Retire Today

Jeremy Keil
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In the Retire Today podcast, Jeremy Keil, CFP®, CFA® shows you how to turn your retirement savings into retirement income. Listen in as Jeremy and his guests guide you towards making smarter retirement, investment, and tax planning decisions. Get free resources and learn how to have Jeremy and his team develop your own Retire Today income plan at 5stepRetirementPlan.com. For important disclosures, see www.keilfp.com/disclosures Keil Financial Partners may utilize third-party websites, including social media websites, blogs, and other interactive content. We consider all interactions with clients, prospective clients, and the general public on these sites to be advertisements under the securities regulations. As such, we generally retain copies of information that we or third parties may contribute to such sites. This information is subject to review and inspection by

  1. 3 days ago

    Investing Myths Retirees Still Believe

    Some of the most tempting retirement investing mistakes begin with ideas that sound perfectly reasonable: move to cash when the market looks expensive, put everything in CDs while rates are attractive, leave stocks behind once you retire, or rely on dividend stocks for income. The problem is that each approach can allow one concern or prediction to dictate an entire investment strategy. Jeremy Keil answers five listener questions about investing in retirement. The surprising truth about retirement investing is that many questions are answered more clearly by re-focusing on when you'll need the money and what you need it to accomplish, rather than predictions about what markets, interest rates, or individual investments will do next. For disclosures and conflicts visit keilfp.com/disclosures.

