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

[email protected]

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 [email protected]

-Kevin

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!

IRS Life Expectancy Tables

Make sure to share this with a friend or family member who needs to learn about how retirement works! I appreciate all of you!

[email protected]

Follow me on Facebook

Follow me on LinkedIn

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.

If you are interested in working with me 1x1, make sure to visit my website: https://imaginefinancialsecurity.com/

Links:

- ⁠Follow me on Facebook⁠

-⁠ Follow me on LinkedIn

- Vanguard's Advisor's Alpha

- 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)

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: [email protected]

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: [email protected]

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:

⁠https://imaginefinancialsecurity.com/

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).

- Follow me on LinkedIn

- 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 [email protected]

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:

https://imaginefinancialsecurity.com/

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

-IRMAA limits for 2024

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

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 [email protected]

I hope you enjoy this episode!

-Kevin

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

I've known Cody for almost 3 years now, and this man is a true student of his craft.

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