This is the third and final installment of our discussion with Brett Layton, which explores key updates to tax laws, including estate tax limits, the alternative minimum tax, expanded uses of 529 plans, new “Trump accounts” for children’s savings, and changes to clean energy credits and business taxes. It emphasizes the importance of understanding these updates for effective financial and tax planning.

Takeaways

• Estate tax limits are increasing, providing more leeway for wealth transfer.
• Paying income taxes can strategically reduce your taxable estate.
• The estate planning community has been advocating for higher exemptions.
• 529 plans are evolving to cover a broader range of educational expenses.
• Trump accounts allow children to start saving without needing earned income.
• The government will contribute to Trump accounts for eligible children.
• Bonus depreciation for businesses has returned to 100%.
• The first $15 million of capital gains from qualified small business stock is tax-free.
• Understanding these tax changes is crucial for effective financial planning.
• The complexity of tax laws continues to increase, necessitating careful planning.

Chapters

00:00 Estate Tax Changes and Implications 07:08 Alternative Minimum Tax and Its Impact 11:25 Expanded 529 Plan Eligibility 17:19 Introduction of Trump Accounts 29:42 Clean Energy Credits and Business Tax Changes

Links

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”

The conversation explores key tax topics, including below-the-line deductions, charitable contributions, mortgage insurance deductions, gambling taxes, and the taxation of Social Security benefits. It also discusses potential changes to Affordable Care Act subsidies and highlights the importance of proactive tax planning to navigate these complexities.

Takeaways

• The state and local tax deduction has seen significant changes.
• Charitable contributions now have a new floor for deductions.
• Mortgage insurance premiums are deductible under certain conditions.
• Gambling winnings are taxed differently than before.
• Social Security benefits remain taxable under existing rules.
• The Affordable Care Act subsidies may change significantly in 2026.
• Tax planning is crucial to avoid unexpected liabilities.
• Itemized deductions can be complex and require careful calculation.
• Understanding AGI is essential for tax deductions.
• Changes in tax laws can impact charitable giving behavior.

Chapters

00:00 State and Local Tax Deductions: Changes and Challenges 03:59 Roth Conversions and Tax Brackets 05:45 Below-the-Line Deductions and Itemization 06:42 Charitable Donations and Tax Changes 12:21 Mortgage Insurance Premiums and Deductions 15:20 Gambling Losses and Tax Implications 25:40 Social Security Benefits and Taxation 30:59 Affordable Care Act Subsidies and Changes

Links

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

In this episode of Retire with Style, hosts Alex Murguia and Wade Pfau are joined by CPA Brett Leyton to discuss the new tax provisions introduced in the One Big Beautiful Bill Act. The conversation covers essential topics such as federal income tax brackets, standard deductions, and various new below-the-line deductions that can benefit taxpayers, especially seniors. The episode delves into the complexities of tax planning, emphasizing the importance of strategic planning in light of the new legislation. Listeners will gain insights into how these changes can impact their financial planning and tax strategies moving forward.

Takeaways

• Tax planning is crucial for all income levels.
• The complexity of tax rules requires comprehensive planning.
• New tax brackets simplify some aspects of tax planning.
• Standard deductions have significantly increased for 2025.
• Seniors can benefit from additional below-the-line deductions.
• Qualified business income deductions are now permanent.
• New deductions for tips and overtime pay are introduced.
• Auto loan interest deductions have specific requirements.
• Charitable contributions can be deducted even if not itemizing.
• Understanding phase-outs is essential for effective tax planning.

Chapters

00:00 Introduction to Tax Planning and the One Big Beautiful Bill Act 02:54 Understanding Federal Income Tax Brackets 06:11 New Below-the-Line Deductions: Age 65 Plus 09:07 Qualified Business Income and Its Implications 11:51 Exploring Qualified Tips and Overtime Pay Deductions 14:59 Auto Loan Interest Deductions Explained 17:45 Charitable Contributions for Standard Deduction Filers 21:03 State and Local Tax Deductions: Changes and Challenges

Links

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”

In part two of their conversation, financial advisors Alex Murguia and Dan Haylett explore the challenges of financial advising, focusing on client objections, the importance of listening, and integrating emotional well-being into financial planning. They discuss strategies for engaging clients, the role of structure in retirement, and the risks that come with a lack of it. Dan also shares insights from his book, The Retirement You Didn't See Coming, highlighting the need for a holistic approach that addresses both the financial and non-financial sides of retirement.

Takeaways

• Advisors should be prepared to handle client objections with curiosity and understanding.
• Listening is a crucial skill that can enhance client relationships.
• Using worksheets can facilitate deeper conversations with clients.
• Structure in daily life is essential for mental wellbeing, especially in retirement.
• Lack of structure can lead to unhealthy habits, including substance abuse.
• Money is a significant emotional factor in people's lives and should be addressed in planning.
• Advisors have a unique opportunity to facilitate discussions about money and emotions.
• Dan's book is designed to be a resource that can be referenced at any time during retirement.
• The most dangerous day in retirement often comes when novelty wears off.
• Financial advice should integrate both the mathematical and human aspects of money.

Chapters

00:00 The Importance of Open Conversations 00:58 Handling Client Objections 04:36 Creating Structure in Retirement 09:40 The Risks of Lack of Structure 14:05 The Interconnection of Money and Emotions 15:40 The Structure of 'The Retirement You Didn't See Coming'

Links

Are you an Advisor? Ready to take your prospect and client conversations to the next level? Join Wade Pfau and Alex Murguia for a free webinar, “How to Close Prospects & Increase Wallet Share.” You’ll see how the RISA framework streamlines meetings, builds trust faster, and creates a scalable process for long-term growth

Two live sessions available: October 8 or 9, from 1:00–2:30 PM ET Visit risaprofile.com/podcast to register now.

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

In part one of their conversation with Dan Haylett, Wade Pfau and Alex Murguia explore the human side of retirement planning. They emphasize that financial planning is only part of the equation and discuss the emotional and psychological challenges retirees face. Dan introduces the five pillars of a thriving retirement: purpose, identity, relationships, structure, and well-being. The discussion highlights how finding new sources of meaning and connection after leaving a career is essential for a fulfilling retirement.

Takeaways

• Retirement is about more than financial numbers—it’s deeply human.
• Many retirees struggle with a loss of purpose and identity.
• The five pillars of a thriving retirement are purpose, identity, relationships, structure, and well-being.
• Money provides the freedom to pursue interests and purpose.
• Retirement often brings major shifts in identity and relationships.
• Building new social connections is essential for fulfillment.
• Emotional and psychological planning is as important as financial planning.
• Discussing potential challenges early helps ease the transition.
• Retirement affects not just individuals but also family and friends.

Chapters

00:00 Introduction to Retirement Planning 01:10 The Human Side of Retirement 05:09 Day 182: The Reality of Retirement 08:07 The Five Pillars of a Thriving Retirement 11:06 Finding Purpose in Retirement 15:11 Identity Crisis in Retirement 20:16 The Impact of Work Relationships 28:18 Facilitating Purpose in Retirement 31:52 Navigating Life's Challenges in Retirement 34:07 The Importance of Open Conversations

Links

Are you an Advisor? — Ready to take your prospect and client conversations to the next level? Join Wade Pfau and Alex Murguia for a free webinar, “How to Close Prospects & Increase Wallet Share.” You’ll see how the RISA framework streamlines meetings, builds trust faster, and creates a scalable process for long-term growth

Two live sessions available: October 8 or 9, from 1:00–2:30 PM ET Visit risaprofile.com/podcast to register now.

🎉 We’re About to Hit 200 Episodes! 🎉

Can you believe it? Retire With Style is closing in on our 200th episode, and we want you to be part of the celebration!

Whether you’ve been with Wade and Alex since episode one or just joined the party, this milestone wouldn’t be possible without listeners like you. Help us mark the occasion by sending in a short video or voice note to share your favorite moment, biggest takeaway, or just some kind words for the guys.

We’re also running a special giveaway to thank our community — and yes, there will be prizes.

👉 Be a part of Episode 200 by visiting https://retirewithstyle.com/join-episode-200 to join the celebration!

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

In this conversation, Wade Pfau, Alex Murguia and Bill Bengen discuss various aspects of retirement planning, focusing on risk management, asset allocation, and the implications of market conditions on withdrawal rates. Bengen shares insights on adjusting the traditional 4% rule based on current market valuations and inflation, emphasizing the importance of a diversified portfolio and the role of annuities. The discussion also covers the significance of sequence of returns risk and the potential benefits of rising equity glide paths in retirement strategies.

Takeaways

• A 65% stock allocation is recommended for retirees.
• Risk management involves adjusting asset allocations based on market conditions.
• The first 10 years of retirement are crucial for long-term success.
• Diversification is key to mitigating risks in retirement portfolios.
• Annuities can play a beneficial role in retirement income planning.
• Market valuations should influence withdrawal rate strategies.
• Rising equity glide paths may help manage sequence of returns risk.
• Monte Carlo simulations can provide insights but have limitations.
• The 4% rule may need adjustments based on current economic conditions.
• Retirement planning should consider both historical data and future projections.

Chapters

Get Bill Bengen’s New Book – A Richer Retirement Want to dive deeper into the research behind the 4% rule and how retirement income planning has evolved? Bill Bengen’s new book, A Richer Retirement, is now available—visit bengenfs.com to learn more and get your copy.

🎉 We’re About to Hit 200 Episodes! 🎉

Can you believe it? Retire With Style is closing in on our 200th episode, and we want you to be part of the celebration!

Whether you’ve been with Wade and Alex since episode one or just joined the party, this milestone wouldn’t be possible without listeners like you. Help us mark the occasion by sending in a short video or voice note to share your favorite moment, biggest takeaway, or just some kind words for the guys.

We’re also running a special giveaway to thank our community — and yes, there will be prizes.

👉 Be a part of Episode 200 by visiting https://retirewithstyle.com/join-episode-200 to join the celebration!

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

In this live Q&A session, Wade Pfau, Alex Murguia, and Bill Bengen discuss the intricacies of safe withdrawal rates in retirement, focusing on the relevance of the 4% rule, the impact of inflation, and the importance of investment strategies. They explore various topics including the significance of account types, the risks associated with stock picking, and the necessity of adjusting withdrawal rates based on market conditions and personal circumstances. The conversation emphasizes the need for a tailored approach to retirement planning, considering factors like tax efficiency and rebalancing strategies.

Takeaways

• Inflation is a significant risk in retirement planning.
• The 4% rule is not a fixed rule and can vary.
• Longer planning horizons require lower withdrawal rates.
• Account types affect the net amount available for withdrawal.
• Stock picking can be risky and is not recommended for most.
• Market conditions can influence safe withdrawal rates.
• Adjusting withdrawal rates in response to inflation is crucial.
• Understanding current vs. synthetic withdrawal rates is important.
• Annual reviews of withdrawal plans can help manage risks.
• Tax efficiency should be considered in withdrawal strategies.

Chapters

00:00 Introduction to Safe Withdrawal Rates 05:30 Understanding Account Types and Withdrawals 09:25 Small Caps and Future Performance 15:10 Annual Review of Withdrawal Plans 19:36 Immediate Actions in High Inflation 21:22 Customizing Withdrawal Strategies 22:55 Tax Considerations in Withdrawals 23:44 Withdrawal Strategies from a Multi-Fund Portfolio 26:45 Replacing Micro Caps in Portfolios

Links

Get Bill Bengen’s New Book – A Richer Retirement Want to dive deeper into the research behind the 4% rule and how retirement income planning has evolved? Bill Bengen’s new book, A Richer Retirement, is now available—visit bengenfs.com to learn more and get your copy.

🎉 We’re About to Hit 200 Episodes! 🎉

Can you believe it? Retire With Style is closing in on our 200th episode, and we want you to be part of the celebration!

Whether you’ve been with Wade and Alex since episode one or just joined the party, this milestone wouldn’t be possible without listeners like you. Help us mark the occasion by sending in a short video or voice note to share your favorite moment, biggest takeaway, or just some kind words for the guys.

We’re also running a special giveaway to thank our community — and yes, there will be prizes.

👉 Be a part of Episode 200 by visiting https://retirewithstyle.com/join-episode-200 to join the celebration!

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips