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

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

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

Join us today for tips to maximize your spending in retirement when you saved more than you can possibly spend. I'm retired and I somehow have more money than I know what to do with. What do I do and how do I spend more? This is question we get from clients who have saved their whole life and now find themselves in retirement with more money than they can possibly spend. This week on Friends Talk Financial Planning, we discuss strategies for spending more effectively in r

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

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

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

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

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

Inheriting an IRA can be overwhelming, especially with the recent changes in tax laws. In this episode, Bridget and John break down the four essential things you need to know about inheriting an IRA. From understanding the new 10-year rule to tax-saving strategies, we cover it all. Make sure to watch until the end for valuable insights and tips! Resources: - Alliance of Comprehensive Planners: https://www.acplanners.org Follow Us: - John Scheer’s Practice: https://www.trinf

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

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 retiring before age 65 and worried about covering healthcare costs before Medicare kicks in? You're not alone! In this episode of Friends Talk Financial Planning, Bridget Sullivan Mermau and John Scherer discuss various ways to bridge the healthcare coverage gap if you retire before age 65. From spousal plans to Marketplace health insurance, COBRA, and more, we've got you covered with practical tips and insights. If you found this video helpful, don't fo

Join John and Bridget in this episode of Friends Talk Financial Planning as they delve into the upcoming tax rate changes scheduled for 2026. Learn about the potential implications and discover actionable strategies to best prepare for these changes. Whether you're currently in the 12% tax bracket or higher, this episode offers valuable insights to help you navigate the impending shifts in tax law. 🔗 Resources: - Alliance of Comprehensive Planners: https://www.acplanners.o

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 today's episode, Bridget and John explore the surprising reality of retirement age. Despite common perceptions, most people retire earlier than they plan to. Join them as they delve into why this happens, the financial implications, and how to plan effectively for an unpredictable future. Bridget Sullivan Mermel from Chicago, Illinois, and John Scherer from Middleton, Wisconsin, share their insights and experiences from their financial planning practices. They discuss stud

In this episode of Friends Talk Financial Planning, Bridget Sullivan Mermel and John Scherer discuss a recent survey by Northwestern Mutual that claims Americans think they need $1.46 million to retire. Bridget and John argue that people might be thinking about this all wrong. Instead of focusing on a specific savings number, the key question should be: How much do you want to spend in retirement? Tune in as they break down the survey results, discuss the anxiety around retir

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