Retire With Ryan

Do you usually get a tax refund? What do you typically do with your tax refund? Do you have it earmarked for a specific purpose? As we're inching closer to the tax filing deadline, I thought it would be interesting to share some ways you can wisely invest your tax refund. I'll cover 9 ideas you can consider to make good use of your money.

You will want to hear this episode if you are interested in...

• [1:42] Why are you getting a tax refund?
• [2:36] Idea #1: Save it for next year's taxes
• [3:03] Idea #2: Increase your savings
• [4:05] Idea #3: Pay down high-interest debt
• [4:49] Idea #4: Contribute to a Roth IRA
• [5:12] Idea #5: Home improvement projects
• [6:02] Idea #6: Increase retirement contributions
• [7:08] Idea #7: Plan a vacation
• [7:51] Idea #8: Invest in yourself
• [8:32] Idea #9: Buy US Savings Bonds

Why are you getting a tax refund?

If you're getting a tax refund, you should be asking why. You're giving the government a free loan for the entire year. You aren't paid interest when you receive a refund. Why not investigate if you can increase your withholdings, so you can keep more of your money? If you are going to get a refund, here are some ways you could invest it.

9 ideas for investing your tax refund

1. Save it for next year's taxes: If you think your taxes will increase because your income fluctuates, it might be a good idea to set the money aside in a short-term CD or money market.
2. Increase your savings: You need 3–6 months of living expenses in an emergency fund (which could be kept in a short-term CD or money market) in case you lose your job or another unexpected situation arises.
3. Pay down high-interest debt: If you're carrying credit card or student loan debt in excess of 10%, pay it off as soon as possible. Why 10%? Because it's hard to earn more than 10% over time in the stock market as an average annual return.
4. Contribute to a Roth IRA: If you don't have a Roth IRA, you can set one up (provided you qualify) and start contributing to it.
5. Home improvement projects: Improving your kitchen or bathroom(s) can increase the value of your home down the road. Even an outdoor patio or deck space may be a good investment to get a return on your money.
6. Increase retirement account contributions: If you still have room to contribute to your 401k, you can increase what you contribute through payroll contributions. Or, you can shift your tax refund into the account over time. If you contribute more throughout the year, less will be sitting with the IRS for you to get back in a tax refund.
7. Plan a vacation: We don't know what the future holds. If you've wanted to plan a specific trip for a long time, why not take some of this money and invest it in a trip?
8. Invest in yourself: Can you take a course? Get a designation in your field? These things can pay large dividends down the road, especially if they help increase your income or get you closer to a job promotion.
9. Buy US Savings Bonds: The interest they pay is based on a fixed rate when you buy the bond and a variable rate tied to the consumer price index. You'd always get a minimum for the life of the bond and a variable rate every six months.

Listen to the whole episode for a more in-depth look at each idea!

Resources Mentioned

• Retirement Readiness Review
• Subscribe to the Retire with Ryan YouTube Channel
• I bonds interest rates

Connect With Morrissey Wealth Management

www.MorrisseyWealthManagement.com/contact

Subscribe to Retire With Ryan

Do you own stock in the company that you work for in your 401K? Net unrealized appreciation could potentially save you a significant amount of money on your taxes when you start making withdrawals. I'll share how to take advantage of the process as well as mistakes to avoid making in this episode of Retire with Ryan.

You will want to hear this episode if you are interested in...

• [1:00] Sign up for my Retirement Readiness Review!
• [1:26] What is net unrealized appreciation?
• [3:31] How net unrealized appreciation works
• [5:05] How to process the distribution
• [7:41] Where people run into problems
• [10:09] Net unrealized appreciation when you aren't retired
• [12:23] Reminder: Sell the stock in a lower tax bracket

Resources Mentioned

• Retirement Readiness Review
• Subscribe to the Retire with Ryan YouTube Channel

Connect With Morrissey Wealth Management

www.MorrisseyWealthManagement.com/contact

Subscribe to Retire With Ryan

The Federal Reserve Met on 3/20/24 to discuss monetary policy and whether or not to raise or lower interest rates. They announced that they won't make any changes. Most experts believe that they'll lower interest rates in June.

So should you start selling your money market funds and short-term bond funds? When should you do it? Should you move the money into something that could benefit from decreasing interest rates? In this episode, I'll discuss why we invest in money market funds, if you should move your money out, and where you should consider shifting it.

You will want to hear this episode if you are interested in...

• [1:13] Sign up for the Retirement Readiness Review!
• [1:41] Why should you invest in money market funds?
• [4:33] Why move money out of your money market fund?
• [6:30] What might make money market rates fall?
• [8:42] What do you buy to replace money market funds?

Why should you invest in money market funds?

Money market funds should be considered part of your overall asset allocation. We look at money in terms of buckets. You need some money in risky buckets to grow your money to pace against inflation (stocks, commodities, real estate investment, high-yield corporate bonds, etc.). The other money is your "safe" money (cash, money market funds, government bonds, short-term corporate bonds, etc.).

I've been recommending that you move money from your bank or other low-yielding accounts and move them into money market funds for the last year and a half. Why? Because you can now earn about 5% on your money market funds (depending on where you keep it). We typically use the Schwab Value Advantage Money Fund® (SWVXX). And as of 3/20/2024, its current yield is 5.18% with an annual expense ratio of 0.340%.

Money market funds are relatively low-risk and liquid. They trade for a dollar value that rarely changes. What changes? The interest rate that the funds pay (which can reset as often as every seven days).

Why move money out of your money market fund?

You invest in a money market fund to help you earn more interest on your safe money. You want to choose what gives you the best rate possible. The rate you get is dependent on duration—the length of time that you're investing your money.

Currently, looking at the treasury yield curve, you'll earn more interest by having your money in shorter-term treasuries than you would versus long-term treasuries. Eventually, the curve will reverse and long-term investments will yield more interest. That's when you'd consider reducing the amount of money out of money market funds.

Until the Fed raised interest rates in 2022, money markets were paying almost nothing. As the Fed raised interest rates, the interest paid increased. What might make money market rates fall?

The primary driver is inflation. The Fed monitors inflation so they can make decisions about what to do with interest rates. Inflation has been high. The Fed doesn't want to cut rates too quickly because it could trigger more inflation.

What could you buy to replace money market funds? How do you reduce your exposure? Listen to hear some ideas!

Resources Mentioned

• Retirement Readiness Review
• Subscribe to the Retire with Ryan YouTube Channel
• The 5-Step Portfolio Process, Ep #17
• Daily Treasury Yield Curve Rates
• Schwab Value Advantage Money Fund®
• SPDR® Portfolio Aggregate Bond ETF
• SPDR® Portfolio Long Term Treasury ETF

Connect With Morrissey Wealth Management

www.MorrisseyWealthManagement.com/contact

Subscribe to Retire With Ryan

As we get closer to the tax filing deadline (April 15th), I wanted to talk about contributing to a Roth IRA or traditional IRA. In this episode, I'll cover contribution and deduction limits, spousal IRAs, and non-deductible IRA contributions (and why you'd want to consider them).

You will want to hear this episode if you are interested in...

• [1:16] Sign up for Retirement Readiness Review!
• [1:49] Traditional IRA contributions/deductions
• [6:45] Roth IRA contribution limits
• [9:02] The spousal IRA
• [10:22] Non-deductible IRA contributions

Traditional and Roth IRA basics

Everyone with earned income can contribute to an IRA or Roth IRA (up until the filing deadline). Earned income includes wages, salaries, tips, and net self-employed income. Your spouse can contribute on your behalf if you don't have earned income.

The max you can contribute is $6,500 (if under 50) or $7,500 (if over 50). You can split the money between a traditional or Roth IRA. If you're looking for an additional tax deduction, you can contribute to a traditional IRA and get a tax deduction equal to the amount you contribute.

Do you have a retirement plan through your work (401K, 403B, 457 plan, etc.)? If you do, you have to look at your modified adjusted gross income (MAGI) to determine if you qualify to contribute. If you don't have a plan through work, you can contribute the full amount.

With a Roth IRA, you don't get a tax deduction on your contributions. But when you withdraw the money, the withdrawals are tax-free. To contribute to a Roth IRA, your MAGI must also be under certain limits.

I've linked documents in the resources that detail what each of those limits looks like for each filing status.

Non-deductible IRA contribution

What is a non-deductible IRA contribution? It's where you make a contribution to a traditional IRA up to the limit of $6,500/$7,500 but you don't get a deduction on the contribution. Why would you want to do that?

1. If you want to pursue a backdoor Roth IRA. If you don't have an IRA, SEP IRA, or Simple IRA money in your name at the end of 2023, you'd open a traditional and Roth IRA at the same company. You'd contribute to the traditional IRA for 2023. Then you move the money over to the Roth IRA (a tax-free conversion).
2. If you can't do a backdoor Roth IRA, you can benefit from the tax deferral of a traditional IRA. Any taxes on the increase in value are deferred. You'll pay tax on the gains when you make a withdrawal (but never on the principal). If you invested the money in a brokerage account, you'd have to pay taxes on an annual basis on any dividends, interest, or capital gains.
3. If you have a 401K through your company, you can roll the after-tax monetary gains to a traditional 401K (separating the contributions from your gains) and convert the contributions to a Roth IRA (similar to a backdoor Roth IRA).

What makes the most sense for you in 2023? Listen to learn more about each of the options.

Resources Mentioned

• Retirement Readiness Review
• Subscribe to the Retire with Ryan YouTube Channel
• Separating Post-Tax Money from a Traditional IRA, #181
• Amount of Roth IRA Contributions That You Can Make For 2023

Connect With Morrissey Wealth Management

www.MorrisseyWealthManagement.com/contact

Subscribe to Retire With Ryan

What is Indexed Universal Life Insurance? Is it something you should consider investing in? Are the rumors you've heard about it true? In this episode, Andy Panko (of Tenon Financial) and I dispel 7 myths that are circulating about UILs and we cover what you need to know to make an informed decision about the insurance product.

You will want to hear this episode if you are interested in...

• What is Indexed Universal Life Insurance? [1:46]
• Myth #1: It's a secret the wealthy don't want you to know about [4:30]
• Myth #2: The IUL cost is lower than a well-managed mutual fund [7:34]
• Myth #3: IULs can give you a tax-free retirement [10:18]
• Myth #4: An IUL means you can be your own bank [12:20]
• Myth #5: Life insurance is a tier-one asset for the banks [16:04]
• Myth #6: IULs are better than 401k plans [19:31]
• Myth #7: IULs are a "can't lose" monetary asset [23:59]
• Should you consider investing in an IUL? [28:24]

What is Indexed Universal Life Insurance?

Indexed Universal Life Insurance is often pitched and marketed as a retirement income tool under a host of other names. It's a complicated product, often sold via misleading information. At its core, It's a life insurance policy with a death benefit that can build cash value within the policy.

You can take loans against it and money out of it. Some of the benefits can be used toward long-term care expenses. It can be a useful and multi-purpose product. However, misleading claims are often made about these policies during the sales process.

Myth: The IUL cost is lower than a well-managed mutual fund

An IUL is a multi-decade-long product. It's a lifetime commitment. The up-front fees are large. It can be more than 10% the first year and 6–8% beyond that. By the time you get to the 10th year, the fees can be lower (under 5.5%). I bought an IUL and the up-front costs were 17% for the first year.

When you blend it out over the life of the product, it will not be as low as a managed index fund. It's not reasonable to expect. And you're not actually invested in index funds—you get exposure through the insurance company buying options on the underlying index.

Myth: An IUL means you can be your own bank

You aren't borrowing money from a bank. And the money in the policy continues to earn interest. You can borrow against the IUL and use the money however you'd like. But it's no different than if you took a home equity line of credit against your house. You still own the house and it's full price appreciation but you have a loan collateralized by your house.

People will say that Walt Disney founded Disney because he borrowed against his whole life insurance policy. People insinuate that Disneyland wouldn't exist without an IUL. All said and done, he took a $50,000 loan against his life insurance policy but it was only 0.66% of the total capital required to launch Disneyland. Life insurance wasn't the missing link.

Myth: IULs are a "can't lose" monetary asset

The cash value of your account earns interest and it will never be lower than zero. However, you can't own that cash value in isolation. There are annual fees associated with the policy. Even in the years where you get 0%, you have fees and costs that will cause your cash value to decline. That is still losing money.

Most of them also have a commitment period. If you want to walk away with your money, you'll likely get charged a hefty fee to do so. If you hold the product for the rest of your life, you will in time have more cash value than you put in. But in the early years, you will have less money than you put in.

Insurance products are designed to be long-term. The people who sell these products are paid on commission. So surrender penalties reimburse the insurance company if the policyholder bails out early.

Should you consider investing in an IUL? Listen to hear what Andy factors into the decision-making process.

Resources Mentioned

• Retirement Readiness Review
• Subscribe to the Retire with Ryan YouTube Channel
• Andy's website: Retirement Planning Education
• Connect with Andy Panko, CFP®, RICP®, EA on LinkedIn
• Tenon Financial

Connect With Morrissey Wealth Management

www.MorrisseyWealthManagement.com/contact

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On December 23rd, 2022, congress passed the SECURE 2.0 Act. Among the many changes, one of them had to do with 529 plans. You can now make tax-free and penalty-free rollovers from a 529 plan to a Roth IRA.

This became effective 1/1/2024. Before this, if you wanted to take a non-qualified withdrawal from a 529 plan (using the money for something outside of school expenses) the gain was subject to income tax and a 10% penalty. It's similar to taking a withdrawal from an IRA.

If you have unused money in a 529 plan, it can be rolled over to a Roth IRA for the beneficiary of that 529 plan—tax and penalty-free. The added benefit is tax-free growth and tax-free distributions when they take money out down the road.

What other details do you need to know? Who qualifies for these rollovers? Learn more in this episode of Retire With Ryan.

You will want to hear this episode if you are interested in...

• Sign up for the Retirement Readiness Review [0:56]
• Tax-free and penalty-free rollovers [1:41]
• What are the rollover rules? [3:16]
• Questions the IRS still needs to answer [6:13]
• Does every 529 plan provider allow rollovers? [8:01]
• How do you make a rollover? [8:53]
• Can you make a rollover? [10:38]

What are the rollover rules?

There is a $35,000 lifetime rollover limit per beneficiary. However, you can't roll over the entire amount at once. You're still subject to the annual Roth IRA contribution limits for 2024 and beyond.

Someone under 50 can roll over $7,000 to a Roth IRA. If they're over 50, they can roll over $8,000. If your child has already contributed $3,000 to their Roth IRA, you can only roll over $4,000. Here are some other rules to be mindful of:

• The 529 account needs to be 15 years old or older.
• The Roth IRA needs to be in the same name as the beneficiary in the 529 plan.
• The rollover must be a direct rollover (the 529 company makes a check payable to the Roth IRA company—you cannot take receipt of the money)
• Contributions and earnings on the contributions made on the last five years cannot be converted
• A 529 beneficiary needs to have earned income equal to the amount of money being rolled over (if your beneficiary is in high school and doesn't have a job, you can't do a rollover)
• There's no adjusted gross income earnings limit

Questions the IRS still needs to answer

What if the 529 account has been open for 15 years but you changed the beneficiary? Does the current beneficiary qualify? What if you change 529 companies during that time? When you hit the maximum of $35,000, can you change the beneficiary to someone else?

How does your state treat the rollover? Will it be taxed? Who is tracking the gains from contributions? These are some of the many questions that the IRS hasn't clarified yet.

How do you learn if your 529 plan provider allows rollovers? There are hundreds of 529 providers and no blanket answer. Reach out to your specific provider. The plan I have with Fidelity can process the rollovers. How a rollover is done will vary depending on the provider. For the CHET plan, you complete a form and submit it to make the transfer.

Can you make a rollover? Should you make a rollover? Listen to hear my thoughts!

Resources Mentioned

• Retirement Readiness Review
• Subscribe to the Retire with Ryan YouTube Channel
• 529 plan distribution form (Connecticut)
• The Connecticut Higher Education Trust 529 Plan

Connect With Morrissey Wealth Management

www.MorrisseyWealthManagement.com/contact

Subscribe to Retire With Ryan

What are some overlooked benefits of investing for retirement in a brokerage account? Why would you want to invest in a brokerage account in addition to a 401k or other retirement account? Shaun Jones—the President of Jones Fiduciary Wealth Management and author of "Unbrainwashed Investing"—shares 7 reasons to invest in a taxable brokerage account in this episode of Retire with Ryan.

You will want to hear this episode if you are interested in...

• [1:53] A brokerage account gives you increased flexibility
• [7:10] You have some control over taxes with a brokerage account
• [9:56] One strategy for a brokerage account
• [14:22] A brokerage account doesn't have required minimum distributions
• [18:17] Understanding step-up in basis
• [20:26] A brokerage account gives you liquidity
• [22:20] Why a cash balance plan isn't always beneficial

Some of the benefits of a taxable brokerage account

You can only put so much into retirement accounts annually, by law. Once you've reached your annual limits, why not consider a brokerage account? Here are just a few reasons:

• Having money in a non-qualified brokerage account gives you flexibility. You can withdraw the money at any time (and don't have to wait until 59 ½).
• You can earmark each brokerage account for different purposes
• You aren't required to take minimum distributions
• These accounts are liquid and you can withdraw money at any time. It's a nice tool to manage cashflow.

One of the biggest benefits is that it gives you more control over taxation.

The taxation of a brokerage account

Gains, dividends, etc. that you receive in a brokerage account are taxable (versus a retirement account). Every dollar that comes out of a retirement account is taxable as ordinary income, which can push you into a higher tax bracket than you may want to be in.

Most people don't think about how much of their retirement balance is actually there's to keep. The IRS always gets to claim a portion of it. You have no idea how much you'll end up owning because you don't know what the tax laws will be then.

However, a brokerage account has the potential to reduce your effective tax rate in retirement. You have a lot of control over your taxable income between when you retire and when you start taking distributions. That's where 90% of tax planning happens. You can carefully consider when to take distributions to lower your overall effective tax rate.

One strategy for a brokerage account

A tendency toward index funds and passive investing will keep taxes and turnover low. Compared to other options, it's a tax-efficient way to hold investments. If you hold an S&P 500 index fund and you're continually dollar-cost averaging into it, you're paying tax on the dividends (assuming it doesn't create a high capital gain).

If you're not selling, you're not creating a capital gain. We usually advocate that our clients wait until they're in retirement to sell that fund, especially if they don't have a lot of other income and can stay in lower tax brackets.

We like to utilize tools that can project your average effective tax rate each year. It gives you a projection of what you'll do if you don't make provisions for tax management. If your effective tax rate will be 22% every year after taking RMDs, maybe you should trigger some at 15% or put money into a brokerage plan where you can control taxes.

Listen to hear the full conversation about what you need to know about taxable brokerage accounts and how they benefit you.

Resources Mentioned

• Retirement Readiness Review
• Subscribe to the Retire with Ryan YouTube Channel
• Holistaplan
• eWealthManager
• Unbrainwashed Success Podcast
• Connect with Shaun on LinkedIn
• Jones Fiduciary Wealth Management

Connect With Morrissey Wealth Management

www.MorrisseyWealthManagement.com/contact

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Are you aware of how your biases—both conscious and unconscious—impact your investment decisions? Brie Williams of State Street Global Advisors joins me in this conversation to talk not only about the impact of biases on decision-making but how to cultivate an awareness of your biases to change your behavior, ultimately leading to better decisions.

You will want to hear this episode if you are interested in...

• [1:33] Brie's role at State Street Global Advisors
• [3:33] The role of emotion in decision-making
• [7:00] How your mindset can influence behavior
• [11:15] Common investor biases that influence decisions
• [19:05] Ways you can manage your biases
• [23:36] How to overcome anchoring bias
• [30:38] Embracing resilience as an investor

Common investor biases that influence decisions

What are the most common biases that impact decision-making? Most can be grouped into cognitive and emotional biases. Hindsight bias, confirmation bias, and anchoring bias are typically the most impactful cognitive biases in the realm of finance.

• Hindsight bias occurs when an investor tends to believe that after an event occurred that they predicted it. So when the market crashes they claim they "knew" it was going to happen.
• Confirmation bias is the tendency to seek out information that confirms an existing belief, often accompanied by ignoring contradictory information.
• Anchoring occurs when you rely too heavily on an initial piece of information and you anchor future decisions to that piece of information (i.e. you anchored to the price you bought a stock at).

Emotional biases stem from impulses or intuitions, heavily influenced by feelings. Examples are loss aversion and overconfidence.

• Loss aversion happens when an individual feels the pain of a loss far more intensely than the pleasure of gains. It might manifest by holding on to a stock too long hoping that it will rebound (but selling would be the rational choice).
• Overconfidence is a bias where an investor has an inflated belief in their ability to predict a market movement or winning investments. You're likely to lean on your research while ignoring the things you can't control, like changing market conditions.

We need to recognize that we all have conscious and unconscious biases. We need to gain self-awareness to reflect on how we approached past decisions. Self-reflection allows us to uncover blind spots and recognize patterns in decision-making. Brie points out this is always easier to do with an objective advisor.

How to overcome anchoring bias

Anchoring bias comes into play when you're failing to adjust to new information. Do you have a sunnier outlook or focus on the more negative side of the equation? You have to recognize that your life view will impact your definition of success. You need to focus on objectivity when you come across new information so you don't overweight the past.

Mindset is just one factor of many that will shape your decisions and perceptions as an investor. How do you respond? Anchoring exists as a bias but it can be disrupted with practice. Mindfulness and how you approach decision-making is worth working on for a healthier construct for decision-making.

How do you avoid analysis paralysis? How can we close our behavior gap to improve decision-making to achieve better outcomes? Learn more in this thought-provoking episode with Brie.

Resources Mentioned

• Listen To My Retirement Podcast
• Watch Me On YouTube
• Click Here To Schedule An Appointment
• Share Documents Securely With MWM
• Retirement Readiness Review
• Subscribe to the Retire with Ryan YouTube Channel
• Connect with Brie Williams on LinkedIn
• Episode #143: How Women can Build a Better Relationship with Money

Connect With Morrissey Wealth Management

www.MorrisseyWealthManagement.com/contact

Subscribe to Retire With Ryan

Last year's Super Bowl set the record as the most-watched TV event in Nielsen rating history at over 150 million viewers. It's hypothesized that this year's Super Bowl is going to set a record for something completely different: The most amount of money bet on a Super Bowl. Why? Because sports betting is now legal in 38 states.

So if you're one of the 68 million Americans estimated to bet over $23.1 billion on the Super Bowl this year, how will winning impact your income taxes? Learn what you need to be mindful of—and some fun Super Bowl XLVIII facts—in this episode of Retire with Ryan.

Disclaimer: Make sure whatever money you bet will not impact you financially if you lose. If you have a gambling addiction and need help, call 1-800-662-4357.

You will want to hear this episode if you are interested in...

• [1:29] Sign up for my retirement planning course or workshops
• [2:22] My prediction for Super Bowl XLVIII
• [3:45] Fun facts about Super Bowl XLVIII
• [5:44] How much does the Super Bowl make?
• [ ] The ways people bet on the Super Bowl
• [13:02] How much of your winnings are taxable?

How much does the Super Bowl make?

The Super Bowl makes between $300 million and $1.3 billion a year. Much of the money generated is pocketed by the NFL. They receive 100% of ticket sales, millions of dollars from merchandise sales, and a lot of money from networks paying for broadcast rights for the game.

This year, Super Bowl ads will cost $7 million for a 30-second spot. This is the second year at the price. Super Bowl ads first cracked the million-dollar mark in 1995. For many companies, this ad spot is worth the cost because it gives them a broad reach to consumers.

How much of your winnings are taxable?

If you know me, you know that I don't gamble (I'd rather make a long-term investment in the stock market). I've only made one sports bet in my lifetime. It was in 2021 when FanDuel offered 55-to-1 odds of picking the Super Bowl winner. It was only for new users who'd never opened an account. They set the bet limit at $5, so you could win a maximum of $275.

The Buccaneers were favored to win that year. My wife and I each opened an account and each of us bet on a different team. When the Buccaneers won, we collected our earnings, closed our accounts, and have never bet since.

If you're one of the $36 million expected to bet through legal means, how much of your winnings are taxable? If you bet through FanDuel or DraftKings and win more than $600 of net profit, you are legally obligated to report that. They'll send you a 1099-MISC that you must report to the IRS.

If you receive the winnings through PayPal, you'll likely receive a 1099-K form. If you don't receive either of these forms, the IRS still expects you to report all of your income, regardless of the amount.

So what are my predictions? As of 2/7/24, my Super Bowl XLVIII prediction is that the Chiefs will win, 21-20. The 49ers are actually favored by two points. Check back to see how close my prediction is to the actual score!

Resources Mentioned

• Retirement Readiness Review
• Subscribe to the Retire with Ryan YouTube Channel
• Sign up for my retirement planning course or workshop
• Understanding your Form 1099-K
• About Form 1099-MISC

Connect With Morrissey Wealth Management

www.MorrisseyWealthManagement.com/contact

Subscribe to Retire With Ryan

Before you think about when you're going to retire there's another question that should be addressed: Are you going to retire? It's assumed that when you turn 62 or 65, you're going to retire. And many people do count the days until they retire.

But many others love the careers they're in and can't imagine stopping. Their concern is that they'll get pushed out the door. The bottom line is that age tells us nothing. No one is the same. So we can't treat them the same.

That's one of the concepts that Mitch Anthony explores in his book, "The New Retirementality," and we'll dive into it in this episode.

You will want to hear this episode if you are interested in...

• [4:32] The history of the concept of retirement
• [8:43] One topic we've underestimated
• [11:57] Retirement is a life experiment
• [15:30] The Retirementality Profile
• [16:22] Is traditional retirement right for you?
• [20:04] Don't be afraid to start the conversation

Retirement is a life experiment

Imagine waking up every day with nothing to do. You've played golf every day for six weeks and you're bored. Your social life was wrapped in your job. 60% of people who retire go back to work part-time within a year of retiring. If your whole purpose is wrapped up in your job and you leave it, what drives you to keep pushing forward?

Mitch points out that most people spend more time planning a two-week vacation than they do their retirement. They assume it's going to take care of itself. That's why most people don't have it all figured out on their first attempt.

What changes in the 24 hours from year 64 day 365 to year 65 day 1? Nothing. You're the same person. But the world at large assumes that everything's changed when you turn 65. The reality is that you need to plan for retirement.

The Retirementality Profile

Mitch's book includes some exercises that help you determine your vision for "retirement." One of the first questions is "What have you observed watching other people retire?" What good examples have you seen? Which examples have become object lessons?

Is traditional retirement right for you? It's a conversation you need to have with a retirement coach. It's not a one-and-done conversation. Where do you start?

1. 5 years out: What are your thoughts about retirement right now? How do you want to spend your time? What does your ideal week look like? This is where you have the observation conversation.
2. Six months away: Are you prepared? What are you going to retire to versus from?
3. The retirement honeymoon: You've been retired for six months. How is it going? What's not matching your expectations?
4. The reality check: You're one year into retirement. What have you learned? Where is reality meeting your financial structure?

Most people only have the conversation of "Do you have enough money to retire?" You may have all of the money you need but lack purpose. Money will fund a purpose—but it won't find one.

Resources Mentioned

• Retirement Readiness Review
• Subscribe to the Retire with Ryan YouTube Channel
• Mitch's book, "The New Retirementality"
• My Retirementality Profile
• ROL Advisor

Connect With Morrissey Wealth Management

www.MorrisseyWealthManagement.com/contact

Subscribe to Retire With Ryan