Check out Jeremy’s latest podcast on retirement planning by listening on “Apple Podcasts” or “Google Podcasts” or read below for Your Top 5 Retirement Questions Answered.

[154] Think Social Security will cover all your retirement expenses? Think again.

In this episode, Jeremy Keil dives deep into critical retirement topics, focusing strongly on Social Security, strategies to maximize interest rates, and wise approaches to investing your savings. This episode aims to arm you with actionable insights for a financially secure retirement.

Jeremy discusses:

Many questions arise during the retirement process. These questions are often about Social Security, investing, and treasury bonds. These common questions will help you understand your options better so you can make informed decisions.

Social Security serves as a crucial safety net for retirees, but it’s vital to recognize that it isn’t designed to replace your entire income. Understanding how Social Security benefits work and when to claim them can significantly impact your financial security during retirement.

Social Security replaces only a portion of your income, and the replacement rates vary based on your earnings history. In general, your first $13,000 per year of earnings is replaced at a rate of 90%, followed by the next $67,000 at 32%. However, earnings from $80,000 to $160,000 are replaced at a mere 15%.

Social Security is designed to replace a specified amount at your Full Retirement Age (FRA). Unfortunately, many people claim benefits before reaching their FRA, resulting in a lower monthly benefit, sometimes up to 30% less than the promised amount.

One crucial factor affecting Social Security benefits is the Cost of Living Adjustment (COLA), which is based on inflation rates. While recent years have witnessed higher COLA raises, like 5.9% and 8.75%, it’s anticipated that the 2024 COLA will be around 3%, bringing it more in line with the long-term average of 2.4% before 2022, suggesting a return to normal inflation levels.

Delaying your Social Security benefits can lead to higher monthly payments. For every year you delay, you can potentially receive approximately 8% higher payments when you eventually start claiming again.

Deciding when to claim Social Security can be a pivotal financial decision. Delaying benefits can offer several advantages. If you and/or your spouse have a history of longevity, waiting until age 70 can maximize your cumulative benefits. This strategy can also be a lifesaver for those with insufficient retirement savings, bridging the financial gap effectively.

If you’re still employed, delaying Social Security allows you to continue building benefits while earning a paycheck. Similarly, if your spouse didn’t work or has a lower benefit, delaying your benefits ensures they receive higher survivor benefits. Remember, delaying Social Security past your FRA results in an 8% increase in benefits each year up to age 70, providing you with a guaranteed income boost.

However, there are instances where claiming Social Security early makes sense. Immediate income needs or health issues may necessitate an early claim, as the need for financial support might outweigh the potential for higher benefits later.

A combination of early and delayed claims can be advantageous for couples eligible for Social Security. Some individuals may need to claim Social Security early to enable their spouse to receive spousal benefits. Concerns about Social Security’s stability may also push some to claim early, but it’s crucial to perform a comprehensive financial analysis before making this decision.

To make the most of your savings, exploring various avenues is essential. Certificates of Deposits (CDs) with competitive interest rates can be a good choice. However, be cautious of “callable” CDs, which the issuer may redeem before maturity.

Another option is high-yield money market accounts, which typically offer better interest rates on your savings. Additionally, reducing outstanding debt can save you money on interest payments.

Delaying your pension and Social Security benefits can result in higher monthly payments, providing another source of increased income. Paying your taxes early can also help you avoid penalties and interest charges.

Regularly shopping around for financial products offering higher interest rates can make your money work harder for you. To determine the best strategy for earning more interest on your money, assess your monthly expenses, debt situation, and long-term investment options carefully.

Deciding when to redeem Series I Bonds depends on your specific financial goals. If you aim to maximize interest on a particular I Bond, consider the fixed rate, which may change every six months. If it’s currently favorable, it might be a good time to redeem it; otherwise, holding onto it could be more beneficial.

For those planning to include I Bonds in their long-term investment portfolio, waiting may be the wiser choice, as the fixed rate might remain stable or increase in the future. Additionally, consider the tax implications of redeeming I Bonds in a particular calendar year, as waiting a few months can impact your tax liability.

When it comes to investing in the stock market, historical data shows the potential for positive returns over time. Investing a lump sum upfront can capitalize on this trend, as the market generally rises more often than it falls.

However, concerns about market timing can lead to hesitation. To mitigate this, consider a middle-ground strategy: invest half of your funds immediately and the remainder over a period of 3-12 months. This approach balances the potential benefits of immediate investment with risk mitigation.

To learn more about how to get higher interest and more Social Security, check out the resources below!

If you have any questions, feel free to contact us using the contact information provided below!

Disclosures

Videos/Podcasts/Blogs (media) published prior to June 30, 2025, were recorded and approved while the advisor was affiliated with Thrivent Advisor Network. These media reflect the advisor’s views and interpretations at that time. The information and disclosures contained in those media were believed to be accurate and complete as of the date of recording, but may not reflect current market conditions or Alongside, LLC, policies.

All content is provided for educational purposes only and does not constitute personalized investment advice. Read below for current disclosures and potential conflicts of interest.

This media is provided for informational and educational purposes only and does not consider the investment objectives, financial situation, or particular needs of any consumer. Nothing in this program should be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell, or hold any security or to adopt any investment strategy.

The views and opinions expressed are those of the host and any guest, current as of the date of recording, and may change without notice as market, political or economic conditions evolve. All investments involve risk, including the possible loss of principal. Past Performance is no guarantee of future results.

Legal & Tax Disclosure

Consumers should consult their own qualified attorney, CPA, or other professional advisor regarding their specific legal and tax situations.

Advisor Disclosures

Alongside, LLC, doing business as Keil Financial Partners, is an SEC-registered investment adviser. Registration does not imply a certain level of skill or expertise. Advisory services are delivered through the Alongside, LLC platform. Keil Financial Partners is independent, not owned or operated by Alongside, LLC.

Additional information about Alongside, LLC – including its services, fees and any material conflicts of interest – can be found at https://adviserinfo.sec.gov/firm/summary/333587 or by requesting Form ADV Part 2A.

The content of this media should not be reproduced or redistributed without the firm’s written consent. Any trademarks or service marks mentioned belong to their respective owners and are used for identification purposes only.

For important disclosures visit: https://keilfp.com/disclosures/

===

Check out Jeremy’s latest podcast on retirement planning by listening on “Apple Podcasts” or “Google Podcasts” or read below for Should You Move To A Different State To Lower Your Retirement Taxes?

[153] – State taxes are a piece of your retirement planning puzzle, but are they really a big deal?

In this episode, Jeremy Keil talks about moving to a different state for retirement tax purposes. He goes over the potential trade-offs between lower income taxes and higher property taxes and other costs, the tax implications of living in different states, and the importance of considering factors beyond taxes, such as lifestyle and family connections, when choosing a retirement location.

Jeremy discusses:

Should you move to a different state to lower your retirement taxes? It certainly sounds tempting, but there are a few different things to consider to determine if it’s worth moving to a different state to lower your taxes in retirement.

Moving to a different state in retirement can impact your cost of living in various ways. State taxes, property taxes, sales taxes, and other local expenses all play a role. For example, some states have no income tax but might have higher property taxes or other costs.

And on top of that, the cost of living in different areas within a state can impact your overall financial situation.

It’s crucial to run the numbers and consider your specific financial situation to determine if the overall impact on your cost of living is favorable.

Yes, there are trade-offs to consider when moving states for retirement. While lower taxes might be appealing, other factors such as property taxes, cost of living, climate, and social connections need to be weighed.

Additionally, making a move solely for tax benefits might not lead to the expected financial windfall.

It’s important to look beyond taxes and consider the holistic impact on your lifestyle and finances.

Whether you should move and where you should move to for retirement are two big decisions. 

Playing make-believe and planning out your taxes and costs of living in various locations is a good start to making an informed decision.

Trying out a new location before making a permanent move is also a wise strategy. Spending extended time in a new state during different seasons and experiencing its lifestyle can give you a better sense of what it’s like to live there. Renting a place for a month or more through platforms like Airbnb or VRBO allows you to understand the local environment, costs, and overall comfort before committing to a permanent change.

Family considerations play a significant role in retirement decisions, including where to live. Proximity to children, grandchildren, and other loved ones can influence your choice of location. Balancing your desire for a particular location with the need to stay connected with family is essential. Some retirees opt to split their time between different places to be closer to family during certain times of the year. Ultimately, maintaining a strong support network and family connections is a vital factor to consider.

Remember, every individual’s situation is unique, and what works for one person might not work for another. It’s crucial to assess your financial situation, personal preferences, and family dynamics before making any significant decisions about relocating for retirement.

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To learn more about retirement taxes, check out the resources below!

If you have any questions, feel free to contact us using the contact information provided below!

Disclosures

Videos/Podcasts/Blogs (media) published prior to June 30, 2025, were recorded and approved while the advisor was affiliated with Thrivent Advisor Network. These media reflect the advisor’s views and interpretations at that time. The information and disclosures contained in those media were believed to be accurate and complete as of the date of recording, but may not reflect current market conditions or Alongside, LLC, policies.

All content is provided for educational purposes only and does not constitute personalized investment advice. Read below for current disclosures and potential conflicts of interest.

This media is provided for informational and educational purposes only and does not consider the investment objectives, financial situation, or particular needs of any consumer. Nothing in this program should be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell, or hold any security or to adopt any investment strategy.

The views and opinions expressed are those of the host and any guest, current as of the date of recording, and may change without notice as market, political or economic conditions evolve. All investments involve risk, including the possible loss of principal. Past Performance is no guarantee of future results.

Legal & Tax Disclosure

Consumers should consult their own qualified attorney, CPA, or other professional advisor regarding their specific legal and tax situations.

Advisor Disclosures

Alongside, LLC, doing business as Keil Financial Partners, is an SEC-registered investment adviser. Registration does not imply a certain level of skill or expertise. Advisory services are delivered through the Alongside, LLC platform. Keil Financial Partners is independent, not owned or operated by Alongside, LLC.

Additional information about Alongside, LLC – including its services, fees and any material conflicts of interest – can be found at https://adviserinfo.sec.gov/firm/summary/333587 or by requesting Form ADV Part 2A.

The content of this media should not be reproduced or redistributed without the firm’s written consent. Any trademarks or service marks mentioned belong to their respective owners and are used for identification purposes only.

For important disclosures visit: https://keilfp.com/disclosures/

===

Check out Jeremy’s latest podcast on retirement planning by listening on “Apple Podcasts” or “Google Podcasts” or read below for Aging In Place.

[152] – When is the best time to start researching long-term care facilities? What are the most important factors to consider when aging in place?

In this episode, Jeremy Keil welcomes Jenny Wagner, Co-Owner and Elder Care Advocate of Vesta Senior Network, to talk about aging in place and long-term care planning, exploring services like helping families find senior living options and guiding them through long-term care choices. They stress the value of education in informed decision-making, address adult children’s concerns for aging parents, highlight fall prevention through eye checkups, and emphasize accessible living considerations.

Jenny discusses:

One of the most common questions is, “When is the best time to start researching long-term care facilities?” There isn’t a one-size-fits-all answer because it varies for everyone. 

Our guest, Jenny Wagner, Co-Owner and Elder Care Advocate of Vesta Senior Network, suggests that the right time to start researching is when you notice daily tasks start to become challenging. This could include difficulty with personal hygiene, meal preparation, medication management, or mobility issues.

It’s important to start the research process early to ensure you have enough time to explore different options, visit facilities, and make an informed decision. Waiting until a crisis occurs can limit your choices and add unnecessary stress to an already challenging situation. By starting early, you can also involve your loved ones in the decision-making process and have open discussions about your preferences and priorities.

80% of nursing home rehabilitation stays are from fall incidents. Falls are a common concern as we age, but there are steps you can take to prevent them. Jenny emphasized the importance of removing hazards and scheduling regular eye checkups.

Improved depth perception and reduced risk of falls, especially when walking on stairs, can be achieved through regular eye checkups. She also stressed the importance of getting eyeglasses that fit properly and checking for any contraindications between medications.

In addition to eye health, maintaining physical strength and balance is crucial. Engaging in regular exercise, such as strength training and balance exercises, can help reduce the risk of falls. It’s also important to make your living environment safe by removing tripping hazards.

By being proactive and taking these preventive measures, you can significantly reduce the risk of falls and maintain your independence as you age.

Aging in place is a goal for many seniors, as it allows them to maintain their independence and stay in the comfort of their own homes. Aging in place well revolves around three key elements: safety, independence, and comfort. 

Safety takes precedence as we age, addressing potential physical challenges such as reduced energy and balance. Ensuring that daily necessities are easily accessible, like laundry facilities on the same level, contributes to safety.

Independent senior communities can be a viable option, providing not only accessible living spaces but also social engagement and healthcare services, all without the need to drive. These communities mimic cruise ships, offering a range of amenities that accommodate varying preferences.

Tailoring your choices to align with your personality and needs is essential, whether it’s a senior living arrangement or a well-designed condo. By carefully considering these factors and planning ahead, you can age in place while maintaining the quality of life you desire.

When considering an assisted living facility, several important factors come into play.

Firstly, assessing the individual’s care needs is paramount, ranging from assistance with daily tasks like bathing and dressing to specialized care for issues such as memory loss or incontinence.

Financial considerations are crucial too, requiring an understanding of available resources, long-term care policies, and sustainable choices.

Personal preferences play a key role as well. Identifying activities, food preferences, and lifestyle choices helps to pinpoint a facility that aligns with the individual’s interests and needs.

Geographical proximity to family and the facility’s care track record also matter.

If you’re unsure, get an expert involved. Guidance, education about licensing, and detailed facility tours with someone who has experience can help you make a well-informed decision.

As time goes on, it’s important to acknowledge that care needs and financial situations can change.

If care or health requirements shift, you might find yourself needing a different level of assistance or even medical attention that your current residence cannot provide.

Your financial circumstances may also fluctuate, potentially affecting the budget available for care. In such cases, it’s essential to have a facility or living arrangement that can accommodate these changes. 

This is why it’s important to ask facility representatives about their policies regarding adjustments to care levels and understanding the financial plans they offer for changing circumstances.

In Wisconsin, for instance, the availability of Title 19 and the Family Care program offers peace of mind, ensuring that individuals can receive necessary care even if their financial situation changes. Therefore, asking insightful questions and planning for contingencies becomes pivotal in ensuring a smooth transition and continued well-being.

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To learn more about aging in place, check out the resources below!

If you have any questions, feel free to contact us or our guest, Jenny Wagner, using the contact information provided below!

Jenny Wagner, Vesta Co-Owner and Elder Care Advocate, is an experienced sales and marketing professional. Jenny has worked across a variety of specialized industries throughout her career. Each industry has required her to become knowledgeable in a very specific field. Whether working in a technical sales environment with chemists and packaging engineers, or doing crisis management for a distribution firm, Jenny learned to be the problem-solver that she is today. Using her problem solving skills to help families through an emotionally difficult time is what Jenny loves most about her current role. Jenny lives in Wauwatosa, is married to Michael, and they are blessed with two sons and their dog, Archie.

Disclosures

Videos/Podcasts/Blogs (media) published prior to June 30, 2025, were recorded and approved while the advisor was affiliated with Thrivent Advisor Network. These media reflect the advisor’s views and interpretations at that time. The information and disclosures contained in those media were believed to be accurate and complete as of the date of recording, but may not reflect current market conditions or Alongside, LLC, policies.

All content is provided for educational purposes only and does not constitute personalized investment advice. Read below for current disclosures and potential conflicts of interest.

