Retire With Ryan

After a long hiatus from traveling, it’s great to hear that many of my clients are getting back out into the world. But too many are doing so without travel insurance! On this episode, I’m taking a deep dive into travel insurance, what it is, how to get it, and why you shouldn’t leave the country without it.

• What is travel insurance? [2:23]
• Why you need to insure your trip [4:58]
• Exploring different travel insurance options [6:57]

For some, travel insurance may feel like an unnecessary add-on for an already expensive trip. But that is precisely why you need it! One of the main reasons to purchase travel insurance is that it covers you if you get sick overseas. Most health insurance companies do not provide coverage if you need care outside of the U.S. And if you’re already retired and on Medicare, you will not have coverage in another country. Health care may be less expensive outside of the United States, but it isn’t cheap. If the worst happens, you could be out tens of thousands of dollars. 

Another benefit to having travel insurance is that it covers travel delays. If your flight gets canceled or pushed, travel insurance covers things like food and the cost of a hotel. It can also provide the funds to buy new clothes and toiletries if your luggage gets lost. Some of these costs may require you to pay upfront, but if you save your receipts, they are easily reimbursed through the travel insurance company. Listen to this episode for more on travel insurance!

• Seven Corners
• Allianz
• Squaremouth
• InsureMyTrip

www.MorrisseyWealthManagement.com/contact

If you know anything about me, you know I’m a golf nut. I started the sport at age 14 and have enjoyed the challenge and activity it has brought to my life for the last 30 years. On this episode, I’m going to share five reasons why golf is a great retirement activity and how you can get started at any age.

• Why golf is a great low-impact workout [2:48]
• Building your social network with golf [4:56]
• Using golf to stay mentally strong [7:12]
• Using golf to connect with the great outdoors [9:28]
• Starting your golf journey [11:03]

One of the best reasons to take up golf in retirement is the physical activity the sport provides. Golf is considered a low-impact sport, so as long as you hit the little white ball instead of the big planetary one you’re standing on, you're going to be just fine. While the fun of driving around in golf carts is an added bonus, choosing to walk the course with a bag cart is how you maximize the cardiovascular benefits. When all is said and done, you can walk 2-5 miles on average after a single game.

Another great golf benefit that is especially important to retirees is the social aspects of the game. Workplace social interaction is a hard loss for many just entering retirement. Even if you’re able to stay in touch with old coworkers, you may desire a more consistent social network. This is where joining a golf league or club can be a literal game changer. Golf is also a great way to spend quality time with those you love because the average game lasts 4.5 hours.

Aside from physical and social benefits, golf has tremendous mental benefits to keep your mind sharp after it’s left the office. While some sports have only a few core skills, golf requires careful strategy and consistent mastery of various shots and techniques. There is ALWAYS something a golfer can work on. Whether it’s their stance, swing, putting, chipping, or even how they play in different weather conditions. Golf provides no shortage of mental puzzles to keep the mind stimulated. 

It’s no secret that fresh air and sunshine are critical to maintaining health at any age. This is especially true for retirees looking to live a long and healthy third act. Another great benefit to the game of golf is that it gets players outside for hours. Not just outside, but outside at some of the most beautiful locations on Earth. Most golf courses are between 120-140 acres with limited amounts of people, setting up a great environment to connect with the natural beauty around us. Listen to this episode for more on why golf is a great retirement activity!

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Business owners! Are you taking advantage of every tax break available to you? If you’re not already working with a tax strategist, the answer is probably no. Join me as I sit down with seasoned tax strategist Shauna Wekherlien, a.k.a The Tax Goddess, as she delivers five tax tips that could mean thousands of dollars in deductions on your next return.

• What is a tax strategist? [1:37]
• Defining a high-earning business and one of Shauna’s favorite tax strategies [4:57]
• Understanding the Augusta Rule [14:54]
• Getting your kids on the payroll [20:35]
• Why your dog could be human’s best tax write-off [23:51]
• The tax deduction mistake too many CPAs make [27:00]

Without CPAs American business owners wouldn’t be able to file their taxes. Well, they could, but it probably wouldn’t go well. That being said, a CPA isn’t the only financial professional you need to get the most out of tax season. Shauna recommends that businesses use all four legs of her financial stool for stability: a bookkeeper, a tax strategist, a CPA, and a financial advisor. After your bookkeeper handles the day-to-day accounting, a tax strategist helps you manage your entire financial world. They keep track of where you’re spending money, how much you’re spending, and how you’re investing that money from a tax perspective. 

A tax strategist like Shauna will help you tweak all of those things so that by December 31, you are reporting the lowest profit possible and keeping the largest amount of money in your pocket. Then it’s time to hand everything over to your CPA, who files the return, protects you from audit, and ensures you're not breaking any rules. This is when you and your financial advisor have fun choosing how to invest that money, build your portfolio, and get ready for retirement. 

One of the biggest things Shauna wants prospective clients to understand is the idea of risk. Similar to the risk assessed in a retirement portfolio, tax strategies also have risk. Every business needs to know where they fall on the aggression scale, with 1 being zero IRS contact (except for a random audit) and 10 being everyone is going to jail. Obviously, we don’t want to be anywhere near a 10, but Shauna says clients can go as high as an 8 while still being aboveboard. You just have to be willing to speak with the IRS and provide proof of your deductions. 

Shauna shared so many great tax tips in this episode, but one of them is known as the Augusta Rule. Also known as the Master’s Exception, this tax rule allows you to rent your home for business use and deduct the cost from your taxes. Because your business is technically a separate entity from you, the rule allows you to rent your home out to your business for up to 14 days per year without paying income tax on the revenue. For more on this and other tax strategies that could save your business thousands in deductions, listen to the full episode!

• Shauna’s website 
• Take my Retirement Readiness Review online course!

www.MorrisseyWealthManagement.com/contact

Have you been excited to apply for Social Security only to get confused or frustrated by the process? You’re not alone! On this episode, I’m answering a listener's question and sharing three helpful tips to use when applying for Social Security benefits. 

• The best way to apply for Social Security benefits [1:51]
• When do Social Security benefits begin and how are they paid out? [3:10]
• When can I file for Social Security benefits? [8:09]

Whether you just became eligible for Social Security benefits at 62 or you’ve waited until age 70 for your maximum benefits, applying for Social Security can be a confusing process if you’re unfamiliar with the system. The first thing you should know is that applying for Social Security benefits is easiest when doing so online. This is the method recommended by the SSA, and their website can be easily accessed in the links below. 

The next thing the soon-to-be enrolled should know is when to apply. You can file for Social Security benefits as early as 62 all the way up to 70 years old. As always, the best strategy is to wait until you turn 70 because you get an 8% benefit increase every year you wait between full retirement age and your 70th birthday. Just don’t forget to apply after you turn 70 because there is no added benefit to waiting longer than that.

A question that stumps a lot of people when applying for Social Security benefits is what month they would like to start receiving their benefits. You can file for Social Security as early as four months prior to when you would like your benefits to start. For example, if your birthday is July 15th, you would select July as the month benefits begin. However, you won't actually receive anything until August because the government wants to ensure you are the correct age the entire month you receive your first check.

Speaking of checks, the SSA does not issue checks to new Social Security enrollees. The primary method for receiving Social Security benefits is through direct deposit into a bank account or credit union. The other option is called a Direct Express debit card. You can use it like a normal debit card and even make ATM withdrawals for a nominal fee. Listen to this episode for more on applying for Social Security!

• Social Security Administration 
• How To Apply For Social Security Benefits, #38
• Take my Retirement Readiness Review online course!

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Health Savings Accounts are one of the biggest retirement planning opportunities that get overlooked. And many who have an HSA aren’t getting the most out of it. On this episode, I’m going to cover three mistakes you're probably making with HSAs that are costing you a lot of money.

• Are you investing the money in your HSA? [2:14]
• Are you contributing the maximum to your HSA? [5:19]
• Do you treat your HSA like a credit card? [7:53]

If you’re on a high-deductible health insurance plan, you most likely have or are eligible for a Health Savings Account (HSA). They are one of my favorite ways to save for retirement because they are the only triple tax-free savings account in the United States. Meaning, you receive a deduction when you put the money in, the money grows tax-deferred, and then when you take the money out for health-related costs, it's also tax-free. If you’ve had an HSA for a while, the contributions from you and your employer are starting to build up. Unfortunately, I’m finding that a lot of people aren’t investing that money for tax-deferred growth.

If you’re not investing your HSA money, then chances are it’s not earning any interest either. At the very least, you should investigate if your HSA has a money market option to invest the funds into as a low-risk option to start earning interest. Right now, Fidelity, Charles Schwab, and Vanguard have money market accounts paying close to or right at 5%. Do a little digging, and don’t leave money on the table! 

Another mistake I see people make with HSAs is not contributing the maximum amount. In 2023, the maximum contribution is $3,850 for a single person and $7,750 for a family. Those limits are combined between what you and your employer contribute to the HSA account annually. If you find out that you haven’t contributed the maximum amount, you have until the tax filing deadline in April to make additional contributions and hit the limit.

Finally, one of the biggest temptations with HSA accounts is to use it like a credit card. Swiping it every time you go to the doctor is not how to get the most out of a Health Savings Account. The best method is to build up your HSA savings and invest the money for tax-deferred growth. While you wait, keep track of all qualifying medical expenses and pay for them using a regular savings account or credit card paid off before interest. Then down the road, when your contributions have likely doubled, reimburse yourself tax-free with the gains. 

• Take my Retirement Readiness Review online course!

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My home state of Connecticut was ranked the second worst pension fund performer of the past five years. Maybe you’ve had some tough hits to your retirement portfolio over the years too, and are in desperate need of a financial makeover. On this episode, I want to help you avoid Connecticut’s mistakes and ensure your portfolio is set up for retirement success.

• What is your asset allocation? [2:54]
• The power of diversification [6:53]
• Comparing active portfolio management to index funds [11:27]

One of the biggest mistakes the State of Connecticut made to earn its pension fund performance the second worst spot was asset allocation. Having proper asset allocation means you are well diversified in the asset classes you invest in. The three main classes are stocks, bonds, and cash, but other assets include real estate, commodities, and private equity investments. 

It’s important to have exposure to all of the different asset classes because history has shown a diversified portfolio maximizes your returns while protecting you from catastrophic losses. Additionally, the amount you keep invested between risky and conservative investments will determine your potential return. Growth-oriented asset classes like stocks, real estate, and commodities have the highest chance to both make and lose money, whereas cash and bonds are the more conservative investment. 

Investing in different asset classes isn’t enough. You need diverse investments as well! Connecticut did poorly because it had too much money in only a handful of investments that did not perform. If you're heavily concentrated in small-cap, large-cap, or international stocks, think about diversifying across the different sectors of the market. 

My recommended diversification strategy for stocks is having a large-cap, mid-cap, and small-cap stock fund. The sizes represent the worth of the company determined by taking the price of their stock times the number of shares. The resulting number represents that company’s market capitalization. You need all three because markets move at different times, and you want to take advantage of every opportunity. Round out your portfolio with some international and emerging market investments, and your stocks will be good to go. Listen to this episode for more on giving your portfolio a makeover!

• Why Connecticut’s Investments Are Underperforming
• Take my Retirement Readiness Review online course!

www.MorrisseyWealthManagement.com/contact

In January of 2023, the United States reached its debt ceiling, sparking concerns that we could default on our debts as early as June 1st. To navigate the debt ceiling crisis, I’m sharing five insights to help you understand what the debt ceiling is, what happens if that limit is breached, how the debt ceiling affects your retirement funds, and the risks of timing the market.

• What is the debt ceiling? [2:37]
• What happens if the U.S. breaches the debt ceiling limit? [3:26]
• How would a U.S. debt default impact my retirement savings? [6:02]
• Why you shouldn't try to time the market [8:18]
• Additional consequences of the debt ceiling crisis [13:01]

In order to understand how the debt ceiling crisis impacts your retirement portfolio, we first have to know what the debt ceiling is and how it works. The debt ceiling is the maximum amount of debt that can be incurred by the U.S. Treasury to cover the United States financial obligations as set by law. This debt includes borrowed funds used to pay for things like Social Security, Medicare, and interest on the national debt. Unfortunately, the debt ceiling has been raised 78 times since 1960 and increased under every presidential administration since 1933. 

So where is all the hype coming from over the current debt ceiling crisis? Well, politics certainly play a role. Even with the House passing a bill to raise the debt ceiling and cut government spending in April 2023, it’s doubtful whether the barely passed legislation will put a dent in the problem. One of the main contributors to U.S. debt in recent years was the government-sponsored COVID-19 Relief Programs that printed billions of dollars into circulation. As of January 2023, the current debt ceiling sits at $31.4 trillion, begging the question: How will the United States meet its obligations?

There are some potentially drastic repercussions for the economy if the U.S. defaults on its debt in the coming months. Companies that were supposed to receive money from the government won't, which could force them into layoffs and spending less money on investments that drive the economy. And slowing corporate growth could lead to a decrease in the U.S. gross domestic product (GDP). Breaching the debt ceiling could also decrease investor confidence, inciting a selling frenzy and a resulting market plummet. 

That last sentence may make you feel like getting your money out of the market, but I would strongly urge you to reconsider. Timing the market sounds easy enough: Buy low, sell high, and wait to buy low again. The problem is that it rarely works out that way because markets are so unpredictable. Things go up and down at the drop of a hat. It’s far better to stay invested and ride the wave, taking short-term losses when you can, and repositioning as needed. But don’t get out! By missing just 10 of the market’s best days, you’ve already cut your investment in half! Listen to this episode for more tips on navigating the debt ceiling crisis.

• Going Down the Debt Limit Rabbit Hole
• Get 25% off of my Retirement Readiness Review online course until June 1st with Promo Code: RETIRE25

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Series EE savings bonds have been around for over three decades. Many of you either own them or have owned them in the past. On this episode, I’m answering a listener’s question about whether Series EE bonds are still a good investment. We’ll dive into what they are, how they differ from I bonds, and what to do (if anything) with old EE bonds.

• What are Series EE savings bonds? [2:37]
• Examining the difference between Series EE and Series I bonds [5:45]
• Should you redeem your old Series EE bonds? [11:14]
• Are Series EE bonds still a good investment? [14:25]

The U.S. Treasury issues two types of savings bonds: Series EE and Series I. Series EE is a non-marketable interest-bearing bond. Meaning it can't be traded in the open market, and you have to purchase them through the U.S. Treasury website. These bonds don't pay regular coupon interest, so it's possible that some of you have never actually received money from these bonds unless you’ve intentionally redeemed it. 

As far as redemption goes, you have to wait at least one year before cashing them in and five years to do so without penalty. After five years, Series EE bonds can be redeemed at any time for their full value and held for up to 30 years. All EE bonds issued after June 2003 come with the guarantee that they will be worth at least double the value you paid for them if held for 20 years. And EE bonds issued after May 2005 earn a fixed interest rate determined when the bond is purchased.

To understand what to do with EE bonds, you first have to look at how they differ from I bonds. I bonds are composed of a fixed interest rate determined at issue, and a variable rate determined as measured by the Consumer Price Index Urban (CPIU) every six months. One of the reasons I bonds have gained recent popularity is the “I” stands for inflation. Due to the high inflation we've experienced in the U.S. over the past few years, I bonds paid as high as a composite rate of 9.62% in May of 2022.

Unlike Series EE bonds newly issued after May 2005, the interest rate changes every six months. In contrast, EE bonds allow you to lock in your interest rate for up to 20 years. Another big difference is that Series EE bonds are guaranteed to at least double within 20 years, whereas I bonds have no guarantee. The only guarantee with an I bond is whatever the fixed interest rate is. IF there is one at the time of purchase. So which savings bond is right for you, and what should you do with old EE bonds? Listen to this episode to find out!

• TreasuryDirect.gov
• Are I Bonds Still Worth It, #136
• Increase Your Cash Return With I Bonds, #84
• Get 25% off of my Retirement Readiness Review online course until June 1st with Promo Code: RETIRE25

www.MorrisseyWealthManagement.com/contact

When is the right time to start collecting Social Security? Many clients and listeners ask me if they should collect benefits as soon as they can at age 62. On this episode, I’m discussing five things you should consider before collecting Social Security to set you up for retirement success. 

• Understanding key dates and ages for Social Security [1:53]
• Are you working? [3:40]
• Are you married? [6:53]
• How is your health? [8:05]
• Do you have dependent children? [9:44]
• Were you previously married? [10:43]

One of the biggest steps toward retirement that anyone can take is beginning to collect Social Security benefits. Many Americans can’t wait to start retirement and opt to receive benefits as soon as they turn 62 years old. This is the first key date in the process of Social Security collection. The second key date is when you reach your full retirement age. For those born in 1960 or later, the full retirement age is 67. Those born before that up to 1954 have their full retirement age reduced by two months. And the retirement age for anyone born before 1954 is 66.

The final key date for Social Security collection is your 70th birthday. If you wait to collect until age 70, you'll receive your highest possible Social Security benefit. This is due to an annual delayed 8% credit earned every year between your full retirement age and age 70. Those who start collecting Social Security at age 62 receive roughly 70% of their benefits, so waiting is usually in your best interest if possible.

The first thing you should consider before collecting Social Security at age 62 is your employment status. Those who decide to collect their benefits early and continue to work are subject to an earning limit. The SSA deducts $1 from your benefits for every $2 you earn over the limit. That’s not a lot of money to live on, seeing as the annual earning limit for 2022 is $21,240. If you wait to start collecting benefits until your full retirement age but remain employed, the annual earning limit jumps to $56,529.

You should also consider your marital status when deciding if collecting Social Security benefits is right for you. If you’re married and your spouse outlives you, they’re eligible to collect the higher of the two benefits. If you start collecting benefits at 62, you are deciding that you and your spouse will have a reduced benefit amount for the rest of your lives. Consider your options carefully and make the best decision for you and your family. Listen to this episode for more on collecting Social Security at age 62!

• Open Social Security
• Social Security Intelligence 
• Get 25% off of my Retirement Readiness Review online course until June 1st with Promo Code: RETIRE25

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There can be a lot of confusion around enrolling in Medicare. Many of my clients believe they HAVE to enroll once they turn 65, but that is not necessarily the case. On this episode, I’m clearing things up by going over five questions you should ask before enrolling in Medicare at age 65.

• Do you have credible coverage? [2:50]
• Are you enrolled in a high-deductible health plan? [3:51]
• Will Medicare save you money? [4:34]
• Is your spouse on your health plan? [6:22]
• Should I enroll in Medicare Part A? [8:41]

The first question anyone should ask themselves before enrolling in Medicare is: Do I already have credible coverage? If you work for a company with 20 or more employees that provides health insurance, that coverage will likely exempt you from enrolling in Medicare if you plan to work past 65. Those who retire, are self-employed, or work for a smaller company will need to enroll in Medicare at 65 or face a 10% penalty for every year they don’t enroll.

There’s also the issue of a Health Savings Account (HSA). If you regularly listen to the show, you know I’m a big fan of HSAs. The fact that they let you save money on a pre-tax basis, take a deduction, grow the money tax-deferred, and then withdraw it tax-free for health-related costs makes HSAs one of the best moves you can make while prepping for retirement. However, signing up for Medicare means that you and your employer can no longer contribute to your HSA. So avoid enrolling in Medicare if you have a high deductible HSA that you want to keep building up!

Another thing to consider is cost. It might cost less to go on Medicare than to stay on your current individual health plan. It could also cost more! The starting premium for Medicare Part B is $164.90. For the first year you’re enrolled in Medicare, they base premiums on your last two years of tax returns. Individuals with an annual income greater than $100,000 and couples with an income that exceeds $200,000 will face a Medicare surcharge called IRMAA (Income Related Medicare Adjustment Amount).

Even paying the base premium of $164.90 won’t cover everything. Medicare does not cover things like out-of-pocket costs or 20% coinsurance, so many people end up enrolling in a supplemental Medicare plan to close the gap. All costs considered, Medicare could end up being a $200 to $400 monthly line item per person. If you're working past 65 and only paying $100 a month for your current health insurance, Medicare is not the answer right now. You are better off staying on your current health insurance until you retire. Listen to this episode for more on enrolling in Medicare at 65!

• Get 25% off of my Retirement Readiness Review online course until June 1st with Promo Code: RETIRE25

www.MorrisseyWealthManagement.com/contact