Retire With Ryan

If you’re 55 and older and thinking about retirement, then this is the only retirement podcast you need. From tax planning to managing your investment portfolio, we cover the issues you should be thinking about as you develop your financial plan for retirement. Your host, Ryan Morrissey, is a Fee-Only CERTIFIED FINANCIAL PLANNER TM who lives and breathes retirement planning. He’ll be bringing you stories and real life examples of how to set yourself up for a successful retirement.

When an Annuity Makes Sense: A Real-Life Example with Andy Panko, #232 12/17/2024

Are Donor-Advised Funds A Smart Tax Move? Ep #231 12/10/2024

11 Potential Tax Changes Under A Trump White House, #230 12/03/2024

Mistakes To Avoid During Medicare Open Enrollment with Danielle Roberts, #229 11/26/2024

2025 Medicare IRMAA Surcharge Updates, #228 11/19/2024

5 Overlooked Tax Benefits of 529 Plans, #227 11/12/2024

Do Small-Cap Stocks Offer Greater Growth Potential Than Large-Cap Stocks? #226 11/05/2024

Will the Outcome of the Presidential Election Impact the Stock Market? #225 10/29/2024

7 Ways to Keep Your Estate from Landing in Probate, #224 10/22/2024

7 Steps To Protect Your Schwab Accounts From Hackers, #223 10/15/2024

Can I Do A Roth Conversion Before Age 59 ½? #222 10/08/2024

7 Year-End Tax Moves For Pre-Retirees, #221 10/01/2024

7 Year-End Tax Moves For Retirees, #220 09/24/2024

How To Get More Retirement Income Using Retirement Guardrails with Matthew Jarvis, #219 09/17/2024

How Much Do I Need To Retire? #218 09/10/2024

Will Social Security Become Tax-Free? #217 09/03/2024

How Parents Can Best Manage Student Loans with Erik Kroll, #216 08/27/2024

Breaking Down The IRS's New Finalized Regulations On Inherited Retirement Accounts, #215 08/20/2024

New NAR Rules Governing Real Estate Sellers and Buyers With Raquel Fernandez, #214 08/13/2024

Financial Steps To Take After A Divorce, #213 08/06/2024

Financial Steps To Take During Divorce With Renée Bauer, #212 07/30/2024

Financial Steps To Take Before Divorce, #211 07/23/2024

Financial Steps To Take Before Divorce, #211 We’ve all heard the statistics that almost half of all marriages end in divorce. And divorce comes at a large cost. That’s why you should come up with a plan for life after divorce. Look at your net worth, put together a budget, and make projections for your future. Let’s get you prepared as you can be. To do that, I’m launching a three-part series on navigating the financial considerations when going through a divorce. No one wants to plan for the demise of their marriage. I get it. But if you know you’re about to go through the process, there are steps you can take to make it easier. <<PLAYER>> You will want to hear this episode if you are interested in... [2:04] Do half of all marriages end in divorce? [4:50] Gather key financial documents [7:59] Take a look at your income [8:18] Consider potential job opportunities [9:03] Look at your individual credit score [9:40] Consider working with a financial planner Gather key financial documents If you aren’t managing the household finances, this is especially important. You need to understand how your household is doing. Gather things like: Checking, savings, and investment account information. You need to know where the money is and how much is held in the accounts. Have an idea of what property you own (which may be easy if it’s simply your primary home). Know the value of any assets you have. What debt do you have? Do you have credit card debt, lines of credit, mortgages, or other personal loans? Know what you owe (and how debt may be split when divorced). What are your household expenses? What are you spending? Look at things like insurance, utilities, home maintenance costs, etc. Do you have any retirement accounts or pensions? What will your Social Security benefits look like? Take an in-depth look at all of this information. When you divorce, that net worth will be divided in some way. Getting a handle on that is important to understand the changes you’ll need to make. Take a look at your potential income You can contact your accountant to get that information if you don’t have it readily available (or can’t get it from your spouse). If you’re not working, it’s time to get a handle on what you may be able to earn if you go back into the workforce. If you won’t have income or assets to support yourself, consider the job opportunities available to you. What are your skills? What jobs are out there? Can you improve your skills by taking courses? Do you have any licenses you’ll have to renew? What does your individual credit score look like? After a divorce, you might have to take out additional loans for a mortgage, car, student loans, etc. You’ll need good credit to do that. If you don’t have a good credit score, look into ways you can improve it quickly. This is a great time to engage a financial planner for assistance. Listen to hear other things you’ll need to consider when going through a divorce. Resources Mentioned Subscribe to the Get my free and Connect With Morrissey Wealth Management /episode/index/show/retirewithryan/id/32203132

4 Ways To Get More Money Into Tax-Free Roth Accounts, #210 07/16/2024

4 Ways To Get More Money Into Tax-Free Roth Accounts, #210 Why would you want to make a Roth contribution? If you believe tax rates will be higher in the future, it could benefit you. How? The contributions grow tax-deferred. When you withdraw the money, it’s tax-free. A tax-free income can be very beneficial in retirement. In 2024, you can contribute $7,000 to a Roth IRA. If you’re over 50, you can contribute $8,000. However, there are income limits for the contributions. Individuals who make over $161,000 can’t contribute. Thanks to the 2017 tax cut, there are some additional ways you can contribute to a Roth IRA. I cover four ways you can get money into Roth accounts in this episode of Retire with Ryan. <<PLAYER>> You will want to hear this episode if you are interested in... [1:34] How to make a traditional Roth IRA contribution [4:06] Option #1: The Backdoor Roth IRA [8:06] Option #2: Contribute to a Roth 401K [9:16] Option #3: Do a Roth conversion [13:17] Option #4: A Mega Backdoor Roth IRA Option #1: The Backdoor Roth IRA Let’s say you’re contributing to a Roth IRA indirectly (I talked about this in episode #176). To do that, you have to set up both a transitional and Roth IRA with the same company. Then, you make a non-deductible contribution to your traditional IRA. After that, you fill out a request form to convert that money to the Roth IRA. They’ll move it for you. What’s the biggest mistake you have to avoid when doing this? Listen to find out! Option #2: Contribute to a Roth 401K If you have the option to contribute to a Roth 401K, use it. Why? Because there are no income limits on who can contribute to a Roth 401K. You could make well over the limits to contribute to a Roth IRA and still make a contribution. In 2024, you can contribute $23,000 to a Roth 401K or $24,500 if you’re over 50. Option #3: Do a Roth conversion Currently, everyone can convert money in a traditional IRA or 401K into a Roth IRA or 401K. Let’s say you have $100,000 in an IRA that you want to convert. You’d have to pay Federal and State tax on the $100,000 you’re converting plus any other earned income for the year. When would this make sense? You don’t have to pay a 10% penalty on the conversion if you’re under 59 ½. Secondly, if you think you’ll be in a higher tax bracket in retirement, and don’t need access to the money now, it might make sense to roll it over. It will have time to make back the money you had to pay in taxes upfront. But your plan has to offer a Roth 401K. You’d choose the amount you want to convert from the traditional IRA to the Roth 401K. You’d pay taxes on the amount you’re converting. 40% of 401K plans offer this feature. But you have to consider if the conversion will push you into a higher tax bracket. Option #4: A Mega Backdoor Roth IRA Some 401K plans allow contributions above the traditional $23,500 limit. The IRS has a . For 2024, that number is $69,000. That’s the total that your employer can contribute to your retirement plan. Let’s say you and your employer contribute $30,000. Because you haven’t hit the maximum, there’s an additional $39,000 that can be contributed to your 401K as an after-tax contribution. Then you have to convert it to your Roth account. That’s the Mega Backdoor Roth IRA. If you’re over 50, you can also contribute the additional $7,500 catchup. Government 457 plans and most 403B plans don’t allow this after-tax contribution. Many 401K plans do. How do you get the most out of that contribution? Find out in this episode! Resources Mentioned Subscribe to the Connect With Morrissey Wealth Management /episode/index/show/retirewithryan/id/32144952

How To Earn More In Your Health Savings Account, #209 07/09/2024

How To Earn More In Your Health Savings Account, #209 One of my favorite ways to save for retirement is through a Health Savings Account (HSA). Too many people overlook a health savings account as a great way to save for retirement and healthcare costs. So how do you get the most bang for your buck out of your HSA? I share some simple strategies that very few people employ in this episode. Disclaimer: I don’t work for Fidelity and they do not compensate me for my reviews. I simply believe it’s a great option for my clients. You will want to hear this episode if you are interested in... [2:14] What is an HSA? [4:03] The tax benefits of an HSA [4:59] Why put money into an HSA [9:17] The bucket approach with HSAs [10:23] How to grow your HSA [13:48] Action steps The benefits of an HSA HSA plans are considered a triple-tax-free retirement account. When you contribute money to the plan, you get a tax deduction on the contributions (reducing your taxable income). The money in the HSA can be invested and grow tax-free. When you take the money out to use it for qualified expenses, it’s tax-free. No other retirement account gives you this benefit. Let’s assume your HSA is offered through your employer. A good HSA is one that allows you to buy individual stocks and bonds or mutual funds at a low cost. If they don’t offer this, you may want to move to another HSA provider. Outside of employer-sponsored HSAs, my favorite provider is Fidelity. If you’re just getting started and you’re not ready to invest the money (it’s being saved for healthcare expenses) you want to at least be earning interest. If you don’t choose the stocks, bonds, or mutual funds you want to invest in, your money is automatically swept into a money market option (with rates around 4.5%). How to grow your HSA In 2024, a single person can contribute $4,150 to an HSA. If you’re eligible for a family HSA, your limit is $8,300. If you’re over 55, there’s a $1,000 catch-up allowance per year. I would max out your HSA every year and prioritize it beyond your 401K. You want to let the money grow so that you’re only spending your gains in the future. That’s why you want to pay most HSA-related expenses out of pocket—not with your HSA. The biggest mistake I see is people spending through their HSA money immediately. When you do that, you won’t see tax-deferred growth. So what do you do instead? If you can, track your expenses on a spreadsheet and keep your receipts. When I pay medical bills, it’s entered into my spreadsheet. Let’s say my family spent $15,000 on medical bills over the last six years and my HSA has $30,000 in it. If I wanted to, I could reimburse myself at any point in time for those expenses, tax-free. Once you turn 65, you can use the money in your HSA for any expenses. It acts just like a 401K. I share my whole strategy in this episode—don’t miss it. Resources Mentioned Subscribe to the Qualified Medical Expenses () Connect With Morrissey Wealth Management /episode/index/show/retirewithryan/id/32024892

Is Social Security Going Broke? #208 07/02/2024

Is Social Security Going Broke? #208 Will 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. <<PLAYER>> 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 Subscribe to the Connect With Morrissey Wealth Management /episode/index/show/retirewithryan/id/31964137

Top Tax Mistakes to Avoid with Steven Jarvis, #207 06/25/2024

Top Tax Mistakes to Avoid with Steven Jarvis, #207 What are some of the biggest tax mistakes you should be avoiding when you file taxes? CPA Steven Jarvis has worked on thousands of tax returns. He focuses on helping people who have a long-term focus. He wants to make sure his clients only pay every dollar they owe and nothing more. It’s not about getting a big tax return. It’s about looking at the long-term picture and being proactive. We dig in and dissect the top tax mistakes you need to avoid in this conversation. You will want to hear this episode if you are interested in... [3:02] Making proactive choices to impact your taxes [4:47] Learning about the foreign tax credit [6:43] Rollovers from 401Ks to IRAs [11:01] Equity compensation and severance pay [13:07] Managing advanced charitable giving strategies [21:10] What you need to know about HSAs [26:32] Pay what you owe—and nothing more Rollovers from 401Ks to IRAs You’ll likely roll over a 401K to an IRA only once or twice in your life. In theory, it should be simple—as long as the rollover is treated as a non-taxable event. It needs to be reported on a 1099-R form, which can be confusing. Tax-adjacent events go on your tax returns but you should not be taxed on them. If you’re working with a tax professional, you need to communicate that you’re doing a rollover. Before the tax return is filed, make sure you look it over to see if your income changed. If it has—and it shouldn't have—a rollover being improperly filed may be the culprit. Managing advanced charitable giving strategies A qualified charitable distribution (QCD) allows you to make a charitable contribution directly from an IRA to a charity. If you donate $1,000, you may save $200–$300 in taxes. If it’s a charity that you care about, great. But if you’re not charitably inclined, spending $1,000 to save $300 doesn’t make sense. But there are some other tax benefits. A QCD comes out of your income before your adjusted gross income is calculated. Why does that matter? Your adjusted gross income is part of the calculation to determine how much you pay for Medicare. Reporting this correctly is key. Most custodians don’t report how much money went to a charity because the IRS hasn’t created a way for them to do it. That’s why you (or your financial planner) must provide this information when your taxes are filed. I will send a breakdown of QCDs, distributions, etc. to my clients so they can report it properly. What you need to know about HSAs Steven sees people penalized for over-contributing to HSAs because the form (8889) is confusing and people fill it out incorrectly. That’s the #1 thing you have to watch out for with these. One of the advantages of an HSA is that it can grow tax-free. If you can pay medical expenses from another source while funding the HSA, you’ll also get a tax deduction. If you don’t need the money for qualified medical expenses down the road, you’ll just have to pay taxes on the money (which you can remove at age 65 without any penalties). If you keep track of your HSA-eligible expenses as you go, and have sufficient documentation, you can also request reimbursement for things that happened in the past. What other issues does Steven find himself correcting frequently? Learn other tax mistakes to avoid in this episode. Resources Mentioned Subscribe to the Steven’s book, “ Connect with Steven on Connect With Morrissey Wealth Management /episode/index/show/retirewithryan/id/31837657

Understanding Current Trends in ETFs with Matthew Bartolini, CFA, CAIA, #206 06/18/2024

How to Evaluate if Your Financial Advisor Is Delivering Value, #205 06/12/2024

What To Expect Once I've Hired A Fee-Only Financial Advisor (Part 4), #204 06/05/2024

How To Find and Hire a Fee Only Financial Advisor (Part 3), #203 05/29/2024

How To Find and Hire a Fee Only Financial Advisor (Part 3), #203 How do you find a fee-only financial advisor who’s the right fit for you? I’ve outlined a detailed process that you can use to not create a list, research your list, and interview and hire the perfect fit for you. I’ll cover it all in this episode. This is Part 3 of a five-part series about financial planners to celebrate the release of my first book, “.” You will want to hear this episode if you are interested in... [1:00] What we covered in last week’s episode (Part 2) [4:05] Step #1: Compile a list of financial advisors [9:46] Step #2: Research the list you’ve compiled [15:00] Step #3: Interview your final list of advisors [23:33] What we’re covering in Part 4 of this series Step #1: Compile a list of financial advisors To compile a list of fee-only financial advisors, you need to ask yourself some important questions: Do you want to work with a local advisor that you can meet with in person? Are you willing to work with someone over Zoom or the phone? Is there a specific specialty that you’re seeking? Do you need help with retirement planning, college planning, or business planning? Many advisors specialize in narrow niches (mine is retirement planning for people over 50). Unfortunately, there isn’t one website you check out to find all of the fee-only financial advisors in the United States. However, one of the resources I like to use is the Certified Financial Planner Board of Standards website. This is the governing body through which people obtain their CFP certification. The only downside of the CFP board is that they allow both fiduciary and non-fiduciary advisors to become members. It’s difficult to act as a fiduciary if you’re a broker or carrying an insurance license. If you do work with a CFP, I always recommend working with one that’s fee-only. You can use any of the sites in the resources below—filtered by location and specialty—to compile a list of potential options. Step #2: Research the list you’ve compiled Start by heading to a financial planner’s website and poking around a little. If they state that they’re a fee-only financial advisor, confirm that. What do they offer? Do they offer financial planning only? Or do they only offer ongoing advice and investment management? Research their background by using BrokerCheck. You don’t want to find them there. Instead, you’d hope to see that they were previously registered (but no longer are). Head to Investment Adviser Public Disclosure to see if they’re a Registered Investment Advisor. They can be registered as brokers and insurance agents as well as an IAR. Look up the specific firm and find their “ADV.” The ADV is a disclosure document that every RIA has to file. This is an easy way to find out if they’re a broker, an insurance agent, or if they have any other conflicts of interest. Look up the individual financial advisor. Download the report to look at their work history and any disclosures or complaints that they’ve had. Once you’ve done this, it’s time to vet your top choices. Head over to my website for the full list of 10 questions that you must ask every potential advisor. Resources Mentioned Subscribe to the “,” Connect With Morrissey Wealth Management /episode/index/show/retirewithryan/id/31405007

Retire With Ryan

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