A Fool’s Game
53 min

On this week's Money Matters, Scott and Pat discuss the challenges of making financial decisions with aging parents and speak with several callers concerned about the presidential election impacting their investments.

 

Scott and Pat advise a California man with $1.5 million saved about a potential Roth conversion. A caller asks if he should convert some of the money in his 401(k) to cash before the presidential election. A retired caller asks if his wife should claim her Social Security benefit at age 62. A caller invested in target-date funds asks if a financial advisor is worth their fees. Finally, an 83-year-old tap dancer asks if she should buy an annuity for $300,000.

 

Click here to register for our 7 Personal Decision Points virtual retirement planning workshop.

 

Ask a question by clicking here, or email Scott and Pat at questions@moneymatters.com.

 

Download and rate our podcast here.

Retirement Answer Man
Retirement Answer Man
Roger Whitney, CFP®, CIMA®, RMA, CPWA®, AIF®
What Are the Chances We Have a Market Crash, and How Do I Protect Myself?
This is a time of year when many people give thanks for what they have. On this episode of Retirement Answer Man, I explore the definition of thankfulness and gratitude with our Rock Retirement Club retirement coach, BW. He even brings us 5 tips that can help us to cultivate gratitude on a regular basis. Tanya Nichols joins me again to help answer listener questions. You’ll learn what you can do if you are worried about a market crash, what to do if you think you are too old for long-term care insurance, and we’ll discuss Roth conversions from a 403B. Press play now to join me to hear the answers to listener questions and more. What are you thankful for? The definitions of thankfulness and gratitude are very similar. Thankfulness is the consciousness of benefit received from others. Gratitude is a thankful appreciation for what an individual receives both tangible and intangible. One way to combat worry is to create a habit of thankfulness. I have done this personally and it has changed my life. Practicing gratitude contributes to greater happiness and it allows us to focus on what we have rather than what we lack. Listen in to hear what I am grateful for this year. 5 tips to help cultivate gratitude on a regular basis Cultivating a gratitude practice can seem like a good idea but it often falls by the wayside after a few days or weeks. The beauty of practicing gratitude is that it shifts your mindset. You can use these 5 tips to help you become more thankful by creating your own practice of gratitude each day. * Write and send a thank you note to someone who has had an impact on your life each month. * Get in the habit of saying thank you to at least one person each day. * Keep a gratitude journal. You get bonus points if you try and come up with different things to be thankful for each day. * Pray. If you are religious, praying can help you cultivate gratitude. * Meditate. Instead of focusing on your inner self, try focusing on gratitude in the moment. Does sequence of return risk keep you up at night? The world around us seems so unstable right now. Many people worry that we could be at the start of the next big crash. What if we are at the beginning of several years of zero returns? Sequence of return risk is one of the biggest worries of those on the cusp of retirement. Although people worry about sequence of return risk, if you look back at history and study bear markets, youĺl see that even within those years there were good years and bad years. It’s also good to remember that your portfolio won’t directly reflect the S&P 500, we simply use it as a planning tool. How to balance market risk against inflation risk Why do we take market risk when we are worried about sequence of returns? Inflation! Inflation risk is just as big, but it creeps up slowly over time. You have to balance the risk of inflation with market risk. You can take market risk. You just have to know how much you are comfortable with. The first thing you need to do is understand the minimum effective dose of investment risk you need in order to create the life you want. Next, you’ll want to time segment your money by building your cash flow model early in retirement. Plan for statistically probable outcomes and then test for outliers. Listen in to hear the details of how you can protect yourself from both inflation risk and market risk. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN WHAT DOES THAT MEAN? * [1:30] What is thankful? PRACTICAL PLANNING SEGMENT * [5:02] Is Chris too old for long-term care insurance? * [8:11] A 403B and Roth conversion question * [12:12] A new learning experience as a couple * [14:06] What are the chances that the market crashes? COACHES CORNER WITH BW * [22:09] Practice gratitude to improve your happiness * [26:17] 5 tips to help cultivate gratitude on a regular basis TODAY’S SMART SPRINT SEGMENT * [30:16] Give yourself and everyone around you some grace this Thanksgiving Resources Mentioned In This Episode Align Financial Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement by Roger Whitney Work with Roger Roger’s Retirement Learning Center
34 min
The Power Of Zero Show
The Power Of Zero Show
David McKnight
My Post-Mortem on the Presidential Election
At the time of recording this podcast the results haven’t been certified but it looks like Joe Biden will be the next US president. There are a couple of different outcomes that you need to pay attention to. The first involves him not controlling the Senate. In order to win the Senate Democrats would have to win two seats in a runoff election on Jan 5 but pundits are saying that result is unlikely. If Republicans control the Senate there will be a lot of obstruction for Joe Biden’s agenda. Everything that Joe Biden campaigned on is going to be effectively neutralized and he will probably have to postpone any changes until the midterms two years from now. This means you can expect two years of relative status quo, but if the Democrats do win those Senate seats in the midterm elections or want to press his program, he will likely try to make the most of the opportunity and push through his agenda more aggressively. If you make more than $400,000 per year, you are essentially a marked man or woman. For example, if you live in California you will have to pay a 13.3% State tax, a 39.6% Federal tax, an additional 14% additional Social Security tax for every dollar over the $400,000, and finally a 3.8% for an Obamacare surcharge. This scenario results in 1970s style tax rates where you would be paying 70.7% in taxes. You will also have fewer ways to mitigate that tax and be unable to deduct 401(k) contributions on the margin as well. Joe Biden has proposed considerable changes to the way 401(k) deductions are done so we are going to start to see deductions phasing out for people in the higher income levels. Joe Biden wants to be able to tax you at high marginal tax rates and doesn’t want to give you a lot of recourse in terms of mitigating that tax. If you have significant income, your long term capital gains could become short term gains. If Joe Biden wins the Senate he will have two years to put this into law but in the process will likely upset a lot of people and potentially lose the Senate after the midterms, however this means that for the first two years you better duck and cover if you make $400,000 a year or more. If you make less than $400,000 a year, a Joe Biden presidency is relatively good news for you. Joe Biden plans on letting the tax cuts expire for the people that make $400,000 or more but for those who make less, he plans on making the tax cuts permanent. This could make contribution to your 401(k) a bit more complicated and for those above the $400,000 threshold they will probably want to consider some other options. In terms of the Power of Zero paradigm, it is largely good news if you believe that Joe Biden will make the tax cuts permanent for those who make less than $400,000 per year. We can’t afford to keep tax rates this low and have actually gone beyond the point of no return. We would have to tax 103% for every dollar made over $400,000 just to prevent the deficit from growing. This doesn’t include actually paying off the debt. Unless you believe in Modern Monetary Theory there doesn’t seem to be any other way to solve our problems other than ultimately raising taxes on the middle class. Joe Biden is kicking the can down the road and it’s going to compound our problems over time, but if you’re looking to take advantage of this opportunity before we come face to face with reality, this is a great opportunity to shift money to the tax-free bucket. If Joe Biden wins over the Senate there’s going to be a lot of shock and awe in the first two years of his administration as they push through a number of pieces of legislation that will disproportionately impact people who make more than $400,000 a year. If he doesn’t win the Senate he will bide his time until the midterms to gain the seats he needs to implement this agenda.
14 min
Retirement Starts Today Radio
Retirement Starts Today Radio
Benjamin Brandt CFP®, RICP®
Retirement Rewind: The Hidden Challenges of Retirement with Fritz Gilbert, Ep # 168
Welcome to Retirement Rewind! Each year I take the holiday season off from podcasting to spend more time with my family. The good news is that I prepare my favorite episodes from the past for you to enjoy. This episode is an interview with Fritz Gilbert over at the Retirement Manifesto blog. In this interview, Fritz and I discuss his new book, Keys to a Successful Retirement as well as his firsthand experience now that he has recently retired. If you’ve already listened to this episode before you might be surprised to hear the tidbits that you forgot about and if you missed it the first time around, you won’t want to miss the interview this time. Outline of This Episode * [2:37] Why your first cup of coffee in retirement is the best cup of your life * [5:22] Retirement advice for a 38-year-old * [9:53] If you only had $500 to spend on retirement education what would you do? * [13:28] Are we in the golden era of Roth Conversions? * [16:27] A question about chapter 4 of Fritz’s book * [20:21] How to create the ideal retirement You have to experience retirement to really understand it Fritz spent years leading up to retirement trying to understand what retirement would be like. However, after finally retiring, he realized that it isn’t something that you can explain to others. You have to actually experience it yourself to understand. I like his analogy of having a locked door in front of you your whole life and on the day of your retirement, you are finally given the key. What do you think? Do you think the feeling of retirement can be conveyed to others? More than half of all people retire before they think they will Save, save, save! Even if you are one of those people that think they will continue working forever, it is still important to save for retirement. 60% of all people are forced into retirement before they have planned. What if you were forced into retirement tomorrow? Would you be ready? What are you doing now to help yourself prepare for the inevitable time when you won’t be able to work anymore? What is the biggest bang for your buck for learning about retirement? I asked Fritz how he would spend his money if he only had $500 to spend on learning about retirement. It’s not a lot of money to spend on such an important topic, but fortunately, there is so much free content available; you can learn just about anything without too much money. YouTube, podcasts, and blogs provide a lot of information for free. Fritz would spend his $500 in one of two ways. He loves books and feels like they provide a wealth of information. He also values the money he spent on hiring a CFP for a once over on his accounts. As a DIY investor, the peace of mind of having a professional give him the green light was invaluable. If you only had $500 to spend learning about retirement how would you spend it? Create your ideal retirement by embracing your passion Retirement is a fantastic time to devote yourself to the passions that you’ve had to put on the backburner during your working years. Do you have a passion? How will you pursue it in retirement? If you don’t have a passion yet a curious mind can take you a long way to discovering one. Fritz found a passion that he never knew he had. Find out what it is by listening to this interview. Resources & People Mentioned * Garrett Planning Network * XY Planning Network Connect with Fritz Gilbert * Retirement Manifesto * Keys to a Successful Retirement * Fritz on Twitter @RetireManifesto Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap Subscribe to Retirement Starts Today on Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
28 min
Money! with Stacy Johnson
Money! with Stacy Johnson
MoneyTalksNews.com
How One Hour Today Could Be Worth $1,000 Next Year (Year-End Planning)
Can you really invest an hour today and find yourself $1,000 richer next year? Absolutely. Take taxes, for instance. Much of what you can do to lower your tax bill has to be done before December 31. There are exceptions: For example, you can fund an IRA up until the day you file your taxes. But when it comes to things like batching or prepaying deductible expenses and using up your flexible spending account, once the year is over, so is your opportunity to lower your tax bill. In this week's "Money" podcast ( https://www.moneytalksnews.com/podcasts/ ) , we're going to talk about a few things you should do before the year is out that can make next year less taxing, as well as other end-of-year planning tips and organizational tricks. Links: * 5 Year-End Moves to Make Now and Save Big at Tax Time ( https://www.moneytalksnews.com/30-minutes-now-can-save-you-1000-tax-time/ ) * 10 Ways Your Taxes Will Change in 2021 ( https://www.moneytalksnews.com/how-your-taxes-will-change-in-2021/ ) * 10 Smart Year-End Money Moves You Can Make During Commercial Breaks ( https://www.moneytalksnews.com/make-these-10-money-moves-before-the-year-ends/?all= ) Hosts: * MoneyTalksNews ( https://www.moneytalksnews.com/ ) * MirandaMarquit.com ( https://mirandamarquit.com/ ) Ask us a question ( https://www.moneytalksnews.com/contact/ ) ------------------------------------------------------------- Hey Money! listeners if you have a question, topic or life lesson you want to share with everyone, leave us a voice message by calling 1-833-669-8557 then press 0 to leave a message. We'd love to hear from you. Support this podcast at — https://redcircle.com/money/donations Advertising Inquiries: https://redcircle.com/brands
26 min
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