Ready For Retirement

 Tax loss harvesting is a strategy that investors use to reduce their tax bill. However, there are many misconceptions about tax loss harvesting, including when it's valuable and how to do it effectively.James debunks some of the most common myths about tax loss harvesting and explains how to use this strategy to your advantage.Questions Answered:How can investors benefit from tax loss harvesting by offsetting capital gains and ordinary income taxes?What are the rules and limitations surrounding tax loss harvesting, including the wash sale rule?Timestamps:0:00 Intro3:59 Listener example6:26 Identify a replacement security11:17 Example17:20 Capital losses20:30 Looking at tax loss harvest23:44 Intentionally realizing gains24:25 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

James walks through a framework of how you ensure that your legacy goals include more than just leaving a chunk of money to your kids when you're gone.He explains the key concepts that can help your child develop strong money management skills. From starting early to diversifying your investments, learn how you can help set your child up for financial successQuestions Answered:Why is it important to start investing for retirement early in life?How does early investment preparation not only benefit your retirement but also your financial well-being in your younger years?Timestamps:0:00 Intro3:42 Here's where to start7:36 Owner vs lender13:46 Diversification15:42 Starting early18:26 Why it matters21:53 Where are you investing?25:11 Questions to consider26:08 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

What are the benefits of Roth conversions in retirement planning? James addresses questions about when Roth conversions become worthwhile.This episode explores key factors:Changes in tax bracketSpousal scenariosImpact of portfolio size on tax savingsPotential tax savings tend to increase with a higher portfolio balance but be careful not to take unnecessary Roth conversions. James explains different strategies to optimize tax planning.Questions answered:Is there a specific portfolio value at which Roth conversions should be considered?Why might one choose not to do a Roth conversion, and what are the alternatives?Timestamps:0:00 Intro3:14 Scenario6:47 Tax bracket11:15 Provisional income14:27 Spousal scenario16:45 Bottom line20:29 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

Have you ever wondered if purchasing an annuity makes sense for you?There are two conflicting opinions from financial advisors: some advocate for annuities while others advise against them. James explores the concept of being a fiduciary and the challenges of understanding the financial advisory industry. He covers when annuities may be a suitable option, such as providing guarantees, protecting against longevity, guaranteeing core expenses, and the benefits of Qualified Longevity Annuity Contracts (QLACs) in reducing required minimum distributions.There is no one-size-fits-all approach to financial planning. Your individual circumstances and goals will determine whether annuities are the right choice. It's always a good idea to seek professional advice and review all your options when making decisions about annuities.Questions answered:Is an annuity a suitable financial product for retirement planning?What factors should you consider when deciding whether to purchase an annuity?Timestamps:0:00 Intro2:51 What is a fiduciary?8:43 Explaining annuities10:53 The wrong way to look at it13:23 Another way to look at it17:53 When is there a case for an annuity?19:49 Another case22:06 Qualified Longevity Annuity Contract24:40 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

If you're in a high tax bracket now and expect to remain in a high tax bracket after retirement, should you prioritize pre-tax retirement accounts or Roth retirement accounts for individuals? James answers this and discusses various factors to consider in making this decision, including current and future tax brackets, required minimum distributions (RMDs), charitable giving, life expectancy, and the impact on heirs. Using a real-life scenario, James offers a thoughtful approach to help you make an informed decision based on your unique circumstances.Questions Answered:Should individuals in high current tax brackets prioritize pre-tax retirement accounts or Roth retirement accounts? What impact will required minimum distributions (RMDs) have on your future tax situation?Timestamps:0:00 Intro3:48 Considering Roth contributions7:05 Example13:25 Charitable giving15:42 Life expectancy18:18 What about your heirs?20:52 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

James debunks common misconceptions about retirement portfolio allocation and explains how to factor in your pension, social security, and other fixed-income sources into your plan. He discusses the importance of dividends in assessing investment performance, risk capacity and tolerance, and how mastering them can help determine your optimal retirement portfolio allocation.Questions answered:How should you allocate your portfolio in retirement, considering pensions, social security, and other fixed-income sources?What is risk capacity, and how does it factor into portfolio allocation in retirement?Timestamps:0:003:34 The wrong way5:09 The right way5:14 Example 17:59 Risk capacity14:53 Example 219:05 Another consideration21:00 Risk tolerance21:40 Example 322:28 The emotional side24:35 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

In this  episode, James emphasizes the importance of having a well-thought-out financial plan for retirement, rather than relying solely on the size of your investment portfolio. Financial security doesn't come from a specific portfolio number but from having a comprehensive plan.Using a listener's question, James walks through a step-by-step approach to assessing retirement readiness. He discusses aspects like income planning, investment strategies, tax optimization, and protection through insurance and estate planning.Shifting your mindset from a saving mentality to a spending mentality in retirement allows you  to fully enjoy your savings. Learn how to determine if you'll be financially secure in retirement and how to optimize your financial resources to enhance your overall retirement experience.Questions Answered:How do you assess your retirement readiness?How can you optimize their retirement plan to enhance their overall retirement experience?Timestamps:0:00 Intro1:26 Listener question4:03 The bills6:03 Alternative strategy10:36 The first thing we looked at12:55 How to maximize15:35 Your investments18:58 Risk capacity21:05 Deductions23:19 Big picture consideration25:28 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

In this episode James explores signs that may indicate it's time to move on from a current financial advisor and discusses the professional and respectful ways to handle this transition. There are three core aspects to consider when contemplating the change:Deciding to Leave:The first step involves recognizing signs that it may be time to move on. Telling Your Advisor:James provides two scripts for notifying your financial advisor about your decision.Handling Logistics:After the decision to switch advisors is made, there are several logistical considerations.James highlights that making the decision to switch advisors can be emotionally challenging, but ultimately, it's a crucial step in securing your financial future.Questions Answered:How do you decide if it's time to leave your financial advisor?What's the best way to tell them that you're leaving?How do you handle the logistics? Show notes links:When Should You Work with a Financial Advisor?https://www.youtube.com/watch?v=1V1X-dovlF4Script: Break up with your Financial Advisorhttps://docs.google.com/document/d/1IwYM5DDcvm0FEtkc99Lf9sy840wmGfhLm62-o7NmMpg/editTimestamps:0:00 Intro1:18 How to decide7:00 How to tell them8:10 Script 19:09 Script 211:03 Script 315:28 The logistics17:54 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

One of the most ironic things about retirement spending is that the people who have saved the most money are often the same ones that have the most difficult time spending that money. We often think that if we save up enough money or build up enough of a portfolio that in retirement it will open up unlimited fun and enjoyment.The reality is, for those who have saved well, one of the hardest things you'll find about retirement is the difficulty you'll likely face trying to spend some of that money. James discusses how you how you can shift your savings mindset to a spending mindset.Questions Answered:Why is it so difficult to go from a savings mindset to a spending mindset?How do we start making the shift with our mindset? Timestamps:0:00 Intro4:57 James' perspective7:48 Example10:47 We need to realize this14:52 How do we reframe?16:58 Pillar 118:38 Pillar 219:19 Pillar 320:36 Pillar 422:25 Pillar524:34 Summary27:18 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

The majority of people who participate in some level of charitable giving in retirement aren't getting a tax deduction for any of it. While external reasons should drive charitable giving, you should absolutely look to maximize the tax effectiveness of any giving you're already doing.In this episode, James covers how to optimize your tax benefits, detailing donor-advised funds, an often-overlooked tool for maximizing your tax benefits. Learn about when to write off cash contributions, gift appreciated securities, and how your mortgage can play a role in the deductibility of your giving. Questions answered:What should you do differently with your tax strategy when making charitable donations?When does a donor-advised fund make sense for you?Timestamps:0:00 Intro1:28 Deductions4:02 Why it matters6:15 Donor advised fund11:03 Important information14:16 When does it make sense?17:43 When does it not make sense?23:09 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!