There is a lot to cover in this episode, including new legislation that could impact your retirement.

Plus, 6 More Retirement Financial Myths to Avoid, and a listener with substantial assets who wants to know how to pay for a new car.

The OBBB

The One Big Beautiful Bill became public law on July 4, 2025. Included are:

• Lower Tax Brackets Are Now Permanent
• 
Larger Standard Deduction
• New Senior Bonus Deduction (2025–2028)

• Above-the-Line Charitable Deduction (2026–2028)

• Expanded SALT Deduction

• ACA Subsidy Planning Alert

• New Car Deduction 


If you’re a client of ours - we’ll go into these changes in detail during our year-end appointments. If you really like the numbers, we’ll do a before & after to calculate your specific tax savings impacted by these changes.

Article: 6 More Retirement Financial Myths to Avoid

This article by Sheryl Rowling from Morningstar addresses these six myths:

1. You Should Never Make a Big Splurge in Retirement
   2. It’s Best to Give to Charity After You Die
   3. Spending Less Is Always Better
   4. You Must Pay Off Your Mortgage Before Retiring
   5. Reverse Mortgages Are a Last Resort
   6. Your Biggest Financial Risk Is a Market Crash

Resource:
6 More Retirement Financial Myths to Avoid by Sheryl Rowling

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Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement

This week’s headline reads like a financial horror story — and unfortunately, it’s a true one. 😱

33-year-old Mr. Handy changed jobs and did what millions of Americans do every year: he requested a rollover of his 401(k).

Paychex, the provider managing his old employer's plan mailed him two paper checks: one for his traditional 401(k), and one for his Roth 401(k). They were intercepted in the mail, and over $114,000 vanished. Gone. Just like that.

This situation raises some serious questions. According to a recent report from Capitalize, 43% of people doing rollovers are still being sent paper checks. Why are we still using paper checks to transfer life savings?

We'll cover that through an article written by Ron Lieber of the New York Times.

📬 Then we will answer a listener question, "I invested in Vanguards 2035 Target fund a long time ago. Not a bad move. BUT, I did so in a brokerage account and not an IRA. Now I have over $100k in it. Oops. Should I leave it there or try to shift to a more flexible fund before a I retire in 5 year or so?"

Resource:

Article by Ron Lieber: His Life Savings Were Mailed to Him by Paper Check. Now, It’s Gone.

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Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement

According to BankRate, 23% of Americans 60-78 have a side-hustle. Maurie Backman says in an article by Kiplinger that this would help with two key areas in retirement planning: It provides us with something fulfilling to do after our primary career and provide a little extra cash in retirement.

The benefits of a side hustle:

• Mental Engagement
• Extra Income
• Social Connection
• Sense of Purpose

The Pitfalls of a side hustle:

• Tax Complications
• Outspending your retirement budget in search of business profits
• Medicare Premium Creep (IRMAA)
• Lifestyle Clash
• Time Commitment

Also in this episode, we discuss a listener's question about global stock allocations - and asks if I think it's better to own a global fund or to own US & international equity separately. How can one balance simplicity and effectiveness in their plan?

Resource:
Article by Maurie Backman: Monetizing a Hobby in Retirement: The Benefits and Pitfalls
Article by Bankrate: https://www.bankrate.com/credit-cards/news/side-hustles-survey/

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Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement

If you've been anywhere close to a retirement podcast over the last 10-20 years, you've heard of the 4% rule. And like many people, you might have questions about it.

We're going to hear about it directly from the horse's mouth as we talk to Bill Bengen, who first articulated the 4% withdrawal rate as a rule of thumb for withdrawal rates from retirement accounts.

The 4% rule is not a rigid rule but a guideline. Its application requires careful consideration of individual factors, including health, life expectancy, and specific financial circumstances. Bengen encourages retirees to tailor their withdrawal strategies based on their unique situations. Our discussion also explored required minimum distributions (RMDs), which may necessitate higher withdrawals in later years of retirement. However, Bengen suggests that for most people, RMDs would not exceed the calculated withdrawal rates until a very advanced age, making the two compatible.

Core Points:

• The 4% rule, initially a worst-case scenario calculation, suggests a 4% annual withdrawal from retirement savings. This has since been refined
• Research indicates a more generous 4.7% withdrawal rate is now possible due to portfolio diversification and lower investment costs
• Higher withdrawal rates might be feasible (5-5.5%), depending on market valuations and inflation
• Early retirement withdrawal timing significantly impacts long-term success
• Consider individual circumstances, market conditions, and inflation when adjusting withdrawal strategies

Resource:
Pre-order Bill Bengen’s new book, "A Richer Retirement: Supercharging the 4% Rule to Spend More and Enjoy More" https://www.bengenfs.com/order-my-book

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Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement

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Only 3% of Americans have saved $1 million for retirement. according to 24/7 Wall St. & AOL. I’ll break down what that means—and why your personal number might be more important than any national average.

After that, I answer a listener question where we tackle how to cover healthcare costs in early retirement—specifically for a 58-year-old retiree with a non-working spouse and three adult kids under 26 still on the family plan. We’ll explore ACA strategies, income planning, and a clever way to help the kids get their own coverage at a big discount.

Resource:

AOL article by David Beren: A Look at U.S. Workers Who’ve Accumulated $1M in Retirement Funds

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Get the book!
Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement

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What do you do with RMDs you don’t actually need?

If you’re retired and over age 73 — or 75 if you were born in 1960 or later — you know the IRS requires you to start taking Required Minimum Distributions (RMDs) from your traditional IRAs and workplace retirement accounts.

Even if you don’t need that money for living expenses, you still have to take it - which means more taxable income, higher Medicare premiums, and a bigger chunk of your Social Security benefits becoming taxable in some cases.

Today I share "6 Strategic Ways to Make the Most of Distributions You Don’t Need", an article by Greg Hammons from TheStreet.com.

1. Reinvest in a Taxable Brokerage Account - super straightforward.
2. Make a Qualified Charitable Distribution (QCD)
3. Use RMDs to Fund Life Insurance
4. Cover the Taxes on a Roth Conversion
5. Fund a 529 Plan for Education
6. Give to Family—Tax-Free

So what’s the best move for you?

That depends on your goals—whether it’s growing your money, reducing taxes, helping your family, or supporting a cause. But the key message is this: RMDs don’t have to be a tax burden. With some intentional planning, they can be an opportunity.

Before making a move, talk to your financial planner or tax pro. These strategies can have long-term effects on your retirement plan, your taxes, and your legacy.

I also tackle a listener question: "What is your recommendation to cover the gap in sustainable income from pre-retirement (e.g., 60) to Social Security claiming age (e.g., 70)?"

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Get the book!
Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement

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What happens when your emergency cash runs dry—and life keeps happening?

A recent article lays out a ranked list of ten ways to access emergency cash, starting with the best options and ending with the ones you’ll want to avoid unless it’s truly a last resort:

1. Emergency Fund / Short-Term Securities
2. Low-Risk Assets in Taxable Accounts
3. Roth IRA Contributions
4. Life Insurance Cash Values
5. 401(k) Loan
6. Home Equity Line of Credit (HELOC)
7. Hardship Withdrawals from 401(k)
8. Reverse Mortgage
9. Margin Loans
10. Credit Cards

The takeaway?

Know your emergency funding hierarchy before a crisis hits. With a plan in place, you’ll be better equipped to make calm, informed decisions when life throws you a curveball.

Resource:

• MorningStar article by Christine Benz: 10 Sources of Emergency Cash, Ranked From Best to Worst
• Christine Benz’s book - How to Retire: 20 Lessons for a Happy, Successful, and Wealthy Retirement https://a.co/d/3rZ3JgF

• Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
• Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
• Work with Benjamin: https://retirementstartstoday.com/start

Get the book!
Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement

Follow Retirement Starts Today in
Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart