Retirement Starts Today

What if you paid all your taxes - and still got hit with a penalty from the IRS? 
Our retirement headline this week comes from Laura Saunders in the Wall Street Journal. Estimated tax penalties are skyrocketing, and retirees and investors are some of the most likely to get caught in the trap.
We will cover that, then hop into our Listen Question: "What happens when you lose faith in fixed income as the foundation for your retirement plan?"
Then stick around to hear what our happiest retired listeners are up to in our newest listener-sourced segment "Retire to Something"
Resource: 
Article by Laura Saunders in the Wall Street Journal: Estimated Taxes Are a Pain. Here's How to Avoid Costly Penalties.
 
 
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Some desirable investment income - like interest and dividends - might actually hurt high-net-worth investors' bottom line. This comes from an article by Larry Swedroe in Financial Advisor Magazine.
He outlines four hidden costs that can quietly erode over 1% of after-tax returns each year:
Cash Drag
Tax Deferral
Step-up and Charitable Giving Advantage
Financial Planning Flexibility
For our Listener Question: "Are brokerage account gains taxed before the money is withdrawn?" If you've ever wondered how your taxable investment account stacks up next to your IRA or Roth, this one's for you. We dig into the 'magic middle' of retirement savings and clear up how and when Uncle Sam wants his share.
And to wrap up the show, Dave in New York shares his work of raising dogs to help the blind. 🦮
Resource:
Article by Larry Sweroe in Financial Advisor Magazine: The Hidden Cost Of Investment Income
Connect with Benjamin Brandt:
Subscribe to the This Week in Retirement: http://thisweekinretirement.com
Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
Work with Benjamin: https://retirementstartstoday.com/start
Get the book!
Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
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You might have received a Social Security cost-of-living increase this year — but did your net check actually go up? 
A recent Wall Street Journal article highlights how rising Medicare premiums and IRMAA surcharges are offsetting those increases for millions of retirees - and "takes a bigger bite out of Social Security checks".
Then, a listener writes in "How to convince my husband's parents to spend their money. We don't need it." Tune in to hear that one!
And we wrap it up with our "Retire to Something" segment from Dave in Massachusetts. 
Resource:
Wall Street Journal article by Laura Sanders: The Medicare Charge That's Taking a Bigger Bite Out of Social Security Checks
 
Connect with Benjamin Brandt:
Subscribe to the This Week in Retirement: http://thisweekinretirement.com
Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
Work with Benjamin: https://retirementstartstoday.com/start
Get the book!
Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
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Sheryl Rowling positions income tax returns as diagnostic tools — not merely a compliance document — and outlines four common red flags that suggest a client failed to take advantage of proactive tax strategies.
Here are "4 Tax Return Red Flags That Signal Poor Tax Planning":
Very Low or Zero Taxable Income
Charitable Giving After Age 70½ Without Using QCDs
Donating Cash Instead of Appreciated Securities
Holding Municipal Bonds in Low Tax Brackets
For our listener question: "I'm in a job I hate and would love to scale back to something that could pay less but be more enjoyable -- how can I evaluate if that is possible?". Most people think the first question is: "How much do I have saved?", but that's actually backwards. I share a calculation for cash burn that matters more than your portfolio balance.
And to wrap up the show in our "Retire to Something" segment, I'll share Jerry's story that shows us how retirement isn't about winding down — it's about doubling down on growth, adventure, and intentionally building an active, meaningful life. 
 
Resource:
Article by Sheryl Rowling on Morningstar: 4 Tax Return Red Flags That Signal Poor Tax Planning
 
Connect with Benjamin Brandt:
Subscribe to the This Week in Retirement: http://thisweekinretirement.com
Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
Work with Benjamin: https://retirementstartstoday.com/start
Get the book!
Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:
Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart

Retirees obsess over the exact safe withdrawal rate they think they'll need while simultaneously building layer after layer of backup plans. Dividends, buckets, multiple years of cash, constant Monte Carlo recalculations are all done in the name of safety.
Jordan Grumet's argument to this problem is simple and provocative: If you believe in the safe withdrawal rate, then act like it. Stop stacking contingencies on top of contingencies and chasing 100% certainty in a world where it doesn't exist. 
We go over Jordan's article "Stop Chickening Out" in our headline segment.
Then we answer Robert's question: "What if you just use the Traditional IRA for living expenses instead? If both approaches reduce the IRA balance and lower future RMDs, is Roth conversion strategy overhyped?"

And we wrap up the show with a story from one of our happiest retired listeners in our newest listener-sourced segment "Retire to Something".
Resources:
Article: "Stop Chickening Out" by Jordan Grumet
Jordan Grumet interview on our show: https://retirementstartstodayradio.com/purpose-vs-purpose-an-interview-with-doc-g-ep-382
 
Connect with Benjamin Brandt:
Subscribe to the This Week in Retirement: http://thisweekinretirement.com
Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
Work with Benjamin: https://retirementstartstoday.com/start
Get the book!
Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement
Follow Retirement Starts Today in:
Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart