1. The Social Security Puzzle
Richie and Heather from Idaho are facing a common but tricky decision—when to claim Social Security. Richie wants to wait until full retirement age in 2029, and Heather is considering claiming at 62 in 2025. But we walked through the math together and saw that delaying until 70 could significantly boost their lifetime income, especially for Heather’s survivor benefits. Her monthly benefit could grow from $1,830 at 62 to $3,358 at 70. And Richie? From $2,747 to $4,789. That’s a serious increase.

We always remind couples to weigh their Social Security timing against other income sources like IRAs and brokerage accounts. If you draw from those first, you might avoid higher taxes and give your Social Security more time to grow.

2. Strategic Roth Conversions
We also looked at how Roth conversions could help Richie and Heather reduce their future tax burden. Since they’re currently in a lower tax bracket, converting portions of their traditional IRA into a Roth IRA now—up to the top of the 12% bracket—makes a lot of sense. That way, they avoid larger required minimum distributions (RMDs) later and keep their brokerage account liquid for near-term spending needs.

3. Coordinating Retirement Spending and Portfolio Allocation
Their $2.625 million portfolio is in a 60/40 equity-to-fixed-income mix, and they plan to spend $120,000 per year (not including taxes). That gives them a lot of flexibility, but we encouraged them to avoid viewing their accounts as separate “buckets.” Instead, it’s better to manage the entire portfolio as one cohesive plan. For example, they’re withdrawing $50,000 soon to upgrade their travel trailer, and we talked about how to time that without triggering a big tax hit or pulling from equities in a down market.

4. A Cautionary Tale About Indexed Annuities
Rebecca and Sam from Virginia called in with a major regret: a $1 million indexed annuity they bought in 2022. Rebecca was frustrated with the confusing terms and underwhelming growth. We showed them that in many cases, these annuities take 20 years just to break even. While they offer “guaranteed income,” the trade-off is poor long-term performance. They’re now considering cashing out at the $954,000 surrender value—yes, that’s a $50,000 loss, but it may be worth the freedom to reinvest elsewhere.

5. Overpaying for Financial Advice
To make matters worse, Rebecca and Sam’s adviser is charging them 2% annually on their $1.2 million portfolio. That’s $24,000 per year—far above the industry standard of 0.60% to 0.70%. And if that adviser also earned a hefty commission on the annuity sale, that’s a red flag. We encouraged them to get a second opinion from a fiduciary who puts their interests first and charges a fair rate.

6. Don’t Bank on Social Security Tax Reform
Gerri from Phoenix asked about Donald Trump’s proposal to eliminate taxes on Social Security. While it sounds good, we don’t expect it to happen. These ideas tend to surface during campaign season but rarely materialize. We told Gerri to stick to his current strategy of waiting until 70 to claim benefits—because solid, long-term planning beats political speculation every time.

7. Claiming Social Security with a Twist: The Lump Sum Option
Pete Ware chimed in with an advanced tactic: waiting until age 70.5 to claim Social Security and then requesting six months of retroactive payments. That lump sum wouldn’t reduce the ongoing benefit amount, and it would create a full year for Roth conversions without Social Security income inflating the tax bill. It’s a smart move for the right person, but like any strategy, it needs to be part of a broader financial plan.

The Takeaway
Every decision in retirement has a ripple effect. Claiming Social Security early might cost you thousands over time. Overpaying for advice could mean retiring later than you’d like. And an annuity that feels “safe” could quietly erode your nest egg. But with careful planning—especially around taxes—you can make the most of your savings and build a secure, tax-efficient retirement.

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 How to Maximize Social Security, Roth Conversions, and Retirement Spending Without Losing Sleep appeared first on ROI TV.