This media is provided for informational and educational purposes only and does not consider the investment objectives, financial situation, or particular needs of any consumer. Nothing in this program should be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell, or hold any security or to adopt any investment strategy.

The views and opinions expressed are those of the host and any guest, current as of the date of recording, and may change without notice as market, political or economic conditions evolve. All investments involve risk, including the possible loss of principal. Past Performance is no guarantee of future results.

Legal & Tax Disclosure

Consumers should consult their own qualified attorney, CPA, or other professional advisor regarding their specific legal and tax situations.

Advisor Disclosures

Alongside, LLC, doing business as Keil Financial Partners, is an SEC-registered investment adviser. Registration does not imply a certain level of skill or expertise. Advisory services are delivered through the Alongside, LLC platform. Keil Financial Partners is independent, not owned or operated by Alongside, LLC.

Additional information about Alongside, LLC – including its services, fees and any material conflicts of interest – can be found at https://adviserinfo.sec.gov/firm/summary/333587 or by requesting Form ADV Part 2A.

The content of this media should not be reproduced or redistributed without the firm’s written consent. Any trademarks or service marks mentioned belong to their respective owners and are used for identification purposes only.

For important disclosures visit: https://keilfp.com/disclosures/

===

Check out Jeremy’s latest podcast on retirement planning by listening on “Apple Podcasts” or “Google Podcasts” or read below for Money and Longevity: Essential Pre-Retirement Insights You Must Know.

[151] – Can your personal beliefs about money and longevity determine your retirement readiness? 

In this episode, Jeremy Keil breaks down the latest research from TIAA on financial literacy, longevity literacy, and retirement readiness. He emphasizes the concept of “longevity literacy” and how it can seriously impact your retirement game plan. His summary highlights the study’s findings, revealing the lack of knowledge about retirement longevity across America. 

Jeremy provides guidance and resources about obtaining a personal longevity estimate, the importance of understanding financial literacy, and a brief overview of our 5-Step Retirement Plan to help you better prepare for retirement.

Jeremy discusses:

The TIAA did a study on Financial Literacy, Longevity Literacy, And Retirement Readiness where they highlighted that longevity literacy is all about understanding how long you might live during your retirement years. It has a big impact on how well-prepared you are for retirement. 

Let’s break down what this means and why it matters with a summary of the report.

One of the interesting findings from the report was that longevity affects your retirement more than inflation. Why would that be? While everyone experiences similar inflation in the US, the large variability of longevity causes it to be a bigger risk than inflation.

Another interesting fact from the report is that half of Americans don’t know how long they could live in retirement. How can you plan for retirement successfully if you don’t know how long of a retirement to plan for? Knowing your longevity affects how much retirement income you’ll need to prepare for.

A resource we like to share with you to help you calculate your longevity and plan for retirement is longevityillustrator.org. You can calculate your longevity, and even your joint longevity if you have a significant other.

Remember, the more you know about longevity, the more prepared you are for retirement.

When you calculate your longevity, you aren’t calculating your life expectancy. 

Life expectancy is the average age that people might live to, based on statistics. It’s not a certain prediction of when you’ll pass away. For instance, if your life expectancy is 80, there’s only about a 4% chance that you’ll actually die exactly at that age. Life expectancy is the middle point among all the possible ages people might reach. It’s a range, not an exact number. 

Longevity, on the other hand, goes beyond averages. It recognizes that people can live longer or shorter lives compared to the average.

If you’re planning for retirement with a partner, remember that one of you might live below or above the average. Longevity suggests that planning should account for these possibilities rather than banking on an exact age. 

Remember, life expectancy is not death certainty.

Using tools like longevityillustrator.org can help you understand the likelihood of living beyond average and make more informed retirement decisions.

Your DNA is not the sole determinant of how long you’ll live – this is a crucial part of understanding longevity. 

Many folks look at their family history and conclude that their lifespan will mimic that of their parents, grandparents, or relatives. However, there’s an important factor at play that often goes unnoticed: medical advancements.

While your ancestors might have lived in times when medical care and lifestyle habits were different, your present reality benefits from significant progress in healthcare, exercise routines, and healthier living practices. For instance, consider the advances made in the past few decades alone. Medicine, treatments, and overall health awareness have significantly improved. Even if family members were affected by health issues in the past, those outcomes might not apply to you because of the positive changes in healthcare and lifestyle. 

When it comes to predicting your own longevity, remember that your DNA isn’t the only factor – your lifestyle choices and the advancements in healthcare have a substantial impact.

Your retirement is influenced by your decisions more than by the actions of politicians or the economy. While politicians and economic trends can impact things like taxes and inflation, the choices you make regarding retirement carry even more weight.

 Consider that raising taxes by a certain percentage or inflation increasing doesn’t necessarily have to translate into a negative effect on your retirement, provided you’ve taken proactive steps. Your choices regarding Social Security, for instance, can lead to differences of up to 76% in the benefits you receive.

You have control over when you retire, how much you spend, and how you invest your money, unlike the influence politicians or the economy wield. 

Feeling in control often leads to better preparedness for retirement. When you educate yourself and make informed decisions, you allow yourself to take control of your retirement and financial future.

Our comprehensive five-step retirement plan is designed to empower you to take control of your retirement journey and make informed decisions that align with your goals.

The first step is understanding how much you’ll spend in retirement, encompassing factors like living expenses, taxes, healthcare costs, and your anticipated retirement duration.

Next, we focus on how much income you’ll generate during retirement. Even after you stop working, various income streams such as Social Security, pensions, annuities, and real estate can play a vital role in maintaining your financial security. Optimizing these income sources can maximize your spending power in retirement.

The third step involves strategic tax planning. You have the ability to shape your tax burden by making decisions like timing withdrawals and optimizing your Social Security strategy. Minimizing taxes during your retirement years allows you to retain more of your hard-earned money.

After addressing spending, income, and taxes, the fourth step delves into investments. While investments are important, they should be aligned with your overall retirement strategy. By assessing your risk tolerance and investment decisions, you can strike a balance between growth and stability.

Lastly, the fifth step centers on legacy and risk management. Addressing potential risks and considering your legacy plans ensures that you and your loved ones are protected, regardless of what the future holds.

Our five-step retirement process can help you make well-informed choices at each stage, providing you with the confidence and control to enjoy a fulfilling retirement. For more detailed information about each step, visit fivestepretirementplan.com, where you can access the 5 videos that guide you through the process.

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To learn more about financial literacy and longevity, check out the resources below!

If you have any questions, feel free to contact us using the contact information provided below!

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Disclosures

Videos/Podcasts/Blogs (media) published prior to June 30, 2025, were recorded and approved while the advisor was affiliated with Thrivent Advisor Network. These media reflect the advisor’s views and interpretations at that time. The information and disclosures contained in those media were believed to be accurate and complete as of the date of recording, but may not reflect current market conditions or Alongside, LLC, policies.

All content is provided for educational purposes only and does not constitute personalized investment advice. Read below for current disclosures and potential conflicts of interest.

This media is provided for informational and educational purposes only and does not consider the investment objectives, financial situation, or particular needs of any consumer. Nothing in this program should be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell, or hold any security or to adopt any investment strategy.

The views and opinions expressed are those of the host and any guest, current as of the date of recording, and may change without notice as market, political or economic conditions evolve. All investments involve risk, including the possible loss of principal. Past Performance is no guarantee of future results.

Legal & Tax Disclosure

Consumers should consult their own qualified attorney, CPA, or other professional advisor regarding their specific legal and tax situations.

Advisor Disclosures

Alongside, LLC, doing business as Keil Financial Partners, is an SEC-registered investment adviser. Registration does not imply a certain level of skill or expertise. Advisory services are delivered through the Alongside, LLC platform. Keil Financial Partners is independent, not owned or operated by Alongside, LLC.

Additional information about Alongside, LLC – including its services, fees and any material conflicts of interest – can be found at https://adviserinfo.sec.gov/firm/summary/333587 or by requesting Form ADV Part 2A.

The content of this media should not be reproduced or redistributed without the firm’s written consent. Any trademarks or service marks mentioned belong to their respective owners and are used for identification purposes only.

For important disclosures visit: https://keilfp.com/disclosures/

===

Check out Jeremy’s latest podcast on retirement planning by listening on “Apple Podcasts” or “Spotify” or read below for How To Plan For A Military Retirement.

[150] – Are you a member of the military? Curious about how to navigate retirement planning?

Embarking on a retirement journey holds distinct significance for those who’ve dedicated their lives to military service.

In this episode, Jeremy Keil interviews General Michael Meese from the American Armed Forces Mutual Aid Association (AAFMAA) about military retirement planning. Mike talks about the changes made to retirement benefits for military personnel, including the introduction of a defined contribution plan similar to a 401(k) and the Thrift Savings Plan (TSP). He also highlights the importance of insurance coverage and the Survivor Benefit Plan for retirees.

Mike discusses:

AAFMAA, the American Armed Forces Mutual Aid Association, is a unique and historic organization originating from the Midwest in the late 19th century. Born out of a need to support families of service members lost in battle, AAFMAA was initially established as the Army Mutual Aid Association, offering a form of mutual insurance to provide financial assistance to widows and families.

Over the years, it has evolved into a comprehensive mutual organization dedicated to assisting military members and their survivors. With a membership of over 100,000, AAFMAA provides a range of services, including insurance, mortgages, financial planning, and wealth management.

Through its mutual aid principles, AAFMAA focuses on taking care of survivors of service members, both active duty and retirees, offering critical support in areas such as military retirement and the survivor benefit plan.

The military retirement system operates based on a defined benefit plan designed to encourage service members to retire after about 20 years of service.

Traditionally, people became eligible for retirement benefits only after completing a 20-year tenure. Upon reaching this milestone, retirees would receive a base payment equivalent to 50% of their average base pay from the last three years. With each additional year of service, retirees would gain incremental increases in their retirement payment, reaching 75% of their base pay after 30 years of service. Some service members, typically senior officers or sergeants majors, might extend their careers up to 40 years to retire with 100% of their base pay.

However, in 2018, Congress introduced changes to address the issue of people leaving the military before reaching 20 years without any retirement benefits. This reform modified the defined benefit plan, offering 40% of pay at 20 years and 60% at 75 years.

To enhance retirement security, Congress introduced a defined contribution plan similar to a 401(k). The Thrift Savings Plan (TSP) was established. It functions as a savings and investment platform where you can allocate funds based on their role in the federal government.

For those who entered the military after 2018, there’s a matching contribution of up to 5%, while pre-2018 military members like General Michael Meese could contribute without matching.

The TSP offers a range of investment options encompassing stable value, government, bond, small cap, large cap, and international funds. Investors can distribute their contributions among these funds or opt for a life cycle fund, which adjusts investments automatically based on chosen retirement dates, ensuring a balanced and optimal investment approach.

The ServiceMembers Group Life Insurance (SGLI) is an automatic life insurance program for military personnel, offering substantial coverage of $500,000 at a competitive cost of $30 per month.

SGLI provides financial security to service members while they are active, pooling the health diversity of military personnel to maintain affordability without requiring underwriting.

However, it’s important to note that SGLI coverage ends 120 days after a service member’s departure from the military. To ensure continued coverage beyond military service, you should explore insurance options with organizations like AAFMAA or similar providers.

To switch to the Veterans’ Group Life Insurance (VGLI) after leaving the military, you need to apply for it within 240 days of your departure. This application window is crucial, as it allows you to obtain VGLI coverage without needing a medical exam. This is particularly important for service members with existing health conditions, as they can secure coverage within this timeframe without facing medical underwriting.

However, it’s important to note that VGLI premiums can be comparatively higher due to its acceptance of all applicants, regardless of their health status. For instance, the rates for those in their fifties can be nearly 10 times higher than what they paid during their military service. Therefore, if you are reasonably healthy and want more affordable alternatives, it’s advisable to explore other insurance providers. Seeking an underwritten policy from these organizations within the 240-day window might lead to substantially lower rates compared to VGLI, with some instances showing up to a 75% reduction in premiums.

When approaching retirement, service members should consider key factors that extend beyond financial calculations.

Firstly, it’s crucial to consider the implications for their family’s well-being. While military retirement offers a dependable income stream adjusted annually, it’s important to remember that this income stops upon the retiree’s passing. This highlights the importance of the survivor benefit plan, a critical decision-making point during retirement. By contributing 6.5% of their retired pay, retirees secure a safety net for their spouse, ensuring a continuation of 55% of the retired pay after their death.

Secondly, retirement decisions hold a long-lasting impact. The choices made as a 37-year-old retiree resonates throughout life, even as one becomes a 93-year-old. The importance of considering factors like life insurance and retirement strategies cannot be overstated. These decisions are interwoven with the broader narrative of life post-military service. Acknowledging this transformation underscores the need for foresight and meticulous planning, especially when addressing these impactful decisions that might be made only once.

Retirees should adopt a holistic approach that takes long-term familial security into consideration. Balancing financial preparation with family support is key as service members transition into retirement.

As veterans transition into civilian life after dedicating years to military service, ensuring their health and well-being remains a top priority. One crucial step that often gets overlooked is obtaining a comprehensive physical examination from the military before retirement. This examination not only offers insights into their current health status but also documents any conditions that may have arisen during their service. 

Upon receiving this comprehensive examination, veterans can then leverage the Department of Veterans Affairs (VA) resources. By sharing their military medical records with the VA, veterans gain access to a range of health care benefits and support. These benefits cover healthcare services for conditions that may have emerged during military service, ensuring that veterans receive the medical attention they deserve. The VA also offers a pension and compensation exam, which can provide disability pay for health conditions that either originated or were exacerbated by military service.

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To learn more about How To Plan For A Military Retirement, check out the resources below!

If you have any questions, feel free to contact us or our guest, Mike Meese, using the contact information provided below!

Mike serves as President of AAFMAA, overseeing all aspects of the Association to ensure the financial security and independence of the American Armed Forces Community. He joined AAFMAA in 2013 as Chief Operating Officer and later became AAFMAA’s Executive Vice President and Secretary. He is a leader in military and Veterans issues, including chairing the 2016-17 Transition Team for the Department of Veterans Affairs. 

Mike retired from the United States Army as a Brigadier General having concluded his 32-year career teaching economics and national security courses while serving as the Professor and Head of the Department of Social Sciences at the U.S. Military Academy.  He has written numerous articles and two books: the Armed Forces Guide to Personal Financial Planning and American National Security. He served in a variety of strategic political-military positions including deployments to Afghanistan, Iraq, and Bosnia for a total of 31 months and was the Executive Director of the Secretary of the Army’s Transition Team in 2005. He is a graduate of the National War College, U.S. Military Academy, and earned his Ph.D., MPA and M.A. from Princeton University.

Disclosures

Videos/Podcasts/Blogs (media) published prior to June 30, 2025, were recorded and approved while the advisor was affiliated with Thrivent Advisor Network. These media reflect the advisor’s views and interpretations at that time. The information and disclosures contained in those media were believed to be accurate and complete as of the date of recording, but may not reflect current market conditions or Alongside, LLC, policies.

All content is provided for educational purposes only and does not constitute personalized investment advice. Read below for current disclosures and potential conflicts of interest.

This media is provided for informational and educational purposes only and does not consider the investment objectives, financial situation, or particular needs of any consumer. Nothing in this program should be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell, or hold any security or to adopt any investment strategy.

The views and opinions expressed are those of the host and any guest, current as of the date of recording, and may change without notice as market, political or economic conditions evolve. All investments involve risk, including the possible loss of principal. Past Performance is no guarantee of future results.

Legal & Tax Disclosure

Consumers should consult their own qualified attorney, CPA, or other professional advisor regarding their specific legal and tax situations.

