Retire With Ryan

Building on last week's discussion about why rolling over your old 401(k) into an IRA could be a smart move, this episode flips the script. It explores seven compelling reasons you might want to leave your 401(k) with your previous employer instead. I break down factors like fees, company stock advantages, penalty-free withdrawals, legal protections, and unique investment options that could all influence your decision.  If you're approaching retirement or just planning your next career move, this episode is packed with insights to help you make the best choices for your financial future.  You will want to hear this episode if you are interested in... [04:12] Leave company stock in 401k to use net unrealized depreciation, potentially saving on taxes via long-term capital gains. [08:55] Consider keeping company stock in an old 401(k) to avoid taxes and penalties if under 59.5 years. [10:01] IRA withdrawal exemptions and strategies. [16:01] Consider keeping your old 401 (k) for potential loan access, but check if your provider permits non-employee loans. [17:50] Deferring 401(k) distributions explained. When to Leave Your Old 401(k) With Your Previous Employer Changing jobs often means making quick decisions about retirement savings. While rolling over your old 401(k) into an IRA is a common choice, there are significant advantages to leaving it where it is. This week, I'm discussing the situations when maintaining your previous employer's retirement plan is advantageous.  1. Potential for Lower Fees If you worked for a large organization, their 401(k) plan might offer exceptionally low administrative and investment fees, especially if they've chosen robust menus with index fund options. While IRA costs have dropped due to strong competition among major financial institutions like Schwab, Fidelity, and Vanguard, some large employer plans still offer a lower cost.  Always compare fees before making a move; sometimes, your old 401(k) will be the most cost-effective option available. 2. Tax Benefits of Company Stock (Net Unrealized Appreciation) Do you have significant company stock in your 401(k)? You could benefit from the unique tax break called Net Unrealized Appreciation (NUA). This allows you to pay lower long-term capital gains rates on your stock's growth instead of higher ordinary income rates. However, to take advantage of NUA, you must carefully roll out your stock and be mindful of any 10% penalty if you're under 59½. Know your stock's cost basis and consult with a tax professional to determine if waiting is best, especially if your cost basis is higher. 3. Penalty-Free Access Between Age 55 and 59½ Left your job between 55 and 59½? Here's a little-known benefit: you can tap your old 401(k) penalty-free before age 59½. If you roll the balance into an IRA, that door closes, unless you qualify for rare exceptions. This rule can be crucial if you need those funds to bridge the gap to retirement, so consider leaving at least part of your balance in the plan until you turn 59½. 4. Enhanced Creditor Protection Federal law (ERISA) offers 401(k) plans strong protection from creditors and judgments, even in bankruptcy. While rollover IRAs are also protected under federal and many state laws, the details can get complicated. Certain states may limit IRA protections, so it's wise to investigate your state's rules. Segmenting rollover IRAs from contributory IRAs can also help simplify tracking and protection. 5. Access to Stable Value Funds Some 401(k) plans offer stable value funds, a low-risk investment choice that often comes with a guaranteed minimum rate of return. While money market funds are currently paying more, that could change if interest rates drop. In lower-rate environments, stable value funds could offer an edge and a safe harbor for your retirement assets. 6. Possible Loan Availability Need to borrow against your retirement savings? Some plans allow you to take a loan from your 401(k), even after leaving the company. However, this isn't universal, since loan repayments are usually tied to payroll. Check with your plan administrator to see if this benefit applies; if it does, it could be an important safety net. 7. Required Minimum Distribution (RMD) Deferral if Still Working If you work past age 73, keeping your funds in a 401(k) with your current employer lets you defer required minimum distributions (RMDs). That's not the case with IRAs. Consolidating old 401(k)s into your current plan can simplify RMD timing and let your funds grow tax-deferred a bit longer. Make an Informed Move Rolling over your 401(k) may seem automatic, but there are times when staying put is the better choice. Carefully assess fees, tax implications, creditor protections, and your unique needs. Most importantly, consider working with a fiduciary, fee-only financial advisor who understands your entire financial picture. Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  Charles Schwab Fidelity Vanguard Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact   Subscribe to Retire With Ryan

In today's episode, I'm diving into a topic that's top-of-mind for anyone who's switched jobs: what should you do with your old 401(k) plan? I discuss five key reasons why moving them into an IRA could simplify your financial life, from consolidating accounts for better control to gaining access to a broader range of investment options, reducing fees, optimizing Roth and after-tax funds, and making it easier to work with a financial advisor.  Whether you're planning your next career step or just want to make your retirement savings work harder for you, this episode is packed with practical advice to guide your decision. Stick around until the end, and don't forget to tune in next week when I cover situations where rolling over your 401(k) might not be the best choice! You will want to hear this episode if you are interested in... [00:00] Vested retirement funds offer four options: keep them in the plan, or withdraw and pay taxes [04:46] Rolling over a 401(k) to an IRA offers more control and access to your retirement funds, preventing forgotten accounts as you change jobs [06:41] Consolidate investments for simplicity and control; update records if keeping old retirement accounts [12:05] Convert Roth contributions to a Roth IRA to start the five-year period and ensure future gains grow tax-free, especially for after-tax funds in a 401(k) without in-plan Roth conversions [13:13] Rollovers to an IRA can facilitate Roth conversions and allow financial advisors to manage retirement accounts. Consolidate Old 401ks for a Smoother Future When you change jobs, it's important not to leave your old retirement accounts behind. For many Americans, the primary vehicle for saving for retirement is their employer-sponsored 401(k) plan. But what should you do with that 401(k) once you've moved on? Rolling it into an Individual Retirement Account (IRA) may be the smart move, offering control, flexibility, potential cost savings, and tax advantages. Let's walk through five compelling reasons why a 401(k) rollover into an IRA might make sense for you. 1. Greater Control and Account Consolidation One of the biggest headaches of changing jobs multiple times is having various retirement accounts scattered across different institutions. Not only is it difficult to keep track of these accounts, but there's the risk that you might forget about them entirely. By rolling old 401(k)s into a single IRA, you consolidate your investments, making it easier to manage and monitor your retirement savings. With all your funds in one place, you'll have more control over your asset allocation and will be better positioned to implement a cohesive investment strategy. Additionally, consolidating accounts reduces the administrative burden of managing multiple logins and statements. 2. Expanded Investment Choices and Flexibility Most employer-sponsored 401(k) plans offer a fairly limited menu of investment options, typically ranging from a dozen to twenty funds. These may or may not align with your preferred asset allocation strategy, and some plans are more limited than others. By rolling over your 401(k) into an IRA at a major discount broker like Schwab, Fidelity, or Vanguard, you unlock a much broader universe of investment possibilities, mutual funds, exchange-traded funds (ETFs), stocks, bonds, CDs, and more. This flexibility lets you fine-tune your portfolio, properly diversify, and better tailor your investments to your risk profile and retirement timeline. 3. Potential for Lower Investment Costs 401(k) plans, particularly those from smaller employers, often feature higher administrative and fund expenses, sometimes reaching 1% or more in annual fees. These extra costs chip away at your investment returns over time. With an IRA, especially when investing in low-cost ETFs or mutual funds, you can often significantly reduce the expense ratios you pay. Over decades, even a modest reduction in annual fees can translate into thousands more in retirement savings due to the power of compounding. 4. Managing Roth and After-Tax Contributions Many 401(k) plans now offer a designated Roth component as well as avenues for after-tax contributions. When you roll over your account, this is a valuable opportunity to ensure your Roth and after-tax money are treated with optimal tax efficiency. For example, rolling Roth 401(k) funds into a Roth IRA starts the five-year clock for tax-free withdrawals on earnings, which is critical for planning your retirement withdrawals. Additionally, an IRA rollover can be structured to split after-tax contributions into a Roth IRA, giving those funds tax-free growth potential rather than the more limited advantages offered inside the 401(k). 5. Access to Professional Management If you want professional help managing your retirement investments and financial planning, rolling your assets into an IRA is almost always a prerequisite. Advisors generally cannot manage assets held within a former employer's 401(k) platform, but with funds consolidated in an IRA at a major custodian, they can actively manage your investments, make ongoing adjustments, and assist with tax planning and distributions as you transition into retirement. Assess Your Situation Before Moving While rolling over your old 401(k) to an IRA offers considerable advantages, it's not always the perfect solution for everyone. Each situation is unique, and certain protections or features (such as early withdrawal options or creditor protections) may be stronger inside a 401(k) for some individuals. Be sure to review your specific circumstances carefully, ideally, with a trusted financial advisor, before making any big moves. A well-considered rollover could make your road to retirement much smoother, giving you more control, lower costs, and better investment options along the way. Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  Schwab Fidelity  Vanguard Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact   Subscribe to Retire With Ryan

This week on the show, I'm joined in person by investment veteran Michael Sheldon, who brings over 26 years of experience in the financial services industry. We dig into essential strategies for investing as you approach and enter retirement, covering asset allocation, diversification, income planning, and how to handle inevitable market volatility.  Whether you're a pre-retiree, a recent retiree, or just looking to strengthen your investment approach, Michael offers some great actionable insights designed to help you build a resilient portfolio and stay on track toward your long-term financial goals.  You will want to hear this episode if you are interested in... [04:52]  Portfolio risk should change as you age, becoming more conservative in retirement. [09:34] Why US large-cap stocks have outperformed recently. [14:13] Pros and cons of target date funds, including fees, asset allocation, and international exposure. [16:07] Michael warns against chasing high-yield dividend stocks. [18:51] Private equity/real estate and understanding the liquidity and risks. [31:15] Building income streams, reducing volatility, and portfolio standard deviation as you near retirement. [43:18] Why maintaining discipline through corrections is key to investment success. Strategies to Weather Market Ups and Downs Any successful investment journey begins with a clear financial plan. Michael emphasizes the importance of understanding your spending needs in retirement. This process often starts with creating a detailed budget. A thorough assessment of current and expected future expenses helps determine the appropriate rate of return necessary to achieve your retirement goals. Once you have a handle on your budget, you can set a target allocation that aligns your risk tolerance with your required investment returns. Your personal plan should factor in not only your goals and time horizon, but also your comfort level with market volatility. Balancing Risk and Opportunity As you move closer to retirement, adjusting your asset allocation becomes increasingly important. Younger investors can often afford to be more aggressive, allocating a larger portion (often 70% - 100%) to equities, since they have time to recover from market downturns. However, those approaching or in retirement generally benefit from more conservative portfolios, emphasizing capital preservation. A common rule of thumb discussed was to maintain 3 - 5 years of living expenses in cash or short-term bonds. This buffer allows retirees to weather market downturns without selling equities at a loss. Still, every investor is different. Some retirees, especially those with higher risk tolerance or substantial resources, may maintain large allocations to equities. The key is to structure your portfolio to ensure you can meet your expenses even during extended market declines. Don't Chase Home Runs The conversation stressed the dangers of seeking the next “big winner” stock. Instead, the focus should be on diversification, owning a broad mix of asset classes and geographies. While the past decade has seen U.S. large-cap growth stocks outperform other areas, this may not always be the case. International markets, small-cap stocks, and value stocks each tend to outperform at different points in the economic cycle. Proper diversification can help reduce risk and smooth out returns, preventing the common mistake of buying high and selling low. It's wise to avoid concentrating your portfolio too heavily in a single sector, country, or investment style. Beyond Chasing High Dividends One of the big myths in retirement investing is the need to load up on high-dividend-paying stocks for income. Michael cautioned against focusing solely on high yields, as these companies might carry more risk or have unsustainable business models. Instead, look for companies with a solid history of gradually increasing their dividends, which indicates healthy cash flows and business stability. Active vs. Passive Management and Cost Considerations The debate between active and passive management continues. For broad U.S. markets, low-cost index funds and ETFs have outperformed most active managers over time, thanks to lower costs and automatic portfolio updates.  Increasingly, investors are turning to ETFs for their tax efficiency, tradability, and lower fees compared to traditional mutual funds. As with any investment, understanding fees and their impact on long-term returns is vital. The Power of Discipline Finally, Michael shares a valuable perspective on market volatility. Historically, the S&P 500 has experienced average intra-year declines of over 14%, yet finished positive in 76% of years since 1980. Volatility is normal, and patient investors are rewarded for staying invested. Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  Vanguard  Barron's TheStreet.com Blackstone and Starwood iShares Invesco Morningstar JP Morgan's Guide to the Markets Innovator Funds  Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact   Subscribe to Retire With Ryan

On this week's episode, I'm discussing the Federal Employees Retirement System, or FERS, a program that covers nearly all civilian federal workers. If you're a federal employee curious about when you're eligible to retire, how your pension is calculated, what the Thrift Savings Plan offers, or how special early retirement and survivor benefits work, this episode is your go-to resource.  We're breaking down the three key components of FERS: your  Basic Benefit Plan (a pension), Social Security, and the Thrift Savings Plan, as well as important details like cost-of-living adjustments and tax considerations. Whether you're just starting your federal career or planning your retirement right now, you'll get practical insights to help you make the most of your retirement benefits. You will want to hear this episode if you are interested in... [00:00] I share an overview of how FERS provides federal employees' retirement benefits. [05:02] Your basic benefit plan is calculated using the highest average salary over three consecutive years, often the final service years. [09:52] Federal employees retiring at 55-57 receive a FERS supplement until age 62, calculated by years of service/40 times the estimated Social Security benefit. [11:41] Benefits include cost-of-living adjustments for those 62+ or in special roles, aligned with consumer price index increases. [14:52] FERS survivor benefits are available if the deceased had at least 10 years of service. What is FERS, and Who Does It Cover? As one of the most significant employment sectors in the United States, the federal government supports over 3 million workers, the majority of whom participate in the Federal Employees Retirement System (FERS). If you're a federal employee, understanding FERS is vital to planning a comfortable and financially secure retirement. The Federal Employees Retirement System (FERS) is the primary retirement plan for U.S. civilian federal employees hired after 1983. According to the Office of Personnel Management, FERS provides retirement income from three sources:   1. The Basic Benefit Plan (a pension). 2. Social Security. 3. The Thrift Savings Plan (TSP), similar to a private sector 401(k). FERS covers different federal professionals, from law enforcement and firefighters to engineers, analysts, and other administrative roles. Special provisions exist for high-risk positions such as air traffic controllers and certain law enforcement officers, which affect their benefit calculations and retirement age. When Can You Retire Under FERS? Retirement eligibility under FERS primarily depends on age and years of credible service. The key term here is Minimum Retirement Age (MRA), which varies based on birth year, from 55 for those born before 1948 to 57 for workers born in 1970 or later. Retirement options include:   Age 62 with 5 years of service. Age 60 with 20 years of service.  MRA with 30 years of service. MRA with 10 years of service (MRA+10), though benefits are reduced by 5% for each year under age 62. Early retirement is available in some situations, such as involuntary separations or major agency reorganizations. In those cases, eligibility can be as early as age 50 with 20 years of service or at any age with 25 years of service. Calculating Your Basic Pension Benefit The FERS pension is calculated using your “high-3” average salary, the highest three consecutive years of basic pay, usually your last three years. The formula generally provides 1% of your high-3 salary for each year of government service (increases to 1.1% if you retire at 62 or older with 20+ years). Special categories, like federal law enforcement or air traffic controllers, receive 1.7% for the first 20 years and 1% thereafter. For example: If you retire at 57 with 30 years of service and your high-3 average is $165,000:   - 30 years x 1% = 30%   - $165,000 x 30% = $49,500 annual pension The FERS Supplement Since some federal employees retire before they're eligible for Social Security (age 62), FERS includes a Special Retirement Supplement. This bridges the income gap until you can claim Social Security, calculated as:   Years of service ÷ 40 x age-62 Social Security benefit For example, with 30 years of service and a projected Social Security benefit of $2,500 per month, the supplement would be $1,875 per month from retirement until age 62. Understanding FERS is essential for federal workers considering retirement. Regularly reviewing your retirement strategy, estimating future benefits, and taking advantage of financial planning resources can help you maximize your retirement security.  Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  US Office of Personnel Management (OPM) FERS Information  Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact   Subscribe to Retire With Ryan  

Thinking about collecting Social Security while you're still working? It's a tempting option, but there are several crucial mistakes you'll want to avoid. Using real-life stories, I'm laying out the four big pitfalls, like earning over the social security limit, jeopardizing your health savings account, mishandling Medicare enrollment, and forgetting about tax withholding. These missteps can lead to unnecessary penalties, and so I want to give some actionable strategies to help you make the most of your benefits without unpleasant surprises.  You will want to hear this episode if you are interested in... [00:00] Four key factors to consider before collecting Social Security while you're still working. [06:04] Collecting benefits while working can affect HSA contributions. [07:40] Stop HSA contributions six months before enrolling in Medicare Part A to avoid penalties. [13:32] Enrolling in Medicare Part B while having employer insurance is unnecessary, as employer coverage remains primary. [14:33] Medigap timing and social security taxes. [15:21] Social Security is taxable income for most people, which means that you will owe income tax on that money. Choosing when and how to collect Social Security is complex, especially if you intend to keep working beyond age 62. While the prospect of “double-dipping” might seem appealing, several critical factors can impact your overall benefit, tax situation, and healthcare coverage. Here are the four big mistakes I often see: 1. Exceeding the Social Security Earnings Limit One of the biggest mistakes is not understanding the earnings limit set by Social Security for those who collect benefits before reaching their full retirement age (FRA). If you start taking benefits before your FRA, which currently ranges from 66 to 67 depending on your birth year, your benefits may be reduced if your annual earnings exceed a certain threshold. Before FRA: For every $2 you earn over this limit, Social Security will deduct $1 from your benefits. The year you reach FRA: The limit jumps to $62,160, but the calculation changes to $1 withheld for every $3 over the limit, and only the months before your birthday month are counted. After FRA, there is no longer an earnings cap; you can earn as much as you want without reducing your benefits. Failing to plan for these restrictions can lead to a surprise clawback, so calculate your annual income carefully if you plan to collect early. 2. Losing Eligibility to Contribute to an HSA If you're enrolled in a high-deductible health plan and are contributing to a Health Savings Account (HSA), be wary: Once you enroll for Social Security after age 65, you're automatically enrolled in Medicare Part A. By law, you cannot contribute to an HSA while on Medicare. To make matters more complex, Medicare Part A enrollment is retroactive up to six months, and any contributions made to your HSA during that period will be considered excess contributions, exposed to a 6% IRS penalty unless withdrawn in time. Before you trigger Social Security benefits, stop your HSA contributions (and your employer's) at least six months in advance to avoid penalties and the loss of valuable tax deductions. 3. Accidental Enrollment in Medicare Part B Some assume that enrolling in Medicare Part B is required or beneficial while they keep their employer coverage, but that's not always the case. If your employer has 20 or more employees and you're covered under their group health insurance, your employer's plan remains primary, and Medicare Part B is unnecessary and costly, with premiums starting at $185/month and higher for high earners. Enrolling in Part B during this period can limit your future ability to buy a Medigap policy with automatic acceptance (no health questions or exclusions for pre-existing conditions). Unless you're losing employer coverage, it's usually best to delay enrolling in Part B and carefully respond to any enrollment communications from Social Security. 4. Not Withholding Enough Taxes on Social Security Payments Social Security benefits are taxable for most retirees, especially if you're still working. You need to anticipate the added income and withhold sufficient federal (and potentially state) taxes to avoid underpayment penalties. You can file IRS Form W-4V to have Social Security withhold federal tax from each payment, choosing between 7%, 10%, 12%, and 22%. Alternatively, increase withholding at work or make estimated tax payments. Planning ahead ensures you won't face a large bill come tax time. Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact   Subscribe to Retire With Ryan

It's been announced that Warren Buffett is stepping down as CEO of Berkshire Hathaway. In this episode, I'll discuss Buffett's humble beginnings, his approach to investing, and the philosophy that built one of the most successful companies in history. I'll also break down Warren Buffett's wisdom into seven powerful, practical tips that align with my own approach to advising clients. Listen for tips on starting your investment journey early, staying the course during tough markets, and prioritizing temperament over intellect.  You will want to hear this episode if you are interested in... [00:00] Principles of Warren Buffett's investing strategies. [05:55] Buffett co-founded The Giving Pledge, pledging 99% of his wealth, and influencing other billionaires. [07:08] Berkshire Hathaway class A shares have averaged a 19% annual return since 1966, vastly outperforming the S&P 500's 11%. [12:41] Invest early, stay committed through market ups and downs, and be fearful when others are greedy and greedy when others are fearful. [17:03] Warren Buffett advises most people to use index funds due to the difficulty of replicating his results. [18:43] Make investment decisions based on facts, not emotions. Investment Lessons from Warren Buffett Warren Buffett, often called the “Oracle of Omaha,” has long been considered one of the greatest investors of all time. His recent announcement that he will step down as CEO of Berkshire Hathaway after more than six decades is the perfect time to reflect on what sets Buffett apart, not just as an investor but as an individual. This episode digs into key lessons from Buffett's life and career, exploring practical ways to apply his wisdom to your financial journey. From Humble Beginnings to Monumental Success Warren Buffett's rise didn't begin in a Wall Street boardroom, but in Omaha, Nebraska, where he was born in 1930. From an early age, Buffett showed an affinity for entrepreneurship, selling chewing gum, Coca-Cola, and magazines as a child. His formal education at the University of Nebraska, Wharton Business School, and Columbia University (where he studied under the legendary Benjamin Graham) laid the foundation for his value investing philosophy. Buffett started his first investment partnership in 1956 with $105,100, much of it from family and friends. By the age of 32, he was a millionaire. His acquisition of Berkshire Hathaway, a struggling textile company at the time, became the launchpad for one of the most successful investment conglomerates in history. The Power of Modesty and Discipline Despite amassing unparalleled wealth, Buffett is renowned for his modest lifestyle. He still lives in the house he purchased in 1958 for $31,000 and drives an older model Cadillac, proving that frugality and comfort often go hand in hand. This modesty is more than a quirk; it's a testament to his belief that wealth should serve a purpose beyond personal extravagance. Buffett's philanthropic efforts are equally legendary. Through The Giving Pledge (co-founded with Bill and Melinda Gates), he's committed to donating more than 99% of his fortune. For Buffett, investing is not just about making money, it's about stewarding resources responsibly and generously. Berkshire Hathaway's Long-Term Outperformance Under Buffett's leadership, Berkshire Hathaway's stock has delivered returns averaging 19% annually since 1966, trouncing the S&P 500's historical average of 11%. One share of Berkshire's Class A stock now costs nearly $800,000, a figure that tells the story of sustained outperformance. Buffett has also issued Class B shares at a lower price tag to democratize access for smaller investors, reflecting his desire to make wealth-building accessible. Buffett's Top Investing Lessons 1. Don't Lose Money Buffett's two most famous rules are simple: “Rule number one: don't lose money. Rule number two: don't forget rule number one.” He emphasizes buying quality businesses with durable competitive advantages rather than taking risks on struggling firms with unsustainable dividends. 2. Start Early and Stay the Course In his book The Snowball, Buffett likens investing to rolling a snowball down a long hill: the earlier you start, the bigger the results. Even if you're approaching retirement, encouraging the younger generation to invest early can yield enormous benefits over time. 3. Remaining Committed Through Market Ups and Downs is Equally Vital Buffett urges consistent investing, especially when markets are turbulent. Staying invested and buying during downturns can lead to significant long-term gains. 4. Be Fearful When Others Are Greedy Buffett's contrarian mindset, being “fearful when others are greedy, and greedy when others are fearful”, has served him well during market panics. While it's emotionally taxing to buy during selloffs, history shows that long-term investors are often rewarded. 5. Buy Great Companies at Fair Prices Rather than chasing bargains, focus on acquiring well-run businesses at reasonable valuations. Many of Buffett's best investments, Apple, Coca-Cola, and American Express, embody this approach. 6. Focus on Buying and Holding Low-cost Index Funds Buffett believes this is the simplest and most effective long-term investment strategy because it provides broad market exposure while keeping fees to a minimum, both of which are important for building wealth over time. 7. Temperament Is Key According to Buffett, success in investing is more about temperament than IQ. The ability to remain rational and stick to your plan, regardless of market noise, is what separates great investors from the rest. Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  The Snowball by Warren Buffett The Intelligent Investor: The Definitive Book on Value Investing by Benjamin Graham  The Giving Pledge  Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact   Subscribe to Retire With Ryan

On the show today, I'm discussing something that could be a game-changer for your retirement savings: Health Savings Accounts, or HSAs. If you're on a high deductible health plan, you might be eligible for this unique, triple tax-free account, but are you making the most of it? I'm sharing the top five mistakes people make with their HSA accounts. If not avoided, those mistakes can cost you serious money and limit your financial options later in life. I'm covering everything from choosing the right HSA provider to maximizing your investments within the account, tracking expenses, and even strategizing for retirement healthcare needs. Plus, I'll give you actionable tips to avoid these common pitfalls and explain how an HSA can function as a powerful retirement savings tool. You will want to hear this episode if you are interested in... [00:00 HSAs offer triple tax benefits for qualified health costs. [06:17] Transfer your HSA to invest funds instead of letting them sit idle. [08:36] Use a bucketing strategy for investments and allocate funds based on risk and term. [13:24] Use an HSA to reimburse for long-term care insurance, COBRA costs, and Medicare Part B, D, and Advantage after age 65. [14:31] An HSA is suitable for tax-free withdrawals post-retirement. The Triple Tax Advantage of HSAs Health Savings Accounts (HSAs) have grown in popularity steadily due to their unique triple tax advantage: contributions are tax-deductible, earnings grow tax-deferred, and qualified withdrawals are tax-free. If you're enrolled in a high-deductible health plan (HDHP), you're likely eligible for an HSA, and maximizing this account could significantly boost your retirement planning. However, many account holders fail to capitalize on the full benefits. Let's explore the most common (and costly) mistakes people make with their HSAs, and the steps you can take to avoid them. 1. Sticking with a Poor HSA Provider Not all HSA providers are created equal. A “good” provider offers diverse sets of low-cost investment options, competitive yields on cash balances, a user-friendly platform, and minimal fees. Unfortunately, many people end up with accounts that lack investment choices or charge unnecessary fees, simply because their employer picked the provider. The good news? You can transfer your HSA balance to a more flexible institution like Fidelity or Charles Schwab without penalty, even while still employed. Doing so could unlock better investment potential and higher earnings on your cash, making it well worth investigating your current provider's offerings and considering a move if they fall short. 2. Not Investing Your HSA Money Surprisingly, many HSA owners leave their funds idle in low- or no-interest accounts, missing years of tax-free growth. If you don't plan to spend your HSA funds soon, consider using a “bucket” approach: keep enough in cash or a money market for your deductible, and invest the remainder in stock or bond funds for long-term growth. Since medical expenses are rarely incurred all at once, investing your surplus funds can help your account grow exponentially, harnessing the power of compounding. Review your provider's investment options and allocate your HSA funds according to your risk tolerance and time horizon. 3. Failing to Max Out Contributions Because HSAs offer unbeatable tax benefits, it's wise to contribute as much as possible. For 2025, contribution limits are $4,300 for individuals and $8,550 for families, including employee and employer contributions. If you're 55 or older, you can contribute an extra $1,000 as a “catch-up” contribution. If you're married and you and your spouse are over 55, each spouse can make their own catch-up contribution, but you'll need separate accounts. Remember, you have until the tax filing deadline to make contributions for the previous year, giving you ample opportunity to reach the maximum annual limit. 4. Treating Your HSA Like a Checking Account Many people promptly spend their HSA funds on current medical expenses, inadvertently missing a powerful savings opportunity. Instead, consider paying for qualified medical costs out-of-pocket and letting your HSA investments grow. As long as you keep records of those qualified expenses, you can reimburse yourself tax-free at any point in the future, even years later. This allows your HSA to function much like a “stealth IRA,” providing tax-free growth and withdrawals for medical needs in retirement, when such expenses are likely to be higher. 5. Neglecting to Track Qualified Expenses To take advantage of delayed reimbursement, it's crucial to maintain careful records of out-of-pocket medical expenditures. The IRS can require documentation during an audit, so scan or save receipts and keep a running log in a spreadsheet. Good record-keeping ensures that, when the time comes, you can confidently withdraw HSA funds tax-free to reimburse yourself or cover eligible costs like Medicare premiums, long-term care insurance, and more once you reach retirement age. Make Your HSA Work Harder for You Used strategically, an HSA can become one of your most valuable retirement planning tools. By carefully choosing your provider, investing wisely, maximizing contributions, delaying withdrawals, and tracking all qualified expenses, you can fully realize the triple tax benefits and enjoy greater financial security in retirement. Take a moment today to review your HSA practices, your future self will thank you. Resources Mentioned Fidelity Charles Schwab.com Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact   Subscribe to Retire With Ryan  

Radio personality Dave Ramsey is a huge name in the personal finance niche. While he's celebrated for helping countless listeners take control of their finances, many of his recommendations have sparked debate within the financial planning community.  I'm going to break down six of the most controversial opinions promoted by Ramsey, including advice on retirement withdrawals, debt payoff strategies, Roth accounts, investing approaches, mortgages, and the use of credit cards. I will also weigh up the pros and cons of Ramsey's methods, highlighting where they might help and where they might hinder your journey towards a successful retirement.  Whether you're a Dave Ramsey fan or just curious about best practices for financial wellness, this episode offers a thoughtful, practical take on some hotly contested money moves. You will want to hear this episode if you're interested in... [0:00] Exploring Dave Ramsey's financial advice and when it might not work for you. [07:07] Contribute to your retirement plan to at least match company contributions while managing high-interest debt. [09:07] Prioritize pretax 401(k) contributions for potential tax savings and growth, especially for high earners and those nearing retirement. [13:57] Some active funds may outperform the market, but it's challenging. Paying off all debt immediately may not always be ideal. [17:43] The problem with cash or debit use and envelope budgeting to control spending and avoid debt. [20:11] Limiting credit card use could cause missed benefits. Debunking Controversial Dave Ramsey Financial Advice In the world of personal finance, few names are as recognized as Dave Ramsey. He's helped countless listeners reclaim control of their money, but not all his advice sits comfortably with financial professionals. This week, I'm exploring several of Ramsey's most controversial recommendations, offering candid insight into where these strategies may fall short for those planning a secure retirement. 1. The 8% Retirement Withdrawal Rule is Riskier Than It Seems Dave Ramsey suggests that retirees can safely withdraw 8% of their portfolio annually. He justifies this by assuming long-term market returns of 11-12%. The problem is that average long-term returns are generally projected in the 6-8% range, and those figures often require heavy equity exposure, something unsuitable for most retirees due to the risk of major market downturns. The more widely accepted “safe withdrawal rate” is between 4 and 5%, supported by decades of research. Relying on Ramsey's higher figure may rapidly deplete retirement savings, especially during bear markets. Retirees should consider their investment mix and plan for longevity, erring on the side of caution to avoid outliving their assets. 2. Pay Off Debt, But Not at the Expense of Retirement Savings One of Ramsey's hallmark principles is eliminating all debt before focusing on retirement contributions. While high-interest debt like credit cards should indeed be a priority, neglecting retirement savings, especially employer-matched 401(k) contributions, means missing out on invaluable compounding growth and free money from your employer. Ideally, individuals should strive for a balanced approach: aggressively tackle high-interest debt while contributing enough to their workplace retirement plan to secure the full employer match, and, if possible, work towards saving 10-20% of salary for retirement. 3. All Roth, All the Time? Not Necessarily Ramsey strongly favors Roth accounts for retirement savings, arguing that after-tax contributions and tax-free withdrawals offer valuable benefits. While Roth accounts can be powerful, particularly for young savers or those in lower tax brackets. For higher earners, often in their peak earning years, the upfront tax deduction of pre-tax 401(k) or IRA contributions can provide meaningful savings. Since many retirees drop into a lower tax bracket after leaving the workforce, traditional accounts can be more tax-efficient for certain households. Morrissey advises tailoring the choice to individual circumstances, considering both current and expected future tax rates. 4. Active vs. Passive Investing Ramsey promotes active mutual fund management and even suggests that up-front mutual fund commissions are worthwhile. In the last decade, though study after study has shown that most active fund managers fail to outperform inexpensive index (passive) funds after fees. With some actively managed mutual funds charging fees of over 1%, the compounding effect of those costs can dramatically diminish returns over decades. Passive investing, through low-cost index funds, allows investors to keep more of their money and often experience better outcomes. The same is true for mutual fund commissions; with so many no-load, low-fee options available, there's little justification for paying unnecessary charges. 5. Mortgage Payoff Strategies Ramsey encourages paying off all debt, including mortgages, as quickly as possible and recommends only taking out 15-year mortgages. While debt freedom is a worthy goal, for many, low-interest mortgage debt (especially at rates under 5%) isn't necessarily worth rushing to eliminate. Investing surplus funds in the stock market historically yields higher returns than today's mortgage rates. Additionally, restricting home purchases to what's affordable on a 15-year mortgage makes homeownership unattainable for many. It's more beneficial to keep total debt payments below 35% of gross income and focus on long-term wealth accumulation. 6. Ditching Credit Cards? Ramsey's final controversial opinion is to avoid credit cards altogether and rely instead on cash or debit. While this is a great strategy for habitual overspenders or those burdened by credit card debt. However, for disciplined users, credit cards offer valuable perks, such as travel rewards and cash back, often up to 2% or more. These rewards, when paired with responsible habits (paying off balances monthly), can add up to significant savings without the risk of debt. Dave Ramsey has helped millions move toward better financial habits, but some of his advice may not serve everyone equally well. There's no one-size-fits-all approach to money. Evaluating your financial landscape and consulting with a fiduciary professional are key steps toward making smart choices that truly align with your goals and circumstances. Resources Mentioned Dave Ramsey's Website A Total Money Makeover by Dave Ramsey Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact   Subscribe to Retire With Ryan

