Keen On Retirement

Between the 24/7 news cycle and the two-year election cycle of our government system, I'm sure I'm not the only one who feels like our country is in a permanent state of campaigning. And that means some folks who do follow politics and their investments closely are often hearing our leaders talk about tax policy every time they turn on the news. However, it's very important to distinguish between what candidates propose on the campaign trail, what's being debated in Congress, and what actually has a chance of becoming law. On today's show, we separate the facts and the fiction from sound bites on capital gains taxes that you might have heard in recent weeks -- and that you're likely to hear a lot more as we head into the final month of the 2024 campaign.

Most retirees know that, once they turn 73 (if born after 1950), they are required by law to take required minimum distributions (RMDs) from their retirement accounts. But in financial planning, nothing is ever quite that simple. In the past several years, the rules around RMDs have changed in very significant ways. Those changes, other rules around how and when RMDs occur, and changes to the very nature of retirement create complex planning scenarios that affect all retirees in very different ways. To maximize your nest egg, make sure you discuss these lesser-known facts about RMDs with your financial advisor:

Social Security can be one of the most flexible tools in your retirement toolkit. Some seniors will depend on it. Some will use it to achieve or even upgrade bucket list goals. Some might treat it as an additional investable asset. And others might make their survivor's benefits a central part of their estate planning. But I think all seniors will agree that no one wants their Social Security benefits to trigger unwelcome surprises at tax time. As you're weighing when to take Social Security and how to use your benefits, discuss these four topics with your financial advisor. You may have several options to lower your tax liability and maximize the value of your benefits to your comprehensive financial plan.

Most of us try to help our loved ones whenever we can and however we can. But when that "help" is money, our best intentions can turn bad very quickly. As uncomfortable as it may feel, if you don't integrate giving and lending into your overall financial plan, you're not just potentially enabling poor financial habits -- you could be jeopardizing your retirement. On today's show, we discuss five keys to lending money to loved ones that will help you preserve both your nest egg and your dearest relationships.

You should delay taking Social Security until you reach age 70. Unless, of course, you shouldn't. Or can't. Yes, my team at Keen Wealth generally advises folks to delay their benefits as long as possible so that those checks will, eventually, be bigger. But, like just about every detail of your comprehensive financial plan, timing your Social Security benefits is a complicated decision that depends on your unique situation and your specific goals for retirement. On today's show, we discuss some questions we typically ask folks who are considering taking their Social Security benefits as soon as they are eligible at age 62.

Early retirement is a goal that's become a very common plot point in the comprehensive financial plans we put together at Keen Wealth. Young Boomers and older Gen Xers who have the means to stop working or downshift into part-time employment want to enjoy the wealth they've worked so hard for while they're still young enough and able-bodied enough to play their favorite sports, see the world, and spend more quality time with family and friends. But there's much more to early retirement than just hitting a number. Several aspects of your financial plan should be fine-tuned and coordinated to ensure that your nest egg supports today's goals while also ensuring your long-term security in the latter years of retirement. Let's take a look at Keen Wealth's five-point checklist for retiring at 55.