Retire With Ryan

If you are divorced and approaching 62, you may qualify for social security benefits based on your ex-spouse's earning record. But who qualifies? When can you collect it? How much can you collect? Does your ex-spouse find out? I’ll answer the things you need to know in this episode of Retire with Ryan. You will want to hear this episode if you are interested in... What makes you eligible for the ex-spousal benefit? You’re eligible if: Your own benefit cannot be higher than the spousal benefit. That simply means that you’re able to apply for your benefits and the spousal benefit and choose the higher of the two. You’re eligible for up to half of your ex-spouse's benefit or your own. What else do you need to know? How much can you receive? If you were born after 1960, your full retirement age is 67 or later. For anyone born before 1959, your full retirement age is 66 and 10 months. Every year before that the full retirement age decreases by two months. Why is this important? To get the full 50% ex-spousal benefit, you have to wait until your full retirement age. If your full retirement age is 67 and you want to collect at 62, you’d get 32.5% of your ex-spouse’s full retirement benefit. If you waited until you turned 63, you’d get 35%. The percentage increases every year until it caps at 50% when you hit your full retirement age. If you claim your benefit before your full retirement, there’s also a limit to how much you can earn and still receive the benefit. The earnings limit in 2024 is $22,320. That limit is in effect from 62–66. If you earn over that amount, your benefit will be reduced by $1 for every $2 you make over $22,320. The year you retire, you can make up to $59,520 before your benefit is reduced by $1 for every $3 you’re over. Starting the month you retire, there’s no limit and you can receive your full benefits. How does it work if your ex-spouse is deceased? This is known as a surviving divorced spouse benefit. The same eligibility rules apply—with a few changes: If your benefit is more than half of your deceased ex-spouse’s benefit, you can collect the percentage you’re eligible for while yours continues to defer. Your benefit caps out at 70 at which point you’d collect your benefit. Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube ChannelOnline social security calculatorSSA.gov Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

Medicare is confusing and complicated. Most people nearing retirement age have likely heard numerous mistruths regarding when to get it, what it does for you, and so much more. That’s why I’m busting the 10 most commonly perpetrated Medicare myths so you’ll know how to discern fact from fiction—and put your mind at ease. You will want to hear this episode if you are interested in... Retirement Readiness Review Myth: You have to enroll in Medicare when you turn 65 This is false. If you have job-based health insurance with a company that has 20 or more employees, you don’t have to sign up for Medicare immediately. You can wait to sign up until you stop working or you lose your health insurance. Why would you want to? There may be excess costs you wouldn’t need to pay if you still have insurance through your employer. But if you’re self-employed or don’t have an insurance policy that covers more than 20 people, and you don’t want to sign up for Medicare, you’ll get hit with a late enrollment penalty. Myth:You’re automatically enrolled in Medicare when you turn 65 You’re only automatically enrolled if you’re already collecting Social Security when you turn 65. Everyone else has to enroll during the three months before they turn 65 or the three months after their 65th birthday month. If you’re not going to enroll at 65, you have an 8-month window to enroll after your insurance coverage ends (or you’ll be subject to a penalty). Keep in mind that Medicare will not tell you when it’s time to enroll. Though you’ll get a lot of advertisements in the mail for supplemental plans, Medicare will not send you a reminder. To enroll, you go to SSA.gov and click on “enroll in Medicare.” Myth: Medicare is free Medicare Part A covers part of the cost of a hospital stay. As long as you or your spouse has worked for 10 years or more in the United States, Part A is free. However, Part B (which covers preventative care) starts at $174.70 per month. Everyone pays the minimum premium and depending on your income level, you may pay far more. The premium may increase every year. There are many other expenses that Medicare doesn't cover. Many people also say that you should enroll in Medicare Part A as soon as you can because it’s free. This makes sense—only if you don’t have a high-deductible insurance plan. But with high-deductible health plans, you’re typically eligible for an HSA. As soon as you enroll in Part A, that disallows you—and your employer—from making contributions to an HSA. You also have to remove any contributions you’d made from the prior six months before enrolling. I tackle a lot more myths you need to be aware of, so make sure you listen to the whole episode! Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube Channel Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