Welcome to a special milestone episode of Retire with Ryan! In this 250th episode, we're digging into one of the most frequently asked topics by listeners: Social Security. I answer four real-life listener questions about Social Security benefits - covering issues such as survivor benefits after divorce, spousal and ex-spousal benefit eligibility, changes to the Windfall Elimination Provision and Government Pension Offset, and rules for collecting benefits based on a former spouse's record.  I'm breaking down complex Social Security rules in an easy-to-understand way and sharing practical advice for retirees and those planning their dream retirement.  You'll want to hear this episode if you're interested in... [0:00] Access your free copy of my e-book Fiduciary at www.retirewithryan.com  [5:34] Divorced spouses have options for Social Security benefits based on age, remarriage status, and whether claiming their own or an ex-spouse's benefits [6:58] Earnings above $23,400 (ages 62 to full retirement) reduce Social Security benefits by $1 for every $2 over the limit. After reaching full retirement age, the reduction is $1 for every $3 over $62,160.  [10:07] If your ex-spouse dies before you file, you can use a restricted application, but ex-spousal benefits don't earn delayed credits. Wait until age 70 for a higher personal benefit. [14:38] The ten-year requirement for an ex-surviving spouse currently still stands unless  [15:54] If you have recently divorced and your spouse hasn't claimed benefits, then you have to wait two years until you can begin collecting benefits from your ex-spouse Navigating Social Security: Answers to the Most Common Questions for Retirees and Divorced Spouses Survivor Benefits for Divorced Spouses A question from Andrea regarding her mother's eligibility for survivor benefits after her father and his second wife passed away highlights the intricacies many face. The Social Security Administration (SSA) does provide certain protections for divorced spouses, but eligibility hinges on specific criteria: Marriage Duration: To claim an ex-spousal survivor benefit, the marriage must have lasted at least 10 years. Remarriage Restrictions: If remarriage occurs after the age of 60 (or 50 if the survivor is disabled), the survivor can still claim benefits from the former spouse. Earlier remarriage generally directs benefits to the new spouse. Age Requirements: Survivors can claim benefits as early as age 60 (or 50 if disabled), but waiting until reaching “full retirement age” (typically 67) means collecting the full survivor benefit (100% of the deceased's benefit). Early claims result in reduced monthly amounts. Earnings Limits: If a recipient claims before full retirement age and continues working, their benefits may be reduced if their income exceeds the annual limit ($23,400 in 2025). Survivor benefits application can't be completed online, applicants must call or visit their local SSA office. Myths, Realities, and the Restricted Application of Ex-Spousal Benefits Stephanie, a divorced listener, asked if she could claim a spousal benefit and later switch to her own higher benefit. This is a common idea, but it is rarely permitted in practice today. No “Restricted Application” Unless Widowed: Generally, ex-spouses can only claim the higher of their benefit or up to 50% of their ex-spouse's benefit if the ex is alive. The “restricted application” (where you claim one benefit first and then switch later) is only available to widows or widowers, not to those whose ex-spouses are still living. Delaying for More: Your benefits do grow (8% per year between full retirement age and 70). However, survivor and spousal benefits don't accrue these “delayed retirement credits”; there's no advantage to waiting past full retirement age to claim them. Earnings Matter: Like survivor benefits, earnings above the income limits before full retirement age can result in reductions. The Social Security Fairness Act and New Opportunities Recent legislative updates, like the Social Security Fairness Act, have had a profound impact, especially for those affected by the Windfall Elimination Provision (WEP) or Government Pension Offset (GPO). Retirees such as teachers, firefighters, and some government workers previously saw reductions in their Social Security due to pensions received from non-Social Security-taxed jobs.  The Key Change is that WEP/GPO was repealed, and anyone affected can now claim full Social Security benefits. Most should already see retroactive and increased monthly payments. If you've not yet applied, check if you now qualify, the hurdles may have vanished! When Can You Claim on an Ex-Spouse's Record? Donna's inquiry emphasizes a lesser-known rule: If the divorce is recent and the ex-spouse hasn't claimed benefits, one must wait two years to claim on the ex's record unless the ex starts claiming earlier. For divorces older than two years, you can generally proceed without waiting. Those under full retirement age must ensure their income doesn't result in reduced payments. Social Security remains complex, especially during life events such as divorce, remarriage, death, or career changes. The rules can and do change, and representatives aren't infallible. If you suspect your situation is unique or you've been misinformed, it pays to contact the SSA or consult a trusted financial advisor. Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  How the Social Security Fairness Act Could Positively Impact Your Retirement, #236  Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact   Subscribe to Retire With Ryan

This time, we're featuring financial insights from co-host Ryan Morrissey, who's here to help you navigate this turbulent financial landscape. We'll explore the recent volatility sparked by President Trump's tariff announcements and discuss the remarkable market rebound that followed. Ryan also lays out six strategic moves you can make to optimize your investment strategy during these downturns, whether it's buying the dip, rebalancing your portfolio, or taking advantage of tax efficiencies. Stay tuned for valuable tactics and practical advice to bolster your financial well-being and prepare for a successful retirement. Let's get started with Retire with Ryan! You will want to hear this episode if you are interested in... [0:00] Suggested market strategies for navigating a down market [5:45] Invest early in Roth IRA, IRA, HSA, and 529 accounts to capitalize on market declines and potential growth. [6:46] Rebalance your portfolio regularly to maintain target allocation and capitalize on market shifts without overthinking decisions. [8:37] Set your savings up so you put a certain amount in every month to take advantage of dollar cost averaging. [9:01] Cut your losses and sell underperforming investments [10:41] How to take advantage of tax losses inside your taxable investment accounts [15:00] Consider replacing mutual funds with ETFs for better tax efficiency when the market is down for long-term benefits. Smart Investment Moves to Leverage Stock Market Declines Market volatility is not uncommon, but it can be nerve-wracking for investors. Yet, as seasoned investor Warren Buffett famously said, "Be fearful when others are greedy, and greedy when others are fearful." In times of market downturn, opportunities abound for those who know where to look. Here's a breakdown of six strategic moves you can make to take advantage of a down market: 1. Buy the Dip When markets decline significantly, it presents a unique buying opportunity. This strategy involves purchasing stocks when their prices are lower than usual, positioning yourself to benefit when prices rebound. It's important to remember that timing the market perfectly is nearly impossible, but by entering a 10% decline or more, you're likely to see gains as the market recovers. This can also be a great time to maximize your contributions to your IRA, Roth IRA, or HSA to take full advantage of the opportunity. 2. Rebalance Your Portfolio Portfolio rebalancing is crucial for maintaining your desired asset allocation, especially after market fluctuations. For instance, market dips might skew this balance if your target is a 60/40 stock-to-bond ratio. Rebalancing during market declines can ensure the original allocation is restored and takes advantage of lower stock prices. 3. Automate Your Investments Automating investments ensures consistent contributions to your portfolio, regardless of market conditions. Dollar-cost averaging mitigates the risks associated with market volatility. Whether through a 401(k), IRA, or other investment accounts, setting up automatic contributions allows you to buy into the market regularly without second-guessing the timing. 4. Sell Underperforming Investments Market downturns clarify which investments are not worth holding onto. If individual stocks or mutual funds consistently underperform, it may be time to cut losses and reinvest the capital into more promising assets. Clearing these underperformers cleans up your portfolio and allows you to focus on investments with better potential. 5. Harvest Tax Losses Down markets offer a chance to engage in tax-loss harvesting. Selling securities at a loss can offset taxable gains from other investments, reducing your tax liability. Additionally, you can claim up to $3,000 in capital losses against your ordinary income each year. When using this strategy, be mindful of the wash sale rule, which prohibits repurchasing the same or substantially identical security within 30 days to claim the tax loss. 6. Transition to Tax-Efficient Investments During a market downturn, re-evaluating your taxable investment accounts for tax efficiency can be advantageous. Mutual funds often distribute capital gains annually, potentially increasing your tax bill even if you haven't sold your shares. Consider exchanging mutual funds for exchange-traded funds (ETFs), which typically offer greater tax efficiency by limiting capital gains distributions to shareholders until shares are sold. While market downturns can be daunting, they provide excellent opportunities for investors to reshuffle their portfolios strategically. You can navigate market volatility and improve your financial health by buying the dip, rebalancing, automating investments, selling underperformers, harvesting tax losses, and transitioning to tax-efficient investments. Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact   Subscribe to Retire With Ryan

As you get closer to the age of 73, it's more and more important to understand the financial strategies you can use to avoid a "tax tsunami" or "tax bomb." In this episode, I break down the basics of RMDs, explaining how they are calculated and the importance of planning ahead. You'll want to make a note of these four key strategies to reduce your RMDs and ensure a smoother financial journey as you transition into retirement.  From starting withdrawals before the age threshold to considering Roth conversions and qualified charitable distributions, we share practical insights to help you navigate these financial waters. You will want to hear this episode if you are interested in... (0:00) How to avoid a huge tax burden if you plan to work beyond 73 years of age (2:21) Please rate and review the Retire with Ryan podcast! (3:59) RMDs start at age 73 unless working past that age with less than 10% company ownership (9:02) Plan your IRA distributions considering tax implications (11:52) Consider a Roth conversion by moving pre-tax retirement funds to a Roth IRA (17:54) Use annuities for stable retirement income (18:59) Investigate using a QLAC to reduce RMDs, manage taxes, and provide additional income in old age Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

