The Retirement and IRA Show

Jim and Chris discuss listener emails, starting with a listener PSA on HSA contributions and Medicare Part A, then cover Social Security survivor benefits, a Roth conversion rules follow-up, and moving an estate’s IRA into Inherited IRAs.

(8:00) George shares a PSA on an often-overlooked Medicare Part A consideration for anyone still contributing to an HSA after 65.

(19:15) A listener asks if there’s any truth to an article on Social Security survivor benefits. Specifically, if someone who started their own benefits at 65 must wait until full retirement age to collect 100% of their survivor benefits, and whether claiming early will reduce them.

(28:00) The guys revisit the Roth conversion example from Q&A #2640 in response to a question on whether the extra money deposited into the Roth IRA from a brokerage account would be an excess contribution.

(36:15) Jim and Chris tackle a question about an IRA that ended up with no named beneficiaries after an advisor moved it to a new account before the owner’s death. The question is whether the private letter rulings (PLRs) cited in an article can be relied on to transfer the IRA from the estate into Inherited IRAs without a taxable event.

The post HSA PSA, Survivor Benefits, Roth Conversions, Inherited IRAs: Q&A #2644 appeared first on The Retirement and IRA Show.

Chris’s Summary
Jim and I use two listener emails in this EDU dialog episode to consider whether each couple may be ready to retire. The first couple weighs relocating for taxes, a pricier next home, and all-equity portfolios with RMDs looming. Longevity, inflation, and a supposed $10 million target also come up. The second email involves a Social Security claiming plan, with a closer look at how spousal benefits and the earnings test work. We also discuss their options between monthly pension payments and a lump sum, along with some considerations around Roth conversions.

Jim’s “Pithy” Summary
Chris and I take a look at a couple of retirement scenarios based on listener emails in this EDU dialog episode. The first couple, 66 and 60, is trying to figure out if they’re ready to retire, and they’d like to pull the trigger now. The couple is thinking about leaving Oregon in a year or two, haven’t picked where, and taxes seem to be driving the decision. Don’t let the tax tail wag the dog, folks! Their next home will likely cost more than their current one, and we talk about why the idea that you have to downsize in retirement isn’t always right. We also discuss what 100% equities looks like when you do the mental accounting across the whole portfolio, and why RMDs looming in six years should have them asking an important question. Then there’s the longevity and inflation worries, and how the Minimum Dignity Floor ties into both. The last sentence of their email made me go, “huh.” They feel they’re far from the illustrious $10 million mark. I don’t know where they got that number, but we’ve seen people with less than a million live comfortably, and people with four, five, six million projected to run out because of how they spend.

The second emailer, age 61, has a Social Security claiming plan that we dig into, and Chris adds some clarity on spousal benefits and the earnings test. He’s also choosing between monthly pension payments and a taking a lump sum. Chris pulls an income annuity quote for comparison, while I explain why pension risk transfer and the term “state guarantee fund” may change the picture. We also weigh his plan to convert about half of their traditional IRA money to a Roth in the first few years after he retires to fill the 10% or 12% tax bracket, and how charitable giving can change the picture.

The post Ready to Retire?: EDU #2643 appeared first on The Retirement and IRA Show.

Jim and Chris discuss listener emails on choosing a life-changing event for an IRMAA reduction request, declining Medicare Part A to keep making HSA contributions, the hypothetical retroactive spousal RMD rule, using HSA funds for pre-65 health premiums, and using guaranteed universal life insurance as a tax-efficient inheritance.

(10:30) George asks if it matters which qualifying life event he selects on Form SSA-44, since two apply, when requesting a reduction in IRMAA. He also wonders whether the adjustment is still avoided if 2027 modified adjusted gross income (MAGI) comes in higher than estimated but stays under the first married filing jointly bracket.

(22:00) A listener inquires whether someone over 65 can decline Medicare Part A when starting a Social Security survivor benefit in order to keep contributing to a health savings account (HSA).

(44:15) The guys get a request to explain the purpose of the hypothetical retroactive spousal RMD rule for IRAs and to walk through the example from a recent EDU episode more slowly.

(57:45) Jim and Chris respond to a note saying that retirees who stay on their former employer’s health plan can use HSA money to pay premiums before age 65.

(1:01:30) A listener seeks guidance on using a guaranteed universal life insurance policy to tax-efficiently pass an inheritance to trusts for two adult children.

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If you would prefer to skip Jim and Chris’s banter about Jim’s garden greens and his trip to Nashville, Indiana you can skip to (12:00).

Chris’s Summary
Jim and I discuss little-known IRA rules that trace back to the IRS final regulations released in July 2024. The rules covered include how an older eligible designated beneficiary may calculate RMDs, a spousal RMD that is both hypothetical and retroactive, and the documentation requirement for see-through trusts. Some of these changes simplify the rules, while one adds complexity.

Jim’s “Pithy” Summary
Chris and I start into a list of little-known IRA rules that I put together from my old Ed Slott notes, and the three we cover all trace back to what the IRS did in July of 2024. Most of them involve beneficiaries, because that is where IRAs stop being basic and start getting confusing. Remember, when you hear the words designated beneficiary, throw them out of your brain and put in the word human. We start with an eligible human who inherits from someone younger, and I put Chris on the spot with a true or false. He gets partial credit, and that IRS decision explains why.

That same release also created the hypothetical retroactive spousal RMD. Hypothetical. It’s not real. It never happened, yet it may still land on a surviving spouse who moves an inherited IRA to their own. That name is a mouthful, so I walk through examples, including what changes when the spouses are different ages and what the IRS means by “first applicable year.” It’s easy to forget, yet forgetting it can cause real trouble.

We also get into see-through trusts. Trusts are pieces of paper, and trusts don’t die, so the IRS set parameters a trust has to follow before it will treat one like a human. I go through them, and on the beneficiaries my advice is name names. Then there is a documentation rule the IRS made simpler in that same release, but not for every type of account. Why that is, I still can’t tell you. If you have an explanation, I’m all ears.

The post Little-Known IRA Rules, Part 1: EDU #2642 appeared first on The Retirement and IRA Show.

Jim and Chris are joined by Tom Stivers for a couple questions on COBRA coverage for a younger spouse and Social Security survivor benefits and the RIB-LIM rule. Jim and Chris continue on without “Grasshopper” for a listener PSA following up on the Chip and Dale/Chippendale banter from a previous episode and questions on pension deferral past RMD age, insurer service after inheriting a 403(b), single premium deferred annuities (SPDAs), and the timing of annuity purchases as financial understanding declines with age.

(16:15) George follows up on a recent episode’s COBRA discussion, noting that a non-Medicare spouse is limited to 18 months of coverage when the qualifying event is retirement at 64.5.

(26:45) A listener asks for an explanation of the Retirement Insurance Benefit Limit (RIB-LIM) and wonders whether, after both spouses claimed at 62, a surviving spouse would receive the higher earner’s monthly benefit or something more.

(40:30) The guys receive a PSA following up on the Chip and Dale/Chippendale banter from a previous episode, explaining the history of the names and which came first.

(44:45) A pension recipient wonders whether a pension office is correct that the deferred portion of a pension held in a 401(a) can stay deferred past age 73 while RMDs begin, as a way to remain in the 24% tax bracket.

(57:45) Jim and Chris revisit an earlier question about a delayed 403(b) inheritance, as the follow-up asks why anyone would buy an annuity from an insurer that struggled to process a simple inheritance.

(1:13:30) Georgette wants to know whether a five-year, 4.4% single premium deferred annuity (SPDA) purchased with funds from an IRA was a good move and what to consider when it matures.

(1:26:15) A longtime DIYer asks whether waiting until a Minimum Dignity Floor shortage arrives to buy an annuity conflicts with the goal of the younger self protecting the older self.

The post COBRA, Social Security, Pension Deferral, Annuities: Q&A #2642 appeared first on The Retirement and IRA Show.

If you would prefer to skip Jim and Chris chatting about fall weather in Colorado and Ohio, Jim’s upcoming trip to Nashville, and country music, you can skip to (11:30).

Chris’s Summary
Jim and I look at stretch IRA eligibility after the SECURE Act and who now qualifies as an eligible designated beneficiary. We start with why naming a beneficiary matters, then trace how the stretch was assembled from the Keogh Act, TEFRA, and IRS regulations before SECURE curtailed it. From there, we define the five categories still allowed to stretch, how the date of death determines eligibility, and how IRAs and employer plans treat disability and chronic illness certification differently.

Jim’s “Pithy” Summary
Chris and I take a deeper dive into eligible designated beneficiaries, something that seems benign but isn’t as straightforward as it sounds. What a lot of people don’t realize is that Congress never created the stretch IRA. It was stitched together like Frankenstein from two different acts and separate IRS regulations, and it got so ingrained that it took a specific act of Congress to greatly curtail it. Under the old rules, if a 1-year-old inherited an IRA, it could stay open for 80-plus years. But Congress wanted to get money out of IRAs sooner rather than later for the tax revenue so the rules changed.

Think of the Black Knight from Monty Python, gravely injured but still doing its best to carry on. Congress wounded the stretch IRA, but they didn’t kill it. What survived is the eligible designated beneficiary, or eligible humans, and there are 5 categories still allowed to stretch. Some we go through wicked quick. Others send us down little rabbit holes.

We dig into stretch IRA eligibility questions like does the IRS accept common-law marriage? Do stepchildren and foster children count as a minor child? And why can one day before an 18th birthday change how disability is defined? Then there’s the question of how a beneficiary proves they’re disabled or chronically ill. The IRS waived some of the certification requirements, but it didn’t treat IRAs and employer plans the same way. I don’t get why that is, but I share Ed Slott’s theory on it.

The post Stretch IRA Eligibility: EDU #2641 appeared first on The Retirement and IRA Show.

Jim and Chris discuss listener emails on Social Security first check timing at age 70 and child-in-care spousal benefits, additional milestone ages and HSA contribution PSAs, Roth withdrawals under the Rule of 55, and finding annuity providers with good customer service.

(11:30) A listener asks whether Social Security benefits started in the month of a 70th birthday should arrive the following month, or only after the first full month at age 70, as the Social Security Administration explained.

(19:45) The guys field a question on whether a spouse can collect a child-in-care spousal benefit for caring for a stepson who became disabled at 21 and receives Supplemental Security Income.

(27:30) Jim and Chris share a PSA that 120 is a milestone age worth noting, since that is when the life expectancy factor used for most RMDs stops decreasing each year.

(34:30) Georgette notes that each spouse’s $1,000 HSA catch-up contribution must go into their own HSA and wonders whether Roth withdrawals of growth qualify under the Rule of 55 or must wait until 59½.

(43:15) The guys share another PSA pointing out that Rule 72(t), which allows penalty-free IRA withdrawals before 59½, is another milestone worth adding to the recent Retirement Milestone Ages episode.

(49:15) A fellow CFP® clarifies that Medicare enrollment, not age, ends HSA contribution eligibility, so someone working past 65 without Medicare can keep contributing, including the $1,000. catch-up.

(58:15) Jim and Chris address whether any annuity providers offer solid customer service.

The post Social Security, Milestone Ages, HSAs, Roth Withdrawals, Annuity Providers: Q&A #2641 appeared first on The Retirement and IRA Show.

Chris’s Summary:
With Jim traveling, I’m joined by the newest member of the Jim Saulnier & Associates team, Tom Stivers, to review an email from a listener couple who both chose a single life pension, with term life insurance on the higher earner. Their situation raises concerns about Social Security claiming ages, their Minimum Dignity Floor catching up to income if their pensions lack a cost-of-living adjustment, health insurance before Medicare, Roth conversions, and a potential need for a long-term care plan.

Jim’s “Pithy” Summary:
While I’m traveling, Chris brings in Tom Stivers, a newer member of our team, to work through a longer listener email that doesn’t fit a Q&A show. George and Georgette both took their state education pensions without a survivor benefit. George has the bigger pension, so he bought a term life policy to age 78 to help replace his income if he dies first. Chris admits the hair went up on the back of his neck the moment he saw a single life pension, and it went up again at the word “term”. Tom zeroes in on that word too, because almost none of us know the date we’re going to die. But the rest of the email does change the picture.

They believe they might be unicorns, and with $191,000 of secure income once George claims Social Security at 70, against $110,000 of spending, you can see why. Chris pictures it as a race: income starts way out ahead, but spending keeps slowly catching up, and their pensions likely have no automatic cost of living adjustment. Tom also spots a sneaky line about Georgette’s health insurance before Medicare. George thinks Roth conversions matter for taxes and IRMAA. Georgette isn’t worried and doesn’t want to pay the taxes now. And when Chris asks whether conversions should stop once Social Security starts, Tom answers with a question: what’s your 2-1-0 Tax Ordering Number?

And then there’s what the email never mentions: a long-term care plan. Chris explains why their savings may not stretch as far as it sounds if one of them needs care, and why secure income that continues for the survivor can matter. He points out people can obsess over decisions that barely move the needle while missing the ones that do.

The post Single Life Pension Tradeoffs: EDU #2640 appeared first on The Retirement and IRA Show.

Jim and Chris discuss listener emails, beginning with a listener PSA on HSA catch-up contributions at age 55, then cover Social Security spousal benefits when claiming before full retirement age, paying IRMAA with HSA funds and the SSA-44 form for IRMAA appeals, whether a Roth conversion counts as a 60-day rollover, and annuity timing as interest rates fall.

(6:45) A listener shares a PSA noting that HSA holders age 55 and older can contribute an extra $1,000 per year until they reach Medicare age, and a spouse can do the same in their own HSA.

(22:00) The guys get a question on whether claiming Social Security at 65 still allows a spousal benefit of half their spouse’s higher benefit, or whether that requires waiting until full retirement age.

(27:15) Georgette asks whether IRMAA surcharges can be paid with HSA funds, following a prior episode’s mention that Medicare Part B and D premiums qualify.

(32:30) A listener seeking IRMAA relief after a spouse’s retirement payout wants to know which year belongs in section 2 of the SSA-44 form.

(45:00) Jim and Chris are asked whether a Roth conversion is treated as a 60-day rollover subject to the once-per-365-days limit.

(1:05:45) A listener who has attended several annuity sales presentations wonders why Jim doesn’t buy his planned annuity now and turn on the income later if payout rates are likely to keep dropping.

The post HSA Catch-up PSA, Social Security, IRMAA, Roth Conversion, Annuity Timing: QA #2640 appeared first on The Retirement and IRA Show.

If you would prefer not to learn about Jim’s upcoming drive to Ohio and the family change of plans also sending him to Massachusetts, you can skip to (10:00).

Chris’s Summary
Jim and I walk through retirement milestone ages, from age 21, when a minor child beneficiary’s stretch gives way to the 10-year rule, through catch-up contributions, penalty-free withdrawal ages, Social Security survivor and retirement claiming ages, the IRMAA lookback at 63, Medicare at 65, QCDs at 70½, and RMDs at 73 or 75. We also cover an obscure age 75 RMD rule for pre-1987 403(b) contributions and the age 85 limit for starting a QLAC.

Jim’s “Pithy” Summary
Chris and I work through a list of retirement milestone ages I’ve been holding onto for a while, and the first stop, age 21, is a deep one. Folks, the stretch IRA is the Black Knight from Monty Python and the Holy Grail. It’s gravely wounded, but it’s not gone. A minor child of the deceased IRA owner, an eligible designated beneficiary, or as I call it, an eligible human, can still stretch until 21. Then the 10-year rule applies, and Chris and I guessed wrong on what happens next. I checked with the Ed Slott Group, and the answer comes down to one phrase: at least as rapidly.

Then we hit catch-up contributions at 50, including a new Roth rule this year that some listeners call a loophole. I don’t. We cover the carve-out that lets public safety employees skip the 10% early withdrawal penalty at 50, and the rule of 55, including a strategy the IRS has implicitly blessed. And then there’s the super catch-up. Folks, I have no idea what Congress was thinking. An extra $3,250 a year in your 60s is not going to fix anybody’s retirement. Let people in their 20s and 30s put more in, where it can compound. Chris brings in the Social Security and IRMAA ages, including a disabled surviving spouse rule that taught both of us something new.

At 70½, QCDs can help at the margins when a big RMD threatens an IRMAA tier. I make Chris guess an obscure age 75 rule tied to 403s, and he earns a B+. Then he pulls out one I totally missed at 85: QLACs. I give Treasury credit here, not Congress, and I explain why we’re a little softer on QLACs than on other deferred income annuities.

The post Retirement Milestone Ages: EDU #2639 appeared first on The Retirement and IRA Show.

Jim and Chris discuss listener emails on the best month to claim Social Security, IRMAA strategy for married couples, Social Security ex-spouse benefits, inflation and annuity purchase decisions for a Minimum Dignity Floor shortfall, and Minimum Dignity Floor tax calculations.

(9:30) A listener asks whether there is a best month to apply for Social Security benefits before age 70, given how often benefits are calculated.

(20:00) George wants to know whether the SSA-44 IRMAA strategy applies to married couples filing jointly, and whether a spouse delaying retirement until mid-January would allow a large Roth conversion that year without that conversion triggering IRMAA later.

(29:30) The guys are asked to clarify ex-spouse benefit figures a Social Security agent gave a listener’s sister-in-law, including whether she can claim spousal benefits without starting her own and whether the numbers indicate she was the higher earner.

(47:30) Jim and Chris field a question on how to account for future inflation when making an annuity purchase to cover a Minimum Dignity Floor shortfall.

(1:10:30) A final email wonders why the Minimum Dignity Floor calculation doesn’t simply account for the taxes owed on that income separate from Fun Number spending.

The post Social Security, IRMAA, Annuity Purchase, MDF Calculations: Q&A #2639 appeared first on The Retirement and IRA Show.

Chris’s Summary
Jim and I use a Life Annuity Specialist article on pension risk transfer mortality models to examine longevity risk for individual retirees. These models weigh sub-ZIP codes, income, and over 200 socioeconomic factors, suggesting some retirees may live more than 10 years past age-65 life expectancy. We discuss why a household is a risk pool of one, why projections should reach well into the 90s, and why advocacy matters as the tax planning window closes.

Jim’s “Pithy” Summary
Chris and I dig into an article from Life Annuity Specialist, and no, this is not an annuity discussion. It covers a new approach to mortality tables that a consulting firm built to help insurers price pension risk transfers, and I’m not a fan of those, as you know. What amazed me was how granular it gets: sub-ZIP codes, pension size, blue-collar versus white-collar, and a model trained on millions of life years of data.

Here’s the thing, folks. The subset of the population this model says will live longer is pretty much those of you listening to this podcast. You VGers, you do-it-yourselfers, you’re more likely to have taken care of your health and followed what Dr. Phillip Snider shares about healthspan, not just lifespan. These risk tables let insurance companies handle that uncertainty because they’re spreading it across thousands of people, so no single long life throws them off. You don’t get that luxury. You’re a risk pool of one, a zebra on the Serengeti trying to survive outside the herd. You can pool longevity and cash flow through an annuity if you want, but you cannot pool your cognitive ability or your ability to avoid fraud.

Whether or not you ever buy a lifetime stream of guaranteed income to protect your Minimum Dignity Floor, that’s up to you. What we talk about in this episode is longevity risk that goes beyond outliving your money. Who is going to advocate for you at 85, 90, 95? Who updates your power of attorney, checks your beneficiaries, and looks out for the surviving spouse who was never into this stuff? As the tax planning window closes, the need for advocacy grows, and many of you are going to live a lot longer than you think.

The post Longevity Risk Beyond Money: EDU # 2638 appeared first on The Retirement and IRA Show.

Chris and Jacob discuss listener emails on Social Security survivor benefits, a TIPS ladder paired with a QLAC, investment positioning across taxable, tax deferred, and tax-free accounts, and buffered ETFs for sequence of returns risk.

(12:30) A listener whose spouse recently died asks whether they can claim child in care survivor benefits now while caring for their young daughter, and whether claiming now would affect their own survivor benefit at full retirement age.

(25:00) George asks for feedback on a TIPS ladder that runs only to age 79, with an extra amount set aside at 75 to buy a QLAC that begins paying at 80 and covers the Minimum Dignity Floor from there.

(48:15) The guys take a question on how to position a $2.8 million portfolio split evenly between taxable, tax deferred, and tax free accounts when funding spending and weighing tax implications.

(1:05:15) Chris and Jacob respond to a question about using buffered ETFs to help manage sequence of returns risk.

The post Social Security, TIPS Ladder, Investment Positioning, Buffered ETFs: Q&A #2638 appeared first on The Retirement and IRA Show.

Chris’s Summary
Jim and I discuss five common power of attorney mistakes flagged in an estate planning attorney’s article, along with points from Peter Scott. We cover naming an alternative agent, the friction a springing agency can create, gifting authority that is either absent or overly broad, notifying old agents and financial institutions after a change, and the boilerplate real estate language that title companies may refuse to accept.

Jim’s “Pithy” Summary
Chris and I go through an article timestamped December 2022, one of the 72 sitting in my iPad folder, where an estate planning attorney lists her five biggest mistakes to avoid with a financial power of attorney. I’m not an attorney, nor do I play one on TV, but I’ve been in this industry 27 going on 28 years and we deal with these forms quite often. I read her five, opine on them, and Chris weighs in after each. I also bring in Peter Scott, who shared with us on this show before he retired, because Pete flagged two of these as the big ones.

Her list covers backup agents, springing powers, gifting authority, changing agents, and real estate. I used to be a fan of springing powers. I’m not anymore, and it was Pete who turned me around on it. I had never thought of it that way before. Gifting is the one I think gets overlooked most, and I use my own mother’s document to explain why, because what wasn’t in hers had me beside myself. It involved my sister, my niece and nephew, and a lot of college tuition. Chris adds that locking a document down too tightly can backfire just as badly, and suggests what to do with wishes that don’t fit into legal language.

We also get into why banks and financial institutions often refuse older forms, the Colorado law Pete said he could fly a 747 through, and two clients whose documents came from the exact same software, where one attorney took the time to do the job and the other just clicked print. Pete’s warning on real estate was about boilerplate language, and Chris explains why the address you use every day may not be the one that matters.

The post Power of Attorney Mistakes: EDU #2637 appeared first on The Retirement and IRA Show.

Jim and Chris are again joined by Dr. Phillip Snider. They discuss listener emails on coronary artery calcium scoring, followed by a broader conversation on healthy aging. Dr. Snider revisits the five tests he recommended in a previous episode, explains what the calcium score ranges mean, and covers how to get the tests done. He then turns to the dietary patterns linked to a longer, healthier life and closes with where the evidence actually stands on the common supplements vitamin D, vitamin E, CoQ10, and beta-carotene.

(11:30) George shares that after requesting the five tests Dr. Snider recommended, his coronary artery calcium score came back high despite other excellent health markers, and he and his physician are now building a treatment plan.

(29:00) A listener who is a retired emergency physician offers a different view on the calcium score, arguing that testing asymptomatic people carries risks of its own.

The post Heart Screening, Healthy Aging in Retirement: Q&A #2637 appeared first on The Retirement and IRA Show.

Chris’s Summary
Jim and I continue our Fun Number series with a listener email laying out a DIY retirement plan built account by account, each with an assigned purpose. We cover where her approach lines up with positioning dollars by spending need, where tax planning could change what comes from which account, and how declining ability to manage money shaped her decisions.

Jim’s “Pithy” Summary
Chris and I get back to the series we interrupted, this time with a long email from a listener who has done the work herself and laid the whole thing out for us. She is retiring next year, she has been tracking her actual spending for years, and she has built a DIY retirement plan that throws out the two rules of thumb she started with a decade ago. I have never understood where that 75 to 80 percent of income number came from. Your mortgage or rent and your utilities do not shrink because you stopped working, and the money you were putting into the 401k does not vanish. It goes to fun.

Where she really got my attention is that she gave every account a job. She has a good life account, a reserve for emergencies, aging and long term care, one for charitable giving, and one that exists to be spent. That is her version of what we do, and I like it. I do have a couple of caveats, and one of them I feel strongly enough about that I went looking for the sound effect button. It has to do with which account the charitable dollars should come from.

We also get into what she calls the basics of life, which is close to what we call the Minimum Dignity Floor, why positions get etched in Jell-O and not in stone, the studies on when your ability to handle this material peaks and why your confidence never gets the memo, and the question of who her tax planning is actually for.

The post Review of a DIY Retirement Plan: EDU #2636 appeared first on The Retirement and IRA Show.

Jim and Chris discuss listener emails on IRMAA brackets after a spouse’s death, Social Security claiming and spousal benefits, annuities and inflation for a Minimum Dignity Floor shortfall, and a Qualified Charitable Distributio (QCD) funding a charitable gift annuity, followed by listener PSAs on expense tracking, home sale timing, and annuity flexibility.

(10:00) A listener asks which year’s tax brackets and which filing status apply to the IRMAA two-year look-back following a spouse’s death, and whether remarrying later would change the result.

(18:30) George asks whether claiming Social Security at Full Retirement Age rather than 70 makes more sense when a spouse is already receiving a small benefit that would step up to a spousal benefit.

(32:15) The guys respond to a question about how to account for future inflation when purchasing an annuity to cover a Minimum Dignity Floor (MDF) shortfall.

(1:02:15) Jim and Chris address a question about using a QCD from a traditional IRA that contains basis to fund a charitable gift annuity. The listener asks how the basis affects the reportable QCD amount, any charitable deduction, and the taxation of the lifetime income stream.

(1:11:30) Georgette shares a listener PSA on using a budgeting app to tag every transaction as either MDF or Fun in the years leading up to retirement.

