Today’s Prep:
Do you know about the changes proposed in the SECURE Act 2.0? Eric shares a few of the highlights as well as his thoughts on the changes.
Equipping Points:
Today on the podcast, we discuss the SECURE Act 2.0. While we have talked through the SECURE Act in the past, this is a whole new set of changes should it get passed. Which of these will play the biggest role in impacting your financial future?
When it comes to required minimum distributions (RMDs), the age only just recently changed to 72. With the SECURE Act 2.0, it could be pushed back even further to age 75. If that happens, who does this help? Remember, you can take the money out sooner than 75. This would just change when you are required to take it out. But what will this mean for your heirs?
Another element of the proposed SECURE Act 2.0 is allowing employers to auto-enroll their employees in a 401(k) program. This could have a big impact in helping people prepare for retirement, especially at a young age. This would change from an opt-in system for a 401(k) to more of an opt-out system if you didn’t want to participate.
There are a number of other possible changes. Catch-up contributions may be expanded. Matching contributions could be an option for people paying of school loans. In both cases, your future self benefits. A national database is also being proposed to track down lost accounts like 401(k)s and pensions.
Remember, all of these have yet to be passed. Have a conversation with your financial advisor to see how these could impact your financial plan.
Use the timestamps below to skip ahead or listen to the entire episode to hear more about the SECURE Act 2.0.
0:46 – What is the SECURE Act 2.0?
1:06 – What could be the new RMD age?
4:03 – Employers could auto-enroll employees in 401(k) program.
5:56 – Catch-up contributions would be extended.
7:38 – Matching funds on student loan payoffs.
9:32 – A national database could be started for lost accounts.
11:31 – What does Eric think about these possible changes?
Today’s Takeaway:
“The more you can save for retirement, the better your retirement is.“
-Eric Peterson
Related Resources:
Understanding The SECURE Act, Part 1
Understanding The SECURE Act, Part 2: Stretch IRAs
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Do You Have These Blind Spots In Your Retirement Plan?
Many people can have a couple of “blind spots” so to speak when it comes to their retirement plans. Do you worry you may not be accounting for everything you might need for your retirement? Then today’s episode is perfect for you!
Read MoreInside Out: How We Can Look at Finances Through the Characters of Pixar’s Latest Flick
There can be a lot of emotions when it comes to investing and planning for retirement. And what better way to discuss those emotions than through the characters of Pixar’s latest film, Inside Out 2?
Read MoreThe Importance of Preventative Care
Preventative care isn’t just for your health; it’s essential for your financial well-being too. By consulting a financial advisor early and often, you can avoid financial distress and make informed decisions that lead to a secure and fulfilling retirement. Many people will put it off for fear they will be told something they don’t want to hear or because of the perceived costs of financial advisors.
Read MoreRetirement Income
When planning for retirement, one of the most critical aspects to consider is your income. But what does this mean, and how can you ensure you have enough income to cover your needs and desires?
Read MoreFinancial Wisdom from Mark Twain
In the latest episode of the Retirement Ready Podcast, Eric invites us to explore the timeless wisdom of Mark Twain and how it applies to modern financial planning. Mark Twain, known for his wit and keen observations, offers quotes that are surprisingly relevant to today’s financial landscape. Eric takes these quotes and translates them into practical advice for those planning their retirement.
Read MoreUnderstanding Bonds in Today’s Market
Are bonds really the safe investment we’ve always been told they are? What percentage of assets should a retiree or pre-retiree hold in bonds? In today’s episode, Eric addresses some of his most frequently asked questions about the world of bonds…
Read MoreUnderstanding Your Financial Statements
Financial statements can often feel like a foreign language, filled with jargon and numbers that seem to have little relevance to your everyday life. However, understanding these documents is crucial for effective retirement planning. In the latest episode of the Retirement Ready Podcast, Eric breaks down the essentials of reading and interpreting your financial statements.
Read MoreFrom Graduation to Retirement
This one goes to the grads! Whether you know someone graduating high school, college, or even preschool, graduation marks a new stage and season in life. Similarly, retirement is a new chapter in life. It’s a time of change, celebration, and sometimes, uncertainty. On today’s show, we talk through the similarities between leaving school and entering retirement.
Read More