Episodios

  • 4 Ways To Get More Money Into Tax-Free Roth Accounts, #210

    4 Ways To Get More Money Into Tax-Free Roth Accounts, #210
    Jul 16 2024
    Why would you want to make a Roth contribution? If you believe tax rates will be higher in the future, it could benefit you. How? The contributions grow tax-deferred. When you withdraw the money, it’s tax-free. A tax-free income can be very beneficial in retirement. In 2024, you can contribute $7,000 to a Roth IRA. If you’re over 50, you can contribute $8,000. However, there are income limits for the contributions. Individuals who make over $161,000 can’t contribute. Thanks to the 2017 tax cut, there are some additional ways you can contribute to a Roth IRA. I cover four ways you can get money into Roth accounts in this episode of Retire with Ryan. <> You will want to hear this episode if you are interested in... [1:34] How to make a traditional Roth IRA contribution[4:06] Option #1: The Backdoor Roth IRA[8:06] Option #2: Contribute to a Roth 401K[9:16] Option #3: Do a Roth conversion[13:17] Option #4: A Mega Backdoor Roth IRA Option #1: The Backdoor Roth IRA Let’s say you’re contributing to a Roth IRA indirectly (I talked about this in episode #176). To do that, you have to set up both a transitional and Roth IRA with the same company. Then, you make a non-deductible contribution to your traditional IRA. After that, you fill out a request form to convert that money to the Roth IRA. They’ll move it for you. What’s the biggest mistake you have to avoid when doing this? Listen to find out! Option #2: Contribute to a Roth 401K If you have the option to contribute to a Roth 401K, use it. Why? Because there are no income limits on who can contribute to a Roth 401K. You could make well over the limits to contribute to a Roth IRA and still make a contribution. In 2024, you can contribute $23,000 to a Roth 401K or $24,500 if you’re over 50. Option #3: Do a Roth conversion Currently, everyone can convert money in a traditional IRA or 401K into a Roth IRA or 401K. Let’s say you have $100,000 in an IRA that you want to convert. You’d have to pay Federal and State tax on the $100,000 you’re converting plus any other earned income for the year. When would this make sense? You don’t have to pay a 10% penalty on the conversion if you’re under 59 ½. Secondly, if you think you’ll be in a higher tax bracket in retirement, and don’t need access to the money now, it might make sense to roll it over. It will have time to make back the money you had to pay in taxes upfront. But your plan has to offer a Roth 401K. You’d choose the amount you want to convert from the traditional IRA to the Roth 401K. You’d pay taxes on the amount you’re converting. 40% of 401K plans offer this feature. But you have to consider if the conversion will push you into a higher tax bracket. Option #4: A Mega Backdoor Roth IRA Some 401K plans allow contributions above the traditional $23,500 limit. The IRS has a total pension profit-sharing contribution limit. For 2024, that number is $69,000. That’s the total that your employer can contribute to your retirement plan. Let’s say you and your employer contribute $30,000. Because you haven’t hit the maximum, there’s an additional $39,000 that can be contributed to your 401K as an after-tax contribution. Then you have to convert it to your Roth account. That’s the Mega Backdoor Roth IRA. If you’re over 50, you can also contribute the additional $7,500 catchup. Government 457 plans and most 403B plans don’t allow this after-tax contribution. Many 401K plans do. How do you get the most out of that contribution? Find out in this episode! Resources Mentioned Retirement Readiness ReviewSubscribe to the Retire with Ryan YouTube ChannelFiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial Advisor7 Backdoor Roth IRA Mistakes to AvoidHow a Mega Backdoor Roth IRA Can Accelerate Your Retirement Savings Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan
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    18 m
  • How To Earn More In Your Health Savings Account, #209

    How To Earn More In Your Health Savings Account, #209
    Jul 9 2024

    One of my favorite ways to save for retirement is through a Health Savings Account (HSA). Too many people overlook a health savings account as a great way to save for retirement and healthcare costs. So how do you get the most bang for your buck out of your HSA? I share some simple strategies that very few people employ in this episode.

    Disclaimer: I don’t work for Fidelity and they do not compensate me for my reviews. I simply believe it’s a great option for my clients.