(1:13:00) A listener offers a PSA recommending a different approach – similar to what Jim is doing – for the homebuyer from a previous episode.

(1:15:00) The guys share a listener PSA suggesting a 60-day leaseback at closing as a simpler alternative to the 60-day rollover for that same home purchase situation.

(1:19:30) Jim and Chris close with a listener PSA suggesting that an annuity purchased for fun spending could also serve as a partial source of MDF income later if it structured differently.

The post IRMAA Brackets, Social Security, Annuity Inflation, QCDs, Listener PSAs: Q&A #2636 appeared first on The Retirement and IRA Show.

Chris’s Summary
Jim and I are joined by Jacob as we tackle four listener questions on Investment Positioning , covering Quicken tools for tracking positions, funding a delay period Minimum Dignity Floor with a stable value fund, evaluating a too-good-to-be-true real estate return, and weighing a target date fund for long-term care reserves.

Jim’s “Pithy” Summary
Chris and I are joined by Jacob as we work through four listener emails, all circling back to how we think about Investment Positioning in retirement.

(6:45) One listener wants to know what Quicken features another listener used to track positions. Jacob reads the original listener’s own description of using Quicken to set up investment positions, plus separate categories for essential and discretionary spending.

(14:30) George wonders whether the stable value fund in his large 401(k) is principal protected enough to draw on. He and his wife are both 60 and plan to delay Social Security roughly 10 years, and he’s weighing this fund as the source to bridge that gap. Jacob and I dig into rate reset timing, liquidity restrictions, and mandatory withholding before landing on an answer.

(46:45) A listener asks whether a real estate offer promising 18 to 30 percent annual returns is worth pursuing. Chris lays out the single clearest test I’ve heard for spotting too-good-to-be-true returns.

(1:09:30) Georgette raises the question of parking her long-term care dollars in a 2040 target date fund. Jacob walks through how we tier the L in our SEAL Reserve by age instead of relying on one fund’s glide path, and I get into the real difference between a “to” fund and a “through” fund, including the story of a deputy sheriff who learned that difference the hard way.

The post Investment Positioning Questions: EDU #2635 appeared first on The Retirement and IRA Show.

Jim and Chris discuss listener emails on Social Security survivor benefits and earnings records, financing a home purchase, and using a fixed indexed annuity (FIA) for discretionary spending.

(11:15) A listener asks why a Social Security estimate lists a $3,944 survivor benefit rather than the projected $5,101 age-70 benefit and which amount would actually be paid.

(21:45) The guys consider whether adding previously omitted stock option income to a 2017 earnings record could result in higher Social Security benefits and back pay.

(31:30) Jim and Chris weigh using a 60-day IRA or Roth IRA rollover to finance a home purchase before selling the current home against a HELOC or mortgage.

(55:15) Another listener asks for their thoughts on using a fixed indexed annuity (FIA) with an income rider to support discretionary spending and how it compares with their simpler annuity strategies.

The post Social Security, Social Security, Home Purchase, Fun Spending: Q&A #2635 appeared first on The Retirement and IRA Show.

Chris’s Summary
Jim and I continue our discussion on the Fun Number, this time as a dialogue episode built around one listener’s hesitation around spending retirement savings and how growth and legacy positioning and establishing his SEAL Reserve helped him work through it. We revisit the seesaw framework for undeployed assets, clarify how the SEAL Reserve consolidated the old reserve positions, and explain why the Fun Vision is never set in stone and can and should be revisited.

Jim’s “Pithy” Summary
Chris and I are picking the Fun Number conversation back up in dialogue form this week, working through a long email from a listener whose growth and legacy positioning helped him get more comfortable with spending retirement savings after years of struggling to spend the money he worked his whole life to save. I have spent twenty-seven years questioning the safe withdrawal rate approach, and this listener took what we teach and reshaped it around his own need for peace of mind.

He admitted flat out that spending money is difficult for him, and I don’t think that makes him an anomaly. Honestly, that’s the norm for most people entering retirement. I compare it to growing lettuce in my own garden, nursing it from seed, only to cut it down and eat it. You still do it, but there is a pull to let it keep growing. That is why we built the Minimum Dignity Floor first: the older you gets an explicit promise that food, housing, and healthcare are covered no matter what, so the younger you can give yourself permission to spend on fun. This listener wanted more comfort than that alone gave him. So we walk through where that extra comfort came from for him.

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