Retirement Starts Today

Do you consider being rich and being wealthy the same thing? In the book by Morgan Housel, The Psychology of Money, the author argues that these words mean two different things. In this episode of Retirement Starts Today, we’ll explore the difference between rich and wealthy as well as the connotation of the word money.  Outline of This Episode [1:42] A review of the psychology of money [4:30] The difference between being rich and wealthy [6:13] How to declutter the filing cabinet Thank you for 1 million downloads I want to thank you all for helping me hit an exciting podcasting milestone. In May of this year (2021), we hit 1 million lifetime downloads. Wow! When I started this podcast several years ago I was thrilled to reach 100 listeners a month, so this kind of reach boggles my mind. Thank you for joining me on this journey. To celebrate this milestone, I have an extra heaping helping of retirement headlines today. Both articles hail from the Wall Street Journal. The first article, written by Jason Zwieg, is a review of the book, The Psychology of Money, by Morgan Housel and it explores the different mentalities of the rich and the wealthy. The second article will reveal the best way to declutter your filing cabinet.  The Psychology of Money Have you ever thought about what money really is? Money is more than a way to show the value of things. Money is also a carrier of emotion, ego, hopes, fears, dreams, heartbreak, confidence, envy, surprise, and regret. There is so much of ourselves that we wrap up in the concept of money.  This is one of the central arguments in Morgan Housel’s new book, The Psychology of Money. The author juxtaposes two stories of two different men with two very different outlooks on money, and in doing so, he reveals that great fortunes can be built from old-fashioned values like delayed gratification.  Have you ever thought of money from a values perspective? What is the difference between being rich and being wealthy? Housel explores the differences between those who are rich and those who are wealthy in his book. He describes being rich as having a high current income and being wealthy is having the freedom to choose not to spend money. He explains that many rich people aren’t wealthy because they spend much of their high income to show others how rich they are.  How the difference between rich and wealthy can figure into retirement “The ability to do what you want, when you want, with whom you want, for as long as you want pays the highest dividend that exists in finance.” This is what many people are looking for in retirement. Most people think of retirement as a time when you stop working, however, retirement could mean, “the ability to do what you want, when you want, with whom you want, for as long as you want.”  What are you looking for in retirement? Are you ready to give up working completely or do you simply want more freedom and flexibility? Resources & People Mentioned BOOK - The Psychology of Money by Morgan Housel Wall Street Journal article - The Difference Between Being Rich and Being Wealthy Wall Street Journal article - Declutter the Filing Cabinet H&R Block - My Block Intuit’s Turbo Tax Jackson Hewitt Fireproof Document Bag External Hard Drive Adobe Scanning App Microsoft Lens Connect with Benjamin Brandt Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ Follow Ben on Twitter: https://twitter.com/retiremeasap Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter Subscribe to Retirement Starts Today on Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify

Are you one of the many that are being held back from early retirement by the exorbitant cost of health insurance? If so, you won't want to miss this episode. This week’s retirement headline comes from Carolyn McClanahan at AdvisorPerspectives.com and it outlines the enhanced health insurance subsidies that stem from the American Rescue Plan (ARP).  You’ll want to stick around for the listener questions segment if you are a fan of retirement podcasts. I have a treat for you all as I crowdsource the answer to John’s question about asset location. Listen in to hear 4 different answers from voices that you may recognize. Outline of This Episode [2:12] Could the American Rescue Plan be the answer to your health care before Medicare question? [5:05] What do you need to do to act? [8:49] An asset location question from John [10:01] Peter Lazaroff’s answer [12:02] Roger Whitney’s answer [15:45] Taylor Schulte answer [18:44] Chad Smith’s answer Could the ARP be the answer to your health care before Medicare question? The number one issue that holds back potential retirees from retiring early is how to find affordable health care before Medicare. If this sounds like you, then the American Rescue Plan may have the solution that you have been waiting for. Carolyn McClanahan's article is geared toward financial advisors, but we’ll take a look at it and see if the ARP could help you solve this common problem.  