    You will want to hear this episode if you are interested in...
    • [2:14] What is an HSA?
    • [4:03] The tax benefits of an HSA
    • [4:59] Why put money into an HSA
    • [9:17] The bucket approach with HSAs
    • [10:23] How to grow your HSA
    • [13:48] Action steps
    The benefits of an HSA

    HSA plans are considered a triple-tax-free retirement account. When you contribute money to the plan, you get a tax deduction on the contributions (reducing your taxable income). The money in the HSA can be invested and grow tax-free. When you take the money out to use it for qualified expenses, it’s tax-free. No other retirement account gives you this benefit.

    Let’s assume your HSA is offered through your employer. A good HSA is one that allows you to buy individual stocks and bonds or mutual funds at a low cost. If they don’t offer this, you may want to move to another HSA provider. Outside of employer-sponsored HSAs, my favorite provider is Fidelity.

    If you’re just getting started and you’re not ready to invest the money (it’s being saved for healthcare expenses) you want to at least be earning interest. If you don’t choose the stocks, bonds, or mutual funds you want to invest in, your money is automatically swept into a money market option (with rates around 4.5%).

    How to grow your HSA

    In 2024, a single person can contribute $4,150 to an HSA. If you’re eligible for a family HSA, your limit is $8,300. If you’re over 55, there’s a $1,000 catch-up allowance per year. I would max out your HSA every year and prioritize it beyond your 401K.

    You want to let the money grow so that you’re only spending your gains in the future. That’s why you want to pay most HSA-related expenses out of pocket—not with your HSA. The biggest mistake I see is people spending through their HSA money immediately. When you do that, you won’t see tax-deferred growth. So what do you do instead?

    If you can, track your expenses on a spreadsheet and keep your receipts. When I pay medical bills, it’s entered into my spreadsheet. Let’s say my family spent $15,000 on medical bills over the last six years and my HSA has $30,000 in it. If I wanted to, I could reimburse myself at any point in time for those expenses, tax-free.

    Once you turn 65, you can use the money in your HSA for any expenses. It acts just like a 401K. I share my whole strategy in this episode—don’t miss it.

    Resources Mentioned
    • Retirement Readiness Review
    • Subscribe to the Retire with Ryan YouTube Channel
    • Fiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial Advisor
    • Qualified Medical Expenses (per the IRS)
    • Fidelity HSA
    Connect With Morrissey Wealth Management

    www.MorrisseyWealthManagement.com/contact

    Subscribe to Retire With Ryan
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    17 m
  • Is Social Security Going Broke? #208

    Is Social Security Going Broke? #208
    Jul 2 2024
    Will your benefits be there when you need them the most? If so, should you collect your benefits as soon as possible? This is something I’m frequently asked, so much so that I decided it was time to address it. So in this episode of Retire with Ryan, I’ll cover how Social Security works, how long Social Security will remain solvent, and whether or not you should collect early. <> You will want to hear this episode if you are interested in... [1:52] How does social security work?[4:23] Social Security solvency report[6:10] What are the options?[10:24] Are there enough people paying in? [11:25] Should you wait to collect Social Security? How does social security work? Every dollar you earn—up to an annual maximum amount—is taxed for Social Security and Medicare. This is known as the FICA tax. You pay 6.2% of your income up to $168,600. The company you work for also pays 6.2%. If you’re self-employed, you pay both portions. The amount you earn over $168,000 isn’t subject to the FICA tax (but is subject to the Medicare tax). The limit is adjusted upward annually. The money is used to pay current Social Security beneficiaries their monthly check. When social security first started, 40 people were paying into the fund to every one person collecting. That ratio is now closer to 2-to-1. The initial surplus was put into the Social Security Trust Fund to pay for future benefits. Now, more funds are being paid out than taxes being collected. The government is covering the deficit from the trust fund. This is why people are worried that Social Security will go broke. Social Security solvency report Each year, a report is issued on the solvency of Medicare, Social Security, and other social systems. It states that, unfortunately, Social Security and Medicare programs both continue to face significant financing issues. What else does it say? The Old-Age and Survivors Insurance (OASI) Trust Fund will be able to pay 100 percent of the total scheduled benefits until 2033. After this, 79% of scheduled benefits will be paid annually. If nothing is done in the next nine years, starting in 2033, recipients will see a 21% reduction in their benefits. This would be catastrophic for most people. How can we solve the solvency problem? Most retirees get 40% of their income from Social Security. Congress must do something to make sure people receive the same benefits. What can they do? Raise the Social Security earnings limit: They could raise or do away with the annual cap and tax everyone on their entire annual income. Increase in the percentage that’s paid in: Instead of 6.2%, they may raise the FICA tax to 7.2% or 8%. Increase in the age of retirement: Full retirement age for someone born after 1960 is 67. They may raise the age to 68, 69, or 70. Increase the taxation of benefits: Social Security benefits are taxed based on your earned income in the tax year you’re receiving your benefits. Benefits weren’t taxed in the past. But in 1983, Social Security was made taxable. Changing the cost-of-living adjustment calculation: In 2024, the COLA was 3.2%. With the high inflation we’re experiencing, this adjustment gives people a chance to have their income keep pace with inflation. Part of Social Security money could be set aside and invested in stocks/bonds: This is a quite unpopular proposition that some people believe is too risky. Congress needs to decide what they’re going to do and pass a bill into law. However, Congress tends to wait until the last minute to get things done. The last big change was in 1983. Hopefully, the next change will make the system solvent for longer. Resources Mentioned Retirement Readiness ReviewSubscribe to the Retire with Ryan YouTube ChannelFiduciary: How to Find, Hire, and Establish an Aligned and Trusted Partnership with a Fee-Only Financial AdvisorStatus of the Social Security and Medicare Programs (2024)Cost-of-Living Adjustment (COLA) Information for 2024How Medicare Enrollment Impacts HSA Contributions Changes to the Social Security Cost of Living Adjustment in 2023 Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan
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    15 m
  • Top Tax Mistakes to Avoid with Steven Jarvis, #207

    Top Tax Mistakes to Avoid with Steven Jarvis, #207
    Jun 25 2024
    What are some of the biggest tax mistakes you should be avoiding when you file taxes? CPA Steven Jarvis has worked on thousands of tax returns. He focuses on helping people who have a long-term focus. He wants to make sure his clients only pay every dollar they owe and nothing more. It’s not about getting a big tax return. It’s about looking at the long-term picture and being proactive. We dig in and dissect the top tax mistakes you need to avoid in this conversation. You will want to hear this episode if you are interested in... [3:02] Making proactive choices to impact your taxes[4:47] Learning about the foreign tax credit[6:43] Rollovers from 401Ks to IRAs[11:01] Equity compensation and severance pay[13:07] Managing advanced charitable giving strategies[21:10] What you need to know about HSAs[26:32] Pay what you owe—and nothing more Rollovers from 401Ks to IRAs You’ll likely roll over a 401K to an IRA only once or twice in your life. In theory, it should be simple—as long as the rollover is treated as a non-taxable event. It needs to be reported on a 1099-R form, which can be confusing. Tax-adjacent events go on your tax returns but you should not be taxed on them. If you’re working with a tax professional, you need to communicate that you’re doing a rollover. Before the tax return is filed, make sure you look it over to see if your income changed. If it has—and it shouldn't have—a rollover being improperly filed may be the culprit. Managing advanced charitable giving strategies A qualified charitable distribution (QCD) allows you to make a charitable contribution directly from an IRA to a charity. If you donate $1,000, you may save $200–$300 in taxes. If it’s a charity that you care about, great. But if you’re not charitably inclined, spending $1,000 to save $300 doesn’t make sense. But there are some other tax benefits. A QCD comes out of your income before your adjusted gross income is calculated. Why does that matter? Your adjusted gross income is part of the calculation to determine how much you pay for Medicare. Reporting this correctly is key. Most custodians don’t report how much money went to a charity because the IRS hasn’t created a way for them to do it. That’s why you (or your financial planner) must provide this information when your taxes are filed. I will send a breakdown of QCDs, distributions, etc. to my clients so they can report it properly. What you need to know about HSAs Steven sees people penalized for over-contributing to HSAs because the form (8889) is confusing and people fill it out incorrectly. That’s the #1 thing you have to watch out for with these. One of the advantages of an HSA is that it can grow tax-free. If you can pay medical expenses from another source while funding the HSA, you’ll also get a tax deduction. If you don’t need the money for qualified medical expenses down the road, you’ll just have to pay taxes on the money (which you can remove at age 65 without any penalties). If you keep track of your HSA-eligible expenses as you go, and have sufficient documentation, you can also request reimbursement for things that happened in the past. What other issues does Steven find himself correcting frequently? Learn other tax mistakes to avoid in this episode. Resources Mentioned Retirement Readiness ReviewSubscribe to the Retire with Ryan YouTube ChannelRetirement Tax Services PodcastSteven’s book, “Don’t Get Killed on Taxes”Connect with Steven on LinkedIn Retirement Tax Services Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan
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    29 m
  • Understanding Current Trends in ETFs with Matthew Bartolini, CFA, CAIA, #206

    Understanding Current Trends in ETFs with Matthew Bartolini, CFA, CAIA, #206
    Jun 18 2024

    What are the current trends with ETFs? What’s happening in the fixed-income market? How can investors tackle current challenges? Matthew Bartolini, CFA, CAIA—the head of ETF Research at State Street Global Advisors—joins me to dissect the ETF market and how investors can handle volatility.

    Matthew believes the ETF market will only continue to grow and create opportunities for long-term wealth. He shares how to navigate the factors that impact the market—including Federal Reserve policy, elections, and general trends—in this episode of Retire with Ryan.

    You will want to hear this episode if you are interested in...
    • [1:30] Learn more about Matthew and State Street
    • [2:27] The research on investing and election years
    • [4:54] The current trends in Exchange-Traded Funds (ETFs)
    • [9:20] What’s happening in the bond market
    • [11:21] Balancing risks while prioritizing diversification
    • [13:52] Understanding volatility and yield curves
    • [15:37] Why not put all of your money into corporate bonds?
    • [17:19] The uncertainty we’re facing with the Fed
    • [20:42] Build a strong foundation for your future
    Resources Mentioned
    • Retirement Readiness Review
    • Subscribe to the Retire with Ryan YouTube Channel
    • Connect with Matthew Bartolini on LinkedIn
    • ETF Costs and More with Matthew Bartolini
    • Advanced ETF Concepts with Matthew Bartolini
    • Elections and Equities: The Impact of the US Election on Sector Investing
    • Get more information on trends at SSGA.com
    Connect With Morrissey Wealth Management

    www.MorrisseyWealthManagement.com/contact



    Subscribe to Retire With Ryan
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    24 m
  • How to Evaluate if Your Financial Advisor Is Delivering Value, #205

    How to Evaluate if Your Financial Advisor Is Delivering Value, #205
    Jun 12 2024

    How do you know if your financial advisor is delivering value? Is seeing a financial gain in your investments the only metric you should use? I’ve identified four key areas where your financial advisor should be delivering value to you: Awareness of costs and fees, performance of your portfolio, financial planning benefits, and communication.

    I’ll cover each of these areas in detail in this episode. I’ve also included a checklist you can use to make sure your current financial advisor is delivering value.

    This is Part 5 of a five-part series about financial planners to celebrate the release of my first book, “Fiduciary: How to Find, Hire, and Establish a Trusted Partnership with a Fee-Only Advisor.”

    You will want to hear this episode if you are interested in...
    • [3:03] Area #1: Awareness of costs and fees
    • [9:25] Area #2: How your investments perform
    • [15:32] Area #3: The financial planning provided
    • [17:54] Area #4: Communication
    Resources Mentioned
    • Retirement Readiness Review
    • Subscribe to the Retire with Ryan YouTube Channel
    • Head to RetireWithRyan.com to get this free checklist
    Connect With Morrissey Wealth Management

    www.MorrisseyWealthManagement.com/contact

    Subscribe to Retire With Ryan
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    22 m
  • What To Expect Once I've Hired A Fee-Only Financial Advisor (Part 4), #204

    What To Expect Once I've Hired A Fee-Only Financial Advisor (Part 4), #204
    Jun 5 2024

    What should you expect once you’ve hired a fee-only financial advisor? Fee-only financial advisors typically offer financial planning, investment management, or a combination of both.

