Should you save for a house down payment or invest for retirement? How much long term capital gains tax do you pay on a rental property when you sell it after 20 years, and how does a 1031 exchange work? Also, opening a Roth IRA with the Backdoor Roth strategy, and the 5 year Roth withdrawal rules explained. Plus, a couple retirement spitball analyses: are you saving too aggressively for retirement? Can you avoid the Medicare IRMAA, or income related monthly adjustment amount, and high taxes from required minimum distributions?
Learn how to craft a retirement plan email question that’ll get you a model retirement spitball analysis. Plus, when should you contribute to Roth IRA, and when and how much of a Roth Conversion should you do? Is it hypocritical to prioritize investment returns over your conscience and values? Joe and Big Al talk ESG, or environmental, social, and governance investing, and they evaluate a strategy to keep taxes low while helping your kids buy a house. Finally, your comments about YMYW.
Inflation is high, interest rates are high, and the financial markets are volatile. Are bonds and series I bonds good investments or bad investments right now? How do bonds fit into your overall retirement portfolio? Plus, variable annuities, evaluating the long-term value of Roth contributions vs. Roth conversions, what if anything can be done about losses in an after-tax 401(k), helping adult kids buy a home – and drinks in the Derails.
If you own houses in your self-employed, self-directed solo 401(k), is converting a house a year to Roth to avoid required minimum distributions (RMDs) a good strategy? What’s an individual coverage health reimbursement arrangement (ICHRA) and is it a good healthcare option for those with C-corporations? When putting away retirement savings, should you contribute to a Roth IRA, a brokerage account, a 401(k), or your employee stock purchase plan (ESPP)? When it comes to step-up in basis, how do you determine the past fair market value of a home? And finally, what happens if you retire before your construction loan becomes a permanent mortgage?
How does Social Security work for self-employed small business owners? Is there a solo 401(k) that allows after-tax contributions? How much cold, hard cash should you keep on hand? Why do advisors suggest buying a fixed indexed annuity, and how do qualified charitable distributions work? Finally, is it a good idea to pre-pay the mortgage on a real estate investment, and how do you calculate the tax on a home you inherited?
Can multiple rental property losses be written off against other properties or income? What are the pros and cons of putting investment property in an LLC? How do you get the best tax breaks on rental real estate? How does real estate depreciation work? What do you need to think about when turning your primary residence into a rental property? Is a home equity line of credit (HECM or reverse mortgage) a good idea? Also: a complicated property inheritance, and self-funding long-term care insurance.
The pros, cons, and mistakes of rental real estate investing, how to eliminate mortgage payments and create monthly income with a reverse mortgage, and potential side hustles and passive income streams in retirement, presented by Alan Clopine, CPA, of Pure Financial Advisors and Your Money, Your Wealth®. Transcript: Andi: Alternative retirement income sources, real estate […]
What is a cap rate? What does cash-on-cash return mean? Joe and Big Al spitball on rental real estate investing as an early retirement income source. Plus, the stacking rule, the foreign earned income exclusion, and taxes and working – or not – after retirement. Finally, at what point are you saving too much to pre-tax accounts, and is it a good idea to convert to that post-tax Roth before the tax brackets change?
It’s a question we get asked a lot… and a decision that should not be made lightly until you have made sure you’re buying for the right reasons. Rental real estate can be a great asset class to own. It can provide steady streams of income, it can be tax efficient due to depreciation, and […]
You’ve saved money for a house downpayment. Should you invest it in the stock market until you’re ready to buy that property? Should a young saver take as much investing risk as possible, or buy a condo? Plus, the tax efficiency of robo-advisor brokerage account withdrawals, backdoor Roth conversions under the Build Back Better Act, using a charitable remainder trust to avoid inherited IRA tax under the SECURE Act, and listener comments on our pension and capital gains compilation episodes.
Buying and selling real estate, whether investment property or your primary residence: how do you estimate net investment income tax when selling your house? Is the all-in-one mortgage a temporary solution when buying a new home before selling your current home? How do prop 13 and prop 19 factor into buying property in California with your kids? Should you pay down your mortgage or save for retirement? Plus, what’s the best way to pay credit card debt? Do corporations really pay no taxes? Can you contribute to both Roth IRA and Roth 401(k)?
Question: I’m deciding whether to buy a condo and have my son as a renter (so it cash flows) or just putting the money in the stock market. Which investment generally gets a better rate of return just from a numbers standpoint? Greg, Del Mar Watch the full episode, Stress-Test Your Retirement Plan Make sure to […]
Joe and Big Al answer several versions of what is probably the most common question we get here on YMYW: should we convert money from tax-deferred retirement accounts to Roth, with tax-free growth on our investments for life? Should we do Roth conversions before we get married? Should we do a 403(b) to Roth conversion? When and how much should we convert to Roth if we want to keep our ACA subsidy? Should we do Roth conversions with more aggressive funds first? If we use our cash to pay the tax on Roth conversions, will we run out of money for our early retirement? And to cap it off, something completely different: can you sell without selling your house? What do the fellas think of Ric Edelman’s answer to the question, “should you pay off your mortgage?”