Are Retirees Actually Running Out of Money?
You may have heard that 45% of Americans retiring at 65 will run out of money. That stat gets thrown around a lot, but it’s based on outdated models that assume retirees spend the same amount every year, regardless of what’s happening in their life or the markets. In reality, retirees adjust. Many cut back even when they don’t have to. Wealthy retirees hold back too—worried about unexpected healthcare costs or market volatility. The truth is, most people adapt instead of blindly depleting their nest egg.

Spending in Retirement Isn’t Linear
Research from David Blanchett and T. Rowe Price shows spending in retirement tends to decline by about 1% to 2% per year. Yes, healthcare costs may rise, but other expenses like commuting, housing, and entertainment often go down. Some retirees follow a “retirement smile” spending pattern—more in the early years, less in the middle, then a modest rise later for medical costs. This natural decline in spending means your portfolio doesn’t need to be as large as you think. If you plan to spend $60,000 a year, you might only need $835,000—not $1.5 million.

Why Dynamic Spending Strategies Work
Instead of a rigid withdrawal plan, many retirees use dynamic spending strategies. That means adjusting withdrawals based on market performance and personal needs. Set guardrails. Adjust annually. Doing so boosts the odds your money lasts for life. It’s flexible, responsive, and realistic—because life is rarely linear.

Retirees Make Real-World Adjustments
About one-third of retirees in their 60s consider part-time work or consulting to supplement their income. Others downsize or move to lower-cost areas. Some rely on family temporarily. Retirees don’t just let their accounts run dry—they respond, adapt, and take control. That’s what real retirement looks like.

Retirement Confidence Is Higher Than You Think
According to the 2025 Retirement Confidence Survey, 78% of retirees say they feel confident about having enough to live comfortably. That’s even higher than the 67% of pre-retirees who feel the same. Confidence actually grows once you retire. Why? Because you realize life doesn’t stop, and the sky doesn’t fall.

Don’t Believe the Headlines
Alarming headlines claiming half of retirees will run out of money ignore how people actually behave. These models don’t consider flexibility, Social Security, pensions, or retirees picking up part-time work. They don’t factor in that people tend to spend less over time. It’s not that retirees are perfect—it’s that they’re practical. And they do what it takes to make it work.

Planning for a Confident Retirement
You don’t have to retire scared. With proper planning, flexible strategies, and a willingness to adjust, retirement can be more secure than you imagined. Don’t base your future on fear. Build it on facts—and give yourself the grace to adapt as life evolves.

Retirement isn’t about knowing exactly what will happen. It’s about being ready no matter what does.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

The post Will I Run Out of Money in Retirement? Here’s the Real Answer appeared first on ROI TV.

Collecting Social Security While Working

Yes, you can collect Social Security benefits while working, but there are some important rules and limitations to keep in mind. In 2025, the earnings limit is $23,400 for those under full retirement age (FRA). If you earn more than this threshold, Social Security will withhold $1 for every $2 earned above the limit.

AARP

It’s essential to know that only wages count toward this calculation—dividends, pensions, and rental income are excluded. Additionally, spousal income does not factor into the earnings limit for the individual collecting benefits.

If you reach full retirement age in 2025, the earnings limit rises to $62,160, and the withholding amount changes to $1 for every $3 earned above the threshold. Earnings prior to starting benefits don’t count toward the limit, so timing is critical if you’re considering collecting while still working.

AARP

Reporting Earnings to Social Security

When you apply for Social Security benefits, you’ll need to estimate your earnings for the year. Based on this estimate, Social Security adjusts your benefits and withholds the appropriate amount if necessary. At the end of the year, your actual earnings are verified, and adjustments are made. If you underreport your income, you might need to repay the excess benefits.

Options if You Return to Work After Collecting Benefits

Plans can change, and if you decide to return to work after starting to collect Social Security, you have two main options:

• Withdraw Benefits: If you’ve been collecting benefits for less than 12 months and are under FRA, you can withdraw your benefits and repay what you’ve received. This effectively “resets” your benefits.
• Suspend Benefits: If you’re at FRA or older, you can suspend your benefits without repayment. Your benefits will increase by 8% per year until you resume them.

Recalibration of Benefits After Withholding

If your benefits were withheld because you exceeded the earnings limit, Social Security recalibrates them when you reach FRA. This recalibration adjusts your benefit amount to account for the months withheld, effectively reducing the penalty for early collection. The result is a higher monthly benefit going forward.

Common Misconceptions About Retirement

Planning for retirement isn’t just about finances—it’s also about avoiding common pitfalls. Here are five misconceptions to keep in mind:

1. Relying on Two Incomes Forever If one spouse passes away, the surviving spouse often faces a significant income shortfall. It’s essential to plan for this possibility with life insurance or other income sources.
2. The Stock Market as the Biggest Risk Many retirees fear the stock market, but over the long term, it has historically outperformed “safe” investments like Treasury bills. Proper diversification can help mitigate risk while still allowing for growth.
3. Ignoring Inflation Inflation is one of the biggest threats to a secure retirement. Even a modest 3% inflation rate can significantly erode purchasing power over a 30-year retirement. Growth-oriented investments are essential to keep up with rising costs.
4. Considering the Home as a Retirement Asset Unless you plan to sell or monetize your home, it doesn’t generate income and can even become a liability due to maintenance and property taxes. View your home as a place to live, not your primary financial cushion.
5. Loving Not Having a Job While the freedom from work can be exhilarating, retirees often find they miss structure and purpose. Having a plan for how to use your time meaningfully—whether through hobbies, volunteering, or part-time work—is crucial for a fulfilling retirement.

Final Thoughts

Whether you’re navigating Social Security rules while working or challenging long-held assumptions about retirement, the key is thoughtful planning. Retirement isn’t a one-size-fits-all journey—it’s about aligning your financial strategies with your goals and priorities.

You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.

Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.

The post Navigating Social Security and Common Retirement Misconceptions in 2025 appeared first on ROI TV.

The Risks of Living Off Interest Alone

Many retirees are drawn to the idea of living off the interest their portfolio generates—it feels safe and predictable. However, relying solely on interest comes with a hidden risk: inflation. Over time, inflation erodes the value of your money.

For example:

• Today’s Need: $40,000/year
• In 30 Years (Assuming 3% Inflation): $97,000/year

This example illustrates how living off static interest payments fails to keep pace with rising costs, leaving you with reduced purchasing power and financial insecurity.

Prioritizing Income Growth Over Preservation

In retirement, the focus should shift from preserving the principal to growing income. Conservative investments like cash and bonds might feel secure, but they don’t provide the growth needed to combat inflation over the long term. A well-diversified portfolio that includes stocks can offer:

• Inflation Protection: Stocks historically outpace inflation, ensuring your income retains its value.
• Stable Income Growth: Dividends and capital appreciation contribute to a reliable and growing income stream.

The Power of Investing in Stocks

Stocks often serve as the backbone of a retirement portfolio due to their potential for higher returns. Let’s consider the S&P 500 as an example:

• Initial Investment (1993): $1,000,000
• Annual Withdrawal (Adjusted for Inflation): $40,000
• Portfolio Value Today (2023): Approximately $8.5 million

Even with regular withdrawals, the portfolio grew substantially, highlighting how stocks can maintain and grow purchasing power over time.

Diversification and Risk Management

While stocks are essential, diversification is key to managing risk. A well-rounded portfolio might include:

• Small-Cap Stocks: For higher growth potential.
• International Stocks: To capture global market opportunities.
• Real Estate: For stable income and diversification.
• Emerging Markets: To benefit from fast-growing economies.

This mix ensures that your portfolio is resilient to market fluctuations while still providing growth.

Maximizing Savings Beyond a 401(k)

Once you’ve maxed out your 401(k), there are several ways to continue saving:

• Health Savings Accounts (HSAs): Triple tax benefits for medical expenses.
• Roth IRAs: Tax-free growth and withdrawals.
• After-Tax 401(k) Contributions: Allows for additional savings with potential Roth conversions.
• Brokerage Accounts: Offers flexibility and accessibility for non-retirement needs.

Each option has its benefits and limitations, so understanding your goals and financial situation is crucial.

Paying Down Debt

High-interest debt, like credit card balances, should always take priority over investing. Paying off this debt provides a guaranteed return and reduces financial stress. Low-interest debt, such as mortgages, might not need to be paid off immediately, but doing so can offer emotional peace and simplify your finances.

The Role of Employee Stock Purchase Plans (ESPPs)

If your employer offers an ESPP, consider participating. These plans often provide a discount on company stock, offering a built-in return. To minimize risk, sell the stock soon after purchase to lock in the gain, even if it means sacrificing some tax efficiency.

Saving to Cash and Spending Wisely

Having a cash reserve is essential for short-term needs or as a buffer during market downturns. While cash doesn’t grow, its liquidity provides security. At the same time, don’t forget to enjoy your money. Align your spending with your values and goals to strike a balance between preparing for the future and living in the present.

Final Thoughts

Retirement is about more than just making your money last—it’s about ensuring your financial strategy supports the life you want to live. By focusing on income growth, diversifying your portfolio, and managing risks like inflation, you can create a plan that balances security and opportunity.

You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.

Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.

The post Why Growth Matters in Retirement: Balancing Income and Inflation appeared first on ROI TV.

The Starting Point: Todd and Katie’s Financial Snapshot

Todd (66) and Katie (63) have done an incredible job saving and investing over the years. Their net worth is $4.1 million, with $3.2 to $3.3 million in liquid assets. They’re ready to retire immediately and want to live on $8,500 per month, plus additional healthcare and travel expenses. Here’s a breakdown of their key numbers:

• Monthly Living Expenses: $8,500
• Healthcare Costs: $1,000/month pre-Medicare, $5,000 annually post-Medicare
• Travel Budget: $20,000 annually for 15 years
• Long-Term Care Costs: $60,000 annually per person

They also have Social Security benefits providing a steady income. Todd’s benefit is $3,400 per month, and Katie’s is $825, which will increase to a spousal benefit when she reaches full retirement age.

Analyzing Cash Flow Needs

The first step in creating the right portfolio mix is understanding their cash flow. Over the next five years, they’ll need about $600,000 from their portfolio to cover expenses. This tells us that the portfolio must prioritize liquidity and stability during these initial years while still growing enough to sustain them for decades.

Creating the Right Portfolio Mix

Todd and Katie’s current investments include funds like the Vanguard S&P 500 ETF, Fidelity 2025 Freedom Fund, and Invesco NASDAQ Fund. While these are solid choices, we needed to diversify further and adjust the risk profile to match their retirement needs.

The proposed portfolio includes a mix of:

• Growth Stocks: For long-term capital appreciation.
• Value Stocks: To balance risk and provide steady returns.
• International and Emerging Markets Funds: For diversification and exposure to global growth.
• Small Cap Funds: To capture higher growth potential.
• Bond Market and Short-Term Bond Funds: To provide stability and predictable income.

This allocation ensures that Todd and Katie have enough liquidity for the early years of retirement while still achieving growth to support their long-term goals.

