YMYW Spitball Analysis 3: Tax Diversification and Asset Allocation - 296
41 min

On round 3 of the YMYW Retirement Plan Spitball Analysis, Joe and Big Al focus on your tax diversification and asset allocation questions: should more money be going into Christy’s pre-tax Roth accounts? Has Roger set up a good portfolio for his elderly relative? Plus, the Rule of 100 or 120 for investing in stocks and bonds, as touted by Jack Bogle and the Bogleheads. Also, should Tom take a Coronavirus-Related Distribution? And finally, when to take Social Security, and that Social Security file and suspend rule that affects people born in 1954. Access the transcript and financial resources, send in money questions: https://bit.ly/YMYW-296

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
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
Retirement Starts Today Radio
Retirement Starts Today Radio
Benjamin Brandt CFP®, RICP®
BIG Legislation Changes, tiny Portfolio Changes, Ep # 167
Are you worried about what the election means for your retirement portfolio? Many people are tempted to make big changes to their retirement savings to reflect their election concerns. On this episode of Retirement Starts Today Radio, you’ll learn what you can do to your portfolio if you are nervous about the transition. You’ll also hear what the new RMD tables mean and how the Biden proposals could change the entire retirement landscape. Outline of This Episode * [2:12] What do the new RMD tables mean for you? * [4:40] How much is the next Medicare Part B premium increase? * [7:40] Should you make big changes to your retirement plan because of the election? * [11:50] Which Biden proposals could affect you and your retirement? What do the new RMD tables mean for you? Since people are living longer than ever before, the IRS has finally decided to acknowledge these longer lifespans by updating their Required Minimum Distribution tables. According to the longer retirement timeline, retirees can take out smaller mandatory distributions and spread them out over a longer period of time. What does this mean for you? You can expect to see smaller tax bills and larger IRA balances compounding over time. Listen in to hear the details and learn why this new tax table may seem familiar. Should you make big changes to your retirement plan because of the election? Thankfully, we’re not here to discuss politics. You can go just about anywhere else on the internet for that. However, I do want to touch on the changes that may arise due to the election. An election year often brings about strong feelings one way or the other and many people feel that they need to make changes to their portfolio based on what they hear on the news. Just because there is an election doesn’t mean that you should make big changes to your retirement portfolio. It’s a good idea to keep in mind that there may be between 4 and 8 presidents in office over the course of your retirement. Major global policy shifts don’t equal major portfolio shifts Even if there are major shifts in global policy you only want to make tiny shifts in your portfolio. If you listen in I will give you specific examples of what you can do to prepare for the future transition without changing the essence of your portfolio. I do want to clarify that you should never take advice from me or anyone that you find on the internet. Regardless of who is running the country, I want you to have an amazing retirement. Which Biden proposals could affect you and your retirement? One of Biden’s proposals could completely change the retirement landscape. How would your retirement plans change if the Medicare age was lowered from age 65 to 60? At this point, it is just a proposal. Stay tuned in to Retirement Starts Today Radio over the coming months to hear the latest on this Biden proposal as well as his plans for Social Security. Resources & People Mentioned * Plan Adviser RMD tables * Think Advisor Medicare Part B article * NPR article about Biden’s Medicare proposal * CNBC article about Social Security 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, orSpotify
16 min
Student Loan Planner
Student Loan Planner
Travis Hornsby
Declining Reimbursement Rates, plus What Trump's Finances Show About Student Loans
If you’re facing a potential salary decrease due to decreasing insurance reimbursement rates, you can start to worry about paying your student loans. In this episode, I talk about steps to take to mitigate the impact and what you can do if you’re in this situation. I also cover lessons you can learn about managing your student loans from Trump’s finances. Find out how to lower your tax liability and save money on your student loans using lessons from Trump’s tax records. In today’s episode, you'll find out: * How Medicare reimbursement decreases can impact salaries in healthcare * The ripple effect of reimbursement cuts on student loan payments * How to deal with salary cuts when you have student loan debt * Why I think the tax bomb won’t be a problem because it won’t be collectible * How healthcare business owners might be impacted by reimbursement decreases * Lessons from Trump’s finances as reported by the New York Times * How to reduce your tax liability when the tax bomb comes due * Why real estate is a great strategy to lower your tax liability * How to get out of paying taxes on the forgiven balance of your student loans * The benefits of tax-loss harvesting * How to use retirement contributions to lower your tax bill * Strategies business-owners can use to decrease their tax liability Full show notes at: http://studentloanplanner.com/104 Like the show? There are several ways you can help! * Subscribe on Apple Podcasts, Spotify or Google Podcasts * Leave an honest review on Apple Podcasts * Follow on Facebook, Twitter, or LinkedIn Feeling helpless when it comes to your student loans? * Try our free student loan calculator * Check out our refinancing bonuses we negotiated * Book your custom student loan plan
44 min
More episodes
Search
Clear search
Close search
Google apps
Main menu