Ready For Retirement

The topic on this episode of the Ready for Retirement podcast is goals. Our host, James, urges listeners to reframe how they think about financial goal-setting. He walks through why goals matter as well as some of the most common goals and how to approach them. When you think about goals, consider what is important to you, what you want to be able to accomplish in the future, and what you envision when you picture a successful outcome.James says that goals are important because if you don’t know what you’re aiming for, you won’t know if you’re on track. Setting a goal helps you to make a plan and determine the appropriate timeline and savings or investment strategy. He covers common goals and gives tips on how to think about planning for them: retirement, home purchase, college funds (for children or grandchildren), legacy, and other miscellaneous goals. LET'S CONNECT!FacebookLinkedInWebsiteENJOY THE SHOW?Don't miss an episode, subscribe via Apple Podcasts, Stitcher, Spotify, or Google PlayHave a question you want answered on a future episode? Submit it hereCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

On this episode of the Ready for Retirement podcast, James discusses target date funds and explains what they are, how they work, what the fees are, and how to know if a target date fund is the best option for you. He tells listeners that when creating a 401k, you’re given a list of fund options to choose from as you invest money. One option is to build your portfolio on your own. Another option is to select a target date fund, which is simply a portfolio that is built for you based on the year you think you might retire.James then discusses the differences that can exist between target date funds such as the peripheral asset classes and fees. You’ll also learn how to decide if a target date fund is right for you. It takes the decision-making pressure off of you and it may have exposure to asset classes you wouldn’t have access to with individual funds in your 401k. However, if you know what you’re doing, replicating the blend of a target date fund and creating a portfolio that’s unique to your own personal goals could be more beneficial. LET'S CONNECT!FacebookLinkedInWebsiteENJOY THE SHOW?Don't miss an episode, subscribe via Apple Podcasts, Stitcher, Spotify, or Google PlayHave a question you want answered on a future episode? Submit it hereCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

Our topic on this episode of the Ready for Retirement podcast is thinking through the question “How soon before retirement should you start to adjust your portfolio?” James discusses the statistical and practical standpoints on this topic to help listeners develop a comprehensive view of this question and its trickle-down effects. By the numbers, there are several things to keep in mind: the data regarding positive returns in the S&P 500, your time until retirement, and ways to diversify your portfolio to protect it from drastic swings based on the market. It is also important to recognize that stocks and bonds complement each other and often have opposite returns trends, so when one goes down the other is likely going up. When it comes to the practical application of these financial principles, James outlines how this might look in a real-life scenario which is worth a listen. To answer the original question, James summarizes his thoughts by marking the 10-year mark as a milestone at which you should consider adjusting your portfolio to make it more conservative and resistant to market fluctuations. LET'S CONNECT!FacebookLinkedInWebsiteENJOY THE SHOW?Don't miss an episode, subscribe via Apple Podcasts, Stitcher, Spotify, or Google PlayHave a question you want answered on a future episode? Submit it hereCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

Our topic on this episode of the Ready for Retirement podcast is the question “How much can I spend in retirement?” Most people are concerned that they won’t have enough money and they worry that they will outlive their money, but James outlines the traditional and newer thought processes on withdrawals amounts during this episode. While the traditional rule of thumb has been to withdraw 4% of your portfolio amount in the first year and then increase your withdrawals every year based on inflation, Jonathan Guyton has come out with a new school of thought in the past 15 years that is proving beneficial for retirement planning.Guyton’s guidelines have proven with 95% confidence that a 5.2-5.6% initial withdrawal and then monitoring the market before deciding on your withdrawal amount every year will be sufficient for a 40-year retirement horizon. The four main rules associated with this method are: the portfolio management rule, the withdrawal rule, the capital preservation rule, and the prosperity rule. Coupled with the consideration that retirement costs are not static and that your income sources and expenses will likely fluctuate throughout retirement, James encourages his clients and listeners to have a holistic approach. Remaining aware of market conditions and the status of your own portfolio rather than just making blind withdrawals is always the best course of action. LET'S CONNECT!FacebookLinkedInWebsiteENJOY THE SHOW?Don't miss an episode, subscribe via Apple Podcasts, Stitcher, Spotify, or Google PlayHave a question you want answered on a future episode? Submit it hereCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

On this episode of the Ready for Retirement podcast, James provides listeners with a broad but detailed overview of Medicare. Medicare is the federally maintained health care plan for all qualifying Americans aged 65 and up. There is always something in the news about Medicare and it can seem daunting to understand all of the different parts and supplemental plans, but James breaks down the basics during this episode. Medicare Part A is also known as hospital insurance, covering inpatient and skilled nursing facility treatments as well as related prescription drugs for a specified length of time. Medicare Part B is also known as medical insurance, covering outpatient treatment by healthcare providers and preventative care. Medicare Part D is prescription drug coverage and is often paired up with a Medicare Supplement plan (Medigap). Medigap plans coupled with Medicare Part D is one option for reducing your risk in the case of medical emergencies. These plans typically have higher premiums with lower out of pocket costs and are good for folks with health concerns or pre-existing medical conditions.Medicare Advantage plans are similar to employer-sponsored healthcare plans and typically feature lower premiums and higher deductibles and copays. These plans are good for people who are in good health and do not anticipate needing medical care outside of their network or by specialists. James recommends that people looking for more comprehensive information to refer to Ashby Daniels’ book “Medicare Simplified.” LET'S CONNECT!FacebookLinkedInWebsiteENJOY THE SHOW?Don't miss an episode, subscribe via Apple Podcasts, Stitcher, Spotify, or Google PlayHave a question you want answered on a future episode? Submit it hereCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

The COVID-19 pandemic hit hard in early 2020, and it continues to remain prevalent as we near the end of the year. Whether you’ve just recently retired, or it’s coming up in the next few years, it’s likely the virus has brought about some financial uncertainty regarding your readiness for retirement. Before making any sudden changes, it’s important to remain rational and avoid these five big retirement mistakes.LET'S CONNECT!FacebookLinkedInWebsiteENJOY THE SHOW?Don't miss an episode, subscribe via Apple Podcasts, Stitcher, Spotify, or Google PlayHave a question you want answered on a future episode? Submit it hereCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

James introduces the problem of saving for medical expenses in retirement and explains the concept of the Health Savings Account.In this brief episode, James lays out some of the basics of the HSA, including its framework and operation.  James points out that the HSA is one of the easiest ways to save and accumulate money tax-free, whether saving for health expenses or not.He encourages listeners to consider an HSA for retirement spending needs because of its easy growth. He mentions that HSAs are only available to people who participate in a high-deductible health plan. Your decision to participate in a high-deductible plan is a separate conversation, though, so you could say this advice is for people with high-deductible plans only.LET'S CONNECT!FacebookLinkedInWebsiteENJOY THE SHOW?Don't miss an episode, subscribe via Apple Podcasts, Stitcher, Spotify, or Google PlayHave a question you want answered on a future episode? Submit it hereCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

The topic of this episode of the Ready for Retirement podcast is Roth IRAs. A Roth IRA allows your money to grow tax-free and provides fewer limitations than other investment accounts. James outlines 7 of the main benefits of using Roth IRAs in your portfolio to strengthen your retirement funding.Unlike other investment accounts, you are able to withdraw your contributions at any time as long as you have met the 5-year rule, and these funds are not subject to the required minimum distributions that other investment accounts require. Also, even though Roth contributions are not included in your provisional income, if your income prohibits you from contributing to a Roth IRA usually, you could open up a spousal Roth IRA account and/or look into doing a backdoor Roth conversion from a traditional IRA account. Finally, Roth contributions are not included in the IRMAA calculation, so Roth IRAs can help your Medicare Part B and Part D premiums stay lower than contributions to other accounts that would be considered in the IRMAA. If you have questions about Roth IRAs, backdoor conversions, or anything else discussed on today’s show, reach out to James or to your personal financial advisor for more information!LET'S CONNECT!FacebookLinkedInWebsiteENJOY THE SHOW?Don't miss an episode, subscribe via Apple Podcasts, Stitcher, Spotify, or Google PlayHave a question you want answered on a future episode? Submit it hereCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

In this episode of the Ready for Retirement podcast, James discusses gold and whether it is a good investment or not. He begins by giving an update on the current price, reminding listeners that this is a unique environment and conclusions should be drawn from historical data only. After giving a disclaimer about his experience, he explores whether gold has a history of holding value. Prior to 1971, the gold standard kept the price of gold artificially low. This can skew the data, so the question is not whether it held its value, but what are the alternatives? Most notably, can you compound your money by investing in companies instead?Next, James discusses whether gold is an inflation hedge and finds that the real return (earnings minus inflation) during this period falls at just 1.3%. By using the standard deviation to determine risk, James concludes that the stock market actually exhibited less risk over time. Gold hedged against inflation, but at a significant cost because fluctuations and swings were dramatic.To conclude, James studies whether gold is good for portfolio diversification. The way he looks at it, gold is not an investment because it can’t generate earnings. So is it a good investment? It depends on the decade. By looking at the growth of gold compared to the S&P 500, it is clear that gold’s growth mostly came in the period following the end of the gold standard. Not only did it have more down years than companies, but it also had more down years of large percentages. In short, James determines, gold is not the best investment given the alternatives.LET'S CONNECT!FacebookLinkedInWebsiteENJOY THE SHOW?Don't miss an episode, subscribe via Apple Podcasts, Stitcher, Spotify, or Google PlayHave a question you want answered on a future episode? Submit it hereCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

The topic of this episode of the Ready for Retirement podcast is tax-efficient ways to invest after maxing out your 401(k). You might not know that you can deposit after-tax contributions to your employer 401(k) plan, which will allow you to save future money and attain higher growth in that plan. Another option is mega backdoor Roth contributions, which are in-plan conversions to Roth IRAs that grow tax-free and add to your retirement income.If you have already employed these options and you are looking for more, it would be worth your while to explore backdoor Roth IRA contributions, health savings accounts, and opening up a solo 401(k) account based on any side income that you have coming in. Beyond these options, you could also look into a regular taxable account which is not a retirement account but could be used to grow retirement savings. A great way to begin the process of determining which options you want to research further is to ask yourself what your goals are and the level of market risk you are comfortable with.LET'S CONNECT!FacebookLinkedInWebsiteENJOY THE SHOW?Don't miss an episode, subscribe via Apple Podcasts, Stitcher, Spotify, or Google PlayHave a question you want answered on a future episode? Submit it hereCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!