Using Tax Gain Harvesting to Pay $0 in Taxes
One of the most overlooked strategies in retirement is tax gain harvesting. If you’re in the 0% long-term capital gains bracket $48,350 for singles and $96,700 for married couples in 2025 you can sell appreciated investments and pay zero federal tax. Take Joe Sample, a single retiree. He pulled $15,000 from his IRA, which was offset entirely by the standard deduction. Then he sold $60,000 in stocks from his brokerage account. Because his cost basis was $250,000 and his account was worth $1 million, $15,000 was a return of capital and $45,000 was a taxable gain still under the 0% capital gains threshold. Total tax owed? $0. That’s what smart timing and a little math can do.

Avoiding the Social Security Tax Torpedo
This one sneaks up on retirees. It’s called the Social Security tax torpedo, and it happens when other income like IRA withdrawals increases your provisional income and triggers taxes on your benefits. For example, let’s say you and your spouse receive $50,000 from Social Security and take out $40,000 from your IRA. Your provisional income hits $65,000, and suddenly, $23,850 of your Social Security becomes taxable. That bumps your effective tax rate to over 22%, even though you thought you were in the 12% bracket. It’s not just about how much you withdraw it’s about how all your income sources interact.

Getting Roth Conversions Just Right
Roth conversions are one of the most powerful tools for reducing future tax burdens—but only when done correctly. Consider John and Sally. They have $2.5 million in an IRA, and if they don’t act, their required minimum distributions (RMDs) will push them into higher brackets later. By converting a portion of their IRA now, while staying within the 12% tax bracket, they avoid a larger tax hit in the future. But there’s a catch. If you over-convert like in another scenario where a couple converted too much of a $250,000 IRA at once they faced a six-figure loss in after-tax wealth. The trick is to convert enough to reduce future RMDs, but not so much that you spike your current tax bill.

Why These Strategies Matter
In retirement, tax planning becomes more important not less. It’s not just about how much you’ve saved, but how much you get to keep. Understanding how capital gains, Social Security benefits, and IRA distributions all play together can mean the difference between a comfortable retirement and one filled with surprises. A personalized tax map based on your income, assets, and goals can help you take advantage of the 0% capital gains bracket, minimize the impact of the tax torpedo, and convert your Roth IRA with confidence.

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 Retirement Tax Moves That Could Save You Thousands appeared first on ROI TV.

I’ve seen too many people miss out on key benefits, or worse, get hit with penalties simply because they didn’t fully understand the rules. So let’s break it down: how Roth IRAs work, the rules you need to follow, and how to use them to create a powerful, tax-free retirement strategy.

First, why Roth IRAs are such a big deal.
Unlike traditional retirement accounts, Roth IRAs offer tax-free growth and withdrawals in retirement. That means you don’t pay taxes on the money you pull out later huge for planning your income in retirement. And they’re also great legacy tools, as beneficiaries can inherit Roth assets tax-free.

Now let’s talk about the three sources of money inside a Roth IRA: contributions, conversions, and growth.

• Contributions are the easiest to manage. You can withdraw them at any time, for any reason, tax- and penalty-free—regardless of your age.
• Conversions are a little trickier. Each conversion has its own five-year rule, especially if you’re under age 59.5. More on that in a minute.
• Growth is where the biggest benefits are, but also where the rules get tighter. You can’t access growth tax-free unless you’re over 59.5 and have satisfied the five-year rule.

The five-year rule trips up a lot of people.
Here’s how it works: Your Roth IRA must be open for at least five years before you can take tax-free withdrawals of growth. That five-year clock starts with your first contribution—not each new deposit or account.

So if you opened your first Roth at age 40 and you’re now 60, you’re good to go—even if you’ve opened new Roth accounts since then. But if you opened your first Roth at 58 and want to access growth at 60, you’ll need to wait until 63 to get full tax-free treatment.

Conversions have their own five-year rule—and it resets with each one. Let’s say you make conversions at ages 50, 51, and 52. You can’t touch the money from each conversion until five years after each respective date unless you’re over 59.5 and you’ve met the general five-year rule.

