Ready For Retirement

Roth conversions are almost a buzzword today, with many people jumping into them like they’re a guaranteed fix for tax worries—much like rushing into surgery hoping it will solve all your problems. But just like surgery, Roth conversions require careful consideration, and they’re not always the right solution. Before deciding to convert, it’s essential to understand why not to do it.Here are some key reasons to skip—or at least pause—on Roth conversions:- Lower Future Tax Bracket: If you anticipate being in a lower tax bracket during retirement, it might not make sense to pay taxes upfront. For example, retiring and moving to a no-income-tax state like Texas can naturally reduce your tax obligations.- No Significant RMD Issue: If your required minimum distributions (RMDs) won’t be large enough to push you into a higher tax bracket, the urgency to convert may not exist.- Charitable Giving Plans: Those planning to donate through qualified charitable distributions (QCDs) after 70½ can leave funds in tax-deferred accounts, making those donations tax-free without needing to convert.- Social Security Tax Torpedo: Conversions can increase your provisional income, causing more of your Social Security benefits to be taxed, effectively raising your tax rate.- Medicare Premium Surcharges (IRMAA): Conversions can push your income above IRMAA thresholds, leading to higher Medicare premiums.- Spending More or Retiring Earlier: Sometimes, simply increasing your spending or retiring sooner can reduce the need for conversions by naturally lowering tax-deferred account balances.While Roth conversions can be a valuable tool, they’re not a one-size-fits-all solution. Thoughtful planning and understanding your unique financial situation are key to making the right choice.Submit your request to join James:On the Ready For Retirement podcast: Apply HereOn a Retirement Makeover episode: Apply Here Timestamps:0:00 - Roth conversions are like surgery3:07 - Questions that prompted this episode5:28 - Why not to do a Roth conversion8:38 - RMDs prompt Roth conversions10:50 - Spend more money, and retire earlier13:27 - Rethinking what Roth conversions mean15:12 - A financial example18:06 - IRMA considerations22:31 - Knowing enough to be dangerous24:04 - More reasons to be cautious Create Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

Meet Sarah—a retiree with a multi-million-dollar portfolio, no mortgage, and all her income needs covered by Social Security. Yet, she hesitates to furnish her newly expanded home, fearing it would “waste” money. In this episode, James unpacks Sarah’s story to explore why so many of us struggle to spend, even when we're financially secure.James explores concepts like:- The Purpose of Money: Money is a tool, not an end goal—it’s meant to be exchanged for experiences and joy.- Diminishing Marginal Utility of Wealth: More money doesn’t always bring more happiness, especially as wealth grows.- Time vs. Money: Time becomes more valuable as we age, making it critical to use wealth meaningfully.- Mindset Shifts: Frugality that builds wealth can hold you back from spending in alignment with your values.- Future Self Perspective: Align today’s decisions with the life you want in retirement to avoid future regrets.This episode challenges traditional views on retirement spending, encouraging listeners to shift their mindset, embrace their financial freedom, and focus on living a fulfilling life.Questions answered:Why do we sometimes struggle to spend our money, even when we have more than enough to meet our needs?How can you reframe your mindset to align your spending with the life you truly want to live?Submit your request to join James:On the Ready For Retirement podcast: Apply HereOn a Retirement Makeover episode: Apply Here Timestamps:0:00 - Wasting $ on furniture?1:59 - What money is3:26 - A different view of "waste"5:30 - Diminishing marginal utility8:49 - Consider what serves you11:45 - An example from Charlie Munger14:58 - Audit your decisions17:04 - Consider your future self18:55 - ConclusionCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

Are you delaying retirement, working for "just one more year" to feel ready? In this episode, Ari and James dive into goalpost planning—the tendency to postpone retirement over financial or emotional uncertainties. Learn how to prioritize life goals over arbitrary benchmarks, like saving $1M or following a generic 60/40 portfolio strategy.🎙️ Highlights from the conversation:The emotional challenges of leaving work and finding purpose in retirementWhy cash flow matters more than hitting a specific savings numberReal-life example: a mid-50s teacher couple weighing part-time work, pensions, and travelThe truth about 60/40 portfolios and inflation-proof investingSubmit your request to join James:On the Ready For Retirement podcast: Apply HereOn a Retirement Makeover episode: Apply Here Timestamps:0:00 - Goalpost planning3:09 - Procrastinating finding meaning4:42 - Tradeoffs6:43 - An example9:20 - Initial analysis 12:48 - Roleplaying15:09 - Use your PTO 18:01 - Allocation20:39 - No cookie-cutter formulaCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

