Metcalf Money Moment the Podcast

How much money do you need to retire comfortably, and when is the best time to take Social Security? In this episode of the Metcalf Money Moment, hosts Jeb, Ethan, and Eric dive into the key components of retirement planning. They discuss the early retirement dichotomy, how much money you need to retire comfortably, and the complexities of managing retirement accounts. The conversation also explores the crucial decision of when to take Social Security, navigating the often overlooked topic of health insurance in retirement, and concludes with the bottom lines for anyone planning for the future. Whether you're thinking about retiring early or just starting to plan, this episode offers valuable insights for every stage of retirement planning.

IN THIS EPISODE: 

• (00:00) Opening and intro
• (00:49) Retirement planning
• (04:00) How much money do you need to retire
• (09:40) Discussion of retirement accounts
• (16:10) When do I take social security 
• (21:33) What about a health savings account
• (25:25) The bottom line - a final word the steps to take to when planning for retirement 

KEY TAKEAWAYS: 

• To retire early, individuals must address critical factors like how much money they need, when they can access retirement accounts, when to take Social Security, and how to handle health insurance costs before Medicare eligibility at 65.
• Individuals should start planning for Medicare around age 62 or 63, as Medicare uses a two-year income lookback period to determine costs. Proper planning can help manage income levels to optimize Medicare premiums.
• Health Savings Accounts (HSAs) are a valuable tool for covering healthcare expenses in retirement. They offer triple tax advantages, grow tax-free, and can be used for qualified medical expenses, making them a strategic financial asset.

RESOURCES:

Navigating the complexities of health insurance when retiring can be overwhelming, but having the correct information makes all the difference. In this episode of Metcalf Money Moment, host Jeb, Ethan, and Eric sit down with Matt Sturgeon, CEO of LNI Insurance Solutions, and Phil Walters, Director of Medicare at LNI Insurance Solutions, to break it all down. They discuss the key factors retirees need to consider, including determining insurance needs based on income and retirement age, what counts toward modified adjusted gross income, and how to ensure a smooth transition into retirement—especially for those under 65. The conversation also dives into the role of Medicare in health care decisions, the complexities of choosing the right plan, and why consulting an insurance specialist is essential since no two situations are alike. Whether you're retiring early or preparing to transition into Medicare, this episode provides valuable insights to help you make informed decisions about your health insurance coverage.

IN THIS EPISODE: 

• (00:00) Opening
• (02:23) How does  early retirement affect health insurance, and how do we determine insurance needs based on income and retirement age
• (07:05) What income counts towards modified adjusted gross income
• (08:16) Begin your health insurance decisions 6 months before retirement
• (13:07) No two situations of retirement planning are alike. Consult an insurance specialist
• (17:06) Making the switch to Medicare

KEY TAKEAWAYS: 

• Every retiree’s situation is uniquely influenced by age, income, and location factors. Different rules apply to those retiring early (e.g., 55 or 60) compared to those transitioning into Medicare at 65.
• One of the biggest concerns for early retirees is securing affordable health insurance. Options include COBRA, ACA marketplace plans, short-term medical plans, and tax credits, which vary based on income and household makeup.
• Retirees should begin planning at least six months before retirement to ensure a smooth transition. Financial advisors target age 63 for Medicare planning since Medicare considers income from two years prior when determining costs.

RESOURCES:

Navigating the complexities of inheritance can be overwhelming, especially regarding tax implications and estate settlement. In this episode of Metcalf Money Moment, Jeb Graham, Ethan Hutcheson, and Eric Wymore break down key strategies for maximizing inheritance planning, ensuring tax efficiency, and streamlining the estate settlement process. From common mistakes—like cashing out an inherited IRA too soon—to the nuances of annuities, life insurance, and estate taxes, the hosts share valuable insights to help you make informed decisions. Whether planning your estate or preparing to inherit assets, this conversation will help you avoid costly pitfalls and save time and money.

IN THIS EPISODE: 

• [0:54] Inheritance planning starts with preventative care
• [6:30] Necessary documents, financial planning and consulting professionals are key to avoiding estate taxes
• [10:58] Discussion of the best account types to inherit and the 10-year rule
• [15:17] Discussion of the required minimum distribution and other examples
• [18:53] Annuities and life insurance and estate taxes
• [23:50] Contact a knowledgeable professional for proper inheritance and financial planning

KEY TAKEAWAYS: 

• The Great Wealth Transfer Is Underway – Over the next few decades, between $30 trillion and $68 trillion will be transferred from Baby Boomers to their heirs. Approximately 45 million U.S. households will inherit money, with an average inheritance of $177,000.
• Taking proactive steps, such as organizing financial documents, properly titling accounts, and having open discussions with family members, can significantly ease the inheritance process. Establishing clear beneficiary designations, maintaining a list of financial accounts, and planning with estate professionals help avoid unnecessary complications.
• One significant mistake people make when inheriting assets is not promptly informing their financial advisors or tax professionals. While a well-prepared estate plan helps streamline the inheritance process, settling an estate still takes time. 

RESOURCES:

Welcome to Metcalf Money Moment, where hosts Jeb Graham, Ethan Hutcheson, and Eric Wymore welcome Erik Rome from Sage Law to discuss the ins and outs of estate planning. In this episode, Erik dives into key aspects of managing an estate, from avoiding probate and understanding the role of wills to the complexities of trusts, durable power of attorney, and healthcare directives. They also explore the importance of appointing the correct individuals in your planning—whether a family member or a corporate trustee—and why reviewing your estate plan regularly is crucial. Tune in as Erik shares practical advice on ensuring your estate is in good hands, and your wishes are carried out seamlessly.

IN THIS EPISODE:

• [2:42] Erik defines probate, how to avoid it, and what the will controls
• [6:56] Trusts and why they are created
• [12:03] Discussion of trusts, durable power of attorney, healthcare directives and involving the children in the planning
• [17:29] Conflicts of interest and do you need a corporate trustee, and how often should you review your estate plan
• [23:03] Reviewing an older estate plan

KEY TAKEAWAYS: 

• A will only dictates how assets that go through probate are distributed. Suppose you have designated beneficiaries or joint owners on assets (like bank accounts or property). In that case, assets bypass the will and probate, meaning the will won’t impact how those assets are handled.
• To avoid probate, you can use joint ownership (e.g., with a spouse), beneficiary designations (for accounts or life insurance), or a revocable trust. Properly titling assets and ensuring beneficiaries are in place for all relevant accounts is key to avoiding the lengthy and costly probate process.
• One common mistake families make is appointing individuals to roles like trustees or executors based on birth order or profession rather than considering whether the person has the right temperament and qualifications for the job. This can lead to conflicts or mishandling of estate matters. 

RESOURCES:

Hosts Jeb Graham, Ethan Hutcheson, and Eric Wymore dive into why starting your financial planning early in the year is essential for achieving long-term success. In this episode, they explore critical strategies like maximizing retirement account contributions, understanding tax law changes for 2024, and consolidating 401(k) accounts for a streamlined approach. They also break down the benefits of 529 college savings plans, the importance of harvesting tax gains or losses, and key insights into managing stock options and restricted stock units. Whether you’re planning for retirement, considering a Roth conversion, or optimizing your tax strategies, this episode is packed with actionable tips to help you make the most of your financial opportunities all year long.

IN THIS EPISODE:

• (:54)Start your financial planning early in the year
• (2:17) Discussion of IRA contributions and tax law changes for 401ks and consolidation of 401k accounts if needed
• (7:42) Tax breaks for a college education with a 529 Savings Plan and discussion of Harvesting Tax Gains or Losses
• (12:45) Discussion of stock options and restricted stock units
• (16:22) Discussion of the distribution phase and a Roth conversion
• (22:38) Planning for retirement  

KEY TAKEAWAYS: 

• January is the ideal time to review and plan financial strategies, including maxing out retirement account contributions and deciding on charitable donations. Early planning allows for a more balanced and practical approach throughout the year, avoiding last-minute decisions that can feel rushed or incomplete.
• The maximum 401(k) contribution for 2024 is $23,500, with an additional $7,500 for those over 50. From ages 60 to 63, the catch-up contribution rises to $11,250, offering a unique opportunity to boost retirement savings during those years.

The contribution limits for Roth IRAs and traditional IRAs remain at $7,000, with a $1,000 catch-up for those 50 and older.

• Consider tax-loss harvesting to offset capital gains and reduce taxable income while maintaining long-term investment goals. For corporate employees with stock options or restricted stock units, plan strategically to manage taxes and avoid over-concentration in company stock. Diversifying these assets can improve portfolio balance and risk management.

RESOURCES: