Managing Your Financial Future

How to Set Up Bucket One- Season 7: Episode 5
Managing Your Financial Future

How to Set Up Bucket One- Season 7: Episode 5

October 12, 2021

The basic idea of a Buckets strategy involves taking portfolio distributions from a non-volatile source: what we call Bucket #1.  You never want to be in a position where you have to sell volatile assets (like stocks) to fund your short-term monthly expenses. But does this mean that you need to have several years’ worth of cash sitting around to make sure it’s there when you need it?  The short answer is no – you just need to “bucketize” the bucket. But how do you do that?  It’s not as simple as it seems.
How To Manage Your Tax Bill, Now and in Retirement – Season 7: Episode 4
Managing Your Financial Future

How To Manage Your Tax Bill, Now and in Retirement – Season 7: Episode 4

October 5, 2021

It’s been said that taxes are perhaps the biggest drag on your portfolio’s returns. So it would stand to reason that managing your taxes, with the goal of keeping them as low as possible over the course of many years, should be one of your biggest financial planning priorities. But “managing” your taxes is different from “minimizing” them. There may indeed be times where paying a little more in taxes now could save you much more down the road: maybe for the rest of your life.
How Should You Invest in Your 401k?- Season 7: Episode 2
Managing Your Financial Future

How Should You Invest in Your 401k?- Season 7: Episode 2

September 21, 2021

If you’ve ever looked at your investment options inside your 401k plan (or other retirement plan at work), you might have felt overwhelmed by the number of choices. Even if your choices aren’t necessarily numerous, how do you know whether you should go all in with stocks, or maybe keep it safer with a blend of volatile and non-volatile assets?  This decision is big, and going the wrong way can lead to significantly different outcomes in the future. 
Roth or Traditional IRA – How Do You Decide?- Season 7: Episode 1
Managing Your Financial Future

Roth or Traditional IRA – How Do You Decide?- Season 7: Episode 1

September 14, 2021

When it comes to saving for retirement, the decision to put your money into either a Roth or a Traditional IRA may be more complicated than you think.  Part of the decision involves your tax bracket today vs. your tax bracket at retirement, but there’s more to it than that. When is investing in a Roth IRA a better idea than a traditional?  On the other hand, who should consider a Traditional IRA over a Roth?  And what are the consequences, good and bad, of doing one or the other? 
How Much Can I Withdraw From My Portfolio?- Season 6: Episode 12
Managing Your Financial Future

How Much Can I Withdraw From My Portfolio?- Season 6: Episode 12

August 23, 2021

So you’ve made it to retirement, and, presumably, you’ve got a certain amount of money saved up that you’ll need to tap into from time to time.  But you’re concerned: you don’t want to take too much, because you don’t now how long you’ll live, and thus have no idea how much is “too much” to take out. This is a common dilemma for retirees.  You need a certain amount to meet your basic expenses, but the money may have to last at least a few decades.  Is there a “safe” amount you can withdraw each month so that you won’t outlive your savings?
How Your Pension May Reduce Your Social Security Benefits- Season 6: Episode 11
Managing Your Financial Future

How Your Pension May Reduce Your Social Security Benefits- Season 6: Episode 11

August 17, 2021

So let’s say your idea is to take your Social Security early, maybe age 62 or 63, and then wait until age 65 to begin your pension benefits.  You know what both your Social Security and pension payments will be, and so you set up your budget and your lifestyle accordingly. But then you find out, maybe too late, that your Social Security payments have been reduced — or even eliminated — once those pension benefits kick in.  All of your careful planning has been cast overboard, and now you have to wing it.  That scenario can happen to those who aren’t aware of the rules regarding Social Security benefits and certain pension payments.  Find out more about what to expect, and how to deal with it
Can Kids and Ex-Spouses Receive Social Security Benefits?- Season 6: Episode 10
Managing Your Financial Future

Can Kids and Ex-Spouses Receive Social Security Benefits?- Season 6: Episode 10

August 10, 2021

The topic of Social Security always brings with it many questions, which isn’t surprising, given the complex nature of the program. Beyond the most popular questions, though, are a few that may impact you, even if you didn’t think to ask about them. Two of those topics are these:  Can I work and still collect a Social Security benefit? Can my  kids, or my ex-spouse, collect a benefit based on my work record? The answer to each of these questions is yes — if.  What are the “ifs” you need to know about? 
Owning Stocks in Retirement: Why We Do Buckets- Season 6: Episode 9
Managing Your Financial Future

Owning Stocks in Retirement: Why We Do Buckets- Season 6: Episode 9

August 3, 2021

Have you ever heard the idea that stocks are too volatile for retired people to own?  There’s even an old rule-of-thumb formula that tells you to decrease your stock holdings by 1 percent every year and replace them with bonds.  These generic “guidelines,” though, are hardly prudent advice for most people, because everyone’s situation requires a different approach. It may actually be more beneficial for some people to hold steady — or even increase — their exposure to stocks as they get older.  What often matters more is having a suitable withdrawal strategy: one that aims to take volatility into account, potentially avoiding selling stocks when they’re declining in value.
Should You Pay Cash For Your Home, or Get a Mortgage?- Season 6: Episode 8
Managing Your Financial Future

Should You Pay Cash For Your Home, or Get a Mortgage?- Season 6: Episode 8

July 27, 2021

Real estate prices have been ticking up steadily over the past year or two, especially for mid-range single family homes.  And while many people find that the only way they can afford a new home is to take out a mortgage, there are also those who have either enough current gains or enough cash on hand to consider buying a home outright. Having the cash to pay for a home, versus investing that amount and taking out a mortgage, is something of a dilemma for some people.  There are those who like the security of owning a home outright, but there are also those who believe they can earn more than the cost of the mortgage through savvy investing. Which way may be potentially right for you? 
At What Age Should You Start Taking Your Social Security Benefits?- Season 6: Episode 6
Managing Your Financial Future

At What Age Should You Start Taking Your Social Security Benefits?- Season 6: Episode 6

July 13, 2021

It’s the most common question we get when we’re discussing Social Security: what’s the best age to start taking your benefits? Naturally, everyone’s situation is different, but there are general guidelines to determine if it’s better to take them early, or to wait until later for a larger monthly benefit. But it’s not as simple as just saying, “if you think you’ll live a long time, take them later; if not, take them sooner.” Because in some instances, doing the exact opposite may work out far better for you. Podcast host Johnny Dean and “Professor” Rick Plum, CFP® discuss this all-important topic on today’s episode of Managing Your Financial Future.