In this episode, I address listener concerns about the future of Social Security, especially given recent changes under President Trump's administration and the involvement of the Department of Government Efficiency (Doge).  I'll dive into the current state of Social Security, the potential impact on your benefits, and how you can maximize those benefits moving forward. With solvency concerns looming, I'll help you better understand what's at stake and how to make smart decisions for your retirement. You will want to hear this episode if you are interested in... (0:00) Can Elon Musk and Doge Take Away My Social Security Benefit? (1:33) Please rate and review the Retire with Ryan podcast! (2:21) What is Doge and how it could impact Social Security (3:55) The role of Congress in controlling Social Security (5:38) What is the future of Social Security solvency? (8:26) Why waiting to collect Social Security could increase your benefits (10:20) The earnings limits when collecting Social Security early Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

In this episode of Retire with Ryan, I'm talking about the growing threat of smishing, a type of phishing scam where fraudulent text messages try to trick you into revealing personal information like your social security number, bank account details, or credit card information. I'll explain how these scams are targeting individuals like you and share some important tips on how to protect your phone and investment accounts from being compromised. It's crucial to stay informed and secure, and I'm here to help you navigate these risks. You will want to hear this episode if you are interested in... (0:00) Introduction to smishing and FBI warning (0:51) How smishing scams are growing and affecting individuals (1:42) Please review the podcast on Apple or Spotify (2:41) Real-life examples of smishing attacks Ryan has encountered (3:53) Identifying fraudulent links and avoiding them (5:56) What to do if you've clicked on a fraudulent link (7:20) Tips to protect your phone and investment accounts (9:53) Signs that your phone has been compromised (11:33) Two-factor authentication and securing your accounts Resources Mentioned File a complaint at https://www.ic3.gov/ Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact   Subscribe to Retire With Ryan

Maximizing your retirement plan contributions is one of the most powerful ways I can help you secure your financial future. As we near the end of the first quarter of 2025, it's the perfect time to review your contributions. In this episode, I break down how you can ensure you're contributing the maximum allowable amount and why it's essential to do so. I explain how to calculate your contribution limits based on your salary and pay frequency, so you can easily determine how much you should be setting aside per pay period.  If you haven't adjusted your contributions for the year, don't worry—I'll walk you through how to quickly get back on track to ensure you're maximizing your retirement plan. By taking action now, you can set yourself up for greater savings down the road. You will want to hear this episode if you are interested in... (0:00) The importance of maximizing retirement contributions (3:21) How to calculate maximum contributions for those under 50 (6:50) How catch-up contributions for individuals over 50 (and how to maximize these) (8:12) A new super catch-up provision for those aged 60-63 under the Secure Act 2.0 (9:34) Employer matching contributions and how they fit into your total contribution limit (12:03) How to convert after-tax contributions to Roth accounts to maximize growth (14:55) The advantages of using a taxable brokerage account for additional savings Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

What's the best way to protect your retirement savings when the market feels unpredictable? In today's episode of Retire with Ryan, I cover the growing uncertainty caused by political decisions and how they affect your investments.  From tariffs to immigration changes and government cutbacks, I'll share insights on how to navigate this volatility and keep your portfolio secure. Whether you're nearing retirement or already there, this episode will provide actionable steps to ensure your investments remain on track despite external economic pressures. You will want to hear this episode if you are interested in... (0:56) Market volatility and economic impact (1:30) Check out Retirement Readiness Review (2:19) Insights from a J.P. Morgan conference call (4:37) Tariffs and their economic effects (6:31) The labor market and immigration policies (8:13) Government cutbacks and their impact (9:17) What you should do with your investments Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

In this episode, I dive into the latest developments with the Social Security Fairness Act and what these changes mean for retirees who were previously ineligible for Social Security benefits. With potential increases in payments and retroactive benefits, this episode is packed with critical insights for anyone impacted by the new law. I break down real-world examples to show exactly how these changes will affect individuals—particularly teachers, former public employees, and those with pensions exempt from Social Security. Whether you're waiting for retroactive benefits or trying to understand the tax implications, I've got you covered with the essential information you need. You will want to hear this episode if you are interested in... (1:07) Changes to the Social Security Fairness Act (2:57) Benefits and retroactive payments (5:05) How the Social Security Fairness Act works (6:52) How the spousal benefit works (6:30) How the new law will impact retirees (11:32) How survivor benefits now work (14:05) The impact of the Windfall Elimination Provision  (15:16) What do you need to do?  (16:57) How Social Security benefits are taxed Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  Social Security Fairness Act: Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) update Apply for Social Security at https://www.ssa.gov/myaccount/ Episode #217: Will Social Security Become Tax-Free?  Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

What is the best way to access equity in your home for retirement income? In this episode of Retire with Ryan, host Ryan Morrissey is joined by Mitch Cooper, a Certified Reverse Mortgage Professional with Mutual of Omaha, to explore this very question.  Mitch returns to the show to share his expertise on reverse mortgages, a powerful tool that allows retirees to tap into the equity of their homes without having to sell. Whether you're considering this option for supplemental income or simply want to understand how it works compared to other alternatives like home equity loans, this episode provides valuable insights into how reverse mortgages can help secure your financial future in retirement. You will want to hear this episode if you are interested in... (0:00) Learn more about Mitch Cooper, a Certified Reverse Mortgage Professional (0:53) What is the best way to access equity in your home for retirement income? (2:25) How reverse mortgages differ from home equity loans and lines of credit (5:41) Requirements and eligibility for reverse mortgages, including age and equity (7:41) The impact of interest rates on reverse mortgage loan amounts (8:45) The protections offered by reverse mortgages, including the non-recourse nature (10:36) Other requirements for obtaining a reverse mortgage  (16:06) Comparing reverse mortgages to annuities and their role as longevity insurance (25:14) How closing costs work with a reverse mortgage (30:36) The process of obtaining a reverse mortgage Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  The National Reserve Mortgage Lending Association Mitch Cooper (Mutual of Omaha)  Connect with Mitch on LinkedIn Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

In this episode of Retire with Ryan, we're diving into the ins and outs of 1031 Exchanges with expert Eric Brecher. As Executive Vice President at the Chicago Deferred Exchange Company, Eric brings years of experience in navigating this complex IRS provision, which allows real estate investors to defer capital gains taxes when selling property.  If you're interested in real estate investments and the potential tax advantages that come with them, this episode is a must-listen. Eric explains everything from the basics of a 1031 Exchange to key strategies, common pitfalls, and the crucial role of a Qualified Intermediary. You will want to hear this episode if you are interested in... [0:52] What is a 1031 property exchange provision?  [6:44] The 4 key requirements for a 1031 exchange [9:13] The role of the qualified intermediary [16:09] Common mistakes and misconceptions [26:32] The three property rule [32:28] The role of the qualified intermediary [35:34] Other need-to-know details Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

When it comes to retirement plans, the general rule is that you can't access funds in your retirement account(s), without penalty, until age 59 ½. If you withdraw funds prior to 59 ½, you'll get hit with a 10% penalty and income tax (if coming from a non-Roth account). But there are some instances in which you can make withdrawals penalty-free. We'll dive into this in this episode of Retire with Ryan. You will want to hear this episode if you are interested in... [0:55] Why you should hire a fee-only financial advisor  [2:32] When can you access retirement accounts?  [3:20] Way #1: Pay for unreimbursed medical expenses [4:18] Way #2: If you become disabled  [4:53] Way #3: Pay for health insurance premiums [5:43] Way #4: Death [6:23] Way #5: Pay debt to the IRS [6:50] Way #6: First-time home buyer [7:34] Way #7: Higher education expenses [8:31] Way #8: Substantial and equal payments [9:52] Way #9: Terminal illness  [10:19] Way #10: Separation of service  Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  Getting Emergy Money from Your 401K Breaking Down the IRS's New Finalized Regulations on Inherited Retirement Accounts Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

Will AI stocks like NVIDIA continue their meteoric rise, or are we heading toward a market correction? What do recent Federal Reserve decisions mean for your investments and mortgage rates? And is it time to reconsider small-cap stocks?  In this episode, I sit down with Michael Collins, CEO of WinCap Financial, to tackle the biggest financial trends of 2025. We discuss the future of AI-driven investing, the Federal Reserve's impact on interest rates, and whether large-cap stocks will remain dominant. This episode is a must-listen! You will want to hear this episode if you are interested in... (0:00) Introducing Michael Collins: CEO of WinCap Financial and finance educator (2:40) AI and NVIDIA: Will new competition shake up the market? (5:50) The usefulness of AI for businesses  (7:24) How NVIDIA dominates the S&P 500 (and what that means for investors) (9:36) Will the Fed lower interest rates? (12:47) Will homebuyers see lower mortgage rates? (20:18) The future of large-cap vs. small-cap investing (24:52) Bitcoin, the Fed, and risky government investments Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  DeepSeek Michael Collins WinCap Financial  Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

In an ideal world, everyone should aim to keep 3–6 months of living expenses in an emergency fund. But let's face it—building that kind of safety net isn't always easy. For many pre-retirees, most savings are tied up in retirement accounts, leaving limited options for unexpected expenses. So, what can you do if an emergency arises? In today's episode, I'll walk you through how to access emergency funds from your 401(k) and explore strategies to help you stay prepared for life's unexpected challenges. You will want to hear this episode if you are interested in... [0:53] Do you have an emergency fund? [1:35] Why you should hire a financial advisor [2:38] The new IRS rule allowing withdrawals  [3:59] The requirements for withdrawal [4:32] What are the drawbacks? [5:08] Why you should build your emergency fund  Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact   Subscribe to Retire With Ryan

If you retire early (before 65), you're too young to qualify for Medicare. So what are your health insurance options? In this episode of Retire with Ryan, I'll address five different options you have to get health insurance. I'll also share some ways you can lower the cost of your premiums to keep coverage affordable until you qualify for Medicare.  You will want to hear this episode if you are interested in... [1:01] Health insurance options if you retire early [3:03] Option #1: Don't get health insurance [4:11] Option #2: See if you qualify for Medicaid  [5:38] Option #3: Get on COBRA [7:46] Option #4: Investigate individual plans [8:57] Option #5: Get a plan through the ACA [12:36] How can you save money on premiums? [14:53] What is the biggest unknown? Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  Healthcare.gov Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

President Biden recently signed the Social Security Fairness Act into law, bringing significant changes to Social Security benefits for millions of public school teachers and former public employees. This new legislation eliminates provisions that previously reduced or limited their benefits. In this episode, I'll break down how the bill works, who it impacts, what it means for you, and what steps you need to take to claim any additional benefits you may be eligible for. You will want to hear this episode if you are interested in... [0:45] Social Security Fairness Act [1:24] Download my new book for FREE [2:22] What is the Social Security Fairness Act? [6:27] When does this go into effect?  [7:00] How can this benefit you?  [10:37] How the survivor benefit will work  [12:46] Do you need to do anything?  Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  Social Security Fairness Act Re: Provisions Millions of Public Workers to get Higher Social Security Benefits Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