How can the ARP help lower the cost of health insurance? With the ARP, you may now be eligible for enhanced health insurance subsidies. The Affordable Care Act (ACA) subsidies have been limited to those with a modified adjusted gross income (MAGI) of less than 400% of the poverty level. However, the ARP has lifted these levels with a credit that is based on the cost of the second-cheapest silver plan available in any person’s given area. Unlike the previous credit under the ACA, it isn’t suddenly wiped out when someone’s income jumps over the income limit. Instead, it is phased out gradually. What do you need to do to qualify? To qualify, you must purchase your health insurance via www.healthcare.gov. The open enrollment period lasts through August 15, and the tax credits apply only for the months a person is using a plan from the ACA. Therefore, the sooner you apply, the more savings you will receive. Additionally, anyone who has received even one week of unemployment benefits in 2021 and is without access to affordable insurance through a family member will qualify for a silver plan at no premium cost. They also will qualify for cost-sharing subsidies to help lower their deductible. You can utilize the calculators at www.healthcare.gov or the Kaiser Family Foundation to determine your tax credit amount. States that have opted out of the healthcare marketplace may operate differently, so you’ll want to work with a local health insurance agent to help you navigate the process.  The ARP also offers COBRA subsidies If you lose employer-based coverage due to job loss or reduction in hours, the ARP provides COBRA premium subsidies from April 1 to September 30, 2021. After that, you can continue coverage at full cost. It is important for you to weigh whether you should accept this benefit or choose an exchange-based plan. Will take advantage of the benefits offered in the ARP to retire early? Resources & People Mentioned Article from AdvisorPerspectives.com www.healthcare.gov Kaiser Family Foundation IRS Coronavirus Tax Relief Retirement Podcast Network BOOK - Making Money Simple by Peter Lazaroff PODCAST - The Retirement Answer Man with Roger Whitney PODCAST - Stay Wealthy with Taylor Schulte PODCAST - Financial Symmetry with Chad Smith Connect with Benjamin Brandt Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ Follow Ben on Twitter: https://twitter.com/retiremeasap Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter Subscribe to Retirement Starts Today on Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify

I’m sure you’ve all heard about the 4% rule for retirement planning. This rule is great for speculating your likelihood of success, but it isn’t always the best rule to follow in practice.  Druce Vertes at AdvisorPerspecives.com offers a different approach to implementing the original 4% Rule. On this episode of Retirement Starts Today, we’ll dive into his technical article which explores the idea of making the normally rigid 4% rule more flexible to maximize spending for different levels of risk aversion. I’m always looking for innovative ways to help you turn your retirement portfolio into income and that’s exactly what we’re exploring this week. Tune in to hear how to tweak the 4% rule and maximize your spending in retirement.  Outline of This Episode [2:52] Infinite risk aversion [9:04] Constant relative risk aversion [14:06] Thoughts on 401K rollovers What exactly is the 4% rule? The original 4% rule was theorized by Bill Bengen in the 1990s. This rule is handy for napkin math but doesn’t allow much flexibility and it may be overly cautious. The 4% rule states that you can invest an equal amount in stocks and bonds and withdraw 4% of your starting portfolio during each year of retirement. As long as you adjust for inflation each year, you would never exhaust your money over the course of a 30-year retirement. Have you used the 4% rule to help you calculate the likelihood of financial success of your retirement? How can one make the 4% rule more flexible? Our retirement headline this week is titled Beyond the 4% Rule: Flexible Withdrawal Strategies Using Certainty-Equivalent Spending. It examines what would happen if we explored options beyond Bengen’s 4% rule. It asks, what flexible rules would maximize spending for different levels of risk aversion? The author used the programming language Python to maximize certainty-equivalent spending. This led him to three generalized rules based on one’s risk tolerance.  3 rules for 3 separate risk tolerance categories For those that are completely risk-averse, Bengen's 4% rule is the safest bet. The fixed constant withdrawal level never experiences a shortfall or reduction in withdrawals.  The next category is for those who don't mind plenty of risk in their portfolio. This is why this rule is not recommended for most people. It finds the withdrawal amount that historically maximized spending irrespective of market volatility. This risk-neutral category is for those that can tolerate reductions in spending or shortfalls in some years as long as they are offset by gains in other years. For those that fall somewhere in between the two ends of the risk tolerance spectrum, different rules apply which trade off higher mean withdrawals against the risk of lower withdrawals. Using some of these rules, a retiree could achieve more than the 4% expected withdrawal rate. All of these models are simplifications, but they are useful and allow you to visualize the choices between different rules that have varying levels of risk tolerance. Visualize your retirement spending The author strived to create a simple model to help people understand strategies that may improve on a fixed withdrawal at varying levels of risk aversion. You can test out the different rules by using this online tool which allows you to try out and visualize each one. It’s always refreshing to learn about new ways to live off your retirement savings. Vertes’ idea splits the difference between the 4% rule and a dynamic distribution plan. This hybrid plan would allow for higher spending in good markets and a scientific way to gradually reduce portfolio withdrawals when the market dips.  Listen in to hear how each of these rules could play out with concrete examples using actual numbers. You’ll also hear Joe’s question regarding multiple 401Ks.  Resources & People Mentioned Advisor Perspectives article Python programming language Online tool to help visualize the different rules Connect with Benjamin Brandt Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ Follow Ben on Twitter: https://twitter.com/retiremeasap Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter Subscribe to Retirement Starts Today on Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify

As you prepare yourself for retirement, you probably have a vision of your retired self traveling, spending more time on your hobbies, or with loved ones. Retirement will give you time for all that and more. I read an article recently that describes the 6 phases of retirement. I had never defined it that way before, but this was an interesting way to delineate a natural progression of this time period. Press play to learn what these 6 phases are.  Outline of This Episode [1:42] There are 6 identifiable phases in retirement [4:25] If you retire mid-year, is it better to reduce pretax and post-tax deductions? [7:06] What should we do if our RMD rules violate our safe spending rules? [11:04] What about using the 4% rule? The natural progression of retirement Have you ever thought about the natural phases of retirement? This week’s retirement headline is written by Andy Millard from AndyTheAdvisor.com. In the article, Andy mentions that much like the 5 stages of grief, retirement can also be broken into 6 identifiable phases. These stages don’t take the same amount of time and can vary from person to person. Honeymoon - This is likely the most active phase of retirement and probably the one you have been looking forward to the most. People are likely to use their newfound freedom to pursue hobbies, take trips and classes, and do home improvement projects. This stage will get you out and about in the world. Rest and relaxation - After enjoying the hustle and bustle of the honeymoon phase you may be ready to settle down a bit. This is the time to sit back and relax into the new slower-paced lifestyle. This stage may also bring on some introspection. You may reflect on a life well lived and think about what brought you to this point. Disenchantment - During this phase, people begin to realize that the changes they’ve made to their routines are permanent. You may begin wondering about your purpose in this part of your life. This can be an emotional time period for many and consist of both physical and mental adjustments to a new way of life, whether it be a change in spending habits, a move to a new community, or changes to health.  Reorientation - Hopefully the disenchantment won’t last long and you can quickly move onto the reorientation phase. This is a time when people begin to adjust to retirement and realize that there’s still more living ahead of them. Some examples of things that happen during this period are new marriages, learning new artistic disciplines, or finding new interests and hobbies.  Retirement routine - This stage is inevitable since humans find comfort in and crave routine. Whether it be club meetings, volunteering at your favorite charity, or a weekly coffee chat with friends, your new reality becomes your new normal. Termination - Unfortunately, at some point, retirement will end for everyone. This is--hopefully--a peaceful phase where people reflect on their life’s journey, their accomplishments, and whatever the next season holds. Do you recognize these phases? Have you noticed them from your parents or older friends’ retirements? What are you most looking forward to in retirement? Check out the newsletter for more links and retirement learning opportunities Be sure to listen until the end of this episode to hear what to do if RMD rules violate your safe spending guidelines. I’ll also include links to the Guyton-Klinger rules in the Every Day Is Saturday newsletter. Head on over to www.retirementstartstodayradio.com/newsletter to sign up if you aren’t on the mailing list. The newsletter focuses on sending out relevant retirement information to educate you on your next phase of life. Resources & People Mentioned AndyTheAdvisor.com - The 6 Phases of Retirement The Financial Ghost - Guyton Klinger Rules Decision Rules and Maximum Withdrawal rates the original Guyton-Klinger article RMD tables Connect with Benjamin Brandt Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ Follow Ben on Twitter: https://twitter.com/retiremeasap Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter Subscribe to Retirement Starts Today on Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify

Have you ever considered going back to school? Early retirement can be a fantastic time to explore new learning opportunities.  In this episode of Retirement Starts Today, we’ll take a look at a Market Watch article that describes the burgeoning culture of adult learning for those at or near retirement age. We’ll continue by exploring many higher education programs across the United States that are aimed at people aged 50 and above. Make sure to stick around for the listener questions segment where I answer a question about using home equity as long-term care insurance. You’ll hear my opinion on the matter and learn how much home equity you may need to make this strategy work.  Outline of This Episode [1:36] It’s time to rebalance [4:22] Have you considered taking an adult gap year? [8:32] Real-world examples of retirement age students [12:51] Using your home’s equity as long term care insurance [17:19] How much home equity would you need? It’s time to rebalance We all know that the market has had an incredible run this past year. Many people’s portfolios are up 30%. When you’re seeing these kinds of returns it can be especially difficult to take those earnings and put them into the calmer side of your portfolio, but as you approach retirement it’s a good time to edge closer to a 60-40 split. If you are within a year or two of retirement, you should know where your first few years of retirement income are coming from. That means that this is the time to be prudent and squirrel away some of those profits in any boring type of account so that you can fund the first few years of your retirement without worrying about the ups and downs of the markets.  Now is the time to take a gap year If you have ever had the inkling of going back to school early retirement is a great time to start. Many people are turning to higher education as a way to find fulfillment after long and successful careers.  The rise of Covid and the ease of learning through technology are augmenting this trend. The pandemic has caused stagnant enrollment rates in many colleges around the country. This has led those institutions to find new ways to make money. Many universities are turning to alternative programs and continuing education as a way to reach a broader audience.  What kinds of learning opportunities are out there? There are learning opportunities offered through many different types of programs at different universities, private subscription programs, and even free online programs.  These are a few of the programs are offered by different universities: UT Tower Fellows Program Encore!Connecticut Duke Lifelong University Stanford University’s Distinguished Career Institute The University of Virginia You don’t have to turn to a university to continue your education. There are many types of subscription learning programs available as well.  Osher Lifelong Learning Institutes One Day University GetSetUp Oasis Everywhere If you don’t want to invest any money into continuing your education you can take advantage of free or low-cost programs through these websites: Coursera  EdX  The Great Courses LinkedIn Learning  MasterClass  Skillshare TED Talks   Udemy Learning is easier than ever before There are so many amazing educational opportunities to enjoy. The pandemic has caused a giant leap forward in virtual learning. With modern technology, you can learn anything at any time from any place. Since people are living longer, retirement can last for 30 years or more. This leaves plenty of time for an encore. So, if you ever had the notion to go back to school to either pursue your options for a second act or simply to explore new educational opportunities, the world is your oyster. Have you ever considered going back to school? What would you want to study? Resources & People Mentioned Market Watch Gap Year article Daily Table Rusalia Resource Foundation UT Tower Fellows Program  Encore!Connecticut Duke Lifelong University Osher Lifelong Learning Institutes One Day University Coursera  EdX  The Great Courses LinkedIn Learning  MasterClass  Skillshare TED Talks  Udemy Oasis Everywhere GetSetUp OperaNuts Senior Planet Stanford University’s Distinguished Career Institute Connect with Benjamin Brandt Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ Follow Ben on Twitter: https://twitter.com/retiremeasap Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter Subscribe to Retirement Starts Today on Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify

Since 2020 was the year of working from home, you may be wondering how you can deduct your home office expenses from your taxes now that tax time is upon us. For this reason, we explore an article written by Jeffrey Levine at Kitces.com. Learn the home office deduction rules and discover if they will apply to your situation. Outline of This Episode [2:12] The specifics of the home office deduction [9:19] How to calculate the home office deduction [11:55] Should he open an additional IRA? Who is eligible for the home office deduction? Many small business owners can claim a home office deduction as a tax break. However, not every person working from home can claim this deduction. For instance, the deduction is not accessible for employees who work from their own home offices. People owning partnership interests, on the other hand, are potentially eligible for this deduction. There are specific rules that need to be followed in order to determine whether your home office qualifies. What are the rules to claim the home office deduction? In order to claim the home office deduction, there are requirements that must be met. The home office must pass the exclusive use test. This test dictates that in order to claim a home office deduction, the portion of the home that is deemed the home office must be used entirely for business purposes. Something that limits a person’s ability to claim a home office deduction, but not necessarily eliminates it, is the ability to claim a separately identifiable space within their home that is used exclusively for business purposes. Another stipulation of a home office deduction is the regular use requirement. Occasional office use is not enough, even if the business is the only use for that particular space. It must be used regularly in order to qualify for the home office deduction.  Another requirement is that the home office must be considered the taxpayer’s principal place of business for a particular business activity. This means that this is the space where the majority of business is done. Deciding on this can be tricky if you have a home office as well as one in an office building. When deciding on a principal place of business, individuals should consider both the amount of time they spend at their various business locations, as well as the relative importance of the tasks performed at each location.  Because of the pandemic, many have had to shift work that they typically did in an office building to spaces in their homes. For the year 2020, people in this situation may be able to claim a home office deduction. How to calculate the home office deduction There are two ways that you can calculate the home office deduction. The regular method will calculate the actual expenses of using your home office space. The simplified method will calculate the square footage of your home office and multiply it by $5. The maximum deduction using the simplified method is $1500.  If you are considering using the home office deduction it is important to work with your tax professional to ensure that you are within the detailed guidelines. Make sure to click on through to the article to learn all the details about claiming the home office deduction. Resources & People Mentioned Kitces article on home office deduction Connect with Benjamin Brandt Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ Follow Ben on Twitter: https://twitter.com/retiremeasap Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter Subscribe to Retirement Starts Today on Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify

If 2020 has taught us anything it is that the future is not always certain. This has brought about feelings of insecurity and anxiety in some people. That’s why this week, I share an article from Harvard Business Review which describes how people can use micro-planning and biomimicry to combat feelings of uncertainty brought on by this post-pandemic world.  After the retirement headlines, I’ll answer two listener questions. John asks about maxing out his HSA after 50 and Val is trying to decide between a pension and a lump sum payment. Don’t miss out on the latest episode of Retirement Starts Today; press play now! Outline of This Episode [1:22] How to plan your life when the future is foggy [3:19] The six steps to learn from biomimicry [7:35] How much can a person contribute to an HSA when they are over 50? [9:28] Should Val take a lump sum or an annuity? Micro-planning can help you take command of your life again Did Covid-19 toss your 5-year plan out the window? Many of us have had our future plans shaken up due to the effects of the pandemic. The lack of control that the long-term insecurity creates can bring about feelings of unease.  One way to take back control of your life is by harnessing the power of adaptability through micro-planning. Micro-planning is a way to take a larger plan and break it down into yearly, quarterly, monthly, weekly, and daily check-in practices. Biomimicry is the inspiration behind micro-planning In tumultuous times, micro-planning is more manageable than big-picture planning, and it offers the sense of power and stability that we need. The idea behind micro-planning is based on biomimicry, a practice that learns from and mimics the strategies found in nature to solve human challenges. Biomimicry uses nature as a model to imitate or use as inspiration for designs or processes with the goal of solving human problems.  Six steps you can follow to feel more in control of your future Prolonged stress can cause us to function at less than optimal levels, so it is important to mitigate stress when we can. These six elements of micro-planning can help us manage this stress, function at higher levels, and give us a sense that we are taking back control of our lives.  Set a purpose - Identify the common thread that connects the different roles you have had. What do they have in common? Think about the most fulfilling career experiences you’ve had to date and notice their commonalities.  Plan your year - Make a plan for the year that aligns with your purpose and identifies between one to three focus areas of desired growth. Keep the list of focus areas short in order to promote a better chance of success. Plan by quarters - At the beginning of each quarter, reassess your successes and failures and set goals for the next quarter. Be careful to choose no more than five to keep the list manageable. You may want to shift your plan at this stage based on your reflections on the previous quarter.  Break the quarters into months - Each month break your goals for the quarter down into specific projects, and then break the projects down into even more specific and manageable phases. Create weekly lists - At the start of the week, create a weekly to-do list, making sure to plan time for movement, sleep, time outside, hydration, and healthy food. Doing this makes sure that you are physically and mentally caring for yourself in support of your intellectual goals.  Make use of your days - Use a journal to track your energy on a daily basis. Doing this gives you powerful information as to how to optimize your workflow and helps make annual planning more mindful. Make sure to note daily what you are grateful for, as well. Journaling in this way gives you an immense sense of control, which has been proven to shrink the amount of time it takes to get tasks done. What have you been doing to help you feel more in control during the pandemic? Try implementing these steps to take command of your future. Make sure to press play to hear the details of how you can use micro-planning to improve your life. Resources & People Mentioned Harvard Business Review article  Kiplinger’s article on HSAs Connect with Benjamin Brandt Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ Follow Ben on Twitter: https://twitter.com/retiremeasap Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter Subscribe to Retirement Starts Today on Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify

Are you signed up for the My Social Security account from the Social Security Administration? In this episode, we’ll review a Kitces.com article written by Jeffrey Levine about this important resource. We’ll review the history of My Social Security, how to sign up for it, how its benefit calculations account for inflation, and how Americans can interpret its information in order to understand their social security benefits. Don’t miss this excellent opportunity to review a very important topic. Press play to listen. Outline of This Episode [2:28] How to access your My Social Security account [5:22] What can you do with your My Social Security account? [10:04] A question about my podcast host [11:28] Rusty needs to create about $50,000 of income each year - how should he do it? Background information on My Social Security From 1990 to 2011, the Social Security Administration mailed paper copies of Social Security statements to most American workers. These statements summarized their personalized retirement and disability benefits. However, budget cuts in 2011 paused these mailings, and now workers under age 60 no longer receive mailed statements at all. The only workers to receive Social Security statements by mail are those who were both 60 or older in 2017 and had not yet registered for an online SSA account.  How to access your My Social Security account The primary way Americans can access their annual Social Security statements is online via their My Social Security account. To set up a My Social Security account users will be required to provide some basic information on an online form. This information includes first and last name as shown on their Social Security card, Social Security number, date of birth, home address, and email address.  After filling out the form, individuals will be required to complete an identity verification process. They can either verify their identity using their smartphone to photo-capture their state-issued ID card, or they can type in their information into the online form. The second method of verification uses financial information such as credit card information, Social Security benefit amount information, a Form W-2 Wage and Tax Statement, or a Schedule SE from their most recent Form 1040. What can you do with your My Social Security account? Once you have set up your My Social Security account and can see your Social Security statements you should do a few things.  Verify your reported work history. Review the current estimates of your anticipated Social Security benefits. Explore how the benefits align with your retirement income needs. In the Social Security statements, there are three pages of important information, but most people are concerned with the information on pages two and three. Page two has a summary of your estimated retirement, disability, family survivors, and Medicare benefits. Page three of the statement lists earnings on file for each year from the time an individual began working. Listen in to hear why you should carefully check the income information from the past years.  Get your My Social Security account set up to begin your retirement planning Have you set up your My Social Security account yet? This is a great first step to get you on your way to creating your retirement plan. Make sure to listen to the listener questions segment to hear ways to create income in retirement.  Resources & People Mentioned Kitces article My Social Security Connect with Benjamin Brandt Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ Follow Ben on Twitter: https://twitter.com/retiremeasap Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter Subscribe to Retirement Starts Today on Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify

Despite the economic downturn, 2020 turned out to be a fantastic year for charitable giving. In this episode, we’ll look at how people chose to give and you’ll learn about the efficiency of giving through donor-advised funds (DAFs).  In the listener questions segment, you’ll learn how to survive a bear market in retirement. We’ll investigate the length of the average bear market and see how you can prepare for the worst in your retirement years.  Outline of This Episode [1:42] 2020 was a banner year for giving [4:48] Planning ahead can help alleviate a hefty tax bill [10:49] What is the average length of recovery from a bear market? [17:04] Look into Guyten’s Guardrails Shwab and Fidelity both showed an increase in giving You would think that with the economic downturn of the last year that people would tighten their bootstraps and cease giving to charities, but it turned out that the opposite was true. The two largest brokerage firms, Schwab and Fidelity, recorded increases in charitable donations.  Donations were made in response to the Covid pandemic and the social justice protests that marked the year. The biggest recipients of these charitable gifts were organizations that provide food and other necessities Donor-advised funds are an important vehicle for charitable giving Fidelity Charitable and Schwab Charitable both use donor-advised funds as a vehicle for charitable giving. Donor-advised funds (DAFs) have become popular since they are simple and make for an easy way to give strategically. These charitable investment accounts allow a donor to make a charitable contribution, receive a tax deduction, and then distribute the money over time. Have you thought of changing the way that you make charitable contributions? What are the benefits of using DAFs? DAFs have become more popular in recent years due to changes in tax laws. The new standard deduction for charitable giving increased to $24,800 for a married couple. By creating a DAF, donors can contribute a lump sum every few years and then administer the funds to the charities they choose over time. Many advisors recommend donor-advised funds as a receptacle for their clients to strategically deduct charitable contributions. Listen in to hear a real-world example of how a DAF can be used.  Planning ahead can create a tax deduction We must all pay our taxes, but we never want to overpay -- no one wants to leave the taxman a tip. If you are charitably minded, a donor-advised fund is an excellent way to implement a multi-year tax strategy and take advantage of the standard deduction. Think about how lump sum giving every few years could change your tax situation. It pays to plan your taxes ahead in retirement. Resources & People Mentioned Investment News article on charitable giving Guyton’s Rules for Withdrawal Rates Guyton’s Guardrails are discussed in - Episode 181, Episode 153, Episode 149, Episode 93 Connect with Benjamin Brandt Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ Follow Ben on Twitter: https://twitter.com/retiremeasap Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter Subscribe to Retirement Starts Today on Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify

If you’ve been working from home over the past year you may wonder why you feel even more exhausted than normal. This could be due to Zoom Fatigue. In this episode, we’ll explore an article from CNBC that references a Stanford study about this phenomenon. In the listener questions segment, I’ll answer questions about RMDs and Roth conversions. Let’s get to the bottom of your exhaustion--press play now.  Outline of This Episode [1:22] Zoom fatigue affects people on a psychological level [3:26] Solutions for Zoom fatigue [6:17] Future tax rates and RMDs [10:44] How to pay for Roth conversions? Why are we so exhausted after video conferencing? Over the past year, many of us have been using Zoom and other video conferencing applications to replace in-person meetings. The constant video conferencing has led to increased fatigue at the end of the day and a researcher with Stanford University wondered why. Jeremy Bailenson researched this issue and recently published a paper about how video conferencing affects people on a psychological level.  4 reasons for Zoom fatigue Jeremy concluded that there are four different contributors to Zoom Fatigue: The extended level of eye contact is unnatural. The screen causes us to look at each other for an extended period of time. In a face-to-face meeting, we wouldn’t be behaving in such a way. Non-verbal signals during video conferences require more effort than in-person meetings. During in-person meetings, our nonverbal cues happen quite naturally and without any effort. However, we have to exaggerate our non-verbal communication in a video chat which requires more thought and increases our cognitive load Watching yourself in the little box on the screen for prolonged periods is unnatural and causes self-critique.  Being forced to sit still in one place for long is exhausting. Since we are on camera we have little room to move around naturally.  Ways to battle Zoom fatigue To alleviate these issues, Bailenson has the following tips: Hide self-view.  Shrink the participant’s video window to make other people a bit smaller.  Spend some time adjusting your setup ahead of an important meeting.  Turn off your camera and take a five-minute audio-only break during a long meeting. Set cultural norms in your workplace that it’s OK to turn off the camera sometimes. Zoom fatigue is a new version of burnout that is important to mitigate. You want to retire when you are ready rather than because you are feeling burnt out due to video conferencing. Try using these tips to help you combat the exhaustion you feel after video conferencing.  Resources & People Mentioned CNBC article - Zoom Fatigue and How to Fix It A 15 question scale for evaluating Zoom fatigue You can participate in the study on Zoom Fatigue Connect with Benjamin Brandt Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ Follow Ben on Twitter: https://twitter.com/retiremeasap Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter Subscribe to Retirement Starts Today on Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify