Ready For Retirement

Dr. Riley Moynes, author and creator of a popular TED Talk joins James to discuss his own retirement which led him to become the author of The 4 Phases of Retirement. While Dr. Moynes was financially prepared for retirement, he wasn’t prepared for the boredom and depression that followed the first two years of retirement fun. As it turns out, his retirement path was far from unusual. Dr. Moynes shares what leads to a truly meaningful retirement and how you can prepare now for a meaningful, deeply satisfying retirement, one that is about much more than vacations and golf.Connect with Dr. Riley Moynes:Website: https://thefourphases.com/YouTube Channel: https://www.youtube.com/@rileymoynes545TedX Talk: https://youtu.be/DMHMOQ_054U?si=wr1B3lw5ysc05GPSBook: https://thefourphases.com/buy-the-book/The Workshop: https://thefourphases.com/book-a-workshop/Questions Answered:Why are some people unhappy in retirement, and is there a way to prevent that?What are some reflective questions that can set me on the path to a satisfying retirement?Timestamps:0:00 - Dr. Riley Moynes and his research4:55 - Phases 1&2 - vacation and boredom9:57 - Phases 3&4 - trial and reinvention12:45 - Ask the tough questions16:06 - Skip Phase 2 and 3?18:39 - Pre-retirement preparations22:52 - Service to others26:05 - SummaryCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

Listener Sherry asks a good question: How do large, one-off expenses (like a new roof, new car, etc.) fit in the 4% Rule? James explains the concept of the 4% Rule and its limitations while demonstrating how it can be an effective guideline in planning and forecasting retirement success. He addresses the importance of anticipating one-off expenses and, depending on your portfolio withdrawal rate, using sinking funds to get a reality check on where you stand.Questions answered:Are one-off expenses covered in the 4% Rule?Who should be concerned with creating sinking funds for one-off expenses?Timestamps:0:00 - Sherry’s question3:19 - Shortcomings of the 4% Rule5:30 - Look at income and outcome6:58 - Portfolio withdrawal rate10:51 - Example of no margin13:02 - Sinking funds16:57 - New reality check18:49 - Consider the duration of expenses20:17 - The wrap-upCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

Healthcare subsidies are like a tax break and should always be optimized, right? That seems like an easy question that should have a straightforward answer. But the correct answer is, “It depends.” Cole from Move Health is back, as he and James explain how advanced premium tax credits work, when you might not want to take them, and why it’s imperative to have a financial plan and a tax strategy in mind as you make healthcare insurance decisions. They share case studies and remind listeners that we don’t need to feel intimidated regarding healthcare in early retirement. We just need to be informed.Questions Answered:Who is eligible for advanced premium tax credits?When should I not try to optimize healthcare subsidies?Timestamps:0:00 - ACA coverage2:19 - Advanced premium tax credits4:59 - Determining subsidies8:09 - Modified adjusted gross income9:36 - Estimating income13:17 - Optiming premiums and subsidies15:28 - Tax/subsidies strategies18:56 - A case study21:43 - When to optimize subsidies27:10 - Another case study29:34 - Tips and takeawaysCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

We meet many people who are in a position to retire early. But when they think about healthcare in retirement and not being eligible for Medicare until age 65, they feel stuck, even though they’re ready for retirement in every other way. Cole Craven of Move Health Partners chats with James about the healthcare options that are available for early retirees and why there is no one-size-fits-all, “best” solution. He also lays out a general timeline for ensuring a smooth transition between your current healthcare, early-retirement healthcare, and post-age 65 healthcare.Questions Answered:What are my healthcare options if I retire before age 65?What are advanced premium tax credits, and how can I make the most of them?Time stamps:0:00 - Cole Craven on early retirement4:05 - 5 pre-65 retirement healthcare options9:35 - Determining the best option11:38 - Advanced premium tax credits13:27 - Upcoming ACA changes16:16 - Is low-income strategy a good idea?18:50 - How/where to get coverage22:03 - Timeline for pre-and-post 6524:32 - Wrap-upCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

Drew Shockley of MOVE Health Partners joins James to address questions about Medicare. He overviews the Medicare system, explains Parts A, B, C, and D, and breaks down what Medicare does and doesn’t cover, who is covered, and when/why you might want alternative coverage. Questions Answered:I’m 65, still working and qualify for Medicare, but I have health coverage through my employer. What should I do?Does Medicare provide good, reliable coverage?Timestamps:0:00 - Medicare overview5:28 - About enrollment9:49 - Part C, Advantage vs traditional16:26 - Switching plans19:26 - Plans F, G, etc.22:56 - Plan D26:11 - Dental and vision28:25 - Fear about coverage33:09 - Denied coverage?35:19 - What Medicare doesn’t cover37:24 - Other options39:08 - MOVE Health PartnersCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

Graham and his wife are in their early 50s and plan to retire in 5 years. He wonders if they should continue maxing out their 401ks, how their investments should change, and what they should do with savings accounts to best prepare for their retirement goals. James addresses these questions, Graham’s biggest risk as he nears retirement, and potential tax strategies for him to employ.Questions answered:Which is a better tax strategy – tax gain harvesting or Roth conversions?Do I need to have a dedicated emergency fund in cash? Timestamps:0:00 - Graham’s question3:16 - The move from single position5:43 - Identify biggest risk8:00 - Tax gain harvesting and Roth conversions12:14 - Tax strategy15:14 - Two variables to consider20:44 - Max out 401k plans?22:07 - A question of tax24:52 - Tax plan in action26:44 - Concern about emergency savingsCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

Drew, a burnt-out, financially responsible 40-something father of two, hopes he can scale back from his stressful job and still be okay when it’s time to retire. James offers a practical and philosophical take as he tackles Drew’s question. He demonstrates how to determine when Drew and his wife will be in a good position to fully retire. He also challenges listeners to assess their spending and saving habits and to strike a balance between planning for an unknown future while still finding fulfillment, freedom, and purpose today. Questions answered:How can I determine if I can stop saving for retirement?What introspective questions should I ask now to help me live well pre- and post-retirement?Timestamps:0:00 - Drew’s question2:07 - Two mindsets6:08 - Assess current and future needs7:33 - Projection exercise11:28 - Working backwards14:50 - Working 10 more years18:21 - Back to the initial question19:47 - Considering growth rate21:38 - A philosophical question23:52 - 3 Levers26:07 - Check spending/saving habitsCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

How do you know if you can retire? It seems straightforward, but the answer is far from simple. Beyond portfolio balances and age thresholds, there are other things to consider. James explains his three-step test to determine your retirement readiness.By pulling together principles from the 4% Rule, straight-line projection, and a Monte Carlo analysis, you can assess whether your portfolio can sustain your desired lifestyle over decades amid various market conditions. However, these tests alone don’t paint the complete picture. James emphasizes the importance of considering other assets like potential inheritances or property downsizing to more fully and confidently evaluate when you can retire.Questions Answered:How can I determine if I’m financially ready to retire?Is the 4% Rule sufficient for determining retirement readiness?Timestamps:0:00 - Consider withdrawal rate2:14 - 4% Rule5:12 - Not a perfect strategy7:39 - Straight line projection 9:09 - Downside of SL projection 11:07 - Monte Carlo test13:07 - Understand severity of failure16:20 - Defining success, 18:25 - Looking aheadCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

Jennifer, 54, plans to retire soon. Her husband, 70, is retired, on Social Security, and dealing with some severe health issues. Jennifer worries about possibly becoming single in retirement, which could result in a higher tax bracket for her. Jennifer is considering whether to convert her traditional accounts to Roth to lower future taxes or to change her contributions to Roth 403b, even if it means paying more taxes now. James walks us through several factors for her to consider and demonstrates why her future tax situation is likely not as dire as she thinks.Questions Answered:How should Jennifer maximize her retirement savings in light of her current financial situation and future tax implications?What factors must Jennifer consider when deciding whether to convert her traditional retirement accounts to Roth or change her contributions to Roth 403b?Timestamps:0:00 - Jennifer’s question4:46 - Retire early for tax benefits?6:05 - Roth conversion strategy8:43 - Consider future expenses 12:38 - Assess SS strategies13:56 - Consider living situation15:54 - The conversion question17:54 - Main takeawaysCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

Joe is planning for retirement and wants to minimize his tax burden, especially on the interest earned from his three annuities. James explains that non-qualified annuities are purchased with post-tax money and offer tax deferral on growth until withdrawal. When taking out funds, the principal is tax-free, but earnings are taxed at ordinary income rates. He explores strategies for tax-efficient withdrawals. He also touches on annuities, options like a 1035 exchange to transfer an annuity into a different product for improved performance, the tax implications for heirs, and early withdrawal penalties before age 59 and a half.Questions Answered:How are non-qualified annuities taxed upon distribution, including both lump sum and annuity options?What strategies can be implemented to keep the tax burden as low as possible when withdrawing from non-qualified annuities?Timestamps:0:00 - Joe’s question1:52 - Non-qualified annuity overview5:11 - Potential tax strategies10:02 - Annuitization option12:31 - Annuity regret13:22 - 1035 Exchange14:33 - Things to knowCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!