The theme this week on the Retirement Quick Tips Podcast is: Can Gratitude Help You Make Better Money Decisions? 

Today, I’m talking about how gratitude will help you be more patient. We live in a culture today that is increasingly impatient. Giant leaps in technology and innovation have made it possible to have nearly anything on our doorstep within a matter of days. You want an answer to a question? You can find out right now by googling it. You want to listen to your favorite song. You can type it in to YouTube or whatever streaming service you use, and bam! My kids are irritated when we watch certain shows on demand where they have to watch commercials. They’ve always grown up in a world that is designed for their instant gratification. 

When I was their age, we didn’t have the internet & cassette tapes were still the dominant way to listen to music. Remember the delicate dance of fast forward and rewind if you wanted to listen to your favorite song? It might take you (God forbid) several minutes to find that song! 

Without gratitude and the patience that comes with it, especially in our culture today, it’s easy to have this attitude of quickly moving on to the next shiny object and whatever is next. 

I don’t think the connection between gratitude and patience is self-evident, so let me explain this a little more. The definition of gratitude is “the quality of being thankful; readiness to show appreciation for”. So when you’re thankful and appreciate what you currently have, you’re not in a rush to have everything you want right now. If you want something that’s a big expense - like a kitchen remodel, a new car, or a big vacation, and you are patient, grateful, and content today, you’ll be okay with saving up for it over a period of months or even years. 

You’ll be less likely to go into debt or own things that are superfluous. Sound financial habits are built on patience. And since patience is a fruit of gratitude, we need gratitude in order to have the patience to save for retirement, stick with a plan, pay off debt, and stay invested when the world is going crazy.

We need patience for all of that, and we need gratitude to be more patient. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast. 

----------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

The theme this week on the Retirement Quick Tips Podcast is: Can Gratitude Help You Make Better Money Decisions? 

Today, I’m talking about how gratitude will keep you from overspending. 

If you sat down and made a list of the 10 things in your life that you’re most grateful for, my guess is that the top of your list would be occupied by life’s essentials - the people you love, your home, your job, good food and clean water. Probably not your latest purchase. Yet, still, we get sucked into the lie that if I just had this [fill in the blank here], I would be so much happier. If I had a better house or a better car, or got rid of those unsightly forehead lines with some botox, travelled more, or even just something as simple as a pair of jeans that actually fit me I would not be so discontent and I would be happier.

Not that there’s anything wrong with having a nice car or house or a perfect pair of jeans, or whatever it might be, it’s the longing for what we don’t have that can cause us to spend more than we should. Without gratitude, there’s a hole in our heart, that we just keep trying to fill with more stuff, which is a recipe for failure and lasting unhappiness if we continually try filling it with more stuff. 

Deep down we all know that real and lasting happiness can’t be found in having something we don’t currently have, yet we are still tricked into believing that the pleasure-seeking variety of happiness, which is always short-lived, will make us happy. 

But when you practice gratitude, you are more likely to appreciate the good things you already have in life, and less likely to seek happiness in having more stuff. And when our spending isn’t used as a means to buy happiness, we can better use our financial resources to achieve bigger and more important goals - things like saving enough for your kids' college, getting out of debt, paying off your mortgage, or saving enough for retirement. 

That’s it for today. But before you go, you probably know someone who is close to retirement and could benefit from listening to this podcast. If so, please share this podcast with them and encourage them to check it out by adding it to their flash briefing in Alexa or subscribing wherever they listen to podcasts! 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast. 

----------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

Welcome to a new week here on the Retirement Quick Tips podcast. I’m your host Ashley Micciche, co-owner of True North Retirement Advisors, an independent financial advisory practice managing $325 million in client assets. I’m a Chartered Retirement Planning Counselor, and I started this podcast because I love helping people just like you gain clarity and make a plan for the retirement you envision. 

The theme this week on the podcast is: Can Gratitude Help You Make Better Money Decisions? 

I think we live in a very ungrateful world today.

And I suffer from ingratitude myself. Instead of appreciating the amazing people and things in my life, I find myself always in pursuit of more. Nothing satisfies. I could buy and entire new wardrobe of new clothes and start flicking through my Nordstrom app a week later, looking for a new pair of black leather boots that I’ve talked myself into needing and 100% essential to living a full and happy life.

It sounds crazy when I say that out loud, but that’s more or less the thought pattern that goes on in my mind. Instead of appreciating the season of life I’m in right now with a 14 month old, a 4 year old, and a 7 year old, I often find myself grumbling internally about the never-ending routine of family life - dealing with a baby who can’t seem to work out a regular nap schedule, bribing my 4 year old with candy if he will eat just 4 bites of his dinner, and dealing with the constant cartwheels and handstands when all I want to do is just relax and not have to listen to the noise. I find myself daydreaming about the days when the whining will stop and we can have a care-free vacation that doesn’t involve a u-haul for the stroller, pack & play, diapers and God help us if I forget the pacifiers - which I have been known to do. 

Despite sometimes feeling sorry for myself, I have come a long way in embracing and truly loving the season of life that I’m in. I know that my little kids won’t be little for long, and by appreciating everything about my life today and being truly grateful, I will be happier, be a better mom and wife, and have no regrets about wishing away this amazing time in my life when I am older and they have all left the nest. 

Beyond its connection to happiness and fulfillment, gratitude also has some deep connections to your relationship with money. So this week on the podcast, I’ll talk about:

• How gratitude can keep you from overspending
• How gratitude can help you cultivate more patience...a key ingredient for being good with money is patience.
• On Thanksgiving, I’ll list all the things I’m grateful for. The list is long, and hopefully it will inspire you to think creatively about all the things you’re grateful for
• How Gratitude Aligns Your Values With How You Spend Money
• Practical Ways To Start A Habit Of Gratitude

I hope what I have to share with you this week will help you make smart and thoughtful decisions with your retirement. And while I am careful to not lead you astray, personal finance is not an exact science. There is no one-size-fits-all solution for everyone, so I encourage you to disregard anything I say that may not be helpful for you, and to consult your own financial, tax, and legal advisors regarding your own individual situation. 

That’s it for today. Come on back tomorrow where I’ll talking about the connection between gratitude and your spending habits. 

Thanks for listening! My name is Ashley Micciche...and this is the Retirement Quick Tips podcast.

----------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

It’s Sunday, which means...it’s recap time here on the Retirement Quick Tips Podcast

This week the theme was: penalty-free early withdrawals for retirement 

In case you missed any episodes, here’s what we covered this week:

• Should You Start Portfolio Withdrawals In Your 50s?
• Which Investment Accounts To Withdraw First In Retirement
• 72(t) Withdrawal Rules...Explained
• Rule of 55 Withdrawals...Explained
• Use Roth Accounts For Penalty-Free Early Withdrawals?

Here’s the bottom line: Figuring out how to access your investment accounts for income in your 50s is not a black and white, easy answer issue. Your circumstances, your income needs, how much you have invested in various account types, and your tax situation will all influence the best withdrawal strategy for you. But the good news is that you do have options, so hopefully after listening this week you are better equipped to sort through those options and determine the right strategy for you if you’re planning an early retirement. 

Tomorrow, come on back, because we’re starting a brand new theme: Can Gratitude Help You Make Better Money Decisions? 

It’s Thanksgiving week, so it’s the perfect time to explore the connection between gratitude and money, and how fostering a spirit of gratefulness in your life can also help with your relationship with money. 

Thank you so much for listening this week! If this podcast is valuable for you (and hopefully it is otherwise you wouldn’t be listening), please share the show with a friend or co-worker who is getting close to retirement. Just go to your favorite podcasting app, hit the share icon, then text or email the show link to a friend and say, “I love this podcast and thought you might enjoy a listen.”

Thanks for sharing the love and spreading the word. My name is Ashley Micciche, this is the Retirement Quick Tips Podcast and lastly, I hope you have a blessed Sunday.

----------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

The theme this week on the Retirement Quick Tips Podcast is: penalty-free early withdrawals for retirement. 

Today, I’m talking about an idea that clients will often bring up and ask about and that is taking withdrawals in retirement from Roth accounts first. 

After all, you can always withdraw Roth IRA contributions tax-free and penalty-free, so a lot of clients are like well - why don’t I just do that. 

I was racking my brain trying to think of a scenario where that would work and I came up blank. Here’s why: There’s enough flexibility with the early withdrawal rules on retirement accounts that allow for you to tap into these accounts early for an emergency.

And even a small withdrawal from your Roth IRA say at age 55 could prove costly later on in life when you miss out on that tax-free growth because you took the money out of your Roth. 

Think of your Roth like a castle. The castle has a big wall and a moat and guards at every tower. Nothing should enter to pillage the castle, unless you have no other options left. Allowing the account to grow tax-free for you for as long as possible will help maximize your overall assets and income in retirement, so don’t underestimate the powerful growth opportunities of the roth and certainly don’t let anything but the last resort be the reason why you withdraw funds from your Roth accounts earlier than you need to. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast. 

