It was a wild ride this year. All asset classes were hit. Financial fraud dominated the news. A new law is being finalized at the end of his 2022, which will have significant implications for his financial planning in the years and decades ahead.
This year’s final post touches on these timely topics. But as always, we will continue to focus on timeless topics.
We conclude with a few options to help you reflect on the past year and plan for the new year. happy holiday!
last minute news
As I was putting the finishing touches on this post, details of the new legislation were still emerging in the bill affecting our financial planning. Here are the minimum required distribution (RMD) start dates Here are some good early reports to get a feel for the important changes, such as reverting
Jaime Hopkins explains 5 changes in RMD likely to pass Secure Act 2.0.
Jeff Levine details the implications of this new law for financial planning. this twitter thread.
how much money do you need?
This month we discussed two big challenges in knowing how much money you’ll need for retirement.
The first is knowing how much you can safely take out of your portfolio. Christine Benz and John Rekenthaler write on the subject: What is today’s safe withdrawal rate?
The second big challenge is knowing who you are, what your future will look like, and how you will spend your time in retirement. Blogger he Steveark touched on this and wrote: How much is it? He tells you why you need far less money than most people think to have a happy retirement.
How to spend time after retirement
Joe Casey believes retirement is the perfect time to reset from the hectic lifestyles many of us lead during our tenure, but it’s often overlooked.he asks Are you headed for a busy retirement?
Important planning topics
Steve Vernon writes: The most serious financial risks facing retirees Longevity risk, the risk of living longer than planned.
A less pleasant but equally important topic of financial planning is preparing for what will happen when we die or become incapacitated and can no longer manage things on our own. Rick Ferri, Ryan Barrett, and Mike Piper discuss key concepts in real estate planning on Bogleheads on Investing Podcast..
Update Your Favorite Retirement Planning Tool
One of our favorite retirement planning tools is pralana gold, announced an update for the 2023 edition. It will be released in a few weeks.
Updates reflect changes in tax law. This includes updating the tax table for 2023 and clearing the cliff of his ACA subsidies for another two years, in accordance with the Inflation Reduction Act.
Of particular interest to many readers, based on the questions I received, is the enhanced modeling of the Roth transformation. The most exciting news for me personally is that a web-based version of the tool is in development later this year. We hope this will make this powerful retirement planning tool more accessible to a wider readership.
break the scam
Karsten Jeske writes: Crypto Exchange Postmortem: Is FTX Worse Than Bernie Madoff?
It’s not a scam, but…
The next two articles discuss completely legal and justifiable investment opportunities. they are not scams. You should still be wary of them.
When I took control of my investments, an actively managed mutual fund that I held in a taxable account fell in value at the same time due to transactions that occurred within the fund in the same year, I was shocked to find out that I had generated substantial taxable profits. This is an important reason to prefer tax efficient index funds or his ETFs in taxable accounts.
If you don’t fully understand this concept, spend some time on the following articles: Stephen Welch’s Questions and Answers Which popular funds will hit investors with losses and capital gains distributions this year?
A few years ago, I took a closer look at ESG investing. I love the idea of using your money to make the world a better place. I don’t think ESG is a very effective method.
Many influential people and organizations disagree with me, as evidenced by the flow of funds. The Catholic Church is one of them.Books by Jeff Benjamin Vatican Report on Faith-Based Investing Steps into ESG Territory.
looking back and enjoying
The end of the year is a great time to reflect on where you are and plan where you want to go from here.
Jillian Johnsrud has written beautifully about the challenges of dealing with the unknown. Waiting.
This month I wrote about the concept of changing and becoming a different person in different stages of life. A reader commented that I should read Arthur Brooks’ book on this topic strength to strength.
After listening to a great interview with Brooks on Peter Attia’s Drive Podcast, I actually picked up the book at the library and read it on vacation. The Science of Happiness by Arthur Brooks.
A few months ago I had the opportunity to speak at the Bogleheads Conference. I shared my thoughts on the experience and promised to share her Michelle Singletary interview with her keynote speaker, Christene Benz, as soon as the conference video becomes available.
We encourage you to take a look at it as you reflect on the year gone by and plan for the year ahead. This talk made me think long and hard about how when we spend our money wisely, we can change the trajectory of our lives and affect the lives of many others.
I hope you enjoy it as much as I do. Happy new year!
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valuable resource
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[Chris Mamula used principles of traditional retirement planning, combined with creative lifestyle design, to retire from a career as a physical therapist at age 41. After poor experiences with the financial industry early in his professional life, he educated himself on investing and tax planning. Now he draws on his experience to write about wealth building, DIY investing, financial planning, early retirement, and lifestyle design at Can I Retire Yet? Chris has been featured on MarketWatch, Morningstar, U.S. News & World Report, and Business Insider. He is also the primary author of the book Choose FI: Your Blueprint to Financial Independence. You can reach him at chris@caniretireyet.com.]
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