ABOUT HOSTS

Joe Anderson
ABOUT Joseph

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 firm opening. When Joe began working with Pure Financial in 2008, they had almost no clients, negative revenue and no [...]

Alan Clopine
ABOUT Alan

Alan Clopine is the CEO & CFO of Pure Financial Advisors. He currently leads Pure Financial Advisors along with Michael Fenison and Joe Anderson. Alan joined the firm about one year after it was established. At that time the company had less than 100 clients and approximately $50 million of assets under management. As of [...]

Published On
July 18, 2015

What is community property with rights of survivorship and why is it better than joint tenancy? Joe and Al give you the answer in this second hour of our podcast. Also on today’s agenda: dividend paying strategies, longevity and understanding tax laws.


1:50 “If you looked 20, 30 years ago, for the generation previous, they had pension plans, Social Security, shorter life expectancies, they weren’t necessarily investors–they were savers”

5:51 “A better approach is to have a globally diversified portfolio and create your own dividend”

6:23 “The search for the holy grail of investing is a problem, because there’s something called the behavior gap”

7:23 “When are you most likely to buy? Well, it’s after the market’s had a good run…and what are you doing? Buying high”

8:52 “Most of our assets held by us are in retirement accounts, and when you take money out of retirement accounts you pay ordinary income tax rates—that’s the highest of tax rates”

9:20 “It’s all about understanding the tax law, where you should hold certain investments”

9:35 “It’s where your assets are located and where your investments are that are going to impact what your taxes are”

16:52 “No matter what your capital gain rate is, compared to the ordinary income tax rates that go as high as 39.6%, it’s a deal—it’s already there”

17:20 “If you sell a stock at a gain, and you’re in the regular 15% tax bracket, you don’t pay any tax”

18:37 “Taxes don’t stop when your paycheck does, in fact tapping your retirement nest egg actually comes with all sorts of new rules and opportunities”

21:36 “We think that when it comes to retirement and financial planning, taxes and investments, there’s a lot to know; it’s harder than it used to be”

22:13 “The planning that you’ve done to accumulate wealth needs to change once you hit retirement or are close to retirement, because sequence of returns risk is a very serious thing”

24:45 “Some of the most successful people in this world are able to execute a plan; even if the plan is not perfect, if they execute it appropriately it will be a lot better than nothing at all”

29:01 “Our firm does not sell any products; we are a fee-only registered investment advisor, everything is written as a fiduciary”

32:30 “Most of you, if you’re married, you have your title in a joint tenancy and that’s not the best way to go—let me explain”

32:40 “The better way to go is community property with rights of survivorship”

34:02 “Community property with rights of survivorship means that both my spouse’s part and my part, even though I’m a survivor, gets stepped up”

34:26 “When the first spouse passes, the survivor, as long as it’s community property with rights of survivorship, gets a full step up in basis”

35:31 “The 121 Exclusion is you get $250,000 excluded from taxes of gain on your primary residence if you’re single and $500,000 if you’re married, as long as you’ve lived in the property the last two out of the past five years”

38:58 “You can save more money than you think, but you must have a forward-looking tax-efficient strategy”

 

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