Retire With Ryan

It can be overwhelming to think about what you can do to minimize your tax burden. That’s why, in last week’s episode, we covered 7 year-end tax moves for retirees. This week, we’ll tackle what those nearing retirement need to dive into at the end of every calendar year. We all need to be mindful of how our decisions impact our tax burden and this is a great place to start! You will want to hear this episode if you are interested in... Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube Channel Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

Tax planning—and anything related to taxes, in general—isn’t most people’s favorite topic. But because we’re getting toward the end of the year, it’s actually a great time to think about tax planning and all of its benefits. In this episode of Retire with Ryan, I’ll share 7 things you should think about that can (and will) help save you money in retirement. You will want to hear this episode if you are interested in... Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube ChannelWill Social Security Become Tax-Free?IRS Update For Inherited IRAs and Roth IRAsLow Tax Burden States Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

You’ve likely spent your entire lifetime saving for retirement. How do you make sure the money lasts as long as you do? How do you make sure you enjoy your retirement? It’s a balancing act for which there may be a solution. Matthew Jarvis is a Financial Advisor who runs Jarvis Financial, located in Seattle, WA. He’s also the host of the podcast “The Perfect RA” and the author of the book “Delivering Massive Value.” In this episode of Retire with Ryan, Matthew discusses the concept of retirement guardrails, how they work, and who they’re for. If you’re looking for a spending strategy that often leads to a successful retirement, this episode is for you. You will want to hear this episode if you are interested in... Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube ChannelDelivering Massive ValueThe Perfect RIA podcast Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

How much money do you need to save for retirement? $500,000? $2 million? The answer will never be the same. It’s specific to you. So how do you figure it out? In this episode of Retire with Ryan, I’ll share five steps you can follow to determine how much you need to retire. You will want to hear this episode if you are interested in... you Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube ChannelFREE budget templateMedicare Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

Could Social Security become tax-free? As the political scene heats up leading up to the 2024 Presidential Elections, and both candidates make their case for election, the topic of taxation has come up. Former President Trump has promised that Social Security won’t be taxed if he’s elected. What could that mean for you? How is it currently taxed? I cover the details in this episode of Retire with Ryan. You will want to hear this episode if you are interested in... Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube ChannelFiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial AdvisorEpisode #206: Is Social Security Going Broke? Income Taxes and Your Social Security Benefit Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

Did you take out a parent PLUS loan or private loan to help your kids pay for college? Are you still struggling to pay off those loans? According to StudentAid.gov, over 9 million people over 50 have student loan debt. Of those, over 1 million have loan balances north of $100,000. If you’re nearing retirement, the last thing you want on your plate is student debt. In this episode of Retire with Ryan, Erik Kroll shares the best way to manage student loan repayment. You will want to hear this episode if you are interested in... Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube ChannelStudent Loans Over 50Federal Student Loan PortfolioPublic Service Loan Forgiveness Program StudentAid.govStudentLoansOver50.com Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

If you’ve inherited an IRA from someone who wasn’t your spouse since 2020, you can’t miss this episode. Why? The IRS has finally cleared up a lot of questions that had been left unanswered about inherited IRAs from a non-spouse. Though I’ve covered the topic in previous episodes, I wanted to break down the regulation further in this episode. You will want to hear this episode if you are interested in... Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube ChannelFiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial AdvisorIRS Single Life Expectancy TableNew Beneficiary IRA Distribution RequirementsIRS Update for Inherited IRAs and Roth IRAs Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

In March, The National Association of REALTORS® (NAR) settled an antitrust lawsuit. The lawsuit alleged that NAR didn’t allow sellers to negotiate what they could pay buyer’s agents. The changes outlined in the settlement will impact “business as usual.” As of August 17th, 2024, the way home-buying and selling transactions happen will change. Raquel Fernandez—a realtor with over 20 years of experience—joins me to share what the changes look like for buyers, sellers, and their brokers. Anyone who owns a home—or is looking to buy one—needs to know this information. You will want to hear this episode if you are interested in... Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube Channel Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

What steps should you take to get your financial life in order after a divorce? In this episode of Retire with Ryan I lay out, step-by-step, the checklist of things you’ll want to look over, everything from calculating your net worth to designating beneficiaries. There’s a lot to consider. My aim is to simplify the process so that you can focus on what really matters—rebuilding your life. You will want to hear this episode if you are interested in... Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube Channelnet worth statement and budget spreadsheet“I love you letter” templateFiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial AdvisorLegalZoomTrust & Will Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

In episode #211, we talked about the information you need to gather to prepare to file for divorce and the initial proceedings. But what financial steps do you need to take during a divorce? How do you figure out what life will look like on the other side? How does splitting your assets actually work? Renée C. Bauer—an experienced family law attorney and mediator—joins me in this conversation to help flesh out the details. Renée has been practicing law since 2003. She’s also the author of two books, “Divorce in Connecticut,” and “She Who Wins” and the host of the “Happy Even After” podcast. You will want to hear this episode if you are interested in... Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube ChannelFinancial Steps to Take Before DivorceHappy Even After Family LawHappy Even AfterQualified Domestic Relations OrderInstagram Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

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. < You will want to hear this episode if you are interested in... 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: 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 Retirement Readiness ReviewRetire with Ryan YouTube ChannelFiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial AdvisorRevealing Divorce Statistics In 2024Get my free budget template and net worth statement Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

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. < You will want to hear this episode if you are interested in... 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 total pension profit-sharing contribution limit. 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 Retirement Readiness ReviewRetire with Ryan YouTube ChannelFiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial Advisor7 Backdoor Roth IRA Mistakes to AvoidHow a Mega Backdoor Roth IRA Can Accelerate Your Retirement Savings Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

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... 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 Retirement Readiness ReviewRetire with Ryan YouTube ChannelFiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial Advisorper the IRSFidelity HSA Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

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. < You will want to hear this episode if you are interested in... 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 inIncrease in the age of retirementIncrease the taxation of benefitsChanging the cost-of-living adjustment calculationPart of Social Security money could be set aside and invested in stocks/bonds 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 Retirement Readiness ReviewRetire with Ryan YouTube ChannelFiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial AdvisorStatus of the Social Security and Medicare Programs (2024)Cost-of-Living Adjustment (COLA) Information for 2024How Medicare Enrollment Impacts HSA Contributions Changes to the Social Security Cost of Living Adjustment in 2023 Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

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... 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 Retirement Readiness ReviewRetire with Ryan YouTube ChannelRetirement Tax Services PodcastDon’t Get Killed on Taxes”LinkedInRetirement Tax Services Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

What are the current trends with ETFs? What’s happening in the fixed-income market? How can investors tackle current challenges? Matthew Bartolini, CFA, CAIA—the head of ETF Research at State Street Global Advisors—joins me to dissect the ETF market and how investors can handle volatility. Matthew believes the ETF market will only continue to grow and create opportunities for long-term wealth. He shares how to navigate the factors that impact the market—including Federal Reserve policy, elections, and general trends—in this episode of Retire with Ryan. You will want to hear this episode if you are interested in... Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube ChannelLinkedInETF Costs and More with Matthew BartoliniAdvanced ETF Concepts with Matthew BartoliniElections and Equities: The Impact of the US Election on Sector Investing Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

How do you know if your financial advisor is delivering value? Is seeing a financial gain in your investments the only metric you should use? I’ve identified four key areas where your financial advisor should be delivering value to you: Awareness of costs and fees, performance of your portfolio, financial planning benefits, and communication. I’ll cover each of these areas in detail in this episode. I’ve also included a checklist you can use to make sure your current financial advisor is delivering value. This is Part 5 of a five-part series about financial planners to celebrate the release of my first book, “Fiduciary: How to Find, Hire, and Establish a Trusted Partnership with a Fee-Only Advisor.” You will want to hear this episode if you are interested in... Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube Channel Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

What should you expect once you’ve hired a fee-only financial advisor? Fee-only financial advisors typically offer financial planning, investment management, or a combination of both. In this episode, I’ll cover what each process will be like because what you’re hiring your financial advisor to do will determine how your experience will be (and what the relationship will look like). This is Part 4 of a five-part series about financial planners to celebrate the release of my first book, “Fiduciary: How to Find, Hire, and Establish a Trusted Partnership with a Fee-Only Advisor.” You will want to hear this episode if you are interested in... Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube ChannelFiduciary: How to Find, Hire, and Establish a Trusted Partnership with a Fee-Only Advisor Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

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, “Fiduciary: How to Find, Hire, and Establish a Trusted Partnership with a Fee-Only Advisor.” You will want to hear this episode if you are interested in... 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: specialty 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. don’t 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 Retirement Readiness ReviewRetire with Ryan YouTube ChannelFiduciary: How to Find, Hire, and Establish a Trusted Partnership with a Fee-Only AdvisorThe National Association of Personal Financial AdvisorsThe XY Planning NetworkThe Fee-Only NetworkGarrett Planning NetworkCFP BoardBrokerCheckInvestment Adviser Public Disclosure The Fiduciary Pledge Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

What are the three different types of financial advisors? Why do I believe a fee-only financial advisor is the best? If you’re considering hiring a financial advisor for the first time—or questioning if your current advisor has your best interests at heart—don’t miss this one. It’s part 2 of my series in which I’m covering some of the topics in my upcoming book, “Fiduciary: How to Find, Hire, and Establish a Trusted Partnership with a Fee-Only Advisor.” The goal is to help my listeners find a financial advisor that they can trust You will want to hear this episode if you are interested in... Type #1: A Stockbroker or Insurance Broker The first type of advisor is a broker (stockbroker or insurance broker). They’re compensated via commissions (the old-school way of doing business) and paid per transaction. The more transactions they make, the more turnover, and the more commissions they make. Brokers are incentivized to change client’s portfolios—even if it’s not in their client’s best interest. They’re also obligated to do what’s best for their brokerage firm (to make them more money). That’s why most financial advisors have moved away from the broker model. If you need to buy insurance, a stock, or a bond and you know this person isn’t a financial advisor, it’s fine to work with them—just don’t expect objective advice. Type #2: Registered Investment Advisor and Broker A Registered Investment Advisor is someone who’s registered with the state they do business in or the SEC as an investment adviser representative of a firm. They work with clients on a fee basis. However, these financial advisors are also licensed as a stockbroker/insurance broker. Because brokers don’t have to disclose these conflicts of interest (currently), you don’t know if they’re acting as a broker or fee-only financial advisor. Type #3: A Fee-Only Investment Advisor A fee-only investment advisor is only compensated by the fees their clients pay them. They do not have a broker or insurance license. This is the best option for working with a financial advisor. You know when you ask them a question, there will be no conflicts and they will be acting in your best interest. How do I know? Because a registered investment advisor has a legal obligation to put a client’s interest ahead of their own and must disclose any conflicts of interest. There are typically three types of fee-only financial advisors: How are fee-only financial advisors compensated? HourlyFlat FeeAssets Under Management (AUM) model When you make more money, your financial advisor makes more money because their fee is tied to the value of your portfolio. How do you know which option is the best for you? Learn more in this episode. Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube ChannelFiduciary: How to Find, Hire, and Establish a Trusted Partnership with a Fee-Only Advisor Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan