5 Things You Should Evaluate During Medicare Open Enrollment, #328
Retire With Ryan
Medicare open enrollment is here, running from October 15th to December 7th, and it's especially important for those who rely on Medicare. Plans change each year—and so may your needs. Not reviewing your Medicare coverage could leave you exposed to unexpected costs or disrupt your access to preferred doctors and medications. On this week's show, I explore five key steps to help ensure you get the right coverage for 2027. You will want to hear this episode if you are interested in... [01:40] Reviewing Medicare coverage for 2027 [02:49] How to check provider status: annual notice of...
info_outline
Year-End Tax Moves For Pre-Retirees To Consider in 2026, #327
Retire With Ryan
For those actively planning for a secure retirement, smart tax planning is essential—especially as 2026 comes to a close. Tax laws and contribution limits keep evolving, and timely adjustments can help you keep more of your hard-earned money. On the show this week, I share seven critical tax strategies that can boost your retirement savings while minimizing your tax liability. Here’s a deeper look at each move and how to integrate it into your financial plan. You will want to hear this episode if you are interested in... [01:41] Maxing out pre-tax retirement plans [04:32] Making...
info_outline
Social Security 2027 COLA Update, #326
Retire With Ryan
I break down the upcoming Social Security cost-of-living adjustment (COLA) for 2027, share my predictions on the new numbers, and explain what you should do to prepare. With inflation still affecting retirees, I explain how the COLA is calculated, what it means for your benefits, and the factors that could affect your retirement income next year. This episode has essential tips to help you make the most of the upcoming increases and manage your retirement finances confidently. You will want to hear this episode if you are interested in... [01:10] projected 2027 COLA estimates ...
info_outline
What If I Retire Right Before A Market Crash? #325
Retire With Ryan
What should you do if the stock market crashes right after you retire? In this episode, I discuss what happens if you experience a major market decline in your early retirement years, explain the concept of sequence of return risk, and share a few strategies to safeguard your hard-earned nest egg and maintain peace of mind. You will want to hear this episode if you are interested in... [01:20] What to do if the stock market crashes right after retiring [04:09] Sequence of return risk explained [07:14] Preparing for market declines in retirement [13:43] Tax strategies during market...
info_outline
What Happens To My HSA When I Enroll In Medicare? #324
Retire With Ryan
How much have you thought about Health Savings Accounts (HSAs) and what happens to them once you enroll in Medicare? Whether you’re nearing age 65, wondering if you can keep contributing to your HSA, or curious about how you can use your HSA funds in retirement, this episode covers it all. I explain the rules around HSA contributions after enrolling in Medicare, the types of medical expenses you can pay for tax-free, and what happens to your HSA if there’s still money in it after you pass away. You will want to hear this episode if you are interested in... [01:51]...
info_outline
5 Tax Mistakes To Avoid In Your Initial Retirement Years, #323
Retire With Ryan
As you transition into retirement, tax planning might not be at the top of your to-do list—but overlooking it can lead to costly mistakes. This week, I break down the five biggest tax pitfalls new retirees face, from unexpected taxes on Social Security benefits to costly Medicare premium surcharges and missed Roth conversion opportunities. I’m also sharing a few of my favorite strategies to avoid unnecessary state taxes and manage your retirement distributions with confidence. You will want to hear this episode if you are interested in... [01:45] Without planning, your risk...
info_outline
5 Year Roth IRA Rule People Get Wrong, #322
Retire With Ryan
Roth IRAs are a powerful retirement tool, much loved for their promise of tax-free growth and withdrawals. But embedded in the rules for Roth IRAs are two little-understood 5-year rules. Misunderstanding these can trip up even savvy savers, potentially exposing your hard-earned gains to taxes and early withdrawal penalties. This week I’m giving you an expert breakdown to clarify how the rule works and bust some common misconceptions. You will want to hear this episode if you are interested in... [01:13] Tax-deferred growth and conditions for tax-free distributions [05:39] Taxes...
info_outline
4 Best Options To Pay For Long-Term Care, #321
Retire With Ryan
Long-term care coverage is an essential, yet often misunderstood, aspect of retirement planning in the United States. Although many people will require some form of long-term care as they age, most are unprepared for the high costs and limited coverage options available. On the show this week, I’m debunking common myths like the notion that Medicare will fully cover all long-term care costs and taking a deep dive into the four main ways retirees can pay for these expenses. You will want to hear this episode if you are interested in... 00:00 Understanding the options for...
