Ready For Retirement

In this episode, James talks about key factors that might influence future tax policy. This is especially important for retirees and soon-to-be retirees because a change in your tax bracket could affect your income in retirement. We cannot see into the future, but we can make some predictions about how to best prepare for what taxes will look like in retirement. James talks a bit about the history of federal income taxes to show how even compared to their origins, we are currently close to those historic lows. The average income taxes people are paying today are substantially lower than before. New tax law was signed into place in 2017, but those brackets are going to expire in 2025. For most people, there will likely be an increase of 3-4% in their tax bracket at expiration in 2025.James lists three things that can inform what taxes will look like in the future: 1) the fact that taxes are near historic lows, 2) the national debt levels are rising, and 3) the population is getting older. The government must offset debt by either cutting spending or raising taxes. It looks like there will probably be tax hikes in the future. James then lists some specific strategies you can use to hedge against potential tax hikes, including diversifying your investments and delaying drawing from retirement accounts.Create Your Custom Strategy ⬇️Get Started Here.Join the new Root Collective HERE!

People who have a pension often wonder whether they should convert it into an annuity or a lump sum rollover. This is a huge decision and most people don’t know the right questions to ask that will help guide them while making it as they approach retirement. In this episode, we dive right in by giving listeners some definitions of what annuities and lump sum rollovers are before covering the main things to keep in mind before choosing between the two. The benefits of each are discussed with reference to five main considerations. How will your choice fit into your overall retirement income plan?How much control do you want to maintain?Do you have heirs that you hope to leave assets to?What tax planning opportunities exist in your financial plan?How much risk are you comfortable taking on?As you will see in this informative session, each option has its unique benefits under each of these considerations. Make sure you catch this episode because no matter how unique your situation, the considerations covered shine a lot of light on the most sensible ways to handle your retirement money. Key Points From This Episode:Whether to take a pension out as an annuity or a lump sum rollover.Understanding the difference between an annuity and a lump sum rollover.An initial consideration: what are your different sources of income?The benefit of having security that your income will be managed if choosing an annuity.Knowing the amount you’ll get each month with an annuity plan.Understanding ‘sequence of return risk’ and how a pension reduces it.The fact that people live longer and pensions reduce longevity risk.Less work involved in managing a pension over an investment portfolio.Taking out the rollover if you are not confident in your company.Using more when you need more: the higher level of control a rollover gives you.The ability of a lump sum rollover to be passed on in contrast to a pension.How lump sum rollovers allow for building in inflation adjustments, or COLAs.Converting a taxable lump sum to non-taxable by converting it into a Roth IRA.A warning to be careful of financial advisors who only get paid if you buy their product.Create Your Custom Strategy ⬇️Get Started Here.Join the new Root Collective HERE!

The recent bear market was the fastest in the history of the S&P 500, taking only 16 days for it to fall 20%. For younger investors, this is a great opportunity to buy good stocks at low prices, while for those closer to retirement, it might seem like there is no time to recover. In this episode, James shares a four-part framework which helps you to see if you are still on track with your retirement. Firstly, you need to know how much you are spending before you do a deep-dive into your portfolio. He shares two ways to get a handle on this: The bottom-up and top-down approaches and how they differ. After this, James talks about knowing your income, which includes your non-portfolio resources. Not everything is affected by the turbulent stock market in the same way, so see what’s stable in your portfolio. Then, James highlights the importance of understanding your withdrawals. He provides a formula, which uses a 4% rule of thumb to calculate your withdrawals. The final point James touches on is the importance of diversification. Stocks and bonds fluctuate differently which is why a balanced portfolio helps you weather storms. We don’t know when this bear market will recover, so it is important to implement this four-part framework as soon as possible. Be sure to tune in today!Key Points From This Episode:Bear market: What it is, how it happens and why this one is so scary.Why it is important to get a firm handle on spending.Two different approaches to calculate spending: Bottom-up vs top-down.Know your income and don’t forget your non-portfolio income sources.How to understand your investment withdrawals and calculating them.Different investments have different tax structures, so you need to bear this in mind.A properly diversified portfolio with stocks and bonds is crucial.A look at bear markets and their impacts on retirees throughout history.Tweetables:“Without knowing how much income you need and without knowing what your spending’s going to look like throughout retirement, we have no idea what your portfolio needs to do to endure this.” — @jamesconole [0:02:33] “Diversification is crucial right now.” — @jamesconole [0:14:03]“The time to panic and change everything is not in the midst of a falling market.” — @jamesconole [0:18:18] Create Your Custom Strategy ⬇️Get Started Here.Join the new Root Collective HERE!

Episode 02: Show Notes.Welcome to the first full episode of Ready for Retirement, we are so happy to have you join us here as we share some great and simple strategies for making retirement that much easier and enjoyable! A big part of doing this has to do with tax and that is our focus today. If you can optimize your taxation situation you can alleviate a lot of unnecessary strain on your finances and so we are providing you with four easy ways to reduce tax. These are guaranteed to help you keep more of your income, which is ultimately the goal. This list is not exhaustive and there are definitely others too but these four are approachable and common enough to start with! We talk about maxing your social security benefit to make the most of it when you do collect it, important considerations for asset location, looking beyond investment dividends, and reducing IRMA surcharges. All of these measures can help you retain more of your resources and maintain the type of lifestyle you hope for as you enter an important part of your life. Please join us for this accessible and informative exploration, today!Key Points From This Episode:Learn how Social Security is taxed and Pay attention to your asset location; tax-efficient investments in taxable accounts!Focus on more than just dividends; other considerations to take into account.Reducing IRMAA surcharges; considering your modified adjusted gross income. You do not need to reduce your lifestyle, but think about when and how you take your income. Links Mentioned in Today’s Episode:Modified Adjusted Gross IncomeLet's Connect!James Conole on LinkedInReady for Retirement Root Financial PartnersCreate Your Custom Strategy ⬇️Get Started Here.Join the new Root Collective HERE!

Welcome to the Ready for Retirement Podcast! Episode 01: Show Notes.Hello, everyone, and welcome to the first episode of the Ready for Retirement podcast! Your host for the show is James Conole, a certified financial planner and the founder of Root Financial Partners. Before getting into the details of this new show, we want to thank you for taking the time to tune in – you will not be disappointed by the many surefire tips and strategies that we will share on the podcast. In this episode, James walks listeners through the basic information of the show, including who it is designed for, the depth at which topics will be explored, the kind of subjects that will be covered, and how often new episodes will be published. In addition to learning what you can expect from the show, listeners will also hear a bit about James and how his day-job has equipped him to bring you the most up-to-date information on retirement. Key Points From This Episode:•    Who the show is designed for and will benefit most from its content. •    The depth at which we will explore topics related to retirement. •    Investments, taxes, social security, insurance and other topics to look forward to. •    Learn more about your host James, a Certified Financial Planner™  with a passion for people. •    James' unique perspective working with people who are planning to retire.•    The frequency of the podcast and the estimated running time of each episode. •    BONUS: Check out the two additional episodes we have ready for you! Let's Connect!James Conole on LinkedInReady for Retirement Root Financial PartnersCreate Your Custom Strategy ⬇️Get Started Here.Join the new Root Collective HERE!