194: The Backdoor Roth IRA Made Easy
Play • 46 min

Everyone should be contributing to a Roth IRA every year. This is retirement account space that you can't get back. Many of us need to contribute to the Roth IRA through the backdoor, which can be confusing. In this episode we discuss what a backdoor Roth IRA is, steps for successfully contributing to a backdoor Roth IRA, and how to fix errors that occur in each step. See full show notes here whitecoatinvestor.com/the-backdoor-roth-ira-made-easy-podcast-194

For those who have mastered the backdoor Roth IRA we also answer listener questions about adding new asset classes to your investment plan, tax implications for inherited money, helping parents with financial advice, behavioral and math components to personal finance, legal issues concerning being recorded at work, and recharacterizing contributions you have made to your retirement accounts.

If you have not done your Roth IRA contribution yet this year, let this episode be the motivation to get it done.

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Retirement Answer Man
Retirement Answer Man
Roger Whitney, CFP®, CIMA®, RMA, CPWA®, AIF®
Let’s Get Physical - Creating Your Health Action Plan
Over the past 3 episodes, we have been talking about different ways that you can improve your health in retirement. Today you’ll take action. Choose the habits you want to build and learn how to actually build these habits and set yourself up for success. Learning about health and nutrition is one thing, but taking action is something else entirely. Press play so you don’t miss out on these tips to learn how to create and stick with healthy habits. Do you need to redefine your fitness identity? When we are young it can be easy to take on a fitness identity. I’m a mountain biker. He’s a basketball player. She’s a swimmer. But as we age we can face a fitness identity crisis. Our fitness becomes more about mobility and nutrition. To help yourself create your new fitness identity think about what you want to accomplish. What do you want to improve about yourself? What new version of yourself would you like to see? Think about your motivation. Why do you want to have a healthy body? This is how you can define yourself. Listen in to hear my new motivation for good health. Choose the habits you want to build The power of good (or poor) health comes from habits. Positive and negative habits compound over time so to begin a healthy lifestyle you have to start by building healthy habits. You could start by building a huge meal plan or exercise routine, but that could also set you up for failure. Rather than creating a strict workout routine try tinkering with your movements to explore healthy activities that you really enjoy. How to build a habit and make it stick You may already understand the importance of building healthy habits but some of us don’t know how to make them stick. Many of us try to create a routine but then struggle to maintain the habits we have created. Luckily, starting and keeping up healthy habits doesn’t have to be as complicated as you think. Try using these tips to help you create and maintain your healthy habits. To create healthy habits: * Set yourself up for success. Make the habit simple to do. * Create friction. Take a bad habit and make it hard to do. * Start with a small habit. Plan on starting with 5 or 10 minutes a day. To maintain and build up your new habits: * Over time increase your routine in small ways. * As you build up your routine, split it up into separate times each day. * When you falter restart quickly and don’t beat yourself up about it. You have the opportunity to change your health Retirement gives you the freedom to change your lifestyle. You have the opportunity to structure your day in a more purposeful manner. Think about who you want to be in retirement and get started building the habits you need to become that person. Listen in to the Coaches Corner segment with BW to hear how movement and mindset can shape your retirement. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN PRACTICAL PLANNING SEGMENT * [3:30] Most of us have to redefine our fitness identity as we age * [7:25] How to build a habit * [15:32] Two stories to demonstrate different life views COACHES CORNER WITH BW * [19:45] Movement and mindset can help keep you young * [26:52] Use technology to improve your health TODAY’S SMART SPRINT SEGMENT * [34:36] Start to make a change to improve your health Resources Mentioned In This Episode Streaks app Noom app Peloton app Oura Ring James Clear Habit Guide BOOK - Atomic Habits by James Clear Stride app Leave me a comment! Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement by Roger Whitney Work with Roger Roger’s Retirement Learning Center
37 min
The Power Of Zero Show
The Power Of Zero Show
David McKnight
"From Forever Taxed to Never Taxed": My Interview with Ed Slott (Part 1)
Ed Slott has a new book coming out called The New Retirement Savings Time Bomb. It’s the updated version of the original book written 20 years ago where the time bomb was the tax building up in your IRA account. If you didn’t know how to plan, you could be hit twice and lose up to 80% and 90%. Some of the Estate taxes have gone away since then, but there are other new threats to your retirement savings than ever before. Congress always needs money, and they will always go for the lowest hanging fruit, which is your retirement savings. It’s like a deal with the devil, getting those deductions on the front end with the hope that you will be in a lower tax bracket. This assumption is where the danger lies. The Secure Act has ironically made your retirement savings less secure. The biggest threat is the elimination of the stretch IRA and the estate implications. Every plan needs to be reviewed and revised, maybe scrapped altogether for different thinking entirely. Congress needs money, which means tax rates are going to go up and that people will have less money in retirement. What is driving the need for these huge infusions of cash? Deficits and debts are the issue. The government has been recklessly spending for decades, and now it’s only increased with the effects of Covid-19. When most people think of compound interest, they think of how Albert Einstein is the 8th wonder of the world. It’s great when it’s working for you, but awful when compounding is working against you. Compounding debt is the real issue. The math doesn’t discriminate. The math bears it out that we will never see tax rates as low as they are today. We need a more stable and secure plan for the future. The history of tax rates shows that we could return to where rates were as high as 90% for the top tax brackets. You may only have one more year to take advantage of these historically low tax rates. People have to realize that they are in control of their tax rates. Taking advantage of the current low tax rates is the best tax planning you can do. Always pay taxes when the rates are the lowest. That may mean paying some taxes now, but you have to remember that taxes are a bill that won’t go away. The concern about losing out on compounding interest when converting to a Roth IRA is a myth. If you are truly comparing apples to apples, there is no loss when using the same rates of return and taxes, but if rates go up, then everything changes. When rates go up, everything tax-free becomes more valuable. When you have money in your IRA, it is accruing to the benefit of the IRS. When you convert now, you are claiming your portion of the money, as well as the future interest. Taxes have to be paid for. It’s not if, it’s when. Why not pay them while they are on sale? Even in the worst case scenario, by converting now you lock in a zero percent tax rate for the rest of your life, which is not a bad consolation prize. After the Secure Act, using a trust to protect your money after death is no longer viable. Regardless of what happens with tax rates, this is going to become a huge burden for a number of people, and this makes a permanent life insurance policy even more attractive. People don’t care about the vehicle. They want the results. They want low taxes, larger inheritance, and post death control, and a permanent life insurance plan that fits the bill. Mentioned in this Episode: The New Retirement Savings Time Bomb by Ed Slott can be pre-ordered on Amazon here: https://www.amazon.com/gp/product/B07TSZSSY5/ref=dbs_a_def_rwt_bibl_vppi_i0
28 min
MyLife: Chassidus Applied
MyLife: Chassidus Applied
Rabbi Simon Jacobson
Ep 345: Is There Spiritual Significance to the Landing on Mars and the General Exploration of Space?
Addressing the Personal and Emotional Needs of Our Community and Answering the Most Pressing Questions of Our Lives -- from the Perspective of Chassidic Thought. Submit your question now at  https://www.chassidusapplied.com/ask-rabbi-jacobson, or email: info@chassidusapplied.com. WEBSITE: https://www.chassidusapplied.com/ EMAIL US: info@chassidusapplied.com SPONSOR A MYLIFE: CHASSIDUS APPLIED EPISODE, OR EXPLORE OTHER GIVING OPPORTUNITIES: https://www.meaningfullife.com/sponsorships THIS WEEK'S TOPICS: • Lessons from 9 Adar and Tetzaveh        o What is the significance of the Frierdiker Rebbe's arrival to the “lower hemisphere?         o What can we learn from this about battling the godless “communists” of our time?        o Why is Moshe’s name not mentioned in this parsha?  • Chassidus Applied to Purim        o What is the significance of the mitzvah of eradicating Amalek?         o Why would G-d create evil people and then command us to obliterate them?        o Why don’t we hoot when King Saul’s name is mentioned?        o Why does the Megillah start with a party that happened years before the main part of the story?        o Why are Pesachia and Hadassah called by their secular Persian names, Mordechai and Esther?        o What ever happened to Vashti?        o What happened to Achashverosh after the Purim story in the Megillah?         o Did Haman work in a barber shop before getting a job in Achashverosh's court?        o Why is there a custom to wear masks on Purim?        o Is there a connection to Covid masks?        o Why did the Rebbe not wear a costume on Purim if that is the custom?  • What is special about the month of Adar? Should one push off a court case to this month?  • Is there spiritual significance to the landing on Mars and the general exploration of space?  • Follow-up: Bizbuz ha’otzros  • Chassidus question: How do we explain the statement cited in Chassidus that Yom Kippurim is only like Purim?  MyLife: Chassidus Applied is a weekly video webcast candidly answering questions from the public about all life matters and challenges, covering the entire spectrum of the human experience. The objective of the program is to provide people with inspired guidance and direction, empowering them to deal with any issue they may face. MyLife demonstrates how Chassidus provides us with a comprehensive blueprint of the human psyche as a microcosm of the cosmos, and offers us all the guidance we need to live the healthiest possible life and build nurturing homes and families, bringing up the healthiest possible children, emotionally, psychologically and spiritually. MyLife is brought to you by the Meaningful Life Center as a public service, free of charge.
1 hr 14 min
Money! with Stacy Johnson
Money! with Stacy Johnson
MoneyTalksNews.com
The Pros and Cons of Working in Retirement feat. Paula Pant
Not long ago, the phrase "working in retirement" was an oxymoron, much like "bittersweet," "act naturally" or "hot water heater." After all, if you're working, you're by definition not retired. But that was then. These days, working at least part-time while retired is increasingly common. According to one recent survey quoted in Forbes, 27% of pre-retirees said they planned to work part-time in retirement and among retirees, 19% are working part-time. Why so much working during retirement? More likely than not, because of money. As we explained in articles like 8 Reasons Your Parents Had an Easier Retirement Than You Will, pensions are rapidly disappearing, replaced by much less reliable accounts like IRAs and 401(k)s.  And as retiree income is falling, costs are rising. On the plus side, however, while more retirees may be forced back into the workplace to make ends meet, there are more ways than ever to bring in a bit of extra bacon. In short, in my parent's generation, retirement meant not working at all. But for us Boomers, retirement is morphing into something different. It's not about doing nothing. It's about being productive and making money, but by doing what you want to do, rather than what you have to do. What kind of work will today's (or tomorrow's) retiree look forward to doing? Will it be easy to find pleasant, lucrative work? Should we start long before we retire? In this week's "Money" podcast, we're going to find answers to these questions, as well as many more. Our guest is author and super-popular podcaster Paula Pant from Afford Anything. Smart, funny and knowledgeable, you'll have a good time listening to her. Want more information? Check out these resources: 7 Tips for Getting a Great Part-Time Job in Retirement 10 Stats About Working in Retirement This Job Board Specializes in Remote Work and Flexible Gigs 5 Reasons You Should Work for as Long as You Live 15 Jobs for Retirees That Can Be Done From Home 8 Signs That It's Time for You to Unretire AARP: Job Search Resources for 50+ Subscribe to the Money Talks News newsletter Take our The Only Retirement Guide You'll Ever Need course Take our Money Made Simple course Hosts: MoneyTalksNews MirandaMarquit.com Ask us a question Become a member: https://www.moneytalksnews.com/members/ See omnystudio.com/listener for privacy information.
