Ready For Retirement

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!

By the time you get to retirement, it is not uncommon to have many different accounts at multiple different institutions. You may be wondering, "How do I begin the process of consolidating everything without paying a bunch in taxes or penalties?"In this episode, James covers three types of taxes you're likely to encounter when consolidating: ordinary income, capital gain, and early withdrawal penalties. He also explains strategies to sidestep these taxes and penalties and how to decode your current allocation to pinpoint your income needs.Questions answered:What is a good strategy for consolidation?How do you ensure you won't get penalized for consolidating?Timestamps:0:00 Intro1:55 The situation5:18 Capital gains8:46 Income taxes14:03 401k plans17:31 Allocation 21:21 Alternatively23:45 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

It’s common knowledge to have a different portfolio allocation before retirement than you actually have in retirement. But how and when do we actually go about making that change?This episode is based on a listener question: Alan, has a portfolio mix weighted too heavily in stocks. As he shifts into retirement, he is looking to have a new allocation strategy. James discusses how to shift into a different allocation, when the right time to do that is, and what makes the most sense for Alan’s situation.Questions Answered:How do we shift into a new allocation strategy?When should you begin that process?Timestamps:0:00 Intro3:08 The framework8:41 Where should you hold assets?14:14 What’s the timing?18:14 In summary19:11 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

Are short-term savings using an adjustable rate mortgage worth the risk of rate hikes? In this podcast, we cover how adjustable rate mortgages (ARMs) work, how they differ from fixed-rate mortgages, and the reality of their adjustment periods. James uses a real-life scenario to dive into the comparison of adjustable and fixed-rate mortgages. Learn how to plan for the worst-case scenarios and evaluate the benefits and drawbacks of each option. Questions answered:Is it better to get a fixed rate mortgage, or is it better to get an adjustable rate mortgage? What is the risk versus reward?Timestamps:0:00 Intro3:10 Buying a home5:18 How ARMs work7:24 Why use an ARM?10:11 What's the risk?14:07 When not to get an ARM16:15 When to get an ARM18:50 Other considerations20:21 Analysis21:06 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

How can rising interest rates impact your pension value?In this week's episode, we analyze a real-life scenario from our listener, Mark, who is weighing the pros and cons of an early retirement, a higher lump sum, or a commit to an annuity. Learn how to calculate the imputed returns of an income annuity and how to determine if taking the lump sum and investing it would be the better option. Questions Answered:What considerations and calculations can be used to decide between a lump sum payout or an annuity?Are you working against yourself by continuing to work?Timestamps:0:00 Intro2:40 Mark's question4:24 Unpacking it7:38 Don't do your analysis this way14:09 Here's how to do your analysis18:54 Risk19:58 Planning20:50 Takeaway24:47 OutroCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!