  2. 25 Aug

    3 Retirement Decisions Nobody Prepares You For

    3 Retirement Decisions Nobody Prepares You For Retirement can change how you approach life insurance, mortgages, income, and investments. Jeremy Keil answers three financial questions retirees may not expect to face. https://youtu.be/H4WXLWLuHi0 When people think about retirement planning, oftentimes they naturally think about their investment portfolio, Social Security, or taxes. Those are important parts of the plan, but after helping hundreds of people retire, I’ve found that some of the questions that cause the most confusion aren’t about the stock market at all. They’re questions like: What should I do with an insurance policy I’ve owned for decades? How do I prove my income to a mortgage company when I don’t receive a paycheck anymore? Can I find an investment that provides the principal protection I want while also receiving capital-gains tax treatment? These questions can catch retirees by surprise because the financial world doesn’t always work the same way after you retire. The specific answers will vary based on your circumstances, but all three illustrate a broader principle I think is essential to good retirement planning: Don’t begin with a financial product. Begin with the problem you’re trying to solve. Question #1: What Should I Do With an Old Whole Life Insurance Policy? “I’ve been paying premiums on my whole life insurance policy for decades now that I’m retired and my kids are financially independent. Should I keep paying for it? Does it make more sense to cash it in?” This is a great example of how a financial product can outlive the original reason you purchased it. If you bought life insurance decades ago when your children were young, you may have needed the death benefit to protect your family financially. Now you’re retired, your children are financially independent, and that need may no longer exist. That doesn’t necessarily mean the policy no longer has value. The first thing I’d want to confirm is exactly what type of policy you own. I’ve had people tell me they have whole life insurance when the policy was actually converted to universal life decades earlier. The guarantees, premiums, interest, and other characteristics can differ, so start by understanding what you actually own. From there, I would generally evaluate three possibilities. Option 1: Surrender the Policy Cashing in the policy may be the simplest solution. You’re finished paying premiums and can use the cash value elsewhere. But don’t make that decision without looking at the tax consequences. If the policy’s cash value exceeds the amount you’ve paid into it, surrendering it may produce taxable income. On the other hand, I’ve worked with a client whose situation was essentially the reverse: he had put about $50,000 into an older policy whose remaining value had fallen close to zero. Rather than simply surrendering the policy and losing the potential usefulness of that cost basis, we contacted the insurance company and the company holding an existing non-IRA annuity. We determined that the policy could be exchanged into that annuity, allowing the cost basis to transfer with it. That’s a more complex example, but it illustrates why I don’t like making these decisions based solely on whether someone still “needs life insurance.” There may be tax consequences attached to a policy you’ve owned for decades. Option 2: Keep the Policy At the other end of the spectrum, keeping the policy may make sense even if the death benefit isn’t particularly important to you anymore. I’ve seen older whole life policies credit interest in the 3% to 4% range. If your alternative is putting the same money into a bank account, it’s worth comparing what the existing policy is actually providing. There may also be tax characteristics worth considering. The growth within the policy can be tax-deferred, and if the policy ultimately pays a life insurance death benefit to the beneficiaries, that death benefit is generally received income-tax-free under the circumstances I described. The point isn’t that everyone should keep an old whole life policy. It’s that you should evaluate the policy you actually own before assuming it’s obsolete. Option 3: Find a Middle Ground There can also be an option between surrendering the policy and continuing exactly as before. With one recent client, we evaluated the amount they had paid into the policy and the growth that had accumulated. We took out the cost basis and left the accumulated interest in the policy. Then we asked the insurer about reducing the paid-up insurance amount so the client wouldn’t have to continue paying premiums at the same level. That allowed us to address several different objectives rather than forcing the decision into a simple “keep it or cash it in” choice. When evaluating an old permanent life insurance policy, I’d want to understand at least: What type of policy do you actually own? How much have you paid into it? What is its current cash value? What interest or dividends is it currently producing? What happens from a tax standpoint if you surrender it? Do you still need the death benefit? Can the policy be modified if you don’t want to continue paying premiums? The answers can tell you much more than simply asking whether you still need life insurance. Question #2: How Do I Prove Income After My Paycheck Stops? “Now that we’re retired, we don’t have paychecks anymore. If we want to rent an apartment or apply for a mortgage, how do we prove our income when most of our money is in retirement accounts?” This problem surprises a lot of financially secure retirees. I’ve worked with people who have millions of dollars on their investment statements and still encounter a bank telling them they don’t have enough income to qualify for a loan. It sounds ridiculous. But there’s an important practical distinction: lenders and landlords are accustomed to evaluating income, especially wages. A large investment account doesn’t necessarily fit neatly into the same underwriting process. I’ve seen this firsthand. One client had about $100,000 sitting at a bank and wanted to borrow a couple hundred thousand dollars from that same institution. The bank said they couldn’t afford the loan. We moved the $100,000 from the bank savings account to a brokerage money market account, where it was also earning a better rate. Then we established a $3,000 monthly distribution from that account. After two months of showing that predictable income, the bank was satisfied and approved the mortgage. The client’s underlying financial position hadn’t suddenly improved. We had simply created the kind of income trail the lender knew how to evaluate. Create the Paper Trail Before You Need It The larger lesson here is to plan ahead. If you know you’re going to need a mortgage, it may be easier to apply while you’re still working and have W-2 income. If you expect to sell your house and rent an apartment after retirement, find out what the landlord will require before you make the move. You may be able to establish systematic monthly distributions from your assets to demonstrate the income they’re looking for. Retirement doesn’t necessarily mean you lack the resources to qualify. But you may need to present those resources differently once the traditional paycheck disappears. Question #3: Is There a “Safe” Investment That Produces Capital Gains? “Is there a safe investment that produces capital gains instead of ordinary income so I can keep my taxes lower?” I understand exactly what this listener is trying to accomplish. Long-term capital gains may receive more favorable federal tax treatment than ordinary income. So it’s reasonable to wonder whether you can combine the principal protection you might associate with something like a CD with the potentially preferable tax treatment of a long-term capital gain. The problem is that those characteristics generally don’t go together. Investments that can produce capital gains involve the possibility that the asset’s value can decline. That possibility of loss is part of investing. Products designed around principal guarantees or similar protections generally produce returns taxed as ordinary income rather than capital gains. That’s why I wouldn’t begin by searching for a product that somehow combines the two. I’d change the question. What problem are you actually trying to solve? Are you trying to lower your taxes? Protect your principal? Protect your income? Generate a particular return? Those are different objectives, and they may require different tools. Start With the Problem, Not the Product That principle ties all three listener questions together. With the life insurance policy, the answer isn’t automatically to surrender it simply because you no longer need as much insurance. You first need to understand the tax characteristics, interest, cost basis, and options available within the existing policy. With a mortgage, the problem isn’t necessarily that you don’t have enough money. The problem may be demonstrating income in the format a lender expects. And with investments, searching for a product that provides every desirable characteristic can distract you from identifying the financial objective you’re actually trying to accomplish. This is one reason I use a five-step retirement planning process. A good process gives you a framework for making decisions when retirement presents a financial question you weren’t expecting. Financial products are tools. First determine what you’re trying to build. Then decide which tool belongs in your hand. Don’t forget to leave a rating for the “Retire Today” podcast if you’ve been enjoying these episodes! Subscribe to Retire Today to get new episodes every Wednesday. Apple Podcasts: https://podcasts.apple.com/us/podcast

  3. 18 Aug

    What Does It Mean to Win at Retirement?

    What does a successful retirement look like? Jeremy Keil explores how financial independence, spending, lifestyle, and personal priorities can shape what it means to win at retirement. https://youtu.be/FVbs7kVxOzw When you picture someone who has “won” at retirement, what do you see? Maybe it’s someone taking beach vacations, belonging to a golf club, buying the boat they’ve always wanted, or finally moving into the house they’ve spent years dreaming about. Those can all be wonderful ways to enjoy the money you’ve worked hard to accumulate. But after working with hundreds of retirees, I’ve started wondering whether those things are really what determine who feels successful in retirement. Consider two very different retirees. One never earned more than $80,000 in a year. The other consistently earned around $300,000. If I told you nothing else about them, which one would you expect to enjoy retirement more? The answer isn’t nearly as obvious as the difference in their incomes might suggest. Two Very Different Paths Into Retirement To illustrate the difference, I’m using two composite stories based on situations I’ve encountered over the years. The names, numbers, ages, and other details have been changed, but the contrasting approaches to money are ones I’ve seen many times. The first retiree never earned more than about $80,000 in a year. They saved consistently, paid off their mortgage, accumulated some rental real estate, and eventually built an investment portfolio worth roughly 10 times their annual income. The second earned around $300,000 a year. Their job frequently produced bonuses, and those bonuses often became opportunities to enjoy the money—a new car, a boat, or a different kind of vacation. They retired in a very nice neighborhood, still have a mortgage, and accumulated investments worth roughly five times their final salary. Both retired. Both accumulated meaningful financial resources. Neither person’s retirement should be judged simply by looking at a balance sheet. But their retirement priorities look very different. With the first retiree, a good portion of our time might be spent talking about grandkids and cruises. With the second, the financial question might be whether moving from an already nice neighborhood into an even nicer one is possible without cutting other expenses they don’t want to give up. Neither set of priorities is inherently right or wrong. What interests me is what those differences tell us about the relationship between wealth and retirement satisfaction. Income and Wealth Aren’t the Same Thing One reason I find these contrasting stories so interesting is that they remind me of The Millionaire Next Door. I’m a big fan of the book, and its authors identified several lifestyle characteristics that they found were conducive to accumulating wealth. Among them were living well below your means, allocating your time, energy, and money in ways that help build wealth, and believing financial independence is more important than displaying high social status. Those principles help explain why someone’s salary doesn’t necessarily tell you very much about their financial independence. A person earning $80,000 who consistently spends less than they earn and accumulates assets can ultimately have greater financial flexibility than someone earning $300,000 whose lifestyle rises along with their income. That’s an important distinction as you approach retirement because your paycheck eventually stops. The lifestyle you’ve built doesn’t. If maintaining your lifestyle requires most of the income you earn while you’re working, replacing that lifestyle in retirement may require substantial resources. If you’ve spent decades living comfortably below your means, the transition can look very different. Financial Independence Can Look Surprisingly Ordinary It’s easy to associate wealth with visible signs of success. A bigger house, a newer vehicle, expensive hobbies, and elaborate vacations are things we can see. Financial independence is harder to see. You can’t necessarily tell whether someone’s mortgage is paid off by driving past their house. You don’t know how much they’ve saved by looking at their car. You certainly can’t determine how financially comfortable they feel in retirement based on what they earned during their career. That’s one reason I think the idea of “winning” at retirement deserves more thought. If your definition of success is primarily based on what other people can see, there’s always another level available. There’s another neighborhood, another car, another vacation, another upgrade. Financial independence offers a different measuring stick. Instead of asking how your lifestyle compares with someone else’s, you can ask whether your resources allow you to spend your time, energy, and money on the things that matter to you. Define the Win Before You Retire I don’t have a universal definition of winning at retirement. In fact, I don’t think there should be one. For one person, winning might mean traveling frequently. For someone else, it might mean spending more time with grandchildren. The transcript examples include cruises, real estate, nicer neighborhoods, cars, boats, and vacations because those are all ways people may choose to use their resources. The important question isn’t which choice looks most impressive. It’s whether the retirement you’ve built matches what you actually value. That’s why I think this is a useful question to consider before you retire: What would have to be true for you to feel like you’ve won at retirement? If you’re approaching retirement, think about what you’re genuinely looking forward to. If you’re already retired, look back and consider what has actually made retirement feel successful. Your answer may have something to do with money. Financial independence certainly matters. But after working with hundreds of retirees, I’m increasingly interested in what happens after we’ve answered the financial questions. Once you know you have enough, what are you hoping that money allows you to do? Don’t forget to leave a rating for the “Retire Today” podcast if you’ve been enjoying these episodes! Subscribe to Retire Today to get new episodes every Wednesday. Apple Podcasts: https://podcasts.apple.com/us/podcast/retire-today/id1488769337  Spotify Podcasts: https://bit.ly/RetireTodaySpotify About the Author: Jeremy Keil, CFP®, CFA is a retirement financial advisor with Keil Financial Partners, author of Retire Today: Create Your Retirement Income Plan in 5 Simple Steps, and host of the Retirement Today blog and podcast, as well as the Mr. Retirement YouTube channel. Jeremy is a contributor to Kiplinger and is frequently cited in publications like the Wall Street Journal and New York Times. Additional Links: Buy Jeremy’s book – Retire Today: Create Your Retirement Master Plan in 5 Simple Steps “The Millionaire Next Door” by Dr. Thomas Stanley and Dr. William Danko Connect With Jeremy Keil: Keil Financial Partners LinkedIn: Jeremy Keil Facebook: Jeremy Keil LinkedIn: Keil Financial Partners YouTube: Mr. Retirement Book an Intro Call with Jeremy’s Team Media Disclosures: Disclosures This media is provided for informational and educational purposes only and does not consider the investment objectives, financial situation, or particular needs of any consumer. Nothing in this program should be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell, or hold any security or to adopt any investment strategy. The views and opinions expressed are those of the host and any guest, current as of the date of recording, and may change without notice as market, political or economic conditions evolve. All investments involve risk, including the possible loss of principal. Past performance is no guarantee of future results. Legal & Tax Disclosure Consumers should consult their own qualified attorney, CPA, or other professional advisor regarding their specific legal and tax situations. Advisor Disclosures Alongside, LLC, doing business as Keil Financial Partners, is an SEC-registered investment adviser. Registration does not imply a certain level of skill or expertise. Advisory services are delivered through the Alongside, LLC platform. Keil Financial Partners is independent, not owned or operated by Alongside, LLC. Additional information about Alongside, LLC – including its services, fees and any material conflicts of interest – can be found at https://adviserinfo.sec.gov/firm/summary/333587 or by requesting Form ADV Part 2A. The content of this media should not be reproduced or redistributed without the firm’s written consent. Any trademarks or service marks mentioned belong to their respective owners and are used for identification purposes only. Additional Important Disclosures

  4. 11 Aug

    The Retirement Tax Mistake That Could Cost You Thousands

    Retirement tax planning requires more than minimizing this year’s taxes. Learn how Roth conversions, inherited IRAs, and charitable giving can affect your lifetime tax strategy. https://youtu.be/iANLKaHoBqw One of the biggest financial mistakes you make in retirement might have nothing to do with your investments. You could follow the tax rules correctly, file every return on time, avoid penalties, and still end up paying more in taxes than you needed to over the course of your retirement. I’ve been a financial advisor for more than two decades, and many of the tax questions I hear start with the same concern: What does the IRS require me to do? That’s an important question. You certainly want to understand the rules. But following the rules doesn’t necessarily tell you which decision is best for your retirement. The better question is often: How will the decision I make this year affect my taxes five, 10, or 20 years from now? Three recent listener questions illustrate why that distinction matters. Question #1: Does a Roth Conversion Start a New Five-Year Clock? “I’ve had a Roth IRA for more than 20 years, but I recently did my first Roth conversion. Does this conversion start a brand new five year clock or am I already covered because I’ve had a Roth IRA for so long now?” The confusing part of this question is that there isn’t just one Roth IRA five-year rule. There are two different five-year rules to consider, and they apply to different types of money. The first applies to earnings. I referenced IRA expert Ed Slott’s description of this as the “five-year forever” rule. Once the Roth IRA has met that five-year requirement and you’re over age 59½, the earnings can come out tax-free. Conversions work differently. If you’re under 59½, each Roth conversion has its own five-year clock associated with taking those converted funds back out without the 10% penalty. That clock begins with the tax year of the conversion. Once you’re 59½, that particular conversion rule is no longer an issue in the same way. It also helps to understand the order in which Roth IRA distributions are treated: Contributions come out first. Conversions come out next. Earnings come out last. Those distinctions matter if you expect to withdraw money from the Roth IRA relatively soon. They can also be one reason to establish a Roth IRA earlier rather than waiting until immediately before you expect to use it. The larger planning lesson is that “the five-year rule” isn’t specific enough. You need to know which five-year rule applies, what type of Roth money you’re withdrawing, and your age when you withdraw it. Question #2: Should I Take More Than the Minimum From an Inherited IRA? “I inherited an IRA from my mom. Should I just take the required minimum distribution each year, or would it ever make sense to take more than I have to?” This is where following the minimum requirement can be very different from developing a tax strategy. Under the situation described by the listener, required minimum distributions may need to continue, while the inherited IRA is also subject to the 10-year rule. That can create a temptation to simply take the minimum amount each year and deal with whatever remains later. But “minimum” tells you what you have to take. It doesn’t necessarily tell you what you should take. Imagine you’re currently in a relatively low-income tax year. Intentionally distributing more from the inherited IRA could allow you to recognize that taxable income while your tax situation is more favorable. Now consider the opposite situation. Perhaps you’re currently in a high-income year, but you expect your income to decline soon. Taking only what’s required today may make more sense. The important point is that you can’t evaluate the decision by looking at this year’s tax return alone. You need to project forward. If you leave a large balance until the end of the 10-year period and that final distribution happens to coincide with retirement, a business sale, a large bonus, or another high-income event, you may have created a much larger tax problem simply by postponing the decision. That’s why tax projections are part of Step 3 of my Retirement Master Plan process. I want to identify potentially lower-tax years ahead of time and evaluate whether intentionally recognizing income during those years could improve the overall plan. Question #3: Can I Make a Qualified Charitable Distribution From an Inherited IRA? “Can I make qualified charitable distributions directly from an inherited IRA or does it only work for my own IRA?” For someone who meets the age requirements described in the transcript, qualified charitable distributions can be made from an inherited traditional IRA as well as from your own traditional IRA. A qualified charitable distribution, or QCD, sends money directly from the IRA to an eligible charity. You don’t receive a charitable deduction for that distribution, but the amount doesn’t show up as income on your tax return. As I explained in answering the listener’s question, that distinction can matter because income can affect other areas of your retirement finances, including how Social Security is taxed and Medicare IRMAA surcharges. A QCD from an inherited IRA can also count toward applicable required distributions. For someone who is already charitably inclined and meets the requirements, that can make the QCD more than a charitable giving decision. It becomes another piece of the retirement tax strategy. Don’t Plan Your Retirement Taxes One Year at a Time Roth conversions, inherited IRA distributions, and charitable giving can sound like three unrelated subjects. They’re connected by the same planning principle. Your objective shouldn’t simply be to pay the least amount of tax possible this year. You need to consider your lifetime tax bill. There may be years when intentionally recognizing more taxable income makes sense because of what you expect in the future. There may be other years when postponing income is the better decision. The important thing is to make those choices intentionally rather than automatically choosing whatever produces the smallest tax bill today. That’s why I believe good retirement tax planning requires looking beyond the current tax return. Following the rules keeps you compliant. Planning ahead helps you decide how to use those rules as part of your retirement strategy. Don’t forget to leave a rating for the “Retire Today” podcast if you’ve been enjoying these episodes! Subscribe to Retire Today to get new episodes every Wednesday. Apple Podcasts: https://podcasts.apple.com/us/podcast/retire-today/id1488769337  Spotify Podcasts: https://bit.ly/RetireTodaySpotify About the Author: Jeremy Keil, CFP®, CFA is a retirement financial advisor with Keil Financial Partners, author of Retire Today: Create Your Retirement Income Plan in 5 Simple Steps, and host of the Retirement Today blog and podcast, as well as the Mr. Retirement YouTube channel. Jeremy is a contributor to Kiplinger and is frequently cited in publications like the Wall Street Journal and New York Times. Additional Links: Buy Jeremy’s book – Retire Today: Create Your Retirement Master Plan in 5 Simple Steps Ed Slott, IRAHelp.com  “5 RMD Mistakes That Could Cost You Big-Time in Retirement” – Mr. Retirement YouTube Channel “QCDs: The Tax-Smart Way to Give in Retirement” – Mr. Retirement YouTube Channel Create your retirement master plan in 5 simple steps at 5StepRetirementPlan.com  Connect With Jeremy Keil: Keil Financial Partners LinkedIn: Jeremy Keil Facebook: Jeremy Keil LinkedIn: Keil Financial Partners YouTube: Mr. Retirement Book an Intro Call with Jeremy’s Team Media Disclosures: Disclosures This media is provided for informational and educational purposes only and does not consider the investment objectives, financial situation, or particular needs of any consumer. Nothing in this program should be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell, or hold any security or to adopt any investment strategy. The views and opinions expressed are those of the host and any guest, current as of the date of recording, and may change without notice as market, political or economic conditions evolve. All investments involve risk, including the possible loss of principal. Past performance is no guarantee of future results. Legal & Tax Disclosure Consumers should consult their own qualified attorney, CPA, or other professional advisor regarding their specific legal and tax situations. Advisor Disclosures Alongside, LLC, doing business as Keil Financial Partners, is an SEC-registered investment adviser. Registration does not imply a certain level of skill or expertise. Advisory services are delivered through the Alongside, LLC platform. Keil Financial Partners is independent, not owned or operated by Alongside, LLC. Additional information about Alongside, LLC – including its services, fees and any material conflicts of interest – can be found at https://adviserinfo.sec.gov/firm/summary/333587 or by requesting Form ADV Part 2A. The content of this media should not be reproduced or redistributed without the firm’s written consent. Any trademarks or service marks mentioned belong to their respective owners and are used for identification purposes only. Additional Important Disclosures

