Retire With Ryan Ryan R Morrissey

If you are divorced and approaching 62, you may qualify for social security benefits based on your ex-spouse's earning record. But who qualifies? When can you collect it? How much can you collect? Does your ex-spouse find out? I’ll answer the things you need to know in this episode of Retire with Ryan. 
You will want to hear this episode if you are interested in... [1:11] Sign up for Retirement Readiness Review [1:46] Divorce and social security [3:12] What makes you eligible for the benefit?  [6:28] Other things you need to know [8:06] How much can you receive?  [11:49] What if your ex-spouse is deceased? [13:51] How to apply (and what you need) [16:43] What should you do if you’re divorced? What makes you eligible for the ex-spousal benefit? You’re eligible if:
You were married at least 10 years You haven’t remarried  Your ex-spouse is 62 or older and eligible for benefits The divorce occurred at least two years prior to applying Your ex-spouse doesn’t need to have filed for benefits Your own benefit cannot be higher than the spousal benefit. That simply means that you’re able to apply for your benefits and the spousal benefit and choose the higher of the two. You’re eligible for up to half of your ex-spouse's benefit or your own.
What else do you need to know? 
Benefits for current or other ex-spouses are not affected. If your ex-spouse is collecting, it won’t impact what they’re receiving.  Secondly, your ex-spouse cannot stop you from claiming this benefit. They have no control over this. Divorce settlements have nothing to do with this. If you qualify, you’re entitled to the benefit.  Lastly, any ex-spouse can claim benefits. Your spouse could claim up to half of your benefit as well.  How much can you receive?  If you were born after 1960, your full retirement age is 67 or later. For anyone born before 1959, your full retirement age is 66 and 10 months. Every year before that the full retirement age decreases by two months. Why is this important?
To get the full 50% ex-spousal benefit, you have to wait until your full retirement age. If your full retirement age is 67 and you want to collect at 62, you’d get 32.5% of your ex-spouse’s full retirement benefit. If you waited until you turned 63, you’d get 35%. The percentage increases every year until it caps at 50% when you hit your full retirement age. 
If you claim your benefit before your full retirement, there’s also a limit to how much you can earn and still receive the benefit. The earnings limit in 2024 is $22,320. That limit is in effect from 62–66. If you earn over that amount, your benefit will be reduced by $1 for every $2 you make over $22,320. 
The year you retire, you can make up to $59,520 before your benefit is reduced by $1 for every $3 you’re over. Starting the month you retire, there’s no limit and you can receive your full benefits. 
How does it work if your ex-spouse is deceased?  This is known as a surviving divorced spouse benefit. The same eligibility rules apply—with a few changes:
You can start climbing benefits as early as age 60 (with a reduction) You can apply for the survivor benefit as a restricted application and let your own benefit grow If your benefit is more than half of your deceased ex-spouse’s benefit, you can collect the percentage you’re eligible for while yours continues to defer. Your benefit caps out at 70 at which point you’d collect your benefit.
Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Online social security calculator SSA.gov Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact
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Medicare is confusing and complicated. Most people nearing retirement age have likely heard numerous mistruths regarding when to get it, what it does for you, and so much more. That’s why I’m busting the 10 most commonly perpetrated Medicare myths so you’ll know how to discern fact from fiction—and put your mind at ease. 
You will want to hear this episode if you are interested in... [0:53] Sign up for my online course: Retirement Readiness Review [1:21] Myth #1: You have to enroll in Medicare when you turn 65 [2:57] Myth #2: You’re automatically enrolled in Medicare when you turn 65 [3:55] Myth #3: Medicare will tell you when it’s time to enroll [4:27] Myth #4: Medicare is free [5:52] Myth #5: Your income levels impact whether or not you qualify  [6:28] Myth #6: Having COBRA allows you to delay enrollment [7:16] Myth #7: You should enroll in Medicare Part A as soon as you can [8:54] Myth #8: Medicare Advantage plans are expensive [9:52] Myth #9: Medicare Advantage plans are better than Medigap plans [11:42] Myth #10: Once you select a plan, you’re stuck with it Myth: You have to enroll in Medicare when you turn 65 This is false. If you have job-based health insurance with a company that has 20 or more employees, you don’t have to sign up for Medicare immediately. You can wait to sign up until you stop working or you lose your health insurance. Why would you want to? 
There may be excess costs you wouldn’t need to pay if you still have insurance through your employer. But if you’re self-employed or don’t have an insurance policy that covers more than 20 people, and you don’t want to sign up for Medicare, you’ll get hit with a late enrollment penalty. 
Myth:You’re automatically enrolled in Medicare when you turn 65 You’re only automatically enrolled if you’re already collecting Social Security when you turn 65. Everyone else has to enroll during the three months before they turn 65 or the three months after their 65th birthday month. If you’re not going to enroll at 65, you have an 8-month window to enroll after your insurance coverage ends (or you’ll be subject to a penalty). 
Keep in mind that Medicare will not tell you when it’s time to enroll. Though you’ll get a lot of advertisements in the mail for supplemental plans, Medicare will not send you a reminder. To enroll, you go to SSA.gov and click on “enroll in Medicare.” 
Myth: Medicare is free Medicare Part A covers part of the cost of a hospital stay. As long as you or your spouse has worked for 10 years or more in the United States, Part A is free. However, Part B (which covers preventative care) starts at $174.70 per month. 
Everyone pays the minimum premium and depending on your income level, you may pay far more. The premium may increase every year. There are many other expenses that Medicare doesn't cover.
Many people also say that you should enroll in Medicare Part A as soon as you can because it’s free. This makes sense—only if you don’t have a high-deductible insurance plan. But with high-deductible health plans, you’re typically eligible for an HSA. 
As soon as you enroll in Part A, that disallows you—and your employer—from making contributions to an HSA. You also have to remove any contributions you’d made from the prior six months before enrolling.
I tackle a lot more myths you need to be aware of, so make sure you listen to the whole episode!
Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact


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How can you protect your data and personal information from IRS scammers and criminals? Everyone is afraid of being audited by the IRS. Maybe you’re scared you may have filed your taxes incorrectly. Criminals take advantage of that fear to perpetuate their scams. But there are some simple things you can do to avoid falling victim to these scams. I’ll share 7 tips you can use to protect yourself from IRS scammers in this episode! 
You will want to hear this episode if you are interested in... [1:15] Sign up for the Retirement Readiness Review! [2:42] Tip #1: The IRS only reaches out through the mail [4:43] Tip #2: Be suspicious of emails from the “IRS” [6:26] Tip #3: Don’t send checks through the mail [7:44] Tip #4: Protect your personally identifiable information (PII) [8:49] Tip #5: Pay your bills electronically when possible [9:15] Tip #6: Request direct deposit for paychecks [10:14] Tip #7: Set up two-factor authentication What you need to know about the IRS Did you know that the IRS doesn’t make phone calls or leave voicemail messages? They won’t send a text or contact you on social media. They don’t use email either. If the IRS has a problem with you, they’ll send you a letter. 
So if you get a phone call saying someone is from the IRS and they need more information from you, hang up, and block their phone number (and report it as spam). 
These scammers threaten people, saying they’ll lose their immigration status, driver’s license, business license, or they’ll call law enforcement to arrest them. Don’t fall victim to these threats. 
If you do receive a letter from the IRS, don’t panic. The majority of the time it’s a simple fix that your CPA or financial advisor can help you navigate. It may be as simple as a missing 1099. 
Be suspicious of emails from the “IRS” Anytime you get an email from someone unfamiliar, hover over the address of the email to see who it’s from. You’ll see mistakes in the email addresses (often misspellings) from scammers. Make sure you never click on any links in an email before you know it’s from someone or a business you trust. 
If you click on one of these links, you’re allowing the scammer into your computer or phone. They can install spyware or hijack your files. They’ll lock your files and demand a ransom to get them back. 10 years ago, this happened to me. 
Protect your personally identifiable information (PII) PII is your social security number, DOV, driver’s license, bank account information, etc. Don’t email anything that contains your PII—even if it’s to someone you know and trust. If your email is ever hacked, the hackers can access this information and use it to open accounts in your name. Most financial firms offer upload options such as Box or ShareFile. 
One of the best things you can do to protect your information is to set up two-factor authentication whenever you can. Two-factor authentication requires that you offer two ways of proving that it’s you logging in. You may need to provide a username, password, and PIN.
You can use an authenticator app that provides a PIN that resets every 30 seconds. Or, you can have a pin texted to you. If a scammer can steal your username and password, they probably can’t breach the two-factor authentication. 
Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel ShareFile Box USPS Informed Delivery Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact


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Do you usually get a tax refund? What do you typically do with your tax refund? Do you have it earmarked for a specific purpose? As we’re inching closer to the tax filing deadline, I thought it would be interesting to share some ways you can wisely invest your tax refund. I’ll cover 9 ideas you can consider to make good use of your money. 
You will want to hear this episode if you are interested in... [1:42] Why are you getting a tax refund?  [2:36] Idea #1: Save it for next year's taxes [3:03] Idea #2: Increase your savings  [4:05] Idea #3: Pay down high-interest debt [4:49] Idea #4: Contribute to a Roth IRA  [5:12] Idea #5: Home improvement projects  [6:02] Idea #6: Increase retirement contributions  [7:08] Idea #7: Plan a vacation [7:51] Idea #8: Invest in yourself  [8:32] Idea #9: Buy US Savings Bonds  Why are you getting a tax refund? If you’re getting a tax refund, you should be asking why. You’re giving the government a free loan for the entire year. You aren’t paid interest when you receive a refund. Why not investigate if you can increase your withholdings, so you can keep more of your money? If you are going to get a refund, here are some ways you could invest it. 
9 ideas for investing your tax refund Save it for next year's taxes: If you think your taxes will increase because your income fluctuates, it might be a good idea to set the money aside in a short-term CD or money market. Increase your savings: You need 3–6 months of living expenses in an emergency fund (which could be kept in a short-term CD or money market) in case you lose your job or another unexpected situation arises. Pay down high-interest debt: If you’re carrying credit card or student loan debt in excess of 10%, pay it off as soon as possible. Why 10%? Because it’s hard to earn more than 10% over time in the stock market as an average annual return.  Contribute to a Roth IRA: If you don’t have a Roth IRA, you can set one up (provided you qualify) and start contributing to it.  Home improvement projects: Improving your kitchen or bathroom(s) can increase the value of your home down the road. Even an outdoor patio or deck space may be a good investment to get a return on your money.  Increase retirement account contributions: If you still have room to contribute to your 401k, you can increase what you contribute through payroll contributions. Or, you can shift your tax refund into the account over time. If you contribute more throughout the year, less will be sitting with the IRS for you to get back in a tax refund.  Plan a vacation: We don’t know what the future holds. If you’ve wanted to plan a specific trip for a long time, why not take some of this money and invest it in a trip?  Invest in yourself: Can you take a course? Get a designation in your field? These things can pay large dividends down the road, especially if they help increase your income or get you closer to a job promotion.  Buy US Savings Bonds: The interest they pay is based on a fixed rate when you buy the bond and a variable rate tied to the consumer price index. You’d always get a minimum for the life of the bond and a variable rate every six months. Listen to the whole episode for a more in-depth look at each idea!
Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel I bonds interest rates Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact


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Do you own stock in the company that you work for in your 401K? Net unrealized appreciation could potentially save you a significant amount of money on your taxes when you start making withdrawals. I’ll share how to take advantage of the process as well as mistakes to avoid making in this episode of Retire with Ryan. 
You will want to hear this episode if you are interested in... [1:00] Sign up for my Retirement Readiness Review! [1:26] What is net unrealized appreciation? [3:31] How net unrealized appreciation works [5:05] How to process the distribution  [7:41] Where people run into problems [10:09] Net unrealized appreciation when you aren’t retired [12:23] Reminder: Sell the stock in a lower tax bracket Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact
 
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The Federal Reserve Met on 3/20/24 to discuss monetary policy and whether or not to raise or lower interest rates. They announced that they won’t make any changes. Most experts believe that they’ll lower interest rates in June.
So should you start selling your money market funds and short-term bond funds? When should you do it? Should you move the money into something that could benefit from decreasing interest rates? In this episode, I’ll discuss why we invest in money market funds, if you should move your money out, and where you should consider shifting it. 
You will want to hear this episode if you are interested in... [1:13] Sign up for the Retirement Readiness Review! [1:41] Why should you invest in money market funds?  [4:33] Why move money out of your money market fund? [6:30] What might make money market rates fall?  [8:42] What do you buy to replace money market funds? Why should you invest in money market funds? Money market funds should be considered part of your overall asset allocation. We look at money in terms of buckets. You need some money in risky buckets to grow your money to pace against inflation (stocks, commodities, real estate investment, high-yield corporate bonds, etc.). The other money is your “safe” money (cash, money market funds, government bonds, short-term corporate bonds, etc.).
I’ve been recommending that you move money from your bank or other low-yielding accounts and move them into money market funds for the last year and a half. Why? Because you can now earn about 5% on your money market funds (depending on where you keep it). We typically use the Schwab Value Advantage Money Fund® (SWVXX). And as of 3/20/2024, its current yield is 5.18% with an annual expense ratio of 0.340%. 
Money market funds are relatively low-risk and liquid. They trade for a dollar value that rarely changes. What changes? The interest rate that the funds pay (which can reset as often as every seven days).
Why move money out of your money market fund?  You invest in a money market fund to help you earn more interest on your safe money. You want to choose what gives you the best rate possible. The rate you get is dependent on duration—the length of time that you’re investing your money. 
Currently, looking at the treasury yield curve, you’ll earn more interest by having your money in shorter-term treasuries than you would versus long-term treasuries. Eventually, the curve will reverse and long-term investments will yield more interest. That’s when you’d consider reducing the amount of money out of money market funds. 
Until the Fed raised interest rates in 2022, money markets were paying almost nothing. As the Fed raised interest rates, the interest paid increased. What might make money market rates fall? 
The primary driver is inflation. The Fed monitors inflation so they can make decisions about what to do with interest rates. Inflation has been high. The Fed doesn’t want to cut rates too quickly because it could trigger more inflation. 
What could you buy to replace money market funds? How do you reduce your exposure? Listen to hear some ideas!
Resources Mentioned Retirement Readiness Review Subscribe to the Retire with Ryan YouTube Channel The 5-Step Portfolio Process, Ep #17 Daily Treasury Yield Curve Rates Schwab Value Advantage Money Fund® SPDR® Portfolio Aggregate Bond ETF SPDR® Portfolio Long Term Treasury ETF Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact


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