Posts by Brandon Renfro, CFP®, RICP, EA
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Ask an Advisor: We Give $8K Per Year to Charity from Our IRA. How Do We Report it to Avoid Taxes?
I’m 73, married and file my taxes jointly with my spouse. My IRA is in Vanguard mutual funds. We make about $8,000 annually in contributions to charities. I understand that direct contributions from an IRA to charities can reduce the amount of taxable RMDs. Do these contributions need to be direct wire transfers from Vanguard… read more…
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Ask an Advisor: As Interest Rates Fall, Is There a Better Way to Invest My $250K That’s ‘100% Safe?’
I am 66 years old and I still intend to work into my 70s. I have over $250,000 in an IRA (100% no risk, based on interest rates). But as interest rates go down, so does the money it makes. Is there a better solution that is 100% safe? – Ed I take your use… read more…
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Ask an Advisor: We Only Have $150k in Savings but $78k in Social Security and a $650k Home. Can We Retire?
My wife and I are 66 years old. She retired at 62 and is already collecting Social Security. I plan to retire at the end of this year at 67. We only have approximately $150,000 in a 401(k) account together and we will get approximately $6,500 in Social Security per month when we retire. We… read more…
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Ask an Advisor: Does the 10-Year Rule Apply to the IRA I Inherited Years Ago?
I inherited an IRA from an aunt in 2009 and have been receiving the RMD each year since 2010. If the 10-year rule went into effect in 2019, how does it affect my inherited IRA from that point forward? Does that mean I have to draw it down to zero by 2029? If so, can any… read more…
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Ask an Advisor: Should I Start Itemizing My Taxes Now That Trump’s ‘Big Beautiful Bill’ Is Law?”
The Tax Cuts and Jobs Act of 2017 nearly doubled the standard deduction, leading about 90% of taxpayers to go this route instead of itemizing their deductions. You’re likely among them. But with the passage of the “One Big Beautiful Bill Act,” signed into law on July 4, 2025, you may be wondering whether it’s… read more…
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Ask an Advisor: Can I Take My Late Husband’s Social Security and Switch to My Benefit at 70?
I am a widow and plan to work until my full retirement age (FRA). However I was wondering if I could draw my late husband’s Social Security benefits at age 67 or 68 and then switch to my own at age 70? I am currently 61 years old and my salary is $150,000. I own… read more…
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Ask an Advisor: I Had to Pay Extra for Medicare Last Year. How Do I Avoid This Happening Again After a Roth Conversion?
I’ll reach my RMD distribution age in 2026, and I’m trying to figure out how much I can transfer from my traditional TSP account into an external Roth IRA in 2025 without exceeding the IRMAA threshold for Medicare Part B premiums. I had to pay a significant premium last year because I exceeded the threshold.… read more…
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Ask an Advisor: I Have $1M in My IRA. How Much Will I Pay in Taxes When RMDs Begin?
I have $1 million in my IRA. Once I reach 73 years of age what are the withdrawal requirements? I retired five years ago with no income other than Social Security. What tax bracket will I be in when I begin withdrawing 4% of my IRA? – Clifford Once you reach age 73, you’ll need… read more…
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Ask an Advisor: I’m the Breadwinner But I’m 6 Years Younger Than My Wife. Does She Have to Wait Until I Hit FRA to Claim Spousal Benefits?
When can a spouse who is older than the primary breadwinner claim spousal benefits? My wife, who was born in 1956, is six years older than me. She claimed her Social Security benefits at 62, three years before her full retirement age (FRA). Her check is under $400 per month, as she hasn’t worked in… read more…
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Ask an Advisor: We Have $1.4M Saved for Retirement. Can We Afford to Spend $7k Per Month?
I turn 59 in September 2025 and I plan to retire at 62 with no debt. I have $1.2 million in a traditional IRA and $200,000 in a workplace Roth 401(k). I have an emergency cash fund in a high-yield savings account. I earn $320,000 per year and annually contribute $30,000 to the Roth 401(k), plus… read more…
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Ask an Advisor: Do I Have to Take RMDs from the IRAs That I’m Inheriting from My Mother?
I inherited an IRA from my mother who was already taking RMDs when she passed away. Am I required to take RMDs from the inherited IRA, or does the IRA simply need to be depleted by 10 years from the date of inheritance? I don’t have any special needs or disabilities. Similarly, are RMDs required… read more…
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Ask an Advisor: We Own Millions in Real Estate Through Self-Directed IRAs. How Do We Transfer it to Our Sons?
My wife and I own five senior homes in our self-directed IRAs. How do we transfer them to our two sons after we die? Under the new IRS rules it appears that the boys have only 10 years to take the money out. The houses are worth about $1.75 to $2 million in total now.… read more…
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Ask an Advisor: Can My Wife Collect Social Security on My Earnings Record and Switch to Hers at Age 66?
I’m 57 and my wife is 48. Both of us work, but my wife makes much less money than I do (almost 1/3 of what I make). I am planning to retire at age 66 and start collecting Social Security benefits. It is my understanding that I will be eligible for full benefits ($3,653 per… read more…
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Ask an Advisor: I Want to Roll Over $60k to a Roth, But Need Help Tax Planning. Can I Offset Part of My Tax Bill By Donating Some of the Money?
I’m interested in converting a traditional IRA into a Roth IRA and want to know if taxes are due at time of the rollover. Currently, I have $95,566 in a traditional IRA and would like to roll over $60,000 to a Roth IRA. Also, is it possible to have part of the taxes designated as… read more…
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Ask an Advisor: Where Should I Put the $110k I’m Getting from My Divorce to Avoid Taxes and Medicare Increase?
I’m getting $110,000 from a 401(k) through a divorce QDRO. Where should I put the money to avoid excess tax and IIRMA implications? I’m 70 and my only income comes from Social Security. – Ran You have a few options, but be mindful that the tax impact and IRMAA implications of each won’t necessarily be… read more…
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Ask an Advisor: Should My Wife Convert her $350k-$400k to a Roth IRA? She’s 65 But Isn’t Retiring Anytime Soon
My wife is currently working and has a traditional IRA with approximately $350,000 to $400,000. She is almost 65 but not looking to retire anytime soon. Should she roll over her IRA and take a tax hit and open a Roth IRA? I’m not sure if this is a smart move at this time in… read more…
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Ask an Advisor: Should I Move Some of My $650k from Stocks to Precious Metals?
My total investment value is approximately $650,000, mostly in stocks. Should I keep a percentage of my portfolio in precious metals? – Rex Investing a portion of a portfolio in precious metals is a common practice. If you keep the allocation modest — around 5% — I think it’s okay to use precious metals for… read more…
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Ask an Advisor: I’m 69 With $370k in Equities, But I’m ‘Getting Nervous’ About the Stock Market. What Should I Do?
I am a healthy, active 69-year-old with $370,000 in equities but I’m getting nervous that stocks are overvalued. My portfolio has no bonds. I am interviewing financial planners but due to a negative experience with a firm a few years ago, I am having a hard time trusting anyone else with my hard-won savings. What… read more…
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Ask an Advisor: My Wife Will Retire 2 Years Before Her Full Retirement Age (FRA). How Do We Calculate Her Spousal Benefit?
I am 76 and I have been receiving my benefit since age 62—four years before my full retirement age (FRA). My wife is now 61 and will retire at age 65—two years before her FRA. She will begin drawing her teacher retirement from the State of Texas, which is no longer subject to the Government Pension… read more…
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Ask an Advisor: Will the $500k in My Retirement Account Be Taxed When My Heirs Inherit it?
I have about $500,000 in a 403(b) account. I am writing my will and I do not know whether the money in my 403(b) will be subject to taxes when it is distributed to those I list in my will. Or, will the money just pass directly to those whom I have named? – Bill Bill,… read more…
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Ask an Advisor: We Sold an Investment and Our Medicare Part B Premiums Shot Up to $592. Can We Avoid This Increase?
I sold an investment property which made my income very high for that year. Medicare Part B premiums increased to $591.90 for both me and my wife. Is there any way to avoid that increase? Our Part D premiums increased as well. -Fred First off, congratulations on selling your investment property. Unfortunately, there likely isn’t… read more…
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Ask an Advisor: I’m 54 and Inherited a $100k Annuity from My Mom. Should I Take the Lump Sum or Monthly Payments?
I inherited a non-qualified annuity from my mom. I am on SSDI and I receive $1,800 per month. The annuity is worth $100,000. I am trying to decide whether to take monthly payments for the rest of my life, which should be about $450 a month, or take the lump sum (between $80,000 and $90,000… read more…
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Ask an Advisor: My Net Worth Is $3.76M and I’ll Collect $4,600 Per Month in Social Security. How Much Can I Afford to Spend on a House in Retirement?
How much can I afford to pay for a home and still maintain a comfortable retirement without worrying about running out of money? I’m 66 and I have about $1.78 million in a taxable investment account, $1.5 million in IRAs, $309,000 in a Roth and $115,000 in a deferred compensation plan. I also have a… read more…
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Ask an Advisor: I Have 2 Years Before I’m Eligible for Medicare. What’s My Best Option for Health Insurance?
What’s the best route for medical insurance without a work place option? I need two years of coverage before Medicare kicks in. – Robert Health insurance and its associated costs are an important consideration in retirement – even more so if you retire before qualifying for Medicare at age 65. I don’t think there’s any… read more…
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Ask an Advisor: Can I Invest My $10,000 RMD into an Annuity to Avoid Paying Taxes on It?
Here is my question, which uses hypothetical values for simplicity: My RMD for 2024 is $10,000. Can I avoid paying the IRS the tax on that $10,000 this year by investing the full $10,000 RMD or the value of the tax on the $10,000 into a qualified longevity annuity contract (QLAC). I just retired in… read more…