Tax & Retirement Planning Changes for 2022, Ep #219
Release Date: 11/22/2021
More Muscles = Better Retirement, Ep #345
Retirement Starts Today
A lot of us are looking to get in shape in retirement. This is a good thing since part of living an even better retirement is looking after your health and muscle mass. Staying healthier and more active longer will ensure that you are making the most out of your retirement. In addition, maintaining a healthy muscle mass is a huge part of keeping your health as you age. In this episode, we’ll explore a on keeping your muscles strong as you age. Make sure to listen in to discover some tools that I use to track my health and wellness as I enter the second half of my life. Outline of This...
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Index Funds Have Officially Won, Ep #344
Retirement Starts Today
Do you have index funds in your portfolio? Chances are you do! Our retirement headline today describes the rise of index funds over active funds and why that’s important. Discover how index funds connect with my investment philosophy by pressing play now. Outline of This Episode [1:22] Index funds have grown exponentially over the years [2:23] What are index funds [5:58] How index funds fit into my investment philosophy [10:04] Will my estimated Social Security benefit decrease if I retire before full retirement age? Resources & People Mentioned Connect with Benjamin...
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The 529 to Roth IRA Rollover, Ep # 343
Retirement Starts Today
Recent legislation has made everyone’s favorite college savings plan a little more flexible. Funds in a 529 plan aren’t as locked up as they used to be now that your children’s unused college funds can be rolled into a retirement account. In this episode, we’ll discuss which explores how the 529 can be rolled into a retirement account. We’ll discover the benefits and drawbacks of using a 529 to save for retirement. Listen in to hear whether the 529 rollover could help you in your retirement. Outline of This Episode [2:12] Using unused 529 funds [9:30] Utilizing spend-down...
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The 4 Phases of Retirement, Ep #342
Retirement Starts Today
It may be easy to define success in your working career, but defining success in retirement can be more difficult. What does success look like in retirement? What will you do daily or weekly to get the most out of your retirement? In this episode of Retirement Starts Today, we’ll explore a about the 4 phases of retirement that many (but not all) experience. Click play to hear how you can squeeze the most juice out of your retirement. Outline of This Episode [1:52] How to squeeze the most juice out of retirement [11:18] Help with spending more in retirement Resources & People Mentioned...
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A Short History of the 60/40 Portfolio, Ep #341
Retirement Starts Today
Due to last year's poor market returns, you’ve probably seen the headlines that the 60/40 portfolio is dead. But is that really the case? This week’s retirement headline explores the history of this classic retirement investment strategy. After we tackle the headlines, Bret and I team up to consider the best places to move in retirement. Listen in to hear where not to move. Outline of This Episode [1:52] A history of the 60/40 portfolio [8:09] Why I like 60/40 [15:10] Where should retirees consider moving to for a great retirement? Resources & People Mentioned Connect...
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8 Ways to Become Poor in Retirement, Ep #340
Retirement Starts Today
There are many ways that could threaten your financial security in retirement. Knowing the common issues can ensure that you don’t fall into the traps. Today’s financial headline comes from Yahoo Finance and is called . Listen in to learn what they are so that you don’t drive yourself into the poorhouse. Outline of This Episode [1:22] 8 ways to become poor in retirement [10:58] How can we determine the biases in an advisor Resources & People Mentioned Connect with Benjamin Brandt Get the Retire-Ready Toolkit: Follow Ben on Twitter: Join the newsletter: Dive deeper...
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More Than Half of Americans Want to Retire Gradually, Ep #339
Retirement Starts Today
We all want to retire, but have you considered how you would like to transition to retirement? This week’s retirement headline article shares some interesting statistics on phased retirements: who is thinking about them, who is utilizing them, and what people think about them. Listen in to learn the findings. Then stick around for our listener question surrounding stock positions, diversification, and taxes. Outline of This Episode [1:42] Exploring the idea of a phased retirement [7:12] Can a phased retirement allow you to have your cake and eat it too? [11:38] A book update [13:10]...
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The Retirement Crisis That Wasn’t, Ep #338
Retirement Starts Today
Once upon a time, there was a prediction that the baby boomer generation would face a retirement crisis. So how did this gloom and doom projection turn into the wealthiest generation in history? Listen in to find out. Make sure to stay tuned for the listener question: What is the best way to fund a large expense without a large tax bill? Outline of This Episode [1:37] The accuracy of predictions [7:26] What is the best way to fund a large expense without a large tax bill Resources & People Mentioned Connect with Benjamin Brandt Get the Retire-Ready Toolkit: Follow Ben on Twitter:...
