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Retire With Ryan

Retire With Ryan

By: Ryan R Morrissey
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 If you’re 55 and older and thinking about retirement, then this is the only retirement podcast you need. From tax planning to managing your investment portfolio, we cover the issues you should be thinking about as you develop your financial plan for retirement. Your host, Ryan Morrissey, is a Fee-Only CERTIFIED FINANCIAL PLANNER TM who lives and breathes retirement planning. He’ll be bringing you stories and real life examples of how to set yourself up for a successful retirement.2020 Retirewithryan.com. All Rights Reserved Economics Personal Finance
Episodes
  • Retirement Reality Check, with Michael Sheldon #256

    Retirement Reality Check, with Michael Sheldon #256
    Jun 3 2025
    This week on the show, I’m joined in person by investment veteran Michael Sheldon, who brings over 26 years of experience in the financial services industry. We dig into essential strategies for investing as you approach and enter retirement, covering asset allocation, diversification, income planning, and how to handle inevitable market volatility. Whether you’re a pre-retiree, a recent retiree, or just looking to strengthen your investment approach, Michael offers some great actionable insights designed to help you build a resilient portfolio and stay on track toward your long-term financial goals. You will want to hear this episode if you are interested in... [04:52] Portfolio risk should change as you age, becoming more conservative in retirement.[09:34] Why US large-cap stocks have outperformed recently.[14:13] Pros and cons of target date funds, including fees, asset allocation, and international exposure.[16:07] Michael warns against chasing high-yield dividend stocks.[18:51] Private equity/real estate and understanding the liquidity and risks.[31:15] Building income streams, reducing volatility, and portfolio standard deviation as you near retirement.[43:18] Why maintaining discipline through corrections is key to investment success. Strategies to Weather Market Ups and Downs Any successful investment journey begins with a clear financial plan. Michael emphasizes the importance of understanding your spending needs in retirement. This process often starts with creating a detailed budget. A thorough assessment of current and expected future expenses helps determine the appropriate rate of return necessary to achieve your retirement goals. Once you have a handle on your budget, you can set a target allocation that aligns your risk tolerance with your required investment returns. Your personal plan should factor in not only your goals and time horizon, but also your comfort level with market volatility. Balancing Risk and Opportunity As you move closer to retirement, adjusting your asset allocation becomes increasingly important. Younger investors can often afford to be more aggressive, allocating a larger portion (often 70% - 100%) to equities, since they have time to recover from market downturns. However, those approaching or in retirement generally benefit from more conservative portfolios, emphasizing capital preservation. A common rule of thumb discussed was to maintain 3 - 5 years of living expenses in cash or short-term bonds. This buffer allows retirees to weather market downturns without selling equities at a loss. Still, every investor is different. Some retirees, especially those with higher risk tolerance or substantial resources, may maintain large allocations to equities. The key is to structure your portfolio to ensure you can meet your expenses even during extended market declines. Don’t Chase Home Runs The conversation stressed the dangers of seeking the next “big winner” stock. Instead, the focus should be on diversification, owning a broad mix of asset classes and geographies. While the past decade has seen U.S. large-cap growth stocks outperform other areas, this may not always be the case. International markets, small-cap stocks, and value stocks each tend to outperform at different points in the economic cycle. Proper diversification can help reduce risk and smooth out returns, preventing the common mistake of buying high and selling low. It’s wise to avoid concentrating your portfolio too heavily in a single sector, country, or investment style. Beyond Chasing High Dividends One of the big myths in retirement investing is the need to load up on high-dividend-paying stocks for income. Michael cautioned against focusing solely on high yields, as these companies might carry more risk or have unsustainable business models. Instead, look for companies with a solid history of gradually increasing their dividends, which indicates healthy cash flows and business stability. Active vs. Passive Management and Cost Considerations The debate between active and passive management continues. For broad U.S. markets, low-cost index funds and ETFs have outperformed most active managers over time, thanks to lower costs and automatic portfolio updates. Increasingly, investors are turning to ETFs for their tax efficiency, tradability, and lower fees compared to traditional mutual funds. As with any investment, understanding fees and their impact on long-term returns is vital. The Power of Discipline Finally, Michael shares a valuable perspective on market volatility. Historically, the S&P 500 has experienced average intra-year declines of over 14%, yet finished positive in 76% of years since 1980. Volatility is normal, and patient investors are rewarded for staying invested. Resources Mentioned Retirement Readiness ReviewSubscribe to the Retire with Ryan YouTube ChannelDownload my entire book for FREE Vanguard Barron’sTheStreet.com Blackstone and ...
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    48 mins
  • Breaking Down the FERS Retirement System for Federal Employees, #255

    Breaking Down the FERS Retirement System for Federal Employees, #255
    May 27 2025
    On this week’s episode, I’m discussing the Federal Employees Retirement System, or FERS, a program that covers nearly all civilian federal workers. If you’re a federal employee curious about when you’re eligible to retire, how your pension is calculated, what the Thrift Savings Plan offers, or how special early retirement and survivor benefits work, this episode is your go-to resource. We’re breaking down the three key components of FERS: your Basic Benefit Plan (a pension), Social Security, and the Thrift Savings Plan, as well as important details like cost-of-living adjustments and tax considerations. Whether you’re just starting your federal career or planning your retirement right now, you’ll get practical insights to help you make the most of your retirement benefits. You will want to hear this episode if you are interested in... [00:00] I share an overview of how FERS provides federal employees' retirement benefits.[05:02] Your basic benefit plan is calculated using the highest average salary over three consecutive years, often the final service years.[09:52] Federal employees retiring at 55-57 receive a FERS supplement until age 62, calculated by years of service/40 times the estimated Social Security benefit.[11:41] Benefits include cost-of-living adjustments for those 62+ or in special roles, aligned with consumer price index increases.[14:52] FERS survivor benefits are available if the deceased had at least 10 years of service. What is FERS, and Who Does It Cover? As one of the most significant employment sectors in the United States, the federal government supports over 3 million workers, the majority of whom participate in the Federal Employees Retirement System (FERS). If you're a federal employee, understanding FERS is vital to planning a comfortable and financially secure retirement. The Federal Employees Retirement System (FERS) is the primary retirement plan for U.S. civilian federal employees hired after 1983. According to the Office of Personnel Management, FERS provides retirement income from three sources: 1. The Basic Benefit Plan (a pension).2. Social Security.3. The Thrift Savings Plan (TSP), similar to a private sector 401(k). FERS covers different federal professionals, from law enforcement and firefighters to engineers, analysts, and other administrative roles. Special provisions exist for high-risk positions such as air traffic controllers and certain law enforcement officers, which affect their benefit calculations and retirement age. When Can You Retire Under FERS? Retirement eligibility under FERS primarily depends on age and years of credible service. The key term here is Minimum Retirement Age (MRA), which varies based on birth year, from 55 for those born before 1948 to 57 for workers born in 1970 or later. Retirement options include: Age 62 with 5 years of service.Age 60 with 20 years of service. MRA with 30 years of service.MRA with 10 years of service (MRA+10), though benefits are reduced by 5% for each year under age 62. Early retirement is available in some situations, such as involuntary separations or major agency reorganizations. In those cases, eligibility can be as early as age 50 with 20 years of service or at any age with 25 years of service. Calculating Your Basic Pension Benefit The FERS pension is calculated using your “high-3” average salary, the highest three consecutive years of basic pay, usually your last three years. The formula generally provides 1% of your high-3 salary for each year of government service (increases to 1.1% if you retire at 62 or older with 20+ years). Special categories, like federal law enforcement or air traffic controllers, receive 1.7% for the first 20 years and 1% thereafter. For example: If you retire at 57 with 30 years of service and your high-3 average is $165,000: - 30 years x 1% = 30% - $165,000 x 30% = $49,500 annual pension The FERS Supplement Since some federal employees retire before they’re eligible for Social Security (age 62), FERS includes a Special Retirement Supplement. This bridges the income gap until you can claim Social Security, calculated as: Years of service ÷ 40 x age-62 Social Security benefit For example, with 30 years of service and a projected Social Security benefit of $2,500 per month, the supplement would be $1,875 per month from retirement until age 62. Understanding FERS is essential for federal workers considering retirement. Regularly reviewing your retirement strategy, estimating future benefits, and taking advantage of financial planning resources can help you maximize your retirement security. Resources Mentioned Retirement Readiness ReviewSubscribe to the Retire with Ryan YouTube ChannelDownload my entire book for FREE US Office of Personnel Management (OPM) FERS Information Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan
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    19 mins
  • Four Costly Mistakes to Avoid When Claiming Social Security While Working After 65, #254

    Four Costly Mistakes to Avoid When Claiming Social Security While Working After 65, #254
    May 20 2025
    Thinking about collecting Social Security while you’re still working? It’s a tempting option, but there are several crucial mistakes you’ll want to avoid. Using real-life stories, I’m laying out the four big pitfalls, like earning over the social security limit, jeopardizing your health savings account, mishandling Medicare enrollment, and forgetting about tax withholding. These missteps can lead to unnecessary penalties, and so I want to give some actionable strategies to help you make the most of your benefits without unpleasant surprises. You will want to hear this episode if you are interested in... [00:00] Four key factors to consider before collecting Social Security while you’re still working.[06:04] Collecting benefits while working can affect HSA contributions.[07:40] Stop HSA contributions six months before enrolling in Medicare Part A to avoid penalties.[13:32] Enrolling in Medicare Part B while having employer insurance is unnecessary, as employer coverage remains primary.[14:33] Medigap timing and social security taxes.[15:21] Social Security is taxable income for most people, which means that you will owe income tax on that money. Choosing when and how to collect Social Security is complex, especially if you intend to keep working beyond age 62. While the prospect of “double-dipping” might seem appealing, several critical factors can impact your overall benefit, tax situation, and healthcare coverage. Here are the four big mistakes I often see: 1. Exceeding the Social Security Earnings Limit One of the biggest mistakes is not understanding the earnings limit set by Social Security for those who collect benefits before reaching their full retirement age (FRA). If you start taking benefits before your FRA, which currently ranges from 66 to 67 depending on your birth year, your benefits may be reduced if your annual earnings exceed a certain threshold. Before FRA: For every $2 you earn over this limit, Social Security will deduct $1 from your benefits.The year you reach FRA: The limit jumps to $62,160, but the calculation changes to $1 withheld for every $3 over the limit, and only the months before your birthday month are counted.After FRA, there is no longer an earnings cap; you can earn as much as you want without reducing your benefits. Failing to plan for these restrictions can lead to a surprise clawback, so calculate your annual income carefully if you plan to collect early. 2. Losing Eligibility to Contribute to an HSA If you’re enrolled in a high-deductible health plan and are contributing to a Health Savings Account (HSA), be wary: Once you enroll for Social Security after age 65, you’re automatically enrolled in Medicare Part A. By law, you cannot contribute to an HSA while on Medicare. To make matters more complex, Medicare Part A enrollment is retroactive up to six months, and any contributions made to your HSA during that period will be considered excess contributions, exposed to a 6% IRS penalty unless withdrawn in time. Before you trigger Social Security benefits, stop your HSA contributions (and your employer’s) at least six months in advance to avoid penalties and the loss of valuable tax deductions. 3. Accidental Enrollment in Medicare Part B Some assume that enrolling in Medicare Part B is required or beneficial while they keep their employer coverage, but that’s not always the case. If your employer has 20 or more employees and you’re covered under their group health insurance, your employer’s plan remains primary, and Medicare Part B is unnecessary and costly, with premiums starting at $185/month and higher for high earners. Enrolling in Part B during this period can limit your future ability to buy a Medigap policy with automatic acceptance (no health questions or exclusions for pre-existing conditions). Unless you’re losing employer coverage, it’s usually best to delay enrolling in Part B and carefully respond to any enrollment communications from Social Security. 4. Not Withholding Enough Taxes on Social Security Payments Social Security benefits are taxable for most retirees, especially if you’re still working. You need to anticipate the added income and withhold sufficient federal (and potentially state) taxes to avoid underpayment penalties. You can file IRS Form W-4V to have Social Security withhold federal tax from each payment, choosing between 7%, 10%, 12%, and 22%. Alternatively, increase withholding at work or make estimated tax payments. Planning ahead ensures you won’t face a large bill come tax time. Resources Mentioned Retirement Readiness ReviewSubscribe to the Retire with Ryan YouTube ChannelDownload my entire book for FREE Connect With Morrissey Wealth Management www.MorrisseyWealthManagement.com/contact Subscribe to Retire With Ryan
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    18 mins

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