Advisor Disclosures

Alongside, LLC, doing business as Keil Financial Partners, is an SEC-registered investment adviser. Registration does not imply a certain level of skill or expertise. Advisory services are delivered through the Alongside, LLC platform. Keil Financial Partners is independent, not owned or operated by Alongside, LLC.

Additional information about Alongside, LLC – including its services, fees and any material conflicts of interest – can be found at https://adviserinfo.sec.gov/firm/summary/333587 or by requesting Form ADV Part 2A.

The content of this media should not be reproduced or redistributed without the firm’s written consent. Any trademarks or service marks mentioned belong to their respective owners and are used for identification purposes only.

For important disclosures visit: https://keilfp.com/disclosures/

===

Check out Jeremy’s latest podcast on retirement planning by listening on “Apple Podcasts” or “Google Podcasts” or read below for How To Keep Your Home Safe and Healthy in Every Season.

[149] – Whether you’re facing scorching heat, pounding rain, freezing temperatures, or strong winds, keeping your home safe in every season is crucial to ensure your family’s comfort and well-being.

In this episode, Jeremy Keil talks about how you can prepare your home for all four seasons of the year with home maintenance expert Daniel Felt from Kura Home Maintenance. Daniel talks about his motivation behind starting the company and the homeowners he helps maintain their homes, particularly the older folks who need the most help. He also shares tips on preparing your home for the changing seasons to keep your property in top condition.

Daniel discusses:

Are you overwhelmed with the complexities of maintaining your home in every season? Whether you’re in retirement or still working, keeping your home safe and healthy requires attention to various aspects that may be unfamiliar to you. With changing building codes, increasing appliance complexities, and the desire to age in place, home maintenance can become challenging.

Kura Home Maintenance serves a diverse range of clients, from retirees to dual-income families with kids. They specialize in helping homeowners keep their homes safe and healthy in every season. From maintaining appliances to managing filters and addressing code requirements, they take care of the details so you can enjoy your home without the stress. Their primary focus is to ensure that your house is properly maintained so that you can live there longer, it’s easier to live there, you’re happier, and things don’t break down faster.

Their co-founder, Daniel Felt, shares some tips with us to help you prepare your home for every season of the year. Whether you’re in retirement or still in your working years, he shares his knowledge and expertise to help keep your home safe and healthy.

In the winter,  it’s crucial to take steps to maintain your home, especially if you live in an area with heavy snowfall. One key issue to address is snow on your roof, as it can lead to problems like ice dams. Ice dams occur when heat from your home escapes into the attic due to insufficient insulation or a poorly installed vapor layer, causing snow to melt and refreeze at the edge of the roof. This ice buildup can then seep underneath shingles and into your home, resulting in costly damage.

Another common issue in winter is snow accumulation on decks and around patio doors. As snow melts, the water may have nowhere to go and can seep into your basement, even if it wasn’t initially a problem. Additionally, sump pump failures can occur if the pump hose is not detached in the fall and freezes during temperature fluctuations. This can cause the pump to burn out, leading to potential water damage in your home.

In addition to these specific winter-related issues, it’s important to continue regular home maintenance tasks such as changing filters and cleaning refrigerator coils. Being vigilant about addressing winter-specific problems like snow on the roof, snow accumulation around the home, and sump pump maintenance can help prevent costly damage and ensure your home remains safe and well-maintained during the winter season.

Maintaining your home in the spring requires some key tasks to ensure efficient functioning.

One of them is cleaning your AC unit to remove any debris like leaves, dust, or wood that may have accumulated over the winter. You can do this yourself with a hose or have it professionally cleaned.

Checking and cleaning your gutters is also a crucial task in the spring, as they may have become detached during winter.

If you have a humidifier in your home, it’s important to switch it to the summer setting in the spring. Keeping humidity levels between 30% and 40% is ideal to avoid issues like static shocks and condensation on windows that can lead to rot or mold problems.

These are some of the small but important tasks to consider when maintaining your home in the spring to ensure you keep your home safe and healthy.

Summer can be a relatively easier time for household maintenance tasks compared to other seasons.

It’s a good opportunity to tackle annual tasks such as cleaning dryer vents and refrigerator coils, as well as checking and changing filters, like those for ice or water. It’s also a great time to inspect the roof for any damage from previous weather events, such as hail storms, as the roof is less likely to be slippery in warmer weather.

Checking the gutters and doing a thorough once-over of the house is also recommended during summer.

It’s also important to conduct a general inspection of everything else to ensure the house is running smoothly. This can include checking for any signs of wear and tear, addressing potential issues, and making sure all systems and components are in good working order.

By taking these proactive measures during the summer, you can help maintain your home’s condition and prevent potential problems down the road.

Fall is probably the most important time of the year to maintain your home because you’re getting ready for winter. 

Fall maintenance tasks include checking and cleaning gutters, changing filters in your home, and ensuring your air exchanger is clean. Cleaning gutters around Halloween is ideal as most leaves have fallen by then, preventing them from decomposing and causing issues during winter.

Changing filters, such as those in your HVAC system and humidifier, is crucial for maintaining good indoor air quality, especially if you have pets or if your home is tightly sealed.

Air exchangers, also known as ERVs or HRVs, are newer technologies commonly found in utility rooms of homes built in the last 10 to 15 years. They are responsible for bringing fresh air into the home and require regular cleaning. Clogged filters in the air exchanger can result in an imbalance of air pressure in the home and can negatively impact air quality. Mold and other pollutants can accumulate in the filters, affecting the health of you and your family. Regular maintenance of these often neglected areas can significantly improve the air quality in your home and prevent health issues.

Taking these steps to maintain gutters, change filters, and clean air exchangers can help ensure a healthy indoor environment during the winter months when we spend more time indoors.

___________________________________________________________________________

To learn more about maintaining your home in all seasons, check out the resources below!

If you have any questions, feel free to contact us or our guest, Daniel Felt, using the contact information provided below!

Daniel Felt is the co-founder of Kura Home Maintenance, a company that provides comprehensive home maintenance services in Minneapolis, Minnesota. With a background growing up on a farm in Central Minnesota, Daniel and his team visit approximately 800 homes every three to four months, performing tasks that most homeowners don’t have the time or expertise to handle. Since starting Kura Home Maintenance in 2016, the company has grown to include a subscription-based model and one-time services for air duct cleaning, AC unit cleaning, and dryer vent cleaning.

Disclosures

Videos/Podcasts/Blogs (media) published prior to June 30, 2025, were recorded and approved while the advisor was affiliated with Thrivent Advisor Network. These media reflect the advisor’s views and interpretations at that time. The information and disclosures contained in those media were believed to be accurate and complete as of the date of recording, but may not reflect current market conditions or Alongside, LLC, policies.

All content is provided for educational purposes only and does not constitute personalized investment advice. Read below for current disclosures and potential conflicts of interest.

This media is provided for informational and educational purposes only and does not consider the investment objectives, financial situation, or particular needs of any consumer. Nothing in this program should be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell, or hold any security or to adopt any investment strategy.

The views and opinions expressed are those of the host and any guest, current as of the date of recording, and may change without notice as market, political or economic conditions evolve. All investments involve risk, including the possible loss of principal. Past Performance is no guarantee of future results.

Legal & Tax Disclosure

Consumers should consult their own qualified attorney, CPA, or other professional advisor regarding their specific legal and tax situations.

Advisor Disclosures

Alongside, LLC, doing business as Keil Financial Partners, is an SEC-registered investment adviser. Registration does not imply a certain level of skill or expertise. Advisory services are delivered through the Alongside, LLC platform. Keil Financial Partners is independent, not owned or operated by Alongside, LLC.

Additional information about Alongside, LLC – including its services, fees and any material conflicts of interest – can be found at https://adviserinfo.sec.gov/firm/summary/333587 or by requesting Form ADV Part 2A.

The content of this media should not be reproduced or redistributed without the firm’s written consent. Any trademarks or service marks mentioned belong to their respective owners and are used for identification purposes only.

For important disclosures visit: https://keilfp.com/disclosures/

===

Check out Jeremy’s latest podcast on retirement planning by listening on “Apple Podcasts” or “Google Podcasts” or read below for 5 Questions You Need To Answer Before You Retire.

[148] – Are you ready to retire? Make sure you’ve answered these questions.

In this episode, Jeremy Keil discusses 5 important questions you need to think about and answer before you retire. He emphasizes the need to think about personal desires and goals when deciding when to retire rather than external factors like pensions or social security. He also goes over the 4 stages of retirement from Dr. Riley Moynes’ TEDx talk and the importance of finding purpose and passion in retirement and touches on topics such as health insurance options, life expectancy, and tax management in retirement.

Jeremy discusses:

Have you ever wondered when the perfect time to retire is? 

We dedicated a full episode to this question, When Should I Retire? With Steve Lopez. The first thing you should ask yourself is: when do you actually want to retire?

It’s not just about crunching numbers and finances; it’s about envisioning the life you want to lead once you bid farewell to the working world. Picture your dream retirement filled with hobbies, adventures, and cherished moments.

Of course, external factors like changes in your company contract or healthcare options may come into play. But remember, the decision to retire should be driven by your personal desires and financial readiness.

It’s all about retiring on your terms. You really ought to retire when you want to and can afford to, but take your pension and Social Security when it actually gives you the most money. That’s the best way to go.

So think of when you want to retire as the first question you should ask yourself when you plan for your retirement.

As you approach retirement, the second question that comes to mind is “What will I do in retirement?”

Many people want to retire simply to escape the daily grind. When asked when they want to retire, the common response is “yesterday.” But adapting to a lack of structure and having free time is a struggle we see often, so let’s take a step back and really think about what life will look like in retirement.

Dr. Riley Moynes’ TEDx talk outlines the 4 stages of retirement. Being aware of them might help you look through and plan for what you will do in retirement.

Stage 1 is the vacation phase. This is what most 55-year-olds think about retirement. It’s where you wake up when you want, do what you want, and don’t really have a routine. It’s perfect, you love it, you’re on vacation. But it only lasts anywhere from 6 months to 1 year.

Stage 2 is when you feel lost. It’s when you realize you’ve lost your routine. Unfortunately, this second phase is where you experience a lot of depression, fear, and anxiety because everything that you thought retirement would be, maybe it’s no longer that.

Hopefully, you can get through stage 2 as quickly as possible and move into stage 3 which is known as the trial and error phase. It’s when you’re just trying to figure out what to do next. This might be an encouragement to go ahead and take those dream vacations in the first stage and maybe have that plan ahead of time for what you’ll do in retirement and what you want to try out, like volunteering or trying a new sport.

Lastly, we have stage 4 and that’s the happiest part of retirement. It’s the reinvent and repurpose phase. In this stage, people have found their purpose outside of work, and that almost always involves helping others in some way. Maybe you’ll be more involved with the church, your school, or your family, but what matters is it’s your choice and your passion.

Thinking through this ahead of time can help you quickly get to stage 4 in retirement, and experience the happy and settled phase of your retired life.

Planning for health insurance in retirement is a crucial consideration that often gets overlooked. Many individuals continue working solely for the sake of maintaining their employer-sponsored health coverage. However, there are alternative options worth exploring. The primary options are the Affordable Care Act (ACA) for those below 65 and Medicare for those who reach 65. It’s remarkable how often people are unaware of these choices and instead work until 65 solely to gain access to Medicare.

Understanding the available options is key. COBRA, for instance, allows employees of companies with over 20 employees to continue their current health insurance for up to 18 months. This means you could potentially retire at 63 and a half, opting for COBRA and maintaining the same insurance coverage you had while working, albeit at the full cost without your employer’s subsidy.

The Affordable Care Act is another viable option. It functions similarly to Medicare in that both are subsidized health insurance provided by the government. By planning your income strategically, you can qualify for government-subsidized health insurance through the ACA, effectively replacing the employer subsidy you were accustomed to.

The bottom line is, don’t assume that working until 65 is the only way to secure health insurance. Take the time to explore your options and consider how you can adjust your income to ensure you pay less than anticipated. Health insurance is a significant concern for many, but with a little research and exploration, you may find more flexibility and affordability than you originally thought. So, ask yourself, “How will I get health insurance in retirement?” and be proactive in finding the best solution for your unique situation.

Determining how long you will live is a vital question to address when planning for retirement, but often gets overlooked.

Many people base their assumptions on life expectancy solely on general figures they’ve come across, like the average age mentioned in the newspaper or the age at which their relatives passed away. However, these numbers can be misleading and fail to consider the advancements in medical care and healthier lifestyles.

That’s why it’s crucial to seek a more accurate assessment of your life expectancy. Longevityillustrator.org is an excellent resource where you can gain a clearer understanding of your personal life expectancy based on various factors and statistical data. Understanding your life expectancy is important because if you happen to pass away earlier than expected, it may affect loved ones who rely on your income. On the other hand, living longer means ensuring your investments can sustain your lifestyle for an extended period.

Calculating joint life expectancy is especially important for couples because one spouse almost always is expected to outlive the other. This means planning for a longer retirement for both partners. This requires taking into account the potential of extended widowhood and making informed decisions about income and financial provisions during that period.

By understanding your life expectancy, you can make more informed decisions about your retirement plans.

When it comes to taxes in retirement, you have more control than ever before. Unlike during your working years, you can make strategic decisions about when to take your pension, when to claim Social Security, and which accounts to withdraw from.

By planning ahead and considering factors like different tax rates and filing statuses, such as married filing jointly, you can identify opportunities to lower your taxes in retirement.

Taking proactive steps, such as Roth conversions, can also help optimize your tax situation and reduce your lifetime tax bill.

So, seize the opportunity to have greater control over your taxes and plan strategically for a tax-efficient retirement.

___________________________________________________________________________

To learn more about 5 questions you need to answer before you retire, check out the resources below!

If you have any questions, feel free to contact us using the contact information provided below!

Disclosures

Videos/Podcasts/Blogs (media) published prior to June 30, 2025, were recorded and approved while the advisor was affiliated with Thrivent Advisor Network. These media reflect the advisor’s views and interpretations at that time. The information and disclosures contained in those media were believed to be accurate and complete as of the date of recording, but may not reflect current market conditions or Alongside, LLC, policies.

All content is provided for educational purposes only and does not constitute personalized investment advice. Read below for current disclosures and potential conflicts of interest.

This media is provided for informational and educational purposes only and does not consider the investment objectives, financial situation, or particular needs of any consumer. Nothing in this program should be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell, or hold any security or to adopt any investment strategy.

The views and opinions expressed are those of the host and any guest, current as of the date of recording, and may change without notice as market, political or economic conditions evolve. All investments involve risk, including the possible loss of principal. Past Performance is no guarantee of future results.

Legal & Tax Disclosure

Consumers should consult their own qualified attorney, CPA, or other professional advisor regarding their specific legal and tax situations.

Advisor Disclosures

Alongside, LLC, doing business as Keil Financial Partners, is an SEC-registered investment adviser. Registration does not imply a certain level of skill or expertise. Advisory services are delivered through the Alongside, LLC platform. Keil Financial Partners is independent, not owned or operated by Alongside, LLC.

Additional information about Alongside, LLC – including its services, fees and any material conflicts of interest – can be found at https://adviserinfo.sec.gov/firm/summary/333587 or by requesting Form ADV Part 2A.

The content of this media should not be reproduced or redistributed without the firm’s written consent. Any trademarks or service marks mentioned belong to their respective owners and are used for identification purposes only.

For important disclosures visit: https://keilfp.com/disclosures/

===

Check out Jeremy’s latest podcast on retirement planning by listening on “Apple Podcasts” or “Google Podcasts” or read below for How to Engineer the Second Half of Your Life.

[147] – Many sales-focused financial advisors don’t like working with engineers because these people are all about the numbers, but our guest, Bill Keen, loves working with them for the same reason.

In this episode, Jeremy Keil speaks with Bill Keen, founder and CEO of Keen Wealth Advisors, Bestselling Author and Co-host of the Keen On Retirement Podcast. Together, they talk about how to engineer the second half of your life and the importance of focusing on what you can control.

Bill discusses:

Retirement planning can be overwhelming, but it doesn’t have to be. When you work with a trusted advisor and have a plan in place, you can achieve a comfortable retirement. It’s important to focus on what you can control, avoid emotional decisions, and have a process in place to navigate unexpected challenges.

With careful planning and a positive mindset, you can engineer the second half of your life to be fulfilling and comfortable.

Retirement planning can be a source of anxiety for many people but it’s important to remember that with careful planning and working with a trusted advisor, you can achieve a comfortable retirement. Both planning and investing for your retirement are important because planning includes considerations such as tax, income, and insurance planning, while investments serve as the engine that drives the plan forward.

To address if you’ll be okay in retirement, a good financial advisor will aim to minimize taxes, maximize returns based on individual risk tolerances, align both spouses’ perspectives, and educate the next generation about the family’s financial situation.

Even if you question whether retiring with financial independence is a realistic possibility, your retirement goals can be achieved with the right planning and investment strategies in place.

When it comes to retirement planning, it’s not just about the numbers. There are important emotional and psychological aspects that need to be considered as well. Bill highlights some of the significant retirement questions that go beyond mere calculations.

One crucial question involves the transition from relying heavily on spreadsheets and number-crunching to gaining comfort and confidence in delegating financial matters to a trusted advisor. Many highly intelligent individuals, such as engineers who have excelled in their respective fields, recognize that outside of their expertise, they may feel like they’re in kindergarten when it comes to financial planning.

The emotional aspect of retirement is also an important consideration. Clients often express concerns about making impulsive decisions driven by emotions that could derail their retirement plans. They understand the importance of having a solid plan in place to prevent being swayed by media narratives or market volatility.

A good financial advisor can help clients develop self-awareness and overcome their emotional biases.

While crunching the numbers is essential for retirement planning, it’s equally important to address the emotional and psychological aspects. By partnering with a reliable financial advisor, you can navigate the complexities of retirement with confidence, overcome emotional biases, and stay on track toward your financial goals.

If you’re retiring in the next 20 years, we don’t think you have to worry about any major changes to Social Security benefits. Currently, there has been no legislation proposed regarding means testing for Social Security. However, Bill Keen mentioned it as a potential option for people earning over a certain income threshold, similar to what currently exists with Medicare.

It’s a system that considers income levels to determine eligibility or the extent of benefits Americans might receive.

He also mentions other possibilities, like raising income limits for taxing individuals, which may impact Social Security funding, and adjusting the claim dates for Social Security benefits to align them with increasing life expectancies.

While there is uncertainty around the future of Social Security, it’s important to have a plan in place that takes it into account.

The crossover point is the point when an individual reaches a financial position where they can comfortably retire and sustain their desired lifestyle without the need for additional income from work. Finding your crossover point is an important step in retirement planning, as it can help you determine when you can retire and how much you need to save.

Determining your crossover point involves assessing personal financial circumstances, goals, and evaluating the trade-offs between working longer and enjoying the benefits of retirement.

To determine your crossover point, talk to a financial advisor about these steps:

Understand Your Financial Standpoint: Evaluate your current financial situation, including your assets, savings, investments, and any outstanding debts. Determine your projected expenses in retirement and assess the income sources available to you, such as pensions, Social Security, and investment returns.

Calculate Retirement Needs: Estimate your desired annual retirement income by considering factors like living expenses, healthcare costs, travel plans, hobbies, and other lifestyle preferences. It’s essential to be realistic and consider inflation and potential unforeseen expenses.

Analyze Savings and Investments: Assess the growth potential and sustainability of your savings and investment portfolio. Consider consulting with a financial advisor who can help you determine the expected rate of return, risk tolerance, and suitable investment strategies based on your retirement goals.

Evaluate Retirement Age: Determine the ideal retirement age based on your financial readiness, personal aspirations, and health considerations. Be mindful that retiring earlier may require a larger retirement nest egg to ensure a comfortable lifestyle over a longer retirement period.

Assess the Trade-Offs: Consider the financial and non-financial aspects of working longer versus retiring earlier. Working an additional year or more allows for further savings and potentially higher Social Security benefits, but it may come at the cost of missing out on the freedom and experiences retirement offers.

Find Your Crossover Point: Continuously reassess your financial position and projected retirement needs. Once you reach a stage where you have accumulated enough wealth to sustain your desired lifestyle throughout retirement while taking into account your risk tolerance and investment returns, you have likely reached your crossover point.

A well-thought-out financial plan is essential, especially when navigating challenging times in the markets. A comprehensive financial plan considers various factors, including an individual’s goals. It helps you stay focused on your long-term goals as you navigate different market scenarios or changes to things like Social Security.

You cannot control the market, but you can control how you respond to it.

With the proper focus and disciplined strategy, you can weather market turbulences and make informed financial decisions.

Remember, the Serenity Prayer’s wisdom, which emphasizes accepting what we cannot change and taking charge of what we can, can serve as a guiding principle throughout this journey. In the face of uncertainties, staying committed to your financial plan and making proactive decisions can lead to financial success and a sense of empowerment.

So, just as Bill Keen says in his book, it’s important to understand the difference between what you can change and what you cannot when engineering the second half of your life.

___________________________________________________________________________

To learn more about How to Engineer the Second Half of Your Life, check out the resources below!

If you have any questions, feel free to contact us or our guest, Bill Keen, using the contact information provided below!

Bill Keen has a passion for helping others achieve their retirement dreams and founded Keen Wealth Advisors with this goal in mind. Bill’s vision is to build one of the country’s most trusted retirement advisory firms, acting at all times in the best interests of clients. Bill has nearly three decades of experience advising clients. His interest in finance was sparked by the financial hardship he experienced in his childhood. By age 10, Bill knew he would need to learn about saving and investing in order to help his family. He opened his first investment account in high school. Today, he treats all clients like his own family members, as he understands first-hand the importance of planning for one’s financial future. 

Disclosures

Videos/Podcasts/Blogs (media) published prior to June 30, 2025, were recorded and approved while the advisor was affiliated with Thrivent Advisor Network. These media reflect the advisor’s views and interpretations at that time. The information and disclosures contained in those media were believed to be accurate and complete as of the date of recording, but may not reflect current market conditions or Alongside, LLC, policies.

All content is provided for educational purposes only and does not constitute personalized investment advice. Read below for current disclosures and potential conflicts of interest.

This media is provided for informational and educational purposes only and does not consider the investment objectives, financial situation, or particular needs of any consumer. Nothing in this program should be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell, or hold any security or to adopt any investment strategy.

The views and opinions expressed are those of the host and any guest, current as of the date of recording, and may change without notice as market, political or economic conditions evolve. All investments involve risk, including the possible loss of principal. Past Performance is no guarantee of future results.

Legal & Tax Disclosure

Consumers should consult their own qualified attorney, CPA, or other professional advisor regarding their specific legal and tax situations.

Advisor Disclosures

Alongside, LLC, doing business as Keil Financial Partners, is an SEC-registered investment adviser. Registration does not imply a certain level of skill or expertise. Advisory services are delivered through the Alongside, LLC platform. Keil Financial Partners is independent, not owned or operated by Alongside, LLC.

Additional information about Alongside, LLC – including its services, fees and any material conflicts of interest – can be found at https://adviserinfo.sec.gov/firm/summary/333587 or by requesting Form ADV Part 2A.

