Managing Your Financial Future

What Are Your Options with a Roth IRA?- Season 4: Episode 2
Managing Your Financial Future

What Are Your Options with a Roth IRA?- Season 4: Episode 2

November 10, 2020

Back in 1998, Congress created one of its most popular tax-incentives in recent history – the Roth IRA. Since then, we’ve seen various changes to Roths, including who may contribute, how much they may contribute, and who is allowed to convert pre-tax IRA money into the Roth world. Because of its popularity, though, the Roth is sometimes improperly used by both investors and by those who give financial advice. While the tax-free withdrawals of a Roth are often attractive, those same tax benefits may also cause someone to put their money into a Roth when there are potentially better options for them. So how does a Roth IRA work? Who should consider contributing, or maybe converting?
Is There a Solution to the Pension Dilemma?- Season 4: Episode 1
Managing Your Financial Future

Is There a Solution to the Pension Dilemma?- Season 4: Episode 1

November 3, 2020

If you happen to be one of those people with a traditional pension plan, there’s one important piece of information you should know about: unless your spouse elects to sign a waiver that allows otherwise, your pension benefits will be paid out to the both of you in the form of what’s called a “qualified joint and survivor annuity.” In other words, you’ll receive a reduced amount during your lifetime, so that your spouse will continue to get at least 50% of that amount if you happen to die first. But if you both elect instead to receive the higher single-life annuity payment, the payments (while significantly higher) would stop at your death and not continue for the surviving spouse.  This can be something of a dilemma for people who would want the higher payments, but are reluctant to lose that income if the pension owner doesn’t outlive the spouse. There is a potential solution to this problem, though.  Could you perhaps have both the larger payments AND provide an income for your surviving spouse?
Never Say Never, and Always Avoid Always!- Season 3: Episode 8
Managing Your Financial Future

Never Say Never, and Always Avoid Always!- Season 3: Episode 8

August 18, 2020

If you’ve ever read an article about finance or listened to a financial podcast (other than this one), you probably heard someone say that you should “never” buy a certain financial product. Or, conversely, you’ve heard that “everyone should buy XYZ financial product, no matter who they are!” These are both plainly wrong, on so many levels. The real truth is that everyone’s needs and goals are different; where one financial tool may work very well for a certain individual, it’s likely that exact same product is completely wrong for another person.  That’s why it’s important to be financially knowledgeable about what someone is recommending you should have – or shouldn’t have – in your portfolio.
Paying Off your Mortgage: Good idea, or Bad? – Season 3: Episode 7
Managing Your Financial Future

Paying Off your Mortgage: Good idea, or Bad? – Season 3: Episode 7

August 11, 2020

A few weeks back, we offered a strategy for people who want to pay off their mortgage in, say, 15 years, but don’t like the idea of making the higher principal payments that are required of a 15-year loan.  Following up on that topic, we received an email asking about whether paying off the mortgage is really nothing more than a cash-flow issue.  Is it?  Or are there other things to consider?
What’s My Stock Allocation in Retirement? – Season 3: Episode 6
Managing Your Financial Future

What’s My Stock Allocation in Retirement? – Season 3: Episode 6

August 5, 2020

Retirement income calculators are everywhere online.  What’s more, they’re fairly simple in nature: plug in some current income and savings, expected rate of return, an inflation factor, and eventually it’ll spit back a number that you should aim to have in your portfolio that’s supposed to give you the income you need.  The trouble is – they’re often way off the mark. They may tell you that if you need, say, $100,000 of income to retire at age 65, then that number will rise to perhaps $230,000 or more by the time you’re age 95 because of the inflation factor. But from our experience, this just isn’t practical in the real world.  As retirement goes on, spending (and income needs) tend to go down over those years – not up. 
You’ll Spend Less in Retirement Than You Think – Season 3: Episode 5
Managing Your Financial Future

You’ll Spend Less in Retirement Than You Think – Season 3: Episode 5

July 28, 2020

Retirement income calculators are everywhere online.  What’s more, they’re fairly simple in nature: plug in some current income and savings, expected rate of return, an inflation factor, and eventually it’ll spit back a number that you should aim to have in your portfolio that’s supposed to give you the income you need.  The trouble is – they’re often way off the mark. They may tell you that if you need, say, $100,000 of income to retire at age 65, then that number will rise to perhaps $230,000 or more by the time you’re age 95 because of the inflation factor. But from our experience, this just isn’t practical in the real world.  As retirement goes on, spending (and income needs) tend to go down over those years – not up. 
Let’s Manage Your Taxes — While There’s Time- Season 3: Episode 1
Managing Your Financial Future

Let’s Manage Your Taxes — While There’s Time- Season 3: Episode 1

June 30, 2020

We’ll say it right up front: taxes are NOT fun.  Nobody likes to think about them, much less actually do them every year.  For most, it’s a matter of either turning them over to a professional and letting them deal with it, or trudging through it alone and hope you don’t miss anything important. But while they’re not fun to think about, they’re also a necessary evil. This is why it’s really important to give your tax situation some thought during the actual tax year, when you may be able to do something about them, rather than waiting until it’s too late. The middle of the year may be the perfect time to do some tax evaluation, because doing so could potentially save you some real money when it comes time to file next year. 
New (Temporary) RMD Rules Offer Potential Planning Opportunities – Season 2: Episode 12
Managing Your Financial Future

New (Temporary) RMD Rules Offer Potential Planning Opportunities – Season 2: Episode 12

June 2, 2020

The COVID-19 outbreak has brought with it several changes for people who are facing deadlines, including filing federal and state income taxes. Another big one has to do with Required Minimum Distributions (RMDs) for 2020 – and maybe for 2019 as well. When the SECURE Act passed at the end of 2019, it changed the age at which IRA owners must begin taking RMDs, from 70 ½ to age 72. Several weeks later, in response to the pandemic, Congress made changes again to the RMD rules through the CARES Act, allowing for more flexibility and the potential to skip the distribution for 2020.
A Mortgage Payment Strategy You’ve Never Heard Before- Season 2: Episode 11
Managing Your Financial Future

A Mortgage Payment Strategy You’ve Never Heard Before- Season 2: Episode 11

May 26, 2020

When taking out a mortgage, people often wonder if it’s better to have a 15-year loan instead of a 30-year loan.  They think of all the interest payments they’ll save by shortening the loan period, and the fact that the home would be owned free and clear in half the time. Of course, they have to be able to afford the higher payments of a 15-year loan, which for some people is a deal-breaker.  But there may be a way for you to take the 30-year loan option and still be free of mortgage payments in 15 years.  On today’s podcast, we talk about a strategy to do exactly that.