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Welcome to How to Retire on Time, a show that answers your questions about all things retirement, including income, taxes, Social Security, healthcare, and more. This show is an extension of the book How to Retire on Time, which you can grab today on Amazon or by going to www.howtoretireontime.com.
This show is intended for those within 10 years of their target retirement date or for those are are currently retired and are concerned about their ability to stay retired.
Welcome to How to Retire on Time, a show that answers your questions about all things retirement, including income, taxes, Social Security, health care, and more. This show is an extension of the book, How to Retire on Time, which you can grab today on Amazon or go to www.how to retire on time.com. My name is Mike Decker. I'm the author of the book, How to Retire on Time, but I'm also a licensed financial adviser, insurance agent, and tax professional, which means when it comes to financial topics, we can pretty much discuss it all. Now that said, please remember this is just a show.
Mike:Everything you hear should be considered informational, as in not financial advice. If you want personal financial advice, well, just request your wealth analysis today from my team by going to www.yourwealthanalysis.com. With me in the studio today is mister David Fransen. David, thank you for being here today. Yeah.
Mike:You're welcome. Now David will be reading your questions, which you have submitted, and I'll do my best to answer them. You can send your questions in right now or anytime during the week. Just save this number. Save it right now.
Mike:913-363-1234. That's 913-363-1234. Or you can email them to heymike@howtoreontime.com. Let's begin.
David:Hey, Mike.
David:How often should a person review and rebalance their portfolio? Yeah. That's a great question depending on the strategies. I I do know all advisers are different. So we'll make this one quick and simple.
Mike:Okay. K? I don't wanna disparage anyone, but all advisers are different. And it's really gonna depend on what they're selling. So if an adviser is selling you an annuity, they'll probably sell it to you, and then they don't really have a reason to talk to you until you wanna turn it on.
Mike:So they might not really contact you as much. I'm assuming a lot here. I recognize there's always exceptions to the rules. Sure. If they're managing a portfolio that's really intended just to grow, they might not really have a lot of conversations with you either.
Mike:It's just, yeah, my job is to grow your assets, and and if you have a question, let me know. Some people take a more holistic approach to things, and they do want a relationship check-in. But sometimes it's just a relationship check-in. Has anything changed? Do we need to adjust anything?
Mike:And so on. Here's what I believe should happen. I believe that we should follow systems, not sentiment. So you do the plan first, put the systems in place, the strategies in place, and then fund the portfolio to fulfill those strategies and and ultimately support the plan. And then every year, I believe there should be a review after tax season to see if there needs to be a rebalance or adjustment based on the tax planning and how it's affecting your your 1040, essentially.
Mike:1040 is the scorecard when it comes to taxes. I believe there should be another review towards the end of the year to discuss and implement income planning, tax planning, which are connected by the way, health care planning, Medicare sign ups, and all that as well, legacy planning, so updates on the estate plan, beneficiaries, adjustments, have relationships changed, and so on, a potential portfolio rebalance or adjustment as well. Hey. I'm concerned about the market. Can we maybe put a little bit more into a more conservative model or or a couple of CDs or things like that.
Mike:That's okay. But you want to have those conversations proactively. A general overview of how your lifestyle has evolved. Do you have more needs? Do you have less needs?
Mike:What does that look like? Gifting, towards the end of the year, you might be more inclined to gift, and so on. And so if you want a gift, you can gift more than the gift taxing limit. Many people don't know this, but you can take your estate exemption and gift part of it now instead of waiting till you die to get the exemption. It's, I think, form 709.
Mike:I I I often forget which form it is until it's tax season, then I remember it. But, but, yeah, you could help your kids now when they're more in need than, you know, give them the legacy when they probably don't need it as much. Yeah. And that's a general theme right now is it's really hard for people to get into a house. If you can help your kids get in the house now, it would probably do more service to them than anything else you could do.
David:Yeah. That makes sense.
Mike:And so on. But I believe at least twice a year that you're meeting very deliberately proactively planning and making fine tweaks and adjustments more than just a rebalance of a portfolio, but really to rebalance things based on the overarching strategies, the tools that you're using, and as the different investments and products have evolved as well. I also believe that you should have the kind of relationship to where if you're make gonna make a big decision about money, hey, I need to put a new roof on my house.
Mike:Hey, I need to buy a new car. That you're talking with your adviser to understand where to pull the funds from so you don't create tax inefficiencies or potential problems that you maybe didn't think about. This is the classic example of someone that goes on vacation. It's a larger sum, and then they pull out some money from their IRA to pay off the credit card bill because that's where the funds were. They didn't tell anyone, and that small distribution from the IRA either triggered long term capital gains, which took them to a 0% bracket to a 15% tax bracket on all of their long term capital gains.
Mike:That's a huge tax bill. Sometimes it pushes them over the limit on Social Security tax planning for those that could do that and and more. You've got to have this open relationship that is at least collaborative in some sense to not only look at rebalancing, but understand how to get more out of your money, how to be more efficient and effective with your money. And if you wanna have that conversation or see what that could look like, text analysis right now to 913-363-1234. Again, that's analysis to 913-363-1234, or go to www dot yourwealthanalysis.com today.
Mike:That's all the time we've got for the show today. If you enjoyed the show, consider subscribing to it wherever you get your podcast. Just search for how to retire on time. Discover if your portfolio is built to weather flat market cycles or if you're missing tax minimization opportunities that you may not even know exist. Explore strategies that may be able to help you lower your overall risk while potentially increasing your overall growth and lifestyle flexibility.
Mike:This is not your ordinary financial analysis. Learn more about Your Wealth Analysis and what it could do for you regardless of your age, asset, or target retirement date. Go to www.yourwealthanalysis.com today to learn more and get started.