Second Quarter Summary of Webinar Take-Aways

 

We are almost halfway through 2026 and it’s time for another quarterly summary of takeaways from webinars, podcasts, and classes that I have recently attended. Below are nine nuggets that stood out to me as I reviewed notes taken in my personal learning journal:

The Importance of Tax Planning- Reasons include 1. Paying taxes at lower rates because the U.S. has a progressive tax system, 2. The tax code is full of traps (e.g., marriage penalty, NIIT, IRMAA, AMT, kiddie tax, widow’s penalty), and 3. Different parts of the tax code need to be coordinated.

 

RMD Withdrawals- Reducing future RMDs can help avoid being forced into a higher tax bracket. For example, make Roth conversions in your 60s if already retired and your income is lower. Some people, however, may not be able to avoid the high tax rates associated with a large RMD.

 

IRMAA- The Income-Related Monthly Adjustment Amount, an extra surcharge added to Medicare Part B and Part D premiums for higher-income beneficiaries, is not a lifetime sentence. Every year there is a reset. Use form SSA-44 to request a smaller premium due to a life event (e.g., widowhood).

 

Investment Risk- There is no such thing as a “free lunch” in life or investing. In addition, there is no perfect investment (high return, risk-free, and tax-free). Volatility (how much the price of an investment rises and falls over time) is the “cost of admission” for investing.

 

OBBBA Tax Law- There is confusion regarding “no tax on Social Security” and the new senior tax deduction. Social Security IS still taxed and the senior tax deduction is age-based (65+) and income-based (phase-outs apply) and has nothing to do with receiving Social Security. New child savings accounts roll out in July with $1,000 of government seed money for children born from 2025-2028.

 

Financial Education Impact- The best time for financial literacy classes is 11^th grade. Students are interested in financial topics by then but don’t have distracting “senioritis.” Financial education allows students to mess up in a “fake world” (e.g., case studies) to avoid mistakes in the real world.

 

Limiting Beliefs- Far too many people quit far too soon, instead of persisting, due to self-limiting beliefs. They tell themselves they are not capable and don’t even try. The #1 determinant of whether people reach their goals is whether they quit. Break big goals into small achievable steps.

 

Retirement Risks- Key risks facing older adults are running out of money in retirement, the effects of inflation, market volatility and sequence of returns risk (retiring into a down market), longevity risk (living longer than you think), increasing health care expenses, and the cost of long-term care.

 

Late Retirement Savers- The biggest “catch-up” lever for late starters is their savings rate. It takes about 10 to 15 years of aggressive saving to catch up (to typical 40-year savers) after a late starter “wakes up.” The average age of starting to save for retirement is 32. Late start savers and FIRE (financial independence, retire early) proponents have a similar savings timeline.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.