『Retire With Ryan』のカバーアート

Retire With Ryan

Retire With Ryan

著者: Ryan R Morrissey
無料で聴く

このコンテンツについて

If you’re 55 and older and thinking about retirement, then this is the only retirement podcast you need. From tax planning to managing your investment portfolio, we cover the issues you should be thinking about as you develop your financial plan for retirement. Your host, Ryan Morrissey, is a Fee-Only CERTIFIED FINANCIAL PLANNER TM who lives and breathes retirement planning. He’ll be bringing you stories and real life examples of how to set yourself up for a successful retirement.2020 Retirewithryan.com. All Rights Reserved 個人ファイナンス 経済学
エピソード
  • Risk and Reward of Withdrawing Social Security Benefits to Invest Them, #261
    2025/07/08
    This week, I’m addressing a listener's question: Should you collect Social Security at age 62 and invest the money, or wait until your full retirement age, or even age 70, for a bigger benefit? I break down the math and the risks, weighing the advantages of guaranteed annual increases and cost-of-living adjustments against the potential (and pitfalls) of stock market returns. I also explain key rules, such as the earnings limit for early filers, tax implications, and who might benefit from collecting early. Whether you’re eager to take Social Security as soon as you can or are considering holding out for a larger payment, listen in for the practical insights you need to make a smart decision for your financial future. You will want to hear this episode if you are interested in... [03:27] Earnings limits on collecting your Social Security benefits.[05:29] Where to invest to potentially achieve more than 6% return.[07:37] Consider delaying Social Security benefits, but weigh the risk of investing against guaranteed returns.[12:39] Collect Social Security early to invest if you don't need it for living expenses and want to leave a larger inheritance.[13:42] Wait to collect Social Security until full retirement age or 70, especially if dependent on it for income or if you're the higher-earning spouse, to maximize benefits. Social Security’s Built-In Return for Waiting First, it’s essential to understand how Social Security rewards patience for those born in 1960 or later; claiming at 62 results in a significant reduction, down to just 70% of your full retirement benefit. Each year you wait between 62 and your full retirement age (67 for most), your benefit grows by about 6% per year. From 67 to 70, that growth jumps to 8% per year. This increase is essentially a “risk-free” return, as it's guaranteed by the government, not subject to market swings. The Pitfalls of Early Claiming and Investing It’s not uncommon to hear the argument that you could claim benefits early, invest the money (usually in the stock market), and potentially earn more over time. But this approach is riskier than you might realize. Market Volatility: Historically, a diversified stock market fund (like a total market index fund) has surpassed 6% annual returns over long periods, but not always. Roughly 10% of five-year periods since 1926 have lost money. That means there’s a real chance you'll underperform Social Security’s consistent increase, or even lose principal.Taxes: Investment returns, especially dividends, are taxable, which further erodes your effective return. Social Security also may become partially taxable depending on your income, especially if you claim while still working.Earnings Limits: If you’re working between 62 and your full retirement age, you face earnings limits. For example, in 2023, you can only earn $23,400 before your benefit is reduced, making early claiming unattractive for those who don’t plan to retire immediately. The Power of Cost-of-Living Adjustments (COLAs) Over the last ten years, annual cost-of-living adjustments (COLAs) have averaged 2.6% per year. COLAs are applied to your current benefit, so the longer you wait and the higher your starting base, the more you benefit from these increases. Over the decades, this compounding effect can create a significant gap in monthly income between early and later claimers. That means, to truly keep up with waiting, you’d need not just to match the 6-8% annual increases but also beat COLAs, meaning your investments would need to return nearly 9% per year, consistently, and after taxes. Who Might Consider Claiming Early? While waiting typically yields the best results for most retirees, there are exceptions. Early claiming might make sense if: You have significant wealth and don’t need Social Security to live (your goal is to leave a bequest for heirs).You have health issues and a below-average life expectancy.You’re single and want to maximize your estate since Social Security benefits don’t pass to non-spouses. However, for the majority, especially married people or those relying on Social Security as a main income source, waiting yields more lifetime income and a more robust safety net for both spouses. Timing your Social Security claim isn’t about grabbing the first check you can; it's about weighing guaranteed growth against market risk, tax implications, earnings limits, and your own longevity and needs. Resources Mentioned Retirement Readiness ReviewSubscribe to the Retire with Ryan YouTube ChannelDownload my entire book for FREE State Street's Total Stock Market Index Fund Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan
    続きを読む 一部表示
    16 分
  • Five Reasons a Brokerage Account Might Be Better Than an Annuity for Your Investments, #260
    2025/07/01
    I’m exploring a common dilemma for anyone coming into a lump sum of money, whether from an inheritance, the sale of a business, or another windfall: Should you invest in a traditional brokerage account or opt for an annuity? On this week's episode, I discuss the key differences between annuities and brokerage accounts, highlighting the five major pitfalls of annuities that are often overlooked. You'll learn why transparency, flexibility, and tax efficiency make brokerage accounts a better fit for many investors, especially those seeking to beat inflation and maintain control of their funds. You will want to hear this episode if you are interested in... [06:12] Annuities have capped returns and may not keep up with inflation, making brokerage accounts a better investment for retirees.[07:59] Fixed annuities vs. inflation risks.[11:21] Brokerage accounts offer easy, penalty-free liquidity for investment withdrawal.[14:56] Brokerage accounts offer tax advantages, such as zero percent tax on long-term investments and flexibility to access funds at any age.[19:55] Traditional brokerage accounts offer transparency, ease of understanding, and no hidden fees, providing clear valuations and peace of mind.[20:54] Potential conflicts of interest associated with high commissions given to advisors who sell annuities. Understanding the Five Key Advantages of Brokerage Accounts for Lump Sum Investors Inflation Protection A primary concern for retirees is ensuring their income grows at least as fast as inflation. Fixed annuities, which guarantee a steady interest rate, sound appealing in their promise of stability, but these tend to pay rates (typically 4-6% as of now) that may barely keep pace with rising costs. If inflation spikes, the real value of your money could erode. Contrast this with long-term investing via a brokerage account. If you were to invest in a broad index fund tracking, say, the S&P 500, you’d historically average about a 10% annual return since 1957. Even accounting for average inflation (let’s say 3%), you’re left with a meaningful net gain. Over decades, this growth can make a significant difference, allowing your income and nest egg to grow, not just hold steady. Easy Access to Your Money Life is unpredictable. You might need to access your savings for a sudden expense, a home repair, a medical event, or a business opportunity. With annuities, most contracts enforce a “surrender period” during which you’ll pay penalties (sometimes starting at 7% and declining over many years) for early withdrawals above a limited free amount (typically 10% per year). Paperwork and delays are another downside. Brokerage accounts, on the other hand, offer quick and penalty-free access. Whether you need all or just part of your funds, they’re typically available within a couple of business days. You’ll pay taxes on any gains, sure, but you’ll sidestep surrender charges and bureaucratic hurdles. Potentially Lower Taxes With Brokerage Accounts Tax treatment is often overlooked but can have a big impact on your bottom line. Annuitized payouts and withdrawals from annuities are taxed at ordinary income rates, with gains coming out first (LIFO: last in, first out). That can mean higher taxes for many, especially if you’re in a modest or high tax bracket. With a brokerage account, long-term investment gains are generally taxed at lower capital gains rates (15% for most, and sometimes 0% for those in the lower brackets). Plus, if you inherit a brokerage account, most investments receive a “step up” in basis, the new tax cost becomes the value at the decedent’s death, potentially eliminating decades of capital gains tax if sold immediately. Simplicity and Transparency Annuities come with layers of complexity, including various types (fixed, indexed, and variable), confusing rider add-ons, differing fees, and ever-changing product features. Even professionals can struggle to keep up! Brokerage accounts, by contrast, are simple and transparent. You get a clear statement showing exactly what you own, its value, and the associated fees, which are commonly lower than those inside annuity products. No hidden surrender charges or high ongoing costs. Avoiding Aggressive Sales Tactics and Conflicts of Interest Annuities are lucrative for the agents who sell them, with commissions sometimes soaring to 7%. This can create an inherent conflict of interest, particularly for seniors who might feel pressured into buying. Choosing a low-fee brokerage account, especially with the guidance of a fiduciary, fee-only financial advisor, can help you avoid these conflicts. You retain control, minimize costs, and benefit from unbiased advice. Annuities do have a place for certain ultra-conservative investors who value guarantees above all else. However, for most people, especially those seeking growth, flexibility, and transparency, a brokerage account is often the safer and smarter long-term choice. If you’re ...
    続きを読む 一部表示
    24 分
  • Facts vs. Fiction in Retirement Planning, #259
    2025/06/24
    From the truths about making large purchases in retirement to whether you really need to pay off your mortgage before you stop working, I’m sharing years of financial expertise to challenge a few retirement myths so you can make balanced, informed decisions. We’re talking strategies for charitable giving, clearing up misconceptions about reverse mortgages, and explaining why inflation may be your biggest risk in retirement. If you’re looking for practical advice on enjoying your savings while still planning for the long run, or if you want to protect yourself from financial scams and fraud, this episode is full of actionable tips to build your financial confidence for the years ahead. You will want to hear this episode if you are interested in... [02:02] Leaving money to charity after death reduces estate value for taxes, but offers no immediate tax deduction.[04:17] Qualified charitable distributions and large donations can reduce taxable income, but are only deductible if you itemize.[08:11] Don't rush to pay low-interest mortgages; invest instead, as returns can potentially exceed mortgage interest rates.[13:03] Balance stocks with bonds and cash to manage risk and volatility.[10:10] Reverse mortgages can be a great idea in certain circumstances. Navigating the Maze of Retirement Myths Retirement often brings a sense of relief; finally, you get to enjoy the fruits of your labor! However, it’s also a period rife with uncertainty, especially when so much advice and information clash or seem outdated. In this episode, I’m tackling six of the most persistent myths retirees face. 1. Myth: Leaving Money to Charity Is Best Done After Death Many retirees assume that bequeathing assets to a charity upon passing is the most virtuous and tax-efficient way to give back. While this is always an option, leaving money to charity at death doesn’t net you a tax deduction; it simply reduces the size of your taxable estate. For the vast majority, it’s more impactful to consider gifting while alive. There are several ways to make charitable giving work for you, including: Qualified Charitable Distributions (QCDs): Donate part or all of your required minimum distribution directly from your IRA, reducing your taxable income.Cash Donations: If you itemize deductions, you can deduct cash gifts, potentially even enough to tip you into itemizing territory if the gift is large.Gifting Appreciated Assets: Donating highly appreciated stocks or real estate can minimize capital gains and offer you an income stream. 2. Myth: Large Purchases Are Off-Limits in Retirement Worried that buying a boat or funding a dream trip will doom your financial future? It’s a myth that large expenditures are always ill-advised. With a solid withdrawal strategy, say, 5% of a $2 million portfolio, making a one-time, reasonable purchase might slightly reduce your yearly income, but if balanced against market growth and overall planning, it’s rarely catastrophic. Thoughtful, planned spending helps you enjoy retirement, so don’t deprive yourself unnecessarily! 3. Myth: The Less You Spend, the Better Many retirees become excessively frugal, reluctant to draw down the savings they worked so hard to accumulate. But can’t take your money with you. While it’s wise to have a budget and withdraw at a sustainable rate, being too conservative may rob you of life’s joys, like travel, hobbies, or supporting family, while you’re healthy enough to enjoy them. The key is balance: know your withdrawal rate and revisit your plan regularly. 4. Myth: You Must Pay Off Your Mortgage Before Retiring It’s comforting to be debt-free, but urgently paying off a low-interest mortgage could backfire. If your mortgage rate is 5% or lower and your investments are earning more, you could be better off keeping the mortgage and leaving your assets to grow. Plus, withdrawing large chunks from retirement accounts to pay down a mortgage could trigger higher taxes or Medicare premiums and leave you with less liquidity. Carrying a modest mortgage into retirement is not a financial failure; it may be a savvy move. 5. Myth: Reverse Mortgages Should Be Avoided Reverse mortgages have a bad rap, often viewed as predatory or risky. While there were issues in the past, today’s products are much more regulated. If you’re 62 or older, a reverse mortgage can provide tax-free cash, letting you access home equity without moving. It’s especially valuable if much of your net worth is tied up in your home, or unexpected expenses crop up. Investigate carefully, but don’t dismiss this option out of hand. 6. Myth: A Market Crash Is the Greatest Retirement Risk Market volatility grabs headlines, but inflation and the risk of outliving your money are bigger threats. The right asset allocation, mixing stocks for growth with bonds and cash for stability, is essential. Yet, don’t forget about inflation: stocks have historically been the best hedge. Also, financial ...
    続きを読む 一部表示
    17 分

Retire With Ryanに寄せられたリスナーの声

カスタマーレビュー:以下のタブを選択することで、他のサイトのレビューをご覧になれます。