The Retirement Show: Your Life, Your Money with Scott Sierens

In today's episode, we delve into a critical aspect of retirement planning that can significantly impact your financial future – Required Minimum Distributions (RMDs). Whether you've stashed your savings in a 401(k), 403(b), 457, IRA, SEP IRA, or simple IRA, understanding RMDs is crucial, especially if you're approaching your seventies. Join us as we discuss the "why" and "how much" of RMDs, ensuring you're well-prepared for this financial milestone. If you're not yet retired, we've got you covered too! In the latter part of the episode, we'll share valuable steps and strategies to help you proactively reduce the long-term effects of RMDs on your financial well-being. Key discussion points in this episode: If you have savings in tax-deferred accounts such as 401(k), 403(b), 457, IRA, SEP IRA, or simple IRA, you are required to take RMDs once you reach your seventies RMDs exist because when you contributed to tax-deferred accounts, you received tax deductions. The IRS wants to collect the taxes you deferred, so they require you to start withdrawing from these accounts in your retirement years The age at which you must start taking RMDs depends on your date of birth RMDs are calculated based on your account balances and life expectancy tables published by the IRS. The amount you need to withdraw increases as you get older There are strategies to reduce the impact of RMDs, such as switching contributions to Roth accounts, performing Roth conversions, and managing asset allocation Want to get in touch? Web: https://sierensfinancialgroup.com/ Email: office@sierensfinancialgroup.com Phone: 847-235-6989 Read more and get additional financial resources here: http://lifemoneyshow.com Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ

Are you expecting an inheritance, or planning to pass down assets to your loved ones? It's crucial to understand the potential tax implications that come with it. In this episode, we’re diving deep into the world of inheritance taxes. Key discussion points in this episode: If you inherit real estate, the property's value is adjusted to its current market value when you receive it. If you sell it immediately, you may not incur much tax, but holding onto it could lead to tax liability, especially if it appreciates. Inheriting a 401(k), IRA, or similar retirement account means you'll likely have to pay income tax on withdrawals. Explore the benefits and pitfalls of inheriting Roth IRAs, which can provide tax-free growth if managed correctly. Seek advice from financial and tax professionals to make informed decisions about inherited assets and tax planning, as tax laws can change. Want to get in touch? Web: https://sierensfinancialgroup.com/ Email: office@sierensfinancialgroup.com Phone: 847-235-6989 Read more and get additional financial resources here: http://lifemoneyshow.com Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ

Many say that age is just a number, but when it comes to retirement planning, age means much more than that. Join us in this insightful episode as we delve into the world of financial milestones that can significantly impact your retirement planning. From age 50 to 75, we uncover the strategies, opportunities, and pitfalls tied to these pivotal years. Learn why age isn't just a number when it comes to taxes, charitable giving, and required minimum distributions (RMDs), as Scott shares how you can strategically use these age milestones to optimize your retirement planning journey. From Social Security choices to Medicare considerations, we guide you through the intricate web of financial decisions, ensuring that every year counts towards a brighter and more secure retirement. Here are a few milestones we discuss in this episode: At age 50 and over, individuals can contribute more money to their retirement plans such as 401(k), 403(b), and 457, with a $7,500 increase in contribution limits compared to those under 50. The "Rule of 55" allows penalty-free withdrawals from a 401(k) if you leave your job at age 55 or older. Age 62 is the earliest you can start claiming Social Security benefits, full retirement age varies based on birth year, and age 70 provides the maximum benefit. Turning 65 is an important age for considering Medicare enrollment. RMDs are mandatory withdrawals from retirement accounts like IRAs and 401(k)s. These distributions must begin at specific ages, depending on your birth year. Want to get in touch? Web: https://sierensfinancialgroup.com/ Email: office@sierensfinancialgroup.com Phone: 847-235-6989

We’re back with another mailbag episode today! Join us as we tackle a range of topics- from navigating investments during significant life changes to figuring out a retirement travel spending amount, this episode covers a lot of ground. Scott is here to answer your questions, so stick around to see what you can learn. Here are the questions we’ll answer on today’s show: I have a lot of major life changes occurring in the next six months that I think will affect how I should be invested. Should I just park my money in cash until life settles down? How much is a reasonable amount to spend on travel in retirement? My mom died two years ago, and my three sisters and I inherited her house. I've always wanted to sell it, but they're worried about the tax implications of selling the house. How do I explain that it won’t hurt us from a tax perspective? I've been told that I need to make sure I have a mortgage when I retire because that will be the only tax deduction I'll have at that point. I've been paying extra for my house to have it paid off by the time I retire. But maybe I should slow down on that plan? Want to get in touch? Web: https://sierensfinancialgroup.com/ Email: office@sierensfinancialgroup.com Phone: 847-235-6989 Read more and get additional financial resources here: http://lifemoneyshow.com Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ

Recent headlines are buzzing with talk of inflation, recession, and their potential impact on your retirement plans. Should you be concerned? In this episode, Scott takes you through a comprehensive breakdown of these headlines and what they truly mean for your financial future. By understanding how inflation, recession, and Social Security interplay, you can better navigate the complexities of retirement planning and enjoy financial confidence in your golden years. Join us to learn why Scott encourages listeners to focus on crafting a comprehensive retirement income strategy rather than getting caught up in sensational headlines. Here’s what we’ll tackle in today’s show: Understanding the fundamentals of inflation and its relationship with interest rates and the Federal Reserve. Gain insight into economic indicators that impact recession predictions and the overall health of the economy. Learn how Social Security cost-of-living adjustments are calculated and discover strategies to optimize your benefits. The importance of a well-rounded retirement strategy that considers market fluctuations, inflation, and your unique financial goals. Links From Today's Show: U.S. Inflation Rate https://ycharts.com/indicators/us_inflation_rate#:~:text=US%20Inflation%20Rate%20is%20at,in%20price%20over%20a%20year Effective Federal Funds Rate https://ycharts.com/indicators/effective_federal_funds_rate U.S. Unemployment Rate https://ycharts.com/indicators/us_unemployment_rate USA Today Article about Recession https://www.usatoday.com/story/money/2023/08/10/recession-or-soft-landing-2023/70555621007/ USA Today Article about SS https://www.usatoday.com/story/money/personalfinance/2023/08/10/2024-social-security-cola-estimate-unchanged/70565924007/

Scott recently came across an article that discussed 8 ways the richest Americans avoid paying taxes. While many might think that these strategies wouldn’t apply to their financial situation, we’re going to discuss how you can apply these tactics to potentially reduce your taxes. Stay tuned as Scott breaks down these 8 strategies! Here are the 8 strategies that we’ll discuss: 1. No Taxes on Unrealized Capital Gains: Both billionaires and regular investors with investment gains can utilize the strategy of not paying taxes on unrealized capital gains as long as they hold their assets without selling them. 2. Charitable Deductions: Philanthropy not only benefits causes you care about but also offers potential tax advantages through deductions on contributions. 3. Long-Term Capital Gains Rates: Discover the tax benefits of holding assets for over a year, leading to more favorable tax rates compared to ordinary income. 4. Roth IRAs: Understand the power of tax-free growth and withdrawals that Roth IRAs offer, and how they can be an excellent tool for long-term tax reduction. 5. Pass-Through Income: Learn how business owners and self-employed individuals can benefit from tax deductions on pass-through income, and why proper management matters. 6. Tax Breaks from Home Ownership: Explore the tax advantages available to homeowners, including mortgage interest and property tax deductions, provided they itemize their deductions. 7. Medical Expense Deductions: Consider the often-overlooked possibility of deducting medical expenses that exceed a certain percentage of your adjusted gross income, potentially resulting in tax savings. 8. Real Estate Investing Tax Breaks: Delve into the tax benefits of owning rental properties, including depreciation deductions, but also understand the complexities and potential implications when selling. Links From Today's Show: CTA: Tax Guide https://lifemoneyshow.com/taxes/ Review of Article: Here are 8 Ways the Richest Americans Avoid Paying Taxes -The Ascent https://www.fool.com/the-ascent/taxes/articles/here-are-8-ways-the-richest-americans-avoid-paying-taxes/ Want to get in touch? Web: https://sierensfinancialgroup.com/ Email: office@sierensfinancialgroup.com Phone: 847-235-6989 Read more and get additional financial resources here: http://lifemoneyshow.com Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ

In today’s episode, we’re diving into three often underestimated issues that could significantly impact your retirement plan. With valuable insight and practical strategies, Scott sheds light on how to overcome these challenges and secure a smoother financial future. Here are some key takeaways from this episode: Longevity's Wake-Up Call: Drawing from historical trends and technological advancements, Scott reveals how longer lifespans are reshaping retirement timelines. He explores the potential pitfalls of underestimating the years you'll need your nest egg to last and provides practical strategies to extend your financial security horizon. Inflation's Undercurrent: Scott illustrates how inflation erodes the value of your money over time, turning today's savings into tomorrow's budget constraints. He emphasizes the importance of incorporating inflation into your financial blueprint and offers insights into leveraging investment strategies to navigate these turbulent waters. Tax Storms on the Horizon: Unveiling the impact of taxes on your retirement savings, Scott explains how unanticipated tax liabilities can rain on your retirement parade. We’ll discuss actionable strategies, including Roth conversions and tax diversification, to weather the tax storm and preserve more of your hard-earned wealth. Links From Today's Show: https://www.macrotrends.net/countries/USA/united-states/life-expectancy https://am.jpmorgan.com/us/en/asset-management/adv/insights/market-insights/guide-to-the-markets/ https://www.calculator.net/inflation-calculator.html?cstartingamount1=1%2C000&cinmonth1=13&cinyear1=2003&coutmonth1=6&coutyear1=2023&calctype=1&x=Calculate#uscpi Want to get in touch? Web: https://sierensfinancialgroup.com/ Email: office@sierensfinancialgroup.com Phone: 847-235-6989 Read more and get additional financial resources here: http://lifemoneyshow.com Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ

Money can't buy love, but it can certainly start some spicy debates between you and your better half. In this episode, we explore five money minefields that can test even the most solid relationships in retirement. Listen in as Scott shares some tips on how to resolve some of these common financial sources of tension and emphasizes the importance of open communication and compromise. Here are some areas that could cause tension between couples: When is the best time for you and your spouse to retire? (3:40) Determining your retirement lifestyle. (7:24) How to handle inheritances. (12:15) Leaving behind a legacy for your children. (15:12) How do you plan to manage your finances in retirement? (18:11) Want to get in touch? Web: https://sierensfinancialgroup.com/ Email: office@sierensfinancialgroup.com Phone: 847-235-6989 Read more and get additional financial resources here: http://lifemoneyshow.com Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ

We’re back with another mailbag episode for today’s show! We’re here to answer financial questions from listeners just like you. Stick around and see what strategies you can learn from today’s show. Eddie is 62 and hates his job but is making a great income. He asks if it would be a mistake to walk away from this job before retirement. Catherine asks if she should give some money to her grandkids while she’s still alive or wait until after she passes. Stay tuned as Scott explores the concept of being rich versus wealthy, weighs the pros and cons of gifting now versus later and answers a few other mailbag questions about downsizing a home and financial planning. Here's what we’ll discuss in this episode: “I’m 62 and making more money than I ever have, but I hate the politics involved in working for a Fortune 500 company. Would I regret retiring and walking away from this income?” (2:42) “Should I give some money to my kids and grandkids while I’m still alive or just let them inherit everything when I pass?” (13:05) “I’m positive that I have more than enough money to retire. Do you have any advice for someone like me or can I coast through life, financially speaking?” (18:56) Want to get in touch? Web: https://sierensfinancialgroup.com/ Email: office@sierensfinancialgroup.com Phone: 847-235-6989

The journey to retirement can be turbulent, but with the right tools and knowledge, you can navigate this path with confidence. In today’s mailbag episode, we answer some listener questions about handling retirement contributions, fearing a recession, and banking on an inheritance for your retirement. Tune in as Scott discusses the importance of planning for the best and preparing for the worst in this episode and shares helpful strategies for navigating your retirement planning journey. Here's what we’ll discuss in this episode: “I fear a recession, so I might stop contributing to my 401(k). Is this a good or bad idea?” (2:40) “I want to retire, but I can’t imagine not getting a paycheck each month. How do people get used to this?” (8:57) “I’m 60 and would love to retire, but I don’t have enough money yet. Would I be safe to go ahead and do so if I’m expecting an inheritance soon?” (17:48) Want to get in touch? Web: https://sierensfinancialgroup.com/ Email: office@sierensfinancialgroup.com Phone: 847-235-6989 Read more and get additional financial resources here: http://lifemoneyshow.com Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ

Who are you learning from when it comes to making sure your retirement plan is successful? If you’re of the age that your mom and dad retired 20 or 30 years ago, the world was a much different place when they walked away from their paychecks. Let’s talk about how things are different now… Here's what we’ll discuss in this episode: It’s okay to work beyond age 65 + why you should do what is best for your situation. (3:10) People are more active in retirement today and healthcare is more expensive. (6:22) Retirement portfolios today need to be designed to fund expenses for 30 or more years. (9:58) Retirees today often have a lot more problems to juggle than previous generations of retirees. (13:03) Want to get in touch? Web: https://sierensfinancialgroup.com/ Email: office@sierensfinancialgroup.com Phone: 847-235-6989 Read more and get additional financial resources here: http://lifemoneyshow.com Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ

Don’t get us wrong. In many cases, your 401(k) can be your best investment vehicle, offering numerous benefits and tax advantages and many times a 100% return on some of your contributions (also known as an employer match). However, it's important to recognize that it might not always be the optimal choice for everyone. Join us in this thought-provoking episode as we dissect 5 reasons why someone should NOT invest in a 401(k). Here's what we’ll discuss in this episode: If you don’t have an emergency fund or are swimming in debt. (2:44) Your employer doesn’t match contributions. (5:35) If you might need the money before retirement. (8:40) You’re worried about the structure of the plan. (14:06) If you’re worried about future tax implications. (17:10) Want to get in touch? Web: https://sierensfinancialgroup.com/ Email: office@sierensfinancialgroup.com Phone: 847-235-6989 Read more and get additional financial resources here: http://lifemoneyshow.com Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ

It’s the last week of the month, so we’re diving into the listener mailbag for today’s episode! Tune in as Scott answers some listener questions that have recently been sent into the show and see what knowledge you can gain from them. Stick around, because these strategies could be useful for your life or help you avoid financial mistakes in the future. Here's what we’ll discuss in this episode: Mailbag: Should I move my IRA away from a place that charges a 2.5% fee? (1:32) Mailbag: How does paying taxes on Social Security work? (7:44) Mailbag: I just got a raise at work but now I make too much money for a Roth IRA. Where should I invest instead? (13:10) Mailbag: I inherited over 100 acres of land and would like to keep it in the family, but is this the best choice? (17:28) Want to get in touch? Web: https://sierensfinancialgroup.com/ Email: office@sierensfinancialgroup.com Phone: 847-235-6989 Read more and get additional financial resources here: http://lifemoneyshow.com Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ

We commonly get asked if life insurance is needed in retirement. With many advertisements and commercials emphasizing the importance of life insurance, this can be an understandably confusing topic. So, in today’s episode, we’re going to talk about the purpose of life insurance, explore the circumstances that warrant its need, and discuss what you can do with your policies if you find it unnecessary. Here's what we’ll discuss in this episode: What is life insurance and its purpose? (3:19) How do you know if you will need life insurance in retirement? (6:39) Case 1: If you haven’t saved enough and one Social Security won’t be enough for the remaining spouse to maintain and thrive. (8:32) Case 2: If you have a pension with no spousal benefits or reduced benefits. (12:05) Case 3: You just want a death benefit for burial costs. (14:02) How much life insurance will I need? (16:32) What if I don’t need insurance anymore? + What to do with old policies. (20:37) Emotional versus logical decisions when dealing with life insurance policies. (28:42) Get your FREE Social Security benefits guide here! Want to get in touch? Web: https://sierensfinancialgroup.com/ Email: office@sierensfinancialgroup.com Phone: 847-235-6989

Who wouldn’t want extra cash in their pocket without having to pay taxes to the IRS? In today’s episode, Scott dives into the topic of getting more tax-free gains and shares valuable strategies for growing your wealth without paying hefty taxes. From contributing to a Roth 401(k) or SEP Roth to utilizing the backdoor Roth IRA process, Scott provides insights to help you make the most of tax-free gains. Here's what we’ll discuss in this episode: The current economy + Scott’s takeaways from the article “Why Should I Hold Stocks?” (1:52) A few ways to get money into a Roth for more tax-free gains. (10:13) The backdoor Roth IRA process + the Pro-Rata rule. (12:21) You might be able to make after-tax contributions to your 401(k). (14:45) Are Roth conversions right for you? (15:44) Selling your primary house for tax-free gains. (17:48) Getting tax-free money for medical expenses by contributing to a high deductible health savings account. (18:48) Want to get in touch? Web: https://sierensfinancialgroup.com/ Email: office@sierensfinancialgroup.com Phone: 847-235-6989 Read more and get additional financial resources here: http://lifemoneyshow.com Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ MarketWatch Article: https://theirrelevantinvestor.com/2023/06/02/why-should-i-hold-stocks/

No one enjoys making mistakes, as they can result in wasted time and money and cause significant stress and frustration. In the complex world of retirement planning, there are countless pitfalls one could fall into if you aren’t properly prepared. In this episode, we’re going talk about the top 5 money mistakes that Scott often sees in retirement planning and how to avoid making them. Here's what we’ll discuss in this episode: Start strategizing about your future taxes in retirement. (3:13) Utilize efficient investments in the right buckets. (7:40) Should you be considering Roth conversions? (8:57) Taking Social Security too early. (12:13) The importance of having a clear purpose going into retirement. (17:45) Planning for health care expenses in retirement. (20:03) Being too conservative going into retirement. (22:38) Want to get in touch? Web: https://sierensfinancialgroup.com/ Email: office@sierensfinancialgroup.com Phone: 847-235-6989 Read more and get additional financial resources here: http://lifemoneyshow.com Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ Social Security Guide: http://lifemoneyshow.com/socialsecurity/ Life of Tax Article: https://www.self.inc/info/life-of-tax/#:~:text=Key%20statistics,(%241%2C571%2C244)%20spent%20on%20taxes Medicare Episode: https://five.libsyn.com/episodes/view/26813553

In this episode, we dive into a common question: Can you work and receive a wage income while collecting Social Security? The answer may surprise you, as it's yes, maybe, and no. Join us as we explore each response in detail, discussing whether your benefits would be reduced and uncovering ways to reclaim any deductions. Additionally, we'll discuss four key ingredients to consider when deciding the optimal time to take your Social Security benefits. Here's what we’ll discuss in this episode: The three important periods of time to understand when it comes to Social Security. (2:33) Time period 1: Deductions prior to your full retirement age. (8:54) Time period 2: Deductions in the year of your full retirement age. (10:14) Time period 3: Once you reach your full retirement age, there are no longer any deductions when collecting Social Security. (14:12) Deducted benefits don’t go away forever. (16:00) So, when should I take Social Security? (20:04) Want to get in touch? Web: https://sierensfinancialgroup.com/ Email: office@sierensfinancialgroup.com Phone: 847-235-6989 Read more and get additional financial resources here: http://lifemoneyshow.com Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ

In today’s episode, we continue discussing and answering listener questions we’ve received. Scott will answer questions on paying off your home mortgage, navigating retirement discussions with your partner, and leaving behind an inheritance for your children. Listen in as you may find yourself asking a similar question, in a similar scenario, or able to take the strategies discussed to help improve your financial picture! Here's what we’ll discuss in this episode: Mailbag- Should I just pay off the $45,000 left on my mortgage if I have the money? (2:40) Are you getting tax deductions for your mortgage interest? (9:43) Mailbag- How can I convince my spouse to join me in retirement? (11:51) Mailbag- What kind of planning do I need to do to ensure my kids inherit my money and not the IRS? (19:52) Want to get in touch? Web: https://sierensfinancialgroup.com/ Email: office@sierensfinancialgroup.com Phone: 847-235-6989 Read more and get additional financial resources here: http://lifemoneyshow.com Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ

Effective retirement planning involves not only knowing your sources of income, such as Social Security but also having a clear understanding of the expenses that will be incurred from that income. It's very important to consider all potential costs to ensure a comfortable retirement. In Scott’s experience, there is one cost that many individuals tend to overlook or underestimate, and that's what we'll be discussing in today's episode. Here's what we’ll discuss in this episode: Are you planning for Medicare and healthcare costs? (0:43) Healthcare costs can make up a big part of retirement expenses. (4:25) Taking a look at Medicare premiums and deductibles. (6:06) What is IRMAA and who has to pay it? (10:28) IRMAA charges could come back in later years of retirement. (13:32) Are you accounting for inflation with healthcare costs? (16:31) Some factors to plan for when building your income plan. (17:37) Want to get in touch? Web: https://sierensfinancialgroup.com/ Email: office@sierensfinancialgroup.com Phone: 847-235-6989 Read more and get additional financial resources here: http://lifemoneyshow.com Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ

In today's episode, we are going to look at the results of the 2023 Retirement Confidence Survey. Join us as Scott unpacks these surprising statistics, shares his takeaways, and reveals the insights they provide when it comes to retirement planning. Whether you are nearing retirement or have already retired, this episode is packed with valuable information. Here's what we’ll discuss in this episode: Survey one’s results, which compares expected retirement expenses to the actual expense realities. (4:53) Scott’s takeaway from the first survey's results. (8:05) The next survey that compares income source expectations to income source realities. (10:58) Knowing how much you can take out of your retirement savings is important. (17:47) Surveys show that most people favor income stability over maintaining wealth. (21:23) One of the key ingredients that helps increase confidence in retirement. (27:53) Retirement Confidence Survey Links: Survey Website: https://www.ebri.org/retirement/retirement-confidence-survey Survey: https://www.ebri.org/retirement/retirement-confidence-survey Retirement Confidence Sheet: https://www.ebri.org/docs/default-source/rcs/2023-rcs/rcs_23-fs-1_confid.pdf?sfvrsn=738d392f_4 Want to get in touch? Web: https://sierensfinancialgroup.com/ Email: office@sierensfinancialgroup.com Phone: 847-235-6989 Read more and get additional financial resources here: http://lifemoneyshow.com Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