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Financial Symmetry: Balancing Today with Retirement

Financial Symmetry: Balancing Today with Retirement

Written by: Chad Smith CFP® and Mike Eklund CFP®
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When considering retirement, do you wonder what financial opportunities you may be missing? Busy lives take over and years pass without taking advantage. In this retirement podcast, the Financial Symmetry advisors unveil financial opportunities, to help you balance enjoying today so you are ready to retire later. By day, they are fiduciary fee-only financial advisors who answer questions about tax savings, investment decisions, and how to save more. If you've been putting off your financial to-do list or are just not sure what you've been missing, subscribe to the show and learn more at www.financialsymmetry.com. Financial Symmetry is a Raleigh Financial Advisor. Proudly serving clients in the Triangle of North Carolina for over 20 years. Economics Management Management & Leadership Personal Finance
Episodes
  • 5 Misconceptions That Could Derail Your Retirement, Ep #261

    5 Misconceptions That Could Derail Your Retirement, Ep #261
    Jul 20 2026
    Planning for retirement can feel overwhelming, especially as you approach the transition from earning a paycheck to relying on your savings. The early phase of retirement brings unique challenges, and it's no surprise that there are plenty of misconceptions that can lead you astray. In this episode, we break down five of the most prevalent retirement myths, share insights from working with clients, and offer practical guidance to help you make confident, personalized decisions for your future. 1. "I'll Spend Less In Retirement Than When I Was Working" This is one of the most widespread assumptions—and financial media often reinforces it by suggesting you'll only need 70-80% of your pre-retirement income. However, the reality is often quite different. In early retirement, spending typically increases as retirees suddenly have more time for activities, hobbies, and travel that were perhaps squeezed out during their working years. Parental obligations can linger, with adult children sometimes relying on financial assistance well into their late twenties or thirties. Unexpected repairs, long-postponed home improvements, or even a burst of "retirement honeymoon" spending are common. Recognizing these patterns, and planning for them, can help set more realistic expectations for your retirement budget. 2. "I Don't Have Time to Recover from a Market Downturn Anymore" It's natural to become risk-averse as retirement nears; no one wants to see years of savings diminished by a bear market. Today's retirees are living longer than previous generations—often enjoying 25, 30, or even 35 years in retirement. This expanded timeline means you still have the potential (and perhaps the need) to ride out stock market fluctuations and recover from downturns. Avoiding growth assets altogether in favor of perceived "safety" may actually represent a different kind of risk: the erosion of purchasing power due to inflation. 3. "I'll Only Spend Interest and Never Touch My Principal" This "live-off-the-interest" approach may have worked in an era of higher interest rates, but it's limiting in today's environment. We advocate for a total-return strategy: you draw from a mix of interest, dividends, and capital gains as appropriate. This helps maximize your spending potential and accounts for variable needs and market fluctuations. Clinging to the old mindset of never spending principal may feel safer, but it can artificially constrain your quality of life and generosity toward loved ones or causes you care about. 4. "I Shouldn't Retire Before 65 Because of Health Insurance" Many people believe they must keep working until Medicare eligibility at 65 due to concerns about the high cost and complexity of health insurance. While the Affordable Care Act and COBRA have shifted the landscape, these options are often misunderstood or overlooked. Model retirement scenarios and run cost estimators to see if pre-65 retirement is out of reach or if it might be achievable—perhaps with an added planned expense for private insurance or by using available subsidies. Make decisions based on personalized numbers, not generalizations or fear. Sometimes, paying for private health insurance can be a worthwhile trade-off for earlier retirement and the memories made with family and friends. 5. "I Don't Need to Worry About Long-Term Care—I'll Just Stay in My Home" It's tempting to imagine that aging in place solves long-term care needs, but the reality is that nearly 80% of retirees require some form of long-term care eventually. Whether it's in-home assistance or moving to a residential community, the costs are significant—often $80,000 per year or more, and potentially much higher for round-the-clock or specialized care. Failing to plan for these expenses may burden loved ones and potentially result in less-than-desired care options. Medicaid is not a reliable fallback for most financially secure retirees. Outline of This Episode 01:53 Why early retirement often brings increased spending 05:26 Rethinking life expectancy reality06:44 Discussing financial planning strategies09:25 Misconception about living off interest13:22 Financial plan modeling: test scenarios to see if earlier retirement is feasible17:13 Importance of clarifying care intentions before a crisis arises Resources & People Mentioned 7 Common Misconceptions about Retirement Planning | CCRRBCInheritocracy by Eliza FilbyAbout the Affordable Care Act | HHS.gov Medicare Finances: A Perspective on the 2026 Trustees Report
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    23 mins
  • Five Common IRS Letters Explained, Ep #260

    Five Common IRS Letters Explained, Ep #260
    Jun 29 2026
    Six Essential Tips for Any IRS Letter Before diving into the specifics of the five most common letters, we share six universal tips to ground your response: Don't Panic – IRS notices are routine, and millions are sent each year. Receiving one doesn't mean you're uniquely targeted.Read Carefully – Understand exactly what the notice is about, and pay close attention to response deadlines, which are usually 30–60 days.Check the Notice Number – The code (CP2000, CP14, etc.) is a quick indicator of what issue the letter addresses.Verify Accuracy – Make sure you agree with what the IRS claims before responding.Respond Promptly – Ignoring the notice only escalates the situation.Recognize Communication Scams – The IRS will only contact you via postal mail, never by phone, text, or email. Delete any digital messages claiming to be from the IRS. 1. CP2000: Underreported Income The most anxiety-inducing letter is the CP2000, which suggests your reported income doesn't match what the IRS received from employers, banks, or investment firms. It usually happens when a W-2 or 1099 is forgotten or lost—perhaps from an overlooked brokerage account or stock plan. If you agree with the IRS assessment, the fix is easy: sign, pay, and you're done. If you disagree, submit a written response with supporting documentation. The best strategy is to prevent these in the first place by tracking every form and matching them up during tax prep. 2. CP14: Balance Due Notices This is the IRS's formal heads-up that you owe additional tax, interest, or penalties. Often, it's a result of not paying the owed amount with your return or missing a payment deadline. With interest rates rising in recent years, CP14 letters for underpayment penalties have become more commonplace. Quick action on your part reduces further penalties and interest. 3. Letter 5071C/4883C: Identity Verification The IRS likely suspects that your return could be fraudulent—or simply that it contains inconsistencies, such as a new address or a filing status change. Unfortunately, refunds are frozen until you complete verification, which is usually best done online due to IRS call volume. Though inconvenient, this step helps prevent scammers from receiving refunds in your name. 4. CP60/4870: Removed Payments & Bank Errors The CP60 notifies you that a payment or credit applied to your IRS account was reversed, perhaps due to a clerical error like misapplied Social Security numbers or tax years. Closely related, Notice 4870 penalizes you for insufficient funds if your electronic payment bounces—at a rate of 2% of the amount due, which stings when balances are high. Always double-check bank details and ensure funds are present when scheduling payments. 5. CP30A: Underpayment Penalty Charges If you were surprised by an interest charge after filing, it's likely a CP30A. This means your total payments through withholding or estimated taxes fell short, so the IRS is charging underpayment interest—currently around 7–8%. For those with irregular income (like business owners or those with bonuses), you can sometimes reduce the penalty by clarifying when income was received. Stay Diligent and Proactive IRS notices are an unfortunate but normal part of adult financial life. The best defense is to maintain diligent records, clarify any confusion before acting, and, if needed, seek out a qualified financial advisor for help. Many issues are quickly resolved once you respond—just don't let anxiety freeze you from taking action. Outline of This Episode [00:00] Dealing with IRS letter anxiety[05:53] Handling tax discrepancies[09:37] IRS identity verification process[12:48] IRS payment errors explained[15:19] Underpayment interest and IRS notices[18:13] Keeping accurate financial records Resources & People Mentioned The Retirement Podcast Network The Dreaded IRS Letter: Dealing with a CP2000, Ep #95 - Financial Symmetry, Inc. Connect With Chad and Mike https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh @TeamFSINCFollow Financial Symmetry on Facebook Subscribe To This Podcast Apple Podcasts <> Stitcher <> Google Play
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    20 mins
  • When Should You Make a Roth IRA Withdrawal?, Ep #259

    When Should You Make a Roth IRA Withdrawal?, Ep #259
    Jun 8 2026
    When it comes to retirement savings, Roth IRAs are among the most powerful tools for achieving tax diversification and financial flexibility. Knowing how and when to tap into your Roth IRA can make a tremendous difference in optimizing your tax situation, ensuring income over the years, and even establishing a valuable legacy for your heirs. On the podcast this week, we're digging into the strategic considerations around Roth IRA withdrawals, covering timing, special scenarios, tax rules, and advanced planning for both your retirement and your family's future. Roth IRA Withdrawal Rules Before you even think about crafting a withdrawal strategy, it's essential to understand the rules that govern Roth IRA distributions: Contributions: The money you contribute to your Roth IRA can be withdrawn at any time, free of taxes and penalties. This is because you've already paid taxes on these funds.Earnings (Growth): The gains in your Roth IRA—the earnings on your contributions—are subject to stricter rules. To withdraw these growth dollars tax- and penalty-free, you generally must:Be at least 59½ years old.Have held the Roth IRA for at least five years Roth IRAs offer unique flexibility since they aren't subject to required minimum distributions (RMDs) during the account owner's lifetime, allowing for long-term, strategic use. Timing Your Withdrawals: Three Key Life Phases Pre-Retirement Flexibility Withdrawing from your Roth IRA before retirement isn't common, but certain life events may make it necessary. Common scenarios include college costs not fully covered by a 529 plan, job loss or layoff, with the Roth IRA serving as an emergency fund if you lack other options, or a first-time home purchase, with special provisions allowing up to $10,000 of earnings to be withdrawn penalty-free for this purpose. While, ideally, your Roth contributions keep compounding for retirement, knowing that you can access them penalty-free if needed provides valuable peace of mind—especially for younger savers balancing competing priorities. Strategic Retirement Withdrawals Once you reach retirement, timing and tax strategy become crucial. Most advisors recommend tapping taxable brokerage and pre-tax accounts (like traditional IRAs or 401(k)s) first, saving Roth IRA withdrawals for years when you need extra flexibility. Scenarios where a Roth withdrawal is especially powerful include when you want to avoid higher tax brackets or Medicare surcharges, or you want to maximize healthcare subsidies. Withdrawing from your Roth IRA rather than from pre-tax accounts can help keep income below the "cliff" and preserve valuable subsidies. Careful coordination, often with personalized modeling or tax projections, ensures you maximize lifetime tax efficiency—not just minimize taxes in a single year. Legacy and Heir Planning For many, the ultimate goal is to leave a financial legacy. The Roth IRA shines here because withdrawals by beneficiaries are tax-free, although subject to a 10-year withdrawal rule for most non-spouse heirs. By positioning the Roth IRA as a legacy asset, you create flexibility for both yourself and your beneficiaries while minimizing future tax headaches. Why a Personalized Withdrawal Strategy Matters Retirement income planning is complex, with countless moving parts: tax brackets, healthcare premiums, surprise expenses, and more. The accumulation phase may seem simpler, but the drawdown phase is where careful coordination—and making the most of your Roth IRA—ensures long-term success and peace of mind. Detailed, personalized planning is the key to maximizing your savings and retiring with confidence. Outline of This Episode [01:08] Roth IRAs will likely be used for withdrawals eventually, but not typically first [03:54] Why you might make pre-retirement withdrawals[06:08] Roth IRA withdrawals in retirement[08:00] Managing withdrawals to optimize taxes[12:19] Managing pre-tax and after-tax accounts[14:55] Personalized financial planning and tax strategies Resources & People Mentioned The Retirement Podcast Network Roth Conversion by the Decades, Ep #171 Which Roth Account Is the Right Scoop for You? Ep #245 Your Retirement Secret Weapon: The Mega Backdoor Roth, Ep 144 Connect With Chad and Cameron https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh @TeamFSINCFollow Financial Symmetry on Facebook Subscribe To This Podcast Apple Podcasts <> Stitcher <> Google Play
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    16 mins
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