The Year You Retire

Do I Have to Pay Taxes on My Social Security Income?

Join hosts John Bever and Jim Uren in episode 17 of The Year You Retire podcast as they tackle the crucial question: "Do I have to pay taxes on my Social Security income?" This episode dives deep into the intricacies of how the IRS handles Social Security in retirement, offering valuable insights on how to minimize or even eliminate these taxes. The duo also sheds light on the infamous "Social Security tax torpedo," explaining how it can significantly impact your tax bill and what you can do to avoid it. Listen in for practical advice, historical trivia, and key strategies to navigate Social Security taxation and help get the most out of your Social Security income. Don’t miss the final episode of season one as John and Jim prepare for an exciting season two with more relevant and helpful information for your retirement planning journey. In this episode, you will… ·       Learn to Maximize Your Retirement Income by Understanding Social Security Taxation. ·       Discover How to Navigate the Social Security Tax Torpedo and Keep More Money in Your Pocket. ·       Learn Effective Strategies to Help Minimize Taxes and Get More Out of Your Retirement Nest Egg. ·       Understand How Provisional Income Impacts Your Social Security Tax Bill in Retirement. ·       Discover the Potential Benefits of Delaying Social Security Benefits to Help Manage Your Taxes. The key moments in this episode are: 00:00:05 - Introduction to the Year You Retire Podcast 00:00:52 - Taxation of Social Security Income 00:01:09 - Understanding the Social Security Tax Torpedo 00:06:11 - Provisional Income and Tax Thresholds 00:12:10 - Observations and Planning Opportunities 00:15:35 - Understanding the Tax Code 00:16:54 - Tax Brackets and Marginal Tax Rate 00:18:07 – More on the Tax Torpedo 00:21:05 - Strategies to Minimize Taxes 00:27:43 - Gratitude Segment 00:30:39 - Accessing Show Notes and Transcripts 00:30:53 - Conclusion and Disclaimer Disclosure: The views expressed in this podcast are not necessarily the opinions of Phase 3 Advisory Services or Osaic Wealth, Inc. and should not be construed directly or indirectly as an offer to buy or sell any securities or services mentioned herein. Unless otherwise specified, show guests are not securities licensed or affiliated with Phase 3 Advisory Services or Osaic Wealth.  Investing is subject to risks, including loss of principal invested. Past performance is not a guarantee of future results. No strategy can assure profit nor protect against loss. Please note that individual situations can vary. Therefore, the information should only be relied upon when coordinated with individual professional advice.  Securities offered through Osaic Wealth, Inc. member FINRA/SIPC. Additional investment. and insurance advisory services offered through Phase 3 Advisory Services Limited, a Registered Investment Advisor. Osaic Wealth is separately owned and other entities and or marketing names, products or services referenced here are independent of Osaic Wealth. Phase 3 Advisory Services is located at 1110 West Lake Cook Road, Suite 265 in Buffalo Grove, Illinois 60089. Our phone number is 847-520-5545. For additional information, visit our website at phase3advisory.com.

Reduce Your RMD Tax Hit: Essential Tips for Retirees

Are you feeling lost with the new required minimum distribution (RMD) rules for IRAs and qualified retirement plans? Do you know when you have to start taking your RMDs and how much you need to withdrawal? Do you want to discover strategies to reduce your taxes on these distributions? Tune in to this episode for clear explanations and actionable advice! We'll cover the essentials of RMD regulations, how to navigate your lifetime income tax brackets, the impact of the Social Security tax torpedo, and smart ways to minimize your lifetime income taxes. Plus, we’ll reveal our top recommendation for reducing taxes on your RMDs. Join CERTIFIED FINANCIAL PLANNER™ professionals, John Bever and Jim Uren, as they unpack these critical topics and share their best tips for maximizing your retirement savings. Don’t miss out on learning how to disinherit Uncle Sam and keep more of your hard-earned money! In this episode you will: ·       Master the basics of the new RMD requirements so you don’t get hit with costly penalties from the IRS. ·       Maximize your retirement income by learning effective strategies to help reduce the taxes on your annual RMDs. ·       Discover how to manage different tax brackets over your lifetime to help reduce your lifetime income tax costs.  ·       Explore the potential benefits of Roth IRA conversions and how they may be able to optimize your retirement income while minimizing taxes. ·       Uncover the impact of Social Security on RMD taxation and how to navigate this aspect of retirement planning. ·       Gain insights on planning for inherited IRAs and taxes to ensure a smooth transition for your beneficiaries. The key moments in this episode are: 00:00:42 – Updates on the latest RMD Rules 00:03:10 - Understanding RMD Calculation Methods 00:08:02 - Optimizing RMDs for Tax Planning 00:14:01 - Strategies to Reduce Lifetime Taxes on RMDs 00:17:00 - Utilizing QCDs for Charitable Giving 00:18:51 - Delaying RMDs with QLACs 00:20:06 - Power of Roth Conversions 00:25:15 - Strategies for Inherited IRAs 00:27:57 - RMD Pitfalls to Avoid 00:29:27 - Planning for RMDs 00:30:41 - Optimizing Lifetime Tax Brackets 00:31:44 - Topic for the Next Podcast Episode 00:32:45 - Gratitude and Appreciation Disclosure:  The views expressed in this podcast are not necessarily the opinions of Phase 3 Advisory Services or Osaic Wealth, Inc. and should not be construed directly or indirectly as an offer to buy or sell any securities or services mentioned herein. Unless otherwise specified, show guests are not securities licensed or affiliated with Phase 3 Advisory Services or Osaic Wealth.   Investing is subject to risks, including loss of principal invested. Past performance is not a guarantee of future results. No strategy can assure profit nor protect against loss. Please note that individual situations can vary. Therefore, the information should only be relied upon when coordinated with individual professional advice.   Securities offered through Osaic Wealth, Inc. member FINRA/SIPC. Additional investment. and insurance advisory services offered through Phase 3 Advisory Services Limited, a Registered Investment Advisor. Osaic Wealth is separately owned and other entities and or marketing names, products or services referenced here are independent of Osaic Wealth. Phase 3 Advisory Services is located at 1110 West Lake Cook Road, Suite 265 in Buffalo Grove, Illinois 60089. Our phone number is 847-520-5545. For additional information, visit our website at phase3advisory.com.

