Ready For Retirement with James Conole, CFP®

Episode: Retiring After 65? The Rules Change (Hint: You Can Spend More)
Date: December 28, 2025

Episode Overview

In this episode, James Conole discusses how retirement planning shifts if you’re retiring after age 65. Contrary to popular belief, delaying retirement doesn’t just mean “more of the same”—the retirement “rules” actually change in several important ways. James explores how your withdrawal rates, investment philosophy, tax strategy, and priorities should adjust, emphasizing that:

• You may be able to spend more aggressively
• Go-go years are fewer and more valuable
• Tax and Medicare considerations change
• Strategic planning is crucial for both financial and lifestyle outcomes

Major Discussion Points & Insights

The Withdrawal Rate “Rule” Changes

[01:06]

• Traditional withdrawal rates (ex: the 4% rule) assume a 30–40 year retirement:
  “If you only have, for example, 20 years that you're planning for in your retirement, using a number like 4% to plan for the rest of your life, you're probably leaving a whole lot of money on the table.”
• A shorter retirement horizon = higher possible withdrawal rates:
  • For a 20-year retirement: 6–7% withdrawal may be sustainable
  • For a 10-year retirement: Possibly 10%+ withdrawal
  • Not financial advice—align the approach to your own situation
• Key quote:
  “You may have far more permission to spend, especially in those go-go years, than you initially thought you might.” [03:26]

Make the Most of Compressed “Go-Go Years”

[04:01]

• Retiring later compresses your most active retirement years:
  • “If you're retiring, say at 70…on average, you might only have five years left of the go-go years.”
  • Compare that to retiring at 62, you might have ~13 go-go years.
• Front-load experiences:
  • Travel, time with family, giving—do these early, before health may decline.
  • “Make sure you don't let those go-go years pass you by…sometimes they come to an abrupt end.” [05:24]

Investment Strategy & Market Downturns

[07:10]

• Retiring later = less time to recover from market downturns, but...
  • “You still might have 20 plus years left of living…over 20 plus years, you still need to make sure you have the investment portfolio that can offset inflation.”
• Higher Social Security and other income sources reduce reliance on portfolio withdrawals:
  • “The higher your outside income sources, the less at risk you are of sequence-of-return risk.” [09:25]
• Advised approach:
  • Hold at least five years of “conservative bucket” to ride out market dips
  • Don’t become overly conservative by default—align your asset allocation with your real longevity and income needs

Compressed Tax Planning Window & RMDs

[12:47]

• RMDs (Required Minimum Distributions) kick in soon after retiring late
  • If retiring at 70 with RMD age 73, you have only 3 years for Roth conversions/tax maneuvers—compared to 13 years for an early retiree.
• Strategy:
  • Same framework (tax bracket awareness, tax arbitrage), but compressed timeline.
  • More urgent to implement impactful tax moves shortly after retirement.

Qualified Charitable Distributions (QCDs)

[15:56]

• After turning 70½, you can make tax-advantaged QCDs directly from your IRA to charity.
  • “It saves you money in taxes. The charity doesn't pay any taxes on the gift.”
  • QCDs also count toward your RMDs.
• Example: Gift $10,000 from IRA, it reduces RMDs accordingly.

IRMAA Surcharges and Medicare Premiums

[17:56]

• IRMAA (Income-Related Monthly Adjustment Amount) surcharges:
  • Calculated using a two-year lookback.
  • You can petition Medicare to recalculate if your income drops after retirement.
  • “You can actually challenge that by submitting the form and saying, ‘here's what my income will actually be.’” [18:35]
• Treat IRMAA like a tax, but note the “cliff” thresholds (not progressive):
  • Be careful of going just over a threshold, as surcharges jump steeply.
  • “If you are right up against one IRMAA threshold…it might make sense to be a little bit strategic.” [20:15]

Survivor Planning

[22:16]

• Retiring later = less time together as a couple on average.
• Key planning elements:
  • How Social Security is affected for a surviving spouse
  • Surviving spouse’s tax brackets are usually halved, but RMDs and income may not decrease
• Emotional and logistical preparation:
  • The “non-money” spouse should know key financial contacts, processes, and what to do if left alone
  • “One spouse typically tends to be the money person…the other spouse typically is not…make sure there's a plan in place…when both the financial side of this as well as the emotional side…” [23:55]

Prioritizing Health

[26:09]

• “Investing in your health is not an expense. This truly is an investment.”
• Without health, you can’t enjoy the travel, family time, or activities you saved for.
• Make health a core priority, especially with fewer “go-go” years.

Notable Quotes & Timestamps

• “If you’re only spending 4% of your portfolio, that’s less than half of what you probably could be spending…” (James Conole, [02:28])
• “Make sure you’re not letting those go-go years pass you by…You won’t get those years back.” ([05:24])
• “The higher your outside income sources, the less at risk you are of sequence-of-return risk.” ([09:25])
• “Treat IRMAA the same way [as a tax], with one caveat…not a progressive thing—your surcharge just jumps to that next level…” ([20:00])
• “Retiring later is not a disadvantage, it’s simply different.” ([27:38])
• “Retirement is not just a math problem. You need to get the math right so the retirement can be all that you want it to be.” ([28:06])

Key Takeaways

• Adjust your withdrawal rate upward—don’t underspend due to outdated rules.
• Intentionally front-load experiences and value your compressed high-energy years.
• Plan your investments to protect against market downturns but don’t be overly conservative by default.
• Act quickly on Roth conversions and tax moves due to a short pre-RMD window.
• Use QCDs for efficient charitable giving after age 70½.
• Be mindful and strategic about IRMAA surcharges.
• Prepare both financially and emotionally for the surviving spouse.
• Make health maintenance a central focus from day one.

By recalibrating your assumptions and plans after 65, you can create a richer, more fulfilling retirement that matches your true priorities and makes the most of the years (and assets) you have.