Ep. 195 – Looking Ahead for 2023
In 2023, we’re committed to adding a lot of value with the information we’re putting out through this podcast.
In this episode of the Secure Your Retirement podcast, we look ahead at what we’ve prepared for you in 2023 over a glass of finely filtered water. We list some things to look forward to in our 2023 content, including the Secure Act 2.0, trust, social security strategies, IRMAA, tax planning, and quarterly updates.
Listen in to learn more about our lineup and the 2023 tax updates you cannot afford to miss.
In this episode, find out:
- The Secure Act 2.0 – changes on RMDs, ages, and other things affecting your retirement plan.
- Who needs trust – walking you through the idea of trust and the documents you need to have in place.
- Social security strategies – what is the best age to take social security?
- IRMAA – walking you through what you need to think around your Medicare Parts B& D.
- Tax planning – the 2023 updates on the rules and guidelines around tax.
- Quarterly updates with Andrew Opdyke.
- “Social security is a complicated factor around the idea of when is the best time to take it.”– Radon Stancil
- “Social security and Medicare go hand in hand, and you want to understand what IRMAA is.”– Murs Tariq
If you are in or nearing retirement and you want to gain clarity on what questions you should be asking, learn what the biggest retirement myths are, and identify what you can do to achieve peace of mind for your retirement, get started today by requesting our complimentary video course, Four Steps to Secure Your Retirement!
To access the course, simply visit POMWealth.net/podcast.
Here’s the full transcript:
|Radon Stancil:||Welcome everyone to Secure Your Retirement podcast. Today is the day that we all look forward to. We have Morgan with us on the show, and when you have Morgan on the show, you know it’s called our Wine Down. But here’s the thing, before she introduces the drink of choice today, just to remind you, Morgan and I have been doing this challenge, might want to call it that. It’s 75 days of craziness where we’ve been working out a couple of times per day. One of them has to be outside. One big part of this particular deal was that we could have no alcohol for 75 days, so we’ve done our Wine Downs, really, with a different type of drink. Today, Morgan, what is our drink of choice?|
|Morgan Dunn:||Sure. Today we’re featuring the agua del filtro. It’s The finest that we could find here from our very highly technical filtered water system. So it’s water.|
|Morgan Dunn:||Yeah. It’s good. It’s drinkable. It pairs well with everything. You really could even take a bath in it.|
|Radon Stancil:||Oh, boy. I tell you. Hey, this is our last one of these, by the way. We are free to have us a glass of wine starting in February, so we’ll be back with our normal Wine Down or wine of the month. But, today, we’re going to really kind of be looking at some of the topics for 2023. Morgan, could you give us a little bit of an outline of some of the topics, and then we’ll dive right into our first one.|
|Morgan Dunn:||Sure. We’re going to be covering five today. The Secure Act 2.0. Who needs a trust? That’s going to be an interview. Social Security Strategies. Number four is going to be tax planning updates with all the updated numbers from 2023. And then also a quarterly update with Andrew Opdyke.|
|Radon Stancil:||Yeah, hey, just to set this up, what we’re doing is, this is a look ahead type of podcast. We wanted to set up some of the things that are coming so you can be on the lookout for them. That’s the whole purpose of this. We’ll jump right in. What’s your first one there, Morgan?|
|Morgan Dunn:||The first one is the Secure Act 2.0. I know we covered the first one last year, but what is this one?|
|Murs Tariq:||I’ll set this one up. The original Secure Act was passed in 2020, and that changed some of the rules as far as RMDs and things like that. We talked a lot about that, and the RMD went from age 70 and a half to 72. Just as we started to get used to that, last year, December 29th, Congress passed the Secure Act 2.0. I’m not going to give you all the details, but RMDs are changing in a significant manner that we are going to want to understand, especially if you were close or if you were turning 72 this year, you’re definitely going to want to listen to this one. Basically, RMDs, the age is changing again. Those-|
|Radon Stancil:||Did you say what RMDs are?|
|Murs Tariq:||RMDs. Yeah, good point, Radon. RMDs: Required Minimum Distribution. The government puts a requirement on pre-tax dollars like IRAs, traditional 401ks, 457, basically any account that you haven’t paid taxes on that you’ve deferred as a retirement plan. At some point, the government said that, “We’ve given you tax breaks, and, eventually, we’re going to force you to start withdrawing on these accounts.” That is the Required Minimum Distribution. Again, it used to be age 70 and a half, then it moved to 72, and now Secure Act 2.0 is going to change that number all over again, but it’s in our favor. It’s delaying it a little bit more, either at age 73 or 75, so you’re going to want to pay attention to that one when we roll it out.|
|There’s also things that have changed with the Secure Act 2.0, like the penalty on the RMD has gone down, so that’s a good thing. We never want to miss an RMD, but we want to understand how we can make it up and the penalties around it. Catch-Up Contributions. That’s a big one for a lot of people that are the age of 50 and up that are trying to do as much as they can to save into various retirement accounts. Those numbers have changed, as well. There’s a whole list of things that the Secure Act 2.0 brings to the table. I’ll tell you, it was released only a few weeks ago, at the end of December, so we’re still kind of deciphering what all that means. I think it’s a 4,000-page document. That episode is going to be power packed. Be sure to stay tuned for that one.|
|Radon Stancil:||Yeah, Murs is going to do that as a research project, read all 4,000 pages and be ready for it.|
|Morgan Dunn:||Another topic that we’re going to be discussing is, who needs a trust? And that will be via an interview with Andres from Trust and Wills.|
|Radon Stancil:||We have had him on before, but we want to revisit it. We’ve had a lot of questions, and Murs and I are huge at our firm about making sure that you have all the estate planning documents in place that you need. In fact, for all of our clients that we work with, we provide this service at no cost to them. We cover the cost ourselves so that they can have a trust, a will, a power of attorney, a healthcare power of attorney, a HIPAA form, all of these documents should be in place. Everybody knows they need a will. At least they should know they need a will. They need a power of attorney, a healthcare power of attorney, and even a HIPAA form.|
|But the question comes up, at what point, and why, and how, and all the different things around a trust, why do I need that? Do I need that? Does that make it more complicated? We’ve had enough questions around this idea of, “Do I need a trust?”, we thought it would be good to have Andres back on, and let’s just walk through, what are the mechanics? What’s the difference between a trust and a will? Are there things within my estate plan that I need to have in place to say, “This now requires a trust?” What type of trust do I need? Because there’s different types of trusts. We’re going to walk through exactly what that looks like, and we’re going to make sure that we make a big point there, again, what are the documents I need to have in place and why?|
|Morgan Dunn:||All right. And then another topic is going to be Social Security strategies, and within that, a couple of different areas. One being what is the best age?|
|Murs Tariq:||Social Security strategies is a huge, huge topic, and I think this will end up being at least one episode, maybe a few. But one, Morgan, on what is the best age? If you go to our YouTube channel or back to the podcast that we originally did of comparing Social Security of 65 versus 62. Radon, how many views does that thing have right now?|
|Radon Stancil:||I think it’s close to 300,000.|
|Murs Tariq:||Yeah, 300,000 views on YouTube. We want to update that, because that was a couple years ago. The question is still the same, but the way we may look at it may be a little bit different. But we’re definitely going to talk about from a perspective of how do we answer the question of what is the best age to be taking Social Security. I think that’s a full episode in itself.|
|Morgan Dunn:||And then to an interview with Heather Schreiber.|
|Radon Stancil:||Yeah. Now, Heather is a consultant that we have hired. Heather, she knows the ins and outs of everything we should do around Social Security. We’ve had her on, and one of the strategies that she talked about was just really, really awesome. She said, “Hey, you’ve got to have me back on to talk about this other strategy.” We want to make sure that we walk through some of these different potential issues that could come up around Social Security. Because Social Security is a complicated factor around this idea of when’s the best time to take it? We’re going to have her back on and dive, I mean, just go into detail of all of these different ideas and strategies around Social Security.|
|Morgan Dunn:||I think another topic we were going to cover there is the IRMAA for 2023, all the updated thresholds for the year.|
|Murs Tariq:||With Social Security and Medicare kind of go hand in hand, and you want to understand what IRMAA is. I wish I could tell you exactly what the IRMAA stands for, but we will have it for you on that podcast when we put that episode out. But it’s basically a premium on your Medicare Parts B and D, and it’s subject to what your income is. We’ll walk you through all of that. We did a great episode on it last year, but those numbers change year to year, so we want to make sure you have the most current information. So we’re walking through what IRMAA is, and what you want to be thinking around it.|
|Morgan Dunn:||And then, of course, the big part of retirement planning is tax planning, so we’ll have a topic on all those updated 2023 numbers.|
|Radon Stancil:||In 2023, a lot of the different contribution levels, thresholds, all of that changed. What we want to do is walk through all of the 2023 numbers, meaning how much can you contribute to a traditional? How much can you can contribute to a Roth? What are the 401k contributions? There’s some new things that have come about within the updated rules that allow employers, now, to contribute their part on a Roth side of things if they choose to do so. Also, the idea of doing Roth conversions. All of that we want to take into account. Honestly, the tax conversation will probably be a multi-layered conversation.|
|In that particular update, too, we’re going to have one of the CPAs that we’ve partnered with come on, and we’re going to interview him as well, just to make sure that we’re all up to date on all of these new guidelines and rules, so that we’re doing the best we can in 2023. Because, I think everybody is concerned about their returns when it comes to investments, but right there, neck and neck, is how much am I going to pay in taxes? We think that’s going to be a very big episode, probably multi-layered.|
|Morgan Dunn:||All right. Another one to consider is our quarterly updates with Andrew Opdyke.|
|Murs Tariq:||Yeah. We know that you guys love listening to Radon and I talk about various different topics, but we like to have guests on the show, and Andrew Opdyke has been a regular on our show. He’s an economist with a company called First Trust Investments, a very large investment company, and we are always happy to have him on whenever we can get him on. He’s a very busy person. But the way that he talks about the economy, the way that he explains things and, basically, tells a story that really anyone can grasp is why we like to get him back as often as we can. Our goal is to try to get him somewhat on a quarterly basis to walk us through all the things that are at the top of our minds, especially right now in 2023, where inflation is at, the debt ceiling, the potential of recession coming up, and where the market is headed for the year and going forward. As much as we can get him in, we know that you guys love to hear from him, so be looking forward to an interview, a nice one, with Andrew Opdyke.|
|Radon Stancil:||The plan there with Andrew is that we’ll have him on every quarter, so you’ll look for him at the end of the first quarter, so he’ll be on the first of April, in that timeframe, again, as Murs said, as we can get him scheduled. That, basically, is going to be all throughout the year, that we’ll have him on. That’s the goal, and they’ve committed to allowing us to be able to have him for those interviews.|
|Well, that has wined us on down to the end of our having to not have wine episode. But we hope this has been beneficial. We have a blog written on this, just kind of with all these things listed out, as well. We hope that we’re going to be able to add a lot of value to the year here in 2023.|
|If you’d like to have a conversation with myself or Murs, please go to the website, top right-hand corner, click on Schedule a Call. Our calendar comes up. You can just easily click on it. Schedule that call. We’d be glad. It’s complimentary. No obligation. We’ll answer any questions that we possibly can. But thank you so much for coming on and listening to us. We look forward to talking to you again next Monday.|