Keen On Retirement

What's your earliest memory about money? For me, it's the anxiety I felt as a boy, sitting in my father's apartment, waiting for his unemployment check to hit our mailbox. He suffered at times from anxiety and depression, which wasn't understood very well back then, so steady work was always a challenge for him. I remember buying him lunch at a malt shop once I started working -- not because I was trying to show how grown up, I was, but because we really needed the five dollars.  Those formative experiences drove me to a career that taught me how to take care of my own finances and help other people do the same. After nearly 30 years in financial services, I'm positive that there's a real connection between money memories, good financial habits, and mental health that influences our relationships, our emotions, our careers, and our progress towards a safe and secure retirement. To help me explore these important intersections, I'm thrilled to welcome Dr. Megan McCoy to today's episode. Dr. McCoy is a licensed

Market volatility. Inflation. Supply chain issues. Midterm primaries. War. Record gas prices. Rising COVID cases.  There's a little something to make everyone nervous about our global economic picture right now. That's why I thought it was important to devote another episode of our podcast to answering some of the questions that we've been fielding at Keen Wealth.  I hope that our perspective on these important issues will provide counterbalance to some of the headlines you might be seeing on social media and cable news. That's not to say everything is rosy right now in our economy. But if you step back and take in the whole picture, there are some positive indicators flying slightly under the radar and, potentially, some opportunities that could be advantageous for your long-term financial planning. 

Whether you're an early retiree or a senior in the more traditional 65+ age range, my team at Keen Wealth understands that you have questions about navigating this major life transition. But, as we discuss on today's episode, very few retirement questions have simple answers. Arriving at the best decisions for you, your family, and your money is rarely as easy as following a rule of thumb or crunching your numbers one more time. A financial plan should be designed to provide for every aspect of your life. And as your life changes, a good plan should be ready to change with it. Let's dig into some listener questions and examine where general planning principles meet the personalized, comprehensive planning process we use at Keen Wealth.

Last month, our leaders in Washington did something that felt almost unprecedented nowadays: they agreed on something! The Sunshine Protection Act passed the Senate unanimously. If it gets passed by the House and signed by President Biden, turning our clocks back and forth will be a thing of the past and daylight savings time will be permanent starting in 2023.  All kidding aside, there is a slightly more pressing issue that's drawn broad bipartisan support in recent years: revamping retirement planning. In 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act passed the House 417–3 and the Senate 71–23. Its pending sequel, the Securing a Strong Retirement Act, aka SECURE Act 2.0, just passed 414-5 in the House. Those majorities should tell you just how serious the government is about encouraging folks to take more ownership over their long-term financial planning.  On today's show, we (briefly) debate the pros and cons of leaving our clocks alone before digging into the details of SECU

A common talking point when we're having our internal team meetings at Keen Wealth is that we want our clients to be confidently living their best lives. I believe that if you don't have that confidence at every stage of your life, particularly in retirement, then there's something off about your financial plan. Often, folks who go it alone overlook some key technical factors that a professional advisor would have been able to help them address. But there's also an emotional side to financial planning that can be much more important than any number in your portfolio. Folks who don't work to understand their feelings about money might not necessarily be setting themselves up to fail. But they could be missing out on ways to optimize their plans, their money, and their lives. On today's episode, we discuss why some financial plans fail and how working with an advisor who cares about more than just your money can help.

Effective financial planning is all about looking ahead. That's true for both people who are working towards retirement, and for my team at Keen Wealth. I believe that our ongoing commitment to educational events, learning, and professional development is essential to the work we do for our clients. And as the founder and CEO, I'm also committed to growing Keen Wealth into a firm folks can trust and count on today, tomorrow, and into the next generation.  On today's show, I discuss some takeaways from the 2022 Barron's Independent Summit in Louisville, as well as a glimpse into the future of Keen Wealth with our Chief Investment Officer and President, Matt Wilson. 

None of us can control a war, inflationary concerns, natural disasters, or market volatility. If you're worrying about how global events are going to affect your financial plan, try to focus on things you can control. As we discuss on today's show, right now that means efficient tax preparation so that you avoid some common filing mistakes before Tax Day on April 18th.

Talking about a personal investment plan against the backdrop of a major crisis may not seem appropriate. Obviously, the situation in Ukraine right now and the suffering of its people transcend the issues we usually discuss on our podcast. But the reality is that understanding how the markets react to geopolitical issues is part of being a responsible investor, especially as the battlefield expands into the economic arena in unprecedented ways. I hope that today's episode will give folks some important perspective on these issues even as we're all mindful of the larger stakes.

As I mentioned in a recent blog post, more than half of U.S. adults aged 55 and above are now retired. Obviously that figure includes seniors in the more traditional age range of 65-70 years old. But what about folks at the lower end of that statistic? Some of these retirements might be temporary responses to pandemic safety concerns, burnout, or a transition to a new career. Others will be full early retirements for folks who want to get a jump start on their not-quite Golden Years.  Whatever the plan may be, retirement before age 59 1/2 can pose some significant cash flow challenges for folks who need early access to their IRAs and 401(k)s. On today's show, we discuss how incorporating IRS code 72(t) into a financial plan can help. 

Health care is one of the most important aspects of planning for an early retirement. Medicare eligibility doesn't kick in until you reach age 65. Pre-65 retirees who don't have access to employer-subsidized health insurance could be facing some substantial costs for a number of years until they are eligible for Medicare. On today's show, we discuss the various health care options for pre-65 retirees and how those options can affect the rest of your long-term retirement planning.

As divided as Americans may be about a whole bunch of issues, it's heartening to see that we do still agree on the importance of giving back. According to recent reports, as America faced some of its toughest challenges ever in 2020, charitable giving rose 5.1% to a record $471.44 billion. That number is really remarkable when you think about how hard the pandemic hit so many individuals and businesses in their wallets. Add in the stress and uncertainty we were all dealing with and it's clear Americans really went out of their way to help important causes and communities in need. That big boost in giving could also be a positive long-term trend, as many experts had worried that recent changes to tax laws might disincentivize charitable giving. As we discuss on today's show, effective giving plans for the year ahead should account for those changes while weighing some important options for doing the most good.

We're barely a week into the New Year, but I'll bet plenty of folks are already struggling with the resolutions they felt so excited about back in December. In fact, many people have given up already! According to some studies, 25% of resolutions fail after just a week. After 6 months, less than half of resolutions are still active. A common theme in my reading on this topic is that most resolutions fail because they aren't specific or meaningful enough. On today's show, we discuss why 2022 should be the year you stop making resolutions and start making action plans to hit your top goals -- especially financial ones.

For the second year in a row, we decided that it would be prudent to hold our Holiday Market Outlook virtually. And while we're disappointed that we can't share the fellowship of our breakfast event with you, please know how grateful the Keen Wealth team is for the privilege of serving as your financial advisor. It's a very big deal to us when a client entrusts us with their life savings, and we take that responsibility very seriously.  While we can't serve breakfast this year, we can present another favorite holiday tradition: the annual Market Outlook Presentation from Matt Wilson, President and Chief Investment Officer at Keen Wealth Advisors. Some of the topics that Matt covers include: Forecast for 2022 Inflation vs. Reflation Markets and the Wall of Worry The importance of the consumer Stay tuned after Matt’s presentation for some holiday cheer from The Dickens Carolers.

As my team at Keen Wealth Advisors starts looking ahead to 2022, there are things we know, and things we don't know. On the one hand, year-end announcements from the Social Security Administration, the IRS, and the Centers for Medicare and Medicaid Services have allowed us to start making some more detailed projections as we prepare for the year ahead. But with a new COVID-19 variant circulating, inflation on the rise, and legislation still under debate in Washington that could affect taxes and retirement accounts, we have to maintain flexibility as well. As we discuss on today’s show, history tells us that financial planning requires a delicate balance between making the most out of the present and laying the groundwork for success in the future.

When "Sopranos" star James Gandolfini died in 2013, he left behind an estate worth $70 million. The musician Prince died in 2016, and earlier this year, the IRS valued his estate at over $160 million. Michael Jackson was worth $500 million when he died in 2009. Aretha Franklin's estate was worth as much as $80 million when she died in 2018. And despite the ample resources available to each of these superstars, errors in estate planning basics prevented a smooth and orderly transfer of wealth to their intended heirs. On today's show, we discuss how to prevent your own estate from getting tangled in red tape and bad blood.

Pop quiz: What do Black Tuesday 1929 and Black Monday 1987 have in common? They both happened in October. That's probably a big reason why October has a reputation for being the worst month for investing. But as we discuss on today's show, digging into the numbers and taking in the broader historical perspective reveals some more important lessons for investors who get spooked by volatility. We also bring that same long-term perspective to a couple questions our Keen Wealth clients have been asking recently.

Do budget deficits matter to the health of the U.S. government and economy? That's been a hot topic of conversation among economists, especially as debate raged about the most effective way for the government to support folks during the pandemic. And it's been a topic that's popped up on a few of our Keen on Retirement episodes and blogs as well. But while ideas like modern monetary theory are ... well, just theories right now, the battles in Congress over the federal debt ceiling and President Biden's Build Back Better Plan are going to have some real-world consequences before the end of the year. So, on today's show, we address some of the questions that we have received about federal debt, inflation, market volatility, and long-term retirement planning.

One reason we advise our clients not to overreact to election results is that the plans candidates propose on the campaign trail often look very different once they've worked through the U.S. lawmaking process. President Biden's agenda has struggled with that very reality in recent weeks. As Congress continues to debate and negotiate the Build Back Better Plan, perhaps the central topic of discussion has been balancing ambitious spending with changes to tax codes that would be necessary to pay for that spending. We wanted to devote today's show to answering some of the questions that our clients have been asking about the Build Back Better Plan and their own tax planning. Rather than leaning one way or the other politically, our discussion stays centered on the numbers and potential rule changes that could affect retirees -- particularly high earners.

It's that time again! Every year, during the open enrollment period from October 15th through December 7th, we recommend that all seniors review their Medicare coverage and see what new options might be available to them. It's also extremely important that new retirees who are signing up for Medicare for the first time get a handle on the ABCDs of Medicare, as well as the things that Medicare does and doesn't cover. On today's show, we prepare you for Medicare Season 2021 and discuss some key aspects of your health care coverage that you'll want to investigate before open enrollment ends.

According to a recent study by Fidelity, a 65-year-old couple retiring today will need $300,000 to cover their medical expenses. Unfortunately, that eye-watering number only includes insurance premiums, deductibles, and copays. If you or your spouse need long-term care, which isn't covered by Medicare, your health care costs could end up putting a serious crack in your nest egg. Now, I don't say that to scare anyone. The point of our conversation on today's episode is to underline just how important it is for seniors to understand what the potential out-of-pocket costs of long-term care can be, what kinds of long-term care insurance options are available, and how to incorporate your health care needs into your financial planning.