My Smart Retirement

The first quarter of the year is always a time when people begin thinking about taxes just a bit more. That yearly filing will often stir up a few financial questions and get people asking about strategies to minimize taxes down the road.

In this episode, we’re following that theme as we open up the mailbag to take a few questions that all deal with some aspect of retirement and tax planning. From converting IRAs to Roth, withdrawing from and inherited IRA, and how to project taxes in retirement, Nancy will tackle each of these to give you a better idea of how to approach these planning items. 

With it being the week of Valentine’s Day, we’ll also share a little nugget on the history of the holiday.  

Here’s some of what you’ll learn in this episode: 

·      Is it a good idea to start converting as much as your IRA to a Roth if you’re retiring within 5-6 years?  (2:00)

·      Some Valentine’s Day trivia. (6:05)

·      Rules for inherited IRAs and withdrawing money.  (7:00)

·      Should you be making estimated tax payments every quarter and how do you project your tax amount in retirement?  (10:33)

One thing we’ve learned through the years of helping people prepare for retirement is that everyone has a different vision for how they want to spend that time. Retirements come in all shapes and sizes and having a good idea of what you want will help us build a portfolio that aligns with the life you want to live.

In this episode, Nancy and Sean will talk about the process for putting together a retirement life portfolio and why pre-retirees aren’t always prepared for the key transition points. They’ll also share a few different scenarios that they worked through with clients and give you a better idea of how the discussion goes.

If you’re at or near retirement, make sure you’ve taken the necessary time to think through your transition and what goals you have for the next chapter.

Here’s some of what you’ll learn in this episode: 

·      Investors will often come up with arbitrary numbers when building their portfolio. (0:38)

·      What type of retirement do you want to have? (2:33)

·      The important transition points leading up to retirement. (3:32)

·      There are certain times a financial analysis might not help an individual.  (4:59)

·      Some different goals we hear from clients and how we plan for them. (7:25)

Saving in your 401(k) can be an easy and painless way to build your retirement savings. But because it’s so easy and painless, it can also be easy to ignore for long periods of time, which often leads to mistakes.

Since this retirement account is one of the most popular vehicles for saving, it’s important to make sure we’re doing all we can to get the most out of this money.

In this episode, Nancy will cover at least five of the mistakes people make in their 401(k)s and explain what you can do to avoid this with your own investments.

Here’s some of what you’ll learn in this episode:

• What options does someone have when they aren’t comfortable with risk but want to generate better returns? (3:38)
• What you should be doing with the money in an old 401(k) with a former employer? (9:46)
• People fail to rebalance their 401(k) enough. (12:28)
• Allocating too much money to a target date fund might not be giving you the customized solution you think. (13:35)
• Don’t just assume that fees and costs are minimal because they aren’t clearly outlined. (15:27)
• What you should do if you want to transfer your 401(k) to another custodian. (17:14)

Just like the lights on your dashboard can indicate if something is wrong with your car (like low tire pressure or leaking oil), there are indicators in your financial life that might point out that you have a problem that needs to be addressed.

On this episode of My Smart Retirement, Nancy Fleming breaks down at least four warning signs that should give you a clue something isn’t quite right with your financial and retirement plan.

Having no idea what it costs to fund your lifestyle, being overly focused on a specific dollar amount, or getting worked up over the financial impact of the day’s news stories are just some examples of the warning signs Nancy will explore.

And stay tuned for the end of the show where Nancy peels back the curtain on a new industry buzzword/phrase called “Next Chapter Advisors.”

Here’s some of what you’ll learn in this episode:

• Warning Sign #1: You have no idea what it costs to fund your lifestyle (3:00) • Warning Sign #2: You’re focused on attaining a certain net worth or account balance (5:37) • Warning Sign #3: Your mental image of retirement is based on what your parents had (7:23) • Warning Sign #4: You get worked up about current events because of the impact you feel that they have on your portfolio (11:07) • Nancy shares an analogy about comprehensive planning and balancing short and long-term goals and plans (12:57) • What are “Next Chapter Advisors”? (18:05)

When the warning light pops up on your dashboard, sometimes you know what needs to be fixed. Other times, you have to consult a professional to know what the problem is and how to fix it.

