Ready For Retirement

The 4% rule helps us understand how much we can safely take out of our portfolio each year without running out of money in retirement. Yet, as simple as the 4 percent rule seems, the practical implications are drastically misunderstood. I explore the three common mistakes people make when applying this rule and how to avoid them. Questions Answered: How do RMDs impact the 4 percent rule? Does the...

Retirement is not just about financial readiness; it's also about finding purpose, passion, and personal growth.  James and guest Cynthia Meyer debunk the arrival fallacy, the illusion that reaching retirement will bring lasting happiness.  Having structure in retirement and pursuing your passions is vital to feeling fulfilled. Although it's easy to fall into comparing our retirement exp...

Sammy, a 51-year-old retiree, is seeking advice on how much she should convert from her traditional IRA to a Roth IRA each year to avoid jumping tax brackets and minimize the taxation of her social security benefits.  James analyzes Sammy's current financial situation and offers guidance on approaching the tax planning aspect of her retirement strategy. Learn: How to determine how much to con...

James addresses a common concern for a couple approaching retirement through a listener’s question. Listener Rob plans to collect Social Security early at 62, raising questions about his wife’s retirement. Understanding Social Security strategies to avoid potential losses during retirement is important. James explains the intricacies of spousal benefits, detailing how they are calculated based on...

As one listener prepares for an early retirement, James discusses the situation, covering how to build a bond ladder based on non-retirement funds. James provides a different way of looking at the stock-to-bond conversation. Learn how to determine the appropriate amount to have a bond ladder and whether you should own individual bonds or bond funds as a part of that ladder. Questions Answered: How...

James explores the concept of sequence of return risk in retirement planning. Most people are unaware of how risky this is, as it doesn’t become an issue until you begin living off your portfolio. Responding to a listener’s inquiry about early retirement, James dives into the potential impact of market timing on retirement outcomes.  Learn three actionable strategies: Ensure a reasonable initial w...

Should you sell long-term stocks for a real estate investment? I walk through one listener’s question and explain what you need to consider before making such a decision.  Aside from the obvious–is it a good financial investment–you also need to consider if it's a good emotional decision. Learn: ➡ The tax implications: how are capital gains taxed differently? ➡ How to compare the dividends of...

When you’re doing well financially, paying advisor fees might seem unnecessary. So do you need an advisor if you’re already in a good place? Having a successful retirement isn’t just about not running out of money; it’s about what more you can do. Through a real-life client story, I explain how having an advisor’s perspective to implement the right strategy can be more valuable than the cost of th...

James addresses a listener's question regarding Social Security strategies in retirement. Sasha, aged 59, seeks advice on when to start collecting Social Security, considering her husband's benefits and their overall retirement plan.  James emphasizes the importance of considering spousal benefits, survivor benefits, and age gaps in making this decision. He explores the complexities of S...

James explores the nuanced aspects of Roth IRAs, shedding light on intricacies that can confound even experienced investors.  Through a listener question from Manfred, a retiree contemplating a $50,000 conversion from a 401k to a Roth account, James dissects the crucial five-year holding period and the order in which contributions, conversions, and earnings are treated during withdrawals.  James a...

When we think of retirement, it often evokes dreams of leisure, relaxation, and the freedom to pursue one's passions. Yet, the decision to retire is not merely about leaving a career; it's about embarking on a new chapter filled with purpose and fulfillment. Joe Kuhn, a seasoned retiree and creator of the "Joe Kuhn Loves Retirement" YouTube channel, shares valuable insights gai...

 Tax loss harvesting is a strategy that investors use to reduce their tax bill. However, there are many misconceptions about tax loss harvesting, including when it's valuable and how to do it effectively. James debunks some of the most common myths about tax loss harvesting and explains how to use this strategy to your advantage. Questions Answered: How can investors benefit from tax loss har...

James walks through a framework of how you ensure that your legacy goals include more than just leaving a chunk of money to your kids when you're gone. He explains the key concepts that can help your child develop strong money management skills. From starting early to diversifying your investments, learn how you can help set your child up for financial success Questions Answered: Why is it im...

What are the benefits of Roth conversions in retirement planning? James addresses questions about when Roth conversions become worthwhile. This episode explores key factors: Changes in tax bracket Spousal scenarios Impact of portfolio size on tax savings Potential tax savings tend to increase with a higher portfolio balance but be careful not to take unnecessary Roth conversions. James explains di...

Have you ever wondered if purchasing an annuity makes sense for you? There are two conflicting opinions from financial advisors: some advocate for annuities while others advise against them. James explores the concept of being a fiduciary and the challenges of understanding the financial advisory industry. He covers when annuities may be a suitable option, such as providing guarantees, protecting...

If you're in a high tax bracket now and expect to remain in a high tax bracket after retirement, should you prioritize pre-tax retirement accounts or Roth retirement accounts for individuals?  James answers this and discusses various factors to consider in making this decision, including current and future tax brackets, required minimum distributions (RMDs), charitable giving, life expectancy...

James debunks common misconceptions about retirement portfolio allocation and explains how to factor in your pension, social security, and other fixed-income sources into your plan.  He discusses the importance of dividends in assessing investment performance, risk capacity and tolerance, and how mastering them can help determine your optimal retirement portfolio allocation. Questions answered: Ho...

In this  episode, James emphasizes the importance of having a well-thought-out financial plan for retirement, rather than relying solely on the size of your investment portfolio. Financial security doesn't come from a specific portfolio number but from having a comprehensive plan. Using a listener's question, James walks through a step-by-step approach to assessing retirement readiness....

In this episode James explores signs that may indicate it's time to move on from a current financial advisor and discusses the professional and respectful ways to handle this transition. There are three core aspects to consider when contemplating the change: Deciding to Leave: The first step involves recognizing signs that it may be time to move on.  Telling Your Advisor: James provides two s...

One of the most ironic things about retirement spending is that the people who have saved the most money are often the same ones that have the most difficult time spending that money.  We often think that if we save up enough money or build up enough of a portfolio that in retirement it will open up unlimited fun and enjoyment. The reality is, for those who have saved well, one of the hardest thin...

The majority of people who participate in some level of charitable giving in retirement aren't getting a tax deduction for any of it. While external reasons should drive charitable giving, you should absolutely look to maximize the tax effectiveness of any giving you're already doing. In this episode, James covers how to optimize your tax benefits, detailing donor-advised funds, an often...

By the time you get to retirement, it is not uncommon to have many different accounts at multiple different institutions. You may be wondering, "How do I begin the process of consolidating everything without paying a bunch in taxes or penalties?" In this episode, James covers three types of taxes you're likely to encounter when consolidating: ordinary income, capital gain, and early...

It’s common knowledge to have a different portfolio allocation before retirement than you actually have in retirement. But how and when do we actually go about making that change? This episode is based on a listener question: Alan, has a portfolio mix weighted too heavily in stocks. As he shifts into retirement, he is looking to have a new allocation strategy.  James discusses how to shift into a...

Are short-term savings using an adjustable rate mortgage worth the risk of rate hikes? In this podcast, we cover how adjustable rate mortgages (ARMs) work, how they differ from fixed-rate mortgages, and the reality of their adjustment periods.  James uses a real-life scenario to dive into the comparison of adjustable and fixed-rate mortgages. Learn how to plan for the worst-case scenarios and eval...

How can rising interest rates impact your pension value? In this week's episode, we analyze a real-life scenario from our listener, Mark, who is weighing the pros and cons of an early retirement, a higher lump sum, or a commit to an annuity.  Learn how to calculate the imputed returns of an income annuity and how to determine if taking the lump sum and investing it would be the better option....