Retirement Planning Education, with Andy Panko #188 - Q&A edition...Social Security spousal benefits, cognitive biases in investing, changing state tax domicile, naming minors as beneficiaries and MORE!
11 snips
Jan 22, 2026 Listeners dive into the complexities of spousal Social Security benefits and the rules surrounding them. Andy demystifies how to view pre-tax retirement accounts after taxes and discusses naming minors as beneficiaries. He shares insights on cognitive biases in investing, highlighting the most prevalent ones he encounters. The episode also covers tips for changing state tax domicile and the implications of guaranteed income like Social Security on asset allocation. Lastly, he reexamines the 4% rule for retirement withdrawals.
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Spousal Social Security Can't Be Picked Separately
- You cannot have a spouse collect a spousal benefit while delaying their own Social Security when both are alive; "deemed filing" forces claiming the highest available benefit.
- Plan spousal and survivor strategies around who files first and consider survivor rules if one spouse predeceases the other.
Pre-Tax Accounts Are Deferred Income
- Pre-tax retirement accounts represent deferred taxable income, not fully spendable assets today.
- Estimating a future effective tax rate (e.g., 25%) is useful but uncertain, so plan to minimize lifetime taxes.
Prorate Withdrawals When IRA Has After-Tax Basis
- For IRAs with both after-tax basis and pre-tax funds, withdrawals are prorated so only the pre-tax portion is taxable.
- Track basis carefully (Form 8606) so you avoid double-taxing non-deductible contributions.