Ep. 209 – Paul Fenner – Navigating the Impacts of the One Big Beautiful Bill During the Empty Nest and Pre-Retirement Years
Do you know what one of the most underrated life transitions is? And how the “One Big Beautiful Bill” may impact it?
Today, I delve into the often-overlooked yet pivotal transition of entering the empty nest and pre-retirement phase. Drawing on years of experience working with families, I share personal reflections and practical insight about the emotional and financial shifts that occur at this stage of life.
I explore why maintaining strong relationships with partners is more important and challenging than ever, especially as statistics show divorce rates spike for those in their 50s and 60s. I also unpack the impact of the OBBB does and, more importantly, what it doesn’t do for your tax planning, retirement catch-up contributions, deductions, healthcare, and gifting strategies.
From actionable advice on Roth conversions and sequence withdrawals to navigating health insurance before Medicare eligibility, I cover the complex landscape that pre-retirees face. I candidly share why now is the time to prioritize clear objectives, family communication, and a thoughtful financial plan, blending both heartfelt perspective and practical analysis.
Whether you’re approaching this life stage or helping a loved one through it, this episode is packed with critical insights to help you maximize your emotional and financial well-being.
Connect with Paul
Contact Paul here or schedule a time to meet with Paul here.
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And feel free to email Paul at pfenner@tammacapital.com with any feedback, questions, or ideas for future guests and topics.
ADDITIONAL RESOURCES YOU MAY LIKE
1 Big Idea to Think About
At the empty nest and pre-retirement stage, maintaining intentional communication and investment in your relationship with your partner is just as crucial as your financial planning—because both have profound impacts on your future wellbeing.
1 Way You Can Apply This
Strengthen your financial and personal well-being in the empty nest or pre-retirement stage by prioritizing open conversations with your spouse about your shared goals and lifestyle plans. By intentionally investing time in your relationship—just as you do in financial planning—you lay the foundation for a more harmonious, fulfilling next chapter and help avoid costly missteps, ensuring both your partnership and your finances continue to thrive.
1 Question to Ask
Am I as intentional about investing in my personal relationships—especially with my spouse or partner—as I am about planning my finances and retirement?
Key Moments From the Show
00:00 Empty nest and pre-retirement: a major, often underrated, life transition.
00:59 Losing connection with your spouse after kids leave; emotional and financial costs of late-life divorce.
02:00 Investment in personal relationships is as important as financial planning.
03:39 Big Beautiful Bill: No increase in marginal tax brackets, slight standard deduction increase, unchanged itemized deductions.
04:25 Retirement catch-up contributions explained; income thresholds and phaseouts matter more at this stage.
05:34 SALT deduction increase (2025-2029) and phase-outs; impacts of Roth conversions on eligibility.
08:34 Vehicle interest deduction explained—limited value due to new car and income restrictions.
10:16 Complexity of new rules and deductions; “simplification” did not truly materialize.
10:59 Standard deduction usage is high; itemizing is rare—planning still matters.
11:59 Health care gap: retiring before Medicare (65) means higher costs; no new bill relief.
12:45 Marriage penalty risk as income likely peaks; quick phase-out of deductions for high earners.
13:57 Reduction or elimination of energy home efficiency credits; impacts of downsizing or remodels.
15:17 Key planning actions: Roth conversions, despite deduction phase-outs, usually more beneficial overall.
16:14 Sequencing withdrawals from different accounts to optimize after-tax returns.
17:18 Importance of building a healthcare bridge for early retirement.
18:14 Social Security concerns: insolvency, possible changes, but still critical to include in retirement planning.
19:17 Keeping Social Security in the plan is vital, especially if deferring benefits.
20:26 Housing and lifestyle strategy: importance of alignment with your partner.
21:34 Defining your purpose and objectives—critical for successful financial planning.
22:00 Gifting support: understanding charitable deductions, gifting to kids and grandkids, and estate planning limits.
23:07 New universal non-itemized charitable deduction available, even with standard deduction.
24:27 Managing restricted stocks, stock options, and capital gains risk adds new complexity at this life stage.
25:28 Parenting never stops—even as empty nesters, family financial decisions remain central.
26:31 Reflections from working with families: financial life planning is ever-evolving, and support is always available.