Mailbag: Retirement Planning With Separate Bank Accounts

Today’s Prep:

From managing your income as a contract employee to managing your income in retirement, Eric answers three questions from the mailbag in today’s episode of the podcast.

Equipping Points:

On today’s show we have three questions from the mailbag all about managing their money well. How can you get the greatest advantage from your income, be it in retirement or in your working years? Find out what Eric has to say in response to these three listener questions.

Anthony from Coralville has an option to go from a full-time employee to an independent contractor. He’d make more money but would lose benefits and the company retirement plan. Is it worth making the switch? What kind of risk will be shifted onto you? Eric talks about the key things to consider when deciding.

Maria in Marshalltown and her husband have separate bank accounts and don’t really know about each other’s spending habits. How can they make a retirement plan together? Her husband will have a pension in retirement and she won’t. Will their separate accounts make retirement planning together more difficult? Eric shares what your retirement income may look like and how you can continue to cover your expenses. What do you need and how can you get the most advantage out of your accounts?

Simon in Norwalk is retiring soon but worried about the tax burden with all of his money in IRAs and a 401(k)s. How can he lessen his tax burden in retirement? If the tax rate gets raised, you will have to pay higher taxes when you withdraw from those funds. What would it look like to do a Roth conversion instead?

Listen to the entire episode or click on the timestamps below to skip ahead to a particular question.

0:47 – Mailbag: Should I switch to work as an independent contractor?

3:44 – Mailbag: Can we have separate bank accounts but still plan for retirement together?

5:33 – Does having separate accounts make it harder to plan for retirement?

6:35 – Mailbag: How can I lessen my tax burden in retirement?

 

Today’s Takeaway:

When you retire, you have the most control over the tax rate you’ve ever had.

-Eric Peterson

Related Resources:

Estate & Legacy Planning FAQs

Mailbag: Should I Use My Severance Package to Pay Off the House?

Managing Your Risk Aversion

More From Eric:

The host: Eric Peterson - Contact - Call: (515) 226-1500

Subscribe To The Podcast:

Apple Podcasts  -  Google Podcasts  -  Spotify  -  Stitcher  -  iHeartRadio  -  TuneIn

Check out some other recent episodes

What Is Lazy Money?

November 7, 2024

What is lazy money and why do you want to not have too much of it in your retirement portfolio? Simply put, lazy money is money that isn’t growing as much as it could be. Having your money grow and work for you is a key part of building a solid portfolio, so Eric breaks down some strategies to help get the most out of your money in this episode.

Read More

Retirement Planning Today Is Harder Than It Used To Be

October 31, 2024

Retirement planning simply isn’t the same as it used to be. From changes in life expectancy, the lack of pensions, and getting caught in the sandwich generation, there’s a lot to keep in mind when putting together your financial plan. Instead of taking advice from others who may have retired in a different era, it’s important to understand what strategy is right for you.  

Read More

Social Security Variables That Impact Your Claiming Strategy

October 24, 2024

After so many years of paying into Social Security, you might feel ready to reap the benefits. But before you get too eager, it’s best to have a thorough understanding of the different variables and how to best leverage them.

Read More

Retirement Real Estate Decisions: Downsizing, Snowbirding, and More

October 17, 2024

One of the key discussions you may have in retirement is what to do about the house. Should you downsize your home? Pay it off early? Buy a vacation home and become a snow bird? Eric emphasizes the importance of considering not just the financial implications but also the lifestyle changes each of these decisions entail. Weighing out the pros and cons of each decision can highlight what is right for you (which isn’t always the same as what your neighbor is doing).

Read More

Healthcare in Retirement

October 10, 2024

One major (yet often overlooked!) expense in retirement is healthcare. Especially if you are retiring early, healthcare can be a huge expense as you bridge the gap between your working years and when eligible for Medicare. Not only will you have an increased monthly cost, but you may need to budget for additional medical costs as time goes on or even long-term care needs.

Read More

Family Matters When It Comes to Finances

October 3, 2024

Today we talk about what happens in a family, particularly when someone has passed away and the financial impact that can have.

Read More

Water Wheels and Retirement Planning

September 26, 2024

Have you ever wondered how a water wheel can relate to your retirement planning? It might seem like an odd comparison, but in today’s podcast, Eric breaks down this fascinating analogy and its significance in maintaining a stable financial future.

Read More

Most Common Retirement Planning Mistakes

September 19, 2024

We all make mistakes from time to time. But what if your financial mistakes could be avoided with just a little insight? Eric shares some of the most common retirement planning mistakes people are prone to make and what you can do to save yourself from heartache.

Read More

Common Complaints About Financial Planning

September 12, 2024

When it comes to planning for retirement, the relationship you have with your financial advisor is crucial. Many people express common complaints about their financial advisors, from taking on too much risk to paying high fees or a lack of communication. In today’s podcast, Eric sheds light on these concerns and offers valuable insights to help you navigate your financial journey.

Read More

Navigating Spousal Disagreements in Retirement Planning

September 5, 2024

Inside a marriage, retirement planning is a journey that ideally involves both partners working together towards a common goal. However, as with any significant life decision, disagreements can arise. Eric sheds light on some of the most common spousal disagreements regarding retirement and offers practical advice on how to navigate them.

Read More

Leave a Comment