In today’s episode of Ready for Retirement episode James covers when to adjust your portfolio as retirement nears—a crucial step for balancing growth and security. If adjustments happen too late, market downturns could delay your plans; if too early, you might miss out on potential growth.The focus is on reallocating stocks to more stable investments like bonds as you approach the time you’ll need to start drawing from your portfolio. Historical data shows that while the stock market grows over the long term, short-term volatility can be risky close to retirement. Timing this transition, often starting about 10 years before needing funds, provides a smoother adjustment and reduces risk.Besides financial factors, psychological comfort with market swings also matters. Striking the right balance helps ensure your retirement funds last while maintaining your peace of mind.Questions answered:1. When should I start adjusting my investment portfolio as I approach retirement?2. How can I balance growth potential with stability in my retirement portfolio to minimize risks and ensure financial security?Submit your request to join James:On the Ready For Retirement podcast: Apply HereOn a Retirement Makeover episode: Apply Here Timestamps:0:00 - Protect against stock market decline2:22 - Investment fundamentals and market trends6:12 - When will you need the funds?8:06 - Risk capacity10:55 - Consider dividends and interest from bonds14:20 - Use bonds for a specific purpose17:07 - Risk tolerance20:59 - 5-10 years before retirement24:36 - Goal: minimize risk and regretCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

Meet Ari Taublieb 👋 If you didn’t already know, Ari and I work together at Root Financial, and we thought it was finally time to launch a podcast series together.In our very first episode, we dive into a topic that many people shy away from: talking to your parents about money. Whether it’s discussing their estate plans, long-term care, or the tough conversations around wealth, these talks can feel awkward—but they’re absolutely essential.In this episode, we break down:▪️ Our personal stories and insights on how to approach these conversations▪️ Tips for handling these talks with grace and understanding▪️ Strategies to ensure peace of mind for everyone involvedIf you’ve ever felt uncertain about talking money or navigating estate planning with your parents, this episode is for you.Subscribe to Ari’s YouTube channel Submit your request to join James:On the Ready For Retirement podcast: Apply HereOn a Retirement Makeover episode: Apply Here Timestamps:0:00 - Ari and James2:03 - A listener's question5:54 - Approaching parents9:26 - Focus on the parent's needs/desires11:13 - Start with long-term care14:33 - Initiating conversations18:03 - Have questions? Ask!Create Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

Roth IRAs offer great tax-free income benefits, but to make the most of them in retirement, here are seven things you need to know:Contribution Limits: In 2024, you can contribute up to $7,000 annually ($8,000 if 50+), across both Roth and traditional IRAs.Access to Contributions: You can withdraw your contributions at any time, tax-free and penalty-free. Only earnings are subject to penalties if withdrawn early.The Five-Year Rule: To withdraw earnings tax-free, the Roth IRA must be held for at least five years.Income Limits & Backdoor Roths: High earners may not be able to contribute directly, but a backdoor Roth strategy can help. Consult a financial advisor for guidance.No RMDs: Roth IRAs don’t require minimum distributions, allowing your funds to grow as long as you want.No Impact on Social Security: Roth IRA withdrawals won’t count toward your provisional income, potentially lowering your Social Security tax.No Medicare Surcharge: Roth withdrawals don’t affect your adjusted gross income, helping you avoid higher Medicare premiums.By understanding the points above, you can use a Roth IRA to manage taxes and increase flexibility in your retirement.Submit your request to join James:On the Ready For Retirement podcast: Apply HereOn a Retirement Makeover episode: Apply Here Timestamps:0:00 - What is a Roth IRA?1:38 - Free withdrawals3:15 - The 5-year rule4:49 - Income thresholds6:01 - Backdoor Roth contribution8:18 - No RMDs9:26 - Not provisional income12:10 - Not part of IRMA calculations13:06 - Income requirement nuances 14:49 - Wrap-upCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

Have you thought about what moving to a new state might mean for your retirement budget and lifestyle? In this Ready for Retirement episode, the focus is on preparing for an out-of-state retirement. James outlines three essential considerations for retirees planning a move:1. Housing Costs and Expenses: From property values and local property taxes to potential capital gains from selling a current home.2. Overall Cost of Living: Everything from groceries to utilities varies widely between regions. It’s also wise to consider personal lifestyle goals—like travel or access to nature—as these can impact ongoing expenses3. A Solid Tax Strategy: Particularly if moving to a state with different tax laws. Retirees can benefit by adjusting their tax strategy based on the state they’ll be in, potentially saving thousands over time. These tips offer invaluable guidance for anyone considering a fresh start in a new state after retirement.Questions answered:How can moving to a different state impact my retirement expenses?What tax strategies should I consider if I plan to retire out of state?Submit your request to join James:On the Ready For Retirement podcast: Apply HereOn a Retirement Makeover episode: Apply Here Timestamps:0:00 - An overview1:27 - Compare housing costs4:04 - Moving to higher property tax state6:32 - Moving to lower property tax state7:12 - Compare cost of living10:48 - Dial in your tax strategy13:44 - Consider state tax rates14:51 - SummaryCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

Many dream of retiring early, but you would be surprised to learn that many people who retire early regret doing so. James reveals five things that lead people to regret early retirement and provides practical tips to avoid these pitfalls.He explains why many individuals who retire before 65 struggle due to a lack of planning, overly conservative investment strategies, and failure to envision life beyond work. He highlights the importance of aligning financial plans with personal goals, maintaining a balanced portfolio to outpace inflation, and considering part-time work as a transitional phase. He also encourages listeners to “practice” retirement before fully committing and cautions against adhering to common retirement “rules” without understanding their context. By addressing these critical aspects, listeners can make more informed decisions and transition into retirement, at any age, with confidence.Questions answered:Why is it important to have a life plan in addition to a financial plan when retiring early?What lifestyle adjustments should early retirees be prepared to make to sustain their retirement long-term?Submit your request to join James:On the Ready For Retirement podcast: Apply HereOn a Retirement Makeover episode: Apply Here Timestamps:0:00 - Defining early retirement1:15 - Not knowing what you’re retiring to4:14 - Being too conservative7:51 - Not considering part-time work12:25 - Not practicing retirement14:05 - Relying on retirement “rules”17:26 - Being too dependent on 401(k)Create Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

James sits down with someone who’s financially set to retire—mortgage paid off, kids through college, and investments in place—but he’s still grappling with one big question: what’s next?Instead of focusing solely on financial strategies or retirement planning, James gives him some unexpected advice: start journaling. This led to a deeper conversation about finding purpose beyond optimizing your portfolio.What would your life look like without constraints? What actually matters most to you? And how can you ensure your future is filled with meaning, not just money?It’s not just about retiring from something but retiring to a life you love.Questions answered:How can I avoid feeling unfulfilled in retirement, even if I have all the money I need?What are some practices I can do now to flush out what I really want out of life?Submit your request to join James: On the Ready For Retirement podcast: Apply HereOn a Retirement Makeover episode: Apply Here Timestamps:0:00 - A pertinent conversation1:53 - Journaling prompts3:00 - What matters4:47 - Imagine no limitations6:43 - Best, second-best, worst scenarios10:00 - Addressing fears steps 1&213:22 - Addressing fears steps 3&416:43 - Take action18:50 - Wrap-upCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!

For many, Social Security makes up a large portion of their retirement income, so it’s important to know how to maximize your Social Security benefit. James explains how Social Security works, diving into some important foundational aspects. He then explains four key strategies for maximizing benefits:1. Work for 35 years to avoid zero-income years in the calculation.2. Delay benefits, if possible, until age 70, increasing payments by 8% annually after full retirement age.3. Leverage spousal benefits, allowing a lower-earning spouse to claim up to 50% of the higher-earning spouse's benefit.4. Plan for survivor benefits, where a surviving spouse can receive 100% of the deceased spouse’s benefits.By understanding how these factors work, retirees can make informed decisions to maximize their Social Security income, reducing pressure on their savings and ensuring a more stable retirement.Submit your request to join James: On the Ready For Retirement podcast: Apply HereOn a Retirement Makeover episode: Apply Here Questions answered:How is Social Security funded, and how does it affect my retirement income?How are Social Security benefits calculated based on my earnings?Timestamps:0:00 - How SS works4:16 - Drilling deeper6:27 - Full retirement age8:08 - Work 35 years10:08 - If possible, wait12:17 - Spousal benefits14:03 - Survivor benefits17:39 - SummaryCreate Your Custom Strategy ⬇️ Get Started Here.Join the new Root Collective HERE!