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Planning for retirement is a challenge, just like the game of golf. Only 3.2% of retirees have a million dollars in their retirement accounts, and only 1-2% of golfers annually make a hole-in-one. Luckily, you don’t need a hole-in-one to win the financial game – but you do need a strategy. Joe Anderson, CFP® and […]
What should you do when the asset allocation of your retirement portfolio drifts? Joe and Big Al spitball on rebalancing for DJ in St. Louis. Plus, Coach Dobber in Minnesota is curious about municipal bonds in a brokerage account, and Daniel in Stevensville, Michigan needs details on emergency funds. Also, can Tim the Enchanter do a Roth conversion and avoid the “nasty, big pointy teeth” of capital gains tax? Duke in upstate New York told his wife they need 6 million dollars in retirement, and she said he was silly. What say Joe and Al? We’ll find out.
John in Boston is in the 32% tax bracket. Should he do Roth conversions? Flight Deck Dad and Irish Girl in Pensacola have a lot of tax-free pension income. Should they do Roth conversions? Bert and Ernie in New Jersey wonder if they should convert to Roth or take advantage of zero percent capital gains tax rates. Joe Anderson, CFP® and Big Al Clopine, CPA spitball for all of them today. Plus, Michael and his wife in Bellevue are 34, in the 24% tax bracket and wonder if they should contribute to tax-free or tax-deferred accounts, and if they should slow down on retirement savings and start a bridging account for the years between when they want to punch the clock in their early to mid-50s, and when they can access their retirement savings. Then, for something completely different, Frenchie from Maine writes back in: What are the disadvantages to paying off her mortgage ASAP, and what’s the tax efficiency of a money market compared to bond funds?
You’ve heard the phrase, “The best-laid plans of mice and men often go awry”? One wrong move can derail your entire retirement. Don’t let the unexpected turn your dream into a nightmare! In this episode of Your Money, Your Wealth®, Joe Anderson, CFP®, and Big Al Clopine, CPA, reveal how 10 risks can break your […]
Will your taxes go up? Stay the same? Go down, even? Jeffrey Levine is Chief Planning Officer at Focus Partners, Professor of Practice in Taxation at the American College of Financial Services, and the Lead Financial Planning Nerd at Kitces.com. In other words, he’s one of the savviest tax minds in the country. Jeff returns to the show today on Your Money, Your Wealth® podcast number 524 with Joe Anderson, CFP® and Big Al Clopine, CPA, with his thoughts on what will happen to taxes under the new administration, saving for retirement in a Roth IRA vs. a traditional IRA, managing inherited retirement accounts, and the future viability of Social Security. Plus, what should you do with required minimum distributions (RMDs) when you don’t need the money to live on? How do you calculate the maximum amount you should convert from your retirement account to a tax-free Roth account, and how much should you convert – or not – to keep RMDs under control? Finally, how can minor beneficiaries avoid probate?
What is your retirement income style? Dr. Wade Pfau, CFA, RICP®, is the co-founder of RISAprofile.com, providing investors with retirement income style awareness. He returns to Your Money, Your Wealth® today on podcast number 522 to talk about four different styles of retirement income, distribution planning, and the four percent rule. Plus, what does Dr. Pfau think will happen with President Trump’s 2017 tax cuts, scheduled to sunset at the end of this year? What are Dr. Pfau’s thoughts on annuities as part of your retirement plan? Next, “Joe Anderson’s Top 5 Things” to help you manage the impact of all this market volatility on your portfolio. Also, Joe and Big Al spitball for “Al Bundy” in St. Louis: what withdrawal strategy makes sense for him, and what he should do with his IRA and 401(k) money?
So many different IRS rules can cause you to pay more taxes than necessary on required minimum distributions, Social Security and Medicare, long-term capital gains, your investments, and more. Joe Anderson, CFP®, and Big Al Clopine, CPA outline 11 tax traps and the escape routes that’ll help you keep more of your money in retirement […]
What does the future hold for your Social Security under the new administration? Nationally-renowned financial thought leaders Jamie Hopkins, Jeff Levine, Eric Ludwig, and Steve Parrish share their insights with Big Al Clopine, CPA at the American College of Financial Services’ Horizons Conference in San Diego. First, the College’s President, George Nichols, gives an overview of the institution and their inaugural conference. Plus, Joe and Big Al spitball on whether Ricky and Lucy in Wisconsin even bother saving for retirement – they’re expecting to inherit about 20 million dollars. When should Tybob in Arizona collect Social Security? Are Roth conversions right for him? Should he go for Medicare or Medicare Advantage? Speedy Racer in Georgia needs a retirement spitball, and Gilligan in New York shares insight for other Gilligans trying to avoid a retirement shipwreck.
Martin and Caterina in Green Bay are in their 40s and haven’t yet saved a million bucks. Are they on track to retire at age 58? Can Piggie and Kermit in California retire today at ages 50 and 57 and still build wealth for their children? Can Galahad and Zoot in Chicago retire early in their 50s, or do they need to keep working? Do Bo and Daisy have enough saved to retire now at 61 and 56? Plus, Chuck in South Carolina asks, if you can retire early, why wouldn’t you?
How much do Nick and Nora in Pittsburgh, and Doc Mc Muffin and her Mr. in Minnesota, need to have saved, and how much can they afford to spend in retirement? What are the disadvantages to Fred and Ethel in Virginia if Ethel collects her Social Security early? Are the Moonshiner and the City Girl in Florida so obsessed with avoiding RMDs and IRMAA that they’re wasting too much savings on Roth conversions? Finally, will the tax benefits on a rental property offset the negative cash flow for Lily’s 29-year-old son, who has started his professional career with a $750K salary?
The word “taxes” may not be on the top of everyone’s list of favorite things to address. But, with some forward-looking preparations, managing your taxes does not have to be burdensome with the help of this tax planning guide. In this guide, you’ll learn… Important Tax Deadlines Retirement Account Limits & Roth IRA Income Limits […]
What is the risk with BDCs, or business development company funds? Edward in Illinois wants to know. Do Pebbles and Bam Bam in Kentuckystone have too much invested in T-bills? Are mutual funds or ETFs a better place for them to invest qualified money in the decumulation phase? Is there a difference between a traditional IRA and a rollover IRA? Keith in Connecticut is 34 and wants a spitball on whether his investments are appropriate for his time horizon. Plus, Gus in Philly needs a withdrawal strategy for his dad’s multi-year guaranteed annuities (MYGAs). Speaking of MYGAs, YouTube viewer Ken thinks everyone should invest in MYGAs and bonds, and nobody should ever pay a financial advisor. What do Joe and Big Al think? Finally, comments on your state of residence for tax purposes, the prorated sale of a primary residence, bonds vs. a pension, and focusing on PERMA – but what is it?
YMYW Podcast Best of 2024: we’re revisiting your favorite topics of last year, spitballing on strategies for building up tax-free retirement income in Roth accounts, determining your appropriate mix of taxable, tax-deferred, and tax-free savings (also known as tax diversification), and finding out whether YMYW viewers and listeners can retire as soon as possible.
Does it make sense for Alex and his wife in Massachusetts to do Roth conversions now to the top of their eventual tax bracket? Steve in San Diego got serious about saving for retirement after Joe and Big Al gave him some tough love 5 years ago. Is he good to retire now, and should he convert to Roth? Can Barbara in New Jersey’s grandson move excess 529 funds to a Roth and withdraw the money after 5 years? P. Ware has a cunning plan to gift appreciated stock to avoid capital gains tax, but will it work? Should Mike create a limited liability company (LLC) for his rental properties? Qualified charitable distributions (QCD) don’t make sense to GetSmart Paul. Sherri in California wonders if her kids can inherit her savings account without any tax penalty, and whether there’s a safe, high-yielding investment she should put it in. Finally, Houry in New York wonders if her IRA can fund a charitable remainder unitrust (CRUT).
Joe and Big Al spitball on paying the tax on your Roth conversions: if you take the money out of your retirement account, what does Joe mean that you’ll be “paying the tax to pay the tax to pay the tax”? Can you pay it from the Roth account itself, or from your monthly pension tax withholding? Are the fellas wrong on this whole topic altogether? They also spitball on withdrawing Roth 401(k) contributions that were rolled to an IRA, those infamous 5-year rules for withdrawals from Roth accounts, when to do Roth conversions, saving to tax-deferred, taxable, or tax-free accounts, and how long-term capital gains taxes fit into the picture. Plus, consolidating individual stock investments, the fate of the home office deduction, and what Joe thinks about the Apple Podcasts reviewer who says he’s “checked out”.