That’s why Roth conversions are better suited for long-term planning. If you’ll need the money in the next few years, it might not make sense to convert.

Contribution limits for 2025 are pretty straightforward:

• $7,000 if you’re under 50
• $8,000 if you’re 50 or older

There’s no limit on conversions, but remember—every dollar you convert is taxed as ordinary income in the year you convert it. If you convert $1 million in a single year, it’s like adding $1 million to your W-2. Be strategic.

How does the IRS track your withdrawals?
They assume you withdraw money in this order:

1. Contributions
2. Conversions
3. Growth

This simplifies things for you. If you’ve got $25,000 in each bucket, the first $25K you pull is always a contribution—tax-free, no matter what.

So what’s the big takeaway?
The Roth IRA is a powerful tool, but only if you understand how to use it. Make sure you know when the five-year rules apply, when conversions make sense, and how to use Roth money for long-term tax-free growth. The longer you let your Roth grow, the more powerful it becomes.

If you play by the rules and plan smartly, a Roth IRA can become one of the most valuable tools in your retirement plan.

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 Unlock the Full Power of Your Roth IRA appeared first on ROI TV.

The Power of Compound Interest and the Rule of 72

We kicked things off by highlighting compound interest, famously referred to by Albert Einstein as the “eighth wonder of the world.” Unlike simple interest, compound interest grows your money exponentially over time by earning interest on both your initial investment and accumulated interest.

They broke down the Rule of 72, a simple formula to estimate how long it takes for an investment to double. Divide 72 by your expected rate of return: a 7% return means your money will double in about 10 years. But at 2%, it takes a staggering 36 years. Clearly, rate of return and time are your biggest allies.

Start Early, Save Consistently

To drive home the importance of starting early, they compared saving $100 a month beginning at age 25 versus age 35. That 10-year head start could result in an additional $100,000 or more in savings over a lifetime thanks to compounding. Even modest annual increases in savings can have a profound impact on retirement outcomes.

Calculating Retirement Spending and the Shortfall

Next, we explained how to calculate retirement needs. Start with your current expenses and adjust for 3% inflation. Subtract expected income like Social Security, then multiply the annual shortfall by 25 to find your target retirement savings. For example, someone expecting $144,000 in annual expenses with $55,000 from Social Security needs to fund an $89,000 shortfall. Multiply by 25, and you get a $2.2 million savings goal.

Understanding the “Retirement Smile”

Spending in retirement isn’t linear. I want to introduce you to the “retirement smile”: higher spending in early retirement (“go-go years”), a dip during the “slow-go” years, and a rise again due to healthcare costs in the “no-go years.” Many retirees spend more in retirement than they expected, making accurate planning crucial.

Applying the 4% Rule

The 4% rule remains a helpful benchmark. If you retire with $1 million, withdrawing $40,000 per year (4%) gives you a strong chance of not outliving your money, assuming a 6% return. However, the duo stressed that withdrawals should be adjusted dynamically based on market performance and personal needs.

When to Claim Social Security

Social Security claiming strategies also play a huge role. Claiming at age 62 could reduce benefits by 30%, while delaying until 70 can boost payments to 124% of your full retirement amount. We suggested evaluating factors like health, income needs, and whether you’re still working when making this decision.

Reevaluating the Rule of 100

The traditional Rule of 100, which suggests subtracting your age from 100 to determine stock allocation, was challenged. They argued that allocation should reflect individual risk tolerance, goals, and legacy plans. For example, a risk-tolerant investor may opt for more stock exposure, while others may want more cash for security.

Tax Planning and Roth IRA Conversions

One of the most actionable strategies they shared was Roth IRA conversions. With tax rates expected to rise in 2026, converting pre-tax retirement funds now could yield massive long-term savings. Converting in lower tax brackets (like 12% or 24%) today helps reduce your required minimum distributions (RMDs) and future tax bills.

Tax Allocation Across Account Types

Understanding how different accounts are taxed is another key strategy. Use tax-deferred accounts (like IRAs) strategically during low-income years, and prioritize Roth IRAs for tax-free growth. Taxable brokerage accounts provide flexibility but may generate capital gains.

Plan for Longevity

With life expectancy on the rise, couples have a 50% chance one partner will live to 92. We emphasized planning for a longer-than-expected life to avoid outliving your money, especially considering rising healthcare costs.

Use the Retirement Readiness Guide

Finally, the team encouraged everyone to download their Retirement Readiness Guide. It’s packed with practical tools to calculate savings targets, plan withdrawals, and optimize investments for a confident retirement.

Bottom line: Retirement success is about more than just saving—it’s about making smart decisions across the board. The earlier you start, the more prepared you’ll be to live your best retired life.

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 The Formula for Retirement appeared first on ROI TV.

Why a Retirement Makeover Matters Now More Than Ever
Inflation, market swings, and increased longevity mean our money needs to stretch further than ever. Just consider this: in 2016, average monthly expenses were around $3,500. By 2021, that number had jumped to $4,500. That’s an extra $12,000 per year! No wonder nearly half of retirees today say they’re spending more than they expected.

That’s why having a clear, documented financial plan is essential. Yet, only 17% of Americans have one in writing. A solid plan keeps you on track and gives you the power to course-correct when life throws surprises your way.

Benchmarks by the Decade
Not sure if you’re on track? Use these savings benchmarks as a rough guide:

• By your 40s: aim for 3x your annual income
• By your 50s: 6x
• By your 60s: 10x

So if you’re earning $100,000 a year, you’d want around $300,000 saved by your 40s and $1 million by retirement. These aren’t hard rules, but they’re great starting points—especially when you factor in Social Security or a pension.

Stress-Test Your Retirement Plan
A financial plan isn’t “set it and forget it.” It needs to work under different assumptions—like higher inflation or lower market returns. We looked at John and Sally, both 57, with $1 million in 401(k)s and $50,000 in cash. Spending $140,000 a year, they ran out of money by age 82. Working longer, spending less, or downsizing their home could change that dramatically.

Avoid the Hidden Costs of Early IRA Withdrawals
Thinking about tapping into your IRA early? Be cautious. Taking $100,000 out before age 59½ could cost you $38,000 in taxes and penalties—especially if you live in a high-tax state like California. That’s money that could’ve grown for decades had it stayed invested.

Streamline and Simplify with Account Consolidation
Multiple 401(k)s and IRAs can make managing your retirement messy. Consolidating accounts not only reduces paperwork and fees but simplifies your required minimum distributions (RMDs) later on. Instead of juggling separate RMDs for each 401(k), you’ll only need to calculate one for all your IRAs.

Don’t Leave Free Money on the Table
If your employer offers a 401(k) match, make sure you’re contributing enough to get the full benefit. Even small increases matter. One example showed how bumping contributions from 2% to 6% boosted savings from $119,000 to $356,000 over time. Ideally, you should aim to save 15–20% of your income, but starting small and building up works too.

Why Roth IRAs Should Be Part of Your Tax Strategy
Most people stash retirement savings in tax-deferred accounts like 401(k)s—but come retirement, those withdrawals are taxed as ordinary income. That’s where Roth IRAs can shine. Contributions are taxed upfront, but qualified withdrawals are completely tax-free. They’re especially great for stocks or high-growth investments.

And here’s the kicker: tax brackets are scheduled to go up in 2026. That makes now a smart time to explore Roth conversions and lock in lower tax rates while you can.

Final Thoughts
If your retirement plan is still a work in progress—or sitting in a drawer gathering dust—it’s time for a financial makeover. Start by setting clear goals. Document your plan. Revisit it regularly. From optimizing tax strategy to stress-testing your portfolio, small adjustments today can make a big difference tomorrow.

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 Retirement Planning Strategies for 2025 appeared first on ROI TV.