As the holiday season approaches, many of us find ourselves thinking about gifts. While gifts can come in many forms, monetary gifts often cause the most confusion. In this episode of Financial Symmetry, hosts Chad Smith and Grayson Blaszak discuss the intricacies of financial gifting.

Financial gifting generally involves transferring assets, such as cash or securities, from one individual to another without expecting anything in return. This process can have several benefits, including seeing your loved ones enjoy the fruits of your generosity during your lifetime.

• [03:38] Individuals can gift up to $18,000 per recipient annually (increasing to $19,000 in 2025) without it being taxable or reportable.
• [05:17] The tax implications of paying off a loved one’s credit card or bills.
• [06:16] Steps to take if you’re making a big gift, such as a home down payment and how to manage the gift tax return.
• [12:28] Transferring securities can help recipients save and invest more effectively, benefiting from fund growth and potentially minimizing tax burdens when in a lower tax bracket, enhancing wealth transfer and legacy planning.
• [13:43] Giving to 529 plans and how to fit that into your strategy.
• [16:02] Payments to medical providers or educational institutions on behalf of a loved one are not taxable gifts, provided they are paid directly.
• [17:57] Plan carefully to balance wealth stewardship and gifting, ensuring personal financial stability while providing meaningful support to loved ones.

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Have you ever been in the middle of a road trip, and you come upon a roadblock where unexpected traffic adds a half hour or more to your journey?

Similar frustrating circumstances pop up in the years just before and just after retirement. During this new life transition, you are forced to confront retirement roadblocks, and if you don’t know how to maneuver around them, it can leave you feeling stuck.

In this episode, we discuss 3 retirement roadblocks you may encounter along your retirement journey. Think of these tips as your GPS to make it easier to navigate around the retirement roadblocks you will inevitably face.

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Early retirement has unique financial planning challenges, particularly regarding health insurance and tax strategies. For people who retire before age 65, the challenge of finding affordable and adequate health insurance adds another layer of complexity to their financial plans.

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• [04:32] Considering Roth conversion for potential tax benefits
• [09:07] Rules around qualifying for ACA in 2025
• [12:36] Early retirement may offer a low-tax window for Roth conversions, potentially reducing the lifetime tax burden
• [15:49] Consider long-term planning, not just immediate tax impacts, for decisions like Roth conversions
• [18:44] Roth conversions are typically completed at year's end to account for unexpected income changes affecting ACA MAGI estimates.

An inherited IRA is essentially an IRA received by a beneficiary after the original owner passes away. Whether it's a spouse, child, or another loved one, the key characteristic of an inherited IRA is that it transitions ownership upon death.

As Grayson Blaszek explains, the funds are transferred intact, but the way you handle and withdraw these funds comes with specific rules and timelines. Grayson and Matthew dig into the new rules in this episode.

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• [4:50] Differences between eligible and non-eligible designated beneficiaries
• [6:16] Why it’s important to list IRA beneficiaries to avoid tax inefficiency
• [8:19] The year that you inherit an IRA impacts that distribution requirement
• [10:18] Discussing inheritance can lead to meaningful conversations that make financial planning easier
• [14:17] You need to continue taking the required minimum distribution (RMD) if the decedent began them already
• [16:00] How to handle a 10-year account withdrawal strategy
• [22:07] Key takeaways about your withdrawal options with the new rules as a non-eligible designated beneficiary

Investing can feel like a battle between two polar opposites within us, the rational and the emotional, just like the classic story of Dr. Jekyll and Mr. Hyde.

This week, Dr. Jekyll and Mr. Hyde are our model investors, and we’re talking you through the spooky story of the risks, emotions, and rational strategies involved in long-term investing.

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Outline of This Episode

• [03:06] Dr. Jekyll and Mr Hyde's wildly different investment strategies
• [06:00]Strategies that help mitigate emotional reactions during elections and global crises
• [07:38] Balancing short-term market volatility with a long-term investment perspective
• [10:37] How to stay aligned with long-term goals in the face of market downturns
• [13:28] Diversification to manage risk in an investment portfolio
• [14:17] Psychological factors that cause investors to feel more confident during market upswings
• [15:35] Automating your investment and savings strategy to prevent emotional decision-making

Reaching your financial goals builds confidence and peace of mind, which are essential for making informed decisions that benefit your entire family.

In this episode, we’re following a fictional pop culture couple from newlywed to pre-retirement, to demonstrate how their thought process around an emergency fund could evolve with their changing circumstances.

Join us as we lay out a case study of planning that helps them balance their accessible wealth with a healthy emergency fund.

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Retirement, a phase many of us anticipate for a long time, comes with its own set of financial intricacies. Specifically, how do you effectively withdraw funds from your savings to ensure a comfortable, sustainable, and tax-efficient lifestyle?

A well-crafted retirement blueprint is essential. This plan should outline your long-term goals and the steps needed to achieve them. More importantly, your financial plan should be flexible enough to accommodate life's unexpected expenses, such as healthcare costs or home repairs. Revisiting and updating your blueprint annually—or when significant life changes occur—can help ensure you stay on track.

In this episode, we’re sharing the essential steps to develop a retirement withdrawal plan that caters to your needs. We dig into which accounts to draw from, how to minimize taxes, and how to manage unexpected expenses. You'll also learn about advanced strategies like Roth conversions, tax-loss harvesting, and the benefits of Qualified Charitable Distributions and Donor-Advised Funds.

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• [5:06] Your options for retirement tax strategies
• [8:32] Utilize early years to make strategic financial moves
• [11:30] Plan your retirement for peace of mind
• [17:12] Lower RMDs with Roth conversions and reduce the tax impact
• [19:42] Consider tax loss harvesting, capital gains, heirs' basis
• [21:30] Use a QCD to reduce taxable income
• [26:12] Exploring blind spots in retirement withdrawal strategies

Retirement planning is a delicate process, and you need to carefully consider your various income streams, including Social Security benefits. For those of us who plan to continue working while claiming Social Security, it’s important to understand how this decision can impact the monthly benefits you receive.

In this episode, we’re sharing how to avoid financial shocks in retirement. We discuss the essentials of earned income, the reduction in benefits due to excess earnings, and specific scenarios such as spousal and ex-spouse benefits.

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• [1:08] Social Security benefits may be impacted if you work while claiming
• [04:27] How retirement financial planning strategies vary by individual circumstances
• [07:17] Earnings affect Social Security benefits before retirement
• [11:51] Your spouse's income doesn't affect your Social Security
• [15:18] SSA withholds payments until excess income is accounted for
• [18:44] Social Security timing advice
• [20:04] Seek financial advisor help to make an educated decision about retirement