Managing Your Financial Future

The Unintended Consequences of Social Security’s Survivor Benefits- Season 5: Episode 2
Managing Your Financial Future

The Unintended Consequences of Social Security’s Survivor Benefits- Season 5: Episode 2

March 9, 2021

You may have heard that Social Security provides a “survivor benefit,” which allows a surviving spouse to continue to receive their deceased spouse’s benefits. The original intention (back in 1940) was to ensure that widows would not be left without a Social Security payment. Today, though,  with many dual-working households (and thus two Social Security benefits), those same survivor benefit rules may actually cause the survivor to take a cut in benefits — in some cases, by nearly 50%. How is that possible? And, even more importantly,  how can you strategize to keep this from happening?
The 3 Biggest Risks Facing Your Portfolio Today- Season 5: Episode 1
Managing Your Financial Future

The 3 Biggest Risks Facing Your Portfolio Today- Season 5: Episode 1

March 2, 2021

It’s a fact that retirees in general dislike spending down their savings.  In today’s low interest rate environment, and given declining dividend yields, how should one remove money from a portfolio for income without damaging the portfolio’s integrity and longevity? There are several possible routes to take, and unfortunately, many people may be tempted to reach for yield with either low-quality bond purchases or stocks with higher dividend yields.  But doing so almost certainly will raise the risk within a portfolio without any guarantee of higher returns.
Is It Time to Re-Think the “4-Percent Rule?”- Season 4: Episode 12
Managing Your Financial Future

Is It Time to Re-Think the “4-Percent Rule?”- Season 4: Episode 12

February 8, 2021

It’s a fact that retirees in general dislike spending down their savings.  In today’s low interest rate environment, and given declining dividend yields, how should one remove money from a portfolio for income without damaging the portfolio’s integrity and longevity? There are several possible routes to take, and unfortunately, many people may be tempted to reach for yield with either low-quality bond purchases or stocks with higher dividend yields.  But doing so almost certainly will raise the risk within a portfolio without any guarantee of higher returns.
Creating Income When Interest Rates Are Low- Season 4: Episode 11
Managing Your Financial Future

Creating Income When Interest Rates Are Low- Season 4: Episode 11

February 2, 2021

It’s a fact that retirees in general dislike spending down their savings.  In today’s low interest rate environment, and given declining dividend yields, how should one remove money from a portfolio for income without damaging the portfolio’s integrity and longevity? There are several possible routes to take, and unfortunately, many people may be tempted to reach for yield with either low-quality bond purchases or stocks with higher dividend yields.  But doing so almost certainly will raise the risk within a portfolio without any guarantee of higher returns.
A Better Way to Take Your RMDs?- Season 4: Episode 7
Managing Your Financial Future

A Better Way to Take Your RMDs?- Season 4: Episode 7

December 22, 2020

Required minimum distributions (RMDs) are just a fact of life for most owners of an IRA or retirement plan account.  While RMDs are suspended for 2020, under normal circumstances, you typically must begin taking minimum withdrawals from those accounts (in most cases) at age 72. Given these circumstances, if you’re charitably inclined, you may be able to take advantage of a little-known strategy known as a Qualified Charitable Distribution from your IRA, and perhaps get some tax advantages that you otherwise would not have had. How does it work, and who can potentially use it? 
Let’s Strategize With Your IRA- Season 4: Episode 6
Managing Your Financial Future

Let’s Strategize With Your IRA- Season 4: Episode 6

December 15, 2020

IRA’s, whether Traditional or Roth, have unique characteristics. Depending on the type of IRA you have, you may be able to manage your taxes or your income from your IRA by managing the taxes on the withdrawals. Roth IRA distributions are tax-free when the rules for taking withdrawals are all met. So sometimes the tricky part is getting the money into the Roth IRA in the first place. Do you make a regular contribution to your Roth? Should you convert your Traditional to a Roth?  When is it a good idea to do either of these, and when is it not?
Dealing With Taxes on Your Social Security Benefits- Season 4: Episode 5
Managing Your Financial Future

Dealing With Taxes on Your Social Security Benefits- Season 4: Episode 5

December 8, 2020

Taxes are a fact of life for most people.  Even your Social Security benefits – for which you had the pleasure of paying taxes to receive – are subject to taxation under certain circumstances. And this can hit you unexpectedly, putting a sizable dent in your benefit income. What to do about this?  First thing is to recognize when and how your Social Security benefits may become taxable to you.  This is where planning can play a key role, especially before you begin to take required minimum distributions at age 72.
Don’t Make the Mistake of “Chasing Yield”- Season 4: Episode 4
Managing Your Financial Future

Don’t Make the Mistake of “Chasing Yield”- Season 4: Episode 4

December 1, 2020

If there’s one “rule of thumb” that every investor should know, it’s that there is a distinct correlation between risk and reward.  The greater the potential reward for an investment, the higher the risk.   Conversely, lower-risk investments tend to produce lower rates of return. This is something that many investors often forget — especially those who are new to the game.  If you pay attention only to a particular investment’s prior performance without looking at the potential risks involved, you may be in for a really unpleasant surprise down the road. Purchasing investments based solely on their rate of return is what’s known as “chasing yield,” and it’s a mistake that can and should be avoided. 
Are Cash Value Life Policies Really as Good (or as Bad) as You’ve Heard?- Season 4: Episode 3
Managing Your Financial Future

Are Cash Value Life Policies Really as Good (or as Bad) as You’ve Heard?- Season 4: Episode 3

November 17, 2020

Life insurance appears to be a fairly easy topic to understand.  You pay your premiums to the insurance company, and if you die within the specified period of time, your beneficiaries receive the death benefit proceeds of the policy.  If you outlive the policy, no death benefit is paid. But that’s just one element of life insurance.  Another type is the often-misunderstood (and sometimes mis-sold) cash value policy — and here’s where things can get complicated.  And here’s where “Professor” Rick Plum, CFP® may be able to help you understand. Cash value life insurance isn’t for everyone, but for some individuals, it may indeed be exactly what they need to reach their goals.  Who should consider cash-value life insurance, and who should stay away?  And how do these policies work?