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Using Guardrails For The 4% Rule, Ep #337
Retirement Starts Today
You’ve heard of the 4% rule, and if you’ve listened to this podcast before, you’ve heard of Guyton’s guardrails strategy. But have you ever heard of using them together? Today’s retirement headline explores this idea. Overall, the article highlights the importance of considering sequence-of-returns risk in retirement planning and adopting flexible strategies, such as guardrails, to ensure financial security throughout retirement. Listen in to learn more about this combination of strategies as well as my opinion on the matter. Then stick around for the listener question segment...
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The Challenges of Retiring from a High-Powered Job, Ep #336
Retirement Starts Today
Is it possible to suddenly step away from a high-powered job and into a life of leisure? This may not be the best idea for your retirement if you work at the executive level. In this episode of Retirement Starts Today, we’ll explore an article from that outlines several pitfalls that could come with retiring from a high-powered job and insights on how to navigate them. Stick around for the listener question segment to hear the best ways to give money to your adult children while you are still living rather than waiting until you pass away to leave an inheritance. Outline...
info_outlineNow is a great time to start financial and tax planning for the next year. To do so, you must first look at any changes that were made to tax laws. We’ll do that by exploring 2 articles from Forbes and CNBC which take a closer look at any imminent changes to the tax code.
Then we’ll dive into the main segment with an article from Investment News which claims that fewer retirees are claiming Social Security at age 62. Listen in to hear if there will be any tax and retirement planning changes that affect you and to hear why fewer people are claiming Social Security early.
Outline of This Episode
- [1:42] Changes in tax planning for 2022
- [5:12] Changes in retirement savings plans for 2022
- [8:08] Fewer retirees are claiming Social Security at 62
Tax updates from Forbes
Despite all the news media clamoring that there might be significant tax changes in 2022, there haven’t been many changes. According to an article from Forbes, marginal tax rates will rise slightly. The standard deduction will rise to $12,950 for individuals and $25,900 for married couples filing jointly. Capital gains rates remain unchanged for the next year, however, the brackets moved slightly to keep pace with inflation. Unfortunately, the charitable deduction that was available to nonitemizers in 2021 did not carry over to 2022. The SALT tax cap could possibly increase from $10,000 to a significantly higher number, but as of this recording, it is not yet official.
Retirement plan changes in 2022
Do you max out your 401K? I’m always shocked when I realize how few people actually maximize their savings. Only 8.5% of workers save the maximum allotted amount.
Even though the vast majority of people do not max out their 401Ks, savers will have the opportunity to save even more next year. The employee contribution limit for tax-deferred retirement savings plans will increase to $20,500 which is up $1,000 from 2021. On the other hand, Roth IRA limits will remain unchanged at $6,000.
So despite the dramatic headlines in the financial media earlier this year, very little has changed for tax and retirement planning from 2021 to 2022. We’ll keep you posted if anything new arises.
Fewer retirees are claiming Social Security at age 62
If you are curious about the effects of the baby boom consider this: the number of men who turned 62 has more than doubled between the years of 1997 and 2019. This shocking number makes it easy to be fooled by the number of people who claim Social Security early since the number of people who claim Social Security has risen, but when you look at the percentage of people who claim early the statistics have declined greatly. According to a study at Boston College by the Center for Retirement Research (CRR), the percentage of 62-year-olds who claim Social Security early at age 62 has decreased in the past 20 years.
How has the Covid pandemic affected Social Security claiming age behavior?
Although we won’t have hard data for another year, it looks like some older workers who lost their jobs may have turned to Social Security to help make ends meet. Early evidence shows that the effects of Covid have not pushed large numbers of people into early retirement. This could be because those most affected cannot afford to stop working.
I’m encouraged that folks are waiting to collect Social Security and in doing so growing the guaranteed income portion of their retirement income. Hopefully, this is due to retirees actively making the decision to defer, rather than deferring because they are having to work longer. Whether it is planned or unplanned, deferring will result in a larger benefit for those retirees.
This is our last original episode of 2021 so that I can spend more time over the holidays with my family. We’ll close out the year with a list of my favorite episodes from 2021. Enjoy the holiday season, and we’ll meet again in 2022!
Resources & People Mentioned
Connect with Benjamin Brandt
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- Follow Ben on Twitter: https://twitter.com/retiremeasap
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