What is the WIDOW’S penalty? How to AVOID it!

✅ FREE RETIREMENT ASSESSMENT ✅ www.foundryfinancial.org/reti...
In this eye-opening episode, we delve into the financial impact of the "Widow's Penalty" or "Widowers Penalty" a term that highlights the economic challenges faced by surviving spouses after the death of their partner. We'll explore how tax changes, social security benefits reductions, and increased health care costs can create a sudden and severe financial burden. Whether you're directly affected or interested in economic and social justice, this episode is an essential watch that will inform and engage you on the complexities and human aspects of the Widow's Penalty.
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ABOUT ME
I’ve always been passionate about personal finance, investing, real estate, and helping people find the freedom to live their life with purpose. But when my dad died in 2015, I tried to help my Mom find an advisor to sort out her finances. Instead of a helping hand, I found an industry of financial advisors dominated by glorified salespeople working on commission - pushing products that were not in my mother’s best interest. Or advisors with minimums that shut-out all but the ultra wealthy. Disappointed with the options, I took matters into my own hands and launched Foundry Financial, a wealth management firm with transparent pricing that specializes in helping provide clarity around money - so you have the confidence to make smart decisions.My goal is to help a million people retire without worry!
📅 THE BASICS OF RETIREMENT PLANNING
Retirement planning has several steps, with the end goal of having enough money to quit working and do whatever you want. Our goal is to help people master retirement and retire without worry.
Step 1: Know when to start retirement planning. When should you start retirement planning? The earlier you start planning, the more time your money has to grow. That said, it’s never too late to start retirement planning. Even if you haven’t so much as considered retirement, don’t feel like your ship has sailed. Every dollar you can save now will be much appreciated later. Strategically investing could mean you won't be playing catch-up for long.
Step 2: Figure out how much money you need to retire, The amount of money you need to retire is a function of your current income and expenses, and how you think those expenses will change in retirement.
Step 3: Prioritize your financial goals. Retirement is probably not your only savings goal. Lots of people have financial goals they feel are more pressing, such as paying down credit card or student loan debt or building up an emergency fund.Generally, you should aim to save for retirement at the same time you're building your emergency fund - especially if you have an employer retirement plan that matches any portion of your contributions.
Step 4: Choose the best retirement plan for youA cornerstone of retirement planning is determining not only how much to save, but also asset allocation. It can make a massive difference in your retirement plan.
Step 5: Select your retirement investments. Retirement accounts provide access to a range of investments, including stocks, bonds and mutual funds. Determining the right mix of investments depends on how long you have until you need the money and how comfortable you are with risk. It’s often helpful to talk with an adviser to discover the right mix of stocks and bonds.
❣ SPONSORED No, this video was not sponsored.
⚠️ "DISCLAIMER:⚠️This is not financial or investment advice. This Channel is meant for EDUCATIONAL AND ENTERTAINMENT PURPOSE only. None of this is meant to be construed as investment advice, it's for entertainment purposes only. #retirementplanning #retirement #passiveincome

[@foundryfinancial]

Did you consider the widow's penalty? (Quick Note: I had to re-release this video to fix an error -- if you feel like you're having Déjà vu.)

[@peaceofcake8464]

This is an important topic. I have run the numbers using the American Academy of Actuaries 2012 IAM Basic Table for the joint mortality of a couple who are both 62 years old. The average length of time that the surviving spouse outlives the first spouse to die is 10 years.

[@davida4771]

Kevin, you do something that is really smart and that separates your brand from others who offer retirement advice. You have a defined "elevator speech" and it is excellent!!. Short, easy to understand and memorabe: "This channel is dedicated to help one million people retire without worry." That precisely captures what your target audience wants to know. I know Phil and Clare are proud of you. 🙂 Thsnk you for what you do!

[@foundryfinancial]

Haha. Thanks so much!

[@chrisforker7487]

Doesn’t account for the taxes paid on Roth conversions and lost investment returns from the amount paid in taxes on the conversions. It’s not a complete offset by any means, but something that needs to be factored in.

[@foundryfinancial]

Of course. But it’s something that should be calculated.

[@stephengreen8986]

Whilst I don't disagree that there is a widows penalty some planners say spend half your money by age 75. After this age most people spend their time closer to home and spend less.

[@flygirl5633]

Got the sense that whoever wrote the letter was not being very nice ... I appreciate you putting together these educational videos for free and think that if we like to learn more about a certain situation, we should ask nicely. For example, according to a 2022 Pew survey, 30% of the people over age 50 are single. We did not get nasty because most of your examples are for married couples.

[@foundryfinancial]

You’d be surprised at some of the nasty notes and comments. It always catches me by surprise. I should do more single content though! And thanks for the nice note.

[@sarashann]

I'm so sorry you receive the negative feedback. I think your content is very valuable. Thank you.

[@PraveenSriram]

So sorry about the negative and hate comments

[@challenger4992]

How much did they have to pay in taxes to fed and state when they did the Roth conversion?

[@MB-M-zr7vr]

Thanks! Could you confirm if spouse passed away, survival spouse could use married filing jointly for total three years on filing taxes?

[@samuelangel8898]

Do you have a website or a phone number where you could be reached at.? I feel that me and my spouse are in a fairly different situation, but this conversion is probably the route that we should be going.

[@foundryfinancial]

You can make an appointment on our firm website: foundryfinancial.org

[@randolphh8005]

The other reason to delay one check to 70, is that you can spend down the IRA and have potentially smaller RMDs! A win win, that requires no extra tax payments and increases the income that is taxed less, since the max of SS that is taxed is 85%. There are very few scenarios where a couple should not try for one large check.

[@randolphh8005]

@@MisterCurmudgeon If you are single your point makes some sense, if married none. Your spouse will get your PIA at age 67 as a survivor check. If you took early, she will get your small check for the rest of her life. Banking on dying early makes a lot of sense? Only if you are clearly unhealthy.

[@randolphh8005]

@@MisterCurmudgeon If both spouses have earnings records, then one early and one later, is usually a hedge, and just smarter.

[@jaynelson8304]

In my opinion the math doesn't make sense. You have them converting all $1.5M to get to zero RMD. That means converting $150,000/year for years 62-71 or ten years, paying an extra $9,800/year for the first five years, then taking SS, the next five years cost an extra $26,900/year. Total extra tax paid to convert is $183,000. All that to avoid paying $20,000/year at 80. Got to live to 90 for the math to work, and that's not considering the growth on the $183,000.

[@foundryfinancial]

Watch my video on Roth conversions to get a fuller picture. This is just one small sliver.

[@g.ajemian4968]

I am lol