    In this episode, I’ll cover what each process will be like because what you’re hiring your financial advisor to do will determine how your experience will be (and what the relationship will look like).

    This is Part 4 of a five-part series about financial planners to celebrate the release of my first book, “Fiduciary: How to Find, Hire, and Establish a Trusted Partnership with a Fee-Only Advisor.”

    You will want to hear this episode if you are interested in...
    • [0:48] How to Find and Hire a Financial Advisor
    • [2:02] What is financial planning?
    • [3:36] The financial planning process + experience
    • [9:56] Understanding the implementation schedule
    • [12:37] The investment management process + experience
    • [27:15] What we’re covering in part 5
    Resources Mentioned
    • Retirement Readiness Review
    • Subscribe to the Retire with Ryan YouTube Channel
    • Fiduciary: How to Find, Hire, and Establish a Trusted Partnership with a Fee-Only Advisor
    Connect With Morrissey Wealth Management

    www.MorrisseyWealthManagement.com/contact

    Subscribe to Retire With Ryan
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    28 m
  • How To Find and Hire a Fee Only Financial Advisor (Part 3), #203

    How To Find and Hire a Fee Only Financial Advisor (Part 3), #203
    May 29 2024
    How do you find a fee-only financial advisor who’s the right fit for you? I’ve outlined a detailed process that you can use to not create a list, research your list, and interview and hire the perfect fit for you. I’ll cover it all in this episode. This is Part 3 of a five-part series about financial planners to celebrate the release of my first book, “Fiduciary: How to Find, Hire, and Establish a Trusted Partnership with a Fee-Only Advisor.” You will want to hear this episode if you are interested in... [1:00] What we covered in last week’s episode (Part 2)[4:05] Step #1: Compile a list of financial advisors[9:46] Step #2: Research the list you’ve compiled[15:00] Step #3: Interview your final list of advisors [23:33] What we’re covering in Part 4 of this series Step #1: Compile a list of financial advisors To compile a list of fee-only financial advisors, you need to ask yourself some important questions: Do you want to work with a local advisor that you can meet with in person? Are you willing to work with someone over Zoom or the phone?Is there a specific specialty that you’re seeking? Do you need help with retirement planning, college planning, or business planning? Many advisors specialize in narrow niches (mine is retirement planning for people over 50). Unfortunately, there isn’t one website you check out to find all of the fee-only financial advisors in the United States. However, one of the resources I like to use is the Certified Financial Planner Board of Standards website. This is the governing body through which people obtain their CFP certification. The only downside of the CFP board is that they allow both fiduciary and non-fiduciary advisors to become members. It’s difficult to act as a fiduciary if you’re a broker or carrying an insurance license. If you do work with a CFP, I always recommend working with one that’s fee-only. You can use any of the sites in the resources below—filtered by location and specialty—to compile a list of potential options. Step #2: Research the list you’ve compiled Start by heading to a financial planner’s website and poking around a little. If they state that they’re a fee-only financial advisor, confirm that. What do they offer? Do they offer financial planning only? Or do they only offer ongoing advice and investment management? Research their background by using BrokerCheck. You don’t want to find them there. Instead, you’d hope to see that they were previously registered (but no longer are). Head to Investment Adviser Public Disclosure to see if they’re a Registered Investment Advisor. They can be registered as brokers and insurance agents as well as an IAR. Look up the specific firm and find their “ADV.” The ADV is a disclosure document that every RIA has to file. This is an easy way to find out if they’re a broker, an insurance agent, or if they have any other conflicts of interest. Look up the individual financial advisor. Download the report to look at their work history and any disclosures or complaints that they’ve had. Once you’ve done this, it’s time to vet your top choices. Head over to my website for the full list of 10 questions that you must ask every potential advisor. Resources Mentioned Retirement Readiness ReviewSubscribe to the Retire with Ryan YouTube Channel“Fiduciary: How to Find, Hire, and Establish a Trusted Partnership with a Fee-Only Advisor,” The National Association of Personal Financial AdvisorsThe XY Planning NetworkThe Fee-Only NetworkGarrett Planning NetworkCFP BoardBrokerCheck Investment Adviser Public Disclosure The Fiduciary Pledge Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact
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    25 m