April is Financial Literacy Month, a yearly event to raise public awareness of the importance of financial literacy and maintaining smart money management habits. We believe that a healthy financial future starts with financial education and literacy. We firmly believe that it’s never too late to start your financial literacy journey.

We’re celebrating this April by introducing our team of talented fiduciary advisors who will share their knowledge, expertise and actionable insights on relevant financial topics. We believe that by opening access to greater financial literacy, we further Retirable’s mission to empower a confident, worry-free retirement for everyone.

This week’s spotlight is on Michael Russo, Financial Advisor at Retirable.

Get to know Michael Russo

Mike graduated from Kutztown University with a B.S. in Clinical/Counseling Psychology. After college, Mike worked for a foster care agency where he was tasked with providing independent living skills to youth who were transitioning to life on their own. This is where he found his love for providing financial education and promoting financial literacy.

He has been working in the financial industry for 5 years, obtaining his series 6, 63, and 65 licenses, and is currently working towards his Certified Financial Planner (CFP®) certification. When he is not working, Mike can be found spending time with his family, outside, cooking, or reading. He loves being outdoors and running around with his 3 children. During baseball and football season he can be found on the sidelines cheering on his son.

Why is financial literacy important to you?

I believe that being educated (financially or otherwise) leads to opportunities. Oftentimes in life, we miss opportunities because we’re not aware of the options we have. When we are educated on topics and learn what options exist, we are in a position to make decisions that are in our best interest and to help those around us.

What do you love about being a financial advisor?

My favorite part of being a financial advisor is educating clients to help them make important life decisions. Seeing clients joyful and relieved after a financial planning session knowing they can achieve their goals in retirement is a very rewarding experience.

What is an area of finance that many pre-retirees/retirees are not familiar with, but understanding it may help their financial picture?

Many people have heard of a lifetime annuity before, but understanding how they work is extremely beneficial when planning for retirement. The key is to know when they should be used.

An annuity can be great for people who have limited fixed income in retirement and are having to take large distributions from their bank and investment accounts to meet their income needs every year. The annuity would be able to provide a stream of income for the rest of the client's life, adding to their fixed income sources, in exchange for some of their liquidity now.

However, if you’re in a position where the majority of your retirement income needs are coming from fixed sources, like pensions and SS, then giving up your liquidity may not be the best option for your plan. The perfect retirement income combination varies for everyone, consulting with a financial advisor is a great way to determine your best options.

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What is a common decision that you see retirees and pre-retirees struggling to make? How can a financial advisor help in making that decision?

Decisions around required minimum distributions (RMDs) can be difficult when you are facing them alone. How much do I need to take? Which accounts do I need to take them from? What happens if I don’t take an RMD? What do I do if I don’t need the money? These are all common questions we are faced with around RMDs.

Starting at age 73, we are required to take distributions from our qualified accounts and pay taxes on them. These accounts include employer-sponsored plans (401(k), 403(b), 457(b), profit-sharing plans) and IRAs (Traditional, SEP, and SIMPLE).

An advisor will be able to help figure out what your RMDs are every year and get that money to you from the proper accounts. This will help avoid any penalties associated with not taking the proper distribution. Your advisor can then help you decide what to do with the money once you take that distribution and help to optimize for recent legislation like The SECURE 2.0 Act, passed in 2022.

If you don’t need that money to supplement your income, it can be invested elsewhere to help fund your goals down the road.

Why should people work with Retirable to build their dream retirement?

Our process is rooted in understanding. We always start with taking the time to get to know you and understand your retirement needs and goals. Once we understand you and your goals, we can start building the plan together. Financial Literacy Month is a great time to start building your ideal retirement. Schedule an appointment with Mike today!

Need help making sense of it all?

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