Happy New Year! As we step into 2025, it's time to reflect on the lessons of the past year and anticipate what's ahead. In this episode, I take a deep dive into my 2024 market predictions—where I was right, where I went wrong, and the key takeaways to help guide your investment decisions moving forward. The S&P 500 delivered a remarkable 23.8% return, Bitcoin soared by 121%, and interest rates shifted more than expected. How did these compare to my forecasts? I'll share the details and insights that shaped last year's performance. Then, we'll turn our focus to 2025, where I outline predictions for major asset classes, the S&P 500, interest rates, and the ongoing battle between Gold and Bitcoin. You will want to hear this episode if you are interested in... [0:45] Happy New Year! [2:21] Prediction #1: The S&P 500 will have positive returns [4:58] Prediction #2: Growth stocks will lead the market [7:35] Prediction #3: Small caps would outperform large caps [9:35] Prediction #4: Gold would outperform bitcoin  [11:42] Prediction #5: Domestic stocks would outperform international stocks [14:04] Prediction #6: We'd see two rate cuts and interest rates of 4.75% [16:28] My 2025 stock market predictions  Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE  Episode #183: 6 Market Predictions for 2024 Episode #116: 7 Best Short-Term Investments To Grow Your Money SPDR® Portfolio S&P 500® ETF SPDR® Portfolio Developed World ex-US ETF iShares Bitcoin Trust ETF Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

In this episode, I'm joined by Larry Swedroe, a thought leader in evidence-based investing and former Chief Research Officer at Buckingham Strategic Wealth. Larry has authored over 18 books that have shaped the way people think about personal finance, and now, after 28 years in the industry, he's sharing the most valuable lessons he's learned in retirement planning and investing. In this episode, we dive into his latest book, Enrich Your Future: Keys to Successful Investing. Through 40 captivating stories, Larry exposes the myths and misconceptions that many investors hold, often perpetuated by Wall Street, and replaces them with clear, actionable strategies.  From understanding how overconfidence derails financial success to learning how to balance risk as you approach retirement, this conversation offers invaluable guidance for anyone looking to achieve financial independence. You will want to hear this episode if you are interested in... [1:33] Larry's process for writing a book [7:33] How the industry has embraced passive investing [17:19] Using tennis to explain the difficulties of active management [21:20] Why do we think we can outperform the market?  [26:57] What approach is prudent for most people? [30:08] Should retirees focus on dividend-producing investments?  [35:02] How to determine the amount of risk to take in your portfolio [39:23] Diving into the concept of indexed annuities  Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Connect with Larry Swedroe on LinkedIn The Only Guide to a Winning Investment Strategy You'll Ever Need Think, Act, and Invest Like Warren Buffett Your Complete Guide to a Successful and Secure Retirement Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

Happy Holidays and welcome to a special Christmas Eve episode of Retire with Ryan! To celebrate the season, I'm embracing the holiday spirit with a financial twist on the iconic Christmas movie, Home Alone. This 1990 classic has become a Christmas staple, featuring young Kevin McCallister, who's accidentally left behind while his family flies to Paris for Christmas vacation. Armed with creativity and courage, Kevin outsmarts two bumbling burglars with a series of clever traps before his family returns home. But today, I'm looking at Home Alone through a different lens. As your financial advisor, I'll break down the McCallister family's finances. How rich were they? What would their stunning Chicago home be worth today? And what kind of jobs could support such a luxurious lifestyle? With a budget of just $18 million, Home Alone has grossed nearly $500 million worldwide—and I've probably contributed to that total with how many times I've rewatched it! So, grab some eggnog, settle in by the fire, and let's explore the McCallister family's financial plan. You will want to hear this episode if you are interested in... [1:25] Sign up for my weekly newsletter and get a free chapter of my book! [3:19] How much is the McCallister house worth?  [5:19] Calculating how much the McCallisters made  [7:48] What did the McCallisters pay in taxes? [10:47] What was their cashflow?  [13:13] College costs for a family of five [15:03] How much are they saving for retirement? [18:43] Did the family have life insurance?  [19:36] The type of estate planning they had Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel How Rich Were the McCallisters? Historical 401K Limits Details about Home Alone The McCallister House on Realtor.com Home Alone Fan Speculations A Brief History of the 401K Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact   Subscribe to Retire With Ryan

How can an annuity help you secure income in retirement? Annuities often come with a reputation for being complicated, expensive, and overhyped—but they aren't one-size-fits-all. The truth is, while they're not the best solution for everyone, there are situations where they can provide the guaranteed monthly income some retirees need.  In this episode, I'm joined by Andy Panko, CFP®, RICP®, EA, and President of Tenon Financial. Together, we'll cut through the confusion and explore when an annuity might actually be the right fit for your retirement strategy. You will want to hear this episode if you are interested in... [1:40] Two ways to generate income in retirement [3:07] Real-life scenario: When you might want an annuity [12:36] How an indexed annuity works  [16:39] Do annuities have inflation adjustments?  [20:13] Calculating the rate of return [23:42] Why a good financial advisor is important Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Tenon Financial Andy Panko on LinkedIn The 7 Myths About Indexed Universal Life Insurance  ImmediateAnnuities.com  Financial Planning Association Charles Schwab Income Annuity Calculator  Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

Last year, Americans donated $558 million to charities. 69% of those donations come from individuals. They also donated 4.1 billion hours to charities.  If you are someone making a donation to a charity, you need to know how they can help you reduce your taxes. One way to do that is through a donor-advised fund.  What is a donor-advised fund? How does it work? Should you consider using one for charitable giving? I'll cover the details in this episode.  You will want to hear this episode if you are interested in... [1:39] Sign up for my newsletter at RetireWithRyan.com [3:05] What is a donor-advised fund? [4:51] How is this different from other contributions? [5:51] Who should consider a donor-advised fund?  [10:15] Who offers donor-advised funds? [11:05] Pros/cons of donor-advised funds [12:40] Additional benefits of using a donor-advised fund [13:27] How to choose the right charity [14:34] What are your next steps? Resources Mentioned Sign up for my newsletter at RetireWithRyan.com Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Charity Navigator Pros and Cons of Donor-Advised Funds Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact   Subscribe to Retire With Ryan

What could a Trump White House and Republican-controlled Congress mean for your finances? In this episode, we break down the potential tax changes—from individual tax brackets to business deductions and state taxes—that could impact your bottom line. Tune in to understand the areas with low, moderate, and high potential for change and what steps you should consider if you live in a high-tax state. You will want to hear this episode if you are interested in... [1:19] Sign up for my weekly newsletter  [2:28] Area of low potential for changes  [4:25] Area of moderate potential for changes  [10:05] Area of high potential for changes  [14:18] What to do if you're in a high-tax state 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

How does Medicare Open Enrollment work? Do you need a supplement plan? How do you choose between a Medigap or Medicare Advantage plan? Navigating these questions can be overwhelming. That's why Danielle Roberts—co-founder of Boomer Benefits and the author of “10 Costly Medicare Mistakes You Can't Afford to Make”—joins me in this episode to help you avoid common pitfalls during Medicare Open Enrollment. You will want to hear this episode if you are interested in... [1:42] How Medicare open enrollment works [3:45] Do you need a supplemental plan?  [5:13] How CMS changes impact plans [9:37] Comparing Medigap vs Medicare Advantage [12:41] The typical annual rate increase [15:21] How Medigap plans work when you move [16:12] When to choose a Medicare Advantage plan [19:34] How Medicare Part D works [21:38] How to choose between Medigap vs Advantage plans [24:06] How to choose a broker to work with [27:05] Start researching your Medicare options early [28:06] How to get a free copy of Danielle's book Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel 10 Costly Medicare Mistakes You Can't Afford to Make Boomer Benefits 2025 Medicare IRMAA Surcharge Updates, #228 Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

On November 8th, 2024, Medicare announced that in 2025, Medicare Part B will cost $185 per month per person—an increase of about $10.30 from 2024. Keep in mind, if your income is above a certain point, you'll have to pay an “Income-Related Monthly Adjusted Amount,” or “IRMAA” tax. Is there a way to avoid paying the IRMAA surcharge? I share some strategies in this episode of Retire with Ryan. You will want to hear this episode if you are interested in... [1:25] How to get a FREE copy of “10 Costly Medicare Mistakes”  [2:20] The cost of Medicare Parts A, B, and D in 2025 [4:26] When you would pay a higher Medicare premium  [8:32] What you can do to appeal the IRMAA Surcharge  [10:02] What you can do to avoid the IRMAA Surcharge  Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel 2025 Medicare Parts A & B Premiums and Deductibles Form SSA-44: Medicare Income-Related Monthly Adjustment Amount Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

In this episode, we're diving into the often-overlooked tax benefits of 529 plans. Most people know that 529 plans can help cover college expenses, but there are other valuable perks beyond just tuition savings.  From paying down student loans to making the most of tax deferral advantages, this episode breaks down five key tax benefits you may not be aware of. Let me help you maximize the potential of your 529 plan.  You will want to hear this episode if you are interested in... [1:39] What are 529 plans?  [3:04] Repaying student loans [4:14] Covering K-12 expenses [5:20] Tax deferral  [8:10] Roth conversion [12:40] Potential state tax deductions Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel How To Complete a Fidelity 529 To Roth IRA Rollover 6 Ways To Use An Old CHET 529 Plan Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

The S&P 500 is having another stellar year, yet small-cap stocks—representing the smallest publicly traded companies in the United States—haven't performed as well. While this might seem like a downside, it can also present unique opportunities for investors. In this episode, we'll dive into the pros and cons of investing in small-cap stocks, the potential growth they offer, and how you can get started. You will want to hear this episode if you are interested in... [0:51] Should you consider investing in small-caps?  [1:59] What are small-cap stocks?  [3:28] Pros and cons of small-cap stocks [5:00] The growth potential of small can stocks [7:03] Why is there a projected turnaround?  [8:23] How do you invest in small-cap stocks? [11:17] How to invest in value stocks Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Is the small-cap Premium Dead? The Russell 2,000 The S&P 600 VB Vanguard small-cap S&P Index IJR ETF SPSM SLYV Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

The 2024 election is just days away, and soon you'll have your final chance to cast your vote. With so much at stake, many are anxious about how the markets might respond based on who takes the White House. In this episode of Retire with Ryan, I'll dive into what we could expect from a Trump or Harris presidency—and explain why, no matter the outcome, it shouldn't drastically change your investment strategy. You will want to hear this episode if you are interested in... [2:37] The state of the Presidential election [6:00] How the stock market is impacted [6:50] How will a Harris presidency impact the market?  [8:01] How will a Trump presidency impact the market?  [12:57] Nothing will fundamentally change how you invest Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel State Street Global Advisors   Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

In some states, probate is avoidable. However, in many states, you can avoid having your estate go through the probate process. I recently went through the probate process when my grandfather passed away and I helped my father settle his estate. It is far easier for your family to settle your estate once you're gone if it doesn't go through probate. So, in this episode, I'll cover 7 things you can do to keep your estate from landing in probate. You will want to hear this episode if you are interested in... [1:57] Settling my grandfather's estate [4:06] Tip #1: Give things away while you're alive [5:50] Tip #2: Own your real estate jointly [7:16] Tip #3: Joint ownership for non-real-estate [9:43] Tip #4: Use a “Payable Upon Death” account  [11:46] Tip #5: Designate beneficiaries on accounts [13:07] Tip #6: Designate a beneficiary for vehicles [13:52] Tip #7: Create a living trust [16:27] Probate is unavoidable in many states Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Federal gift tax allowance Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact   Subscribe to Retire With Ryan

Protecting your finances from hackers is more critical than ever. Cybercriminals are getting more sophisticated, accessing sensitive information like social security numbers and attempting to steal directly from financial accounts. I recently experienced this firsthand when someone impersonated one of my clients. The fraudster knew my client's social security number and tried to withdraw funds under the guise of an emergency.  Fortunately, we were suspicious and confirmed the scam before any money was lost. This encounter highlights the importance of being proactive about securing your accounts. That's why, in this episode, I'll share seven essential steps to protect your Schwab accounts from hackers. You will want to hear this episode if you are interested in... [1:22] Join a live in-person retirement readiness workshop or sign up online [1:56] What happened when a hacker tried to access a client's account? [3:37] Step #1: Make sure your email is secure [5:00] Step #1: Protect your passwords [5:56] Step #3: Keep your web browser up to date [6:48] Step #4: Set up online access to your accounts [9:30] Step #5: Turn on alerts on your Schwab accounts [12:31] Step #6: Monitor your monthly statements for suspicious activity [13:11] Step #7: If you've been hacked, call Schwab 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

Age 59 ½ is the magic age at which you can start taking distributions from retirement accounts without a penalty. This listener is wondering if he can convert part of his IRA to a Roth IRA even though he's not 59 ½. And if he goes ahead with the conversion, will it be subject to the 10% penalty? Listen to this episode to find out. You will want to hear this episode if you are interested in... [1:09] Attend a Retirement Readiness Review Workshop [2:26] The basics of a Roth IRA/Roth conversion [5:18] The first way you can do a Roth conversion [8:20] How to do a conversion with an existing IRA [9:00] What can be converted to a Roth IRA? [9:45] When a Roth conversion makes sense 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

It can be overwhelming to think about what you can do to minimize your tax burden. That's why, in last week's episode, we covered 7 year-end tax moves for retirees. This week, we'll tackle what those nearing retirement need to dive into at the end of every calendar year. We all need to be mindful of how our decisions impact our tax burden and this is a great place to start!  You will want to hear this episode if you are interested in... [1:16] Tip #1: Maximum your contributions to your retirement plans [4:05] Tip #2: Consider a Mega Backdoor Roth IRA  [7:30] Tip #3: Do a Roth conversion  [11:52] Tip #4: Make charitable contributions  [14:15] Tip #5: Exercise non-qualified stock options  [15:07] Tip #6: Max out your FSA contributions  [17:14] Tip #7: Max out your HSA contributions 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

Tax planning—and anything related to taxes, in general—isn't most people's favorite topic. But because we're getting toward the end of the year, it's actually a great time to think about tax planning and all of its benefits. In this episode of Retire with Ryan, I'll share 7 things you should think about that can (and will) help save you money in retirement.  You will want to hear this episode if you are interested in... [1:17] Check out my course: Retirement Readiness Review [2:14] Tip #1: Look at your Social Security taxes [3:57] Tip #2: Watch your income once you go on Medicare [6:37] Tip #3: Consider doing a Roth conversion [11:18] Tip #4: Take a close look at required minimum distributions  [13:06] Tip #5: Think about capital gains and losses  [14:09] Tip #6: Pay the correct taxes to the IRS  [15:07] Tip #7: Look at your state's income tax breaks  Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Will Social Security Become Tax-Free? IRS Update For Inherited IRAs and Roth IRAs Low Tax Burden States Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

You've likely spent your entire lifetime saving for retirement. How do you make sure the money lasts as long as you do? How do you make sure you enjoy your retirement? It's a balancing act for which there may be a solution.  Matthew Jarvis is a Financial Advisor who runs Jarvis Financial, located in Seattle, WA. He's also the host of the podcast “The Perfect RA” and the author of the book “Delivering Massive Value.”  In this episode of Retire with Ryan, Matthew discusses the concept of retirement guardrails, how they work, and who they're for. If you're looking for a spending strategy that often leads to a successful retirement, this episode is for you.  You will want to hear this episode if you are interested in... [0:56] Introducing this week's guest, Matthew Jarvis [1:55] The big problems with the 4% rule [3:59] Why Matthew uses retirement guardrails  [8:02] What if you can't afford retirement guardrails?  [10:20] How guardrails work for you  [12:51] How frequently you should evaluate your guardrails  [18:29] The five-year war chest [22:46] Who is the strategy for? [25:06] Don't be afraid to get a second opinion Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel BOOK: Delivering Massive Value The Perfect RIA podcast Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

How much money do you need to save for retirement? $500,000? $2 million? The answer will never be the same. It's specific to you. So how do you figure it out? In this episode of Retire with Ryan, I'll share five steps you can follow to determine how much you need to retire.  You will want to hear this episode if you are interested in... [1:25] Step #1: Calculate your budget for retirement [4:11] Step #2: Calculate what you'll receive from Social Security [5:10] Step #3: Are you eligible for a pension? [5:40] Step #4: Will you have any other income sources? [6:27] Step #5: Look at your investments to see what you can withdraw [9:28] Go through this exercise to determine exactly what you need Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Get a FREE budget template on my website Check out all of my episodes on Medicare Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

Could Social Security become tax-free? As the political scene heats up leading up to the 2024 Presidential Elections, and both candidates make their case for election, the topic of taxation has come up. Former President Trump has promised that Social Security won't be taxed if he's elected. What could that mean for you? How is it currently taxed? I cover the details in this episode of Retire with Ryan.  You will want to hear this episode if you are interested in... [1:35] How to get a copy of my new book! [2:20] The potential impact of Social Security not being taxed [4:50] I don't believe we'll see it happen: here's why [5:52] How Social Security is currently taxed Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Fiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial Advisor Episode #206: Is Social Security Going Broke?  Income Taxes and Your Social Security Benefit Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

Did you take out a parent PLUS loan or private loan to help your kids pay for college? Are you still struggling to pay off those loans?  According to StudentAid.gov, over 9 million people over 50 have student loan debt. Of those, over 1 million have loan balances north of $100,000.  If you're nearing retirement, the last thing you want on your plate is student debt. In this episode of Retire with Ryan, Erik Kroll shares the best way to manage student loan repayment. You will want to hear this episode if you are interested in... [2:17] The different types of Federal student loans  [5:32] Private loans versus PLUS loans [8:07] The forgiveness programs available  [9:37] Student loan repayment options [22:40] How to start the consolidation process [25:48] What to do if you need help with the process Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Student Loans Over 50 Federal Student Loan Portfolio Public Service Loan Forgiveness Program  StudentAid.gov Email Erik at Erik(at)StudentLoansOver50.com Set up a phone call with Erik at StudentLoansOver50.com Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact   Subscribe to Retire With Ryan

If you've inherited an IRA from someone who wasn't your spouse since 2020, you can't miss this episode. Why? The IRS has finally cleared up a lot of questions that had been left unanswered about inherited IRAs from a non-spouse. Though I've covered the topic in previous episodes, I wanted to break down the regulation further in this episode.  You will want to hear this episode if you are interested in... [1:57] The SECURE Act's impact on inherited IRAs [4:21] The new IRS regulations [6:30] Eligible designated beneficiaries [7:52] Non-eligible designated beneficiaries [11:07] Do some tax projections [12:34] Satisfying distribution requirements Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Fiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial Advisor IRS Single Life Expectancy Table Episode #180: New Beneficiary IRA Distribution Requirements Episode #200: IRS Update for Inherited IRAs and Roth IRAs Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact   Subscribe to Retire With Ryan

In March, The National Association of REALTORS® (NAR) settled an antitrust lawsuit. The lawsuit alleged that NAR didn't allow sellers to negotiate what they could pay buyer's agents. The changes outlined in the settlement will impact “business as usual.”  As of August 17th, 2024, the way home-buying and selling transactions happen will change. Raquel Fernandez—a realtor with over 20 years of experience—joins me to share what the changes look like for buyers, sellers, and their brokers. Anyone who owns a home—or is looking to buy one—needs to know this information.  You will want to hear this episode if you are interested in... The NAR lawsuit is settled: Now what? [1:20] What do the changes mean for you? [2:56]  Debunking the fake news [9:49] What happens if the seller doesn't pay commissions? [16:42]  What do the changes mean for the future? [27:00]  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

What steps should you take to get your financial life in order after a divorce? In this episode of Retire with Ryan I lay out, step-by-step, the checklist of things you'll want to look over, everything from calculating your net worth to designating beneficiaries. There's a lot to consider. My aim is to simplify the process so that you can focus on what really matters—rebuilding your life.  You will want to hear this episode if you are interested in... [0:45] Recap of the last two episodes [1:15] Organize your net worth and budget [4:27] Review insurance coverage [6:28] Review overall debt [8:27] Consider hiring a financial advisor [9:32] Review your retirement plan  [10:38] Review your estate plan Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Get a free copy of my net worth statement and budget spreadsheet Use my “I love you letter” template Fiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial Advisor LegalZoom Trust & Will Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

In episode #211, we talked about the information you need to gather to prepare to file for divorce and the initial proceedings. But what financial steps do you need to take during a divorce? How do you figure out what life will look like on the other side? How does splitting your assets actually work? Renée C. Bauer—an experienced family law attorney and mediator—joins me in this conversation to help flesh out the details.  Renée has been practicing law since 2003. She's also the author of two books, “Divorce in Connecticut,” and “She Who Wins” and the host of the “Happy Even After” podcast.  You will want to hear this episode if you are interested in... [2:16] You've filed for divorce—now what? [5:28] Creatively diving into each person's goals [10:41] Handling the sale of a house you co-own [12:52] How to separate a co-owned business [15:54] The Fair and Equitable Division of Assets [17:41] What happens if no agreement is reached? [20:27] Where retirement assets land in the process [23:24] Why a 50/50 split is the starting point  [27:47] Unraveling emotional attachments [30:00] Taking control of your finances Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Episode #211: Financial Steps to Take Before Divorce Happy Even After Family Law The Happy Even After” podcast Qualified Domestic Relations Order Connect with Renée on Instagram Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact   Subscribe to Retire With Ryan

We've all heard the statistics that almost half of all marriages end in divorce. And divorce comes at a large cost. That's why you should come up with a plan for life after divorce. Look at your net worth, put together a budget, and make projections for your future. Let's get you prepared as you can be.  To do that, I'm launching a three-part series on navigating the financial considerations when going through a divorce. No one wants to plan for the demise of their marriage. I get it. But if you know you're about to go through the process, there are steps you can take to make it easier. You will want to hear this episode if you are interested in... [2:04] Do half of all marriages end in divorce?  [4:50] Gather key financial documents [7:59] Take a look at your income [8:18] Consider potential job opportunities [9:03] Look at your individual credit score [9:40] Consider working with a financial planner Gather key financial documents If you aren't managing the household finances, this is especially important. You need to understand how your household is doing. Gather things like: Checking, savings, and investment account information. You need to know where the money is and how much is held in the accounts. Have an idea of what property you own (which may be easy if it's simply your primary home). Know the value of any assets you have.  What debt do you have? Do you have credit card debt, lines of credit, mortgages, or other personal loans? Know what you owe (and how debt may be split when divorced). What are your household expenses? What are you spending? Look at things like insurance, utilities, home maintenance costs, etc. Do you have any retirement accounts or pensions? What will your Social Security benefits look like? Take an in-depth look at all of this information. When you divorce, that net worth will be divided in some way. Getting a handle on that is important to understand the changes you'll need to make.  Take a look at your potential income You can contact your accountant to get that information if you don't have it readily available (or can't get it from your spouse). If you're not working, it's time to get a handle on what you may be able to earn if you go back into the workforce.  If you won't have income or assets to support yourself, consider the job opportunities available to you. What are your skills? What jobs are out there? Can you improve your skills by taking courses? Do you have any licenses you'll have to renew?  What does your individual credit score look like? After a divorce, you might have to take out additional loans for a mortgage, car, student loans, etc. You'll need good credit to do that. If you don't have a good credit score, look into ways you can improve it quickly.  This is a great time to engage a financial planner for assistance. Listen to hear other things you'll need to consider when going through a divorce.  Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Fiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial Advisor Revealing Divorce Statistics In 2024 Get my free budget template and net worth statement Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact

Why would you want to make a Roth contribution? If you believe tax rates will be higher in the future, it could benefit you. How? The contributions grow tax-deferred. When you withdraw the money, it's tax-free. A tax-free income can be very beneficial in retirement. In 2024, you can contribute $7,000 to a Roth IRA. If you're over 50, you can contribute $8,000. However, there are income limits for the contributions. Individuals who make over $161,000 can't contribute.  Thanks to the 2017 tax cut, there are some additional ways you can contribute to a Roth IRA. I cover four ways you can get money into Roth accounts in this episode of Retire with Ryan.  You will want to hear this episode if you are interested in... [1:34] How to make a traditional Roth IRA contribution [4:06] Option #1: The Backdoor Roth IRA [8:06] Option #2: Contribute to a Roth 401K [9:16] Option #3: Do a Roth conversion [13:17] Option #4: A Mega Backdoor Roth IRA Option #1: The Backdoor Roth IRA Let's say you're contributing to a Roth IRA indirectly (I talked about this in episode #176). To do that, you have to set up both a transitional and Roth IRA with the same company. Then, you make a non-deductible contribution to your traditional IRA. After that, you fill out a request form to convert that money to the Roth IRA. They'll move it for you. What's the biggest mistake you have to avoid when doing this? Listen to find out!  Option #2: Contribute to a Roth 401K If you have the option to contribute to a Roth 401K, use it. Why? Because there are no income limits on who can contribute to a Roth 401K. You could make well over the limits to contribute to a Roth IRA and still make a contribution. In 2024, you can contribute $23,000 to a Roth 401K or $24,500 if you're over 50.  Option #3: Do a Roth conversion Currently, everyone can convert money in a traditional IRA or 401K into a Roth IRA or 401K. Let's say you have $100,000 in an IRA that you want to convert. You'd have to pay Federal and State tax on the $100,000 you're converting plus any other earned income for the year.  When would this make sense? You don't have to pay a 10% penalty on the conversion if you're under 59 ½. Secondly, if you think you'll be in a higher tax bracket in retirement, and don't need access to the money now, it might make sense to roll it over. It will have time to make back the money you had to pay in taxes upfront.  But your plan has to offer a Roth 401K. You'd choose the amount you want to convert from the traditional IRA to the Roth 401K. You'd pay taxes on the amount you're converting. 40% of 401K plans offer this feature. But you have to consider if the conversion will push you into a higher tax bracket. Option #4: A Mega Backdoor Roth IRA Some 401K plans allow contributions above the traditional $23,500 limit. The IRS has a total pension profit-sharing contribution limit. For 2024, that number is $69,000. That's the total that your employer can contribute to your retirement plan. Let's say you and your employer contribute $30,000.  Because you haven't hit the maximum, there's an additional $39,000 that can be contributed to your 401K as an after-tax contribution. Then you have to convert it to your Roth account. That's the Mega Backdoor Roth IRA. If you're over 50, you can also contribute the additional $7,500 catchup.  Government 457 plans and most 403B plans don't allow this after-tax contribution. Many 401K plans do.  How do you get the most out of that contribution? Find out in this episode!  Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Fiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial Advisor 7 Backdoor Roth IRA Mistakes to Avoid How a Mega Backdoor Roth IRA Can Accelerate Your Retirement Savings Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

One of my favorite ways to save for retirement is through a Health Savings Account (HSA). Too many people overlook a health savings account as a great way to save for retirement and healthcare costs. So how do you get the most bang for your buck out of your HSA? I share some simple strategies that very few people employ in this episode.  Disclaimer: I don't work for Fidelity and they do not compensate me for my reviews. I simply believe it's a great option for my clients.  You will want to hear this episode if you are interested in... [2:14] What is an HSA?  [4:03] The tax benefits of an HSA [4:59] Why put money into an HSA [9:17] The bucket approach with HSAs [10:23] How to grow your HSA [13:48] Action steps The benefits of an HSA HSA plans are considered a triple-tax-free retirement account. When you contribute money to the plan, you get a tax deduction on the contributions (reducing your taxable income). The money in the HSA can be invested and grow tax-free. When you take the money out to use it for qualified expenses, it's tax-free. No other retirement account gives you this benefit. Let's assume your HSA is offered through your employer. A good HSA is one that allows you to buy individual stocks and bonds or mutual funds at a low cost. If they don't offer this, you may want to move to another HSA provider. Outside of employer-sponsored HSAs, my favorite provider is Fidelity.  If you're just getting started and you're not ready to invest the money (it's being saved for healthcare expenses) you want to at least be earning interest. If you don't choose the stocks, bonds, or mutual funds you want to invest in, your money is automatically swept into a money market option (with rates around 4.5%).  How to grow your HSA In 2024, a single person can contribute $4,150 to an HSA. If you're eligible for a family HSA, your limit is $8,300. If you're over 55, there's a $1,000 catch-up allowance per year. I would max out your HSA every year and prioritize it beyond your 401K.  You want to let the money grow so that you're only spending your gains in the future. That's why you want to pay most HSA-related expenses out of pocket—not with your HSA. The biggest mistake I see is people spending through their HSA money immediately. When you do that, you won't see tax-deferred growth. So what do you do instead? If you can, track your expenses on a spreadsheet and keep your receipts. When I pay medical bills, it's entered into my spreadsheet. Let's say my family spent $15,000 on medical bills over the last six years and my HSA has $30,000 in it. If I wanted to, I could reimburse myself at any point in time for those expenses, tax-free. Once you turn 65, you can use the money in your HSA for any expenses. It acts just like a 401K. I share my whole strategy in this episode—don't miss it.  Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Fiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial Advisor Qualified Medical Expenses (per the IRS) Fidelity HSA Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact   Subscribe to Retire With Ryan

Will your benefits be there when you need them the most? If so, should you collect your benefits as soon as possible? This is something I'm frequently asked, so much so that I decided it was time to address it. So in this episode of Retire with Ryan, I'll cover how Social Security works, how long Social Security will remain solvent, and whether or not you should collect early.  You will want to hear this episode if you are interested in... [1:52] How does social security work? [4:23] Social Security solvency report [6:10] What are the options? [10:24] Are there enough people paying in?  [11:25] Should you wait to collect Social Security?  How does social security work? Every dollar you earn—up to an annual maximum amount—is taxed for Social Security and Medicare. This is known as the FICA tax. You pay 6.2% of your income up to $168,600. The company you work for also pays 6.2%. If you're self-employed, you pay both portions. The amount you earn over $168,000 isn't subject to the FICA tax (but is subject to the Medicare tax). The limit is adjusted upward annually.  The money is used to pay current Social Security beneficiaries their monthly check. When social security first started, 40 people were paying into the fund to every one person collecting. That ratio is now closer to 2-to-1.  The initial surplus was put into the Social Security Trust Fund to pay for future benefits. Now, more funds are being paid out than taxes being collected. The government is covering the deficit from the trust fund. This is why people are worried that Social Security will go broke.  Social Security solvency report Each year, a report is issued on the solvency of Medicare, Social Security, and other social systems. It states that, unfortunately, Social Security and Medicare programs both continue to face significant financing issues. What else does it say? The Old-Age and Survivors Insurance (OASI) Trust Fund will be able to pay 100 percent of the total scheduled benefits until 2033. After this, 79% of scheduled benefits will be paid annually. If nothing is done in the next nine years, starting in 2033, recipients will see a 21% reduction in their benefits. This would be catastrophic for most people. How can we solve the solvency problem?  Most retirees get 40% of their income from Social Security. Congress must do something to make sure people receive the same benefits. What can they do? Raise the Social Security earnings limit: They could raise or do away with the annual cap and tax everyone on their entire annual income.  Increase in the percentage that's paid in: Instead of 6.2%, they may raise the FICA tax to 7.2% or 8%.  Increase in the age of retirement: Full retirement age for someone born after 1960 is 67. They may raise the age to 68, 69, or 70.  Increase the taxation of benefits: Social Security benefits are taxed based on your earned income in the tax year you're receiving your benefits. Benefits weren't taxed in the past. But in 1983, Social Security was made taxable.  Changing the cost-of-living adjustment calculation: In 2024, the COLA was 3.2%. With the high inflation we're experiencing, this adjustment gives people a chance to have their income keep pace with inflation.  Part of Social Security money could be set aside and invested in stocks/bonds: This is a quite unpopular proposition that some people believe is too risky.  Congress needs to decide what they're going to do and pass a bill into law. However, Congress tends to wait until the last minute to get things done. The last big change was in 1983. Hopefully, the next change will make the system solvent for longer.  Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Fiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial Advisor Status of the Social Security and Medicare Programs (2024) Cost-of-Living Adjustment (COLA) Information for 2024 How Medicare Enrollment Impacts HSA Contributions  Changes to the Social Security Cost of Living Adjustment in 2023 Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact   Subscribe to Retire With Ryan