Podcasts

Managing Your Financial Future

Why Should You Hire a Financial Advisor- Episode 133

April 25, 2023

The question is pretty straightforward: Do I need to use the services of a financial advisor, or can I simply manage my investments, my retirement income, and my taxes by myself? The answer, though, is not readily apparent.  A financial advisor can help a person with a little, with some, or with all of their financial needs, depending on what each individual requires.  As we so often say, everyone’s situation is different.

Managing Your Financial Future

Why Your Asset Location Is So Important- Episode 132

April 18, 2023

You may have heard of something the investing world refers to as Asset Allocation, which has to do with deciding between asset categories like stocks, bonds, CDs, alternative investments, etc. It’s an important part of building your portfolio. But there’s another, equally important part that doesn’t get talked about nearly enough: Asset Location. This has to do with how assets located in different types of accounts (Roth, IRA, or personal) are ultimately taxed to you. When done properly, an asset location strategy may dramatically decrease the amount you’ll ultimately pay in taxes on those assets.

Managing Your Financial Future

Is Your Nest Egg Doomed by Your Withdrawal Method?- Episode 131

April 11, 2023

Building a nest egg is relatively easy if you’re both consistent and patient. Regular contributions over time can lead to compounded growth, which may give you the amount of money you need to live on. But while building a savings can be easy, keeping it from running out is a whole other challenge. How you take withdrawals from your savings once you’re retired is crucial to the survival of your portfolio. If you’ve put yourself in a “reverse dollar cost averaging” (RDCA) situation, you could be asking for trouble. What is RDCA, and how do you avoid it? 

Managing Your Financial Future

Some Good News About 529 Plans!- Episode 130

March 21, 2023

You may have heard of a 529 Plan, which allows you to put money away for someone’s college education, have it grow tax-deferred over the years, and then be taken out tax-free when the funds are used for qualified higher education expenses.  The problem has always been, though, that if the money wasn’t used for those higher education expenses, it would be both taxed and penalized upon withdrawal.  That rule has now changed – in some circumstances, you can use some or all of that money to fund a Roth IRA. This is good news for many people who were looking at the prospect of extra taxes on a 529 Plan that had leftover money in it.

Managing Your Financial Future

Will You Be in a Lower Tax Bracket in Retirement?- Episode 129

March 14, 2023

Does retirement increase or decrease the amount of taxes you have to pay? You might think that once you begin retirement, your tax bill will tend to go up at first, since people normally have much (if not most) of their retirement funds in a company retirement plan (401k, 403b, etc.) – all of which are taxable upon withdrawal at ordinary income rates. But is this really the case?  Should retirees simply resign themselves to giving up a big chunk of their retirement savings to Uncle Sam?

Managing Your Financial Future

Roth IRA vs. 401k: Which Is Better?- Episode 128

March 7, 2023

So you’ve got some money to save for retirement… Where should you put it? Would it be better for you to take a tax deduction right now by contributing to your 401k plan, or would paying the taxes now and socking it away in the Roth, with the potential to take it out tax free later on, be a wiser course of action?  This is a common dilemma for many people. What may be the better option for you?

Managing Your Financial Future

What’s a “Safe” Amount of Money to Take from Your Portfolio?- Episode 127

February 28, 2023

You’ve finally 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 the problem is that you don’t want to take too much, because you don’t know 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?

Managing Your Financial Future

Why Guaranteed Income in Retirement Is So Important- Episode 126

February 22, 2023

A steady stream of cash flow is one of the most valuable things you can have, both before and after you retire.  If that income is guaranteed by some entity — the federal government, the PBGC, or the claims-paying ability of an insurance company — then so much the better. Pensions and Social Security are two forms of guaranteed income that people receive usually after they’ve retired. They form the basis of your financial plan and help determine how much extra income (if any) your portfolio will need to provide for you. In other words, the more guaranteed income you have, the less you’ll have to rely on your savings. Why is this so important?

Managing Your Financial Future

Can an Ex-Spouse Collect Social Security Benefits on Your Work Record?- Episode 125

February 14, 2023

You may have heard that Social Security has something called “Spousal Benefits,” where your current spouse can receive a benefit based on your work record, even if they never held a job in which they paid FICA taxes.  But did you know this rule may also apply to an ex-spouse? We’ve had questions about this in the past, with many people wondering how they can PREVENT an ex from taking a Social Security benefit from them.  But the truth is, while there’s nothing you can do about it, it also won’t have any effect at all on your own benefits. We’ll also answer two other common questions: can I work and still collect a Social Security benefit?  And: are my kids ever eligible to receive a benefit? 

Managing Your Financial Future

Why Understanding Tax Brackets Is Crucial- Episode 124

February 7, 2023

The US tax system is by design a complicated beast, and trying to understand it all is a futile challenge. And yet, it’s extremely important that people understand how certain elements of it work. As we so often say, tax knowledge is tax power. Most taxpayers assume that the amount of tax they pay is determined by which tax bracket they’re currently in. This is both a true and untrue statement. If you’re in the 24 percent bracket, does that mean every dollar you earn is taxed at that rate?  Going forward, yes; looking backward, no.

Managing Your Financial Future

It’s Tax Time: Here’s What You Need to Do Now- Episode 123

January 31, 2023

It’s tax time! Although tax returns aren’t officially due until mid-April, the first quarter of every year is when the forms arrive in the mail, as we start to compile information to begin the dreaded process of filing. With the myriad forms that so many people have to deal with, it’s good to know which… View Article

Managing Your Financial Future

RMD Age Is Now Higher – But Should You Really Delay Your IRA Distributions?- Episode 122

January 24, 2023

As of 2023, the age when you must begin taking Required Minimum Distributions from your IRAs has been increased. This means you may have as many as three extra years to allow your savings to grow tax deferred. This may sound like a great idea: why pay taxes now when you can delay the inevitable… View Article