How can you protect your data and personal information from IRS scammers and criminals? Everyone is afraid of being audited by the IRS. Maybe you’re scared you may have filed your taxes incorrectly. Criminals take advantage of that fear to perpetuate their scams. But there are some simple things you can do to avoid falling victim to these scams. I’ll share 7 tips you can use to protect yourself from IRS scammers in this episode! You will want to hear this episode if you are interested in... What you need to know about the IRS Did you know that the IRS doesn’t make phone calls or leave voicemail messages? They won’t send a text or contact you on social media. They don’t use email either. If the IRS has a problem with you, they’ll send you a letter. So if you get a phone call saying someone is from the IRS and they need more information from you, hang up, and block their phone number (and report it as spam). These scammers threaten people, saying they’ll lose their immigration status, driver’s license, business license, or they’ll call law enforcement to arrest them. Don’t fall victim to these threats. If you do receive a letter from the IRS, don’t panic. The majority of the time it’s a simple fix that your CPA or financial advisor can help you navigate. It may be as simple as a missing 1099. Be suspicious of emails from the “IRS” Anytime you get an email from someone unfamiliar, hover over the address of the email to see who it’s from. You’ll see mistakes in the email addresses (often misspellings) from scammers. Make sure you never click on any links in an email before you know it’s from someone or a business you trust. If you click on one of these links, you’re allowing the scammer into your computer or phone. They can install spyware or hijack your files. They’ll lock your files and demand a ransom to get them back. 10 years ago, this happened to me. Protect your personally identifiable information (PII) PII is your social security number, DOV, driver’s license, bank account information, etc. Don’t email anything that contains your PII—even if it’s to someone you know and trust. If your email is ever hacked, the hackers can access this information and use it to open accounts in your name. Most financial firms offer upload options such as Box or ShareFile. One of the best things you can do to protect your information is to set up two-factor authentication whenever you can. Two-factor authentication requires that you offer two ways of proving that it’s you logging in. You may need to provide a username, password, and PIN. You can use an authenticator app that provides a PIN that resets every 30 seconds. Or, you can have a pin texted to you. If a scammer can steal your username and password, they probably can’t breach the two-factor authentication. Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube ChannelShareFileBoxUSPS Informed Delivery Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

Do you usually get a tax refund? What do you typically do with your tax refund? Do you have it earmarked for a specific purpose? As we’re inching closer to the tax filing deadline, I thought it would be interesting to share some ways you can wisely invest your tax refund. I’ll cover 9 ideas you can consider to make good use of your money. You will want to hear this episode if you are interested in... Why are you getting a tax refund? If you’re getting a tax refund, you should be asking why. You’re giving the government a free loan for the entire year. You aren’t paid interest when you receive a refund. Why not investigate if you can increase your withholdings, so you can keep more of your money? If you are going to get a refund, here are some ways you could invest it. 9 ideas for investing your tax refund Save it for next year's taxesIncrease your savingsPay down high-interest debtContribute to a Roth IRAHome improvement projectsIncrease retirement account contributionsPlan a vacationInvest in yourselfBuy US Savings Bonds Listen to the whole episode for a more in-depth look at each idea! Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube ChannelI bonds interest rates Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

Do you own stock in the company that you work for in your 401K? Net unrealized appreciation could potentially save you a significant amount of money on your taxes when you start making withdrawals. I’ll share how to take advantage of the process as well as mistakes to avoid making 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 Channel Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

The Federal Reserve Met on 3/20/24 to discuss monetary policy and whether or not to raise or lower interest rates. They announced that they won’t make any changes. Most experts believe that they’ll lower interest rates in June. So should you start selling your money market funds and short-term bond funds? When should you do it? Should you move the money into something that could benefit from decreasing interest rates? In this episode, I’ll discuss why we invest in money market funds, if you should move your money out, and where you should consider shifting it. You will want to hear this episode if you are interested in... Retirement Readiness Review Why should you invest in money market funds? Money market funds should be considered part of your overall asset allocation. We look at money in terms of buckets. You need some money in risky buckets to grow your money to pace against inflation (stocks, commodities, real estate investment, high-yield corporate bonds, etc.). The other money is your “safe” money (cash, money market funds, government bonds, short-term corporate bonds, etc.). I’ve been recommending that you move money from your bank or other low-yielding accounts and move them into money market funds for the last year and a half. Why? Because you can now earn about 5% on your money market funds (depending on where you keep it). We typically use the Schwab Value Advantage Money Fund® (SWVXX). And as of 3/20/2024, its current yield is 5.18% with an annual expense ratio of 0.340%. Money market funds are relatively low-risk and liquid. They trade for a dollar value that rarely changes. What changes? The interest rate that the funds pay (which can reset as often as every seven days). Why move money out of your money market fund? You invest in a money market fund to help you earn more interest on your safe money. You want to choose what gives you the best rate possible. The rate you get is dependent on duration—the length of time that you’re investing your money. Currently, looking at the treasury yield curve, you’ll earn more interest by having your money in shorter-term treasuries than you would versus long-term treasuries. Eventually, the curve will reverse and long-term investments will yield more interest. That’s when you’d consider reducing the amount of money out of money market funds. Until the Fed raised interest rates in 2022, money markets were paying almost nothing. As the Fed raised interest rates, the interest paid increased. What might make money market rates fall? The primary driver is inflation. The Fed monitors inflation so they can make decisions about what to do with interest rates. Inflation has been high. The Fed doesn’t want to cut rates too quickly because it could trigger more inflation. What could you buy to replace money market funds? How do you reduce your exposure? Listen to hear some ideas! Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube ChannelThe 5-Step Portfolio Process, Ep #17Daily Treasury Yield Curve RatesSchwab Value Advantage Money Fund®SPDR® Portfolio Aggregate Bond ETFSPDR® Portfolio Long Term Treasury ETF Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

As we get closer to the tax filing deadline (April 15th), I wanted to talk about contributing to a Roth IRA or traditional IRA. In this episode, I’ll cover contribution and deduction limits, spousal IRAs, and non-deductible IRA contributions (and why you’d want to consider them). You will want to hear this episode if you are interested in... Traditional and Roth IRA basics Everyone with earned income can contribute to an IRA or Roth IRA (up until the filing deadline). Earned income includes wages, salaries, tips, and net self-employed income. Your spouse can contribute on your behalf if you don’t have earned income. The max you can contribute is $6,500 (if under 50) or $7,500 (if over 50). You can split the money between a traditional or Roth IRA. If you’re looking for an additional tax deduction, you can contribute to a traditional IRA and get a tax deduction equal to the amount you contribute. Do you have a retirement plan through your work (401K, 403B, 457 plan, etc.)? If you do, you have to look at your modified adjusted gross income (MAGI) to determine if you qualify to contribute. If you don’t have a plan through work, you can contribute the full amount. With a Roth IRA, you don’t get a tax deduction on your contributions. But when you withdraw the money, the withdrawals are tax-free. To contribute to a Roth IRA, your MAGI must also be under certain limits. I’ve linked documents in the resources that detail what each of those limits looks like for each filing status. Non-deductible IRA contribution What is a non-deductible IRA contribution? It’s where you make a contribution to a traditional IRA up to the limit of $6,500/$7,500 but you don’t get a deduction on the contribution. Why would you want to do that? What makes the most sense for you in 2023? Listen to learn more about each of the options. Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube ChannelSeparating Post-Tax Money from a Traditional IRA, #181Amount of Roth IRA Contributions That You Can Make For 2023 Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

What is Indexed Universal Life Insurance? Is it something you should consider investing in? Are the rumors you’ve heard about it true? In this episode, Andy Panko (of Tenon Financial) and I dispel 7 myths that are circulating about UILs and we cover what you need to know to make an informed decision about the insurance product. You will want to hear this episode if you are interested in... What is Indexed Universal Life Insurance? Indexed Universal Life Insurance is often pitched and marketed as a retirement income tool under a host of other names. It’s a complicated product, often sold via misleading information. At its core, It’s a life insurance policy with a death benefit that can build cash value within the policy. You can take loans against it and money out of it. Some of the benefits can be used toward long-term care expenses. It can be a useful and multi-purpose product. However, misleading claims are often made about these policies during the sales process. Myth: The IUL cost is lower than a well-managed mutual fund An IUL is a multi-decade-long product. It’s a lifetime commitment. The up-front fees are large. It can be more than 10% the first year and 6–8% beyond that. By the time you get to the 10th year, the fees can be lower (under 5.5%). I bought an IUL and the up-front costs were 17% for the first year. When you blend it out over the life of the product, it will not be as low as a managed index fund. It’s not reasonable to expect. And you’re not actually invested in index funds—you get exposure through the insurance company buying options on the underlying index. Myth: An IUL means you can be your own bank You aren’t borrowing money from a bank. And the money in the policy continues to earn interest. You can borrow against the IUL and use the money however you’d like. But it’s no different than if you took a home equity line of credit against your house. You still own the house and it’s full price appreciation but you have a loan collateralized by your house. People will say that Walt Disney founded Disney because he borrowed against his whole life insurance policy. People insinuate that Disneyland wouldn’t exist without an IUL. All said and done, he took a $50,000 loan against his life insurance policy but it was only 0.66% of the total capital required to launch Disneyland. Life insurance wasn’t the missing link. Myth: IULs are a “can’t lose” monetary asset The cash value of your account earns interest and it will never be lower than zero. However, you can’t own that cash value in isolation. There are annual fees associated with the policy. Even in the years where you get 0%, you have fees and costs that will cause your cash value to decline. That is still losing money. Most of them also have a commitment period. If you want to walk away with your money, you’ll likely get charged a hefty fee to do so. If you hold the product for the rest of your life, you will in time have more cash value than you put in. But in the early years, you will have less money than you put in. Insurance products are designed to be long-term. The people who sell these products are paid on commission. So surrender penalties reimburse the insurance company if the policyholder bails out early. Should you consider investing in an IUL? Listen to hear what Andy factors into the decision-making process. Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube ChannelRetirement Planning EducationLinkedInTenon Financial Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

On December 23rd, 2022, congress passed the SECURE 2.0 Act. Among the many changes, one of them had to do with 529 plans. You can now make tax-free and penalty-free rollovers from a 529 plan to a Roth IRA. This became effective 1/1/2024. Before this, if you wanted to take a non-qualified withdrawal from a 529 plan (using the money for something outside of school expenses) the gain was subject to income tax and a 10% penalty. It’s similar to taking a withdrawal from an IRA. If you have unused money in a 529 plan, it can be rolled over to a Roth IRA for the beneficiary of that 529 plan—tax and penalty-free. The added benefit is tax-free growth and tax-free distributions when they take money out down the road. What other details do you need to know? Who qualifies for these rollovers? Learn more in this episode of Retire With Ryan. You will want to hear this episode if you are interested in... What are the rollover rules? There is a $35,000 lifetime rollover limit per beneficiary. However, you can’t roll over the entire amount at once. You’re still subject to the annual Roth IRA contribution limits for 2024 and beyond. Someone under 50 can roll over $7,000 to a Roth IRA. If they’re over 50, they can roll over $8,000. If your child has already contributed $3,000 to their Roth IRA, you can only roll over $4,000. Here are some other rules to be mindful of: Questions the IRS still needs to answer What if the 529 account has been open for 15 years but you changed the beneficiary? Does the current beneficiary qualify? What if you change 529 companies during that time? When you hit the maximum of $35,000, can you change the beneficiary to someone else? How does your state treat the rollover? Will it be taxed? Who is tracking the gains from contributions? These are some of the many questions that the IRS hasn’t clarified yet. How do you learn if your 529 plan provider allows rollovers? There are hundreds of 529 providers and no blanket answer. Reach out to your specific provider. The plan I have with Fidelity can process the rollovers. How a rollover is done will vary depending on the provider. For the CHET plan, you complete a form and submit it to make the transfer. Can you make a rollover? Should you make a rollover? Listen to hear my thoughts! Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube Channel529 plan distribution form (Connecticut) The Connecticut Higher Education Trust 529 Plan Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