Should I Pay Off My Mortgage Before I Retire?

Did you know that paying off your mortgage before you retire might not always be your best move? In this episode of The Year You Retire, Jim Uren and John Bever delve into the hot topic of whether to pay off your mortgage before retiring. They discuss the advantages of being mortgage-free, such as potential interest savings and improved cash flow, but also emphasize the liquidity risk and misunderstood historical fears associated with mortgages. They discuss the importance of considering individual financial goals, risk tolerance, and overall liquidity when making this decision. They also touch on the tax advantage of having a mortgage and strategies for paying off mortgages early. If you want to be better prepared for the year you retire, this episode provides valuable insights into the considerations individuals should weigh when deciding whether to pay off their mortgage. Remember, there's no one-size-fits-all answer and your own circumstances should be carefully evaluated. If you're nearing retirement and own a home, this episode offers valuable insight into the decisions that lie ahead.  In this episode, you will: * Learn the unusual perks of mortgage in the U.S. compared to other countries. * Discover the pros and cons of an early mortgage payoff. * Learn the potential tax advantages of keeping your mortgage in place. * Explore effective strategies if you choose to pay off your mortgage early. * Learn the personality type that might be best suited to a 15-year mortgage. The key moments in this episode are: 00:00:42 – Topic Introduction 00:04:37 - Pros and Cons of Paying Off Your Mortgage Early 00:07:41 - Impact on Portfolio and Sequence of Return Risk 00:10:55 - Historical Fear of Mortgages and Current Market Conditions 00:15:19 - Importance of Liquidity and Unexpected Expenses 00:19:32 - Tax Implications of Paying Off Mortgage 00:21:09 - Factors to Consider in Paying Off Mortgage 00:23:48 - Ways to Pay Off Mortgage Early 00:25:55 - Final Tips and Considerations 00:27:50 – Coming Up on Our Next Episode Disclosure: The views expressed in this podcast are not necessarily the opinions of Phase 3 Advisory Services or Osaic Wealth, Inc. and should not be construed directly or indirectly as an offer to buy or sell any securities or services mentioned herein. Unless otherwise specified, show guests are not securities licensed or affiliated with Phase 3 Advisory Services or Osaic Wealth.  Investing is subject to risks, including loss of principal invested. Past performance is not a guarantee of future results. No strategy can assure profit nor protect against loss. Please note that individual situations can vary. Therefore, the information should only be relied upon when coordinated with individual professional advice.  Securities offered through Osaic Wealth, Inc. member FINRA/SIPC. Additional investment. and insurance advisory services offered through Phase 3 Advisory Services Limited, a Registered Investment Advisor. Osaic Wealth is separately owned and other entities and or marketing names, products or services referenced here are independent of Osaic Wealth. Phase 3 Advisory Services is located at 1110 West Lake Cook Road, Suite 265 in Buffalo Grove, Illinois 60089. Our phone number is 847-520-5545. For additional information, visit our website at phase3advisory.com.

How to Save Big on Your Capital Gains Tax Bill

Did you know that your retirement years are often accompanied by large capital gains tax bills? Do you know if you have the proper strategies in place to help reduce the damage that capital gains taxes can have on your portfolio? If you’re not sure you’re doing all you can to save big on your capital gains tax bill, then this episode is for you. In this eye-opening episode of The Year You Retire podcast, hosts John Bever and Jim Uren delve into the intricacies of capital gains taxes and the strategies you can use to help to minimize their impact. They discuss the definition of capital gains, the difference between long and short term gains, how capital gains are taxed, and the steps you can take to help reduce your annual tax bill. John and Jim’s actionable insights and friendly demeanor will give you a deeper understanding of how to manage taxes in retirement and allow you to make better informed financial decisions along the way. In this episode, you will be able to: * Uncover the workings of capital gains in the U.S. tax system and how to determine the potential size of your tax bill. * Discover smart strategies to help minimize capital gains tax and keep more of your investment profits. * Understand how the type of investment account and the type of investment asset can change the amount of your tax bill. * Learn about the benefits of tax loss harvesting and how it can optimize your retirement portfolio. * Discover how charitable giving may be able to eliminate the capital gains tax on certain assets. * Understand income tax brackets and how to leverage them to help minimize your retirement tax liabilities. The key moments in this episode are: 00:00:42 – Introduction to Capital Gains Taxes 00:02:29 - History of Income Tax in the US 00:08:17 – Realized vs. Unrealized Gains and Losses 00:11:54 - Long Term Capital Gains Tax Rates 00:15:19 - Understanding MAGI (Modified Adjusted Gross Income) 00:17:02 - Strategies to Avoid Capital Gains Tax 00:21:18 - Special Rules for Different Assets 00:25:08 - Key Strategies for Reducing Long-Term Capital Gain Taxes 00:29:43 – Episode Conclusion and Hosts’ Gratitudes 00:31:16 – Disclosure and Disclaimer Information Disclosure: The views expressed in this podcast are not necessarily the opinions of Phase 3 Advisory Services or Osaic Wealth, Inc. and should not be construed directly or indirectly as an offer to buy or sell any securities or services mentioned herein. Unless otherwise specified, show guests are not securities licensed or affiliated with Phase 3 Advisory Services or Osaic Wealth.  Investing is subject to risks, including loss of principal invested. Past performance is not a guarantee of future results. No strategy can assure profit nor protect against loss. Please note that individual situations can vary. Therefore, the information should only be relied upon when coordinated with individual professional advice.  Securities offered through Osaic Wealth, Inc. member FINRA/SIPC. Additional investment. and insurance advisory services offered through Phase 3 Advisory Services Limited, a Registered Investment Advisor. Osaic Wealth is separately owned and other entities and or marketing names, products or services referenced here are independent of Osaic Wealth. Phase 3 Advisory Services is located at 1110 West Lake Cook Road, Suite 265 in Buffalo Grove, Illinois 60089. Our phone number is 847-520-5545. For additional information, visit our website at phase3advisory.com.

Getting the Most Out of Social Security Spousal Benefits

Are you married, widowed, or divorced? If so, then you may be eligible to receive Social Security Benefits based on your spouse's or former spouse's work history even if you have also earned your own Social Security benefits. But unfortunately, understanding and claiming these benefits can be very complicated. And once you request benefits, the Social Security administration rarely lets you fix a mistake, even if that mistake means you miss out on thousands of dollars of income every year in retirement. So be sure to listen to this entire episode to make sure you have all of the knowledge you need to help to get the most out of your Social Security spousal benefits. In this episode you will: ·      You’ll discover how to know if you qualify for any spousal benefits ·      If you’re married, you’ll learn how you and your spouse may want to coordinate the claiming of your benefits to maximize your lifetime income ·      If you’re widowed, you’ll discover how widowed spouses have the most favored status when it comes to claiming Social Security benefits and the special strategies you can use to really boost your lifetime benefit amount ·      If you’re divorced, we’ll reveal how to know if you can claim any benefits from your ex-spouse and if so what you need to know to get the most out of those benefits ·      We are also going to reveal some special circumstances that if they apply to you, you need to be especially careful in your claiming strategies because some of the regular rules or strategies won’t apply to you. ·      And you’ll also discover what the late Tonight Show host, Johnny Carson, can teach us about Social Security spousal benefits The key moments in this episode are: 00:42 – Introduction to Episode Topic: Social Security Spousal Benefits 02:10 - Qualifying for Spousal Benefits 07:07 - Spousal Benefits for Married Couples 11:49 - Delayed Retirement Credits and the File and Suspend Strategy 15:35 - Understanding Spousal Benefits 19:10 - Deciding When to Claim Spousal Benefits 23:05 - Spousal Benefits for Divorced Spouses 28:25 - Spousal Benefits for Widowed Spouses 34:07 - Special Circumstances and Landmines 36:41 - Social Security Mistakes 37:57 - Additional Resources 38:53 - Next Episode Preview Disclosure: The views expressed in this podcast are not necessarily the opinions of Phase 3 Advisory Services or Osaic Wealth, Inc. and should not be construed directly or indirectly as an offer to buy or sell any securities or services mentioned herein. Unless otherwise specified, show guests are not securities licensed or affiliated with Phase 3 Advisory Services or Osaic Wealth.  Investing is subject to risks, including loss of principal invested. Past performance is not a guarantee of future results. No strategy can assure profit nor protect against loss. Please note that individual situations can vary. Therefore, the information should only be relied upon when coordinated with individual professional advice.  Securities offered through Osaic Wealth, Inc. member FINRA/SIPC. Additional investment. and insurance advisory services offered through Phase 3 Advisory Services Limited, a Registered Investment Advisor. Osaic Wealth is separately owned and other entities and or marketing names, products or services referenced here are independent of Osaic Wealth. Phase 3 Advisory Services is located at 1110 West Lake Cook Road, Suite 265 in Buffalo Grove, Illinois 60089. Our phone number is 847-520-5545. For additional information, visit our website at phase3advisory.com.