Investing Questions & Answers

Joe and Al start the hour answering frequently asked investing questions then explain key factors to look for when choosing a financial advisor. Should you choose a fee-only or fee-based advisor and does it matter if they follow the fiduciary standard? Find out.

2:27 “I’m currently employed by two employers, which brings my yearly income to $170K. I understand my pre-tax contributions. One of my employers now offers a Roth contribution. Am I eligible to contribute to only one employer’s Roth?”
4:54 “Yes, you can contribute to both plans…can you contribute to a Roth in either or both plans? The answer is yes.”

8:15 “I just purchased a home in January 2015 and I’m now wanting to sell with a potential profit of about $60K. I am newly married as of May 2016, and would like to file Head of Household to avoid paying Capital Gains. My income alone is $44K and married we are at $74K. I would like to be sure that I am under the radar and not having to pay capital gains tax if I sell today.”

9:32 “When you’re married, you can’t file head of household unless you’ve been separated for six months and have not lived with your spouse for six months.”

15:46 “You want to work with a fiduciary 100% of the time where there are no other licenses. If they have a broker-dealer affiliation, they sell products.”

20:45 “An overwhelming percentage of retirees are very satisfied or somewhat satisfied with their financial health.”

25:39 “If you look at the average 401(k) or IRA balances of those who are 55-64…it’s $100,000. If you look at all people age 55-64, the median retirement account balance is $12,000 (Source: TIAA CREF Survey).”

28:52 “My wife and I both draw on our Social Security Insurance benefits. We are both 68 years old. We just adopted 3 grandchildren. Does this change our benefits in any way?”

30:38 “I will be retiring in a month or so and will be about 2 years before the mandatory withdrawal. Where can I park my money so that I have the least management fees and can earn some returns?”