Ready For Retirement

Many people believe that when you're retired, you need to own your own home, ideally without a mortgage. But there are instances where renting can make more sense, not just financially but for several other reasons. In this episode, James discusses the pros and cons of owning versus renting and when it makes sense to rent instead of own.Questions answered:In what instances does it make more financial sense to rent than own?What other reasons might factor into the decision to rent?Timestamps:0:00 Intro3:33 Cost of rent rising6:00 Less control7:22 Equity9:00 First issue: tax implications11:49 Second issue: budget15:08 Lifestyle18:44 Your health19:56 Example23:20 Emotional factors24:33 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

Required Minimum Distributions work differently depending on the type of account. How can you most effectively plan for them? Today we're talking through everything you need to know about RMDs so you can understand their nuances and create a plan to best address them.Questions Answered:At what age do you need to take an RMD?What accounts do you have to take an RMD on?Timestamps:0:00 Intro2:59 At what age do you need to take out an RMD?4:19 How much is the RMD going to be?7:40 What accounts do you have to take an RMD on?9:25 Basic rules11:26 Spouse and non-spouse inherited IRAs16:11 Extra benefit20:07 Exceptions to the rules23:54 Keep this in mind25:55 Example32:26 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

For people who are planning to retire early, planning for retirement can be especially daunting. There are many different points to consider, but the most important is ensuring that your income stream will sustain you for the rest of your life.Today’s case study examines someone who is looking to retire early so that you can understand what framework and approach to apply to your own situation.Questions Answered:What do you do for income when you no longer receive a paycheck?What sort of strategies do you use for taxes, medicare, withdrawal, etc?Timestamps:0:00 Intro1:11 Today’s question4:11 Considerations6:55 Strategy and Expenses9:34 Recommendations11:30 Implications13:27 Are they on track?18:35 A couple of things you can do22:22 Adding in Social Security25:42 Quick thoughts27:34 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

One of the best things you can do for your portfolio is to implement the right tax strategy. Each situation is unique and requires a personalized approach.Using a listener’s question, James explains one specific example to show when and how to implement the right strategy. Questions Answered: Why should or shouldn't you do Roth conversions?What should you be mindful of when doing Roth conversions?Timestamps:0:00 Introduction0:53 Listener question4:03 Two core things to focus on5:56 Should we do a Roth conversion?7:13 Taxable income9:16 Lower tax bracket11:24 Taking a basic look14:21 Gray area16:40 Control the balance19:31 Big picture plan20:41 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

Managing your cash reserves in retirement can get complicated quickly between living expenses, multiple income streams, taxes owed, etc. James explains how you should manage your cash reserves based on your financial plan and answers a listener’s question.Questions Answered:How do you incorporate cash needs and short-term assets into your bigger-picture portfolio?How does that change from working years into retirement years?Timestamps:0:00 Intro0:44 Listener question2:42 Review of the week4:09 Three “buckets”5:30 Other tax accounts6:57 Emergency fund7:51 Example10:39 Free access to your accounts12:45 Savings accounts14:37 Reframing your view16:14 Cash vs portfolio18:05 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

When you retire, there are surprising things you’ll wish you knew beforehand. Unlike social security, IRAs, or Medicare, most people don’t often plan for the emotional and personal matters of retirement.James discusses the five things people often regret not understanding before retirement. Questions Answered:What do people regret not knowing before retirement?How can you avoid those mistakes?Timestamps:0:00 Intro3:20 Regret one5:54 Regret two7:42 Regret three9:14 Regret four11:34 Regret five13:45 Summary14:30 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

James discusses a listener’s question about what to do with stock positions and single stock positions, explaining the pros and cons of holding a concentrated stock position. He highlights the importance of understanding tax implications and assessing your ability to handle financial and emotional implications.Questions Answered:What should you do when you have a large concentrated stock position from an investment perspective?How do you exit and diversify your position?Timestamps:0:00 intro3:59 Single concentrated stock positions4:47 The role of taxes7:07 What’s the biggest risk?7:52 Two examples12:10 Takeaway12:30 Other considerations15:35 JP Morgan study20:13 Here’s what I’ve noticed…21:46 Understanding risk24:16 What would I look at?25:52 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

James debunks six popular rules of thumb that can actually do more harm than good when it comes to retirement planning. From the 100-minus-your-age stock allocation rule to the 70% to 80% income replacement myth, James breaks down why rules like these can be counterproductive and suggests alternative strategies that will help you create a personalized financial plan that meets your unique needs and goals. Questions Answered:Which rules of thumb should not be universally applied?What can you do instead?Timestamps:0:00 Introduction2:36 The First Rule5:57 The Second Rule9:04 The Third Rule11:48 The Fourth Rule14:04 The Fifth Rule 18:08 The Sixth Rule20:09 How to Measure Risk22:02 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

In this episode, James tackles a listener’s question about investing a lump sum for his upcoming retirement. James analyzes one's situation and gives realistic insights on determining the right mix of stable and growth assets that will generate a rising income stream for the rest of your life. Tune in for tips on how to secure a comfortable retirement using a real-life example.Questions Answered:Should I invest lump sump sum or dollar cost average approach?How do I invest a lump sum once I receive the funds?What other planning points should I be aware of?Time stamps0:00 Intro0:45 Listener Question2:55 Summarizing4:10 Will You Be Okay?7:10 Make Sure That Number is Accurate8:20 4% Rule9:53 Guyton-Klinger Rule10:53 Two Things to Note13:30 You Need Income to Live on15:15 Part 2 of the Question: How to Invest the Lump Sum18:10 Dollar Cost Averaging21:06 Using An Example23:40 The Principle Is This27:00 Properly Addressing Risk28:50 Most People Do This…30:25 Back to the Listener Question31:00 Summary32:20 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

Oftentimes we make decisions about our portfolios based on what we think is the smartest move. Yet when we do that, we can lose sight of the bigger picture. In this episode, we’ll discuss how the context in which you view your portfolio can steer your financial decisions for years to come.Questions answered:What’s the difference between financial strategy and financial tactics?What are the key pitfalls to avoid?Time stamps0:00 Intro1:15 Losing focus on the bigger strategy2:40 Example of focusing too much on tactics6:40 Your tactics would be…7:45 Why Roth conversions aren’t always the right choice8:50 Example of winning the battle but losing the war11:00 Make sure you’re prioritizing strategy11:20 Summary11:54 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!