Managing Risk and Tax Efficiency

One of the biggest concerns retirees face is how to weather market downturns. The portfolio is designed with 80% stocks and 20% conservative investments to provide a balance between growth and stability. The conservative portion will cover five years’ worth of expenses, giving Todd and Katie time to ride out any market volatility.

We’ve also incorporated tax strategies, including pulling from taxable accounts first and considering Roth conversions. This approach minimizes their taxable income and positions their portfolio for long-term efficiency.

Why Diversification Matters

Todd and Katie had a significant portion of their portfolio in the Invesco NASDAQ Fund, which has delivered impressive returns over the past decade. However, relying too heavily on one asset class can be risky. Diversifying into other asset classes, such as bonds, international stocks, and small caps, ensures their portfolio is resilient and not overly dependent on the performance of one sector.

Encouraging Todd and Katie to Dream Bigger

As we worked through their financial plan, one thing became clear: Todd and Katie have more than enough resources to live the retirement they’ve always dreamed of. In fact, I encouraged them to consider spending more—whether that means taking extra vacations, upgrading their home, or even gifting to family or charity.

Their disciplined saving and investing have put them in a strong position, and now it’s time to enjoy the fruits of their labor.

Final Thoughts

Your retirement portfolio should be as unique as your lifestyle. By understanding your cash flow needs, diversifying investments, and managing risk, you can create a portfolio that supports your goals today and into the future.

If you’re ready to take the next step in aligning your portfolio with your retirement vision, I’d love to help. Visit Root Financial to learn how we can create a personalized financial plan just for you.

You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.

Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.

The post How to Find the Right Investment Mix for Your Retirement Portfolio appeared first on ROI TV.

Why a Withdrawal Strategy Matters
A well-planned withdrawal strategy is essential for ensuring financial stability throughout retirement. While the 4% rule is a convenient benchmark, it assumes a static lifestyle and overlooks staggered income sources, fluctuating expenses, and market variability.

Limitations of the 4% Rule
The 4% rule was developed using historical data and assumes consistent withdrawals, but real-life retirement rarely follows a steady path. For example:

• Income Variability: Social Security benefits often start at different times for couples, altering the need for portfolio withdrawals.
• Expense Fluctuations: Retirees often face higher expenses early in retirement, such as travel and mortgage payments, which later taper off as these costs decline.

Breaking Down Staggered Income and Expenses
Retirement income and expenses are often staggered, requiring a more nuanced approach to portfolio management. For example:

• Early Years: Higher costs due to travel, healthcare before Medicare, or mortgage payments.
• Later Years: Lower expenses as travel reduces, mortgages are paid off, and simpler lifestyles emerge.

James suggests dividing a portfolio into tranches to address these phases:

• Tranche 1: Conservative investments to cover initial high expenses.
• Tranche 2: Balanced growth investments for medium-term needs.
• Tranche 3: Growth-oriented investments for longer-term needs, potentially leaving a legacy.

Adapting to Market Conditions
The 4% rule does not account for today’s market conditions, such as prolonged low interest rates or increased volatility. A rigid approach can lead to financial strain in a downturn. Instead, I recommend adjusting withdrawal rates dynamically based on market performance.
For example:

• Reducing withdrawals during a bear market to preserve portfolio value.
• Increasing withdrawals during periods of strong growth to fund additional expenses or desires.

Practical Application of a Dynamic Strategy
Dynamic withdrawal strategies can be tailored for flexibility and sustainability. Key considerations include:

• Timing Withdrawals: Opt for monthly or quarterly withdrawals instead of annual ones to align cash flow with expenses.
• Inflation Adjustments: Ensure withdrawals account for rising costs over time.
• Diversification: A diversified portfolio can often support higher withdrawal rates than the 4% rule suggests.

Case Study: Managing a $750,000 Portfolio
I am going to break down a $750,000 portfolio to demonstrate a dynamic strategy:

• $250,000 in conservative investments to cover the first 10 years of higher expenses.
• $300,000 in balanced growth investments for the following 10 years.
• $200,000 in growth-oriented investments for the remaining years to account for inflation and potential legacy goals.
  By staggering investments, retirees can align their withdrawal strategy with their income and expense patterns while maintaining financial security.

Key Recommendations
Viewing your portfolio in phases, each tailored to a specific stage of retirement. Holistic planning should include:

• Income sources (e.g., Social Security, pensions).
• Inflation adjustments.
• Tax implications of withdrawals.
• Market conditions to optimize portfolio performance.

Final Thoughts
The 4% rule is a helpful starting point, but retirement planning requires flexibility to address the realities of staggered income, fluctuating expenses, and unpredictable markets. A dynamic withdrawal strategy tailored to your unique financial needs ensures a comfortable and sustainable retirement.

Things to consider:

• A dynamic withdrawal strategy better aligns with varying income and expenses throughout retirement.
• Market-adjusted withdrawal rates ensure portfolio sustainability during economic fluctuations.
• Tranche-based portfolio management allows for a customized approach that evolves with retirement phases.

You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.

Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.

The post Creating a Dynamic Withdrawal Strategy for Retirement appeared first on ROI TV.

1. Why Traditional Retirement Planning Falls Short
The linear approach to retirement—education, career, savings, and finally retirement—can leave individuals deferring too much happiness to an uncertain future. James emphasizes that retirement planning must account for living well now, not just later.

2. Case Study: Bill and Susan
Bill (57) and Susan (57) embody the traditional approach to retirement planning. Their diligent savings and investments have resulted in a significant net worth, including:

• Bill’s 401(k): $882,000
• Rollover IRA: $321,000
• Susan’s 401(k): $669,000
• Roth IRA: $76,000
• Joint Investment Account: $1.2 million

They aim to spend $12,500 per month in retirement, plus additional healthcare expenses, but their demanding jobs are impacting their health and limiting their enjoyment of life.

3. Financial Projections and Concerns
With an 8% annual return, Bill and Susan’s portfolio is projected to grow from $3.2 million today to nearly $9 million in ten years. Even with a sustainable withdrawal rate of 2.3%, they face a common dilemma: Should they continue to prioritize savings, or is there a better way to balance life now and in retirement?

4. Balancing Time, Health, and Wealth
The trade-offs Bill and Susan face between time, health, and wealth. Their current path sacrifices time and health for financial security they may not fully enjoy. James recommends they:

• Demote Themselves: Transition to less demanding roles to improve work-life balance.
• Retire Earlier: Consider retiring at 62 instead of 67.
• Focus on Experiences: Allocate more resources to family activities, travel, and hobbies.

5. Alternative Retirement Strategies
Even with reduced savings and an earlier retirement, Bill and Susan’s portfolio could still grow to $19 million. This scenario demonstrates that enjoying life now doesn’t necessarily mean sacrificing long-term financial security.

6. Living Intentionally
Retirement planning should focus on intentional living. I encourage prioritizing health, relationships, and joy-filled activities over mere wealth accumulation. By redefining success, Bill and Susan can create a life that aligns with their values and aspirations.

7. Final Takeaways
Retirement planning should help individuals live a balanced, aligned life—not just accumulate assets. Money is a tool to achieve purpose and fulfillment, not an end goal. A holistic approach that integrates financial security with intentional living ensures a life well-lived, both today and in the future.

You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.

Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.

For personalized strategies that balance financial planning with living fully, visit Root Financial.

Related Articles:

• The Emotional Side of Retirement Planning
• Rethinking the 4% Rule for Modern Retirees
• How to Balance Saving for Retirement with Enjoying Life Now

The post A Holistic Approach to Financial Independence appeared first on ROI TV.

What is the FIRE Movement?
The FIRE movement focuses on drastically cutting expenses and saving aggressively to retire decades earlier than traditional norms. Advocates aim to achieve financial independence by building substantial assets, often retiring as early as age 40 or 45.

The Downsides of FIRE
An extreme focus on hitting financial milestones can lead to dissatisfaction and a lack of purpose after retirement. I like to share the story of Carl Mindy, who retired early with significant wealth but struggled to enjoy spending money and found himself unfulfilled. Pursuing financial independence at the expense of meaningful relationships and experiences can leave individuals feeling empty.

Aligning Money with Life Goals
Financial planning should be about more than just hitting numeric targets. Start with a clear understanding of your personal values and life goals. Write down what matters most—whether it’s relationships, health, or personal growth—and assign financial tasks to support these priorities. Money should be a tool to enhance your life, not the ultimate goal.

Practical Steps for Financial Planning
Intentional planning is key to aligning money with life goals. Budget for activities that bring joy and fulfillment, like family vacations, date nights, or hobbies. Assigning specific dollar amounts to these activities ensures they remain a priority in your financial plan.

Understanding Required Minimum Distributions (RMDs) and Tax Strategies
RMDs, which begin at age 73 for most retirees, can create significant tax burdens. Strategies like Roth conversions, delaying Social Security benefits, and utilizing qualified charitable distributions (QCDs) to reduce RMDs and optimize retirement finances.

Roth Conversions and QCDs
Roth conversions during low-tax years can reduce future tax liabilities by shifting funds from traditional IRAs to Roth IRAs. QCDs allow retirees to donate directly from their IRAs to charities, reducing taxable income and satisfying RMD requirements.

Asset Allocation and Legacy Planning
Adopt a conservative investment strategy for traditional IRAs to reduce growth and minimize RMDs. For those with significant IRA balances, legacy planning should consider tax implications for heirs. Strategies like naming a charitable trust as a beneficiary or converting funds to a Roth IRA can help mitigate tax burdens.

Conclusion
While financial independence is a worthy goal, it should not come at the expense of personal fulfillment. A well-rounded financial plan that aligns with your values and priorities ensures that your wealth supports a meaningful and enjoyable life. Pursue financial freedom with intentionality and purpose to achieve true satisfaction.

You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.

Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.

The post The Pitfalls of the FIRE Movement appeared first on ROI TV.

Concerns About Medicare Advantage Plans
Medicare Advantage plans have been the subject of growing concern due to their privatized nature and the impact on patient care. Marvin shares the story of Alice, a widow from San Francisco, who believes her husband’s premature discharge from a skilled nursing facility under a Medicare Advantage plan contributed to his untimely death. Similar stories, like Jen Coffee’s experience with denied treatments and Gary Bent’s struggles with consistent medical care denials, highlight the risks associated with these plans.

With private insurers covering nearly half of the nation’s 68 million Medicare beneficiaries, these issues are increasingly significant. The profit-driven nature of these plans often leads to cost-cutting measures that can directly affect patients.

Network Limitations and Instability
One of the primary challenges with Medicare Advantage plans is their reliance on provider networks.

• HMO Plans: Require patients to see in-network providers, with exceptions only for emergencies.
• PPO Plans: Allow out-of-network visits but at higher costs.

Hospitals and providers can drop Medicare Advantage plans mid-year, causing disruptions for patients who may need to find new care providers suddenly.

In contrast, supplemental plans allow patients to see any provider that accepts Medicare, offering stability and flexibility. These plans are portable nationwide and are not subject to annual changes, unlike Medicare Advantage plans, which must be renewed every year with potentially different terms, premiums, and networks.

Pre-Authorization Requirements and Delays
About 70–72% of services under Medicare Advantage plans require pre-authorization, which can lead to delays or outright denials of necessary treatments. Alice’s story is one of many where pre-authorization issues led to significant consequences. In contrast, supplemental plans cover any service approved by Medicare without requiring additional approvals, providing faster access to care.

Agent Bias and Misleading Recommendations
Medicare Advantage plans are often promoted by agents who prioritize commissions over clients’ needs. Many agents emphasize perks like dental and vision benefits while downplaying critical issues like network restrictions and pre-authorizations. Marvin stresses the importance of finding an agent who prioritizes integrity and client needs, offering unbiased advice tailored to individual health and financial circumstances.

Challenges in Switching Plans
Switching from a Medicare Advantage plan to a supplemental plan can be difficult if health conditions change. After the six-month open enrollment period tied to the Medicare Part B start date, supplemental plans require medical underwriting. Marvin shares stories of individuals unable to switch due to health conditions, emphasizing the importance of making an informed decision at the outset to avoid future complications.

Why Supplemental Plans Offer Better Stability
Supplemental plans, while more expensive upfront, provide significant advantages:

• No Networks: Freedom to choose any Medicare-accepting provider.
• No Annual Changes: Guaranteed renewable policies with consistent terms.
• Faster Access to Care: No pre-authorization delays.

These benefits make supplemental plans an attractive option for those who value stability and comprehensive coverage.

Getting Help with Medicare Decisions
Marvin outlines three options for navigating Medicare plan decisions:

• Call Center Agents: Often have limited knowledge and provide inconsistent service.
• Company Captive Agents: Restricted to promoting a single company’s plans.
• Independent Brokers: Offer access to multiple options, personalized advice, and ongoing support. Marvin advocates for working with independent brokers to ensure the best coverage for individual needs.

Final Thoughts
While Medicare Advantage plans may appeal to those seeking lower premiums and added perks, their limitations can lead to significant challenges. Supplemental plans, though more costly, provide greater stability, flexibility, and peace of mind. Making the right Medicare choice is crucial, especially as health needs evolve. By seeking unbiased guidance and thoroughly evaluating options, you can secure the coverage that best supports your health and financial goals.

The post Understanding the Drawbacks of Medicare Advantage Plans and the Benefits of Supplemental Plans appeared first on ROI TV.

1. Overlooking Tax Gain Harvesting

Tax gain harvesting involves selling appreciated assets to take advantage of lower capital gains tax rates, particularly the 0% rate for those within specific income thresholds. Retirees may miss this opportunity due to a lack of awareness.

Example: A retired couple with a substantial brokerage account can sell appreciated stocks, realizing gains while staying within the 0% capital gains tax bracket, thus increasing their after-tax income.

Seaside Wealth

2. Falling into the Social Security Tax Torpedo

The “tax torpedo” refers to the unexpected taxation of Social Security benefits as other income increases, leading to higher marginal tax rates. Retirees often inadvertently trigger this by not coordinating income sources.

Example: Joe and Sally, both retired, withdraw significant amounts from their traditional IRA, increasing their provisional income and causing a larger portion of their Social Security benefits to be taxed. Strategic withdrawals and Roth conversions could mitigate this issue.

Morningstar

3. Mismanaging Roth Conversions

Roth conversions can be beneficial, but improper execution—either converting too much or too little—can lead to unfavorable tax consequences.

• Under-Converting: Leads to higher required minimum distributions (RMDs) later, increasing taxable income.
• Over-Converting: Results in paying unnecessary taxes upfront, diminishing portfolio value.

Example: Ryan and Jolene convert a large portion of their traditional IRA to a Roth IRA in a single year, pushing them into a higher tax bracket. A phased approach over several years could have minimized their tax liability.

Kitces

Strategies to Avoid These Mistakes

• Annual Tax Planning: Regularly review your tax situation to adjust strategies in response to changes in income, tax laws, and financial goals.
• Professional Guidance: Consult with a financial advisor or tax professional to tailor strategies to your specific circumstances.

By being aware of these common pitfalls and implementing thoughtful tax planning, retirees can enhance their financial well-being and enjoy a more secure retirement.

You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.

Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.

The post Avoiding Common Tax Planning Mistakes in Retirement appeared first on ROI TV.

Financial Planning for Retirement

As you progress through life, your retirement planning strategies must evolve:

• Reality Check: Strategies for retirement at age 40 differ significantly from those at 60 or 80.
• Start Early: Set clear savings goals and estimate how much you’ll need for your retirement nest egg.
• Account for Inflation: Inflation can erode purchasing power, so your plan must include strategies to grow your assets and maintain your lifestyle.

Investment Strategies and Risk Management

Tailoring your investment strategy to your life stage is crucial:

• Aggressive Investments: Younger individuals may benefit from higher-risk, growth-oriented portfolios.
• Conservative Approach: As retirement nears, shift toward income-focused and lower-risk investments.
• Combat Inflation: Growth-focused investments can help counteract inflation’s impact on purchasing power.

Social Security and Medicare Planning

Understanding and maximizing benefits is key to financial security:

• Social Security Timing: Claiming Social Security at 62 reduces benefits, while delaying until 70 increases lifetime income.
• Medicare Essentials: Sign up for Medicare at 65 to avoid penalties. Understand the different parts (A, B, C, D) and consider supplemental insurance to fill coverage gaps.

Withdrawal Strategies and Tax Planning

A well-thought-out withdrawal strategy ensures your retirement savings last:

• The 4% Rule: Use this guideline to determine sustainable annual withdrawals from your portfolio.
• Tax Efficiency: Plan withdrawals to minimize tax burdens by leveraging tax-free accounts, Roth conversions, and charitable contributions.

