Keen on Retirement

Why are we talking taxes on today's episode, when the 2022 tax season is already over? Because taxes are a constantly evolving part of a comprehensive financial plan. The rules around tax planning and retirement change. Your taxable income changes. And, most importantly, your life changes.

Today, we discuss some of the tax items on our checklist-driven planning process at Keen Wealth that keep every part of a financial plan in sync throughout the year.

I know I say this every time we answer listener questions, but these are some of my favorite episodes of Keen on Retirement. I love hearing from listeners trying to think through crucial financial planning issues and be proactive about their lives. And I'm thrilled that so many folks in our audience took the time to attend our most recent webinar on Retirement Spending, reflect on the info that Keen Wealth's Matt Wilson presented, and send in thoughtful follow-up questions on a wide range of essential topics.

Let's dig in!

Earlier this month, I attended The Barron's Advisor Independent Summit in Dallas with Keen Wealth's Chief Investment Officer and President, Matt Wilson. It's a real privilege to be invited to this annual conference where we can talk to and learn from some of the top minds in finance.

While the program had been scheduled well in advance, the recent bank collapses in California and New York became one of the dominant topics. Matt and I recorded today's show live at the Summit so that we could share some of the key insights we heard from colleagues and other financial pros about the state of our banking system and the broader economic outlook for the year ahead. We also scale these issues down so that you can have a better understanding of how the big picture could affect your

We received very positive feedback from folks who attended our most recent educational webinar, "Timing is Everything." And, we also received some excellent follow-up questions that we're going to address on today's episode. Our conversation ranges from transportation costs to health insurance and asset allocations. We also discuss what we mean by "timing" in retirement and how Keen Wealth's comprehensive planning process prepares folks for the best half of life.

All of us Chiefs fans have incredible memories of watching Super Bowl LVII that we're going to treasure forever. But not many of us had a seat as close to the action as my guest today, Teresa Hannon.

"This game was such a nail biter," Teresa told me, "and where I sat was lower level, right by where the winning field goal was made. Just seeing it go through the goal post right by where I was sitting was incredible. And Arizona had perfect weather, it was 75 degrees every day there. The stadium was beautiful. And the experience of just being there was everything I imagined."

But Teresa did more than just imagine this Super Bowl experience. She worked with her Keen Wealth advisor to make this trip part of her comprehensive financial plan. And as we discuss on today's episode, that plan helped give Teresa the means and the confidence to live her best life in retirement.

It's clear from our latest batch of listener questions that the Keen on Retirement audience has been paying attention to how recent legislation is affecting retirement planning. But today's episode should also clarify just how challenging it can be for folks to find the answers they need when so many details keep changing. My team at Keen Wealth doesn't just dig into the fine print: we understand how to apply these rules to individual financial scenarios and create appropriate outcomes for folks in retirement.

"Sean" is 60, and he wants to retire by the end of this year. His wife, "Mary," is also 60, and she wants to retire in two-to-three years. Maybe.

Sean has an IRA worth $1,000,000 and a health savings account with $5,000 in it. Mary has a 401(k) worth $800,000, an IRA worth $700,000, and company stock worth $100,000. They also have cash savings of about $600,000. They want to be able to spend $120,000 per year in retirement.

Like many couples heading into their golden years, Sean and Mary want to know if their retirement goals are attainable, and they want to know if they're going to be OK.

So, they start meeting with financial advisors.

Many of the advisors Sean and Mary sit down with start the conversation by digging into their finances, showing them charts and graphs, talking about how the market has performed historically, etc.

What happens when Sean and Mary walk into Keen Wealth Advisors?

On today's show, we use a fictional "Sean and Mary" as a case study for how our initial interview process works and how Keen Wealth uses bigger issues about life, purpose, and happiness to create individualized, comprehensive financial plans.

When our leaders in Washington passed the Setting Every Community Up for Retirement Enhancement (SECURE) Act in 2019, it marked a major change in retirement planning. In a sense, the government was codifying advice that many financial advisors -- including my team at Keen Wealth -- had been giving for years. The next generation of retirees is going to live longer, with more active lives than any before it. Very few younger workers are going to stay at the same company for decades and earn generous pensions. Very few older workers will automatically retire at 65. And for most folks, Social Security alone will not fund a safe, secure, and rewarding retirement.

In other words: folks have to start taking more personal responsibility for their retirement planning.

On today's show, we discuss the SECURE Act 2.0, which was included in the omnibus spending bill Congress passed at the end of 2022. Many of the changes in this sequel may seem like smaller tweaks compared to the original. But tracking these changes and using them to your advantage will be key to getting the most out of your nest egg and your retirement.

We're only a few days into 2023, but the stats tell us that plenty of folks are already struggling with their New Year's resolutions. In 2019, Strava, a social network for athletes, determined that 80% of people who made New Year's resolutions abandoned them by the second week of January. A 2021 CBS News poll found that 4% of individuals who make resolutions actually accomplish everything; 8% meet most of their goals; 16% meet some.

On today's show, we talk about some strategies that could help you set better 2023 goals and increase your likelihood of hitting them.

Because of the strong ties that Keen Wealth has established with metro Kansas City's thriving engineering community, we've gained real appreciation for the power of employee stock ownership plans, or ESOPs. The Harvard Business Review study shows that companies that implement this unique structure dramatically improve their performance by empowering their workers to think and act like owners. ESOPs can also improve workforce retention, which is a boon for both young workers seeking career stability and companies that are battling for talent in a tight labor market.

On today's show, I talk to three top executives from Henderson Engineers in Lenexa, KS about how they established their ESOP just over a year ago. No matter what industry you're in, I think our conversation will help you understand how an ESOP works, some of the challenges around setting up an ESOP, and also the myriad of benefits for not only the employee owners but the client of these firms.

Joining me are: Kevin Lewis, CEO & President Dana Kettle, CFO and Kansas City Business Journal 2022 CFO of the Year Honoree Robin Broder, Chief Marketing Officer