Retirement DNA

Takeaways: 1.      No major changes for 2025 so far 2.      IRA contributions remain the same, 401(k) and SEP IRA have had increases. 3.      Most likely taxes on Social Security benefits will remain. Hopefully they will inflate the brackets to more current levels. They haven't been inflated since the 1980's. 4.      If you own rental properties, be sure to deduct depreciation and recapture it when you sell. 5.      Tax planning strategies. Tax loss harvesting on non-IRA accounts and Roth conversions to help lower taxes for the future.

1.      There are 3 potential ways to balance the US Budget and start to pay off debt. 2.      2. Soon the U.S. will be spending more on interest on our than we will spend on any other program. 3.      3. The math doesn't work out to only raise taxes on the wealthy. 4.      4. Taxes will increase for everyone. 5.      5. Tax-Free accounts will become more important in the future.

Take intermittent steps into retirement. Go part-time, then retire. Work with a financial planner that will look holistically at your income and assets. If you don't have a pension, be sure you have a strategy for taking Social Security. That may include taking it early or waiting until after FRA. Have your adviser run different scenarios so you can see the difference with taxes, income and how your assets are used.

The traditional way of investing doesn't work. Research proves it It only works in up markets. Your income bucket should last 12+ years. It's important to keep your income bucket away from your growth bucket. You can't have your safe bucket going negative due to the market.

Only about 25% of Americans have been able to reach this goal. A traditional balanced portfolio no longer works according to JPMorgan and Goldman Sachs studies. Add in some guaranteed products, like annuities. Even the big Wall Street firms like Goldman Sachs, Fidelity, and Morgan Stanley are starting to see the value in them. Make sure you are talking to an adviser who specializes in retirement income planning and has the freedom to pick and choose products that are right fit for you.

1.      Only about 25% of Americans are able to reach this goal. 2.      A traditional balanced portfolio no longer works according to JPMorgan and Goldman Sachs studies. 3.      If you add in guarantees to your portfolio, you can still take the 4% or more and have your money last your retirement. 4.      The adviser you speak with matters. Some big firms limit what their advisors can do because they don't make money off certain products.

Required Minimum Distribution changes to age 73 and will move to age 75 in 2033. The Required Minimum Distribution penalty of 50% decreased to 25% and possibly down to 10%. Catch-Up contributions have increased and will increase even further for those 60-63 in 2024. 529's that have remaining balances can now be rolled to a Roth IRA for the beneficiary. There is still clarification on some things coming down the pike.

Remember the 3 – legged stool? The pension leg has gone away. Maybe you can create your own now. Safe money on the sidelines has been earning nothing. Now might be a good time for the next few years for a CD Alternative or a short-term, high quality fixed income portfolio. Are you taking advantage of tax harvesting? If not, you should be. Has your advisor talked to you about your non-IRA account? Roth IRA Conversions. We talk about this a lot I know. But the market is down, when it comes back all those gains could be tax free. This year it's too late, but the market will still be down early 2023.

If things look bad, don't freeze with indecision, come talk with us Don't be afraid to make a change, even it if means paying taxes Sometimes you have to make a change to rescue your retirement Make sure you have a way to limit losses Base your retirement on math and not the markets  

Knowing the average return of a portfolio doesn't tell the whole story. You don't have to have great returns to end up in a really good place. Bonds are the go-to safe haven for the stock market, but where do you go when bonds are down more than some stocks? How are you hedging your portfolio? How are you combining good return potential and risk hedging?

Everyone's situation is different. What's right for you may not be right for someone else. Be sure to run the numbers. Know when your breakeven age is. Your reason might be a good one to start early, but does it make the most financial sense?  

Set a capital gains tax budget Work with someone that will tax loss harvest Don't be afraid to sell the losers If you have cash on the sideline waiting for rates to go up, we have other options for you!

Three biggest fears: Out living their money, Health Care and rising taxes. Don't be so paralyzed with fear that you keep working when you don't have to and don't want to. Work with an advisor that is going to address the whole retirement picture and shows you HOW you can retire.

Your retirement plan must address, longevity, healthcare, inflation, taxes and investments. The conventional “Balanced Portfolio” is not going to work. Just one market drop of 20% or more in the first 10 years can have drastic consequences. Make sure you work with an advisor that SHOWS you how you are going to be ok in retirement.

If your advisor doesn't show you How you are good and set for retirement, then you probably aren't. If your advisor just talks about how you have a 60/40 portfolio and says you're good and set for retirement, you probably aren't. What happens if markets don't cooperate during retirement? Is there a plan for that? Don't base your retirement income on the market, base it on math.

Truth is, you may be in a higher tax bracket than when you were working. If you are still working, maybe you shouldn't be following “conventional wisdom”. There are strategies that can be started now to save on taxes in retirement. Tax Planning needs to be a major part of your Retirement Plan.

Which level of advisor are you currently using? What areas of planning does your advisor cover? Is your advisor addressing your planning needs? A good retirement plan covers more than just investments. It included taxes, health care, risk management and estate planning.  

Look at your accounts with your Reality Glasses on Understand that the amount you see on your 401(k)/IRA statement isn't all yours Make smart long term tax decisions Know the difference in tax between converting all at once or over a certain time period Have us run a Roth Conversion calculation for you    

Takeaways: Make sure you know what your tax liability looks like in retirement. Your RMD's can cause the tax you pay to go up on all other sources of income. Would a Roth IRA conversion or special designed life insurance benefit you? Have a Roth IRA conversion calculation done for you.  

Takeaways: Know your protection needs for the unknown. Life insurance is a useful tool in retirement if done correctly. Better to be overinsured than underinsured.  

Work with a holistic planner. Manage money in an asymmetrical way. Plan for taxes in the future, not just now. Make sure you have planned for the unknown.

Know the types of accounts you have and how they will be taxed. Work with a holistic financial planner to look at all aspects of your plan. Take steps now to minimize taxes in retirement.  

Have a realistic idea of your life expectancy. Start to get a feel for what you spend each month. Know what your other assets are and how they will generate income for you. Know the amounts of your Social Security benefit at your different ages. Get objective help from an advisor to help evaluate your overall situation.

Have goals and plan for them. Create an asset allocation that will give you steady stable income. It's about the math and not the markets. Make sure your plan can withstand the losses of the market.  

Have a goal and plan for it. It's all about BALANCE. Do the math.  

Both are diversified stock or bond portfolios. Both can easily be purchased. ETF’s are more tax efficient. ETF’s offer greater transparency.  

Know your cash flow. Make sure you don’t have lazy investments What withdrawal rate will provide what you need and last your lifetime? Everyone is different. You need a custom retirement plan that encompasses Investments, Taxes, Income, Inflation, and your legacy.

The Filing Single tax bracket is the highest current tax rate. When a spouse passes away, they get moved to the Filing Single tax bracket Strategies used to lessen the burden of taxes now and later.

RMD age moved to age 72. How to calculate RMD’s Strategies to lower your RMD.

Asset location is just as important as Asset allocation. Pay attention to what assets are in your different accounts. Is a canned portfolio ok for you or do you need a customized investment plan?

Review the risk you are taking in your investment portfolio Get a Roth Conversion Review done Review your Income Plan

Every dollar is taxed Distributions can impact the tax you pay on other income Required to pull money out Worst type of account to pass to surviving spouses No control over taxes paid or how much tax is paid

Review of Expenses – Current and Future Review Your Assets Know the Risk You Are Taking Do You Have an Income Gap?

Age change for starting RMD’s. Contribution age change. Guaranteed Income rider options in 401(k)’s now. Exceptions for the early withdrawal penalty. Withdrawal changes for 529 accounts.

Financial success is not just about adding $0’s to your net worth. Investing comes down to two things. Opportunity and Risk. Having your own benchmark can help with market stress during volatile periods.

Duane and Aaron Johnson talk about the important aspects in investment planning.

Duane and Aaron Johnson talk about the important elements of estate planning.

Duane and Aaron Johnson talk about the important elements of tax planning.

Duane and Aaron Johnson talk about the important elements of income planning.

Duane and Aaron Johnson talk about who they are and what they do.