What will make or break your retirement plan? What makes a plan weak or unrealistic? What needs to be factored into the overall strategy? How do we build a great retirement plan? A retirement plan isn’t just reviewing your investment statements. A far greater level of detail is required to make sure your dream retirement isn’t just a dream—but a reality. So in this episode of Retirement Made Easy, I share a high-level overview of what we do to build a great retirement plan. 

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

• [2:16] Why it’s time to build/update your retirement plan
• [7:47] Check out RetirementMadeEasyPodcast.com
• [10:06] Addressing health insurance in retirement
• [13:48] Do you want to earmark funds for travel? 
• [14:27] What are your goals and objectives?
• [16:22] Factoring inflation into your retirement plan
• [18:08] Your retirement plan needs to be customized to you
• [19:56] Do your investments align with your goals?
• [21:00] Where is your income coming from?
• [22:14] Making your retirement plan tax-efficient
• [23:25] Legacy, estate, and beneficiary planning

Resources & People Mentioned

• 3 Steps to Retirement Planning
• The Retirement Story Everyone NEEDS to Hear, Ep #6 

Connect With Gregg Gonzalez

• Email at: [email protected] 
• Podcast: https://RetirementMadeEasyPodcast.com
• Website: https://StLouisFinancialAdvisor.com
• Follow Gregg on LinkedIn
• Follow Gregg on Facebook
• Follow Gregg on YouTube

Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

Can you convert a beneficiary IRA to a Roth IRA? Can you roll a 401k into a 403B? What about alternative investments—are they worth the risk? The questions have been rolling in, so in this episode of the Retirement Made Easy podcast, I’m tackling some of the most asked questions I’ve received. Don’t miss it! 

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

• [4:19] Question #1: Can you convert an inherited IRA to a Roth IRA?
• [7:44] Question #2: Can you roll a 401k into a 403B?
• [12:45] Question #3: Are alternative investments risky?
• [15:49] Question #4: When do survivor benefits begin?
• [18:51] Question #5: Can a non-working spouse contribute to a Roth IRA?
• [20:38] Question #6: How does the gift tax exclusion work?

Resources & People Mentioned

• 3 Steps to Retirement Planning
• Atomic Habits by James Clear

Connect With Gregg Gonzalez

• Email at: [email protected] 
• Podcast: https://RetirementMadeEasyPodcast.com
• Website: https://StLouisFinancialAdvisor.com
• Follow Gregg on LinkedIn
• Follow Gregg on Facebook
• Follow Gregg on YouTube

Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

I’ve had numerous people ask me about managing their income in retirement. Your income in retirement will be different from everyone else’s, unique to you. But what sources can you draw from? What will it look like? How do you plan for it? Where can you go wrong? I’ll start to dissect each of these topics in this episode of Retirement Made Easy. I’ll lay out some of the important things you need to keep in mind as you manage your retirement income. Check it out!

 

#Retire #Retirement #RetirementPlanning #RetirementPlan #FinancialFreedom #investing #investments #DaveRamsey #SmartVestorPro

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

• [1:56] Check out RetirementMadeEasyPodcast.com! 
• [4:25] The main source of retirement income: Social Security 
• [6:34] Other common sources of retirement income
• [8:58] The most important retirement income source
• [12:00] Have a retirement income game plan
• [20:28] Create a tax-efficient retirement income stream

Resources & People Mentioned

• 3 Steps to Retirement Planning

Connect With Gregg Gonzalez

• Email at: [email protected] 
• Podcast: https://RetirementMadeEasyPodcast.com
• Website: https://StLouisFinancialAdvisor.com
• Follow Gregg on LinkedIn
• Follow Gregg on Facebook
• Follow Gregg on YouTube

Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

Emotions are often the drivers of our financial decisions. This year we’ve seen record inflation. The Fed continues to raise interest rates. There is a banking crisis. Then there’s the discussion of whether or not we’re in a recession. Many people have wiped their savings and emergency funds and have held them as cash because they’re worried their bank or credit union might fail. 2024 is another election year.

But a lot of this is noise. The market will always fluctuate because of numerous factors. As a financial planner, when short-term concerns arise, it’s my job to remind people of the long-term goals they have. There will be numerous things per year that can throw us off course—if we react adversely. Listen to this episode of Retirement Made Easy to learn more about controlling your emotions when things get tumultuous. 

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

• [6:49] Why you can’t let short-term concerns derail long-term goals
• [9:42] Should you put money into CDs or money markets?
• [11:23] People make purchase and investment decisions based on emotions
• [15:52] Learn more about the bucket strategy for investing

Resources & People Mentioned

• 3 Steps to Retirement Planning
• The Retirement Bucket Strategy

Connect With Gregg Gonzalez

• Email at: [email protected] 
• Podcast: https://RetirementMadeEasyPodcast.com
• Website: https://StLouisFinancialAdvisor.com
• Follow Gregg on LinkedIn
• Follow Gregg on Facebook
• Follow Gregg on YouTube

Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

Everyone is likely familiar with 401k plans and many people have them through an employer. But do you know anything beyond the very basics? Does your company offer a match (and do you know how it works)? Do you know how much your plan costs or what your balance is? In this episode of Retirement Made Easy, I’m going to start covering some of the ins and outs of 401k plans. My hope is that you’ll gain a better understanding of something so important to a successful retirement. 

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

• [0:35] Send me questions and ideas for future episodes!
• [4:35] The employer gets to determine 401k matching
• [9:44] The average 401k balance by age
• [12:14] Types of investment options in 401k plans
• [17:13] Why you shouldn’t pull your money out of the market
• [19:18] The advantages of Roth 401ks/traditional 401ks
• [23:33] Consolidating or rolling over old 401k plans

Resources & People Mentioned

• 3 Steps to Retirement Planning
• The Average 401k Balance by Age

Connect With Gregg Gonzalez

• Email at: [email protected] 
• Podcast: https://RetirementMadeEasyPodcast.com
• Website: https://StLouisFinancialAdvisor.com
• Follow Gregg on LinkedIn
• Follow Gregg on Facebook
• Follow Gregg on YouTube

Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

Tax planning is different when you’re retired versus during your working years. It also changes from state to state. Some states are more tax-friendly than others. That’s why many people retire in Florida, Tennessee, and Texas. Taxes matter in the decisions that we make. However, you can take tax planning too far. In this episode of the Retirement Made Easy podcast, I cover assessing the quality of your assets, why you can’t let taxes dictate everything you do, and something to watch out for when you choose a financial planner. 

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

• [4:45] Check out RetirementMadeEasyPodcast.com!
• [6:13] Assessing the quality of the assets that you own
• [13:34] How are your taxes going to be different in retirement?
• [15:55] We can’t let taxes take over the driver’s seat
• [19:00] Carefully chose who creates your retirement plan

Resources & People Mentioned

• 3 Steps to Retirement Planning
• Scotty Kilmer’s YouTube channel
• The Best—and Worst—States to Retire To, Ep #53

Connect With Gregg Gonzalez

• Email at: [email protected] 
• Podcast: https://RetirementMadeEasyPodcast.com
• Website: https://StLouisFinancialAdvisor.com
• Follow Gregg on LinkedIn
• Follow Gregg on Facebook
• Follow Gregg on YouTube

Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

Listener questions have been piling up and a Q&A is LONG overdue. So in this episode of the Retirement Made Easy podcast, I’ll cover as many questions as I can. I’ll cover everything from Medicare Part B to SEP IRAs, and the impact of inflation to collecting Social Security benefits. Don’t miss this comprehensive episode! 

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

• [3:54] Question #1: Does Biden’s ESG veto impact your brokerage accounts?
• [7:17] Question #2: Why is my husband’s Medicare Part B premium so high?
• [10:00] Question #3: Why can’t I contribute to my Roth SEP IRA yet? 
• [11:33] Question #4: Can you help us understand the impact of inflation?
• [16:07] Question #5: How should I invest my Roth IRA and 401k?
• [20:00] Question #6: Can you help manage a trust? 
• [23:44] Question #7: What happens if you die before collecting social security?

Why is my husband’s Medicare Part B premium so high?

The listener’s husband turned 65 and applied for Medicare. They were shocked when his Medicare Part B premium was far higher than expected (and his Social Security benefit was reduced far more than they expected). She thought it would be $165 per month, which would cover 80% of his medical costs. Then he’d get a supplement to cover the rest. Why is his premium so high?

The Part B Medicare premium is income-based. The amount you’re paying for the premium is based on your income two years prior. I bet if you go back and look at his earnings from two years ago, they were likely over the limit for the $165 premium. There’s a premium table that dictates the premiums you’re paying today. If you believe you’re being overcharged, there’s a special form you can submit to appeal the premium. It’s linked in the resources below! 

Can you help us understand the impact of inflation?

One of the biggest risks of retirement planning is the rising cost of living, i.e. inflation. Inflation heavily impacted people in 2022. Retired people especially felt it. How can we understand the real risks of inflation? 

A 62-year-old non-smoking couple in the US has a joint life expectancy of 30 years. The wife is predicted to pass away at 92. If you’re planning for a 30-year retirement, you have to factor in the rising costs of living. Inflation WILL impact your retirement. 

But our brains find it hard to imagine things in the future. It seems less real. So instead of trying to guess what costs are 30 years in the future, look back 30 years. How were things in 1993? The cost of stamps, Big Macs, cars, and college tuition has risen significantly since 1993. Prices will continue to rise over time. So you need a retirement plan that accounts for rising living costs. 

Can you help manage a trust? 

A listener’s husband passed away. When he died, all of their accounts went into a trust. The trust names his two daughters and son as co-trustees. They are now responsible for making financial decisions for their mom. However, the kids and their spouses seem to be struggling with the responsibility—The value of the trust was down 38% in 2022. What can she do? 

Go see an attorney. With the kids being named as trustees, they get to call the shots. The trust should have designated a financial planner or institution to manage the trust after the husband’s passing. The trust should also include guidelines of what the trust can be invested in, what income comes out of it for the widow, etc. 

The couple should have been working as a team with a competent financial planner so that when the husband passed, the wife could turn to her financial planner. But because that isn’t the case, I recommend speaking with an attorney. I’m sure the children are trying to do what’s best, but they likely just aren’t qualified to manage the fund.

What happens if you die before collecting social security?

I had a 45-minute conversation with a bright and friendly listener. He’s a single guy worried about his social security. He’s been paying into social security for 39 years. If he delays his benefit until he’s 70 and dies, does social security pay out a measly death benefit? If he dies before collecting, where does all of that money go? Is it essentially gone? 

Hypothetically speaking, yes, it’s gone. There is no residual value there. This gentleman didn’t believe this was fair. So what can you do if you’re worried about passing away before claiming benefits? 

He could always claim his benefit early and suspend it later if need be. You can always start your benefit—and within 12 months of starting it—can suspend or withdraw the application. Hoover, you will have to pay back what you received. What else can you do? Listen to the whole episode to learn more!

Resources & People Mentioned

• 9 Ways the SECURE Act 2.0 Will Impact Retirees, Ep #132
• 3 Steps to Retirement Planning
• Biden Vetoes First Bill
• Medicare Part B Premium Chart
• Medicare Part B Appeal Form

Connect With Gregg Gonzalez

• Email at: [email protected] 
• Podcast: https://RetirementMadeEasyPodcast.com
• Website: https://StLouisFinancialAdvisor.com
• Follow Gregg on LinkedIn
• Follow Gregg on Facebook
• Follow Gregg on YouTube

Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

The Social Security Expansion Act is being introduced to congress, sponsored by Bernie Sanders, with the “goal” of increasing the solvency of the Social Security fund. Sadly, by 2035, Social Security benefits will have to be reduced by 25% if nothing is done. Senator Elizabeth Warren states that the Social Security trust fund would remain solvent until 2096 if these changes are put into place.

But a lot of the proposed changes in the bill are controversial, to say the least—including how they propose we increase payments into the fund. I’ll cover four of the main goals of this bill in this episode of Retirement Made Easy and share my thoughts on each one. Don’t miss it!

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

• [0:53] A big thank you to my listeners
• [1:49] Why retirement planning HAS to be customized
• [5:37] The Social Security Expansion Act
• [7:50] Goal #1: To increase the benefits for all recipients 
• [9:23] Goal #2: Change the cost-of-living adjustment calculation 
• [10:28] Goal #3: Making high-income earners pay more
• [12:41] Goal #4: Increasing the Net Investment Income Tax 
• [13:50] My thoughts on the proposed bill

Goal #1: To increase the benefits for all recipients

The bill starts with a fact sheet, which includes these sad facts:

• One in seven seniors relies on Social Security for more than 90% of their income
• Half of Americans 55 and older have nothing saved for retirement
• The average Social Security benefit is $1,688 per month

Many seniors are struggling, which is why they’re trying to overhaul social security. That’s why their first proposal is to increase the benefit for all Social Security recipients by $200 per month (which would apply to everyone, even those on Social Security who aren’t seniors). 

Goal #2: Change the cost-of-living adjustment calculation 

The bill also proposes changing how the cost-of-living adjustment is calculated. Right now they calculate based on a CPI-W index. They want to change it to a CPI-E index, with the “E” being short for the elderly. It makes a lot of sense. Seniors spend money on doctor visits, medical bills, prescriptions, etc. It’s smart to track the cost of living of people in that age group and this index would be a better indication of spending habits for recipients.

Goal #3: Making high-income earners pay more

Currently, you pay into social security on the first $160,200 that you earn. You pay 6.2% and your employer pays 6.2%. The proposed change is trying to hit high-income earners.

Let’s say you make $1,000,000. Right now, this person is paying 6.2% into social security on the first $160,200. Anything they earn above that doesn’t require paying into social security. This bill proposes that for every dollar they make above $250,000, they’d pay 6.2% into social security. 

That’s another $46,500 that this person would have to pay that they wouldn’t have had to pay otherwise. But it doesn’t stop there.

Goal #4: Increasing the Net Investment Income Tax

Anyone making $250,000 or more already has to pay a net investment income tax of 3.8% on capital gains on investments (stocks, bonds, etc.). The bill proposes increasing this tax by 12.4%, taking the net investment income tax to 16.2%.

My thoughts on The Social Security Expansion Act

We currently have a divided congress, so the chances of this bill passing are slim. The bill is also asking politicians—i.e. high-income earners—to vote for a bill that will tax their friends and supporters. Secondly, I think the bill overestimates the tax revenues they’ll get. If you slap an additional 12.4% tax on high-income earners, they will strategically pivot. 

The extra $200 a month would be a permanent increase for everyone. But many people don’t need the extra $200 per month. The increase should be proposed based on need, not a blanket policy. 

The amount people get now is based on how much they paid into social security over the years. Your social security check should be based on how much you paid in, not how much someone else paid. It doesn’t seem fair.

I know there are a lot of people hurting and inflation is negatively impacting retirees. But I’m not sure this bill is the answer. Listen to the whole episode to hear my thoughts!

Resources & People Mentioned

• 3 Steps to Retirement Planning
• The Social Security Expansion Act
• What Social Security’s Cost of Living Increase in 2022 Means for You, Ep #69 
• How Rising Interest Rates Will Impact Your Retirement, Ep #121

Connect With Gregg Gonzalez

• Email at: [email protected] 
• Podcast: https://RetirementMadeEasyPodcast.com
• Website: https://StLouisFinancialAdvisor.com
• Follow Gregg on LinkedIn
• Follow Gregg on Facebook
• Follow Gregg on YouTube

Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

When you retire, where does your income come from? How frequently will you get “paid?” Can you choose when you’ll get social security income? In this episode of the Retirement Made Easy podcast, I’ll cover how income works in retirement and what you’re able to “customize” to you. I’ll also cover some listener questions regarding social security and who you should trust. Don’t miss it! 

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

• [1:50] Where does your retirement income come from?
• [14:16] Tom’s Question: How does the spousal benefit work?
• [18:41] Tina’s Question: Should I invest in these two mutual funds?

Where does your retirement income come from?

Many people get paid every two weeks working a normal job. But when you retire, how do you decide how often to pay yourself or make a withdrawal? How do you decide when to withdraw from a Roth IRA, IRA, or after-tax brokerage account? How does it work with social security and pensions?

There are a lot of factors to consider. So we break it down into steps and help our clients map it out:

• Step #1: How much income do you need every month to live the lifestyle that you want? If you don’t know, head to my website and check out my “Retirement Budgeting Tool.” Keep in mind that your expenses in retirement will likely be different than while you were working. 
• Step #2: What are your fixed income sources, i.e. social security/pensions? 
• Step #3: What gap is there between your fixed income sources and the amount you need to live comfortably every month?

We will come up with a game plan where you draw the money you need from Roth IRAs, IRAs, and brokerage accounts to fill that gap. 

If someone needs $2,500 on top of social security and pensions, we might draw $500 of income from their Roth IRA, $1,000 from their IRA, and $1,000 from an after-tax brokerage account. We do this strategically to keep them in the lowest tax bracket possible. 

All of that being said, many of our clients like to make withdrawals the first week and third week of the month. Others are fine with only getting paid monthly and prefer to receive their distributions in the same week. It comes down to personal preference (in most cases). However, your pension and social security pay out once a month.

Tom’s Question: How does the spousal benefit work?

Tom and his wife are both 62. Tom plans to continue to work while his wife would collect her social security benefit. When they both turned 67, Tom planned to retire and claim his benefit. He understood that his wife would get half of his social security income, or $1,400. In total, they’d receive $4,200 a month from social security. 

Tom’s wife certainly can claim her benefit at 62. She can also claim her spousal benefit after Tom retires. However, if she claims her benefit at 62, she won’t get the full 50% spousal benefit when they’re both retired. 

For every month that she collects her social security income before full retirement age, it reduces the spousal benefit. However, if both waited until they were 67, he could claim the $2,800 and she could claim the $1,400 spousal benefit.

Tina’s Question: Should I invest in these two mutual funds?

Tina asked my thoughts on a financial expert on YouTube. He claims that the best investment strategy for retirees is to own two specific mutual funds. Would I recommend that? I watched the video. This person isn’t a financial planner or financial advisor. He isn’t licensed to give financial advice at all. 

Someone who is licensed—like me—can’t put out videos giving blanket advice to people. Anyone else can—but would you trust it? Would you take financial advice from that person? You can’t take this as real advice and implement it. I would never recommend that you put all of your money into two specific mutual funds at the advice of someone not certified to give it. 

The bottom line? Be careful who you take advice from. Learn more in this episode of Retirement Made Easy!

Resources & People Mentioned 

• 3 Steps to Retirement Planning

Connect With Gregg Gonzalez

• Email at: [email protected] 
• Podcast: https://RetirementMadeEasyPodcast.com
• Website: https://StLouisFinancialAdvisor.com
• Follow Gregg on LinkedIn
• Follow Gregg on Facebook
• Follow Gregg on YouTube

Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

There’s a lot of misunderstanding circulating regarding social security claiming strategies with spousal and survivor benefits. Spousal benefits and survivor benefits can be confusing and difficult to understand. So in this episode of Retirement Made Easy, I’m going to tackle this topic. I’ll also cover the FairTax Act of 2023 and why you shouldn’t make changes to your retirement planning based on this act just yet. Don’t miss this informative episode! 

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

• [3:16] The basics of the FairTax Act of 2023
• [10:20] The spousal benefit vs. survivor benefit
• [14:45] Planning social security around spousal benefits

The basics of the FairTax Act 

The Fair Tax Act is a sales tax bill that was introduced by Republicans to abolish the IRS. It would change the tax code as we know it. I keep getting asked: What’s a good strategy in response to the bill that might become law?

Let’s backtrack a little first. The act proposes getting rid of the IRS and Federal income taxes across the country. It would institute a 30% sales tax on top of local and state taxes. Why? Because 40.1% of US households didn’t pay Federal income taxes in 2022. These Republicans want to recoup money from these households to help cover Medicare and Social Security. 

Think of what inflation would be if you had a 30% sales tax. The price of goods and services would go up a lot. It would be offset by the amount you’d be saving on Federal taxes, so your paycheck would go up. But would it offset too much? Would you end up paying far more? 

I’m not a proponent of this bill. My response to the questions I’m getting is this: We aren’t going to change your retirement plans based on a rumor or possibility. Biden says he’d veto the bill if it got to him. I wouldn’t make any changes until this became law.

The spousal benefit vs. survivor benefit

A listener—who I’m going to call Lisa—was married for 20 years and has been divorced for five. She wanted to claim her spousal benefit based on her ex-husband’s earnings. She met the time requirements for claiming an ex-spouse. But she was under the impression that if she claimed benefits at 62, she could claim half of her husband’s benefit and then claim his entire benefit at his full retirement age. She was misinformed.

At her full retirement age, she can get half of her husband's “Primary Insurance Amount” or PIA, which is his benefit at his full retirement age. So if his benefit is $3,000 a month, she could claim half of that. If she claimed it when she was 62, it would be further reduced. When would she get the full benefit? If he passed away, she’d be eligible for the survivor benefit. 

Planning social security around spousal benefits

I spoke with a couple who was clear that social security would be a large part of their retirement income. Someone had misinformed them about how the benefits worked. She was 62 and he was 58. Let’s call them John and Joan.

Joan wanted to claim her benefit at age 62. Her benefit was lower than her husband’s. She thought it would be dumb to let it sit and not collect it. Then, when he hit full retirement age, she planned on claiming her spousal benefit (50% of her husband’s benefit). 

But to get the spousal benefit, her spouse has to claim his benefit first. However, when Joan is 67, she won’t get the full spousal benefit. Why? Because she collected her own benefit at age 62. Social Security will reduce her spousal benefit because she had claimed her own.

What happens if she waits until full retirement age to claim her benefit? Listen to the whole episode to learn more about collecting spousal benefits. 

Resources & People Mentioned

• 3 Steps to Retirement Planning
• The FairTax™ Act

Connect With Gregg Gonzalez

• Email at: [email protected] 
• Podcast: https://RetirementMadeEasyPodcast.com
• Website: https://StLouisFinancialAdvisor.com
• Follow Gregg on LinkedIn
• Follow Gregg on Facebook
• Follow Gregg on YouTube

Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts