saving to spending in retirement - tactics to solve this behavioral challenge And much more. I hope you enjoy this episode! -Kevin
Ep. 29 - Is the 60/40 portfolio dead for retirement planning?
For decades, the 60/40 portfolio has been the most popular asset allocation for retirees and institutional investors. It provides enough exposure to the equity markets to hedge inflation, but also plenty of "safe money" to offset dips in the stock market.
And then, 2022 - 2023 comes along when interest rates skyrocket sending the price of bonds into the red by -15%. The 60/40 portfolio failed for the first time in 40 years.
This begs the question, is the 60/40 portfolio dead?
In today's episode, I talk about what the 60/40 portfolio is, how it's performed over the last few decades, and then most importantly, I share 5 ways you can "modernize" the 60/40 portfolio to set yourself up for success in today's economic landscape.
I hope you find it helpful and make sure to share this episode with a friend who is approaching retirement or has recently retired!
And don't forget to follow me on Facebook @kevinlaocfp
-Kevin
Ep. 28 - The top estate planning concern leading DIY investors to hire a fiduciary financial advisor, and what you can learn from it!
Opposites attract, and this bleeds into the world of personal finance. There is a reason why the #1 cause for marital issues is related to personal finances. Well, when planning for retirement, this is no different. There's oftentimes a "CFO" of the household, and a "Non-CFO." It varies, depending on the couple, how much the "Non-CFO" is involved and/or interested in the personal finances. But either way, the concern is if the "Non-CFO" spouse had to take over the "CFO" role. As we get older, we realize we aren't Superman or Superwoman. Then the question becomes, how do you equip the “Non-CFO” to minimize financial stress if and when they have to take over the “CFO” role? We'll unpack all of this, and more! I hope you find this episode to be helpful! -Kevin
Ep. 27 - Which type of permanent life insurance policy should I own in retirement?
In episode 26, we addressed 7 reasons why you may want to own permanent life insurance during retirement.
In this episode, we will discuss the different types of permanent life insurance (whole and universal), as well as the different flavors of each type.
I hope you find this to be helpful! Drop us a line if you have questions or comments!
Ep. 26 - 7 reasons to own permanent life insurance in retirement
We've all heard the sales pitches! "Permanent life insurance solves all of your problems!"
For those of you who have followed me for a period of time know I don't believe this to be true. But at the same time, there is a large % of the financial advisor (and talking heads) population that blanketly tells people, "Don't ever buy permanent life insurance."
To me, this is a breach of fiduciary duty. Just because we all have our biases doesn't mean we should PUSH those biases on someone's personal financial situation. As my friend Cody Garrett likes to say, "Keep Finance Personal."
Here is a link to the article I referenced in the show about "How to divide assets in a blended family."
Here's a link to an episode from Andy Panko's podcast;
Episode 77 - "Understanding cash value life insurance and how it's sold, with Kevin Lao."
This could be a nice compliment to what we discussed today!
I hope you enjoy it.
Make sure to give the show a follow and leave us a review so we can reach more people and make a bigger impact!
Kevin
Ep. 25 - The #1 Value Add a Comprehensive Financial Planner Provides For Retirees
I hope you enjoy this one! I am not going to give it away in the description but here are the most common responses I hear from people (until they listen to this episode of course): - Tax planning - Peace of mind - Investment management - Income distribution planning - Estate planning All good answers, but all of them are wrong! Here are a few links I referenced during this episode, check them out below: WSJ Article - Retirement Regrets Investment News - Why people are reluctant to hire an advisor Vanguard's Advice Alpha Episode 21 - Purpose in Retirement
Ep. 24 - Self Funding Long-term Care Expenses
Most people go into retirement without Long-term Care Insurance. Meaning, they plan to "self-fund" Long-term Care expenses. But really, what ends up happening is that a family member, or family members, will end up providing the care.
In fact, 70% of care provided is done by unpaid caregivers (aka family members).
