The Retirement Show: Your Life, Your Money with Scott Sierens

In today’s financial landscape, the market has been hitting new highs and interest rates remain at elevated levels. You might have even heard some of the buzz surrounding the Federal Reserve and interest rate adjustments. We’re here to bring some clarity to the question on many investors’ minds: What does all of this mean for my investments and retirement plans? Is all of this exciting or cause for concern?

Here’s some of what we discuss in this episode:

0:00 – Intro

3:20 – Understanding S&P 500 + Recent Market Highs

7:36 – Impact of Economic Indicators on Market Performance

9:56 – Analyzing Historical Returns + Being Cautious of Market Noise

15:12 – Market Performance Impact on Your Retirement

19:40 – Understanding the Federal Funds Rate

25:18 – Interest Rates Impact on Your Retirement

32:06 – Listener Question: Financial Indecision

Resources for this episode:

JP Morgan Chart – Investing during all time highs

https://www.jpmorgan.com/content/dam/jpm/securities/documents/cwm-documents/Is-it-worth-considering-investing-at-all-time-highs.pdf

Additional Information

https://awealthofcommonsense.com/2024/01/new-all-time-highs-after-a-bear-market/

https://ofdollarsanddata.com/should-you-invest-in-stocks-at-all-time-highs/

Interest Rates

USA Today Article - https://www.usatoday.com/story/money/2024/01/31/january-federal-reserve-meeting-live-updates/72409059007/

Nasdaq.com article - https://www.nasdaq.com/articles/wall-street-banks-readjusts-2024-interest-rate-predictions-after-feds-dovish-turn

Bankrate – Biggest Winners & Losers - https://www.bankrate.com/banking/federal-reserve/fed-interest-rate-decision-biggest-winners/

https://www.investopedia.com/terms/f/federalfundsrate.asp

Want to get in touch?

Web: https://sierensfinancialgroup.com/

Email: office@sierensfinancialgroup.com

Phone: 847-235-6989

Read more and get additional financial resources here: http://lifemoneyshow.com 

Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ 

In today’s episode, we’re going to discuss the retirement hazard zone. This is the 10 years leading up to retirement and the first decade of retirement itself. Listen in Scott compares this period to driving through a construction zone, focusing on the need to slow down, think differently, and be prepared for the unexpected.

Before we jump in, Scott will discuss the top 5 financial scams targeting retirees and pre-retirees and share some essential tips to help you avoid financial fraud.

Here’s some of what we discuss in this episode:

0:00 – Intro

0:58 – Scams targeting older adults + prevention

14:50 – Thinking differently in retirement

19:00 – Preparing for the unexpected

21:56 – Slowing down

25:39 – Listener question on Social Security

NCOA Article on Scams

https://www.ncoa.org/article/top-5-financial-scams-targeting-older-adults

Want to get in touch?

Web: https://sierensfinancialgroup.com/

Email: office@sierensfinancialgroup.com

Phone: 847-235-6989

Read more and get additional financial resources here: http://lifemoneyshow.com 

Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ 

Are you considering maxing out your 401(k) but unsure what to do next? We face this question all the time at the Sierens Financial Group so today we’ll explore if it’s wise to max out your 401(k) before investing anywhere else.

Here’s some of what we discuss in this episode:

0:00 – Intro

2:44 – What’s on today’s show

4:33 – What’s in the news right now? Spot Bitcoin was just approved by the SEC.

8:40 – What should you know about Spot Bitcoin?

10:50 – An 85-year study from Harvard reveals the one simple element that is the key to happiness.

14:26 – Should you max out your 401(k) first, or consider other options before contributing the max?

16:13 – Reasons you might want to max out your 401(k).

19:23 – Reasons you might NOT want to max out your 401(k).

23:08 – Exploring your options and how taxes play a role.

27:00 – Jacob’s question: Should you start Social Security at 67 if you’re still working?

References for this episode:

1. https://www.sec.gov/news/statement/gensler-statement-spot-bitcoin-011023
2. https://scoop.upworthy.com/harvards-85-year-study-reveals-the-number-one-key-to-happiness?utm_source=flipboard&utm_content=topic/personalfinance

Want to get in touch?

Web: https://sierensfinancialgroup.com/

Email: office@sierensfinancialgroup.com

Phone: 847-235-6989

Read more and get additional financial resources here: http://lifemoneyshow.com 

Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ 

In today’s show, we’re going to share some crucial changes and strategies that will help you navigate your financial landscape in 2024. Scott will break down the latest adjustments you need to be aware of, from increased standard deductions to updates in Social Security and Medicare. We’ll also share some strategic tips and tactics to position your tax and retirement plans for success in the coming year. 

Here’s some of what we discuss in this episode:

0:00 – Intro

3:52 – What’s new in 2024?

12:01 – Is your money in the right bucket?

16:30 - Starting HSA contributions

17:34 – Reviewing your investments

19:45 - Considering QCDs

20:35 - Reevaluating tax withholdings

22:32 - Automation

24:31 - Get a plan in place

Want to get in touch?

Web: https://sierensfinancialgroup.com/

Email: office@sierensfinancialgroup.com

Phone: 847-235-6989

Read more and get additional financial resources here: http://lifemoneyshow.com 

Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ 

We’re sharing this month’s mailbag episode a bit early, but we have 3 great listener questions lined up for today’s show! Miyuki asks if Scott can explain more about tax harvesting and how to take advantage of a stock loss. Lauren asks about the tax consequences of withdrawing from the Roth side of her 401(k) after 2023. Click play to see what you can learn!

Here are the questions we discuss in this episode:

• Can you explain more about tax harvesting? I sold two individual stocks last month. Both are a loss, but I don’t know how I can take advantage of this loss.
• I was just laid off. I am past full retirement age and the Roth side of my 401k hits 5 years on the 1^st of 2024. Can I withdrawal from the Roth 401K side without tax consequences after 2023?
• The 401k plan has pre-tax and post-tax (Roth). Is withholding required on post-tax Roth 401k money?

Want to get in touch?

Web: https://sierensfinancialgroup.com/

Email: office@sierensfinancialgroup.com

Phone: 847-235-6989

Read more and get additional financial resources here: http://lifemoneyshow.com 

Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ 

From 24/7 TV channels dedicated to economic news to artificial intelligence, have the advancements in technology made you a financial guru or just more confused? Today, we’ll explore how technology is reshaping financial planning, for better and for worse.

Here’s some of what we discuss in this episode:

• Google is a powerful tool for immediate information, but it’s important to use it with caution
• Online financial calculators are handy when used properly, but what if your inputs are wrong?
• Understanding the biases and goals of the media you’re consuming is important
• Preparing your retirement portfolio for longer lifespans as technology continues to advance

Want to get in touch?

Web: https://sierensfinancialgroup.com/

Email: office@sierensfinancialgroup.com

Phone: 847-235-6989

Read more and get additional financial resources here: http://lifemoneyshow.com 

Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ 

In a world where technology has placed instant gratification at our fingertips, it can be hard to make financial sacrifices when the reward might not be seen until several years in the future. Today we’ll talk about some of the situations where you might be inclined to take the immediate benefit, when you should really consider the delayed rewards…

Here’s some of what we discuss in this episode:

• Passing up a 401K match
• Saving only in tax-deferred accounts
• Claiming Social Security at age 62
• Skipping out on regular health check-ups and preventative care

Want to get in touch?

Web: https://sierensfinancialgroup.com/

Email: office@sierensfinancialgroup.com

Phone: 847-235-6989

Read more and get additional financial resources here: http://lifemoneyshow.com 

Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ 

It’s the last week of the month, so you know what that means! We’re back with a new mailbag episode. We’ve got some great listener questions lined up for you today, so stick around to see what responses and strategies might apply to your situation and help improve your financial picture.

Here are the questions we answer in this episode:

• I retired last month and started my state pension and Social Security. I’d like to do some part-time work, but I’ve heard that this can mess up my Social Security. Should I avoid getting a job?
• I just started a new job, and my base salary is low enough that it would be hard to contribute to a 401k and still pay my bills. Is it okay to just use my commissions for retirement savings?
• My company makes contributions to my 401k, but they’ll only do it in the form of company stock. I’ve just been selling it immediately and then investing in something else. Any reason I shouldn’t be doing that?

Check out episode 124 here!

Want to get in touch?

