S4E5 – January 2025 Financial Headlines

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Welcome to another episode of Kitchen Table Finance! Join hosts David Shotwell and Nick Nauta as they break down the biggest financial headlines from January, so you don’t have to.

Articles Covered in This Episode:

1. How to Launch a Successful Consulting Business in Retirement

• Insights from a Wall Street Journal article on transitioning from a professional career to part-time consulting.
• Key takeaways:
  • Plan ahead and obtain the necessary certifications.
  • Treat consulting like a real business.
  • Consider working with your former employer as a client.
  • Charge based on your experience, not your time

2. How Seniors Can Donate More to Charity and Pay Less in Taxes

• Discussion on qualified charitable distributions, donor-advised funds, and tax-efficient ways to give.
• Why writing checks to charities might not be the best strategy.

3. Retirees Will Pay Twice as Much as They Think for Healthcare

• Breakdown of a Fidelity study: the average retiree spends $165,000 on healthcare—more than twice what most people expect.
• Why it’s crucial to factor healthcare costs into retirement planning.

4. 100% stocks for retirement? A new study says dump the 60/40 portfolio and target-date funds.

• MarketWatch report suggesting all-equity portfolios for retirees.
• Pros and cons of higher stock allocations and why diversification still matters.
• In their study, Anarkulova and her co-authors looked at what drives financial success in retirement by focusing on four key outcomes: how much wealth people have when they retire, the income they can generate during retirement, how well they preserve their savings, and the amount they can leave behind as an inheritance.
• On average, the optimal portfolio, which is rebalanced monthly, produces 50% more retirement wealth than a balanced fund and 39% more than a TDF. And this extra wealth translates into higher retirement income for those who follow the all-stock strategy, according to Anarkulova.

5. A One-Hour Exercise That Can Save You Thousands in 2025

• Conduct spending inventory! –  Take 1 hour to review and make a plan
• Plug leaks (subscriptions, etc.)
• Unsubscribe from advertising emails/texts
• Review last year’s numbers (write them down!)
  • Spending Post-Mortem
    • Why did I spend money in this category?
    • How can I budget for this category in 2025
    • How/should I cut on this category in 2025
      • Remove payment information
      • 24-hour waiting period
      • Fiscal fast for one month in category

6. How Will My Grandchildren Remember Me? These Seven Objects May Tell Them My Story.

• Thoughtful discussion on passing down meaningful items rather than just financial wealth.
• Downsizing with purpose while preserving family stories.

7. The Rise of Private Equity ETFs – Buyer Beware

• The push to include private equity in 401(k) plans and why it’s important to assess liquidity and risk factors.
• There are reasons access has been limited in the past
• Be wary of liquidity and safety concerns
• Just because you can buy it doesn’t mean that you should

8. What Economists Could Learn from George Costanza

• A New York Times article exploring why doing the opposite of economic forecasts might not be the worst idea.

9. Even Rich Retirees Fear Outliving Their Money

• Studies show those who spend more report greater retirement satisfaction, yet older Americans live below their means
  • Retirement consumption puzzle
  • 2.1% vs 4% rule
  • Fear making them miss out
    • Running out of money
    • Market downturn
    • LTC/health need
  • Give yourself permission to spend (or get permission from a professional!)

10. Biggest Regrets in Retirement

• Not starting to save and plan earlier
• Starting SS too early
• Retiring with too much debt
• No transition planning
  • Preparing emotionally
• The good news? 4-10 experience increased happiness

11. Secure Your Retirement Paycheck: The Power of Three Buckets

• 3 bucket approach to retirement asset allocation
  • Cash Bucket
  • Protected income/medium-term bucket
    • 15 years to provide guaranteed income
    • After 15 years refill with Long term bucket
    • The author suggests fixed index annuity
  • Stocks/growth/long-term

12. Should I Choose My Retirement Location Based on Where My Children Live?

• The emotional and financial factors of moving near family.
• How to balance independence with family ties.

13. Best & Worst States to Retire in 2025

• Florida tops the list again, followed by Minnesota, Colorado, Wyoming, and South Dakota.
• Michigan ranks at #25.

14. How Couples Can Manage Different Retirement Timelines

• 25% of people say they expect to retire with their spouse and only 11% of currently retired couples retired at the same time
  • Considerations:
    • Spending in the go-go years and a sense of security that leads to overspending (how do you reign it in when you both retire?)
    • Health insurance – what happens when you both retire before 65?
    • Social Security – does working help one or both partners delay?
    • Do you like each other enough? Rise of the Gray divorce

Resources & Contact Info:

🔗 Have an article you’d like us to review? Email us at info@srbadvisors.com
🔗 Visit srbadvisors.com for more financial planning insights.

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