This goes against what most people's primary goal is in retirement; "Never to be a burden on their loved ones."
The problem is the "self-funding" plan wasn't communicated properly to their loved ones. Or, there was no "self-funding" plan to begin with.
In this episode, we'll dive into the different assets you could tap into during retirement to "self-fund" long-term care costs, and tips and tricks on how to implement your plan while maintaining your dignity (at home!).
Here are a few links referenced in the show:
Publication 502 (IRS)- Qualified Medical Expenses
I hope you enjoy this episode.
Ep. 23 - Using Hybrid Long-term Care to Fund Extended Care Costs in Retirement
This is part 2 of 3 in our series, "How to pay for Long-term care costs in retirement."
Rodney Mogen and Peter Ciravalo from BC Brokerage are my guests again today and they bring a ton of knowledge on this topic! There is a reason Hybrid Long-term Care policies now make up the majority of insurance products sold today. However, because there are so many different types of products and how they fit into a client's situation, oftentimes retirees and pre-retirees can feel overwhelmed with where to start.
I hope you enjoy this episode and make sure to hit "FOLLOW" so you don't miss out on part 3, "How to self-fund extended care costs in retirement."
Here is how to get in touch with BC Brokerage!
Ep. 22 Paying for Extended Care with Traditional Long-term Care Insurance (with Peter Ciravalo and Rodney Mogen)
One commonly shared concern for all retirees and pre-retirees I've spoken to over the years: "Never be a burden on your loved ones."
As we all go through the aging process, the potential need for extended care is more and more at the forefront.
However, many pre-retirees and retirees fail to prepare for this because financial advisors focus more on selling products instead of real planning.
In episode 17, Harley Gordon joined us to discuss the consequences of not planning for extended care.
In this 3 part series (episodes 22-24), we will talk about the three ways to pay for extended care expenses:
Part 1 - Traditional Long-term Care Insurance
Part 2 - Hybrid Long-term Care Insurance
Part 3 - Self-funding extended care costs
In parts 1 and 2, I had the pleasure of speaking with Peter Ciravalo and Rodney Mogen from BC Brokerage. Peter and Rodney have a wealth of product knowledge but with a financial planning mindset.
I hope you enjoy this episode's 3-part series.
Here are a few links we referenced in the show.
Ep. 21 - Purpose in Retirement and the Purpose of this Podcast
The Wall Street Journal just came out with an article called "How to Retire Better, From Retirees Who Learned the Hard Way."
What's interesting is that 2 of the 3 suggestions had NOTHING to do with money or finances! It was all about purpose and relationships. So, this podcast is dedicated to talking about this NON-financial topic, "Purpose in Retirement."
Also, many of you are new listeners whom of course I've never met before! Welcome! As a result, I thought I would share my personal story on WHY I initially launched this podcast in 2021, and how that purpose has evolved over time.
I hope you enjoy this show!
I'm including a couple of links below:
WSJ article 👈 Purposeful Retirement (book by Hyrum Smith) 👈
Ep. 20 - How to Reduce Taxes on your Social Security Income
Did you know your Social Security benefits in retirement could be 100% tax-free? Perhaps you didn't even know Social Security would be taxable as many of you paid into the system for decades!
Today we will unpack how Social Security retirement benefits are taxed, and most importantly how to reduce taxes on those benefits in retirement.
A few notes for the listeners:
Provisional Income / Social Security Tax Rates for 2023
Individual
- Not Taxable: Less than $25k
- Up to 50% Taxable: $25k-$34k
- Up to 85% Taxable: Over $34k
Married Filing Jointly
- Not Taxable: Less than $32k
- Up to 50% Taxable $32k-$44k
- Up to 85% Taxable: More than $44k
A helpful Kitces.com article
Ep. 19 - Tax Loss Harvesting to Create Tax Free Retirement Income
Sometimes "hanging tight" isn't the best solution during times of volatility. We've had two bear markets since the Great Recession of 2008. COVID-19 was the first, and the inflation that ensued thereafter in 2021-2022 led to the second. Tax Loss Harvesting involves selling investments when they are down in value (in a taxable account) to create a realized loss for tax purposes. You can then use these losses in current or future years (retirement) to reduce taxes!
These opportunities don't come every year, so it's important to take advantage while you (still) can!
I hope you enjoy this episode!
Ep. 18 - Roth Conversion Strategy Could Save Over $427k in Taxes!
First and foremost, you have to run the numbers. For every scenario that is a "home run" like the one I'll discuss today, there is a scenario where it does not make sense. Or, perhaps the time isn't right (yet).
Make sure to check out this latest episode to hear the first of our three-part series from our recent educational workshop, "How to Reduce Taxes in Retirement."
Enjoy!
Ep. 17 - The Consequences of Extended Care in Retirement (featuring Harley Gordon)
Nobody wants to think of themselves as getting old or frail. In fact, many retirees in their 60s, 70s, and even 80s are still traveling the world. The risk of extended care will never impact them. But if you need extended care, what are the consequences to your loved ones? They are not just financial but physical and emotional.
We are honored to have Harley Gordon join us on this episode, "The Consequences of Extended Care in Retirement."
Harley is a founding member of the National Academy of Elder Law Attorneys (NAELA), and the founding principal of the CLTC, or Certification in Long-Term Care designation. He's recognized as one of the top 10 most influential people in the Long-term Care Industry.
We hope you enjoy this episode and hope you learn something that makes an impact.
Ep. 16 - How to Prepare for Required Minimum Distributions (RMDs)
It's natural for us to think about how to GET to retirement, but not about how retirement will actually work.
The same is true for saving into a 401k or 403b plan. Most think about how to invest their 401k and maximize growth. However, what about the distribution process? And more importantly, what is the tax impact of those distributions?
Taxes are our clients' #1 expense during retirement, and RMDs play a big part in tax planning. Naturally, I am a big advocate of having an RMD plan.
We will dive into how RMDs work and how to plan for them strategically. Thanks for tuning in!
Ep. 10 - Six Reasons to Take Advantage of Roth Conversions
Ep. 15 - 2023 Market Outlook
2022 was a tough year for both stocks and bonds. In fact, it was perhaps the worst year for a 60/40 portfolio, period. For retirees, this makes income planning very difficult! How do you combat record inflation when both stocks and bonds are falling? Additionally, the risk in stocks is likely not over as the fed continues its rate hike strategy, and a recession is likely.
The good news is, there are opportunities for retirement investors! Tune in to hear more about our key opportunities for 2023.
-Yield is back in fixed income
-The value vs. growth story
-International stocks time to shine?
-Bucketing strategy!
Ep. 14 - "Retirees - Stop Under-spending in Your Go-Go Years"
As a financial professional who specializes in retirement, I would never tell a client to spend MORE than they can. However, I will tell them what they CAN spend while still maintaining their financial independence. Oftentimes, it's more than what they are currently spending, especially in the "Go-Go Years" of retirement. Why is this? Perhaps the fear of the "what if's" like long-term care, being a burden on their loved ones, not leaving a financial legacy, longevity concerns and more. In this episode, I'm joined by Justin Fitzpatrick, the Co-Founder of Income Lab. Income Lab is a retirement income planning software used by financial advisors, including myself, to help solve the question of "how much can I comfortably spend in retirement." I hope you enjoy the episode and make sure to give us a follow and a 5 star review if you like what we are doing! We appreciate all of you!
Ep. 13 - Planning for Healthcare Costs in Retirement - Medicare Considerations (featuring Ari Parker, Lead Medicare Advisor @ Chapter)
Ep. 12 - Should I pay off my mortgage early?
First of all, paying off your mortgage early vs. investing the difference is not an apples to apples comparison. I don't know of any investments that provide a guaranteed return = to the mortgage interest rate in question.
If you are comfortable with taking on the risk, you might be better off stretching that mortgage to 30 years and investing the surplus cash into a side fund.
Additionally, this could provide liquidity along the way to access "just in case."
However, there is something to be said for my clients that are mortgage and debt free in retirement. Therefore, those qualitative factors should be considered AS WELL AS the quantitative factors.
Ep. 11 - What is Tax Planning vs. Tax Preparation?
Tax preparation is reactive, for the most part. Tax planning is proactive. Most people focus solely on tax preparation, which involves preparing necessary documents to file your taxes. Tax planning involves not only minimizing your tax liability today, but minimizing taxes when you start to draw on your investment assets and throughout your retirement years. We hope you enjoy this episode!
Ep. 9 - The 5 Most Common Estate Planning Mistakes
The number one thing I hear from clients is they don't want to ever be a burden on their loved ones, and yet, I've seen a number of estate planning mistakes over the years. Fortunately, they never truly get exposed unless something unexpected happens. These 5 common estate planning mistakes can and should be addressed, and I always recommend seeking official legal counsel from a licensed attorney to do so!
Ep. 8 - What to do when stocks are volatile?
Spoiler alert: The answer is NOT "do nothing."
Volatility is a healthy part of investing! If there was no risk to it, there would not be the upside potential the stock market has provided for decades! Inevitably when the stock market is volatile, I field a bunch of questions on "what to do next?!" Nobody is complaining when markets are flying up with no volatility, but once we see that 10% or 20% dip, people start to pay attention. I decided to record this episode to shed light into what our practice looks like and how we navigate the good and bad markets. I hope you enjoy it!
Ep. 7 - Retirement Income Withdrawal Strategies
A lot of people focus so much on retirement savings strategies and not enough on withdrawal strategies. Also, many people don't realize the withdrawal strategies begin years before you retire! I hope you enjoy this episode and begin to think about how your savings strategies now will impact your withdrawal strategies later. Additionally, if you are closer to retirement, hopefully you can begin to think about which strategy (or strategies) align with your personal preferences. Enjoy it!
Ep. 6 - 4 Tax Strategies As We Approach Year End
It's the end of the year, and most people are thinking about the holidays! Well, we think about tax efficiencies for our clients, so I wanted to share a few tips that you might want to consider as we approach the end of the tax year. This should not be taken as tax advice! Consult with your own professional tax advisors to determine what strategies make the most sense in your situation. Nonetheless, I hope you find it helpful.
Ep. 5 - What is a safe rate of withdrawal in retirement?
The formula we use at our firm, Imagine Financial Security, is; Financial Goals + Risk Tolerance - Income Sources = Rate of Withdrawal.
If you follow this logic, you will find a goals based rate of withdrawal that is customized to your financial plan, not some benchmark created by someone who knows nothing about you.
Hope you enjoy it!
Ep. 4 - Maximizing Social Security Benefits for Retirement
Social Security represents approximately 40% of all retiree's incomes. When to claim Social Security is ultimately unique to everyone, so I put this episode together to help you think about multiple factors before making a decision.
Ep. 3 - Four Stress Tests For A Bulletproof Retirement Plan
If your investment portfolio and retirement plan can pass these four stress tests, you will find yourself having more peace of mind in your retirement years than you could ever imagine. Take a listen and learn more about how we can help stress test your plans for retirement.
Ep. 2 - The Tax Trap of Traditional 401ks and IRAs
In this episode we will address how accumulating significant savings into Traditional 401ks and IRAs can lead to a massive tax burden in retirement. Additionally, we will be addressing the provision in the SECURE Act which will change the way we view leaving these retirement plans to the next generation.
Ep. 1 - Introduction to The "Planning For Retirement" Podcast
This is our inaugural episode of the Planning For Retirement Podcast. Therefore, I want to simply introduce the WHY behind this podcast as well as let all of the listeners know about my background both personally and professionally. Lastly, I will tease the next episode content and hope you all enjoy what we are bringing to the table.