It’s the same thing in your financial life. Sometimes you’ll know the major areas where you need to improve, but a lot of times you’ll want a pro to help guide you and show you the way. If that’s the case, we’re always here to help, so don’t hesitate to reach out if you have any questions.

Another year is upon us and it’s a great time to assess how ready you are for retirement to kick off 2023.

If you’re retiring this year, it’s essential to have some concrete answers to these questions. If you’re still a few years from the milestone, tune in so you can start thinking about these critical conversations.

Running through this entire list of planning items will ensure that you’ve checked the most important boxes off your list so that you will be prepared to make the transition into retirement. If you aren’t sure how you’d answer any of these questions, make sure you get with a financial professional to have that discussion.

Here’s some of what you’ll learn in this episode:

• How much income do you need every month? (2:52)
• Which account should you start withdrawing from first in retirement? (3:50)
• Do you have a plan to combat inflation? (7:45)
• Do you have any current investments or products you don’t understand? (12:34)
• The healthcare costs you need to be thinking about. (18:25)

Another round of retirement changes are on the way after President Biden signed a spending bill in December 2022 that included the SECURE Act 2.0. Retirees and pre-retirees need to understand what this legislation means, how it might impact you, and what planning opportunities this could open up.

With a significant number of changes beginning this year and next, we’re going to break the discussion up into two parts. In this first episode, Nancy will lay out the details for RMDs and the new age requirements. The rules will impact both account holders and spouses, and we’ll lay that out for you.

Plus, she’ll tell you about a big change to the 529 plan that will allow people to move money to a Roth. There are some specific rules you’ll need to follow to qualify, but it’s great to have that possibility down the road.

It will be another busy year for retirement planning so make sure you check in with your advisor to see what adjustments you’ll need to make based on this new legislation.

Here’s some of what you’ll learn on this episode:

• The rules have changed for what age you have to take out Required Minimum Distributions. (2:32)
• How these new rules will impact spouses. (8:23)
• Changes to 529 plans will allow people to move that money to a Roth…with some qualifications. (12:31)
• Catch-up contributions increase for the upcoming year. (19:37)

Many of us like to set New Year's Resolutions. Today we will be discussing goals, but not resolutions in particular.

We want to help lay the foundation for goal setting so you will be able to achieve them whether they are financial or personal.

For this episode, you’ll want to take a moment to write out your goals and plan along with us as we discuss ways to help you achieve them.

Here’s some of what you’ll learn in this episode:

• What kind of person do you want to be? (3:48)
• Setting dates for your goals. (6:10)
• “Ring out the false, and ring in the true” (9:42)
• Prioritize your goals using this method. (12:00)

The New Year is approaching in a matter of days. This time of year, many of us enjoy getting our lives organized to some degree. The same can go for your financial life.

In this episode, we will be sharing 10 financial steps you should take to start 2023 off on the right track.

Here’s some of what you’ll learn in this episode:

• Are you financially organized? (1:28)
• Do you review your budget each year? (6:32)
• Have you been meeting your savings goals? Do you have an emergency fund? (9:10)

On TV we often see moments that are exaggerated versions of reality. For example, when someone dies in a show or movie there is usually a will reading with the family present. Is that reality?

In this episode, we will be diving into some of the things that are shown one way, when reality may look very different.

Here’s some of what you’ll learn in this episode:

• Picture it: A will is being read to the entire family, and your great aunt, thrice removed, gasps in outrage as she discovers she won’t be inheriting a slice of the family fortune. Is it reality? (0:24)
• You suddenly get a letter in the mail about an investment you didn’t realize you had. Is this something that actually happens? (5:29)
• Can some actually time the market successfully (and intentionally)? (12:22)

We came across this article that cites 35% of millionaires saying it’s “going to take a miracle” to be ready for retirement. Why are Americans feeling less confident? Is it realistic that millionaires can’t feel surer about their retirement futures? In this episode, we will discuss why some may be feeling uneasy about retirement.

Here’s some of what you’ll learn in this episode:

• Even many millionaires feel unsure about retirement. (1:33)
• Many are increasing their retirement savings. (10:20)
• What to know about end-of-the-year planning this year. (13:38)