Good morning, Retirement Starts Today Community! Welcome to Every Day is Saturday, the newsletter reminding us that in retirement, every day is Saturday (including Thursday mornings).

​​I recently had the privilege of being a guest on the YouTube channel, Retirement Planning Education. We had a great conversation about some "hot topics" in retirement planning. Click here to watch.

​​Click here to view a recent video from my YouTube channel about The Roth Conversion Trap Retirees Never See Coming — Until It’s Too Late

​Click here to work with us!

Episode Breakdown:

00:00 – Welcome and Introduction
​01:21 – Retirement Headline
​​11:05 – Listener Question

​Listen on Spotify | Listen on Apple​

Retirement Headline

Why Some Advisors Are “DAF-fy” for Donor-Advised Funds (and why 2025 may beat 2026)

A quick tour of what’s changing and why timing matters:

• The One Big Beautiful Bill Act (OBBBA) reshapes itemized charitable deductions starting in 2026. Two big shifts:
  1. A floor: only the portion of charitable gifts above 0.5% of your modified AGI is deductible.
  2. A lower cap: the maximum charitable deduction falls to 35% of modified AGI (down from 60% today).
• SALT: the potential state & local tax deduction could be higher (up to ~$40,000) but phases out with income—further complicating itemizing math.
• Standard deduction remains “supersized,” so even more households will default to standard in 2026—making it harder for routine givers to get itemized credit.
• Above-the-line cash-gift deduction (starting 2026): up to $1,000 single / $2,000 married filing jointly. It’s for cash gifts to public charities only (DAFs and private foundations don’t qualify). It’s small, not indexed, and may not impact other “line” calculations the way headlines imply.

​

Why 2025 stands out:

• If you’re charitably inclined and have a higher-than-usual income year (business sale, RSUs, buyout, property sale), bunching multiple years of giving into a Donor-Advised Fund (DAF) in 2025 can lock in today’s more favorable rules.
• DAFs let you:
  • take the full deduction in 2025, and
  • grant to charities over time at your pace (a “charitable checking account”).
• Powerful combo: fund the DAF with appreciated securities instead of cash to avoid realizing capital gains and still get the deduction.
• Remember: itemizing still has to beat the standard deduction (about $31,500 MFJ in 2025, plus age add-ons). If itemizing won’t win, a DAF contribution won’t help your taxes this year.

​

Key Takeaways:

• If a big-income year is on deck (or already here), 2025 is a prime window to bunch giving into a DAF under current rules.
• In 2026, expect a 0.5% AGI floor and a 35% cap—harder for moderate givers to itemize.
• Above-the-line cash deduction (2026+) is modest and excludes DAFs; nice-to-have, not a game-changer.
• Appreciated shares → DAF can stack benefits: avoid gains + get the deduction (if you itemize).
• Always run the math with your advisor/CPA before year-end.

​

Listener Question

“We’re retiring and moving closer to family. Should we fund the new home by pulling a lump sum from investments (and pay taxes) or by taking a mortgage (and pay interest)?” — Kristy

The framework I use with clients:

• First, pre-59½? Consider the 10% penalty if tapping IRAs; potential exceptions include the Rule of 55 (if assets remain in the employer plan and the plan allows) or SEPP/72(t) structures—each with strings attached.
• Compare total interest cost vs total tax cost across realistic paths:
  • One-time IRA withdrawal vs spreading over several years,
  • 15- or 30-year mortgage paid faster than scheduled,
  • A hybrid approach (partial withdrawals + smaller mortgage).
• “Pick the pain you hate least.” Financial independence means you don’t have to chase the strictly smallest number if the difference is modest and a particular path (no debt vs lower taxes) matters more to you.
• Practical underwriting tip: banks like W-2s. If you’re already retired, establish consistent portfolio income on paper for a few months before applying (and have your advisor provide a verification letter).
• Roth-conversion math repurposed: if we were going to convert $X for tax-planning anyway, you can instead distribute $X to help fund the house—economically similar for this year’s taxes, while moving wealth from “right pocket” (IRA) to “left pocket” (home equity).
• Estate nuance: heirs generally get a step-up in home basis; inherited Roth IRAs remain tax-free. Either way, you’re rearranging the balance sheet—just be sure the tax/IRMAA spike doesn’t become destructive.

​

Resources

• ​Click here to view my YouTube channel, Even Better Retirement
• ​Click here to order my book, Retirement Starts Today: Your non-financial guide to an even better retirement
• ​Click here to read, Why Some Advisors Are Daffy For Donor-Advised Funds

I need your help...

I will be starting a new segment on my podcast: Retire TO something, not FROM something.

The segment will be brief at the end of the show and will share a fun retirement idea, along with links to learn more. Volunteer work and part-time “fun” jobs will be a common theme.

​Click here to share your ideas!

That's it for our four hundred and sixth installment of "Every Day is Saturday." As always, I read (and usually reply to) every listener email. Got a question? Hit reply—you just might hear your name on the show.

Enjoy your “Saturday,”
​Benjamin Brandt

​