When an Annuity Makes Sense: A Real-Life Example with Andy Panko, #232
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...
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Are Donor-Advised Funds A Smart Tax Move? Ep #231
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...
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11 Potential Tax Changes Under A Trump White House, #230
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...
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Mistakes To Avoid During Medicare Open Enrollment with Danielle Roberts, #229
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 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...
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2025 Medicare IRMAA Surcharge Updates, #228
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...
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5 Overlooked Tax Benefits of 529 Plans, #227
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...
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Do Small-Cap Stocks Offer Greater Growth Potential Than Large-Cap Stocks? #226
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...
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Will the Outcome of the Presidential Election Impact the Stock Market? #225
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...
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7 Ways to Keep Your Estate from Landing in Probate, #224
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...
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7 Steps To Protect Your Schwab Accounts From Hackers, #223
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...
info_outlineWill 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.
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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
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