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This episode of “Your Money, Your Wealth” covers common IRA mistakes that could potentially take half of your retirement account.  Mistakes like forgetting about taxes, not knowing when or how to calculate required minimum distributions and having an outdated or incorrect beneficiary form could cause serious financial and personal burdens that are difficult to recover from.  CFP® Joe Anderson and CPA Al Clopine show you how to avoid these IRA mishaps so you can have a successful, stress-free retirement.


1:33 “[The IRS] is waiting for three things to happen: they’re waiting for you to make a mistake…they’re waiting for you to reach a certain age (70 ½)…and they are also waiting for you to die”

5:41 “If you have an IRA you have to start pulling money out of it whether you want to or not at age 70 ½”

11:12 “Did you know that the typical household needs to save 15% of their annual income to have enough money to retire on?” (Source: Center for Retirement Research at Boston College)

13:51 “If you do not take [the required minimum distribution] at age 70 ½, there’s a 50% penalty”

14:57 “You want to look at your balance in your IRA at year end, and then you divide it by your life expectancy factor, which is from an IRS table, and that factor at 70 ½ is 27 so you take your balance divided by 27, and another way to say that is to take your balance and multiply it by about 3.6”

15:27 “As you age, you need to take more and more out of your IRA and therefore you have more and more that’s taxable”

15:37 “If I’m married to someone that’s ten years younger, then your required distribution goes on a different table, so it gets a little complex once you start taking the distributions out”

16:02 “Each year that you age, that required distribution increases, increases, increases until you die”

16:42 “Maybe you’re divorced, but you didn’t change it to the kids, so you want to make sure that you have the right beneficiary”

22:41 “When you are 70 ½ you have to take that required distribution but the IRS says you can actually push that off until April 1st of the following year.  But if you do that, now you have to take two required distributions in that year”

25:34 “As interest rates go up, bond prices fall”

About the Hosts

Joe Anderson

President

CFP®, AIF®

As President of Pure Financial Advisors, Joe Anderson has led the company to achieve over $2 billion in assets under management and has grown their client base to over 2,160 in just ten years of the...

Alan Clopine

CEO & CFO

CPA, AIF®

Alan Clopine is the CEO & CFO of Pure Financial Advisors. He currently shares the CEO role with Michael Fenison, the original founder of the company. Alan is primarily responsible for the day-to-day activities of...