This week our conversation is all about 4 common mistakes when gifting money to kids. Listen today so you don't make these same mistakes! 1. Giving Too Much Money: It's important to avoid giving away more than you can afford, especially if it risks your own financial security. Only give money beyond what is necessary for your lifestyle and future needs, typically when you're confident that your wealth will last through retirement, which will usually occur in your late 70s or

In this episode of Friends Talk Financial Planning, we discuss ways to access retirement funds before the usual age of 59½ without paying the standard 10% early withdrawal penalty. Many people assume they’re completely locked out of their retirement accounts until that age, but there are several exceptions worth knowing. One key option is the “age 55 rule,” which allows individuals to take money from a 401(k) or 403(b) plan without penalty if you leave our job at age 55 or ol

In this episode of Friends Talk Financial Planning, we are joined by Denny Heywood, a former Social Security Administration (SSA) employee and consultant, to address public concerns about possible cuts to Social Security. Despite alarming media headlines, there are no current plans to cut Social Security benefits. However, without Congressional action to sustain trust funds, reduced payouts could occur around 2032. Denny explains that potential future fixes may include: 1) R

File now to claim your social security benefit - Don't wait, you could be owed thousands! In this episode of Friends Talk Financial Planning, we are joined by Dennis Heywood, a Social Security expert with over 30 years of experience at the SSA. We discuss the major changes brought by the Social Security Fairness Act, passed in late 2024, which eliminated the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These changes mean increased Social Sec

In today’s episode, we discuss the five factors that have a greater impact on your financial success than investment returns. While investment returns are important, focusing on these other key elements can have a far more significant effect on your long-term financial health. First, saving is critical. The amount you save—both in retirement accounts and through daily spending decisions—matters. It’s not just about contributing to your 401(k) or setting aside money for a rai

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

Are we headed for a recession? Predictions are flying, pundits are having a field day. But is it something you should be worried about? This week we break down some facts about recessions and what you can do to prepare if you are worried or feel like you might be vulnerable. Recessions are a natural part of the economic cycle, occurring roughly every 5 to 10 years, and are often influenced by factors like hiring and employment. While a recession can bring fear and uncertain

Join us today as we discuss how to manage market fluctuations in a time that appears to be experiencing some level of stock market volatility. We discuss how to navigate stock market volatility and the impact of market downturns. The market historically experiences fluctuations but tends to rise most years. Therefore it is important to have diversification in a portfolio, with stocks, bonds, and cash balancing risk and reward. Remember that market reactions can be exaggerate

In this episode of Friends Talk Financial Planning, we share valuable advice on how to optimize your benefits when changing jobs. First, we recommend revisiting your 401(k) contributions—especially if you're making more money at your new job. Consider increasing your contributions, and at a minimum, take full advantage of your company's matching contribution. We also suggest transferring any old 401(k) accounts to your new employer’s plan or an IRA to keep things organized a

This week, join us on Friends Talk Financial Planning as we talk about some key considerations when inheriting money or other assets. We first discuss considerations when inheriting money, particularly from retirement accounts. When inheriting 401(k)s or IRAs, distributions are taxable, and it's recommended to spread withdrawals over 10 years to avoid large tax hits, as taking a lump sum could push you into a higher tax bracket. In contrast, Roth IRAs and Roth 401(k)s offer

Expecting? Congratulations! Listen today to hear our 6 financial planning tips for when baby is on the way. Here’s our checklist with six essential steps to help you prepare financially for your baby’s arrival: 1. Review Your Health Insurance: Confirm that your health insurance provides the necessary coverage for both you and your baby once they're born. 2. Get Life Insurance: Secure life insurance to protect your growing family. You may need more coverage than you realize,

Just married or know someone who is? Listen today for how to manage money together for financial success in marriage. We discuss financial tips for newly married couples. Here is our checklist of key steps to take for financial success and future planning: 1. Save Together: Set up joint accounts for savings with common goals like buying a house or planning trips. Consider saving a percentage of bonuses for the household and personal savings to keep individual spending flexib

Getting married or know someone who is? Smart couples master these money moves before marriage! In today's conversation, we discuss important financial steps to take after getting engaged. Some of our suggestions: 1. Start Saving Together: It’s essential for couples to begin saving together, even before the wedding. Opening a joint savings account and contributing a set amount monthly can help establish a healthy financial foundation. 2. Share Your Financial Situation: Open

Join us as we discuss what we think is everything you need to know about taxes in the new Trump era! There is a lot of uncertainty around the future of tax laws under the new Trump administration. Although there's a lot of speculation, no concrete changes have been made yet. It is important to be aware of what is happening, but don't act until there is something concrete to guide your decisions. John recalls how the Roth IRA and Qualified Business Income (QBI) tax law chang

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

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