There are so many emotional and financial aspects to retirement. Navigating the transition to retirement can be extremely challenging. These challenges are compounded when planning for two within a marriage. This episode is about preparing for the transition to retirement when the retiree is married.

Sam is joined by his brother, Nate Martinez who is a licensed family and marriage counselor. Nate is married and has three kids. Sam and Nate explore the complexities of transitioning to retirement within a marriage. Nate also shares three tips to navigate this transition. 

Episode Highlights: 

[04:03] Nate's primary focus is marriage. He has level one training in The Gottman Method. 

[05:29] Common contention points in marriage include finances in different understandings and meanings of what money is. If each individual's definition of money isn't communicated well, conflict often develops.

[06:12] Values can also be a point of conflict. How time is spent can be another issue.

[07:01] Often the root of financial issues lies in not communicating well. We need to communicate expectations and what we understand money to be.

[08:24] The go and the whoa. 

[09:42] There needs to be transparency when one spouse is the one doing the finances.

[11:44] The psychological effects of change in transition. The five stages to change include pre-contemplation, contemplation, preparation, action, and maintaining it.

[13:37] Change is hard, because it creates fear and anxiety.

[14:45] One of the hardest things about retirement is staying retired. A lot of value and meaning is wrapped up in our work.

[16:22] A lot of people's identities are wrapped up in their work and their work relationships.

[17:42] It's always helpful to get professional help for any transition. One of the best things to do is figure out how to communicate with each other through the transition. There needs to be appropriate speaker and listener communication.

[19:01] When the listeners summarize what they're hearing, it shows that they're hearing what the listener would like for them to hear.

[20:04] Have good self-awareness. If there's criticism, defensiveness, contempt, and stonewalling during a transition, things won't go well.

[21:20]  There are perpetual problems and solvable problems. Most problems in relationships are perpetual. These are differences in personalities, identities, or values.

[22:46] Perpetual problems can lead to gridlock. Compromising is one solution. Find the coordinate and try to be flexible.

[23:29] Communicate what you want in retirement. Be self-aware and understand how you'll react if your expectations aren't met. Identify whether you're dealing with a perpetual or solvable problem. Be good speakers and good listeners.

[24:36] Get a financial plan together when you're preparing for retirement. Talk through what you would like retirement to look like for you and your spouse.

[25:24] Don't wait for retirement to do what you would like to do.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

Resources & Links Related to this Episode

• Wealthquest Get Started

• Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

• “Unretiring”: Why Recent Retirees Want to Go Back to Work

According to Benjamin Franklin, death and taxes are guaranteed. Just because they're inevitable doesn't mean we can't plan for them. This week, Sam and Wealthquest Director of Tax Planning, Brandon Butcher, tackle the planning stage of estate taxes. They talk about how to maximize the benefits of tax planning, along with specific action steps.

They also dive into some of the most common misconceptions around estate planning and estate tax. Brandon shares how estate taxes are computed, discusses exclusions, and explains what high-end estates need to be aware of. He also explains the basis step-up, which reduces taxable gains.

Episode Highlights: 

[04:37] Estate taxes are a tax on the transfer of all of your assets upon your death. The tax amount is the fair market value on the day of your death. The total of everything is the gross estate.

[05:30] There are deductions allowed including mortgages, debts, administrative fees, property that passes on to a surviving spouse, and qualified charities.

[05:56] After the net amount is computed, the value of lifetime taxable gifts is added to this number, and then the tax is computed. The taxes are then reduced by available unified credits.

[07:06] There is an annual gift tax exclusion of $18,000 in 2024.

[08:06] The federal lifetime exclusion is $13.61 million per person in 2024. 

[10:03] Most simple estates don't require the filing of estate tax returns. 

[12:27] The exemption is expected to go back down to $7 million in 2026, so high net worth individuals need to plan accordingly and revisit their estate plan.  

[15:15] Estate taxes aren't going to affect everyone. 

[17:59] Brandon helps clear up gift tax exclusion confusion. If the limitation is exceeded, a gift tax return is filed. Anything over the limit goes into the lifetime exemption. 

[20:41] Cost basis receives a step up at its fair market value at death which reduces the tax gains the heir is liable for. 

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

Resources & Links Related to this Episode

• Wealthquest Get Started

• Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

• Brandon Butcher

• What You Need To Know About Deaths and Taxes

• Death and Taxes Event Recap (Death)

Wealthquest's Director of Financial Planning, Megan Hammann, and Director of Tax Planning, Brandon Butcher, gave a webinar on death, taxes, and preparing for these inevitable events. In this episode, Sam and Megan give a recap of the event and focus on how to get through the transition of assets after a loss.

We talk about assets, investments, property, and estate planning. Planning objectively for the legacy we want to leave is extremely important. It involves stepping back to consider how we're going to provide for our family. We talk about the importance of having beneficiaries and planning outside of a will. We also emphasize the importance of open communication and explaining your goals and decisions to prevent misunderstandings.

Episode Highlights: 

[04:39] This episode is about making sure that we are setting up our beneficiaries for a smooth transition.

[06:35] Thinking about mortality can be difficult, but the planning needs to happen in life. Talk it over with your family and have everyone on the same page. 

[07:52] One of the biggest misconceptions people have is that everything will be taken care of if they have a will. A will isn't used any other way outside of probate court.

[08:25] The transition is so much easier if we find ways not to have to use the will. The will doesn't take effect until you die.

[09:36] The power of attorney will take care of your health care issues while you're still alive.

[10:51]  Anything that goes through probate is public record. There are also filing fees and court fees.

[11:20] Life can change so estate planning needs to be frequently or occasionally updated.

[12:18] Money is emotional. Grief comes out in different ways. We don't want assumptions made during trying times. 

[14:09] Be open and honest about your goals. Explain why you made your decisions. 

[17:06] When you have beneficiaries, it's a direct transfer of the assets. A will is a backstop, but there are a lot of things that don't get to your will.

[17:52] Money either goes through titling or ownership, beneficiaries, or through a will and probate.

[18:31] To avoid assumptions, talk to your family about your charitable beneficiaries.

[19:42] Planning can help lessen the stress.

[20:38] A family meeting can also help give clarity. Be open about your intentions. 

[22:52] Talk with your advisor or your team and make your planning in small chunks.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

Resources & Links Related to this Episode

• Wealthquest Get Started

• Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

• Brandon Butcher

• Megan Hammann

• What You Need To Know About Deaths and Taxes