Common Triggers for Early Retirement

Unexpected events often lead to early retirement:

• Health Issues: These are the leading cause of early retirement.
• Job Layoffs: Economic downturns or corporate changes can force earlier-than-planned retirements.
• Be Prepared: Have a contingency plan in place to manage savings and adjust spending if you retire earlier than expected.

Financial Reality Check and Tools

Staying on track requires regular evaluations and resources:

• Checklist: Use tools like a Retirement Reality Checklist to assess progress and make necessary adjustments.
• Plan Ahead: Regularly evaluate your savings goals, risk tolerance, and retirement income strategies to stay aligned with your objectives.

Conclusion

Adapting your financial plans as you move through different life stages is essential to achieving a secure and fulfilling retirement. By accounting for changing needs, inflation, and potential setbacks, you can build a plan that evolves with you and supports your goals. Take action today to ensure your financial future remains on track.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.

The post Adjust Your Financial Plans to Fit Every Stage of Life appeared first on ROI TV.

Prioritizing Retirement Savings and Reducing Expenses

To boost your retirement savings, start by evaluating your current spending and identifying areas to cut back, freeing up funds for investment.

1. Review and Adjust Your Budget: Analyze your expenses to distinguish between needs and wants. Reducing discretionary spending—such as dining out or entertainment—can free up funds for retirement savings.
2. Pay Down High-Interest Debt: Focus on eliminating high-interest debts like credit card balances. Reducing debt decreases financial stress and allows more resources to be allocated toward retirement.
3. Automate Your Savings: Set up automatic transfers to your retirement accounts to ensure consistent contributions. Treat these savings as non-negotiable expenses to build your nest egg steadily.
4. Consider Downsizing: If feasible, downsizing your home or vehicle can significantly reduce expenses, allowing you to redirect savings toward retirement.

Maximizing Contributions to Retirement Accounts in 2025

In 2025, take advantage of increased contribution limits and catch-up provisions to accelerate your retirement savings.

1. 401(k) Contributions: The IRS has increased the annual contribution limit for 401(k) plans to $23,500 in 2025. If you’re 50 or older, you can make an additional catch-up contribution of $7,500, bringing the total to $31,000. U.S. News Money
2. Enhanced Catch-Up Contributions for Ages 60-63: Starting in 2025, individuals aged 60 to 63 can make catch-up contributions of up to $11,250, providing an opportunity to significantly boost retirement savings during these years. U.S. News Money
3. IRA Contributions: The IRA contribution limit remains at $7,000 for 2025, with an additional $1,000 catch-up contribution for those 50 and older, totaling $8,000. U.S. News Money
4. Health Savings Accounts (HSAs): If you have a high-deductible health plan, consider contributing to an HSA. Contributions are tax-deductible, and withdrawals for qualified medical expenses are tax-free. After age 65, HSA funds can be used for non-medical expenses without penalty, though they are subject to income tax.

Exploring Additional Income Streams and Delaying Social Security

Supplementing your income and strategically timing Social Security benefits can enhance your retirement readiness.

1. Part-Time or Freelance Work: Engaging in part-time employment or freelance opportunities can provide additional income to invest in retirement accounts.
2. Passive Income Investments: Consider investments that generate passive income, such as dividend-paying stocks or rental properties, to supplement your retirement savings.
3. Delaying Social Security Benefits: For each year you delay claiming Social Security beyond your full retirement age (up to age 70), your benefits increase by approximately 8%, resulting in higher monthly payments during retirement.

Calculating Retirement Needs and Adjusting Investment Risk

Understanding your retirement income needs and aligning your investment strategy accordingly is crucial.

1. Estimate Retirement Expenses: Calculate anticipated retirement expenses, including housing, healthcare, and lifestyle costs, to determine your savings target.
2. Adjust Asset Allocation: As retirement approaches, consider shifting to a more conservative investment mix to protect against market volatility. However, maintaining some growth-oriented investments can help combat inflation.
3. Consult a Financial Advisor: A financial advisor can provide personalized guidance on investment strategies, retirement income planning, and tax-efficient withdrawal methods.

Final Thoughts

While starting retirement planning later in life presents challenges, proactive steps can significantly improve your financial outlook. By prioritizing savings, maximizing contributions, exploring additional income sources, and aligning your investments with your retirement goals, you can build a more secure future. Remember, it’s never too late to take control of your retirement planning.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

The post Retirement Planning for Late Starters: Strategies for Your 40s and 50s in 2025 appeared first on ROI TV.

• Retirement Savings Crisis: A Bankrate survey reveals that 55% of Americans are behind on their retirement savings, with 10% uncertain about their savings status. Alarmingly, 66% of working millennials have nothing saved for retirement, despite two-thirds having access to employer-sponsored retirement plans. Only about one-third participate in these plans. NIRS Online
• Financial Challenges for Millennials: Our generation faces significant financial hurdles, including high inflation, unstable banking systems, and escalating living costs. The soaring cost of education has led to substantial student debt, while housing affordability remains a distant dream for many. In cities like New York, saving for a down payment on an entry-level apartment could take over seven years, assuming no other debts.
• Retirement Planning Recommendations: Financial experts suggest having savings equivalent to your annual salary by age 30, three times by 40, and six times by 50 to stay on track for retirement. To secure a $50,000 annual retirement income, approximately $1 million in well-invested assets is necessary. Starting early is crucial; investing $100 monthly from age 20 can achieve this goal, but delaying increases the required monthly contributions significantly.
• Human Nature and Financial Planning: It’s understandable that many prefer to focus on immediate needs and experiences rather than distant retirement goals. However, this mindset, coupled with the reality that 20% of Americans don’t live past 60, poses challenges to long-term financial planning. Notably, 74% of millennials surveyed express doubt about ever affording a home.
• Investment Challenges and Mistakes: The average investor achieves only a 4.25% return compared to the market’s 10%, often due to emotional decisions like buying high and selling low. Additionally, investments in volatile assets, such as cryptocurrencies, can lead to significant losses, further hindering financial progress.
• The Reality of Long-Term Investing: Long-term investing requires discipline and patience, qualities that can be challenging to maintain over decades. Achieving a $50,000 annual retirement income with a 4.25% return necessitates $2.5 million in investments—a daunting target for individuals earning $50,000 annually.
• The Changing Nature of Financial Security: The traditional 40-year career providing financial security is becoming increasingly rare. While this shift presents challenges, it also encourages us to rethink our financial goals and strategies, potentially leading to more innovative and personalized approaches to financial security.

In conclusion, the convergence of inadequate savings, economic pressures, and evolving career landscapes suggests that many millennials may need to extend their working years beyond traditional retirement age. Addressing this issue requires a multifaceted approach, including increased financial literacy, proactive retirement planning, and systemic changes to support long-term financial security.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

The post The Looming Retirement Crisis: Why Many Millennials May Need to Work Indefinitely appeared first on ROI TV.

1. Understanding the Impact of Age Differences

Couples with substantial age gaps often face:

• Staggered Retirement Dates: The older partner may wish to retire earlier, while the younger continues to work, affecting income streams and lifestyle dynamics. Great Oak Advisors
• Extended Retirement Periods: A younger spouse may experience a longer retirement, necessitating a more robust financial plan to ensure longevity. Fool Wealth

2. Case Study: Fred and Lisa

Consider Fred (64) and Lisa (53), a couple navigating retirement planning with an 11-year age difference. Their situation highlights common challenges and potential solutions for age-gap couples.

3. Coordinating Retirement Timelines

Fred plans to retire at 67, while Lisa aims for 65, aligning with Medicare eligibility. This staggered approach requires careful planning to manage:

• Income Disparities: Maintaining financial stability as one partner retires earlier.
• Healthcare Coverage: Ensuring continuous health insurance, especially for the younger spouse before Medicare eligibility.

4. Social Security Strategies

Timing Social Security benefits is crucial. For age-gap couples:

• Maximizing Survivor Benefits: The higher-earning spouse delaying benefits can enhance survivor benefits for the younger partner. Kiplinger
• Individual Timing: Each spouse should consider their optimal claiming age based on life expectancy and financial needs.

5. Investment and Savings Allocation

Fred and Lisa’s differing investment strategies reflect their retirement timelines:

• Fred: 100% in stocks, aiming for higher returns before retirement.
• Lisa: A balanced mix of 45% stocks and 55% bonds, focusing on stability.

Couples should tailor investment portfolios to their individual timelines and risk tolerances, ensuring alignment with overall retirement goals.

6. Healthcare and Long-Term Care Planning

Healthcare expenses are a significant concern, particularly with age differences:

• Pre-Medicare Coverage: Planning for private insurance costs if retiring before age 65.
• Long-Term Care: Preparing for potential long-term care needs, considering the likelihood that the younger spouse may outlive the older. PlanCorp

7. Lifestyle and Travel Goals

Fred and Lisa aspire to travel extensively in their early retirement years. Budgeting for such goals is essential to prevent financial strain:

• Travel Budgeting: Allocating funds for travel while ensuring core expenses are covered.
• Adjusting Plans: Being flexible with travel plans based on financial assessments and health considerations.

8. Communication and Joint Decision-Making

Open dialogue about retirement expectations and concerns is vital:

• Aligning Goals: Ensuring both partners have a shared vision for retirement.
• Regular Financial Reviews: Periodically assessing financial plans to accommodate changing circumstances.

Conclusion

Retirement planning for couples with significant age differences demands a tailored approach, considering unique timelines, financial needs, and lifestyle goals. By addressing these factors collaboratively, couples can craft a retirement plan that ensures financial security and personal fulfillment for both partners.

You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.

Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.

Related Articles:

• 6 Considerations for Age-Gap Couple Retirement Success
• Retirement Planning for Spouses with an Age Difference
• Retirement Planning for Couples with an Age Difference

The post Navigating Retirement Planning for Couples with Significant Age Differences appeared first on ROI TV.

As the founder of Root Financial, I believe a common pitfall in traditional retirement planning—over-optimizing for financial security at the expense of enjoying life. Through the story of Tim and Jennifer, he shows how a personalized approach can transform the retirement experience.

Client Case Study: Tim and Jennifer
Tim (60) and Jennifer (60) sought deeper planning after working with another advisor. Their financial snapshot includes:

• Tim’s 403(b): $190,000
• Jennifer’s 401(k): $505,000
• Roth IRA: $58,000
• Joint accounts and home equity

Their retirement goals include $8,000 per month for basic expenses and $10,000 annually for travel over the next decade.

Income and Savings Projections

• Tim’s annual income: $76,000 (teacher)
• Jennifer’s annual income: $160,000 (director)
• Social Security: $2,500/month (Tim), $3,100/month (Jennifer)
• Tim’s pension: $4,000/month

They currently save 10% of their salaries into retirement accounts, with Jennifer receiving a 3% employer match.

Retirement Projections and Assumptions
Their current investable assets of $915,000 are projected to grow to $1.86 million by age 67, assuming a 6.9% annual return pre-retirement and 6.3% post-retirement. This portfolio will complement their Social Security and pension income to cover their expenses.

Cash Flow and Expense Analysis
Their retirement income sources will provide $9,600 per month, while their living expenses, including taxes, total $169,165 annually. Expenses account for:

• $24,000/year in mortgage payments until 2034
• $10,000/year for travel until 2039
  With inflation-adjusted projections, their plan is sustainable.

Probability of Success and Risk Management
Monte Carlo analysis shows a 100% success probability, suggesting untapped opportunities. James recommends exploring options such as:

• Retiring earlier (at 62 instead of 67)
• Increasing spending to enjoy retirement years more fully

Adjusting Retirement Plans
While Tim enjoys his job and may work until 65, Jennifer is experiencing burnout and might retire earlier or work part-time. Even with these changes, their financial plan remains robust, maintaining a high probability of success.

The Importance of the Last Five Years Before Retirement
The final five years before retirement are critical for maximizing compound interest and preparing for retirement costs. Examples include:

• Warren Buffett’s wealth doubling after age 56
• The potential for portfolios to double in value during these years

I advise using this period to pay for major expenses, handle medical procedures, and clarify retirement dreams.

Final Takeaways
Retirement planning should go beyond maximizing terminal portfolio value. Instead, focus on optimizing life experiences:

• Consider retiring earlier or adjusting spending habits.
• Balance financial prudence with personal fulfillment.
• Explore options like gifting money to children or charities during your lifetime.

You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.

Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.

A personalized, thoughtful approach to retirement ensures that financial and emotional goals are both achieved. For expert guidance, visit Root Financial to design a plan tailored to your needs.

Related Articles:

• How to Adjust Retirement Plans for Maximum Enjoyment
• The Importance of Balancing Financial and Emotional Retirement Goals
• Monte Carlo Analysis in Retirement Planning

The post Rethinking Retirement: Balancing Financial Security with Enjoying Life appeared first on ROI TV.

Medicare Options: Original Medicare vs. Medicare Advantage
When it comes to Medicare, individuals typically have two main options:

• Original Medicare with a Supplemental Plan: This option requires additional coverage to fill gaps in Medicare Parts A and B, along with a standalone drug plan for medications. Supplemental plans provide broad access to healthcare providers and predictable costs.
• Medicare Advantage Plans: These plans replace Original Medicare with private insurance, often bundling drug coverage into the package. While they may have zero premiums, they involve network restrictions, co-pays, and out-of-pocket costs.

Understanding Medicare Costs
Medicare Part B premiums are expected to rise from $174.79 in 2024 to approximately $185 in 2025. Higher-income individuals may face additional costs through the Income-Related Monthly Adjustment Amount (IRMAA), which has five income brackets determining the surcharge amount.

Supplemental plans require monthly premiums, offering predictable costs and minimal additional charges. In contrast, Medicare Advantage plans may feature no premiums but involve co-pays, co-insurance, and an annual maximum out-of-pocket limit.

Provider Access and Policy Terms
Supplemental plans provide unrestricted access to any provider that accepts Medicare, without the need for pre-authorizations or referrals. They are guaranteed renewable for life and portable across all states, making them ideal for those who prioritize flexibility and stability.

Medicare Advantage plans, on the other hand, have network restrictions (HMO or PPO models) and often require pre-authorizations for services. These plans are annual contracts that may change or terminate each year, and they are not portable across service areas.

Switching Plans and Medical Underwriting
Switching from one supplemental plan to another typically requires medical underwriting, except during the initial six-month enrollment period tied to your Medicare Part B start date. Medicare Advantage plans can be switched twice a year, but transitioning from Medicare Advantage to a supplemental plan later may also require medical qualification.

Top Three Supplemental Plans: F, G, and N

• Plan F: Covers all Medicare gaps but is only available to those who started Medicare before January 1, 2020.
• Plan G: Covers all gaps except the Part B deductible, making it the most comprehensive option for new enrollees.
• Plan N: Covers all gaps except the Part B deductible and excess charges, with co-pays for doctor visits and emergency room visits.

Foreign Travel Emergency Benefits
Certain supplemental plans (C, D, F, G, M, N) include a lifetime foreign travel emergency benefit of $50,000. This coverage handles 80% of costs after a $250 deductible, making it a valuable feature for frequent travelers.

Enrollment Periods and Guaranteed Issue Rights
The best time to purchase a supplemental plan is during the six-month open enrollment period tied to your Medicare Part B start date. During this window, you have guaranteed issue rights, meaning you cannot be denied coverage or charged more due to health conditions. If you delay Part B enrollment due to continued employment, your open enrollment period starts when you eventually enroll in Part B.

Switching Supplemental Plans
Switching supplemental plans is allowed year-round but often requires medical underwriting. People switch plans to save money, move to a younger risk pool, or adjust their coverage needs. It’s important to review your current plan annually and consider new options that may better suit your circumstances.

Getting Help with Medicare Decisions
Choosing the right Medicare plan can be complex, but assistance is available. Independent brokers, for example, provide comprehensive guidance and ongoing support, ensuring you get the right coverage at the same premium cost as any other agent type. Their expertise can help you navigate Medicare enrollment, understand your options, and make confident, informed decisions.

Final Thoughts
Medicare supplemental plans offer valuable peace of mind and financial predictability, especially for those seeking comprehensive coverage. Whether you opt for Plan F, G, or N, understanding the differences and evaluating your personal needs is key to selecting the right plan.

For personalized assistance, consider consulting a Medicare expert or independent broker. They can help you explore your options, compare rates, and secure the plan that aligns best with your healthcare and financial goals.

The post A Comprehensive Guide to Medicare Supplemental Plans: Top Choices and Key Differences appeared first on ROI TV.