Retirement Revealed

Exploring the rules & options for how to handle the Social Security survivor benefit in the event of remarriage.

5 steps to improve your money talks in marriage to set up a better retirement and financial plan with your spouse.

Learn how to calculate the impact on your pension from changing your start date and evaluate the value of your pension based on your financial situation.

Examining the different fee structures for financial advisors and the typical situations that people utilize them in, as well as the red flags to look out for when looking for an advisor.

Discovering the link between Social Security benefits within a couple and breaking down the consequences of deciding when each person starts taking it.

David Lau of DPL Financial Partners discusses the in’s and out’s of annuities, what to look for in a good annuity and how to utilize them properly in your retirement plan. Annuities are a hot button topic among investors, but my guest in this week’s “Retirement Revealed” podcast, David Lau of DPL Financial Partners, sees the inherent problems with how annuities have been treated in the past. He shared his thoughts on how we can change the way annuities are purchased and perceived. The Controversy of Annuities Annuities often find themselves at the center of controversy in the financial world. On the one hand, Nobel Prize-winning economists and retirees alike appreciate the security and guaranteed income they provide. Yet, the mention of annuities can provoke strong negative reactions, mainly due to their high fees and the commissions they generate for salespeople. The irony is that while people might dislike annuities, they cherish their pensions and Social Security, both of which are essentially forms of annuities but without the hefty fees. High Commissions: The Root of the Problem? The high fees associated with annuities often stem from high commissions. This structure has led to situations where clients are sold products that might not be in their best interest, simply because they generate higher commissions for the advisor. For example, I had a client who was recommended to switch from one annuity to another. Upon review, the new annuity did not offer better guarantees, yet the advisor stood to earn a significant commission from the switch. This kind of practice erodes trust and tarnishes the reputation of annuities as a financial product. The Long Surrender Periods Another significant issue with many annuities is the long surrender periods. I recall a case where an annuity purchased in 2005 had a 17-year surrender period, with a penalty as high as 20% in the initial years. Such conditions can trap clients in unfavorable contracts, making it difficult for them to access their funds without substantial penalties. This lack of flexibility further contributes to the negative perception of annuities. Evaluating the Real Benefits Despite these drawbacks, annuities can be beneficial under the right circumstances. They offer tax deferral, guaranteed lifetime income, and downside protection, which can be valuable for certain individuals. However, it’s crucial to evaluate whether these benefits align with your financial goals. For instance, if you’re not seeking lifetime income or don’t need the tax deferral benefits, an annuity might not be the best choice for you. The Importance of Tailored Financial Advice What stands out in the annuity debate is the need for personalized financial advice. The Retirement Income Style Awareness (RISA) profile, for example, helps determine the best investment strategies based on your individual goals and risk tolerance. This approach contrasts with the one-size-fits-all mentality that sometimes pervades the industry. Everyone's financial situation is unique, and the right financial product should fit their specific needs, not the other way around. The Role of Different Financial Advisors Understanding the type of financial advisor you’re working with can also shed light on the recommendations you receive. Advisors affiliated with big brokerage firms, registered investment advisors, or insurance companies may have different biases and product offerings. For example, insurance company advisors might lean towards selling more insurance products, while registered investment advisors might not offer enough insurance options. Striking a balance and ensuring your advisor is independent and unbiased can help you receive more holistic and beneficial advice. Moving Towards Fee-Based Models One promising development is the shift towards fee-based models, which can eliminate the conflict of interest inherent in commission-based sales.

Identifying retirement sentiment from the Employee Benefit Research Institute (EBRI) retirement confidence survey and examining the strategies you can use to avoid unnecessary financial strain in retirement.

Identifying the common health savings account mistakes, identifying key strategies to maximize your HSA and exploring some of the practical ways to utilize your HSA over your lifetime. If you're like many people, you might not be getting the most out of your HSA. Let’s explore why that might be and how you can change it. Understanding HSA Contributions and Limits Firstly, let's clarify how much you can contribute to your HSA. The contribution limits for 2024 are $4,150 for individual coverage and $8,300 for family coverage. However, many people aren't maximizing these contributions. Why? One common misconception is that you can only contribute through payroll deductions. While this is the most common method, you are able to contribute outside of your payroll deductions all the way up to the max. This could significantly enhance your retirement savings due to the triple tax advantage HSAs offer. HSA vs. FSA: Don't Confuse Them Another mistake is treating your HSA like a Flexible Spending Account (FSA). Unlike FSAs, HSAs don’t have a “use it or lose it” rule. Funds in an HSA roll over year after year and can be invested, allowing your money to grow tax-free over time. This means you can contribute the maximum amount to your HSA and not worry about spending it within the same year. The Power of Investing Your HSA A significant error many people make is not investing their HSA funds. If you're only earning a meager 0.5% interest on your HSA balance, you're missing out on potential growth. In fact, I recently helped a client move their HSA to a provider offering a 5% interest rate, resulting in an additional $6,000 in interest annually. This change alone can make a substantial difference in your retirement funds. Using HSAs for Qualified Medical Expenses HSAs are often referred to as "medical IRAs" because they offer similar benefits but with added advantages. Contributions are tax-deductible, growth is tax-deferred, and withdrawals for qualified medical expenses are tax-free. This makes HSAs incredibly valuable for covering future healthcare costs, which are a significant concern for many retirees. You can also use HSA funds for certain insurance premiums, such as long-term care insurance, COBRA, and Medicare Part B. This flexibility adds another layer of security for your retirement years. Strategizing Your HSA Usage Instead of viewing your HSA as a passive asset, you can get more out of it by taking a more strategic approach: Max Out Contributions: Contribute the maximum allowable amount each year. Invest Wisely: Choose an HSA provider that offers high-interest rates or investment options. Delay Withdrawals: Pay for current medical expenses out-of-pocket if possible, and save the receipts. You can reimburse yourself later, allowing your HSA funds to grow. Keep Detailed Records: Maintain a spreadsheet of your medical expenses to simplify future reimbursements. Planning for Excess HSA Funds If you find yourself with excess HSA funds later in life, there are several options. Once you reach 65, withdrawals for non-medical expenses are treated like distributions from a traditional IRA, subject to income tax but no penalties. If you pass away, your spouse can inherit your HSA and continue to use it for qualified medical expenses. For other beneficiaries, the HSA balance becomes taxable income. Consider leaving excess HSA funds to charity, which can provide a tax-efficient legacy. Maximizing your HSA can significantly bolster your retirement savings and provide a buffer against future medical expenses. To get the most out of your HSA, ensure you're fully funding it, investing wisely, and using it strategically. For more detailed guidance, check out my YouTube channel, Mr. Retirement, where I delve into the top HSA mistakes and strategies, and rank the best HSA providers based on interest rates and fees. Don’t forget to leave a rating for the “Retirement Revealed” podca...

Comparing the costs, risks and opportunities of buying and renting a home in retirement in today’s housing market, and some strategies to increase your appeal to lenders.

A deeper look at the risks that prevent people from spending in retirement through the analysis of retirement spending data and evaluating strategies to mitigate those risks and lower the stress and anxiety of retirement financial planning.

You don’t have to view retirement as an end to a journey. Instead, you can take author Eric Brotman’s advice and “graduate” instead of “retire”. Explore the different cultural understandings of retirement and discover a new, refreshing view on redefining your later years.

Breaking down the major retirement risks and evaluating the different strategies you can take to mitigate them and create a secure retirement.

Examining key takeaways and trends uncovered in the Allspring Global Investments Retirement Survey results with Nate Miles, Allspring head of Global Client Strategy.

Identifying the right start dates for Social Security depending on your unique situation, when your Social Security benefit will send you your first check based on your birthday, and IRMAA cost strategies. Every month I take an episode of “Retirement Revealed” to answer listener questions about retirement, Social Security and real life financial scenarios that I think other listeners could benefit from exploring. This month, we dive into a topic I recently produced a video on–which I’ll provide a link to below)--a clarifying question about Social Security income related to Medicare and a closer look at income-related monthly adjustment amount (IRMAA). 0:45 - Social Security Scenario: I turned 67 in January. My wife will be 62 in October. She does not have Social Security on her own. We both expect to live to 82. When should we each start? The optimal timing for claiming Social Security benefits takes into account individual life expectancies rather than relying solely on averages. I recommend people use a service like www.longevityillustrator.org to find your own personalized life expectancy estimate. Another important thing to keep in mind is the strategy that can come into play for couples with an age gap. You may be able to maximize your survivor benefit by delaying one of your benefits. 5:08 - SS + Medicare Question: I will claim Social Security when I turn 70 on Dec. 22. Will I receive my first check in December or January? Will my Medicare come out of that? Social Security benefits are typically paid the month after your birth month. You have to have lived through your Social Security month in order to collect your first check. Medicare operates similarly–and yes, it is taken out of your Social Security. If you’re taking Medicare but you aren’t yet on Social Security, you’ll have to set up a different way to pay for Medicare. One way that works for many people is using “Medicare Easypay” and have your payment automatically deducted from your savings or checking account. 9:09 - Income-Related Monthly Adjustment Amount (IRMAA): We have to pay extra for Medicare this year. Is it every year? How is it calculated and can I avoid that? When dealing with IRMAA, it’s important to proactively plan your income to minimize costs. IRMAA income thresholds are calculated based on your income 2 years prior, and if your income is higher than the threshold, you pay more for your Medicare coverage. Knowing this threshold is $120,000 in income for a single person and $206,000 for a married couple allows you to plan ahead with how you structure your income and avoid paying that extra amount for Medicare on an annual basis. If you’ve got questions you’d like to have answered in a future episode of “Retirement Revealed” be sure to fill out the information on the yellow box to the right of this post. Don’t forget to leave a rating for the “Retirement Revealed” podcast if you’ve been enjoying these episodes! Subscribe to Retirement Revealed to get new episodes every Wednesday. Apple Podcasts: https://podcasts.apple.com/us/podcast/retirement-revealed/id1488769337 Spotify Podcasts: https://bit.ly/RetirementRevealedSpotify Additional Links: Longevityillustrator.org SSA: The United States Social Security Administration How to Know When to Start Social Security - Mr. Retirement Video Connect With Jeremy Keil: Keil Financial Partners LinkedIn: Jeremy Keil Facebook: Jeremy Keil LinkedIn: Keil Financial Partners YouTube: Retirement Revealed Book an Intro Call with Jeremy’s Team Disclosures: Content Results and figures presented within the above links are hypothetical, unaudited and are intended for illustrative purposes only. Liability Keil Financial Partners assumes no liability or responsibility for any errors, omissions, or other issues with the links and their respective contents. This includes both the website content and any potential bugs,

Downsizing is the go-to strategy for people planning for retirement, but what if there’s a better way? Author and journalist Marni Jameson joins Retirement Revealed to explain how to "rightsize” in retirement to ensure the quality of your home and belongings match your investment of time and energy.

There’s the typical timing to file for Social Security and the optimal way. Are they the same thing? In this episode of “Retirement Revealed,” Jeremy dives into a 3 step process to evaluate the best time to start taking Social Security and how to gather more accurate information to make informed retirement decisions.

Retirement means your “career” has ended, but it doesn’t mean your impact and meaning are finished. Carl Landau, host of the “I Used to Be Somebody” podcast and co-author of “Pickleball for Dummies” explains what it means to be “un-retired” and how he coaches retirees to find meaning and adventure in retirement.

Exploring how to approach cash gifting to your children, how to best utilize IRAs in retirement and how to lower your lifetime tax payments by planning out IRA conversions.

Marcia Mantell, author of books on retirement & Social Security planning for women, joins Jeremy Keil to discuss the unique challenges and opportunities that await many women in retirement.

Examining 3 simple but powerful steps to help you prepare for retirement, exploring your options on important aspects of retirement people often skip and creating realistic projections for your retirement spending.