----------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

The theme this week on the Retirement Quick Tips Podcast is: penalty-free early withdrawals for retirement. 

Today, I’m talking about how you might be able to use the Rule of 55 if you retire in your 50s and you need to start taking withdrawals from you tax-deferred accounts prior to age 59 ½. Yesterday, I talked about rule 72(t) for early withdrawals, but the inflexibility and room for error make that a pretty unpalatable solution.

Another option if you’re in this situation is called the Rule of 55. The catch is that it only works for certain workplace retirement plans, like a 401k or 403b, not with a Traditional IRA. 

The Rule of 55 is an IRS regulation that allows those 55 and older to withdraw funds from their 401(k) or 403(b) without a tax penalty.

I had this happen recently with a client who retired after age 55. Most of their assets are in 401k accounts, rather than taxable accounts, so it was something that we explored after my client retired. Similar to the rule of 72(t), it has certain restrictions and you’ll want to make sure you adhere to the rules, but it’s so much more flexible and a lot less room for error. 

Basically, if you retire after age 55, you would leave behind the money you need for withdrawals in your 401k…let’s say it’s $30,000/year that you need for portfolio withdrawals. You would leave enough in the account for portfolio withdrawals. You could leave everything in your 401k, but if you rollover the remaining balance to an IRA, it’s important that you leave enough in the 401k to cover your withdrawals until age 59 ½. 

Your 401k may or may not allow this option, so you’ll want to check with your HR/benefits dept. But if you can utilize this rule, it’s more flexible and easier to administer than the 72(t) withdrawal rule, so it’s worthy of consideration. Once you roll all of your 401k into the IRA, this option is no longer available, so it’s important to find out if this is allowed in the plan before you initiate a rollover with your old employer.

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast. 

----------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

The theme this week on the Retirement Quick Tips Podcast is: penalty-free early withdrawals for retirement. 

Today, I’m talking about one of the most common ways to access your retirement accounts if you need to withdraw funds from your IRA or 401k prior to reaching age 59 ½. Normally, if you withdraw funds early from retirement accounts, you’ll be slapped with a 10% penalty, but you can get around this penalty by utilizing the rule of 72t. 

Here’s how it works, as described in an article on Investopedia: 

“To take advantage of this rule, the owner of the retirement account must take at least five substantially equal periodic payments (SEPPs). The amount of the payments depends on the owner’s life expectancy as calculated through IRS-approved methods. You must also withdraw these funds according to a specific schedule, and the IRS offers three different methods for calculating your specific withdrawal schedule. You must adhere to the payment schedule for five years or until you reach age 59 1/2, whichever comes later (unless you are disabled or die).”

Even though the 72(t) rule allows you to withdraw funds from your IRA or 401k accounts in your 50s, there’s a couple of problems with using this rule:

• If you mess up the calculations or withdraw the wrong amount, it could cost you thousands in additional taxes and IRS penalties
• It’s really inflexible - you generally must continue payments and can’t stop or change them even if later you change your mind or your circumstances change. 

So if you can avoid taking early withdrawals from tax-deferred retirement accounts, it’s best to avoid this. However, tomorrow, I’m going to tell you about a client who had no choice, had to start withdrawals from 401k accounts early, but we found a workaround that didn’t involve 72(t) distributions. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast. 

---------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

The theme this week on the Retirement Quick Tips Podcast is: penalty-free early withdrawals for retirement. 

Today, I’m talking about an important financial concept that you’ll want to have some knowledge about in retirement (regardless of whether you work with a financial advisor or manage your investment portfolio on your own) and that is the sequence of withdrawals. There is a specific spending order that you’ll need to consider when starting portfolio withdrawals in order to minimize taxes in the long-run, and it’s also a spending order that may help you avoid penalties on your withdrawals from retirement accounts prior to age 59 ½. 

The conventional wisdom says that the withdrawal order should be: 

First - taxable investment accounts like Joint, Single & Trust accounts. 

Then, once those accounts are spent or your required minimum distributions kick in, you should withdraw from your tax-deferred retirement accounts like your 401k and your IRA.

Lastly, if those assets are spent down, you would withdraw funds from your Roth last.

For many people, this withdrawal order makes sense, but what’s important to remember here is not that the withdrawal order should always be in this order (because in some cases you would be better off withdrawing from a combination of your taxable and tax-deferred accounts in the same year)...but what really matters is that depending on the types of accounts you have and how much you have in each account - if your assets are skewed more toward taxable or tax deferred accounts, and also your income and tax situation, withdrawal order matters.

Especially if you’re going to retire early, withdrawal order really matters, and that’s because if you have taxable accounts like joint, single, or trust accounts, those will allow you more flexibility, help you avoid the 10% penalty (which doesn’t apply to these accounts) and likely lower tax bills in the early years of retirement if you withdraw from those accounts prior to age 59 ½. 

That’s it for today. Thanks for listening! Tomorrow I’m going to dive into strategies for when most of your assets are in 401k or Traditional IRA accounts and you need to avoid that 10% penalty on withdrawals. 

My name is Ashley Micciche and this is the Retirement Quick Tips podcast. 

----------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

The theme this week on the Retirement Quick Tips Podcast is: penalty-free early withdrawals for retirement. 

Today, I’m talking about why taking withdrawals is especially problematic from IRA or 401k accounts when retiring in your 50s. 

Under normal circumstances, if you withdraw funds from a Traditional IRA or 401k account before 59 ½, you’ll pay taxes + a 10% tax penalty on whatever amount you withdraw. While there much you can do to avoid the taxes, you can avoid paying the penalty on those early withdrawals in many cases. 

And that extra 10% penalty on early withdrawals is what makes early distributions from retirement accounts so problematic. So you want to carefully consider other options so you don’t have to tap into your IRA or 401k accounts when you retire early. 

I’ll talk about specific strategies later this week for avoiding those penalties, but for today’s episode, it’s important to understand the full impact of retiring early on your finances and why it’s so critical to avoid paying those extra penalties.

When you retire early, there’s a perfect storm of 3 important factors:

• Needing to make your money stretch potentially a decade longer in retirement, and possibly making your money last for 30-40 years in retirement, instead of 20-30 years in a typical retirement 
• Social security - since the earliest you can take social security is 62, you’ll need more in assets to cover those higher portfolio withdrawals before social security starts 
• Covering the higher medical expenses before medicare starts at age 65 

So it’s a real challenge to try to avoid penalties while dealing with the unavoidable issues of not being covered by social security or medicare in the early years of retirement. Be sure you think through all of the consequences of an early retirement - not just what that means for portfolio withdrawals - prior to deciding to retire early. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast. 

----------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

Welcome to a new week here on the Retirement Quick Tips podcast. I’m your host Ashley Micciche, co-owner of True North Retirement Advisors, an independent financial advisory practice managing $325 million in client assets. I’m a Chartered Retirement Planning Counselor, and I started this podcast because I love helping people just like you gain clarity and make a plan for the retirement you envision. 

The theme this week on the podcast is: Penalty-Free Early Withdrawals For Retirement

One of the main challenges for people who retire early in their 50s is figuring out how you’ll handle your portfolio withdrawals. How do you access the funds needed in your investment and retirement accounts to pay for healthcare before medicare kicks in and cover your living expenses while you wait to start social security? And how do you avoid penalties on early withdrawals in retirement accounts when you access your IRA and 401k accounts before 59 ½?

These are all important questions to ask if you’re contemplating an early retirement. So this week on the podcast, I’ll talk about:

• Why taking withdrawals is especially problematic from IRA or 401k accounts when retiring in your 50s
• Typical recommended sequence of withdrawals 
• 72t withdrawal rules
• Rule of 55 
• Situations where you might want to access your Roth IRA or 401k and why you usually want to avoid the temptation to access your Roth accounts too early. 

My hope is that if you’re part of the wave of people who plan to retire in their 50s that you’ll gain a better understanding for how you can optimize your withdrawals while minimizing taxes, which is even more critical if you retire early. You might spend an extra decade in retirement when you retire early, so it’s absolutely critical that you understand withdrawal strategies and how they apply to you in early retirement. 

I hope what I have to share with you this week will help you make smart and thoughtful decisions with your retirement. And while I am careful to not lead you astray, personal finance is not an exact science. There is no one-size-fits-all solution for everyone, so I encourage you to disregard anything I say that may not be helpful for you, and to consult your own financial, tax, and legal advisors regarding your own individual situation. 

That’s it for today. Come on back tomorrow, where I’ll dive into why it’s a problem to tap into your retirement accounts before age 59 ½ and what you can do about it. 

Thanks for listening! My name is Ashley Micciche...and this is the Retirement Quick Tips podcast.

----------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance