Ready For Retirement

In today’s episode of Ready for Retirement episode James covers when to adjust your portfolio as retirement nears—a crucial step for balancing growth and security. If adjustments happen too late, market downturns could delay your plans; if too early, you might miss out on potential growth.The focus is on reallocating stocks to more stable investments like bonds as you approach the time you’ll need to start drawing from your portfolio. Historical data shows that while the stock market grows ov...

Meet Ari Taublieb 👋 If you didn’t already know, Ari and I work together at Root Financial, and we thought it was finally time to launch a podcast series together.In our very first episode, we dive into a topic that many people shy away from: talking to your parents about money. Whether it’s discussing their estate plans, long-term care, or the tough conversations around wealth, these talks can feel awkward—but they’re absolutely essential.In this episode, we break down:▪️ Our personal stories...

Roth IRAs offer great tax-free income benefits, but to make the most of them in retirement, here are seven things you need to know:Contribution Limits: In 2024, you can contribute up to $7,000 annually ($8,000 if 50+), across both Roth and traditional IRAs.Access to Contributions: You can withdraw your contributions at any time, tax-free and penalty-free. Only earnings are subject to penalties if withdrawn early.The Five-Year Rule: To withdraw earnings tax-free, the Roth IRA must be held for ...

Have you thought about what moving to a new state might mean for your retirement budget and lifestyle? In this Ready for Retirement episode, the focus is on preparing for an out-of-state retirement. James outlines three essential considerations for retirees planning a move:1. Housing Costs and Expenses: From property values and local property taxes to potential capital gains from selling a current home.2. Overall Cost of Living: Everything from groceries to utilities varies widely between reg...

Many dream of retiring early, but you would be surprised to learn that many people who retire early regret doing so. James reveals five things that lead people to regret early retirement and provides practical tips to avoid these pitfalls.He explains why many individuals who retire before 65 struggle due to a lack of planning, overly conservative investment strategies, and failure to envision life beyond work. He highlights the importance of aligning financial plans with personal goals, maint...

James sits down with someone who’s financially set to retire—mortgage paid off, kids through college, and investments in place—but he’s still grappling with one big question: what’s next?Instead of focusing solely on financial strategies or retirement planning, James gives him some unexpected advice: start journaling. This led to a deeper conversation about finding purpose beyond optimizing your portfolio.What would your life look like without constraints? What actually matters most to you? A...

For many, Social Security makes up a large portion of their retirement income, so it’s important to know how to maximize your Social Security benefit. James explains how Social Security works, diving into some important foundational aspects. He then explains four key strategies for maximizing benefits:1. Work for 35 years to avoid zero-income years in the calculation.2. Delay benefits, if possible, until age 70, increasing payments by 8% annually after full retirement age.3. Leverage spousal ...

ames responds to a question from Chris regarding restricted stock units (RSUs) and how to avoid costly mistakes when managing them. He explores whether it’s wise to hold onto company stock or diversify for a safer financial future. He breaks down how RSUs work, from vesting schedules to the tax implications of receiving stock as part of your compensation package. He also explains the critical considerations you should make when deciding whether to hold or sell vested shares and how this decis...

Patrick and Mary will soon both be retired. They are curious about what their withdrawal strategy should be as they balance various retirement accounts, including a pension, IRAs, and a brokerage account. They've been using tax gain harvesting to minimize taxes and plan to eliminate gains by 2024. A key question is whether to withdraw from their IRAs or brokerage account first, considering their state’s tax exclusion. James explains that by managing withdrawals and Roth conversions strategica...

Ben has been a saver his entire life, which helped position him for an early retirement at the age of 53. Yet, he faces a big challenge. Having maintained his modest lifestyle, Ben’s comfortable portfolio has continued to grow and has nearly doubled in value. James and Ben discuss the challenges of making mindset shifts and the proactive steps Ben has taken to encourage himself to spend more. Questions answered:How did Ben decide to retire when he was in his peak earning years?What are the st...

Monique aspired to retire early, and while she had faithfully saved throughout her working years, she wasn’t sure if she had enough to retire. After getting assurance from professionals, she took the plunge and quit working. Monique and James talk about the first two years of her retirement – how she’s been able to focus on her health and pursue some hobbies she didn’t have time for previously. Monique also shares some surprising challenges related to spending, travel, and family dynamics. Qu...

Elaine didn’t decide to retire at age 57, but changes in her company meant an early retirement for her. Being caught off guard, she didn’t feel emotionally prepared to make the shift, even though she knew that her family would be fine financially. One year into her retirement, she found her groove by focusing on her family, building new relationships, trying new things, and staying physically active. Today she says she’s never been happier. James and Elaine discuss how she found her footing i...

After his father lost healthcare coverage in retirement and had to pay for a major health event with savings, Derek was highly motivated to ensure sufficient coverage in retirement. He even considered leaving the job he loved for one with better healthcare and retirement benefits. Derek shares his retirement journey with James, including: ➡ Decisions he made pre-retirement➡ How he addressed healthcare concerns➡ How his perspective on life and giving back has shifted➡ How he and his wife prepa...

Chris has been retired for a little over a year while his wife has continued to work. Now that Chris has “tried on” retirement and found the fit good, his wife will likely join him within the year. In his conversation with James, Chris, who could be described as goal-oriented and one who likes to be prepared, talks about the pros and cons of retirement. He’s found that by staying flexible, maintaining an adventuresome spirit, and focusing on giving back, retirement can be quite fulfilling. An...

Meet Joe Sullivan, who found the first few years of retirement very difficult. Community is important to Joe, but he wasn't getting sufficient, routine social interaction to make meaningful connections while living in rural Virginia. He found his groove once he moved to a retirement community in Florida.James and Joe discuss the phases of retirement and what those phases have looked like for Joe. Joe emphasizes the importance of remaining flexible and trying new things as retirees explore who...

Ready for Retirement is on a mission to be the most valuable source of retirement information in the world. In that light, we’re making some changes. The biggest change is that rather than James doing all the talking, he’s inviting people like you to be part of the show. Some of you have real-life retirement advice to share. Others of you have questions that James can address. Ready for Retirement is poised to be a place for both. Get all the details in today’s episode.Questions answered:How ...

Gary is a 73-year-old with $8 million in savings. Despite having substantial assets, he’s concerned about missed opportunities for Roth conversions as he faces significant required minimum distributions.James encourages Gary to reassess his investment strategy, particularly the bond funds in his Roth IRA, and align his tax planning with his broader financial goals. By doing this, Gary could make more informed decisions that support his retirement goals and charitable aspirations.Questions ans...

Connor plans to retire soon and wonders if he should pay off his mortgage of $300,000 or invest those funds, especially since he has a low interest rate. James gives a detailed response and reveals why there is no one-size-fits-all answer. When it comes to having a mortgage in retirement, math and spreadsheets can help with part of the question, but emotions and personal values should be considered too.Questions answered:Should you pay off your mortgage as you head into retirement, especially...

Retirement tax planning should begin well before retirement. Listener Jodie, with over $2 million in assets in various types of accounts, is concerned about the high tax bracket she anticipates she be in in retirement. Is there a tax strategy that would put her in a lower tax bracket? James explores some often-overlooked tax strategies that can save retirees thousands in retirement, especially for those like Jodie with diverse portfolios.Questions answered:How could my home be part of m...

Listener Michael asks about how Social Security is taxed, the rationale behind the 50% and 85% tax thresholds, and the implications of these taxes on Social Security and IRA withdrawals.James responds by explaining how Social Security is taxed at the federal level, highlighting the concept of provisional income and the thresholds that determine the taxability of benefits. He notes state taxation of Social Security, explaining that most states do not tax these benefits and naming the ones that...

Listener Nael opens up a discussion about Roth conversions. There are benefits to doing Roth conversions, but can you do too many? Are there any downsides to Roth conversions?Reaping the tax benefits from Roth conversions requires hitting a specific sweet spot. If you convert too little or too much, you’ll be leaving money on the table. So, how do you find Roth-conversion the sweet spot? James lays out five things you should consider as you plan when and how much to convert:1. Macro and ...

David has a question about taxes in retirement: When you’re retired and no longer getting a regular paycheck from which your employer withheld tax payments on your behalf, how do you estimate the taxes you’ll owe? To answer this question, it’s important to understand where income in retirement will be coming from and how that income is taxed. Once you have an idea of what you’ll owe, you need to make estimated tax payments throughout the year. James explains how Social Security, wit...

Mark asks a common question – What should I do regarding my withdrawal strategy? Should I first pull from my brokerage account or my IRA? There is no one-size-fits-all answer, but James provides a framework for creating a strategy to increase your odds of getting the most out of your money saved. He walks through the pros and cons of first pulling from your IRA versus a brokerage account, taking into consideration required distributions, tax rates and strategies, capital gains, Roth conv...

Dr. Riley Moynes, author and creator of a popular TED Talk joins James to discuss his own retirement which led him to become the author of The 4 Phases of Retirement. While Dr. Moynes was financially prepared for retirement, he wasn’t prepared for the boredom and depression that followed the first two years of retirement fun. As it turns out, his retirement path was far from unusual. Dr. Moynes shares what leads to a truly meaningful retirement and how you can prepare now for a meaningfu...

Listener Sherry asks a good question: How do large, one-off expenses (like a new roof, new car, etc.) fit in the 4% Rule? James explains the concept of the 4% Rule and its limitations while demonstrating how it can be an effective guideline in planning and forecasting retirement success. He addresses the importance of anticipating one-off expenses and, depending on your portfolio withdrawal rate, using sinking funds to get a reality check on where you stand.Questions answered:Are on...

Healthcare subsidies are like a tax break and should always be optimized, right? That seems like an easy question that should have a straightforward answer. But the correct answer is, “It depends.” Cole from Move Health is back, as he and James explain how advanced premium tax credits work, when you might not want to take them, and why it’s imperative to have a financial plan and a tax strategy in mind as you make healthcare insurance decisions. They share case studies and remind listene...

We meet many people who are in a position to retire early. But when they think about healthcare in retirement and not being eligible for Medicare until age 65, they feel stuck, even though they’re ready for retirement in every other way. Cole Craven of Move Health Partners chats with James about the healthcare options that are available for early retirees and why there is no one-size-fits-all, “best” solution. He also lays out a general timeline for ensuring a smooth transition between y...

Drew Shockley of MOVE Health Partners joins James to address questions about Medicare. He overviews the Medicare system, explains Parts A, B, C, and D, and breaks down what Medicare does and doesn’t cover, who is covered, and when/why you might want alternative coverage. Questions Answered:I’m 65, still working and qualify for Medicare, but I have health coverage through my employer. What should I do?Does Medicare provide good, reliable coverage?Timestamps:0:00 - Medicare overview5:28 - ...

Graham and his wife are in their early 50s and plan to retire in 5 years. He wonders if they should continue maxing out their 401ks, how their investments should change, and what they should do with savings accounts to best prepare for their retirement goals. James addresses these questions, Graham’s biggest risk as he nears retirement, and potential tax strategies for him to employ.Questions answered:Which is a better tax strategy – tax gain harvesting or Roth conversions?Do I need to h...

Drew, a burnt-out, financially responsible 40-something father of two, hopes he can scale back from his stressful job and still be okay when it’s time to retire. James offers a practical and philosophical take as he tackles Drew’s question. He demonstrates how to determine when Drew and his wife will be in a good position to fully retire. He also challenges listeners to assess their spending and saving habits and to strike a balance between planning for an unknown future while still finding f...

How do you know if you can retire? It seems straightforward, but the answer is far from simple. Beyond portfolio balances and age thresholds, there are other things to consider. James explains his three-step test to determine your retirement readiness.By pulling together principles from the 4% Rule, straight-line projection, and a Monte Carlo analysis, you can assess whether your portfolio can sustain your desired lifestyle over decades amid various market conditions. However, these tests alo...

Jennifer, 54, plans to retire soon. Her husband, 70, is retired, on Social Security, and dealing with some severe health issues. Jennifer worries about possibly becoming single in retirement, which could result in a higher tax bracket for her. Jennifer is considering whether to convert her traditional accounts to Roth to lower future taxes or to change her contributions to Roth 403b, even if it means paying more taxes now. James walks us through several factors for her to consider and de...

Joe is planning for retirement and wants to minimize his tax burden, especially on the interest earned from his three annuities. James explains that non-qualified annuities are purchased with post-tax money and offer tax deferral on growth until withdrawal. When taking out funds, the principal is tax-free, but earnings are taxed at ordinary income rates. He explores strategies for tax-efficient withdrawals. He also touches on annuities, options like a 1035 exchange to transfer an annuity...

Deciding to work with a financial advisor is about more than how much you've stashed away. It's also about determining whether an advisor's benefits outweigh the costs. In your higher earning years, finances become more complex. More money means more decisions and more chances to make mistakes or miss out on opportunities. That's where a quality advisor can come in handy. They help you steer clear of bad investments, seize the right opportunities, and keep financial stress at bay.Having ...

Listener Ray is wondering what to do with his home as he embarks on a nomadic, van-life journey in retirement. Should he sell it to finance his travels or retain it for potential appreciation and cash flow? James explores the nuances of home ownership as an asset versus an investment. He considers cash flow and leverage as he looks at Ray’s three options – sell, rent, or borrow – while emphasizing aligning financial decisions with personal goals and aspirations.Questions Answered:Why sho...

Listener Drew asks about a tax strategy for juggling capital gains and Roth conversions. While it can be a complicated question – especially when large accounts are involved – James provides some general guidelines that can be helpful for anyone with similar gnarly tax strategy challenges in retirement. In this episode, we’ll cover the extent to which required distributions will be an issue, what you need to alleviate that issue, and the timeframe within which you have to do that.James e...

James responds to listener Jerry’s question about the optimal time to distribute inheritance or charitable gifts: before or after passing away. James walks listeners through four important things to consider when it comes to gifting and inheritance: your gifting goal, whether you have a strong desire to see the assets gifted within your lifetime, the tax implications of various types of gifts, and what to do with assets you plan to retain for now but are intended for future generations.Q...

A listener says, “Eventually, one spouse will pass before the other, which will often catapult the survivor into a significantly higher tax bracket. Shouldn’t a Roth strategy take this into account?” James explores several factors that could positively and negatively impact a survivor’s tax liability and what to consider when creating a Roth conversion strategy. Questions Answered: How can Roth conversions benefit married couples beyond tax savings?What factors should be consid...

Jason and his wife face a crucial decision: whether to purchase an annuity or pursue traditional investments as they prepare for a full-time, slow-travel retirement. With a diverse array of income sources, including pensions, 401k, property sales, and Social Security, they estimate their monthly expenses at $7,500. James analyzes their situation, emphasizing the balance between annuity stability and investment flexibility.He highlights the security of annuities and explains their limitat...

The "Three Bucket Strategy" is a popular retirement income planning method. The first bucket covers immediate expenses in retirement. Listeners John and Donna are seeking advice on constructing their first bucket. With $1.6 million in assets and pension incomes, they aim to retire in 2026. James analyzes their needs, income sources, and portfolio and lays a foundation for their Bucket #1. It's crucial to bridge the gap between expenses and income, considering risk capacity and tolerance....

Benjamin, nearing retirement at 65, faces a familiar dilemma with his taxable account housing expensive mutual funds. Despite their underperformance, converting to low-cost index funds entails a significant tax hit due to long-held appreciable value. James explains weighing the immediate tax consequences against the risk of holding onto underperforming assets. He also provides a framework for assessing risk, identifying options, and making decisions based on personal financial goals.Ques...

Typical retirement strategies assume a retirement age of over 60. With an earlier retirement goal, a careful look is required to determine what strategies will create the best outcome. James responds to a listener’s question about where to invest as he anticipates an early retirement. James walks through the steps of Root’s Sequoia System to explore options for early retirement scenarios.Questions Answered: How does early retirement impact traditional retirement planning strategies, such...

The 4% rule helps us understand how much we can safely take out of our portfolio each year without running out of money in retirement.Yet, as simple as the 4 percent rule seems, the practical implications are drastically misunderstood. I explore the three common mistakes people make when applying this rule and how to avoid them.Questions Answered:How do RMDs impact the 4 percent rule?Does the 4 percent rule account for changes in expenses and income sources?Timestamps:0:00 - Questions from li...

Retirement is not just about financial readiness; it's also about finding purpose, passion, and personal growth. James and guest Cynthia Meyer debunk the arrival fallacy, the illusion that reaching retirement will bring lasting happiness. Having structure in retirement and pursuing your passions is vital to feeling fulfilled. Although it's easy to fall into comparing our retirement experiences to those around us, this is a dangerous trap. Finding what's truly important to you and fo...

Sammy, a 51-year-old retiree, is seeking advice on how much she should convert from her traditional IRA to a Roth IRA each year to avoid jumping tax brackets and minimize the taxation of her social security benefits. James analyzes Sammy's current financial situation and offers guidance on approaching the tax planning aspect of her retirement strategy.Learn:How to determine how much to convert from an IRA to a Roth IRA Why forward-looking tax planning is essentialThe potential conse...

James addresses a common concern for a couple approaching retirement through a listener’s question. Listener Rob plans to collect Social Security early at 62, raising questions about his wife’s retirement.Understanding Social Security strategies to avoid potential losses during retirement is important.James explains the intricacies of spousal benefits, detailing how they are calculated based on the primary earner's full retirement age benefit.Key Takeaways:-Wait until full retirement age to m...

As one listener prepares for an early retirement, James discusses the situation, covering how to build a bond ladder based on non-retirement funds.James provides a different way of looking at the stock-to-bond conversation.Learn how to determine the appropriate amount to have a bond ladder and whether you should own individual bonds or bond funds as a part of that ladder.Questions Answered:How do you balance risk capacity and risk tolerance in portfolio allocation?How do you build an eff...

James explores the concept of sequence of return risk in retirement planning. Most people are unaware of how risky this is, as it doesn’t become an issue until you begin living off your portfolio.Responding to a listener’s inquiry about early retirement, James dives into the potential impact of market timing on retirement outcomes. Learn three actionable strategies:Ensure a reasonable initial withdrawal rate.Implement a suitable withdrawal strategy.Own a diversified mix of assets.Questio...

Should you sell long-term stocks for a real estate investment?I walk through one listener’s question and explain what you need to consider before making such a decision. Aside from the obvious–is it a good financial investment–you also need to consider if it's a good emotional decision.Learn:➡ The tax implications: how are capital gains taxed differently?➡ How to compare the dividends of a bond to those of a property investment➡ What important factors and questions need to be carefully a...

When you’re doing well financially, paying advisor fees might seem unnecessary. So do you need an advisor if you’re already in a good place?Having a successful retirement isn’t just about not running out of money; it’s about what more you can do.Through a real-life client story, I explain how having an advisor’s perspective to implement the right strategy can be more valuable than the cost of their fee.Advisors can help you avoid biases in the way you invest and plan. They can ensure you have...

James addresses a listener's question regarding Social Security strategies in retirement. Sasha, aged 59, seeks advice on when to start collecting Social Security, considering her husband's benefits and their overall retirement plan. James emphasizes the importance of considering spousal benefits, survivor benefits, and age gaps in making this decision. He explores the complexities of Social Security analysis, encouraging listeners to run break-even calculations based on the assumed age ...

James explores the nuanced aspects of Roth IRAs, shedding light on intricacies that can confound even experienced investors. Through a listener question from Manfred, a retiree contemplating a $50,000 conversion from a 401k to a Roth account, James dissects the crucial five-year holding period and the order in which contributions, conversions, and earnings are treated during withdrawals. James also provides clarity on distribution rules, exceptions, and strategic considerations, off...

When we think of retirement, it often evokes dreams of leisure, relaxation, and the freedom to pursue one's passions. Yet, the decision to retire is not merely about leaving a career; it's about embarking on a new chapter filled with purpose and fulfillment. Joe Kuhn, a seasoned retiree and creator of the "Joe Kuhn Loves Retirement" YouTube channel, shares valuable insights gained from his personal journey.Retiring to Something, Not Just From SomethingRather than focusing solely on leaving be...

Tax loss harvesting is a strategy that investors use to reduce their tax bill. However, there are many misconceptions about tax loss harvesting, including when it's valuable and how to do it effectively.James debunks some of the most common myths about tax loss harvesting and explains how to use this strategy to your advantage.Questions Answered:How can investors benefit from tax loss harvesting by offsetting capital gains and ordinary income taxes?What are the rules and limitations surround...

James walks through a framework of how you ensure that your legacy goals include more than just leaving a chunk of money to your kids when you're gone.He explains the key concepts that can help your child develop strong money management skills. From starting early to diversifying your investments, learn how you can help set your child up for financial successQuestions Answered:Why is it important to start investing for retirement early in life?How does early investment preparation not only be...

What are the benefits of Roth conversions in retirement planning? James addresses questions about when Roth conversions become worthwhile.This episode explores key factors:Changes in tax bracketSpousal scenariosImpact of portfolio size on tax savingsPotential tax savings tend to increase with a higher portfolio balance but be careful not to take unnecessary Roth conversions. James explains different strategies to optimize tax planning.Questions answered:Is there a specific portfolio value at ...

Have you ever wondered if purchasing an annuity makes sense for you?There are two conflicting opinions from financial advisors: some advocate for annuities while others advise against them. James explores the concept of being a fiduciary and the challenges of understanding the financial advisory industry. He covers when annuities may be a suitable option, such as providing guarantees, protecting against longevity, guaranteeing core expenses, and the benefits of Qualified Longevity Annuity Con...

If you're in a high tax bracket now and expect to remain in a high tax bracket after retirement, should you prioritize pre-tax retirement accounts or Roth retirement accounts for individuals? James answers this and discusses various factors to consider in making this decision, including current and future tax brackets, required minimum distributions (RMDs), charitable giving, life expectancy, and the impact on heirs. Using a real-life scenario, James offers a thoughtful approach to help ...

James debunks common misconceptions about retirement portfolio allocation and explains how to factor in your pension, social security, and other fixed-income sources into your plan. He discusses the importance of dividends in assessing investment performance, risk capacity and tolerance, and how mastering them can help determine your optimal retirement portfolio allocation.Questions answered:How should you allocate your portfolio in retirement, considering pensions, social security, and ...

In this episode, James emphasizes the importance of having a well-thought-out financial plan for retirement, rather than relying solely on the size of your investment portfolio. Financial security doesn't come from a specific portfolio number but from having a comprehensive plan.Using a listener's question, James walks through a step-by-step approach to assessing retirement readiness. He discusses aspects like income planning, investment strategies, tax optimization, and protection thro...

In this episode James explores signs that may indicate it's time to move on from a current financial advisor and discusses the professional and respectful ways to handle this transition. There are three core aspects to consider when contemplating the change:Deciding to Leave:The first step involves recognizing signs that it may be time to move on. Telling Your Advisor:James provides two scripts for notifying your financial advisor about your decision.Handling Logistics:After the decision...

One of the most ironic things about retirement spending is that the people who have saved the most money are often the same ones that have the most difficult time spending that money. We often think that if we save up enough money or build up enough of a portfolio that in retirement it will open up unlimited fun and enjoyment.The reality is, for those who have saved well, one of the hardest things you'll find about retirement is the difficulty you'll likely face trying to spend some of t...

The majority of people who participate in some level of charitable giving in retirement aren't getting a tax deduction for any of it. While external reasons should drive charitable giving, you should absolutely look to maximize the tax effectiveness of any giving you're already doing.In this episode, James covers how to optimize your tax benefits, detailing donor-advised funds, an often-overlooked tool for maximizing your tax benefits. Learn about when to write off cash contributions, gi...

By the time you get to retirement, it is not uncommon to have many different accounts at multiple different institutions. You may be wondering, "How do I begin the process of consolidating everything without paying a bunch in taxes or penalties?"In this episode, James covers three types of taxes you're likely to encounter when consolidating: ordinary income, capital gain, and early withdrawal penalties. He also explains strategies to sidestep these taxes and penalties and how to decode your c...

It’s common knowledge to have a different portfolio allocation before retirement than you actually have in retirement. But how and when do we actually go about making that change?This episode is based on a listener question: Alan, has a portfolio mix weighted too heavily in stocks. As he shifts into retirement, he is looking to have a new allocation strategy. James discusses how to shift into a different allocation, when the right time to do that is, and what makes the most sense for Ala...

Are short-term savings using an adjustable rate mortgage worth the risk of rate hikes? In this podcast, we cover how adjustable rate mortgages (ARMs) work, how they differ from fixed-rate mortgages, and the reality of their adjustment periods. James uses a real-life scenario to dive into the comparison of adjustable and fixed-rate mortgages. Learn how to plan for the worst-case scenarios and evaluate the benefits and drawbacks of each option. Questions answered:Is it better to get a...

How can rising interest rates impact your pension value?In this week's episode, we analyze a real-life scenario from our listener, Mark, who is weighing the pros and cons of an early retirement, a higher lump sum, or a commit to an annuity. Learn how to calculate the imputed returns of an income annuity and how to determine if taking the lump sum and investing it would be the better option. Questions Answered:What considerations and calculations can be used to decide between a lump ...

If you’re retired, you can’t wait around for the next bonus or stock to vest when you have a large expense. When you’re on a fixed income it’s more important than ever to find the best way to pull funds for large expenses. In today’s episode, James explains how to find the best way to pay for large expenses in retirement while answering a listener’s question.Questions Answered: Should you use IRAs (or other assets), cash, or finance to pay for large expenses with today’s high-intere...

How much of your portfolio is safe to hold in one individual stock? While 5% or 10% is typically recommended, rules of thumb like these are often irrelevant and harmful. The right answer depends upon your specific situation.James explains the right way to determine how much individual stock you should hold based on your situation.Questions Answered:How much is okay to have in an individual stock?What conditions make owning individual stock acceptable or unacceptable?Timestamps:0:00 Intro...

What do you think is the key to a successful retirement?By asking yourself the right questions and being intentional about using money to enrich life, you can live more presently in the moment and enjoy a meaningful and successful retirement.James explains the most important question to ask yourself so that you can transform your retirement.Questions Answered:How do you get the most out of life with your money by living intentionally?How do you live intentionally for a more meaningful life?Ti...

For many people, Social Security will be their primary income source in retirement, but some individuals have sufficient assets or income from other sources, making them less dependent on Social Security benefits.James explains the factors that can affect when you should collect Social Security and how to create a dynamic strategy.Questions Answered: What if you have sufficient assets/ income that you don't depend on Social Security for your retirement needs?How should that change your a...

DescriptionThere are a lot of good reasons to put your money into a Roth account. But does it make sense to have all your money in Roth accounts?The truth is, there is a point at which it's potentially harmful to continue putting money into Roth accounts. James explains the nuances of Roth accounts and tax planning, while answering a listener's question.Questions Answered: Is there a point at which you can have too much in a Roth account?How can you use tax planning in retirement?T...

How much it will cost to meet your needs is one of the hardest parts to understand about retirement. Relying on conventional wisdom will only get you so far, and may even lead you astray.In this episode, we explain how to get an accurate sense of your retirement expenses while walking you through a real example from a listener question.As a bonus, we are including a free worksheet for you to use:Retirement Cash Flow PlannerQuestions answered:How can you tell if you're financially on track for...

Many people believe that when you're retired, you need to own your own home, ideally without a mortgage. But there are instances where renting can make more sense, not just financially but for several other reasons. In this episode, James discusses the pros and cons of owning versus renting and when it makes sense to rent instead of own.Questions answered:In what instances does it make more financial sense to rent than own?What other reasons might factor into the decision to rent?Timesta...

Required Minimum Distributions work differently depending on the type of account. How can you most effectively plan for them? Today we're talking through everything you need to know about RMDs so you can understand their nuances and create a plan to best address them.Questions Answered:At what age do you need to take an RMD?What accounts do you have to take an RMD on?Timestamps:0:00 Intro2:59 At what age do you need to take out an RMD?4:19 How much is the RMD going to be?7:40 What accoun...

For people who are planning to retire early, planning for retirement can be especially daunting. There are many different points to consider, but the most important is ensuring that your income stream will sustain you for the rest of your life.Today’s case study examines someone who is looking to retire early so that you can understand what framework and approach to apply to your own situation.Questions Answered:What do you do for income when you no longer receive a paycheck?What sort of...

One of the best things you can do for your portfolio is to implement the right tax strategy. Each situation is unique and requires a personalized approach.Using a listener’s question, James explains one specific example to show when and how to implement the right strategy. Questions Answered: Why should or shouldn't you do Roth conversions?What should you be mindful of when doing Roth conversions?Timestamps:0:00 Introduction0:53 Listener question4:03 Two core things to focus on5:56 ...

Managing your cash reserves in retirement can get complicated quickly between living expenses, multiple income streams, taxes owed, etc. James explains how you should manage your cash reserves based on your financial plan and answers a listener’s question.Questions Answered:How do you incorporate cash needs and short-term assets into your bigger-picture portfolio?How does that change from working years into retirement years?Timestamps:0:00 Intro0:44 Listener question2:42 Review of the we...

When you retire, there are surprising things you’ll wish you knew beforehand. Unlike social security, IRAs, or Medicare, most people don’t often plan for the emotional and personal matters of retirement.James discusses the five things people often regret not understanding before retirement. Questions Answered:What do people regret not knowing before retirement?How can you avoid those mistakes?Timestamps:0:00 Intro3:20 Regret one5:54 Regret two7:42 Regret three9:14 Regret four11:34 Regret...

James discusses a listener’s question about what to do with stock positions and single stock positions, explaining the pros and cons of holding a concentrated stock position. He highlights the importance of understanding tax implications and assessing your ability to handle financial and emotional implications.Questions Answered:What should you do when you have a large concentrated stock position from an investment perspective?How do you exit and diversify your position?Timestamps:0:00 i...

James debunks six popular rules of thumb that can actually do more harm than good when it comes to retirement planning. From the 100-minus-your-age stock allocation rule to the 70% to 80% income replacement myth, James breaks down why rules like these can be counterproductive and suggests alternative strategies that will help you create a personalized financial plan that meets your unique needs and goals. Questions Answered:Which rules of thumb should not be universally applied?What...

In this episode, James tackles a listener’s question about investing a lump sum for his upcoming retirement. James analyzes one's situation and gives realistic insights on determining the right mix of stable and growth assets that will generate a rising income stream for the rest of your life. Tune in for tips on how to secure a comfortable retirement using a real-life example.Questions Answered:Should I invest lump sump sum or dollar cost average approach?How do I invest a lump sum...

Oftentimes we make decisions about our portfolios based on what we think is the smartest move. Yet when we do that, we can lose sight of the bigger picture. In this episode, we’ll discuss how the context in which you view your portfolio can steer your financial decisions for years to come.Questions answered:What’s the difference between financial strategy and financial tactics?What are the key pitfalls to avoid?Time stamps0:00 Intro1:15 Losing focus on the bigger strategy2:40 Example of ...

You might be missing something if you're focusing only on your initial withdrawal rate......on today's episode, we'll cover what you might be missing, and how you can maximize your portfolio withdrawal strategy.Questions answered:What is the 4% rule and how does it apply to me?How should staggered income and expenses alter your withdrawal strategy?Time stamps0:00 Intro2:15 What is the 4% rule?4:00 Example of staggered income or expenses9:13 You might be limiting your withdrawals12:20 Staggere...

In this episode of Ready for Retirement, James discusses how 4 reasons to NOT do a Roth Conversion.Questions Answered: How to think through whether a Roth Conversion makes sense for youUnderstanding how to implement effective Roth Conversions How can your overall retirement strategy be improved?Timestamps:00:00 - Introduction 2:13 - Example4:25 - Plan for Conversions7:22 - Age / Life Expectancy10:19 - Not ONLY A Dollar Amount12:49 - RMDs14:58 - RMD Example17:02 - RMD Issue19:00...

In this episode of Ready for Retirement, James discusses how to protect your most important financial assets.Questions Answered: How should you think about protecting your most important financial assets?Understanding how to protect what's most important (your TIME)How can your overall retirement strategy be improved?Timestamps:00:00 - Introduction 2:13 - Downsides To Continuing Work4:25 - Savings/Bonuses6:55 - Financial/Personal8:50 - Wages12:03 - Financially Ready14:58 - How Much?...

In this episode of Ready for Retirement, James discusses how to protect your most important financial assets.Questions Answered: How should you think about protecting your most important financial assets?Understanding how to protect what's most importantHow can your overall retirement strategy be improved?Timestamps:00:00 - Introduction 1:30 - Income3:25 - Compounding5:04 - Take-Home Pay8:50 - Wage Increases10:03 - 1% Better13:58 - How Much?!16:33 - Summary of What's In Your Control...

In this episode of Ready for Retirement, James discusses umbrella insurance coverage and how much you need.Questions Answered: How should I think about an Umbrella Insurance Policy (how much)?Understanding how much defense (risk management) is neededHow can your overall retirement strategy be improved?Timestamps:00:00 - Introduction 2:30 - Umbrella Insurance 1013:25 - Home/Auto Policies5:04 - Insurance Policies Examples8:50 - Net Worth Value10:03 - State Exemptions13:58 - How Much?!...

In this episode of Ready for Retirement, James discusses Deferred Compensation Plans and how to consider them within your overall retirement strategy.Questions Answered: How should I think about Deferred Compensation in context of my overall plan?When does it make sense to defer compensation (and when does it NOT)?How can your overall retirement strategy be improved?Timestamps:00:00 - Introduction 2:30 - Deferred Compensation 1013:25 - Retirement Expenses5:04 - Tax Planning8:50 - AV...

In this episode of Ready for Retirement, Ari Taublieb, MBA guest hosts the Ready for Retirement podcast to discuss where you should pull income from first when you retire early. Ari Taublieb, MBA is the Vice President of Root Financial Partners and a Financial Advisor. This episode is part three of a three-part series.Ari is the host of the Early Retirement podcast available here. Ari is also on YouTube here. Create your customized early retirement strategy with Ari here. Episo...

In this episode of Ready for Retirement, Ari Taublieb, MBA guest hosts the Ready for Retirement podcast to discuss the 5 mistakes to make sure you avoid when retiring early. Ari Taublieb, MBA is the Vice President of Root Financial Partners and a Financial Advisor. This episode is part two of a three-part series.Ari is the host of the Early Retirement podcast available here. Ari is also on YouTube here. Create your customized early retirement strategy with Ari here. Episode Sum...

In this episode of Ready for Retirement, Ari Taublieb, MBA guest hosts the Ready for Retirement podcast to discuss the 5 mistakes to make sure you avoid when retiring early. Ari Taublieb, MBA is the Vice President of Root Financial Partners and a Financial Advisor. This episode is part one of a three-part series. Ari is the host of the Early Retirement podcast available here. Ari is also on YouTube here. Create your customized early retirement strategy with Ari here. Episode Summary:&nbs...

In this episode of Ready for Retirement, James discusses how much you need to retire.Questions Answered: How much do I need (financially)?How do I prepare (mentally)?How can your overall retirement strategy be improved?Timestamps:00:00 - Introduction 2:30 - How much is ENOUGH?3:25 - Retirement Expenses5:04 - Assigning Your Dollars8:50 - First Step13:40 - Avoid THIS!17:03 - Inflation Impact19:58 - Taxes (Single v. MFJ)21:55 - Health Considerations23:50 - Aligning Your Financial Goals...

In this episode of Ready for Retirement, James discusses what you should do with extra income after you max out your 401(k). Questions Answered: What are the best accounts to invest in after your 401(k)?Should you invest in a brokerage/Roth/IRA/etc?How can your overall retirement strategy be improved?Timestamps:00:00 - Introduction 1:00 - Key Benefit2:23 - Order of Operations4:30 - Where To Save Next6:14 - Example (Person A v. B)9:50 - HSA (Health Savings Accounts)12:33 -...

In this episode of Ready for Retirement, James discusses what you should do with your 401(k) when you retire.Questions Answered: What are the best ways to reduce fees in a 401(k)?Should you move your 401(k) elsewhere?How can your overall retirement strategy be improved?Timestamps:00:00 - Introduction 1:45 - Listener Question3:23 - 401(k) Hidden Fees7:52 - Gaining More Control9:45 - Investment Options13:40 - Clunky Planning17:03 - After-Tax Contributions21:05 - Net Unrealized Appreci...

In this episode of Ready for Retirement, James discusses with retirement life coach Cyn Meyer how to create the most meaningful retirement.Guest: Cyn Meyer is a Retirement Life Coach and founder of Second Wind Movement. She has free resources here on her website available to all of you. Cyn also offers a free workshop here.Questions Answered: What are the best ways to have a meaningful retirement?What are the best strategies to implement TODAY to start preparing for your dream retirement...

In this episode of Ready for Retirement, James how to use Roth Conversions to protect your spouse's future.Questions Answered: What are the best ways to implement Roth Conversions?What are the best strategies to implement tax planning for your spouse?How can your overall retirement strategy be improved?Timestamps:00:00 - Introduction 1:45 - Roth Conversions3:23 - When To Implement6:52 - Income Assumptions9:27 - Taxable Income12:05 - Roth Conversion Planning14:35 - Surviving Spouse T...

In this episode of Ready for Retirement, James discusses when you should start withdrawing cash instead of stocks for retirement income?Questions Answered: What is the best way to optimize withdrawals?What are the best strategies to optimize pulling funds from cash vs. stocks?How can your overall retirement strategy be improved?Timestamps:00:00 - Introduction 2:27 - Spending Down Cash4:14 - Funding in Retirement5:58 - Sustainable Withdrawal Rates8:54 - Withdrawing Cash Instead of St...

In this episode of Ready for Retirement, James discusses 8 important planning opportunities from the SECURE Act 2.0Questions Answered: What are the major changes from the SECURE Act 2.0?What are the best strategies to implement from the SECURE Act 2.0?How can your overall retirement strategy be improved?Timestamps:00:00 - Introduction 3:14 - SECURE Act 2.0 Overview4:22 - RMD Changes6:52 - Tax Planning Window Changes9:04 - Roth Conversions12:05 - 529 Plan to Roth IRAs19:38 - RMD Spou...