The Top 5 Listener Questions of 2022, Ep #100

<p>We’ve made it to 100 episodes! So in this special edition of the Retirement Made Easy podcast, I’ll answer five questions from the first quarter of 2022. These questions cover a wide variety of topics that are all important to know, from paying off your mortgage to following the “4% rule.” Make sure you give it a listen!</p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[0:22] Make sure you check out RetirementMadeEasyPodcast.com!</li> <li>[1:39] My three-step process to help you retire </li> <li>[5:13] Listener Question #1: Should Bill pay off his mortgage?</li> <li>[8:28] Listener Question #2: What do you need to know about annuities?</li> <li>[12:05] Listener Question #3: Social security and 401k distributions</li> <li>[16:14] Listener Question #4: Can you put your 401k in savings bonds?</li> <li>[17:35] Listener Question #5: Does following the 4% rule work?</li> </ul> <h2>Listener Question #1: Should Bill pay off his mortgage?</h2> <p>Bill wants to retire in two years. He owes $82,000 on his home but recently inherited $100,000. Other than the mortgage, he is debt-free. Should he pay off his house when his mortgage rate is only 3%?</p> <p>Do you want a mortgage when you retire? I wouldn’t. You won’t be taxed on the $100,000 you inherited, so you can easily take $80,000 and pay off your mortgage. Then you can take the money you’ll be saving and beef up your emergency fund or save more for retirement. </p> <p>Then you have to figure out what to do with the remaining $20,000. Who knows, maybe the inheritance will allow you to retire earlier. I recommend updating your written retirement plan to see what options are available.</p> <h2>Listener Question #2: What do you need to know about annuities?</h2> <p>This listener met with someone who offered them two “guaranteed” annuities. The slick salesperson said they were “free” and didn’t have fees. Is that true? </p> <p>Yes, some annuities don’t have fees. If they don't have fees, they have “surrender charges.” For example, if you