Keen On Retirement

Happy 2025! At Keen Wealth, we're often of two minds at the beginning of the New Year. On the one hand, Tax Day is just around the corner, so we're helping folks put a bow on last year's financials and making sure they not missing out on any potentially advantageous moves. But this New Year also means a new president, a new congress, new laws, new facts and figures, and lots of new legislative proposals. On today's show, we discuss some important changes coming to Social Security and retirement accounts in 2025, as well as the items that could be at the top of President-elect Trump's economic agenda.

The joy that we all feel checking off our holiday shopping lists, wrapping gifts, and exchanging presents with loved ones is often accompanied by another feeling: anxiety. Not just from the stress of getting everything done before the parties start, but from worries around money that can pile up this time of year. Some folks just can't look at a pile of presents without seeing price tags -- especially if money is a little tight this year or they're still adjusting to living off a fixed income in retirement. Worse, that anxiety might make you feel like you're doing the holidays "wrong," letting things that don't really matter keep you from enjoying the things that do. But, as we discussed on a recent podcast, finding the right balance between generosity, personal fulfillment, and long-term financial security is an ongoing part of just about every financial plan. Holiday gift-giving just makes us experience that tug-of-war in a more heightened, time-bound way. And if you can use these three strategies to control your holiday giving this year, you can establish a strong foundation for sustained giving going forward.

"Sam" is 58 and he retired at the end of the first quarter of 2024. His wife, "Alice," is 65 and still working as a paid caretaker for the couple's son with special needs. Sam has $400,000 in a Roth IRA, $2 million in a traditional IRA and they have $400,000 in a joint taxable account. In 2024, Sam earned $75,000 and Alice earned $20,000. And, like so many couples in their age range, Sam and Alice want to know if their nest egg is ready to support them as they prepare for retirement. On today's show, we use Keen Wealth's comprehensive planning process to help "Sam and Alice" analyze their financial situation and identify some key decisions they'll need to make to keep their money and their lives in sync.

If there's one thing we know that the financial markets like, it's certainty. And since the 2024 presidential election was settled overnight -- rather than the weeks it took to count votes in 2020 -- the markets have reacted to the certainty of our new political reality with very strong returns. But as Donald Trump prepares to return to the White House, there are still many lingering questions about how the economic vision he laid out on the campaign trail will or won't materialize. On today's show, we explore some of President-elect Trump’s policy proposals and how they could affect your retirement planning.

At Keen Wealth, we often describe tax-planning as an ongoing process, not just something we help folks accomplish every spring. And while Tax Day is certainly circled in red on our annual planning calendars, the end of the year is also an important deadline for some moves that could lower your tax bill. On today's show, we discuss three financial strategies that you and your advisor should consider before December 31st. Please note that we recorded this episode before Election Day. We'll give you our thoughts on how the new U.S. political environment could affect your financial planning in the weeks ahead.

The idea that retirees can live off Social Security alone is a bit of a holdover from the old "automatic retirement at 65" days. For the most part, your parents and grandparents weren't thinking about 30 or 40-year retirements, active living into their 70s or 80s, or cycling in and out of the workforce to pursue new challenges and passions. Most -- but not all -- of today's retirees would have a hard time relying solely on their Social Security benefits to cover monthly expenses, especially in the later stages of retirement when health care costs tend to spike. However, just because Social Security has a different place in the retirement equation than it once did, that doesn't mean your benefits aren't still incredibly valuable! If you work hard and plan ahead with your financial advisor, you can utilize these five strategies to boost your benefits, pad your nest egg, and hopefully feel a little more secure about your retirement spending plan.