Inside the new Tax Rules for Retirees
Retirement Starts Today
We’re going inside the new tax rules for retirees. From a brand-new $6,000 deduction for seniors to major changes in how charitable giving is handled, the One Big Beautiful Bill Act has reshaped key parts of the retirement tax landscape. We’ll break down what’s changed, what’s just political spin, and what you can do right now to take advantage of these new rules. After that, we answer a listener question: Have you ever wondered what the letters behind a Financial Advisor’s name mean? Resources: John Manganaro article from ThinkAdvisor: Article from Fidelity...
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Why Financial Independence is Overrated
Retirement Starts Today
Nick Maggiulli’s latest article in Of Dollars & Data challenges one of the core ideas that drives personal finance blogs, podcasts, and even some of our own thinking — the belief that financial independence should be the ultimate goal. We explore the surprising downsides of chasing early retirement, the difference between financial independence and financial freedom, and why something called “Coast FIRE” might be the real goal worth aiming for. I also answer a listener question: What can retirees do to fight back against inflation? One listener asks how to protect their buying...
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The (F)Law of Averages
Retirement Starts Today
The (f)law of averages challenges a dangerous assumption we see far too often in retirement planning: The use of average life expectancy as a reliable planning target. The question is: If you make it to retirement - are you already above average - and if that’s true, how do we use that in our planning? I share six key takeaways from the article: Life expectancy is an average, not a prediction The mode — not the mean — may be more useful for planning Life isn’t neat and tidy Even “complete” life expectancy isn’t safe to use Relying on life expectancy is a...
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Live on $2,972 monthly in an RV
Retirement Starts Today
Could heaven be an RV in a state park? It is for Marian Barry, who became a traveling nurse after working in hospitals during the pandemic. We share this story from a Business Insider article, pointing out that she lives on $2,972 a month in Social Security and is lovig life. "I literally live in heaven." Key takeaways: Low-cost retirement living Lifestyle vs. possessions Community and mental well-being Flexibility in retirement Pursuit of happiness If any of this interests you - practice it first! Then I share some of my thoughts from our Spring client meetings. I found some common...
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Spending Drops in Retirement, but Satisfaction Doesn't
Retirement Starts Today
New research from David Blanchett, head of retirement research at PGIM, challenges one of the biggest assumptions in retirement planning: that happiness in retirement depends on maintaining a constant—or even increasing—level of spending. ⬇️ Upon entering retirement, households experience a median consumption decline of about 20%. This drop is often viewed as a red flag in traditional financial planning models. However, Blanchett argues that this decline is not necessarily problematic, especially when you look at how financial well-being changes over time. ☎️ Then on our listener...
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One Big Beautiful Podcast Episode
Retirement Starts Today
There is a lot to cover in this episode, including new legislation that could impact your retirement. Plus, 6 More Retirement Financial Myths to Avoid, and a listener with substantial assets who wants to know how to pay for a new car. The OBBB The One Big Beautiful Bill became public law on July 4, 2025. Included are: Lower Tax Brackets Are Now Permanent Larger Standard Deduction New Senior Bonus Deduction (2025–2028) Above-the-Line Charitable Deduction (2026–2028) Expanded SALT Deduction ACA Subsidy Planning Alert New Car Deduction If you’re a client of ours -...
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Mailed, Stolen and Cashed: a $114,000 Retirement Check
Retirement Starts Today
This week’s headline reads like a financial horror story — and unfortunately, it’s a true one. 😱 33-year-old Mr. Handy changed jobs and did what millions of Americans do every year: he requested a rollover of his 401(k). Paychex, the provider managing his old employer's plan mailed him two paper checks: one for his traditional 401(k), and one for his Roth 401(k). They were intercepted in the mail, and over $114,000 vanished. Gone. Just like that. This situation raises some serious questions. According to a recent report from Capitalize, 43% of people doing rollovers are still being...
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Monetizing a Hobby in Retirement
Retirement Starts Today
According to BankRate, 23% of Americans 60-78 have a side-hustle. Maurie Backman says in an article by Kiplinger that this would help with two key areas in retirement planning: It provides us with something fulfilling to do after our primary career and provide a little extra cash in retirement. The benefits of a side hustle: Mental Engagement Extra Income Social Connection Sense of Purpose The Pitfalls of a side hustle: Tax Complications Outspending your retirement budget in search of business profits Medicare Premium Creep (IRMAA) Lifestyle Clash Time Commitment Also in this...
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Why Are So Many Retirees Filing for Social Security Early?
Retirement Starts Today
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The Father of the 4% Rule - an Interview with Bill Bengen
Retirement Starts Today
If you've been anywhere close to a retirement podcast over the last 10-20 years, you've heard of the 4% rule. And like many people, you might have questions about it. We're going to hear about it directly from the horse's mouth as we talk to Bill Bengen, who first articulated the 4% withdrawal rate as a rule of thumb for withdrawal rates from retirement accounts. The 4% rule is not a rigid rule but a guideline. Its application requires careful consideration of individual factors, including health, life expectancy, and specific financial circumstances. Bengen encourages retirees to tailor their...
info_outlineWhat do you do with RMDs you don’t actually need?
If you’re retired and over age 73 — or 75 if you were born in 1960 or later — you know the IRS requires you to start taking Required Minimum Distributions (RMDs) from your traditional IRAs and workplace retirement accounts.
Even if you don’t need that money for living expenses, you still have to take it - which means more taxable income, higher Medicare premiums, and a bigger chunk of your Social Security benefits becoming taxable in some cases.
Today I share "6 Strategic Ways to Make the Most of Distributions You Don’t Need", an article by Greg Hammons from TheStreet.com.
- Reinvest in a Taxable Brokerage Account - super straightforward.
- Make a Qualified Charitable Distribution (QCD)
- Use RMDs to Fund Life Insurance
- Cover the Taxes on a Roth Conversion
- Fund a 529 Plan for Education
- Give to Family—Tax-Free
So what’s the best move for you?
That depends on your goals—whether it’s growing your money, reducing taxes, helping your family, or supporting a cause. But the key message is this: RMDs don’t have to be a tax burden. With some intentional planning, they can be an opportunity.
Before making a move, talk to your financial planner or tax pro. These strategies can have long-term effects on your retirement plan, your taxes, and your legacy.
I also tackle a listener question: "What is your recommendation to cover the gap in sustainable income from pre-retirement (e.g., 60) to Social Security claiming age (e.g., 70)?"
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