Episodios

  • Top Five HSA Mistakes That Are Costing You Money and How to Avoid Them, #252

    Top Five HSA Mistakes That Are Costing You Money and How to Avoid Them, #252
    May 6 2025
    On the show today, I’m discussing something that could be a game-changer for your retirement savings: Health Savings Accounts, or HSAs. If you’re on a high deductible health plan, you might be eligible for this unique, triple tax-free account, but are you making the most of it? I’m sharing the top five mistakes people make with their HSA accounts. If not avoided, those mistakes can cost you serious money and limit your financial options later in life. I’m covering everything from choosing the right HSA provider to maximizing your investments within the account, tracking expenses, and even strategizing for retirement healthcare needs. Plus, I’ll give you actionable tips to avoid these common pitfalls and explain how an HSA can function as a powerful retirement savings tool. You will want to hear this episode if you are interested in... [00:00 HSAs offer triple tax benefits for qualified health costs.[06:17] Transfer your HSA to invest funds instead of letting them sit idle.[08:36] Use a bucketing strategy for investments and allocate funds based on risk and term.[13:24] Use an HSA to reimburse for long-term care insurance, COBRA costs, and Medicare Part B, D, and Advantage after age 65.[14:31] An HSA is suitable for tax-free withdrawals post-retirement. The Triple Tax Advantage of HSAs Health Savings Accounts (HSAs) have grown in popularity steadily due to their unique triple tax advantage: contributions are tax-deductible, earnings grow tax-deferred, and qualified withdrawals are tax-free. If you’re enrolled in a high-deductible health plan (HDHP), you’re likely eligible for an HSA, and maximizing this account could significantly boost your retirement planning. However, many account holders fail to capitalize on the full benefits. Let’s explore the most common (and costly) mistakes people make with their HSAs, and the steps you can take to avoid them. 1. Sticking with a Poor HSA Provider Not all HSA providers are created equal. A “good” provider offers diverse sets of low-cost investment options, competitive yields on cash balances, a user-friendly platform, and minimal fees. Unfortunately, many people end up with accounts that lack investment choices or charge unnecessary fees, simply because their employer picked the provider. The good news? You can transfer your HSA balance to a more flexible institution like Fidelity or Charles Schwab without penalty, even while still employed. Doing so could unlock better investment potential and higher earnings on your cash, making it well worth investigating your current provider's offerings and considering a move if they fall short. 2. Not Investing Your HSA Money Surprisingly, many HSA owners leave their funds idle in low- or no-interest accounts, missing years of tax-free growth. If you don’t plan to spend your HSA funds soon, consider using a “bucket” approach: keep enough in cash or a money market for your deductible, and invest the remainder in stock or bond funds for long-term growth. Since medical expenses are rarely incurred all at once, investing your surplus funds can help your account grow exponentially, harnessing the power of compounding. Review your provider’s investment options and allocate your HSA funds according to your risk tolerance and time horizon. 3. Failing to Max Out Contributions Because HSAs offer unbeatable tax benefits, it’s wise to contribute as much as possible. For 2025, contribution limits are $4,300 for individuals and $8,550 for families, including employee and employer contributions. If you’re 55 or older, you can contribute an extra $1,000 as a “catch-up” contribution. If you’re married and you and your spouse are over 55, each spouse can make their own catch-up contribution, but you’ll need separate accounts. Remember, you have until the tax filing deadline to make contributions for the previous year, giving you ample opportunity to reach the maximum annual limit. 4. Treating Your HSA Like a Checking Account Many people promptly spend their HSA funds on current medical expenses, inadvertently missing a powerful savings opportunity. Instead, consider paying for qualified medical costs out-of-pocket and letting your HSA investments grow. As long as you keep records of those qualified expenses, you can reimburse yourself tax-free at any point in the future, even years later. This allows your HSA to function much like a “stealth IRA,” providing tax-free growth and withdrawals for medical needs in retirement, when such expenses are likely to be higher. 5. Neglecting to Track Qualified Expenses To take advantage of delayed reimbursement, it’s crucial to maintain careful records of out-of-pocket medical expenditures. The IRS can require documentation during an audit, so scan or save receipts and keep a running log in a spreadsheet. Good record-keeping ensures that, when the time comes, you can confidently withdraw HSA funds tax-free to reimburse yourself or cover eligible costs like ...
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    19 m
  • Six Dave Ramsey Tips That Could Hurt Your Retirement Plan, #251

    Six Dave Ramsey Tips That Could Hurt Your Retirement Plan, #251
    Apr 29 2025
    Radio personality Dave Ramsey is a huge name in the personal finance niche. While he’s celebrated for helping countless listeners take control of their finances, many of his recommendations have sparked debate within the financial planning community. I’m going to break down six of the most controversial opinions promoted by Ramsey, including advice on retirement withdrawals, debt payoff strategies, Roth accounts, investing approaches, mortgages, and the use of credit cards. I will also weigh up the pros and cons of Ramsey’s methods, highlighting where they might help and where they might hinder your journey towards a successful retirement. Whether you’re a Dave Ramsey fan or just curious about best practices for financial wellness, this episode offers a thoughtful, practical take on some hotly contested money moves. You will want to hear this episode if you're interested in... [0:00] Exploring Dave Ramsey’s financial advice and when it might not work for you.[07:07] Contribute to your retirement plan to at least match company contributions while managing high-interest debt.[09:07] Prioritize pretax 401(k) contributions for potential tax savings and growth, especially for high earners and those nearing retirement.[13:57] Some active funds may outperform the market, but it's challenging. Paying off all debt immediately may not always be ideal.[17:43] The problem with cash or debit use and envelope budgeting to control spending and avoid debt.[20:11] Limiting credit card use could cause missed benefits. Debunking Controversial Dave Ramsey Financial Advice In the world of personal finance, few names are as recognized as Dave Ramsey. He’s helped countless listeners reclaim control of their money, but not all his advice sits comfortably with financial professionals. This week, I’m exploring several of Ramsey’s most controversial recommendations, offering candid insight into where these strategies may fall short for those planning a secure retirement. 1. The 8% Retirement Withdrawal Rule is Riskier Than It Seems Dave Ramsey suggests that retirees can safely withdraw 8% of their portfolio annually. He justifies this by assuming long-term market returns of 11-12%. The problem is that average long-term returns are generally projected in the 6-8% range, and those figures often require heavy equity exposure, something unsuitable for most retirees due to the risk of major market downturns. The more widely accepted “safe withdrawal rate” is between 4 and 5%, supported by decades of research. Relying on Ramsey’s higher figure may rapidly deplete retirement savings, especially during bear markets. Retirees should consider their investment mix and plan for longevity, erring on the side of caution to avoid outliving their assets. 2. Pay Off Debt, But Not at the Expense of Retirement Savings One of Ramsey’s hallmark principles is eliminating all debt before focusing on retirement contributions. While high-interest debt like credit cards should indeed be a priority, neglecting retirement savings, especially employer-matched 401(k) contributions, means missing out on invaluable compounding growth and free money from your employer. Ideally, individuals should strive for a balanced approach: aggressively tackle high-interest debt while contributing enough to their workplace retirement plan to secure the full employer match, and, if possible, work towards saving 10-20% of salary for retirement. 3. All Roth, All the Time? Not Necessarily Ramsey strongly favors Roth accounts for retirement savings, arguing that after-tax contributions and tax-free withdrawals offer valuable benefits. While Roth accounts can be powerful, particularly for young savers or those in lower tax brackets. For higher earners, often in their peak earning years, the upfront tax deduction of pre-tax 401(k) or IRA contributions can provide meaningful savings. Since many retirees drop into a lower tax bracket after leaving the workforce, traditional accounts can be more tax-efficient for certain households. Morrissey advises tailoring the choice to individual circumstances, considering both current and expected future tax rates. 4. Active vs. Passive Investing Ramsey promotes active mutual fund management and even suggests that up-front mutual fund commissions are worthwhile. In the last decade, though study after study has shown that most active fund managers fail to outperform inexpensive index (passive) funds after fees. With some actively managed mutual funds charging fees of over 1%, the compounding effect of those costs can dramatically diminish returns over decades. Passive investing, through low-cost index funds, allows investors to keep more of their money and often experience better outcomes. The same is true for mutual fund commissions; with so many no-load, low-fee options available, there’s little justification for paying unnecessary charges. 5. Mortgage Payoff Strategies Ramsey encourages paying off all debt, ...
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    22 m
  • Social Security Survivor and Spousal Benefits Demystified, #250

    Social Security Survivor and Spousal Benefits Demystified, #250
    Apr 23 2025
    Welcome to a special milestone episode of Retire with Ryan! In this 250th episode, we’re digging into one of the most frequently asked topics by listeners: Social Security. I answer four real-life listener questions about Social Security benefits - covering issues such as survivor benefits after divorce, spousal and ex-spousal benefit eligibility, changes to the Windfall Elimination Provision and Government Pension Offset, and rules for collecting benefits based on a former spouse’s record. I’m breaking down complex Social Security rules in an easy-to-understand way and sharing practical advice for retirees and those planning their dream retirement. You'll want to hear this episode if you're interested in... [0:00] Access your free copy of my e-book Fiduciary at www.retirewithryan.com [5:34] Divorced spouses have options for Social Security benefits based on age, remarriage status, and whether claiming their own or an ex-spouse's benefits [6:58] Earnings above $23,400 (ages 62 to full retirement) reduce Social Security benefits by $1 for every $2 over the limit. After reaching full retirement age, the reduction is $1 for every $3 over $62,160. [10:07] If your ex-spouse dies before you file, you can use a restricted application, but ex-spousal benefits don't earn delayed credits. Wait until age 70 for a higher personal benefit. [14:38] The ten-year requirement for an ex-surviving spouse currently still stands unless [15:54] If you have recently divorced and your spouse hasn't claimed benefits, then you have to wait two years until you can begin collecting benefits from your ex-spouse Navigating Social Security: Answers to the Most Common Questions for Retirees and Divorced Spouses Survivor Benefits for Divorced Spouses A question from Andrea regarding her mother’s eligibility for survivor benefits after her father and his second wife passed away highlights the intricacies many face. The Social Security Administration (SSA) does provide certain protections for divorced spouses, but eligibility hinges on specific criteria: Marriage Duration: To claim an ex-spousal survivor benefit, the marriage must have lasted at least 10 years. Remarriage Restrictions: If remarriage occurs after the age of 60 (or 50 if the survivor is disabled), the survivor can still claim benefits from the former spouse. Earlier remarriage generally directs benefits to the new spouse. Age Requirements: Survivors can claim benefits as early as age 60 (or 50 if disabled), but waiting until reaching “full retirement age” (typically 67) means collecting the full survivor benefit (100% of the deceased’s benefit). Early claims result in reduced monthly amounts. Earnings Limits: If a recipient claims before full retirement age and continues working, their benefits may be reduced if their income exceeds the annual limit ($23,400 in 2025). Survivor benefits application can’t be completed online, applicants must call or visit their local SSA office. Myths, Realities, and the Restricted Application of Ex-Spousal Benefits Stephanie, a divorced listener, asked if she could claim a spousal benefit and later switch to her own higher benefit. This is a common idea, but it is rarely permitted in practice today. No “Restricted Application” Unless Widowed: Generally, ex-spouses can only claim the higher of their benefit or up to 50% of their ex-spouse’s benefit if the ex is alive. The “restricted application” (where you claim one benefit first and then switch later) is only available to widows or widowers, not to those whose ex-spouses are still living. Delaying for More: Your benefits do grow (8% per year between full retirement age and 70). However, survivor and spousal benefits don’t accrue these “delayed retirement credits”; there’s no advantage to waiting past full retirement age to claim them. Earnings Matter: Like survivor benefits, earnings above the income limits before full retirement age can result in reductions. The Social Security Fairness Act and New Opportunities Recent legislative updates, like the Social Security Fairness Act, have had a profound impact, especially for those affected by the Windfall Elimination Provision (WEP) or Government Pension Offset (GPO). Retirees such as teachers, firefighters, and some government workers previously saw reductions in their Social Security due to pensions received from non-Social Security-taxed jobs. The Key Change is that WEP/GPO was repealed, and anyone affected can now claim full Social Security benefits. Most should already see retroactive and increased monthly payments. If you’ve not yet applied, check if you now qualify, the hurdles may have vanished! When Can You Claim on an Ex-Spouse’s Record? Donna’s inquiry emphasizes a lesser-known rule: If the divorce is recent and the ex-spouse hasn’t claimed benefits, one must wait two years to claim on the ex’s record unless the ex starts claiming earlier. For divorces older ...
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    19 m
  • Six Tactical Moves for Navigating Down Markets, #249

    Six Tactical Moves for Navigating Down Markets, #249
    Apr 15 2025
    This time, we're featuring financial insights from co-host Ryan Morrissey, who's here to help you navigate this turbulent financial landscape. We'll explore the recent volatility sparked by President Trump's tariff announcements and discuss the remarkable market rebound that followed. Ryan also lays out six strategic moves you can make to optimize your investment strategy during these downturns, whether it's buying the dip, rebalancing your portfolio, or taking advantage of tax efficiencies. Stay tuned for valuable tactics and practical advice to bolster your financial well-being and prepare for a successful retirement. Let's get started with Retire with Ryan! You will want to hear this episode if you are interested in... [0:00] Suggested market strategies for navigating a down market [5:45] Invest early in Roth IRA, IRA, HSA, and 529 accounts to capitalize on market declines and potential growth. [6:46] Rebalance your portfolio regularly to maintain target allocation and capitalize on market shifts without overthinking decisions. [8:37] Set your savings up so you put a certain amount in every month to take advantage of dollar cost averaging. [9:01] Cut your losses and sell underperforming investments [10:41] How to take advantage of tax losses inside your taxable investment accounts [15:00] Consider replacing mutual funds with ETFs for better tax efficiency when the market is down for long-term benefits. Smart Investment Moves to Leverage Stock Market Declines Market volatility is not uncommon, but it can be nerve-wracking for investors. Yet, as seasoned investor Warren Buffett famously said, "Be fearful when others are greedy, and greedy when others are fearful." In times of market downturn, opportunities abound for those who know where to look. Here’s a breakdown of six strategic moves you can make to take advantage of a down market: 1. Buy the Dip When markets decline significantly, it presents a unique buying opportunity. This strategy involves purchasing stocks when their prices are lower than usual, positioning yourself to benefit when prices rebound. It’s important to remember that timing the market perfectly is nearly impossible, but by entering a 10% decline or more, you're likely to see gains as the market recovers. This can also be a great time to maximize your contributions to your IRA, Roth IRA, or HSA to take full advantage of the opportunity. 2. Rebalance Your Portfolio Portfolio rebalancing is crucial for maintaining your desired asset allocation, especially after market fluctuations. For instance, market dips might skew this balance if your target is a 60/40 stock-to-bond ratio. Rebalancing during market declines can ensure the original allocation is restored and takes advantage of lower stock prices. 3. Automate Your Investments Automating investments ensures consistent contributions to your portfolio, regardless of market conditions. Dollar-cost averaging mitigates the risks associated with market volatility. Whether through a 401(k), IRA, or other investment accounts, setting up automatic contributions allows you to buy into the market regularly without second-guessing the timing. 4. Sell Underperforming Investments Market downturns clarify which investments are not worth holding onto. If individual stocks or mutual funds consistently underperform, it may be time to cut losses and reinvest the capital into more promising assets. Clearing these underperformers cleans up your portfolio and allows you to focus on investments with better potential. 5. Harvest Tax Losses Down markets offer a chance to engage in tax-loss harvesting. Selling securities at a loss can offset taxable gains from other investments, reducing your tax liability. Additionally, you can claim up to $3,000 in capital losses against your ordinary income each year. When using this strategy, be mindful of the wash sale rule, which prohibits repurchasing the same or substantially identical security within 30 days to claim the tax loss. 6. Transition to Tax-Efficient Investments During a market downturn, re-evaluating your taxable investment accounts for tax efficiency can be advantageous. Mutual funds often distribute capital gains annually, potentially increasing your tax bill even if you haven't sold your shares. Consider exchanging mutual funds for exchange-traded funds (ETFs), which typically offer greater tax efficiency by limiting capital gains distributions to shareholders until shares are sold. While market downturns can be daunting, they provide excellent opportunities for investors to reshuffle their portfolios strategically. You can navigate market volatility and improve your financial health by buying the dip, rebalancing, automating investments, selling underperformers, harvesting tax losses, and transitioning to tax-efficient investments. Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Download my entire book for FREE Connect With ...
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    17 m
  • 4 Strategies to Avoid Tax Tsunami When Working Beyond 73 Years Old, #248

    4 Strategies to Avoid Tax Tsunami When Working Beyond 73 Years Old, #248
    Apr 8 2025

    As you get closer to the age of 73, it's more and more important to understand the financial strategies you can use to avoid a "tax tsunami" or "tax bomb."

    In this episode, I break down the basics of RMDs, explaining how they are calculated and the importance of planning ahead. You’ll want to make a note of these four key strategies to reduce your RMDs and ensure a smoother financial journey as you transition into retirement.

    From starting withdrawals before the age threshold to considering Roth conversions and qualified charitable distributions, we share practical insights to help you navigate these financial waters.

    You will want to hear this episode if you are interested in...

    • (0:00) How to avoid a huge tax burden if you plan to work beyond 73 years of age

    • (2:21) Please rate and review the Retire with Ryan podcast!

    • (3:59) RMDs start at age 73 unless working past that age with less than 10% company ownership

    • (9:02) Plan your IRA distributions considering tax implications

    • (11:52) Consider a Roth conversion by moving pre-tax retirement funds to a Roth IRA

    • (17:54) Use annuities for stable retirement income

    • (18:59) Investigate using a QLAC to reduce RMDs, manage taxes, and provide additional income in old age

    Resources Mentioned
    • Retirement Readiness Review
    • Subscribe to the Retire with Ryan YouTube Channel
    • Download my entire book for FREE
    Connect With Morrissey Wealth Management

    www.MorrisseyWealthManagement.com/contact

    Subscribe to Retire With Ryan
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    21 m
  • Can Elon Musk and Doge Take Away My Social Security Benefit? #247

    Can Elon Musk and Doge Take Away My Social Security Benefit? #247
    Apr 1 2025

    In this episode, I address listener concerns about the future of Social Security, especially given recent changes under President Trump's administration and the involvement of the Department of Government Efficiency (Doge).

    I’ll dive into the current state of Social Security, the potential impact on your benefits, and how you can maximize those benefits moving forward. With solvency concerns looming, I’ll help you better understand what’s at stake and how to make smart decisions for your retirement.

    You will want to hear this episode if you are interested in...
    • (0:00) Can Elon Musk and Doge Take Away My Social Security Benefit?
    • (1:33) Please rate and review the Retire with Ryan podcast!
    • (2:21) What is Doge and how it could impact Social Security
    • (3:55) The role of Congress in controlling Social Security
    • (5:38) What is the future of Social Security solvency?
    • (8:26) Why waiting to collect Social Security could increase your benefits
    • (10:20) The earnings limits when collecting Social Security early
    Resources Mentioned
    • Retirement Readiness Review
    • Subscribe to the Retire with Ryan YouTube Channel
    • Download my entire book for FREE
    Connect With Morrissey Wealth Management

    www.MorrisseyWealthManagement.com/contact

    Subscribe to Retire With Ryan
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    13 m
  • FBI Warning On Suspicious Text Messages, #246

    FBI Warning On Suspicious Text Messages, #246
    Mar 25 2025

    In this episode of Retire with Ryan, I’m talking about the growing threat of smishing, a type of phishing scam where fraudulent text messages try to trick you into revealing personal information like your social security number, bank account details, or credit card information. I’ll explain how these scams are targeting individuals like you and share some important tips on how to protect your phone and investment accounts from being compromised. It's crucial to stay informed and secure, and I’m here to help you navigate these risks.

    You will want to hear this episode if you are interested in...
    • (0:00) Introduction to smishing and FBI warning
    • (0:51) How smishing scams are growing and affecting individuals
    • (1:42) Please review the podcast on Apple or Spotify
    • (2:41) Real-life examples of smishing attacks Ryan has encountered
    • (3:53) Identifying fraudulent links and avoiding them
    • (5:56) What to do if you’ve clicked on a fraudulent link
    • (7:20) Tips to protect your phone and investment accounts
    • (9:53) Signs that your phone has been compromised
    • (11:33) Two-factor authentication and securing your accounts
    Resources Mentioned
    • File a complaint at https://www.ic3.gov/
    • Retirement Readiness Review
    • Subscribe to the Retire with Ryan YouTube Channel
    • Download my entire book for FREE
    Connect With Morrissey Wealth Management

    www.MorrisseyWealthManagement.com/contact

    Subscribe to Retire With Ryan
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    14 m
  • 4 Ways To Get More Money Into Your 401K Plan, #245

    4 Ways To Get More Money Into Your 401K Plan, #245
    Mar 18 2025

    Maximizing your retirement plan contributions is one of the most powerful ways I can help you secure your financial future. As we near the end of the first quarter of 2025, it’s the perfect time to review your contributions.

    In this episode, I break down how you can ensure you're contributing the maximum allowable amount and why it’s essential to do so. I explain how to calculate your contribution limits based on your salary and pay frequency, so you can easily determine how much you should be setting aside per pay period.

    If you haven’t adjusted your contributions for the year, don’t worry—I’ll walk you through how to quickly get back on track to ensure you’re maximizing your retirement plan. By taking action now, you can set yourself up for greater savings down the road.

    You will want to hear this episode if you are interested in...
    • (0:00) The importance of maximizing retirement contributions
    • (3:21) How to calculate maximum contributions for those under 50
    • (6:50) How catch-up contributions for individuals over 50 (and how to maximize these)
    • (8:12) A new super catch-up provision for those aged 60-63 under the Secure Act 2.0
    • (9:34) Employer matching contributions and how they fit into your total contribution limit
    • (12:03) How to convert after-tax contributions to Roth accounts to maximize growth
    • (14:55) The advantages of using a taxable brokerage account for additional savings
    Resources Mentioned
    • Retirement Readiness Review
    • Subscribe to the Retire with Ryan YouTube Channel
    • Download my entire book for FREE
    Connect With Morrissey Wealth Management

    www.MorrisseyWealthManagement.com/contact

    Subscribe to Retire With Ryan
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    19 m
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