Deferred compensation is often explained as a smart tax strategy, but the reality is more complicated than most people realize. In this video, we'll talk about how deferred compensation plans actually work, when they can reduce taxes, and when they might increase risk. Resources: - Alliance of Comprehensive Planners: https://www.acplanners.org - John's firm website: https://www.trinfin.com - Find us on Facebook: https://www.facebook.com/friendstalkfinancialplanning TRAN

In this episode of Friends Talk Financial Planning, John and Bridget discuss insurance mistakes that can cost you thousands and how to avoid them. There’s health insurance, life insurance, renter’s insurance, home insurance, auto insurance, umbrella insurance, and more. How do you decide what types of insurance you need and how much of each type is enough? Tune in for key insights that can help you choose insurance and avoid costly mistakes! Understanding the Importance of In

While Venmo and Zelle are very simple to pay friends and family, there are downsides of using these businesses that most people don't know. In this video, we'll talk about the real cost of using these platforms, and the opportunity cost of having your money stay with these platforms. Resources: - Alliance of Comprehensive Planners: https://www.acplanners.org - John's firm website: https://www.trinfin.com - Find us on Facebook: https://www.facebook.com/friendstalkfinancial

Let’s talk about 5 things that financial planners miss when working with their clients. From not planning for Social Security, to not making sure their client has the right insurance, these are important financial plans that your financial planner should be helping you with. Resources: - Alliance of Comprehensive Planners: https://www.acplanners.org - John's firm website: https://www.trinfin.com - Find us on Facebook: https://www.facebook.com/friendstalkfinancialplanni

In this video, we discuss the hidden tax pitfalls of annuities, which we describe as a “ticking tax time bomb.” While annuities are often marketed for their tax-deferred growth, they can become costly later because withdrawals are taxed as ordinary income rather than at lower capital gains rates. For example, a client who invested $50,000 decades ago saw it grow to $1 million. Now, nearly all of that gain is subject to income tax—potentially at rates of 22% or higher—whereas

This week we focus on the benefits of bond ladders over bond funds for financial planning, particularly in retirement. We discuss three main reasons we prefer bond ladders: 1. Guaranteed Cash Flow: Bond ladders provide predictable cash flow by using individual bonds that mature at different times, ensuring cash availability when needed, especially in retirement. 2. Peace of Mind: Bond ladders give clients confidence that they will have access to guaranteed income, especia

This week on Friends Talk Financial Planning, we discuss the strategic reasons behind selling stocks during market downturns. Although it seems counterintuitive to sell when the market is down, there are valid reasons for doing so, primarily focused on portfolio rebalancing and tax efficiency. Rebalancing—adjusting the proportions of different assets in a portfolio—can sometimes require selling stocks that have performed well to buy those that have underperformed, restoring

How do I save for retirement when I'm Self Employed? What are the options for retirement plans? Join us this week as we discuss small business retirement plans. We will explain the different options available and how to make the best choice based on your business's and personal needs. Option 1) SEP (Simplified Employee Pension): A simple, employer-funded IRA plan where employees can't contribute, but the employer makes contributions based on a percentage of employees' wages

Learn the 5 best ways to maximize savings in the new year! In this episode, Bridget and John discuss five important financial actions to take at the start of the year to maximize savings and improve financial health: 1. Maximize 401(k) Contributions: ensure you're contributing the maximum allowed to your 401(k). For those aged 60-63, there's a new catch-up contribution limit of $11,250, making it an ideal time to review and adjust contributions. 2. Contribute to Health Savi

This week we discuss important changes to 401(k) contribution limits for 2025, particularly for individuals aged 60-63. In 2025, people in this age group will be able to make larger "catch-up" contributions, increasing the maximum amount they can contribute to their 401(k) or 403(b) accounts. The new catch-up limit for these individuals will rise to $11,250, bringing the total contribution limit (including regular deferrals) to $34,750, up from $30,000 in 2024. We will also

Welcome back to Friends Talk Financial Planning! In today’s episode, Bridget and John discuss the strategic world of Roth conversions. Wondering when the best time is to convert your traditional IRA to a Roth IRA? Or maybe you're unsure when it’s better to hold off? We cover it all! Key topics discussed: Ideal times to consider a Roth conversion, especially during low-income years. The concept of "tax bracket arbitrage" and why it’s essential. Detailed explanation of Roth co

Welcome to FTFP! In this episode, hosts Bridget Sullivan Mermel and John Scherer dive into a critical topic: retiring with credit card debt. Is it advisable? What are the implications? While John offers a straightforward "no," Bridget unpacks the complexities behind this issue, shedding light on the emotional and financial dimensions of carrying credit card debt into retirement. Key Takeaways: - The financial downsides of retiring with credit card debt. - Emotional implica

In this episode of Friends Talk Finanical Planning, Bridget Sullivan Mermel and John Scherer discuss smart strategies for parking your idle cash to ensure it's safe and earns a decent return. Whether you're dealing with an unexpected windfall, an emergency fund, or just trying to be smarter about your finances, we've got you covered! Key Topics Covered: - The pitfalls of keeping money in checking or low-yield savings accounts. - The benefits of online savings accounts and

John thinks saving for college is stupid. That's going to be our topic today on Friends Talk Financial Planning. Join Bridget Sullivan Mermel and John Scherer as they dive deep into the controversial topic of college savings. Is it really necessary to save for your child's college education, or are there better ways to manage these costs? Watch this episode to find out! 📌 Links Mentioned: - USDA Study on Cost of Raising a Child: https://www.usda.gov/media/blog/archive/t

Are you considering long-term care insurance but feeling overwhelmed with all the options and details? Look no further! Join us, Bridget and John, as we delve into the nitty-gritty of long-term care insurance, the importance of evaluating its relevance to your unique financial situation, and the factors that impact the decision to get insured. In this episode of Friends Talk Financial Planning (FTFP), we are armed with insights from the Alliance of Comprehensive Planners and

In this episode of Friends Talk Financial Planning, Bridget and John dive into a fascinating survey conducted by Northwestern Mutual, highlighting the top obstacles to financial security. From inflation and the economy to personal debt and savings, they offer insightful perspectives on how we can rethink these challenges and focus on actionable steps to achieve financial stability. Don’t miss their practical advice that can help you control your financial future! Link to the

In this episode of Friends Talk Financial Planning, John and Bridget delve into the topic of net worth by age. They discuss the importance of understanding what net worth entails and share data on the median and 90th percentile net worth figures across different age groups. Join them as they break down the numbers and explore what it takes to be in the top 10% and even the top 1% of net worth in the U.S. Read the source article for the net worth data: https://ofdollarsandda

Join Bridget and John as they dive into the intriguing topic of "Rich Tax vs. Poor Tax" in this informative episode. Discover how the tax strategies and concerns differ between wealthier individuals and those with less income. Whether you're interested in maximizing your after-tax income or understanding more about tax planning and deductions, this episode has valuable insights for everyone. Remember to subscribe to our channel for more financial advice and insights. John's

In this episode of FTFP, hosts John Scherer and Bridget Sullivan Mermel dive deep into the importance of comprehensive and collision insurance for your vehicle. They explain what each type of insurance covers and discuss when it might be necessary to have them. Furthermore, they explore the broader landscape of auto insurance, including liability coverage and how to determine the right amount of coverage based on your assets and lifestyle. This informative discussion is essen

In this informative episode, Bridget Sullivan Mermel and John Scherer discuss the foundational aspects of personal finance, known as the five fundamentals of financial fitness. They outline the critical steps you need to follow to stay financially healthy throughout your life, discussing saving habits, emergency funds, retirement planning, smart credit card use, house buying tips, and investing in yourself. Stay tuned as they provide expert advice to help you navigate your fi