  5. 4 Aug

    How Much Money Is Enough to Retire?

    How much money do you need to retire? Learn why an arbitrary retirement savings target may keep you working longer than necessary—and how to determine what “enough” actually means for your retirement. https://youtu.be/kHyhns6PHnA Over my 23 years as a financial advisor, I’ve heard many people attach their retirement date to a specific dollar amount. “I’ll retire when I get to $2 million.” For someone else, the number might be $500,000, $1 million, or $10 million. The amount varies, but the thinking is often the same: Once my investment accounts reach that number, I’ll finally feel comfortable enough to retire. There’s nothing wrong with having a retirement savings goal. The problem comes when that goal isn’t based on what your retirement will actually require. I’ve seen people accumulate more than enough money to support the retirement they want and continue working because they haven’t reached an arbitrary number. I’ve also seen something else happen: They reach the number they thought would make them comfortable, only to decide they need even more. That’s why “How much do I need to retire?” is the wrong question if you’re only looking for an account balance. The better question is: What does my money actually need to do for me in retirement? When $1 Million Wasn’t Enough About 10 years ago, I worked with a client who was convinced they needed $1 million before they could retire. I took them through the retirement planning process and ran the calculations. Based on their goals, Social Security income, and the income available from their investments, my conclusion was that they didn’t need to wait for $1 million. They already had enough resources to retire. They disagreed. They were adamant that retirement wasn’t happening until the account reached $1 million. I couldn’t convince them otherwise, so I started keeping an eye on the balance. Eventually, they reached exactly $1 million. I called with the news: You made it. You can finally retire. Their answer was essentially, “Now I need $2 million.” The financial finish line had moved. They eventually did retire, but it wasn’t because they reached $2 million or because another retirement projection finally persuaded them. They retired after having a heart attack. Fortunately, they survived, and their health wasn’t significantly affected. But their experience illustrates why I think it’s so important to define “enough” based on what your retirement actually requires rather than waiting for a number to make you feel ready. Your Retirement Number Should Come From Your Retirement There’s an interesting postscript to that client’s story. About 10 years after they originally told me they needed $1 million, they have more than $1.5 million and are withdrawing only about $2,000 per month from their investments. Using the rough 4% to 5% withdrawal range I referenced when looking back at their situation, a portfolio of approximately $500,000 to $600,000 would support that level of withdrawals. Think about the difference between those numbers. Before retirement, they believed $1 million wasn’t enough. Once they reached $1 million, they decided they needed $2 million. Yet their actual retirement lifestyle has required considerably less from their portfolio. That doesn’t mean $500,000 or $600,000 is the right retirement number for you. It doesn’t mean $1 million is too much, either. The point is that none of those numbers means much until you connect it to the retirement you’re trying to fund. Your retirement plan needs to account for the income you expect from Social Security and your investments, along with the goals and spending those resources need to support. Only then can an investment balance begin to tell you whether you have enough. Be Careful of a Moving Finish Line There is a psychological component to this that shouldn’t be ignored. I referenced research showing that when people are asked how much they need to feel rich, the answer is often about 25% more than they currently have. Once they accumulate more, the target moves again. I see a similar tendency around retirement. If you’ve spent decades saving and watching your accounts grow, accumulating more feels productive. Another year of work means another year of earnings, another year of contributions, and potentially another year of investment growth before you begin taking withdrawals. The tradeoff is that another year of work is also another year you’re not retired. That may be a perfectly reasonable trade if you enjoy your work or if your retirement calculations show that you need the additional resources. But it’s a very different decision if you’re staying in a job you don’t enjoy simply because you’ve attached retirement to a number that keeps moving. There will almost always be a financial argument for having more money. That doesn’t mean more money will materially improve the retirement you’re actually going to live. Put Your Retirement Number Through the Math If you already have a retirement number in your head, I don’t think you need to throw it away. I think you need to test it. Start with the amount you believe you need. Then run that number through an actual retirement calculation and determine what your resources need to provide. Your analysis should help answer questions such as: How much income will your retirement lifestyle require? How much of that income will come from Social Security? How much will need to come from your investments? Does the amount you’ve accumulated support the retirement goals you’ve identified? The answer could tell you that your original target isn’t enough. If that’s what the math shows, that’s valuable information to have before you retire. But the calculation could also show that you’ve been waiting for $2 million when your retirement plan doesn’t require $2 million. That’s valuable information, too. Knowing You Have Enough Is Part of the Retirement Plan For people who have been disciplined savers for 30 or 40 years, reaching retirement can create an unusual problem. You’ve spent your career measuring financial progress by how much you’ve accumulated. It’s natural to assume that a larger balance means you’re better prepared. But retirement changes the purpose of the money. The objective is no longer simply to make the account as large as possible. The money you’ve accumulated now has to support the life you’ve been preparing to live. That’s why I don’t believe “How much is enough?” can be answered with a universal retirement number. Your number should be connected to your income, your goals, your spending, and the retirement you’re trying to create. And once you’ve done that work, you may discover that the most important retirement calculation isn’t determining how much more you need to accumulate. It’s recognizing when you already have enough. Don’t forget to leave a rating for the “Retire Today” podcast if you’ve been enjoying these episodes! Subscribe to Retire Today to get new episodes every Wednesday. Apple Podcasts: https://podcasts.apple.com/us/podcast/retire-today/id1488769337  Spotify Podcasts: https://bit.ly/RetireTodaySpotify About the Author: Jeremy Keil, CFP®, CFA is a retirement financial advisor with Keil Financial Partners, author of Retire Today: Create Your Retirement Income Plan in 5 Simple Steps, and host of the Retirement Today blog and podcast, as well as the Mr. Retirement YouTube channel. Jeremy is a contributor to Kiplinger and is frequently cited in publications like the Wall Street Journal and New York Times. Additional Links: Buy Jeremy’s book – Retire Today: Create Your Retirement Master Plan in 5 Simple Steps How much money do you think you need to have saved in order to retire? Email me with your answer: podcast@keilfp.com  “I’m 62 with $2M in Retirement: How do I get more income and pay less taxes?” – Mr. Retirement YouTube Channel “Can I Retire on $1 Million?” – Mr. Retirement YouTube Channel “Top 2 Strategies to MAXIMIZE your $250,000 Retirement Savings!”  – Mr. Retirement YouTube Channel “62 with $500K in Retirement: How Long Will My Money Last?”  – Mr. Retirement YouTube Channel Connect With Jeremy Keil: Keil Financial Partners LinkedIn: Jeremy Keil Facebook: Jeremy Keil LinkedIn: Keil Financial Partners YouTube: Mr. Retirement Book an Intro Call with Jeremy’s Team Media Disclosures: Disclosures This media is provided for informational and educational purposes only and does not consider the investment objectives, financial situation, or particular needs of any consumer. Nothing in this program should be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell, or hold any security or to adopt any investment strategy. The views and opinions expressed are those of the host and any guest, current as of the date of recording, and may change without notice as market, political or economic conditions evolve. All investments involve risk, including the possible loss of principal. Past performance is no guarantee of future results. Legal & Tax Disclosure Consumers should consult their own qualified attorney, CPA, or other professional advisor regarding their specific legal and tax situations. Advisor Disclosures Alongside, LLC, doing business as Keil Financial Partners, is an SEC-registered investment adviser. Registration does not imply a certain level of skill or expertise. Advisory services are delivered through the Alongside, LLC platform. Keil Financial Partners is independent, not owned or operated by Alongside, LLC. Additional information about Alongside, LLC – including its services, fees and any material conflicts of interest – can be found at https://adviserinfo.sec.gov/firm/summary/333587 or by requesting Form ADV Part 2A. The content of this media

  6. 28 Jul

    Social Security Questions Married Couples Ask Before Retirement

    Choosing when to claim Social Security can have a lasting impact on your retirement income, but many retirees make this decision without fully understanding how the rules work. In this Q&A episode, Jeremy Keil answers three listener questions that uncover some of the most common Social Security misconceptions facing married couples. Jeremy explains why your retirement date and your Social Security claiming date are two separate decisions, how poor health should factor into your planning, and why survivor benefits often deserve more attention than the higher earner's own benefit. He also clarifies common confusion around spousal benefits, outdated claiming strategies, and the way delayed retirement credits are actually applied after full retirement age. Whether you're approaching retirement or helping a spouse make these important decisions, this conversation offers practical guidance to help you coordinate your retirement plan and make more informed Social Security choices. For disclosures and conflicts visit keilfp.com/disclosures.

  7. 21 Jul

    300th Episode Special: The Biggest Retirement Lessons I’ve Learned Featuring Nicole Gebhardt

    Three hundred episodes into the Retire Today podcast, the microphone is turned around as author and business strategist Nicole Gebhardt interviews Jeremy Keil about the journey that shaped his retirement philosophy and the framework behind his book, Retire Today: Create Your Retirement Master Plan in 5 Simple Steps. Rather than focusing on a single retirement topic, Jeremy shares the evolution of his business, the development of the "Mr. Retirement" brand, and the mindset shifts that matter most for people approaching retirement. He explains why so many successful savers struggle to become confident spenders, why retirement planning is as much about psychology as it is about numbers, and how learning the math behind retirement decisions creates confidence to retire on your own terms. As the Retire Today podcast celebrates its 300th episode, Jeremy reflects on lessons learned from working with thousands of retirees and explains why thoughtful planning isn't about predicting the future—it's about creating the flexibility to enjoy it. For disclosures and conflicts visit keilfp.com/disclosures.

  8. 14 Jul

    Is the Healthcare System Working Against You? With Dr. Jordan Grumet

    Healthcare is one of the biggest expenses retirees face, yet few people understand how the system behind their care actually works. Jeremy Keil welcomes physician, hospice doctor, and author Dr. Jordan Grumet to discuss the ideas behind his new book, The Healthcare Heist. Discover how financial incentives have reshaped modern healthcare, the growing influence of private equity, and why patients and providers often feel caught in a system that prioritizes business interests over care. Dr. Grumet explains the differences between physician-owned practices and corporate healthcare systems, discusses direct primary care and concierge medicine, shares his perspective on Medicare Advantage versus traditional Medicare with supplemental coverage, and offers guidance for becoming a more informed healthcare consumer. Healthcare aside, hear why Dr. Grumet rejects the traditional definition of retirement and what he's learned since beginning the decumulation phase of his own financial life. For disclosures and conflicts visit keilfp.com/disclosures.

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About

In the Retire Today podcast, Jeremy Keil, CFP®, CFA® shows you how to turn your retirement savings into retirement income. Listen in as Jeremy and his guests guide you towards making smarter retirement, investment, and tax planning decisions. Get free resources and learn how to have Jeremy and his team develop your own Retire Today income plan at 5stepRetirementPlan.com. For important disclosures, see www.keilfp.com/disclosures Keil Financial Partners may utilize third-party websites, including social media websites, blogs, and other interactive content. We consider all interactions with clients, prospective clients, and the general public on these sites to be advertisements under the securities regulations. As such, we generally retain copies of information that we or third parties may contribute to such sites. This information is subject to review and inspection by

Information

  • Creator
    Jeremy Keil
  • Years Active
    2019 - 2026
  • Episodes
    293
  • Rating
    Clean
  • Copyright
    © Retire Today All Rights Reserved
  • Show Website
    Retire Today

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