28 min
ChooseFI
ChooseFI
The Unstuck Network
300 | Relationships and Money | Jillian Johnsrud
* Money is one of the top three things people struggle to communicate with, falling right below sex and above our reasons and motivations for work. * In her coaching practice, Jillian finds clients will be very open in one-on-one sessions, but when working with couples, it becomes much more uncomfortable. * Jillian believes this discomfort is because discussions of things like sex and money happened behind closed doors and weren’t modeled for us growing up. * In response to a call put out for questions in Brad’s FI Weekly newsletter, listeners submitted their questions for Jillian about relationships and money. * The first comes from Jonesy who had a question about keeping the lines of communication open about money with a significant other when they are at different stages. He is working and beginning to build his portfolio and savings, while his significant other is still in school and struggling to make ends meet. * Jillian suggests first trying to find common ground to discuss money. You can start with telling your own money stories, like how your parents spent money or what you wish they had spent money on. It’s important to feel seen and heard. Sharing childhood stories are opportunities to start having conversations to begin learning about each other financially. * Help make the conversation not feel like a trap by being genuinely curious about your partner’s life and experience. You can approach discussions about money much in the same way couples talk about the parenting they witnessed and experienced. * Pick one or two questions to open up the conversation and put your partner in a relaxed state. Ensure they feel seen and heard before transitioning into conversations on budgets or debt payoff. * Taking the small step of sharing money stories can help the couple come away with positive feelings, feel closer, and know just a little bit more about each other. * Jillian and her husband did not communicate about money well during the first few years of their marriage. They had very different money stories and didn’t know how to explain why they were reacting or felt the way they were. * Breaking the big scary stuff down into bite-sized non-intimidating questions is something Jillian guides users through in her latest workbook, part of which asks us to examine our parents’ patterns, whether or not we have copied or rebelled against them, if what was inherited is serving you well, and do you want to take it forward. * Because Jonesy and his partner aren’t married, Jillian says it’s okay to skip the specifics in the middle, like savings rates and budgets, and discuss the outcome, like a common goal to work toward together. * If you work on learning to talk about money, understanding each other financially, and can work toward a common goal, by the time you are on the same page, the middle stuff will be easier. * Listener Sam wants to know if it can work when one half of a couple is excited about being on the FI path but the other half says FI is not for them. Sam has been on her journey for three years and has a 50% savings rate and plans to retire early, but recently married and her husband’s savings rate is far from the same and he plans on working until 60. They currently keep their finances separate. * Jillian thinks Sam and her husband could benefit from having conversations about work, its role, and how it ties to identity. It’s feasible for one person to retire while the other works, but it can create a rift unless they understand each other’s stories and mindsets. * Brad wonders how Sam and her husband keeping their finances separate could work logically in the long-term. Jillian thinks on the surface it cold work so long as they work on everything below the surface and sure each is truly comfortable with the situation. * Listener Titan wants to know how to make the monthly chart tracking their progress toward FI more fun and exciting for his significant other. Unfortunately, Jillian thinks Titan’s partner will never be excited about it. In any relationship, it seems like there’s one who likes worksheets and graphs and one who prefers to talk about things. She suggests not focusing on the numbers on the graph and instead make it about the amazing life they are creating or whatever is exciting for them. * Jonathan can sympathize with Titan’s situation but says what were are looking for is trust that you are building an awesome life together and moving forward in the same direction. * Jillian’s course, One Hour Millionaire, is a 21-day program with the premise that it should only take you one hour a month to set your trajectory to a million-dollar net worth. * Website:  JillianJohnsrud.com * Podcast: Everyday Courage Resources Mentioned In Today’s Conversation * Download the Stereo app and join us on Tuesdays for the live show! * Compare home and auto rates from top insurers at Policy Genius. * Explore Season 2 of Rebel Entrepreneur and make money doing something you love. * Register for Jillian Johnsrud’s, One Hour Millionaire Course, and get a $30 discount during the month of March with code ChooseFI30. If You Want To Support ChooseFI: * Earn $1,000 in cashback with ChooseFI’s 3-card credit card strategy.  * Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence.
44 min
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