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The second-largest bank collapse in US history occurred on March 10th, 2023 at Silicon Valley Bank. Two days later, Signature Bank experienced the third-largest collapse. In the wake of these financial shockwaves, people are concerned about the impact of these events on their retirement funds. On this episode, I’m breaking down how banks default, what happened with SVB and Signature Bank, and how you can protect your money from failing banks. You will want to hear this episode if you are interested in... Digging into the recent banking debacle [2:16] Understanding bank defaults [6:03] Protecting yourself from failing banks [8:33] The impact of bank defaults on retirement funds [11:19] Understanding a financial disaster If you’ve had access to the news at any point in the last few weeks, you’ve probably seen that California-based Silicon Valley Bank (SVB) and New York City-based Signature bank experienced the second and third-largest banking collapses in U.S. history, respectively. SVB predominantly served the tech companies and venture capital funds that Silicon Valley is known for. That niche led to $140 billion in unusual growth between Q1 of 2020 and Q1 of 2022.  As you may already know, the money banks safeguard doesn’t lie dormant. Financial institutions use the funds to make investments, like the U.S. savings bonds SVB had their money in. Due to the recent historic and meteoric rise in interest rates, the value of savings bonds has dropped well below their initial value. As a result, SVB’s investors began demanding their money. All while the struggling tech companies SVB services were in desperate need of more funding, causing the bank to sell more of these treasuries at a loss. The perfect storm created enough concern for the bank’s stability that companies pulled their money out left and right. SVB collapsed within 48 hours because it could not meet the estimated $42 billion demands of its patrons. Keep your money safe The collapse of a bank is not something you see every day. In fact, zero banks collapsed in 2021 and 2022, and only four collapsed between 2019 and 2020. Even though banking defaults are unlikely, the small chance has many people wondering how to keep their money safe. Especially their retirement funds. It’s estimated that 94% of SVB depositors were over the $250,000 per person per bank FDIC limit. Many of the bank's clients were large companies that used the institution for payroll. If the Federal Reserve hadn’t allowed that limit to be exceeded as of March 13th, we would be looking at a banking catastrophe. The best way to protect yourself from failing banks is to know the $250,000 FDIC limit. That means spouses are jointly insured for up to $500,000 of deposited funds. If you have more than that, you should double-check your bank’s limit and switch if they can’t accommodate your financial situation. The long-term impact of these events on retirement funds should be minimal. However, the short-term impact is still being felt as volatile markets ride a rollercoaster in the aftermath. Listen to this episode for more on the recent banking defaults and how you can keep your money safe! Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact

Do you need a redo on your Social Security? If you started collecting your benefits too early or spent the money too quickly: fear not! Your retirement isn’t ruined. On this episode, I’m answering a listener question and discussing three ways you can have a do-over with your Social Security benefits. You will want to hear this episode if you are interested in... Can you get a Social Security do-over?[1:34] The power of delayed benefits [3:01] How to get a lump sum Social Security payout [5:07] Back to the drawing board Choosing when to start collecting Social Security benefits can be tough. Not every answer is right for every retiree. In general, I recommend that single people with a reasonable benefit or the highest-earning spouse in a relationship delay their benefits until age 70. This is because, between full retirement age and age 70, you’re earning an extra 8% credit for every year that you wait to start collecting. But what happens if you don’t wait? What if you’re like one of our listeners who started collecting benefits at 62, but now they have a job offer and are considering returning to work? Thankfully, there are three ways you can get a redo with your Social Security. Second chances One way to rewind the clock on Social Security is to pay it all back. Social Security allows you to start over by paying back everything within 12 months of collecting your initial benefits. If your spouse is collecting a spousal benefit off of you, or if you have minor children who receive a benefit, you will have to repay that as well. If you elected to have Medicare Part B or D coverage, those premiums would need to be paid directly because they typically are deducted from your Social Security check.  Usually, people don’t wait until they turn 70 to start collecting Social Security benefits because they are afraid they won’t live until then. The good news is studies show retirees that make it to their full retirement age have a 95% chance of making it to age 70. The other good news is the little-known lump sum option that Social Security recipients have at their disposal. By waiting up to six months after your full retirement age, you can receive a lump sum payment of up to 6 months of benefits. Knowing that you could collect that lump sum at any time if needed can act as a mental safety net while you wait to reach age 70. Listen to this episode for more on getting a do-over with Social Security! Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact

Healthy finances are only one side of retirement planning. Healthy living also needs to be a priority for every retiree. On this episode, I sit down with Nancy Schwartz of Envision Healthy Retirement to discuss how to live a healthy lifestyle in retirement, get the most out of a post-career world, and create a lasting legacy. You will want to hear this episode if you are interested in... How Nancy got involved with retirement health and the importance of good sleep [1:17] Redefining purpose in retirement [7:41] Steps to take leading up to retirement [15:15] How Nancy’s programs help others transition into healthy retirement [19:24] Redefining purpose Moving from a full-time career to healthy retirement is a huge shift. Not just in our schedule but in our identity. You’ve likely spent decades developing your values and strengths inside of a career. The good news is that everything you've worked so hard for comes with you in retirement. Nancy says a healthy retirement is about refocusing all of your knowledge and skill into something bigger than yourself. That could look like becoming a mentor, leaning into a philanthropic role, or even board work. It doesn’t matter who you are. Retirement can be about rediscovering joy and the passion to give back and support others. For those approaching retirement, the idea of doing any more work after crossing the finish line of a long and productive career may seem ludicrous. If it’s not a sandy beach or golf course, you probably don’t want to be there. That’s normal. But in my experience, most retirees are out of that phase within 12 months. Human beings need purpose! And retirement is the perfect opportunity to redefine yours. Nancy talks about leaning into excitement and curiosity to discover what that might look like for you personally. After all, everyone is different. No two retirements will look alike. Prioritizing retirement health When you spend thirty to forty years working in a high-stress, high-demand corporate job, you may discover that your health has taken a hit. This is exactly where Nancy found herself when she was quickly approaching retirement. It also became apparent to her that most retirement courses focused on the tactical and strategic side of things. They left out important lifestyle aspects that impact our longevity and aging process. Retirement planning isn’t just about finances, although that is a major part of it. Equally important is our health and how we take care of ourselves to maximize the years we have left. This is why Nancy's retirement planning programs have a huge emphasis on health and lifestyle. Her 12-week course is a proprietary science-based program focused around personal growth. One key area of that course is time. Just as professionals need to use time blocking to stay organized, retirees can structure their time to ensure the engagement of mind, body, and soul. She also helps retirees plan for the non-financial financial aspects of retirement planning like wills, trusts, and healthcare proxies. Nancy’s holistic approach to retirement is refreshing, and I hope you all check out the soon-to-be-released online course through her website.  Resources Mentioned Envision Healthy Retirement  Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact

Over the last year, I’ve heard a lot of buzz about using alternative investments to boost portfolios. However, most people don’t know you need to be an accredited investor to take advantage of these opportunities. On this episode, I’m breaking down alternative investments, how to become an accredited investor, and my personal thoughts on investing outside normal investment accounts. You will want to hear this episode if you are interested in... What is an alternative investment? [0:54] How to qualify as an accredited investor [5:48] My thoughts on alternative investments [7:33] Understanding alternative investments The world of investing is vast. There are tons of things you can put your money into and hope for a quality return. Typically, people invest in what is known as registered investments. These include stocks, bonds, mutual funds, ETFs, and stock options. There are requirements that companies have to go through to register an investment so that investors can perform their own due diligence. Registered investments tend to lack the element of surprise because they have been around for a while, and there is a good deal of information on them. However, certain non-registered investments are considered alternative investments and may offer greater diversification and returns than traditional investment options. Alternative investments are broken into five main categories: hedge funds, private capital, natural resources, real estate, and infrastructure. Because these investments are much riskier than traditional investments, the government requires you to be an accredited investor before pouring your money into them. The qualifications of an accredited investor Why limit who can make alternative investments? Authorities want to make sure that the people buying them are financially stable and experienced. They want to make sure you are informed about the risk involved in these ventures. And if there were to be a loss, they want to ensure it won't be catastrophic. The truth is a complete loss of your money in a private placement is very possible. If you're buying high-quality stocks, mutual funds, or ETFs, you're never going to wake up one day and find out that it has gone to zero. But if you invest in a private placement, there's a strong likelihood that could happen, and your investment could be completely worthless. However, if high risk and high reward entices your investment dollars, you need to follow these requirements to become an accredited investor. According to Rule 501 of Regulation D issued by the SEC, a person must have an annual income exceeding $200,000 or $300,000 jointly for the last two years to become an accredited investor. They also need the expectation of earning the same or higher income in the current year. Additionally, you can be considered an accredited investor if you have a net worth exceeding $1 million, excluding your primary residence. Listen to this episode for more on becoming an accredited investor! Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact

Can the Government Decide to Tax Roth Accounts?, #137 Listeners of the show know I love utilizing Roth accounts for retirement savings when it makes sense for the given situation. But one listener is concerned that the government will decide to start taxing Roth distributions after years of building up their Roth 401k. On this episode, I’ll give you my take on the taxability of Roth accounts as well as helpful retirement savings information for those who use them. You will want to hear this episode if you are interested in... Will Roth accounts be taxed? [1:29] Exploring the taxability of matching Roth 401k contributions [5:33] How the Secure Act 2.0 changed the catch-up contribution for Roth accounts [6:52] Final thoughts [10:29] Getting down to brass tax Studies show a roughly 30% increase in companies offering the Roth 401k as an option for employees to save for retirement. Many people take advantage of Roth accounts for their obvious benefits. Mainly the fact that Roth accounts are not pre-tax accounts. Meaning you pay taxes on any money you put into a Roth account upfront, that money grows tax-deferred while it sits, and then you can withdraw the money tax-free. It’s a great way to save for retirement if you don’t want to worry about taxes on the back end. But this sweet setup has one listener wondering if Congress could decide to pass laws requiring Roth account distributions to be taxed? The short answer is yes. The U.S. government could pass any law it wants. There’s also a precedent for it, considering Social Security was not taxable until Congress voted to change it in the 80s. However, while a similar change to Roth accounts is possible, I do not believe it’s likely. Traditional retirement accounts are tax-deferred, so the government has to wait until the money is distributed to get their tax revenue. Considering where the national debt is at, it feels unwise to attack an option that gets the U.S. Treasury its money upfront. Recent congressional changes to Roth accounts Another reason I think it’s unlikely that the government will choose to tax Roth accounts on the back end is all of the positive changes made towards them in the recently passed Secure Act 2.0. One positive step for Roth 401ks is that you can now receive the vested amount of your 401k match for the Roth account into the Roth account. Previously, employer match contributions had to be placed into a traditional 401k even if the initial contribution was put into a Roth. Those looking to take advantage of putting matching contributions into a Roth 401k should remember that Roth accounts are not pre-tax accounts. So any contributions, including matching ones, will need the tax paid upfront.  Additionally, the Secure Act 2.0 made a significant change for catch-up contributions, which allow people over 50 to add up to $7,500 to their standard 401k contribution of $22,500. Starting in 2024, if you are an employee that earns over $145,000, you will not be able to make the catch-up contribution on a pre-tax 401k basis. However, catch-up contributions can still be made to a Roth 401k with the taxes paid upfront. For more on the taxability of Roth accounts, listen to this episode! Resources Mentioned 9 Ways The Secure Act 2.0 Can Impact Your Retirement, #133 Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact

I bonds were one of the hottest investments of 2022. But lower interest rates have one listener wondering if they are still worth a spot in her portfolio? On this episode, I’ll break down what I bonds are, why they took off in 2022, if they are still worth it in 2023, and potential investment alternatives. You will want to hear this episode if you are interested in... What is an I Bond? [1:40] Why I bonds were one of the hottest investments of 2022 [3:50] The benefits and restrictions of I bonds [5:55] How to buy I bonds [8:34] Are I bonds still a good investment? [9:55]  Exploring I bond alternatives [12:18] Breaking down I bonds Before we can determine if I bonds are still a sound investment in 2023, we need to understand what they are. An I bond is a U.S. government savings bond. Government bonds are considered one of the safest investments you can make because of the U.S. democratic system’s stability and payment history. We have never defaulted on any of our payments. The “I” in I bond stands for inflation, and the interest you receive from the bond has two components.  The first part is a fixed rate determined when you purchase the bond. Currently, the fixed rate is sitting at 0.40%. The second part of the bond is tied to a measurement of inflation known as the Consumer Price Index Urban (CPI-U). Every May 1st and November 1st, an interest rate is determined for the I bond based on changes in the CPI-U over the previous six months. Adding both numbers together will determine what percentage of interest you will earn for the year. What are the pros and cons? There are several perks to investing in I bonds. You don’t pay interest on the bonds while they are deferred. Meaning the interest that you receive just gets added to the value of the 30-year bond. They also typically have a higher interest rate than most checking or savings accounts. And if you use them for education, there is no federal tax on the interest you pay when you redeem them. However, I bonds do have their fair share of restrictions. One of the biggest sticking points is that you can only purchase up to $10,000 in I bonds per Social Security number or Tax ID per year. The lowest denomination being $25. The only way to get around that limit is by putting up to $5000 into I bonds directly through your federal tax return. Other restrictions include the inability to sell I bonds until you’ve owned them for one year. And if you sell them in under 5 years, you will owe a penalty of 3 months' interest. So are I bonds still worth it? Listen to this episode to find out! Resources Mentioned Increase Your Cash Return With I Bonds, #84 Consumer Price Index Data from 1913 to 2023 I Bonds Interest Rates Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact

The most important rule for using credit cards is to pay them off regularly and avoid carrying a balance to avoid paying the usual high-interest rates. Unfortunately, many Americans don’t follow this rule and struggle to pay off growing credit card debt. On this episode, I'm going to cover seven steps to eliminating credit card debt once and for all. You will want to hear this episode if you are interested in... Understanding the American credit card debt problem [0:54]  The first steps to debt freedom [2:44] Two methods for debt repayment [3:51] Lowering your interest rate to pay off debt [4:58] Finding the finances to get out of debt [5:56] Making changes and overcoming the hardest part of eliminating debt [9:24] The credit card debt problem The average American carries roughly $6,569 in credit card debt. As a country, the U.S. owes $525 billion in credit card debt as of 2022’s third quarter. That is a 15% increase over the same number from 2021 and the largest year-over-year increase in 20 years. However, it's still below the all-time high of $927 billion set in 2019. That number has ballooned over the last two decades, considering in 1999 American credit card debt totaled $480 billion.  Obviously, credit card debt is a problem for a lot of Americans. There is also data on the average credit card balance per state. Interestingly enough, most of the highest credit card debt states are in the northeast. New Jersey is number one with an average balance of $7,721. My home state of Connecticut is a close second, just behind that number. The lowest balance state is Kentucky with an average of $5,441. Now that we’ve clearly identified the problem, let’s take a look at some of the solutions. Digging out of the debt hole The first step to solving any problem is recognizing that you have one in the first place. There are plenty of legitimate reasons for getting into credit card debt. Maybe you lost your job, or your car broke down unexpectedly. In any case, the only way out is to say: enough. Once you decide it’s time to dig yourself out of the debt hole, the next step is to figure out exactly how much credit card debt you're in. Make a list of the credit cards you have, their balances, and how much interest each card charges so that you can plan your next move for paying off debt. There are two schools of thought on how debt should be paid off. The first, and in my opinion, the best method is to identify which cards have the highest interest rates and pay those off first. Not all debts are the same. Each credit card company likely charges a different interest rate. Some rates are as high as 29%! So it’s a good idea to make extra payments on whatever card has the highest interest rate. The other repayment method is what’s known as the Snowball Strategy. When utilizing the Snowball, you target the smallest balances first, gradually working up to your largest debt until everything is paid off in an attempt to make debt elimination more manageable. Either method works. The key is to simply start paying off debt and don’t stop until it’s gone. Resources Mentioned 7 Ways To Cut Your Monthly Bills, #111 Debt Repayment Calculator Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact

In a perfect world, none of us would use credit cards. We would only use cash or debit cards to pay for things, and we wouldn't spend more than we can afford. While this is definitely an option, using credit cards is a necessity for many people. On this episode, I'm going to cover seven credit card rules to live by so you can utilize them responsibly and to their full potential. You will want to hear this episode if you are interested in... Why you should always make your credit card payment [1:00] Automating your monthly credit card payment [3:21] Getting your annual fee waived [4:16] Lowering your APR [5:16] The benefits of keeping your credit accounts open [6:54] Increasing your limit for a better credit score [8:47] Taking advantage of your credit card’s secret benefits [11:39] Understanding credit card basics The first and biggest rule for credit cards is that you have to pay them off regularly. Debt payment represents 35% of your credit score, and it's one of the single most important things you can do to improve it. Even committing to make the minimum payment every month goes a LONG way. Ignoring your credit card bill means asking for a lower credit score and a late fee. Even a single missed payment can drop your credit score by 100 points and raise interest as high as 30%. If you happen to miss your credit card payment, the best thing to do is call your credit card company, make the payment ASAP, and see if there is anything they can do for you. Sometimes they are willing to waive the late fee or forego reporting the mishap on your credit history if you catch it soon enough. One way to ensure you never miss a payment is to automate your credit card billing. This can be done by contacting your credit card company directly or taking advantage of the online payment services they may offer. That way, if you forget to pay during the holidays or while you’re on vacation, you've at least made the minimum payment to avoid late fees and other credit consequences. Wait…I can do that with my credit card? One thing about the credit card industry that many people fail to realize is that it’s customer service based. If you are using your credit cards responsibly, you may be able to reach out to your credit card company for additional perks, benefits, and services. Many credit cards charge an annual fee counterbalanced by its benefits, such as airline points or cash back. But if none of those benefits appeal to you, give your credit card company a call and see if they are willing to waive it. The same goes for lowering your annual interest rate. Threatening to leave a company you have a long and positive history with could open the door to a lower APR. Aside from the standard perks, there are many hidden benefits to owning a credit card. My favorite is that a lot of cards cover collision insurance when you rent a vehicle instead of paying for additional coverage through the rental company. I’ve even had to use this coverage with my credit card, and it worked out great! Another secret perk for some cards is that they carry trip cancellation insurance. Some credit card companies will cover change fees if your travel plans get shaken up. Listen to this episode for more insight on using credit cards well! Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact

At the end of 2022, Congress passed The Secure Act 2.0. Originally ratified in 2019, this new version introduces even more changes to the ways Americans save for retirement. On this episode, I'm going to cover nine ways The New Secure Act 2.0 will impact current and future retirees.  You will want to hear this episode if you are interested in... Changes to required minimum distributions [1:48] Higher catch-up contributions in 2025 [3:42] Receiving vested matching contributions to Roth accounts from employers [4:44] Making qualified charitable distributions [5:34] Introducing qualified longevity annuities [6:45] Automatic 401k and 403b enrollment and plan portability [7:49] Contributing to a retirement emergency fund [8:46] Saving for retirement by paying off student loans [9:32] Rolling over a 529 Plan to a Roth IRA [9:57] Change is coming  The Secure Act stands for “Setting Every Community Up for Retirement Enhancement” and is designed to provide more accessibility and flexibility when saving for retirement. The Secure Act 2.0 changes several things about its predecessor while introducing new tools for the retirement savings toolbelt. One of those changes is starting January 1st of 2025, individuals 60-63 years old can make catch-up contributions to a workplace retirement plan up to $10,000 annually. Also, the $1,000 catch-up contribution limit for people 50 and older will be indexed for inflation starting in 2024. This means the amount could rise every year based on federally determined cost of living increases. Another provision made by The Secure Act 2.0 allows defined contribution retirement plans to add a designated Roth account as an emergency savings account. These accounts would be eligible to accept participant contributions from non-highly compensated employees starting in 2024. The contributions would be limited to $2,500 annually or a lower amount set by the employer. The first four withdrawals in a year are tax and penalty-free, and depending on your plan’s rules, contributions may be eligible for an employer match. This gives you the ability to set up an invested emergency fund that grows tax-free and allows you to pay for both short-term and unexpected expenses. How The Secure Act 2.0 impacts required minimum distributions Required minimum distribution (RMD) changes are another big part of The Secure Act 2.0. As you may know, RMDs refer to the age at which you have to start taking money out of your retirement accounts. The original Secure Act increased that age from 70 to 72. Thanks to 2.0, that age increased to 73 starting January 1st of this year, and individuals turning 72 in 2023 will be able to delay their RMD until the following year. Additionally, the RMD age raises to 75 in 2033. Prior to the passing of The Secure Act 2.0, there was a steep 50% penalty on late or insufficient RMD withdrawals. Starting in 2023, that penalty drops to only 25%, and further decreases to 10% for an IRA owner that fails to withdraw their RMD but corrects it in a timely manner. Additionally, Roth IRA accounts and employer-sponsored retirement plans will be exempt from required minimum distributions beginning in 2024. Listen to this episode to hear all the ways The Secure Act 2.0 could affect your retirement savings! Resources Mentioned  Changes To Required Minimum Distributions For 2020, #3 Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact

Hindsight is always 20/20. However, I thought it would be fun to give my market predictions for 2023 at the beginning of the year to see how close I can get. On this episode, I’m going to share six market predictions for 2023 along with historical and financial analysis to support my take. You will want to hear this episode if you are interested in... Will the S&P 500 make a comeback? [1:53] Which will outperform: Growth or value stocks? [4:20] Large cap or small cap stocks? [6:54] Bitcoin or gold? [9:37] Domestic or international stocks? [11:49] Will interest rates continue to rise? [14:19] History in the making The S&P 500 is a collection of the 500 largest stocks in the United States. Last year, the S&P 500 declined 19.4%, making it only the 32nd decline in the last 96 years. That means it has only experienced a decline one-third of the time, with the average being around 14%. While the S&P 500’s 2022 decline was higher than average, it’s by no means the worst historical decline. Another historical gem about the S&P 500 is that it rarely experiences back-to-back declines. There have only been 10 occurrences of consecutive negative returns in its history. The last time we saw this was when the dot-com bubble burst, and 2001 through 2003 saw a decline. Typically when the S&P 500 has a negative return, the following year sees a double-digit increase of 20% or more. That’s why my prediction for 2023 is that the S&P 500 will see a 28% increase, making it firmly 3% higher than it was prior to the decline. Understanding large and small-cap stocks A big question I have for 2023 is whether small-cap or large-cap stocks will outperform the other at the end of the year. If you’re unfamiliar, you can further categorize stocks based on the size of the company. This is called market capitalization, which can be determined by multiplying the number of shares of a company by the share price. That gives you a value and separates large companies as those with a value of 10 billion or more and small companies with a valuation of 2 billion or less.  When you look at these two stock categories, you can see big differences in performance. The most commonly measured index for large-cap stocks is the S&P 500, and the most commonly measured index for small-cap stocks is the Russell 2000. Large-cap stocks tend to favor technology in consumer staples, whereas small-cap stocks tend to be weighted more toward healthcare, financials, and industrials. So which one will win in 2023? Listen to this episode for my prediction on this and other areas of the market! Resources Mentioned 7 Best Short-Term Investments To Grow Your Money, #116 Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact

We are more likely to spend when we have money in our pockets. That’s why automating the process of saving for retirement is a great way to achieve your financial goals. On this episode, I’m going to share five ways you can automate your retirement savings this year and stay on track for years to come. You will want to hear this episode if you are interested in... Are you automatically saving? [1:29] Automated savings through an HSA [3:27] Using a Roth IRA for automated savings [5:58] Opening a high-yield savings account [7:39] Automating debt payments [10:58] Easy retirement savings automation The first and easiest way to automate saving for retirement is to set up and contribute to a work-sponsored retirement plan. If your company offers retirement options through a 401k, 403b, or 457 plan, chances are you’re already taking advantage of this. But perhaps other financial priorities have kept you from signing up for one of these automated retirement savings plans? If that’s the case, make sure you sign up for a retirement plan this year so you can receive the maximum match for your company. If you want to max out your 401k this year, my recommendation is to double-check the amounts you’re set to contribute on an annual basis. The maximum contribution for a 401k in 2023 has increased to $22,500 if you're under 50. For those over 50, you can make an additional $7,500 catch-up contribution, bringing the maximum to $30,000. It’s also a good time to review your investments and make sure you have an advantageous asset allocation. Going beyond the basics Do you have extra money just sitting in your regular bank account? Whether it’s for emergencies or fun, it’s time to check the interest you’re accruing. Without even looking, I can tell you that it's probably almost zero. Banks make money by paying you little to no interest. So take matters into your own hands! One option is opening a high-yield savings account. You could also open a brokerage account by combining an investment and savings account. With interest rates rising, any of these options will give you a more competitive yield than a traditional bank account. Another great option for automatic retirement savings is through a Roth IRA. If opening a Roth IRA makes sense for your financial situation, you need to determine how much you want to contribute to your Roth account on a monthly or semi-monthly basis once it’s set up. The annual contribution limit for 2023 has gone up to $6,500 for those under 50, and $7,500 for anyone older. If you want to make the maximum contribution, simply divide the amount that applies to you by 12 or 24 and set up automatic contributions in that amount. Listen to this episode for additional tips on automating your retirement savings and investments! Resources Mentioned Bankrate.com Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact

The path towards healthcare coverage in retirement starts with enrolling in Medicare Part A and B. However, it’s only the first step! Signing up for supplemental coverage will save you from out-of-pocket costs beyond the cost of Medicare Part B. On this episode, I’m going to cover Medigap and Medicare Advantage plans, their pros and cons, and how to decide which plan is best for you. You will want to hear this episode if you are interested in... Understanding Medicare and supplemental coverage, and Medigap [0:56] Exploring Medicare Advantage and its various plan types [5:16] Deciding which supplemental coverage is right for you [8:37] Closing the Medigap Signing up for Medicare is great, but it doesn’t cover everything. Such as 20% of doctor’s bills, outpatient services, chemotherapy, and more. Thankfully, you have the option to sign up for supplemental coverage through Medigap or Medicare Advantage plans. But which is better? The answer depends on you and your medical needs. The best way to make this choice is to weigh the pros and cons of each supplemental coverage plan.  The benefit of a Medigap plan is that you have a fixed monthly premium instead of unexpected out-of-pocket costs. Additionally, all doctors, clinics, specialists, and hospital systems that accept Medicare will accept your Medigap supplemental insurance. One potential downside to Medigap plans is that they don’t include prescription drug or dental coverage. However, those can be purchased separately. All coverage for Medigap plans is the same, so find the lowest-cost option when shopping. Breaking down Medicare Advantage plans Medicare Advantage is a different type of supplemental coverage. Rather than purchasing additional insurance, Medicare Advantage is like buying into a separate network. By agreeing to use the doctors, specialists, and hospitals in your local area, your monthly premiums are typically much less than Medigap. In some cases, plans cost as little as $0 per month because a portion of your Medicare Part B premium goes to the insurance company. However, whenever you use a portion of your plan, expect to pay co-pays with an out-of-pocket maximum of $8,300 for 2023. The three main Medicare Advantage options are an HMO, PPO, or a hybrid HMO POS plan. Health Maintenance Organization (HMO) plans are the most restrictive of the three. Monthly premiums can be as low as $0, but you can only use in-network doctors and facilities, pre-authorizations and referrals are required to see specialists, and one doctor generally oversees all parts of your health care. Preferred Provider Organization (PPO) plans offer a wider range of options, more flexibility, and the ability to use in-network or out-of-network providers without referrals. However, out-of-network providers can cost more. Finally, Health Maintenance Organizations with a Point of Service option (HMO POS) plans have the restrictions of an HMO with the flexibility to get out-of-network referrals at a higher cost. Listen to this episode for more on supplemental health care coverage in retirement! Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact

A great year-end tax strategy for Connecticut residents is a contribution to the Connecticut Higher Education Trust, also known as the CHET Plan. If you’re preparing to send someone to school, this is an excellent way to save while receiving deductions and creating tax-deferred growth. On this episode, learn five ways to get the most out of contributing to CHET accounts or other qualifying 529 plans. You will want to hear this episode if you are interested in... Making your first contribution [1:30] Taking advantage of the Baby Scholars Program [2:17]  Investing the money carefully [3:30] Using your CHET account for qualified expenses [10:46] Creating tremendous tax-deferred growth [13:00] Get the ball rolling The first thing you need to do to take advantage of the CHET Plan is to make a contribution. Simply opening the account is not enough. But hurry! You have until the end of the year to do so for a deduction in 2022. If you have a child under the age of one or you adopted a child in the last year, you can get up to a $100 bonus by taking advantage of the Baby Scholars Program. Within 60 days of opening the CHET, that $100 bonus will be deposited into your account if you do so by midnight on the child's first birthday or within one year of adopting your child. Like any investment, the key to maximizing your returns with a CHET account is using caution around how the money is invested. These plans are supposed to be easy. They are set up so that investors need to exert minimal effort to manage them. However, just because something is being done for you does not mean it’s the best option. Listen to this episode to hear my insight on how you should invest funds in a CHET account! Understanding qualified expenses  If your child is going off to school next Spring and you’re about to write a $10,000 tuition check, you have a potential $10,000 deduction just sitting in the bank. Putting that money into a 529 plan like the CHET plan is the easiest way to create a deduction for yourself by simply making a $10,000 contribution and then pulling it out. But a big mistake people make with CHET accounts is not using that money for qualified expenses so that it counts as a deduction. Qualified expenses include tuition, fees, books, supplies, computers, computer software, and internet access. Room and board also qualify, but the student needs to be enrolled at least half time, and it doesn’t matter if they live on or off campus. Unfortunately, things like renting a car, maintaining a vehicle, travel costs for flying home, and health insurance do not qualify. Other uses for CHET account funds include up to $10,000 per year for elementary and secondary school tuition and a $10,000 lifetime maximum to pay off student loans. Resources Mentioned CHET Baby Scholars Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact

As we close out 2022, I want to ensure you're setting yourself up for success in 2023. A great way to do that while helping you save for retirement is opening a Health Savings Account (HSA). On this episode, I'm going to break down the three reasons why opening an HSA is a smart retirement planning move and how to choose the right HSA provider. You will want to hear this episode if you are interested in... Why an HSA is different than any other retirement account [1:43] Investing with an HSA [4:00] Using an HSA to reimburse your medical expenses [9:52] The logistics of opening an HSA [12:24] What does an HSA have to do with retirement? A critical part of retirement planning is developing strategies that help you save the money needed for retirement. You're likely already doing that through your employer-sponsored retirement plan, but you might not be taking advantage of a potentially better retirement savings option known as a Health Savings Account (HSA). Many people do not automatically connect an HSA to retirement planning, but the two go hand in hand. The first reason you should consider opening an HSA in 2023 is that it’s a triple tax-free account. This means you receive a deduction when you contribute to the HSA. Any gains, interest, or dividends are tax-deferred while your money is invested. And if you take the money out for health related costs, it's completely tax-free. Once you reach 65, if you have excess money in your HSA that you need for non-healthcare related expenses, you can withdraw the money, and it will be taxed just like a 401k distribution. Quality investing with an HSA The second reason you should open a health savings account is that the money can be invested. An HSA’s real benefit is that you can experience compound growth like regular retirement accounts. Many people do not use an HSA to it's full potential by treating it like a medical checking account. To get the most bang for your buck, you need to invest your money in some type of a bucket strategy. Because you’re using this account to pay for out of pocket medical expenses, emergencies, and sicknesses, you want to invest the money in relatively conservative, minimal fluctuation buckets like money market or short term bonds. If you don’t plan on needing the money for a long time, then a longer term investment would be best. This looks like stock funds, real estate funds, and possibly commodities funds for longer term growth. You also want to make sure you’re getting a competitive interest rate. If you're not earning at least 3% interest on your Health Savings Account, you might want to consider switching to a different HSA. Listen to this episode for more on why opening an HSA in 2023 is a great move for retirement planning! Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact

Many listeners have submitted questions for the podcast. On this week’s episode, I’m going to answer a few! We’ll dive into the logistics of collecting Social Security survivor benefits and the best ways to maximize your benefits in the event of a spouse's passing. I’ll also discuss how to change financial advisors without selling funds and the benefits of tax-loss harvesting.     You will want to hear this episode if you are interested in... Collecting Social Security survivor benefits [1:07] Switching to a different financial planner without having to sell funds [4:42] More on tax-loss harvesting and Roth conversions [6:54]  Navigating the unexpected The unexpected passing of a spouse is heartbreaking. If you haven’t reached full retirement age yet, knowing what to do with your Social Security benefits can ease the financial burden during such a difficult time. First, it’s important to know that any benefits (whether you’re collecting them or not) will receive cost of living adjustments. Next year, that will be an adjustment of 8.7%. There may be an urge to immediately start collecting your own Social Security benefits to account for the loss of income. This is definitely an option, but if you collect your benefits early, there's a limit to how much you can earn before your full retirement age. If you wait until full retirement age to collect your own benefit, you'll receive an additional 8% increase per year for doing so. Another option would be to collect your late spouse's Social Security survivor benefit. Let's just say your Social Security survivor benefit was $1,500 a month, and you were going to earn under $56,520 that year. You could receive the whole benefit without any reduction. Even if you haven’t reached full retirement age! This is because of a special provision in place for Social Security survivor benefits. Changing it up It’s been a trying year for the stock and bond market. Many investors are underwhelmed with the results. However, if you feel like your financial advisor could have handled 2022 better, you may be in the market for a new one. Therefore you may be asking yourself (like one of our listeners), “Can I switch to a different financial planner without having to sell the funds and take a big loss?” The answer is YES! You can make the change without having to sell your funds. Most financial planners use a custodian like TD Ameritrade Institutional, Fidelity, Charles Schwab, or other broker-dealers. Most firms will allow you to change companies without selling your funds because they use the Automated Customer Account Transfer Service (ACATS) to make those transfers. Once you have an idea about who you’d like to hire as your new financial planner, you need to check with them to find out where they plan to hold your money. Give them your account statement and show them the funds that you have. You shouldn’t have any issues if it's a traditional mutual fund. This may also be a good time to assess what you’re investing in. You want to look at the performance of your funds versus the different benchmarks. If it's a large-cap fund, you want to compare how it’s doing against other large-cap funds. Same thing for smaller cap funds. You also want to understand the ongoing costs to manage active funds and evaluate if the investment is worth it. Resources Mentioned  Social Security And Medicare 2023 Cost Of Living Adjustment, #120 How To Lower Your Income Taxes With Tax-Loss Harvesting, #117 Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact

Energy costs have risen substantially over the past year. However, there are certain things that you can do to lower your energy usage. Some with little to no effort at all! On this episode, I’m going to cover five things that you can do to specifically lower your electric bill and save hundreds of dollars a year. You will want to hear this episode if you are interested in... Shopping for a better supplier rate [2:17] Requesting a home energy audit [8:53] Upgrading to a smart thermostat [10:40] Using LED light bulbs [12:51] Unplugging vampire appliances [14:07] Utilize your resources for lower energy costs If you pay the utility bill in your household, it’s evident that natural gas and heating oil prices have risen dramatically over the past year. The cost to fill up your tank at the gas station is another major indication of skyrocketing costs. While we’re powerless to control the cost of oil, there are things we can do to lower our energy and electricity usage.  First, you should check to see if you live in a state with a deregulated energy market like Connecticut. If you live in one of the 26 states that do, there are two components to your electric bill. The first component is known as the delivery rate. This is considered the “regulated” portion of the bill that consumers have little control over. The second potion is the supplier rate. Consult your electric bill to determine the kilowatt per hour cost. That is the rate you want to shop around for! You should be able to use a resource like Connecticut's energizect.com to evaluate which providers in your area have the best supplier rate and make the switch.  Upgrading to downgrade your electric bill Another great way to cut down your energy costs is to install a smart thermostat. These relatively easy-to-install devices learn your heating and cooling habits to use the most efficient amount of energy possible, ultimately lowering your monthly bill. Additionally, if you leave the house for an extended period of time and forget to set your thermostat accordingly, it’s easy to adjust the temperature from afar, saving you from a costly spike in your electric bill. Connecticut residents have the added benefit of requesting a home energy audit through Energize CT. For a $50 inspection fee, a home inspector can examine your home for possible pitfalls such as air leaks, insufficient insulation, and inefficient appliances. They also provide professional insight on how to fix these issues if they are present. If you implement these upgrades to your home, you can significantly decrease your electric bill and heating costs by up to $200 per year. Listen to this episode for more energy saving tips! Resources Mentioned 7 Ways To Cut Your Monthly Bills, #111 Energize CT How Much do LED Lights Save? Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact

7 Year-End Tax Moves to Consider for 2022, #125 The end of 2022 is quickly approaching! This means time is running out to take advantage of money-saving tax breaks. On this episode, I’ll highlight seven year-end tax moves to consider before the ball drops on December 31st. Don’t miss these invaluable tax tips that could make 2022 your best fiscal year yet! You will want to hear this episode if you are interested in... Contribute to a traditional IRA [1:12] Contribute to a state-sponsored 529 Plan [3:02] Fully fund your Health Savings Account [5:17] Take a tax loss on any investments outside of retirement accounts [8:16] Consider a Roth conversion [9:10] Take advantage of the 401k profit-sharing limit [12:03] Write off a business use vehicle [14:13] Give me a break Thanksgiving is over. The all-out sprint through the holidays towards the end of the year has begun! Now is the time to start planning your final tax moves for 2022. The first move I’d recommend before the year ends is contributing to a traditional IRA. Especially if you’re self-employed or don't have access to a retirement plan through work. If you have earned income in 2022, you can make a traditional IRA contribution up to $6,000 if you're under 50 and $7,000 if you're over 50. All of this as a pre-tax deduction, of course! If you don't have earned income for 2022, but you’re married to someone who did, they can make what's known as a spousal IRA contribution. With an adjusted gross income under $204,000, you can make the full $6,000 or $7,000 contribution depending on your age. That contribution amount gets proportionately phased out until your income exceeds $214,000. You also have the potential to make this contribution if you are covered by an employer-sponsored plan through work. As a single filer, if your adjusted gross income is below $68,000, you can make the full contribution, and if you're a joint filer, that adjusted gross income limit is $109,000. Invest in your health Another year-end tax tip I highly recommend is fully funding your Health Savings Account (HSA). HSAs have a single and a family plan maximum. The single plan maximum for 2022 is $3,650, and the family plan maximum is $7,300. Additionally, if you're over the age of 55, you can add up to $1,000 as a catch-up contribution. I'm such a big fan of doing this because HSAs are considered a triple tax-free account. You get a tax deduction when the money goes in, and a tax deduction for health-related costs when it comes out. The money also grows tax-deferred! To really take advantage of this, I would suggest investing the money and leaving it in the account for as long as possible. Be sure to track your health savings account expenses so you can reimburse yourself years after you've made the contributions. The goal is to invest the money in some type of stock-bond portfolio so that it grows in your account. This way you're only actually spending your gains and not the principal. Listen to this episode for more year-end tax moves! Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact

Do you have old retirement plans or 401ks that you've lost track of, but you're not sure where you can find and gain access to those accounts? On this week's episode, I'm going to cover four ways you can locate those old retirement plans and discuss how to put them to their best use. You will want to hear this episode if you are interested in... The three places your old retirement account money could be [1:49] Using your social security number [3:35] Searching unclaimed property databases [5:51] An exciting solution from the industry's leading retirement plan providers [6:57] What to do with your money when you find it [8:32] Where is your money? It's been estimated that there are billions of dollars sitting in old retirement plans that people have forgotten about. If you have an old 401k or retirement plan that you’ve lost track of, there are three places where that money could be right now. If your employer is still in business, it's easy to track them down and find out where your old 401k has gone. However, the size of the balance left in your retirement account will most likely determine where the money is. If you have less than a $1,000 balance, your 401k provider can cash in that account and send a check to you. If this is the case, you want to follow up because the original check is likely invalid, and there could be tax consequences for not rolling the money over within 60 days of the original check being issued. If you had a balance between $1000 and $5,000, the old retirement plan provider can't send you a check, but they can move that account to another IRA. Finally, having a balance over $5000 is the easiest option because chances are it's still with the employer-sponsored retirement plan. It's simply a case of you gaining access to that account. Finding old retirement accounts What do you do if you don’t know who your old 401k provider is anymore? Maybe it’s been a few years. Maybe your former company has merged a few times, or they went out of business altogether. It still might be a good idea to contact your old 401k provider to see if they still have an account open for you. If you're unable to locate your 401k through your administrator, your next step is to try and look it up with your social security number through various unclaimed retirement benefit registries. And if all else fails, there are several multi-state unclaimed property databases that could be helpful. Hopefully, one of the three options above yields results, but it can be a lot of work. Recently, a trio of the industry's largest 401k administrators (Fidelity Investments, Vanguard, and Alight Solutions) have teamed up to try to alleviate some of the stress and tax problems that go along with old 401k balances. They've put together a clearing house of sorts where anytime you leave a job with an old 401k balance, after a certain period of time these companies will talk to each other and automatically try to transfer that money over to a new qualified window quickly. If it's less than $1,000, but they don't know where to send it, or it comes back because it was in cash, they would take care of that. And if you have another retirement account with them, they'll try to automatically move that money over to that plan for you. Resources Mentioned 'Billions of dollars get left behind': The 401(k) industry now has a 'lost and found' for your old retirement accounts National Registry of Unclaimed Retirement Benefits Contacting PBGC About Unclaimed Pensions FreeERISA MissingMoney.com Find your old 401ks 4 Things To Know Before Doing A 401k Rollover, #40 Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact

Simultaneously saving for retirement and your child’s college education requires delicate and intentional planning. You want to ensure you and your student will get a quality return on the sizable investment you’re making. On this episode, I sit down with educational planning expert Beth Probst of At The Core to discuss the rising costs of college tuition, setting up high school seniors for success, and the tool she created to help college-bound students get the most out of higher education. You will want to hear this episode if you are interested in... Setting high school seniors up for success and the misnomer of “good schools” [1:48] Ryan’s college selection experience, the rising cost of tuition, and questions to answer before investing in higher education [9:07] Beth’s Guided Self-Assessment and why students should plan before they leap [20:11] Understanding the cost of higher education It’s hard to believe that college ever cost $6,000 a year. Today you would be lucky to pay that per semester for tuition alone. With the average annual cost for the complete college experience (tuition, books, room, and board) coming in around $35,000, you want to know that you and your student will get the most out of that investment before you sign on the dotted line. Parents will want to do everything they can to help their students not only get into college, but leave that place with the training and skills needed to have a successful career. One way to do that is through students taking AP classes in high school. These classes of increased difficulty are taught by high school teachers to prepare students for a three-hour test administered at the end of the year. Students can receive college credit for the subject area depending on their score out of five and the preferences of the institution they are enrolled at. Another option to prepare students for college is dual enrollment. This is where students take actual college classes for credit during high school hours at a significantly reduced rate. Setting students up for success While AP classes and dual enrollment can help prepare students for the college academic environment, knowing why they want to be there in the first place is the key to making a solid academic investment. It’s easy to walk onto a gorgeous college campus and fall in love with an $80,000-per-year school, but unless your student can financially justify the price tag, a less expensive option is probably a better investment. The idea that some schools are better simply because they cost more is nothing but clever marketing. The best school is the one that sets your student up for success without crippling debt. It’s so important for college-bound students to know who they are and what kinds of careers could be a great fit. College is way too expensive for them to just show up and figure it out. That’s why Beth started At The Core. Her guided self-assessment allows students to dive deep into their strengths, struggles, interests, preferences, values, and lifestyle goals through a series of five one-hour interviews. Then Beth and her team compile that information into a report, giving students a snapshot of who they are and potential careers tied to their natural inclinations. Walking into college with solid career goals and objectives for their educational experience helps students get the most out of their educational investment. For more information listen to this episode and visit the links below! Resources Mentioned Follow Beth on LinkedIn At The Core Call At The Core  Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact

The secret to anyone’s life is cash flow. But what if that cash could flow into your bank account through passive income? On this episode, I’m joined by Dustin Heiner of Master Passive Income to discuss investing in real estate through rental properties. We’ll discuss his real estate investment journey, obtaining financing for rental properties, and the best ways to manage those properties. You will want to hear this episode if you are interested in... Getting to know Dustin Heiner and how he became successfully unemployed [0:42] Obtaining financing to purchase a rental property [5:04] The logistics of managing a rental property [15:33] Simplifying the real estate investment process [23:05] What about reserves for rental properties? [31:02] Final thoughts [33:22] Financing a rental property When deciding whether to invest in a rental property, one of the scariest aspects is financing. Saving up enough money for a down payment of 25 to 30 percent can feel daunting. However, that’s only one way to do it. Dustin has used 14 different ways to finance a rental property, including mortgages, conventional loans, commercial loans, signature loans, private loans, and even credit cards. He admits that the last one is a bad idea unless you know you’re going to make money.  One financing avenue I didn’t realize was possible for rental properties is using an FHA loan. Buying a home with a 3% down FHA loan is a fantastic way to get into a property. But don't sell it! If you refinance the property to get out of the FHA loan, you can buy and move into a second house with a new FHA loan and a 3% down payment. Then simply rent out the first home and repeat the process with the second. Another financing option Dustin recommends is using private money. He suggests approaching someone you know that can reliably invest in the property and find out what they need to invest. This could be 10% interest, points up front, or equity in the deal. You want to give them a good return while using as little of your own money as possible. Build the business first Dustin attributes all of his success to a simple principle: build the business first. Most people think the first step to investing in a real estate property is buying the property. But this is actually the LAST step in Dustin’s process. Once he establishes an area he wants to purchase in and how much he needs to charge for rent to cover all expenses with at least $250 in positive income, he seeks out local experts to ensure he can rent the property for the right amount. But don’t count websites like Zillow as experts! You want to find and hire experienced property managers who know the area and can give you insight into whether or not it’s a good investment before you buy. The other reason you want quality property managers is that they will end up running the day-to-day of your business. They interact with tenants, collect rent, facilitate most repairs, and even deal with evictions if necessary. A common question for Dustin is how he affords property managers? The short answer is: he doesn’t. Everything needed to maintain the property, including its managers, is baked into the cost of rent. Listen to this episode for more on investing in rental properties for extra income! Resources Mentioned FREE Real Estate Investing Course Connect With Morrissey Wealth Management  www.MorrisseyWealthManagement.com/contact