What are some overlooked benefits of investing for retirement in a brokerage account? Why would you want to invest in a brokerage account in addition to a 401k or other retirement account? Shaun Jones—the President of Jones Fiduciary Wealth Management and author of “Unbrainwashed Investing”—shares 7 reasons to invest in a taxable brokerage account in this episode of Retire with Ryan. You will want to hear this episode if you are interested in... Some of the benefits of a taxable brokerage account You can only put so much into retirement accounts annually, by law. Once you’ve reached your annual limits, why not consider a brokerage account? Here are just a few reasons: flexibility One of the biggest benefits is that it gives you more control over taxation. The taxation of a brokerage account Gains, dividends, etc. that you receive in a brokerage account are taxable (versus a retirement account). Every dollar that comes out of a retirement account is taxable as ordinary income, which can push you into a higher tax bracket than you may want to be in. Most people don’t think about how much of their retirement balance is actually there’s to keep. The IRS always gets to claim a portion of it. You have no idea how much you’ll end up owning because you don’t know what the tax laws will be then. However, a brokerage account has the potential to reduce your effective tax rate in retirement. You have a lot of control over your taxable income between when you retire and when you start taking distributions. That’s where 90% of tax planning happens. You can carefully consider when to take distributions to lower your overall effective tax rate. One strategy for a brokerage account A tendency toward index funds and passive investing will keep taxes and turnover low. Compared to other options, it’s a tax-efficient way to hold investments. If you hold an S&P 500 index fund and you’re continually dollar-cost averaging into it, you’re paying tax on the dividends (assuming it doesn’t create a high capital gain). If you’re not selling, you’re not creating a capital gain. We usually advocate that our clients wait until they’re in retirement to sell that fund, especially if they don’t have a lot of other income and can stay in lower tax brackets. We like to utilize tools that can project your average effective tax rate each year. It gives you a projection of what you’ll do if you don’t make provisions for tax management. If your effective tax rate will be 22% every year after taking RMDs, maybe you should trigger some at 15% or put money into a brokerage plan where you can control taxes. Listen to hear the full conversation about what you need to know about taxable brokerage accounts and how they benefit you. Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube ChannelHolistaplaneWealthManagerPodcastLinkedInJones Fiduciary Wealth Management Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

Are you aware of how your biases—both conscious and unconscious—impact your investment decisions? Brie Williams of State Street Global Advisors joins me in this conversation to talk not only about the impact of biases on decision-making but how to cultivate an awareness of your biases to change your behavior, ultimately leading to better decisions. You will want to hear this episode if you are interested in... Common investor biases that influence decisions What are the most common biases that impact decision-making? Most can be grouped into cognitive and emotional biases. Hindsight bias, confirmation bias, and anchoring bias are typically the most impactful cognitive biases in the realm of finance. Hindsight bias Confirmation biasAnchoring Emotional biases stem from impulses or intuitions, heavily influenced by feelings. Examples are loss aversion and overconfidence. Loss aversionOverconfidence We need to recognize that we all have conscious and unconscious biases. We need to gain self-awareness to reflect on how we approached past decisions. Self-reflection allows us to uncover blind spots and recognize patterns in decision-making. Brie points out this is always easier to do with an objective advisor. How to overcome anchoring bias Anchoring bias comes into play when you’re failing to adjust to new information. Do you have a sunnier outlook or focus on the more negative side of the equation? You have to recognize that your life view will impact your definition of success. You need to focus on objectivity when you come across new information so you don’t overweight the past. Mindset is just one factor of many that will shape your decisions and perceptions as an investor. How do you respond? Anchoring exists as a bias but it can be disrupted with practice. Mindfulness and how you approach decision-making is worth working on for a healthier construct for decision-making. How do you avoid analysis paralysis? How can we close our behavior gap to improve decision-making to achieve better outcomes? Learn more in this thought-provoking episode with Brie. Resources Mentioned Listen To My Retirement PodcastWatch Me On YouTubeClick Here To Schedule An AppointmentShare Documents Securely With MWMRetirement Readiness ReviewRetire with Ryan YouTube ChannelLinkedInHow Women can Build a Better Relationship with Money Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

Last year’s Super Bowl set the record as the most-watched TV event in Nielsen rating history at over 150 million viewers. It’s hypothesized that this year’s Super Bowl is going to set a record for something completely different: The most amount of money bet on a Super Bowl. Why? Because sports betting is now legal in 38 states. So if you’re one of the 68 million Americans estimated to bet over $23.1 billion on the Super Bowl this year, how will winning impact your income taxes? Learn what you need to be mindful of—and some fun Super Bowl XLVIII facts—in this episode of Retire with Ryan. Disclaimer: Make sure whatever money you bet will not impact you financially if you lose. If you have a gambling addiction and need help, call 1-800-662-4357. You will want to hear this episode if you are interested in... How much does the Super Bowl make? The Super Bowl makes between $300 million and $1.3 billion a year. Much of the money generated is pocketed by the NFL. They receive 100% of ticket sales, millions of dollars from merchandise sales, and a lot of money from networks paying for broadcast rights for the game. This year, Super Bowl ads will cost $7 million for a 30-second spot. This is the second year at the price. Super Bowl ads first cracked the million-dollar mark in 1995. For many companies, this ad spot is worth the cost because it gives them a broad reach to consumers. How much of your winnings are taxable? If you know me, you know that I don’t gamble (I’d rather make a long-term investment in the stock market). I’ve only made one sports bet in my lifetime. It was in 2021 when FanDuel offered 55-to-1 odds of picking the Super Bowl winner. It was only for new users who’d never opened an account. They set the bet limit at $5, so you could win a maximum of $275. The Buccaneers were favored to win that year. My wife and I each opened an account and each of us bet on a different team. When the Buccaneers won, we collected our earnings, closed our accounts, and have never bet since. If you’re one of the $36 million expected to bet through legal means, how much of your winnings are taxable? If you bet through FanDuel or DraftKings and win more than $600 of net profit, you are legally obligated to report that. They’ll send you a 1099-MISC that you must report to the IRS. If you receive the winnings through PayPal, you’ll likely receive a 1099-K form. If you don’t receive either of these forms, the IRS still expects you to report all of your income, regardless of the amount. So what are my predictions? As of 2/7/24, my Super Bowl XLVIII prediction is that the Chiefs will win, 21-20. The 49ers are actually favored by two points. Check back to see how close my prediction is to the actual score! Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube Channelcourse or workshopForm 1099-KForm 1099-MISC Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

Before you think about when you’re going to retire there’s another question that should be addressed: Are you going to retire? It’s assumed that when you turn 62 or 65, you’re going to retire. And many people do count the days until they retire. But many others love the careers they’re in and can’t imagine stopping. Their concern is that they’ll get pushed out the door. The bottom line is that age tells us nothing. No one is the same. So we can’t treat them the same. That’s one of the concepts that Mitch Anthony explores in his book, “The New Retirementality,” and we’ll dive into it in this episode. You will want to hear this episode if you are interested in... Retirement is a life experiment Imagine waking up every day with nothing to do. You’ve played golf every day for six weeks and you’re bored. Your social life was wrapped in your job. 60% of people who retire go back to work part-time within a year of retiring. If your whole purpose is wrapped up in your job and you leave it, what drives you to keep pushing forward? Mitch points out that most people spend more time planning a two-week vacation than they do their retirement. They assume it’s going to take care of itself. That’s why most people don’t have it all figured out on their first attempt. What changes in the 24 hours from year 64 day 365 to year 65 day 1? Nothing. You’re the same person. But the world at large assumes that everything’s changed when you turn 65. The reality is that you need to plan for retirement. The Retirementality Profile Mitch’s book includes some exercises that help you determine your vision for “retirement.” One of the first questions is “What have you observed watching other people retire?” What good examples have you seen? Which examples have become object lessons? Is traditional retirement right for you? It’s a conversation you need to have with a retirement coach. It’s not a one-and-done conversation. Where do you start? 5 years outSix months awayThe retirement honeymoonThe reality check Most people only have the conversation of “Do you have enough money to retire?” You may have all of the money you need but lack purpose. Money will fund a purpose—but it won’t find one. Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube ChannelThe New RetirementalityMy Retirementality ProfileROL Advisor Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

As you enter retirement, tax planning is something that must be prioritized. A Qualified Charitable Distribution (QCD) can be a great tool in your arsenal to help you minimize the taxes you have to pay. So what is a Qualified Charitable Distribution (QCD)? How can it actually help you lower your taxes? In this episode, I’m going to cover what a QCD is, how you make one, and how it can help lower your taxes. I’ll also share a few examples of what a QCD might look like. You will want to hear this episode if you are interested in... What is a Qualified Charitable Distribution? Let’s back up for a minute and talk about what a Required Minimum Distribution (RMD) is. When you turn 73 years old, the IRS requires you to distribute a portion of your retirement accounts and pay taxes on the money. That’s an RMD. The Tax Cuts and Jobs Act in 2017 made a big change to standard deductions. It allowed many people to pay less in taxes—but it limited the amount of charitable donations you could deduct on your taxes. Because of this, charities saw a large decline in the amount of donations they received. One way to increase charitable giving in a tax-friendly way is a Qualified Charitable Distribution. A QCD allows you to donate a portion of your RMD o a charity and not pay tax on the amount you donate. For the last few years, you could donate up to $100,000 from your IRA and not have to pay taxes on it. Thanks to the SECURE Act 2.0, starting in 2024, the annual QCD limit has increased to $105,000 per year per individual. How do you make a Qualified Charitable Distribution? When you’ve given to charities, you’ve likely given them cash or a check. You let your accountant know what you gave and they note it on your taxes. When you make a QCD, you need to contact your IRA custodian and they send money directly from your IRA directly to the charity of your choosing. I cannot emphasize enough: You cannot take receipt of the money first or it will be a taxable distribution. Each custodian has a different process, but generally, you complete a form with the charity’s information (you’ll need the charity’s address and Tax ID number) and submit it. Secondly, most 501C3 charities can accept a QCD but you’ll want to confirm with them first. People often improperly report a QCD on their taxes and end up paying taxes on them when they shouldn’t have to. Listen to learn how you can avoid making mistakes on your taxes. How can a QCD help you lower your taxes? If your income is over a certain threshold, you’ll have to pay an additional amount of money on your Medicare Part B premiums. In 2024—for a married couple filing jointly—if your income goes over $258,000, you’ll have to pay double for your premium. The standard premium per person is $174.70. You’d have to pay $349.90 per month per person. This IRMA charge kicks in if you’re just $1 over the limit. But if you make a QCD to a charity to keep you from going over the limit, it can save you premium costs. I share some other need-to-know details—and get into the nitty-gritty details of how to note a QCD when you file your tax return—in this episode. Listen to learn more! Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube Channel Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan

The SEC recently and historically approved 11 Bitcoin spot ETFs on January 10th. This is big news because now you can invest in Bitcoin through a brokerage account. On this episode, I’m discussing what this means for you, how you can invest in Bitcoin ETFs, and what to look out for if you're going to take that plunge. You will want to hear this episode if you are interested in... Understanding Bitcoin In a nutshell, Bitcoin is a digital currency born in January 2009, untethered to any government or traditional financial institution. With an estimated market value of $8.2 billion, it pales in comparison to the colossal $40 trillion market cap of the S&P 500. There are 19 million Bitcoin coins in existence, with a cap of 21 million expected to be mined by the year 2140. Its appeal lies in being decentralized and ostensibly untraceable by governments, making it a preferred mode of transaction for some. Originally intended for small online transactions, Bitcoin's unique blockchain technology was poised to revolutionize banking, but its high costs and complex payment process have hindered widespread adoption. To invest, one typically turns to a crypto broker, distinct from a stockbroker, and must safeguard private keys to validate ownership. Despite concerns about fraud and lost keys, the recent approval of Bitcoin spot ETFs has opened new doors, changing the landscape of Bitcoin accessibility for investors. All about Bitcoin ETFs If you're considering diving into the world of Spot Bitcoin ETFs, here's a quick guide to help you navigate the options. The SEC recently greenlit 11 Bitcoin ETFs, and you might be wondering why so many. Well, it's all about competition. Unlike traditional mutual funds, ETFs, or exchange-traded funds, trade in real-time when the markets are open. This means you can buy or sell them while the markets are open, and the price is determined at the time of your transaction. When choosing a Bitcoin ETF, focus on three key factors. First, check the trade volume – opt for an ETF with high trading activity for easy transactions. Second, consider the spread, which is the difference between the bid and ask prices. A narrow spread minimizes the extra cost you pay when trading. Lastly, look at the annual expense ratio – aim for the lowest possible without compromising on trade volume and spread. Notable players in the Bitcoin ETF arena include BlackRock's IB and Fidelity's FBTC, both boasting low expense ratios. Remember, thorough research is key with 11 options available, each with its unique features and costs. Listen to this episode for more on Bitcoin ETFs! Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube Channel Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

With every new year comes a list of resolutions to make this one the best yet. However, a lack of planning leaves most of these goals unfinished. On this episode, I’m sharing five financial resolutions to help you grow your money in 2024 and the follow-through steps to help make them possible. You will want to hear this episode if you are interested in... Get ready for high-yield savings Looking to grow your money in 2024? One of the best options is opening a high-yield savings account or a money market fund that offers between 4 and 5% interest annually. Begin by deciding between the two and, if you already have accounts with major brokerage firms like Charles Schwab, Fidelity, or Vanguard, opt for their money market funds for seamless integration. Setting up a taxable brokerage account online takes less than 10 minutes, and linking it to your bank account enables easy transfers. Within two to three days, your funds should be in the default money market fund, earning the desired interest. If using Schwab, there's an extra step of purchasing a higher-yielding fund, such as Schwab's value advantage fund. However, if you prefer a simpler route, websites like bankrate.com list high-yield savings accounts with similar interest rates. Open an account, connect your bank, and enjoy increased returns on your savings without the need for additional investment steps. The Roth advantage Another great resolution for financial success in 2024 is a Roth account. With the current tax plan set to expire in 2026 and uncertainties surrounding the 2024 election, taking advantage of potential tax-free growth in a Roth account is a strategic move. The options available include a Roth IRA, allowing contributions up to $6,500 if you're under 50 or $7,500 if you're over 50. Remember, the deadline for contributions for the previous year is April 15, and there are income limits to consider. If you find yourself exceeding those limits, a Roth 401(k) could be a viable alternative, especially if you're self-employed or your employer offers one. Contributions to a Roth 401(k) are not restricted by income, and for 2024, the limits are $23,000 for those under 50 and $30,500 for those over 50. An additional option worth exploring is a Roth conversion, where you pay taxes at your current rates on the converted amount. This move could be advantageous if you anticipate higher tax rates in the future. Consulting with your financial advisor or CPA is crucial in determining the right strategy for your specific circumstances. Assess your current tax bracket, and if you're in a 22% bracket or lower, a Roth conversion may make sense, providing potential tax savings over the long term. Whether it's opening a Roth IRA, adjusting your 401(k) election, or scheduling a meeting with your financial advisor for a Roth conversion, taking action now can position you for financial success in the face of changing tax landscapes. Listen to this episode for more on growing your money in 2024! Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube Channel Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

Now that 2023 is officially in the history books, let’s review my 2023 market predictions to see how close I got! On this episode, we’ll be reviewing last year’s market predictions as well as making new ones for the year ahead. You will want to hear this episode if you are interested in... Looking back at 2023 In 2023, I made a set of market predictions that turned out to be a mix of spot-on calls and a couple of surprises. The S&P 500, despite a shaky start, rallied close to 25% by year-end, proving my forecast of a 28% increase nearly accurate. Growth stocks once again outperformed value stocks, showcasing a long standing trend. The Russell 1000 Growth Index, led by tech giants like NVIDIA, Microsoft, and Amazon, soared by 43%, while its value counterpart only managed an 11.42% return, emphasizing the significance of growth stocks in the market. However, not all my predictions hit the mark perfectly. Small-cap stocks were anticipated to outshine large-cap ones, but while the S&P 500 surged, the Russell 2000's late-year rally still fell short of my expectations. On the other hand, Bitcoin's unprecedented surge, earning a staggering 154% compared to gold's 13% gain, validated my projection of Bitcoin outperforming gold. Finally, foreseeing the Federal Reserve's rates finishing around 5.25% by the end of 2023 proved accurate, aligning with the prevailing economic climate. Nonetheless, amidst these forecasts, the underlying advice remained clear: diversification is key in navigating the unpredictability of the market. Listen to this episode for my 2024 predictions! Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube Channel6 Market Predictions for 2023, #1327 Best Short-Term Investments To Grow Your Money, #116 Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

Are you a small business owner struggling to choose a retirement plan? Then this episode is for you! Join me as we look at the specifics of SEP IRAs and Solo 401(k)s, the pros and cons of each, and the easiest way to get your small business or self-employed retirement plan set up today. You will want to hear this episode if you are interested in... Defining the SEP IRA and Solo 401(k) As a small business owner, navigating the realm of retirement plans is crucial for securing your financial future. Whether your business is your full-time pursuit, a part-time venture, or garners intermittent 1099 income, your choice of retirement plan can significantly impact your tax savings and nest egg. Two primary options stand out: the SEP IRA and the Solo 401(k), each with nuances and advantages. If you aim to save $7,500 or less annually and lack other retirement plans, a traditional IRA could offer simplicity. However, for those seeking higher contributions and potential borrowing capabilities, delving into the specifics of SEP IRAs and Solo 401(k)s is vital. A Simplified Employee Pension (SEP) IRA permits contributions of up to 25% of net business income, capped at $66,000 in 2023 (increasing to $69,000 in 2024). Notably, this plan only allows employer contributions, making it ideal for self-employed individuals—sole proprietors, partnerships, or certain LLC structures. Self-employed individuals are limited to contributing 20% of their net profit. On the other hand, a Solo 401(k), often referred to as a Uni-K, caters to sole proprietors or business owners with a spouse involved in the enterprise. This plan mirrors the contribution limits of the SEP IRA but distinguishes itself by enabling both employee and employer contributions. In 2023, employees can contribute up to $22,500, with a $7,500 catch-up if over 50, summing up to $30,000. By 2024, these limits increase to $23,000 and $30,500, respectively. Furthermore, the Solo 401(k) allows for a profit-sharing or employer contribution of up to 25% of net business profit or 20% for self-employed individuals, reaching the same contribution caps mentioned earlier. Weighing the pros and cons As a small business owner seeking the right retirement plan, the choice between a SEP IRA and a Solo 401(k) demands careful consideration. SEP IRAs offer simplicity and ease of administration; you can allocate up to 20% of your net business income. However, their inflexibility concerning employee contributions and limited options for loans might pose challenges, especially if you plan to expand your workforce. Moreover, the absence of a Roth option and complexities around backdoor Roth IRA contributions are important factors to note. Solo 401(k)s present an attractive alternative. They allow for both employer and employee contributions, offering more flexibility with a higher contribution limit, including catch-up provisions for individuals aged 50 and older. The Solo 401(k) permits a Roth version, facilitating tax diversification, and provides the option for loans up to a certain limit, enhancing financial flexibility. Nevertheless, this plan becomes less advantageous when hiring non-spouse employees, triggering a shift to a traditional 401(k) and incurring higher administrative burdens and costs. While both retirement plans are good options, the right decision depends on individual circumstances, financial goals, and future business plans. Listen to this episode for more insight! Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube Channel Self-Employed Individuals – Calculating Your Own Retirement-Plan Contribution and DeductionSEP IRA Calculator Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

Have you ever accidentally put post-tax money in with pre-tax when rolling over a traditional IRA? On this episode, I’m answering a listener's question about fixing this easy-to-make but frustrating mistake. We’ll look at the definition of a rollover, why you should separate pre-tax and post-tax money, and how to correct this situation if it occurs. You will want to hear this episode if you are interested in... Understanding the IRA rollover process When transitioning jobs, your accumulated retirement benefits don't necessarily stay behind. You've got options: transferring to another retirement plan, cashing it in (with tax implications), or rolling it over to an IRA, commonly known as an individual retirement account. The allure of an IRA rollover lies in enhanced investment choices and potential fee reductions, particularly with brokerage firms like Charles Schwab, Fidelity, or Vanguard. The process? Fairly straightforward. Establish your new traditional or rollover IRA with your fresh employer. If you lack one, reach out to your former employer's retirement plan provider and inquire about their rollover process, often doable via phone verification or a mailed PIN. Important tip: bolster security with two-factor authentication, utilizing your cell number for added protection. When specifying the rollover amount and payee for the check, remember, always make it payable to your new investment company for your benefit to keep it non-taxable. Veer off this path, and the money turns taxable, with a limited 60-day window for the rollover. This process can also uncover after-tax contributions, which need to be kept separate from pre-tax monies. Keep it separate, keep it safe It's crucial to keep pre-tax and post-tax money separate in your retirement accounts, and here's why: segregating these funds ensures you can leverage the benefits effectively. After-tax money, eligible for a Roth IRA rollover, offers tax-free growth for you and your beneficiaries upon withdrawal, provided you meet specific criteria. Failure to segregate these funds can result in several complications. First, without separation, tracking after-tax withdrawals becomes complex, risking double taxation. IRA distributions with a mix of pre and after-tax money lead to prorated taxable amounts, complicating tax calculations. Moreover, beneficiaries might overlook the after-tax funds, leading to potential double taxation for them. Lastly, gains on after-tax money in a traditional IRA don't enjoy tax-free growth, unlike if transferred to a Roth IRA. Thus, separating these funds safeguards against taxation pitfalls and ensures optimal tax benefits for you and your heirs in retirement planning. If you’ve made the mistake of lumping all of your retirement contributions together, listen to this episode for a solution! Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube Channel Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact

Did you inherit an IRA from a non-spouse on January 1, 2020 or later? Well a big change happened this summer that you should be aware of that could impact your 2023 tax season. On this episode, I’m unpacking the passing of and subsequent changes to the SECURE Act, how to best manage an inherited IRA in light of these changes, and how you can leave a legacy with a Roth account. You will want to hear this episode if you are interested in... Understanding the SECURE Act The passing of the SECURE Act in January 2020 brought a significant shift in the landscape of inherited retirement accounts. This act, an abbreviation for "Setting Every Community Up for Retirement Enhancement," altered the rules for beneficiaries inheriting retirement accounts after the set date, restructuring the required minimum distribution (RMD) criteria. Previously, non-spousal living beneficiaries had three distribution options: taking a lump sum, emptying the account within five years of the owner's death, or taking annual lifetime distributions based on their age. However, the SECURE Act introduced changes for beneficiaries post-January 1, 2020. It classified beneficiaries into designated and non-designated categories, further distinguishing between eligible and non-eligible designated beneficiaries. Eligible designated beneficiaries, including surviving spouses, disabled individuals, chronically ill persons, those within a 10-year age range of the deceased, and minor children, retained the option of lifetime distributions. Conversely, non-eligible designated beneficiaries inheriting traditional IRAs after January 1, 2020, lost the lifetime distribution choice. Instead, they must empty the account within 10 years of the original owner's death or face taxation. The complexity amplified with IRS proposed regulations in February 2021, creating subdivisions among non-eligible designated beneficiaries based on the original account owner's required minimum distribution age. Those inheriting from owners before this age had the liberty to wait until the 10th year to begin withdrawals, while those after the age were required yearly distributions from year one of the 10-year window. Managing an inherited IRA Managing an inherited IRA can be a complex yet crucial aspect of financial planning. If you've inherited a retirement account after the original owner reached the required minimum distribution age, understanding the process becomes essential. For instance, if you inherit a $300,000 IRA at 55 years old, determining your RMD involves dividing the previous year's balance by your factor from the life expectancy chart. This calculation mandates annual withdrawals, recalculated based on the prior year's balance and adjusted life expectancy factor. However, strategic planning becomes pivotal in optimizing taxes on these withdrawals. Consulting a financial advisor or accountant becomes crucial to align these IRA distributions with your overall financial landscape, considering potential income sources, Social Security, pensions, capital gains, and future required minimum distributions from personal accounts. Navigating an inherited IRA involves more than mere withdrawals; it's a balancing act between meeting RMDs and minimizing tax impact. Careful planning and leveraging available resources can optimize your inherited IRA management for long-term financial stability. Listen to this episode for more on new beneficiary IRA distribution requirements! Resources Mentioned Retirement Readiness ReviewRetire with Ryan YouTube ChannelPublication 590-B Inherited IRA RMD Calculator Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact