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Happy Friday! It’s Casey from Howard Bailey Financial! Each week, I’ll send you my commentary on four financial-related resources that I think will be beneficial for you — plus a preview of my latest podcast episode.
Have questions? Send me a note!
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#1
How Likely Are You to Need Long-Term Care?
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Morningstar — When you consider the list of risk factors that can upend your retirement, long-term care expenses should be one of them.
Key points include: Your likelihood of needing long-term care at some point in your lifetime is about 56 percent if you’re age 65 or older. However, that statistic changes to 45 percent when it comes to paid care. Factors that influence your need for paid care include gender, marital status, income level, and health status. Women, unmarried individuals, and those with lower incomes are more likely to need long-term care.
What to know: You won’t need long-term care coverage until you do. Expenses can create a heavy burden on families amidst unexpected health events, so consider your options for insurance sooner rather than later.
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Episode 452 - Thriving in Midlife Part 6:
Achieving a Long-Life Mindset with 4 Steps
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Are you leading yourself with intentionality? It begins with harnessing a strong sense of self-awareness so you can own the story you were meant to live.
In this episode of the Retire With Purpose Podcast, we discuss:
📌 What a “long-life mindset” means
📌 Legacy vs. impact vs. influence
📌 How to silence external chaos to better focus on YOU
📌 The 5 circles of influence
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#2
Thriving in Midlife Part 6 – Long Life Mindset:
A Simple (Not Easy) 4-Step Process
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Howard Bailey Coaching Community — Are you truly “owning” your story? From birth, societal influences often shape your behaviors and beliefs, creating self-limiting biases. This can hinder self-discovery and fulfillment, so to counteract, Chief Purpose Officer Les McDaniel outlines a four-step process for developing a deeper sense of self-awareness that helps you live your most authentic, purposeful life.
📌 Step 1 – Know yourself to lead yourself: Utilize Howard Bailey Coaching Community tools like the Know Yourself to Lead Yourself Tool and the 5 Voices Personality Assessment to align actions with core values
📌 Step 2 – Free yourself from self-preservation: Overcome fear and insecurity to foster deeper relationships and personal growth
📌 Step 3 – Adopt a leader mindset: Recognize everyday influence and strive to uplift others, fostering trust and support
📌 Step 4 – The 5 Circles of Influence: Be intentional in personal well-being, extending efforts outward to family, friends, and the community to build a meaningful legacy
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#3
Untangling the IRS’s New Finalized (and Proposed) Regulations on RMDs: The 10-Year Rule, Trust Beneficiaries, Spousal Beneficiaries, Annuities,
and More!
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Kitces — In 2019, the SECURE Act significantly altered the tax treatment of post-death distributions from qualified retirement accounts. As you may recall, one key change was the elimination of the "stretch" provision for non-spouse beneficiaries, requiring them to fully distribute inherited accounts within 10 years. In early 2022, the IRS proposed that these beneficiaries must also take annual Required Minimum Distributions (RMDs) if the original account owner had been taking RMDs.
What to know now: The Final Regulations issued on July 18, 2024, confirmed the annual RMD requirement for Non-Eligible Designated Beneficiaries starting in 2025, with no penalties for missed distributions from 2021–2024. Other provisions include the handling of undistributed RMDs at an account owner's death, rules for surviving spouses, specific rules for Roth accounts, and more. The IRS also released new Proposed Regulations for the SECURE 2.0 Act, clarifying the RMD age for those born in 1959 and rules for surviving spouses electing to be treated as decedent.
Key takeaway: You might find that these regulations add complexity to your tax strategy when it comes to inherited retirement accounts. If you’re looking for clarity or need guidance, we’re here to help.
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Humble Dollar — There are the BIG questions you will ask yourself regarding retirement, such as: When should I retire? Or do I have enough saved? However, there’s more to the puzzle when it comes to planning the fulfilling retirement you deserve. Beyond ensuring your financial comfort, key points include:
📌 Downsizing: Plan to declutter and downsize before mobility issues arise
📌 Estate planning: Avoid procrastination in organizing financial affairs
📌 Tax implications: Understand potential tax increases after the passing of a spouse
📌 Social Security: Prepare for reduced benefits after a spouse’s death
📌 Transportation: Plan for mobility issues and alternatives if driving becomes impossible
📌 Family care: Confirm whether children are willing to provide care if needed
📌 Assumptions: Question overconfident assumptions about financial returns, spending patterns, longevity, and retirement happiness
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#5
Bonus Article
Welcome to the (Investing) Jungle
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The Uncertainty of It All — If you’re like many investors, it’s common for you to experience feelings of regret and frustration at times, maybe wishing you had bought specific stocks like Amazon or Microsoft earlier. Although such stocks have shown impressive returns, investing in them requires patience and the ability to withstand market fluctuations.
Here, author Mark Newfield argues that diversified investments, such as those in S&P 500 index funds, provide a stable and reliable approach to growing wealth over time, despite not always capturing the highest returns. He stresses that predicting market movements is challenging, but that consistent, diversified investing with a long-term perspective is often more effective. Further, he highlights the importance of having a cash reserve and sticking to a disciplined investment strategy to avoid common pitfalls driven by emotional reactions and market timing attempts.
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Ready to seriously start thinking about retirement? My best-selling book, Job Optional*, is a good jump-off point — it will teach you how to secure your financial future so you can focus on what matters most to you now.
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Investment Advisory Services may be offered through Howard Bailey Securities, LLC, a registered investment adviser. Job Optional was a #1 Amazon best seller in Retirement Planning on 7/2/19, and a Wall Street Journal eBook Best Seller on 8/9/19. Working with Howard Bailey Securities, LLC, cannot guarantee investment success or that specific financial goals will be achieved. For more information on professional designations, visit finra.org/investors/professional-designations. University of Notre Dame and University of Notre Dame Athletics (“Notre Dame") are not current clients of Howard Bailey Securities, LLC nor Howard Bailey Financial, Inc. Legends / JMI Rights Holders, on behalf of Notre Dame, was compensated for this endorsement, as such term is defined under SEC Rule 206(4)-1. For more information, please visit howardbailey.com/nddisclosure.
©2024 HOWARD BAILEY FINANCIAL, INC.
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