Retirement Starts Today Radio

Since 2020 was the year of working from home, you may be wondering how you can deduct your home office expenses from your taxes now that tax time is upon us. For this reason, we explore an article written by Jeffrey Levine at Kitces.com. Learn the home office deduction rules and discover if they will apply to your situation. Outline of This Episode [2:12] The specifics of the home office deduction [9:19] How to calculate the home office deduction [11:55] Should he open an additional IRA? Who is eligible for the home office deduction? Many small business owners can claim a home office deduction as a tax break. However, not every person working from home can claim this deduction. For instance, the deduction is not accessible for employees who work from their own home offices. People owning partnership interests, on the other hand, are potentially eligible for this deduction. There are specific rules that need to be followed in order to determine whether your home office qualifies. What are the rules to claim

If 2020 has taught us anything it is that the future is not always certain. This has brought about feelings of insecurity and anxiety in some people. That’s why this week, I share an article from Harvard Business Review which describes how people can use micro-planning and biomimicry to combat feelings of uncertainty brought on by this post-pandemic world.  After the retirement headlines, I’ll answer two listener questions. John asks about maxing out his HSA after 50 and Val is trying to decide between a pension and a lump sum payment. Don’t miss out on the latest episode of Retirement Starts Today; press play now! Outline of This Episode [1:22] How to plan your life when the future is foggy [3:19] The six steps to learn from biomimicry [7:35] How much can a person contribute to an HSA when they are over 50? [9:28] Should Val take a lump sum or an annuity? Micro-planning can help you take command of your life again Did Covid-19 toss your 5-year plan out the window? Many of us have had our future plans shake

Are you signed up for the My Social Security account from the Social Security Administration? In this episode, we’ll review a Kitces.com article written by Jeffrey Levine about this important resource. We’ll review the history of My Social Security, how to sign up for it, how its benefit calculations account for inflation, and how Americans can interpret its information in order to understand their social security benefits. Don’t miss this excellent opportunity to review a very important topic. Press play to listen. Outline of This Episode [2:28] How to access your My Social Security account [5:22] What can you do with your My Social Security account? [10:04] A question about my podcast host [11:28] Rusty needs to create about $50,000 of income each year - how should he do it? Background information on My Social Security From 1990 to 2011, the Social Security Administration mailed paper copies of Social Security statements to most American workers. These statements summarized their personalized retirement a

Despite the economic downturn, 2020 turned out to be a fantastic year for charitable giving. In this episode, we’ll look at how people chose to give and you’ll learn about the efficiency of giving through donor-advised funds (DAFs).  In the listener questions segment, you’ll learn how to survive a bear market in retirement. We’ll investigate the length of the average bear market and see how you can prepare for the worst in your retirement years.  Outline of This Episode [1:42] 2020 was a banner year for giving [4:48] Planning ahead can help alleviate a hefty tax bill [10:49] What is the average length of recovery from a bear market? [17:04] Look into Guyten’s Guardrails Shwab and Fidelity both showed an increase in giving You would think that with the economic downturn of the last year that people would tighten their bootstraps and cease giving to charities, but it turned out that the opposite was true. The two largest brokerage firms, Schwab and Fidelity, recorded increases in charitable donations.  Donati

If you’ve been working from home over the past year you may wonder why you feel even more exhausted than normal. This could be due to Zoom Fatigue. In this episode, we’ll explore an article from CNBC that references a Stanford study about this phenomenon. In the listener questions segment, I’ll answer questions about RMDs and Roth conversions. Let’s get to the bottom of your exhaustion--press play now.  Outline of This Episode [1:22] Zoom fatigue affects people on a psychological level [3:26] Solutions for Zoom fatigue [6:17] Future tax rates and RMDs [10:44] How to pay for Roth conversions? Why are we so exhausted after video conferencing? Over the past year, many of us have been using Zoom and other video conferencing applications to replace in-person meetings. The constant video conferencing has led to increased fatigue at the end of the day and a researcher with Stanford University wondered why. Jeremy Bailenson researched this issue and recently published a paper about how video conferencing affects pe

You have fraud protection on your bank accounts and your credit cards, but what about your retirement accounts? Today we’ll explore an article from the Wall Street Journal outlining a case of cyber fraud in a 401K account. We’ll also discuss ways for people to safeguard their savings.  In the listener questions segment, I’ll answer a question about buying an RV in retirement and we’ll wrap up this episode with a question from Hal about whether to make Roth conversions or pay off the mortgage. Press play to get started on this episode of Retirement Starts Today.  Outline of This Episode [1:22] Retirement accounts are not offered the same protections as 401K accounts [3:04] Steps you can take to protect yourself from cyber fraud [6:20] John asks whether to get a loan for his RV or use his retirement account [12:36] Hal asks, Roth conversions or pay off the mortgage? Retirement accounts are not offered the same protections as 401K accounts Our retirement headline this week is titled Retirement Planning Gives B

If you have listened to the news at all lately, you probably know what our Retirement Headlines segment will cover. The American Rescue Plan is all any financial news is talking about these days, so in today’s episode, we’ll explore what you need to know about this recent piece of legislation.  Then in the Listener Questions segment, I answer the question: should having a pension change the way we invest the rest of our portfolio? Press play to find out.  Outline of This Episode [1:22] Eligibility has been expanded in this new round of stimulus checks [5:36] What does this mean for you? [9:22] What wasn’t included in the American Rescue Plan? [12:10] How to invest if you are in line to receive a pension? Eligibility for stimulus checks has changed The American Rescue Plan is all over the news lately, but the article that I am referencing is written by Jeffrey Levine from Kitces.com titled The American Rescue Plan Act Of 2021: Tax Credits, Stimulus Checks, And More That Advisors Need To Know!  The most talke

Enrolling in Medicare can be extremely stressful and confusing. There are so many choices to make, there are different rules to follow, and timelines to be met. Additionally, there is so much information out there that it merely adds to the confusion.  On this episode of Retirement Starts Today, I share with you an article written by Joanne Giardini-Russel from Advisor Perspectives entitled, 5 Tips to De-Stress the Entry into Medicare. If you are starting to dive into the Medicare enrollment process you won’t want to miss these 5 tips.  Make sure to stick around for the listener questions segment to hear a question about enrolling in Medicare as an expat as well as whether you should be doing Roth conversions if your income will decrease. You’ll also learn why it has taken me a year to get around to answering some listener questions! Outline of This Episode [1:32] 5 Tips to lessen the stress of the entry into Medicare [6:14] As an expat would it make sense to buy plans G or N now or wait? [9:43] Should you d

How long have you been saving for retirement? Are you hesitant to break into your retirement funds and start living it up once you retire?  This week I share two Retirement Headlines articles. The first is called Right-Sizing Retirement and it comes from the Financial Planning Association. In this article, the authors pose an important question: why save for retirement if you're not going to spend it? We’ll also check out another article from Wharton Magazine entitled The Economics of Living to 100. Is your retirement plan ready for you to live until 100? Listen to this episode to understand how you can best combat the uncertainty that retirement brings. Outline of This Episode [1:42] Right-sizing retirement [6:28] Combat uncertainty with contingency planning [7:22] What if you live until 100? [11:50] There is a need for longevity income [13:39] What is your plan B? Why are Americans underspending in their first 10 years of retirement? David Blanchett and Warren Cormier recently wrote an article for the Fin

Have you heard of the Monte Carlo retirement projection analysis? It is being used more and more by advisors and even popular retirement planning websites. Today, in the Retirement Headlines segment, I offer some insight on an article from Kitces.com that argues that using the Monte Carlo projection, a 50%probability of success rate is good enough. Then in the listener questions segment, I answer the question: what should you do if you plan on never retiring? Don’t miss out on my 5 step plan for those that plan on never retiring.  Outline of This Episode [1:32] A 50% probability of success is actually a viable Monte Carlo retirement projection [7:34] Your retirement plan doesn’t have to be carved in stone [11:11] What should you do if you plan on never retiring? [16:00] Steps to follow if you don’t plan to retire What is the Monte Carlo analysis? The Monte Carlo analysis is increasingly becoming the most common method of conducting retirement projections for clients. I use it in my own practice and many onl

Have you wondered why the markets had such an amazing year in 2020 when the economy was a mess and everyone was stuck at home? You aren’t the only one. That’s why in this episode, we’ll look at a New York Times article that examines this question.  We’ll also answer some listener questions directly from our newsletter readers. Dave asks about dividend investing in retirement and Brian asks about how to pivot away from target-date funds after retiring.  Outline of This Episode [1:22] How data can help us understand the stock market’s response to Covid 19 [7:50] Is it better to reinvest dividends from stock funds and interest from bond funds in retirement? [10:30] Should you maintain your assets in a target-date fund after retirement? Covid brought about even bigger differences between the haves and have nots Recently the New York Times investigated Why Markets Boomed in a Year of Human Misery. This article analyzed the income, spending, and savings levels from March through November of 2020 and during that s

Has the Covid-19 pandemic cut into your vacation plans? It seems like everyone’s travel plans have changed over the past year. But what does that mean for employees and companies? Anne Steele and Chip Cutter examine the effects of Covid-19 and vacation taking in a recent Wall Street Journal article that we’ll look at today.  In addition to our Retirement Headline, I’ll answer two listener questions. One is about Medicare before age 65 and the other about investing in bonds. Grab your favorite listening device and join me to help you get retirement ready. Outline of This Episode [1:22] Many people aren’t taking time off right now [6:10] Will Rich’s wife qualify for Medicare after he retires? [10:28] Should we own bonds with these low interest rates? Working too much decreases productivity We have discussed the importance of taking vacations on Retirement Starts Today before. And if you have listened in the past you know that vacations actually increase worker productivity and boost morale. However, this past

Has the news about the ups and downs in the market lately got you a bit worried? You aren’t the only one. Many people are even thinking about pulling their money out in case there is a market correction. Does this sound like you? If so, you’ll definitely need to listen to this episode.  When you press play you’ll hear what would happen if you only invested at the market peaks, what to do with an inherited IRA, and what the benefits are of an umbrella insurance policy.  Outline of This Episode [1:25] What if you only invested at market peaks? [5:21] What to do with an inherited IRA? [9:00] The benefits of an umbrella insurance policy What if you only invest at market peaks? Have you ever wondered what would happen if you invested at all the wrong times? Our retirement headline this week is from Ben Carlson who reflects in his widely read 2014 piece, What If You Only Invested at Market Peaks? In his newest article with the same title, Ben introduces a video illustration to turn his story of the world’s worst

Are you setting yourself up for a single-ply retirement? Do you find yourself trying to save money out of habit rather than necessity? Listen to the retirement headlines segment to find out why this may not be the best idea in retirement.  In the listener questions segment, I actually have a listener answer. I asked the subscribers of my Every Day is Saturday newsletter what they were doing to combat Zoom fatigue and Ann replied with a detailed answer. After that, we’ll analyze Social Security claiming strategies and discuss retirement rebalancing strategies.  Outline of This Episode [2:02] What might it feel like to be frugal by choice rather than by default? [5:46] What is your strategy to step away from Zoom calls and recharge your batteries? [8:48] Social Security claiming strategy [11:42] When is the right time to rebalance? How would it feel to be frugal by choice rather than by default? Do you find yourself making money-saving decisions out of habit? Are you like Tim Ferriss and who still buys single

I figured that you all may be a bit sick of hearing the news lately which is why this week’s episode will focus only on listener questions without the Retirement Headlines segment. I’ve got 2 listener questions that will pique your interest. Chris asks about long term care insurance. What is the difference between hybrid and traditional policies and when can someone self insure? And Janet wants to know about the tax benefits of life insurance to fund your retirement. Don’t miss the answers to these complex questions, press play now! Outline of This Episode [1:22] Chris has a long-term care insurance question [8:33] Consider your home equity as a quasi-long-term care policy [10:09] Janet is curious as to how life insurance could be used as a tax strategy Do you even need long term care coverage? The question of how to pay for long term care comes up when creating every retirement plan. It is extremely difficult to plan for long-term care due to the myriad unknowns. Will you even need coverage? This question

I’m feeling optimistic this year and I want to continue to spread that optimism. That’s why I want to focus several shows on travel. Most people’s travel plans were foiled by covid in 2020, so 2021 will be the year of the vacation! We’ll be interviewing experts and discussing the mental and physical health benefits of travel. We get started on that road today with a Retirement Headline from Harvard Business Review.  Outline of This Episode [1:52] Let’s explore the relationship between well-being and time away from the office [5:02] What should Seth’s mom do with her $500,000 portfolio? Are fewer vacation days negatively impacting your work? You have probably heard that without recovery periods, your ability to perform tasks effectively diminishes significantly. However, this is in direct conflict with the common practice of powering through work without a break.  The Harvard Business Review performed a study with the US Travel Association to help understand the relationship between wellbeing and taking time

Would you want to raise your standard of living for half of what you live on now? Tim Leffel did, which is why he chose to uproot his family from their life in Nashville to move to a small city in Mexico. Tim is the author of the book A Better Life for Half the Price and he joins me today to discuss the pros and cons of living abroad. Don’t miss the opportunity to learn how you can save money by living abroad. Tim is an expert in the subject and has written extensively about this topic. Listen in to hear this interview.  Outline of This Episode [1:22] What made Tim decide to live in Mexico? [5:06] Why did he rent before buying? [7:08] What are examples of how he saves money by living in Mexico? [10:45] Do you need to know Spanish before moving to Mexico? [13:55] Why would people not want to move abroad? Why did Tim choose to move to Mexico? Tim and his wife have traveled extensively and even lived in Seoul, Korea, and Istanbul, Turkey when they were young. When they had their daughter they knew that they d

I’m thrilled to be back sharing the latest retirement headlines with you after my short holiday break. The biggest news on the retirement radar this week is that the 2nd Coronavirus stimulus package has passed. Together, we’ll take a look at the most relevant parts. Then I’ll answer the question: do you need a Roth IRA even if you make more than the income limits allow for? Let’s start preparing for tomorrow by learning today. Press play now.  Outline of This Episode [1:22] What will the Coronavirus stimulus package bring for us? [7:19] Health expenses are now deductible after 7.5% AGI [9:07] Standard deduction + $600 if you are married filing jointly in 2021 [10:45] Unemployment benefits have been extended [13:09] Does Janet need a Roth IRA? Will you be cashing a $600 stimulus check? The 2nd Coronavirus stimulus package has recently been passed and rather than have you read this 5500 page piece of legislation, I’ll cover the highlights that most pertain to you. Jeff Levine, @CPAPlanner on Twitter was a gre

Welcome back to another edition of Retirement Rewind -- episodes so good we played them twice!  Time for travel is by far the number one thing that Retirement Starts Today Radio listeners look forward to in retirement. That’s why I interviewed David Jacoby on to this episode and why it was chosen as a Retirement Rewind.  David Jacoby is a financial planner and travel expert who specializes in helping travelers and expats. David, himself has lived in 4 different countries and even built his business while living abroad. On this episode, he’ll help us understand the unique aspects of retiring abroad. If travel abroad piques your interest then you won't want to miss this interview. Outline of This Episode [2:06] The 3 types of people that are interested in travel abroad [5:22] When does traveling extensively turn into living abroad?  [9:10] How to determine where you might want to live? [13:33] How do people plan for their elderly years? [15:26] How does health insurance work when you live abroad? [17:42] What

Welcome to this episode of our Retirement Rewind. Retirement Rewind episodes are so informative that we decided to play them again while I take the month of December to spend a bit more time to enjoy my family. Estate planning attorney, John Ross from the Big Picture Retirement podcast, joins me to discuss how you can preserve your IRAs for your heirs in the wake of the SECURE Act. Check out this interview to discover how to optimize legacy tax planning, how to utilize an accumulation trust, and learn about the charitable remainder trust. Outline of This Episode [1:22] How has the loss of the stretch IRA changed estate planning? [4:06] An accumulation trust may be the key to planning your estate [6:44] A new opportunity for state income tax planning [9:22] How to turn a 10-year stretch into a 20-year stretch [16:32] A case study [18:44] You may want to consider a charitable remainder trust How has estate planning changed with the elimination of the stretch IRA? The SECURE Act brought about huge changes to e