Five signs you are not spending enough money in retirement. Typically we get the question - am I spending too much? However, it is just as important to consider the alternative - am I spending enough? This week on Friends Talk Financial Planning, we discuss the issue of underspending in retirement. While many people worry about running out of money in retirement, some retirees actually have the opposite problem: they aren’t spending enough. As clients enter their 70s or 80s

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

This week we discuss legacy letters, which are personal letters written to loved ones to express values, life lessons, regrets, and love, beyond financial matters. Legacy letters allow individuals to leave behind something deeply meaningful—sharing wisdom, advice, and affirmations, rather than just focusing on money or material assets. The idea was inspired by a podcast featuring Blake Brewer, who shared his personal story of receiving a legacy letter from his father after h

Retirement planning for inflation - Don't worry about inflation, be happy in retirement! Many people worry about how inflation will affect their retirement expenses. It may not affect retirement as much as you might think. This week on Friends Talk Financial Planning, John and Bridget discuss the challenges and concerns surrounding inflation in retirement planning. They offer practical insights on how to manage inflation so you don't need to worry in retirement. They will di

In this episode of "Friends Talk Financial Planning," hosts John and Bridget dive into an important aspect of retirement planning: understanding and estimating future spending. They discuss how current spending habits can serve as a reliable baseline for retirement expenses, challenging the conventional advice to look at retirement spending as a percentage of pre-retirement income. John and Bridget explore the concept of the "retirement smile," which describes how spending o

Take advantage of tax planning as we approach the end of 2024! Join us this week as we continue last week's conversion discussing effective tax planning strategies for retirees, focusing on how to manage tax liabilities in retirement. Key points include: Tax Planning Before Social Security & RMDs: There is flexibility in managing taxes before Social Security benefits and Required Minimum Distributions (RMDs) begin. In these years, retirees can take advantage of low tax brac

Year end tax tips can be helpful when tax planning to help you save BIG this tax season. Bridget and John offer various tips that can help you plan, particularly as the year end approaches. Income Flexibility: Before retirement, individuals typically have limited control over their income, especially if they are W-2 employees. However, once retired, there is more flexibility in drawing income from various sources, which can be strategically managed for tax purposes. Deducti

Catch up on retirement savings - it's not too late to start saving today! Do you struggle with saving money? Take responsibility for your finances by starting to save for retirement today! We understand this can be a daunting task, but let go of perceptions, let go of fear, and begin where you are! In this episode of Friends Talk Financial Planning, Bridget and John address concerns for those who are 50 and haven’t saved for retirement. They begin by acknowledging the fear a

Tax changes post election - what can you expect and how can you prepare for these changes? Join us this week as Bridget and John discuss the potential impact of the recent election on personal finances, particularly taxes. Tax Changes: What to expect under the new political landscape. The Trump-era tax cuts, which were set to expire in 2025, could lead to tax adjustments or possibly nothing at all. Republicans might push for certain tax cuts, but the tax laws could remain un

Separating politics from your portfolio: what to know about the stock market and economy post-election. In this episode of Friends Talk Financial Planning, join John and Bridget as they discuss how the stock market and economy are impacted by the outcome of the recent presidential election. While political changes can create short-term market fluctuations, over the long haul, the stock market operates largely based on broader economic factors, not just who holds political of

I just turned 50. I have $100,000 saved. Do I have enough saved to retire? In this episode of Friends Talk Financial Planning, hosts John and Bridget address a viewer's concerns about feeling behind in retirement savings. They discuss whether it's too late to start saving for retirement at age 50, highlighting that having $100,000 saved is a significant accomplishment. The hosts encourage adopting a positive mindset, emphasizing the importance of celebrating financial mile

Your 200 Year Legacy is something that can be difficult to wrap your head around. Thinking about your legacy can enrich your life and help you find meaning. John Scherer details how he thinks through this legacy, then he and Bridget Sullivan Mermel discuss how this can help reframe your thinking so that you get beyond the day-in-day out troubles. Bridget's grandma passed along values to her, while John experienced a 200 year legacy moment with his family at the Hoover Dam

Money Buys Happiness But: Researchers have been trying to nail down how much money contributes to happiness for years. Daniel Kahneman published a landmark study that showed that happiness increased with more money, but up to the point of making about 75K per year for a household. Another researcher, Matthew Killingsworth, took on the same question and found that happiness and income kept going up. So which one is right? They went through a collaborative mediation proc

The debt limit ceiling is worrying a lot of people. By the end of this episode, you'll know: What is causing the debt ceiling crisis; What are the consequences of the US defaulting; The likelihood that we won't pass debt ceiling relief; What you can do about it. Bridget Sullivan Mermel and John Scherer are joined in this episode by Ken Robinson, JD, CFP(R). We discuss what we're telling clients about the debt ceiling, and what we suggest clients do about it. #debtcri

When you've reached a point in your life when you know you've got more than enough, you may think about passing along your financial wealth to your kids, grandkids, and charity. Tax-efficiency means youYou want to give money and pay less tax! Bridget Sullivan Mermel and John Scherer explain how to give money and pay the least in taxes for everyone involved. #acpmemberwisdom #estate Here's another video we shot about estate planning mistakes: https://youtu.be/VSvzddIDN

Reasons to Sell I Bonds: The new rate announced with Series I Bonds is 4.30%, which includes a .9% fixed rate. With the new interest rate announced that is lower than the interest rate has been recently on I Bonds, you may be asking yourself--when is it time to sell your I bond? Bridget Sullivan Mermel and John Scherer talk through how to approach the decision. There are more factors to consider than you may think! Savings Bond Series I Bonds have been great investments fo

Hi, this is Bridget Sullivan Mermel. Why financial planning? Why fee-only? What's important to John Scherer and I? The first time John Scherer and I were able to connect when COVID restrictions were lifted, I drove up from Chicago and we filmed this video in his office in Middleton, a suburb of Madison, Wisconsin. John talks about his reaction to selling insurance, while I talk about Dad's stock club. Why is financial planning meaningful to us? Tune in to find out!

Buying Series I Bonds before the rates drops make sense for many people. The rate changes on May 1 for new purchases, but in 2023, you need to get the I Bonds bought before April 27 to get the existing 6.46% annualized rate. Bridget Sullivan Mermel and John Scherer talk about why the interest rate on I bonds is expected to drop, and why there might be a silver lining. The variable rate is tied to inflation, which is not as high as it has been. But the fixed rate is importa

It seems like every day we hear about new scams and new scandals with people stealing our identity. On this episode, we’ll talk about actions you can take to protect your identity. Part of our work is helping people pay attention to what they should pay attention to and ignore the rest. We talk about email, passwords, sending codes to your cell phone, as well as how to handle calls from the IRS, Social Security or other government agencies. Feel safe, don't fall prey to

If you're worried about what the Silicon Valley Bank and Signature Bank's recent closings, you'll want to understand exactly what money that you have that might be at risk. In this episode, we cover why you might be worried, and if you are worried what you can do about it. The FDIC insures bank deposits. When banks collapse, the FDIC insurance kicks in. It's important to know when a bank fails how much you are insured for. Also, it's important to understand basic strategi