info_outline
Are Bonds Still A Good Investment For Your Retirement Portfolio, #320
Retire With Ryan
On the show this week, I’m helping you understand why bond prices have been dropping, what actions investors should take, and whether bonds still have a place in a retirement portfolio. I discuss the different types of bonds and how interest rates impact bond prices. I also dig into the importance of maintaining a diversified portfolio and the role bonds can play in reducing overall volatility during retirement. You will want to hear this episode if you are interested in... [02:03] Types of Bonds and issuers [03:21] Risks of investing in junk bonds [04:39] Why have bond prices...
info_outline
Top 5 Reasons Retirees Run Out Of Money, #319
Retire With Ryan
Retirement is often imagined as the reward after decades of hard work—a time for travel, relaxation, and quality time with loved ones. But for many Americans, the anxiety of running out of money casts a long shadow over these golden years. Studies reveal that concerns about outliving savings are more prevalent than fears of dying prematurely. This week we’re discussing the five key reasons retirees run out of money and sharing practical steps you can take to secure your financial future. You will want to hear this episode if you are interested in... [02:16] Even high-income...
info_outlineOn this milestone 300th episode of the Retire with Ryan podcast, I dig into whether the Social Security lump sum payment option is right for you. After a client reached out with questions about whether accepting a lump sum is a good deal, I want to break down how the option works, who it’s available to, and the key factors to consider when making this important decision. If you’re approaching retirement, this episode offers practical guidance on weighing the lump sum versus higher monthly benefits, health considerations, and the impact on survivor benefits and taxes.
You will want to hear this episode if you are interested in...
-
[00:00] Getting started with Social Security
-
[05:22] monthly Social Security benefit calculations
-
[06:11] Reasons to take the lump sum
-
[07:48] Health concerns and social security benefits
-
[08:27] When passing on the lump sum is a better choice
-
[10:24] Your lump sum may increase your taxable income
Should You Take the Social Security Lump Sum?
When you apply for Social Security after your full retirement age (FRA), the Social Security Administration may offer a lump sum payment. This option is generally given to individuals who delay collecting benefits past their FRA. The lump sum typically covers up to six months of retroactive benefits.
For example, if your FRA is 66 and you apply a year later, you might be eligible for a lump sum equal to six months of prior payments. However, there’s a catch: your monthly benefit will be calculated as if you started receiving Social Security six months earlier, resulting in a lower monthly payment going forward.
The Math Behind the Decision
Let’s look at the numbers. Suppose your current monthly Social Security benefit is $2,500. If you elect the lump sum, your payment will be based on your benefit from six months ago—roughly 4% lower, or about $2,350 per month. You would receive a lump sum ($2,350 x 6 = $14,100), but your ongoing monthly benefit would start at the lower amount. Dividing the lump sum ($14,100) by the monthly difference ($150) gives about 94 months, or almost eight years. In other words, it will take eight years of receiving the higher benefit to make up for not taking the lump sum.
Reasons to Take the Lump Sum
There are situations where the lump sum makes sense:
1. Immediate Financial Need:
If you have bills, a major expense, or want to fund something important like a vacation, accessing the lump sum offers flexibility.
2. Health Concerns:
If your health is poor, the lump sum may be preferable. Social Security benefits cease at death, except for a $255 survivor payment. Taking the lump sum ensures you receive more of your entitled benefits within your lifetime.
Reasons to Decline the Lump Sum
For many, passing on the lump sum will be the wiser move, if you’re healthy and likely to live at least eight years, your higher monthly benefit will surpass the lump sum. Something else to consider is if you’re the higher-earning spouse, your survivor’s benefits will be based on your monthly payment. Opting for a lower benefit reduces what your spouse would receive after your passing.
Future cost-of-living increases are based on your initial benefit. Starting at a lower monthly payment means smaller dollar increases over time. Historically, Cost of Living Adjustments (COLA) average 2.8% per year; these can add up and compound. You also need to remember that receiving a lump sum may increase your taxable income for that year, possibly pushing you into a higher bracket or increasing taxes on your Social Security benefits. Ultimately, the decision is highly personal. Assess your health, financial needs, family longevity, and whether your spouse would depend on your benefit. Crunching the numbers will clarify your breakeven point.
Resources Mentioned
-
Subscribe to the Retire with Ryan YouTube Channel
Connect With Morrissey Wealth Management
www.MorrisseyWealthManagement.com/contact