The content of this media should not be reproduced or redistributed without the firm’s written consent. Any trademarks or service marks mentioned belong to their respective owners and are used for identification purposes only.

For important disclosures visit: https://keilfp.com/disclosures/

===

Check out Jeremy’s latest podcast on retirement planning by listening on “Apple Podcasts” or “Google Podcasts” or read below for How to Pick a Tax-Wise Retirement Withdrawal Strategy.

[146] – Are you overlooking taxes in your retirement plan?

Many individuals fail to recognize the substantial role taxes play in shaping their retirement budgets.

In this episode, Jeremy Keil discusses tax-wise retirement withdrawal strategies with Daniel McDonald, author of From Savvy Saver to Smart Spender. Dan shares his personal experience of facing retirement and realizing the importance of considering income taxes in retirement budgets. They discuss the impact of taxes on retirement expenses and the need to plan for them. They also touch on the transition from being a saver to becoming a spender in retirement.

Daniel discusses:

The transition into retirement can be uncharted territory, filled with a mix of excitement and uncertainty. After dedicating several decades to a successful career, the moment of retirement arrives, and it’s a unique experience that one has never encountered before.

There is a sense of needing to act like you’ve been in the end zone before, even though this particular end zone is unfamiliar. While saving for retirement may have seemed relatively straightforward in hindsight, the real challenge lies in navigating the transition itself.

It’s akin to being at the top of a rollercoaster after ascending for 30+ years. You’re unsure of what lies ahead, and even if you’ve extensively contemplated retirement, the perspective shifts when you’re actually standing at the precipice. Many individuals tend to let retirement happen to them, following the crowd’s lead or waiting for specific milestones like Social Security or required minimum distributions. However, it’s about embracing the newfound control over your financial future and making the most of this unique phase of life. 

When creating a retirement budget, it’s crucial to consider the impact of income taxes.

Unfortunately, many budget templates overlook the significance of taxes in retirement planning. However, taxes can often be one of the top three expenses in retirement, alongside housing and healthcare costs. It’s essential to account for income taxes when estimating your retirement budget, as they can have a substantial impact on your financial situation. 

While typical budgeting tools like Quickbooks.com or Mint.com may not accurately factor in taxes, it’s important to recognize that retirement taxes differ from those during your working years. With strategic planning and thoughtful withdrawal strategies from tax-advantaged accounts like IRAs and 401(k)s, you can optimize your tax outcomes in retirement.

To navigate the complexity of retirement taxes, utilizing resources like the Retirement Tax Saver can be invaluable. This simulator, mentioned in the book “From Savvy Saver to Smart Spender,” by Daniel McDonald, allows you to simulate and assess the tax implications of various retirement income sources, including Social Security.

By leveraging tools like the Retirement Tax Simulator, you can gain valuable insights and make informed decisions to optimize your tax planning for a better retirement outcome.

Transitioning from being a savvy saver to a smart spender can be challenging. After years of diligently saving and treating your accounts as a secure lockbox, it may feel difficult to start withdrawing from those funds. Unlearning the habit of saving and adjusting to the spending mindset can take time.

Although it might seem easy to indulge and enjoy your hard-earned money, there’s also a lingering voice reminding you to preserve what you’ve built. For some people, the transition isn’t straightforward. They continue to save even during retirement, sending funds back into their accounts alongside their withdrawals. This unique approach allows them to feel comfortable and maintain the practice of setting money aside for unforeseen circumstances. It may sound unusual, but it serves as a reminder of the saver’s mindset that they have nurtured for decades.

Shifting from being a savvy saver to a smart spender is a significant mental adjustment that happens suddenly. To prepare for this shift, it can be helpful to find a balance that works for you—keeping a touch of the saver mentality while embracing the role of a spender. It’s important to remember that being a savvy saver isn’t only about saving for the future; it’s also about getting the most out of your money and stretching every dollar.

By implementing a tax-wise retirement withdrawal strategy, you can continue to stretch your savings and make the most of your hard-earned funds. This approach appeals to savers who want to be strategic and thoughtful, maximizing their financial resources even as they transition into the spending phase of retirement. After all, you’ve worked hard to accumulate your wealth, so it’s crucial to be deliberate and thoughtful as you navigate the final stretch toward retirement.

Conventional wisdom suggests that individuals should delay withdrawing money from their retirement accounts until they reach the required minimum distribution (RMD) age and then withdraw only the minimum amount mandated by the IRS. The rationale behind this approach is to take advantage of tax-deferred growth and preserve the funds for as long as possible.

However, conventional wisdom may not always be the best approach. By waiting until the RMD age, individuals may find themselves in higher tax brackets due to factors such as increased income, changes in marital status, or the taxation of Social Security benefits. A different approach is to start withdrawing funds before the RMD age, particularly during years when you are in lower tax brackets. By doing so, you can potentially reduce your lifetime tax bill and take advantage of tax-efficient strategies like Roth conversions.

Implementing this change does not require purchasing new investments; it simply involves transferring funds from traditional retirement accounts to Roth IRAs within the same financial institution. It is important to note that individual circumstances may vary, and it is advisable to seek personalized financial advice to determine the most suitable retirement withdrawal strategy.

When approaching the decision of when to claim Social Security benefits, several factors come into play. It’s important to consider your tax situation and how it relates to your retirement savings. Even if you don’t have a significant amount of money in tax-deferred accounts, the withdrawals from these accounts can have a substantial impact when it comes to triggering Social Security taxes. So even with a moderate amount of savings, you should be mindful of the potential tax implications.

Using a calculator like Daniel McDonald’s Retirement Tax Saver is a great idea! Simply being in a specific tax bracket doesn’t mean that every decision you make will fall within that bracket. Understanding the marginal rate is crucial. For instance, moving from the top of the 12% tax bracket to the bottom of the 22% bracket can happen with a relatively small increase in income. It’s essential to evaluate the marginal rate when making your decision.

Social Security benefits can act as a multiplier in terms of taxes. Withdrawals from traditional retirement accounts can push a portion of your Social Security income into a taxable category. This multiplier effect means that a $1,000 withdrawal could potentially increase your taxable income by $850, resulting in a higher tax rate. For individuals considering Roth conversions, it’s essential to assess the total cost, considering both the income from Social Security and the conversion itself. For example, if you prefer to limit conversions to the top of the 12% tax bracket on Social Security, you might find yourself paying a higher rate, such as 22%. If the conversion makes sense at a higher cost, it may be worth continuing into the 22% bracket.

When deciding when to begin claiming Social Security, it’s wise to view it as old age insurance. Consider maximizing your benefits by waiting until age 70, especially if you prioritize a more secure financial future. In the meantime, bridge the gap between retirement and age 70 by using funds from your traditional retirement accounts. By doing this, you can take advantage of the three-year period between ages 67 and 70, during which your Social Security benefits will increase by 24% annually. This approach ensures a higher monthly benefit for the rest of your potentially long and fulfilling life.

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To learn more about tax-wise retirement withdrawal strategies, check out the resources below!

If you have any questions, feel free to contact us or our guest, Daniel McDonald, using the contact information provided below!

Daniel McDonald is a semi-retired intellectual property lawyer, author of From Savvy Saver to Smart Spender, and creator of the retirementtaxsaver.com website. Dan has a B.S. in Electrical Engineering and a law degree, both from the University of Minnesota. Dan has been an attorney for over 36 years, admitted in Minnesota, Georgia, and various federal district courts, appellate courts, and the U.S. Supreme Court. He is also a registered patent agent authorized to practice before the U.S. Patent and Trademark Office.

Recognized for many years as a SuperLawyer® and U.S. News and World Report Best Lawyer®, Dan has successfully presented and defended against dozens of multi-million-dollar patent, trademark and copyright claims. He has volunteered in many roles at the University of Minnesota, including Chair of the Alumni Association, receiving the University’s Alumni Service Award. Dan currently resides in Naples, Florida and enjoys bicycling, kickboxing, and travelling with his wife, Kim.

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