Web: https://sierensfinancialgroup.com/

Email: office@sierensfinancialgroup.com

Phone: 847-235-6989

Read more and get additional financial resources here: http://lifemoneyshow.com 

Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ 

Are we on the brink of a retirement renaissance or stormy seas ahead? In this episode, we jump into the pressing issues of Social Security, taxes, and the stock market. Whether you're an eternal optimist or cautious pessimist, this episode will equip you with perspectives to plan your retirement years with confidence as we ask the longstanding question, “is the glass half full or half empty.”

Here’s some of what we discuss in this episode:

• The future stability of the Social Security system + what this means for you
• Navigating tax code changes and implementing strategic tax planning
• Recognizing short-term volatility as normal, focusing on long-term positive trends, and developing an emotion-free investment strategy

Want to get in touch?

Web: https://sierensfinancialgroup.com/

Email: office@sierensfinancialgroup.com

Phone: 847-235-6989

Read more and get additional financial resources here: http://lifemoneyshow.com 

Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ 

The retirement planning world is filled with plenty of advice and suggestions, but there are critical questions lurking in the shadows – the unasked, the overlooked. These are the questions that can help define the comfort and security of your retirement future. In this episode, we unearth and tackle these essential questions about retirement.

Listen in as Scott sheds light on the potential coverage gaps and costs that might catch retirees off guard when it comes to Medicare. He also explores the impact of where you choose to live in retirement, delving into state taxes, cost of living, and other financial considerations, and talks about planning for the care of elderly parents.

Stick around to make sure that these 3 overlooked planning topics aren’t costing you time, energy and money in your golden years!

Here’s some of what we discuss in this episode:

• The medical coverage you might need over and above Medicare
• Where you choose to live during retirement can significantly impact your financial situation- considering state taxes, cost of living, and other regional factors
• What considerations should be made when planning for the time and financial commitments of caring for elderly parents during retirement?

Want to get in touch?

Web: https://sierensfinancialgroup.com/

Email: office@sierensfinancialgroup.com

Phone: 847-235-6989

Read more and get additional financial resources here: http://lifemoneyshow.com 

Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ 

Ever thought that minor tweaks in your financial plan could lead to major wins? In this episode, we're exploring the surprisingly powerful world of simple financial adjustments. This episode is filled with straightforward changes that you can put into action now to generate positive effects on your financial life.

Here’s some of what we discuss in this episode:

• Building up your rainy-day fund + Keeping the right amount of cash
• Ensuring your beneficiary designations are up-to-date and accurate
• The benefits of automating your savings for retirement
• Consolidating old 401k accounts when you change jobs
• Reviewing and updating your life insurance policies

Want to get in touch?

Web: https://sierensfinancialgroup.com/

Email: office@sierensfinancialgroup.com

Phone: 847-235-6989

Read more and get additional financial resources here: http://lifemoneyshow.com 

Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ 

Retirement is a unique journey for each of us. The thought that there's a one-size-fits-all solution is a myth, but what if we told you there are certain universal truths that can guide every retiree? Dive deep in this episode, where we juxtapose the individuality of retirement plans with the foundational principles that remain consistent across the board.

Here are the universal truths we discuss in this episode:

• Everyone needs an income plan
• No one can consistently time the stock market successfully
• Estate planning is not just for the wealthy- it’s for everyone!

Want to get in touch?

Web: https://sierensfinancialgroup.com/

Email: office@sierensfinancialgroup.com

Phone: 847-235-6989

Read more and get additional financial resources here: http://lifemoneyshow.com 

Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ 

We’re back for our third and final week of answering listener questions about year-end tax planning. These episodes are a unique opportunity for you to gain insights from real-world scenarios and inquiries shared by our listeners. In this installment, we're delving into the crucial concept of tax diversification, exploring methods to optimize your tax deductions for charitable contributions, and more.

Here’s some of what we discuss in this episode:

• I’m 56 years old and plan to retire at 70. My wife and I have almost all our money in our 401ks- should we start saving somewhere else because of RMDs?
• I’m retiring toward the end of the year and have about 16 weeks of PTO I can use. I’m told that I can take this all in my final paycheck or continue being paid on my normal schedule every two weeks for a few months after I retire. Does it matter which way I do it?
• My husband and I give around $10,000 / year to different charitable organizations. Our tax preparer said we are no longer able to deduct these donations.  Is that true?  Is there any way to get a deduction again on our taxes?

Want to get in touch?

Web: https://sierensfinancialgroup.com/

Email: office@sierensfinancialgroup.com

Phone: 847-235-6989

Read more and get additional financial resources here: http://lifemoneyshow.com 

Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ 

Today, we're diving into the listener mailbag once again, to answer your questions on tax planning and strategies for the year ahead. As we approach the end of the year, it's crucial to get your financial ducks in a row so that you can keep more of your hard-earned money. Scott offers valuable insights on whether to file taxes jointly or separately, how IRMAA can affect your Medicare premiums, tax surprises that can be caused by receiving unexpected income, and more.

Here are the questions we’ll tackle in today’s show:

• Husband is 70, wife is 65- Is it okay to file separately so each one can do Roth Conversions before RMDs kick in?
• How do you feel about taking a lump sum out of a 457B account? Is there any drawback to this besides taking a big sum of money? Will we owe any more taxes?
• I received a big bonus this year.  My company withholds for tax.  I assume there is nothing else I need to do from a tax perspective?

Want to get in touch?

Web: https://sierensfinancialgroup.com/

Email: office@sierensfinancialgroup.com

Phone: 847-235-6989

Read more and get additional financial resources here: http://lifemoneyshow.com 

Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ 

As we move into the fourth quarter of the year, let’s take a little time to focus on year-end tax planning. We’re opening up the listener mailbag and pulling out questions asking specifically about taxes and tax planning. We’ll be taking strategies and opportunities discussed last episode and apply them to certain real-life situations. 

No matter where you are today, use these questions today to see if you can take these strategies and utilize them in a similar situation to what we discuss. We’ll cover different types of Roth accounts, the benefits of a Health Savings Account, and tax planning for large IRA and 401k savings.

Here are the three questions we’ll tackle in this episode:

• How are the Roth IRA and Roth 403b different? Which is better: to max out your Roth 401(k) or Roth 403b? 
• I’m 59 years old and plan to retire around Age 65 or 66. I make over $150,000 / year.  My company offers a high deductible health plan and Health Savings Account.  Should I consider switching over to this health plan? Are there any benefits since it will only be fore 6 or 7 years? 
• I’m in my early 60s. I’ve got $2 million saved.  $1.7 million in IRAs and 401ks and the rest in a brokerage account. How do I keep from giving a huge portion of it to Uncle Sam?

Want to get in touch?

Web: https://sierensfinancialgroup.com/

Email: office@sierensfinancialgroup.com

Phone: 847-235-6989

Read more and get additional financial resources here: http://lifemoneyshow.com 

Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ 

As we move into the fourth quarter of the year, now is the time to be looking ahead and determining what year-end tax planning and retirement planning opportunities and strategies might be available to you. Evaluating where you are today and making the necessary changes can have a very positive impact on your financial position moving forward. Regardless of your situation, this episode will help you identify some areas that you should be discussing with your financial advisor before the year ends.

Key discussion points in this episode:

• The difference in tax planning and the tax preparation you do each year.
• How we produce tax projections and why that’s a key part of tax planning.
• The six different ways you can maximize your retirement planning accounts.
• Should you consider a Roth conversion this year?
• The other items like charitable donations, tax withholdings, medical expenses, tax loss harvesting and more.

Want to get in touch?

Web: https://sierensfinancialgroup.com/

Email: office@sierensfinancialgroup.com

Phone: 847-235-6989

Read more and get additional financial resources here: http://lifemoneyshow.com 

Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ 

In today’s show, we’re going to open up the listener mailbag and answer questions about pension selections, questions about the challenges you could face if there’s an age gap between you and your spouse, and then discuss the hidden costs you might not be seeing in your retirement income.

Each of these questions we’ll tackle today cover pretty common scenarios so you might find wondering about these down the road. Scott will provide some great thoughts and insight, recommendations, and strategies that could potentially be used in these situations. We always enjoy taking the strategies and tactics discussed on the podcast and apply them to some real life scenarios and that’s exactly what we’ll do today.

Key discussion points in this episode:

• Should I even bother taking the spousal continuation option for my wife to keep getting the monthly payment if she outlives me?
• My husband is 11 years old than me, and I probably have better genes than he does too, so it seems likely that I’ll be a widow for a significant portion of my retirement years. What sort of financial planning challenges does this create for me?
• I need about $5,000 to live on each month in retirement, and my Social Security and pension will total about $5,300. Does this mean I’ll be able to leave my entire 401k behind to my son?

Want to get in touch?

Web: https://sierensfinancialgroup.com/

Email: office@sierensfinancialgroup.com

Phone: 847-235-6989

Read more and get additional financial resources here: http://lifemoneyshow.com 

Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ 

In today's episode, we delve into a critical aspect of retirement planning that can significantly impact your financial future – Required Minimum Distributions (RMDs). Whether you've stashed your savings in a 401(k), 403(b), 457, IRA, SEP IRA, or simple IRA, understanding RMDs is crucial, especially if you're approaching your seventies.

Join us as we discuss the "why" and "how much" of RMDs, ensuring you're well-prepared for this financial milestone. If you're not yet retired, we've got you covered too! In the latter part of the episode, we'll share valuable steps and strategies to help you proactively reduce the long-term effects of RMDs on your financial well-being.

Key discussion points in this episode:

• If you have savings in tax-deferred accounts such as 401(k), 403(b), 457, IRA, SEP IRA, or simple IRA, you are required to take RMDs once you reach your seventies
• RMDs exist because when you contributed to tax-deferred accounts, you received tax deductions. The IRS wants to collect the taxes you deferred, so they require you to start withdrawing from these accounts in your retirement years
• The age at which you must start taking RMDs depends on your date of birth
• RMDs are calculated based on your account balances and life expectancy tables published by the IRS. The amount you need to withdraw increases as you get older
• There are strategies to reduce the impact of RMDs, such as switching contributions to Roth accounts, performing Roth conversions, and managing asset allocation

Want to get in touch?

Web: https://sierensfinancialgroup.com/

Email: office@sierensfinancialgroup.com

Phone: 847-235-6989

Read more and get additional financial resources here: http://lifemoneyshow.com 

Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ 

Are you expecting an inheritance, or planning to pass down assets to your loved ones? It's crucial to understand the potential tax implications that come with it. In this episode, we’re diving deep into the world of inheritance taxes.

Key discussion points in this episode:

• If you inherit real estate, the property's value is adjusted to its current market value when you receive it. If you sell it immediately, you may not incur much tax, but holding onto it could lead to tax liability, especially if it appreciates.
• Inheriting a 401(k), IRA, or similar retirement account means you'll likely have to pay income tax on withdrawals.
• Explore the benefits and pitfalls of inheriting Roth IRAs, which can provide tax-free growth if managed correctly. 
• Seek advice from financial and tax professionals to make informed decisions about inherited assets and tax planning, as tax laws can change.

Want to get in touch?

Web: https://sierensfinancialgroup.com/

Email: office@sierensfinancialgroup.com

Phone: 847-235-6989

Read more and get additional financial resources here: http://lifemoneyshow.com 

Check out our YouTube channel: https://www.youtube.com/channel/UCPhQ-u12d60Z0HNCwwVubdQ 

Many say that age is just a number, but when it comes to retirement planning, age means much more than that. Join us in this insightful episode as we delve into the world of financial milestones that can significantly impact your retirement planning. From age 50 to 75, we uncover the strategies, opportunities, and pitfalls tied to these pivotal years.

Learn why age isn't just a number when it comes to taxes, charitable giving, and required minimum distributions (RMDs), as Scott shares how you can strategically use these age milestones to optimize your retirement planning journey. From Social Security choices to Medicare considerations, we guide you through the intricate web of financial decisions, ensuring that every year counts towards a brighter and more secure retirement.

Here are a few milestones we discuss in this episode:

• At age 50 and over, individuals can contribute more money to their retirement plans such as 401(k), 403(b), and 457, with a $7,500 increase in contribution limits compared to those under 50.
• The "Rule of 55" allows penalty-free withdrawals from a 401(k) if you leave your job at age 55 or older.
• Age 62 is the earliest you can start claiming Social Security benefits, full retirement age varies based on birth year, and age 70 provides the maximum benefit.
• Turning 65 is an important age for considering Medicare enrollment.
• RMDs are mandatory withdrawals from retirement accounts like IRAs and 401(k)s. These distributions must begin at specific ages, depending on your birth year.

Want to get in touch?

Web: https://sierensfinancialgroup.com/

Email: office@sierensfinancialgroup.com

Phone: 847-235-6989