Social Security, Minimum Dignity Floor, ERISA, and Roth IRA Contributions: Q&A #2044
1 hr 11 min

Jim and Chris answer listener questions about Social Security, The Minimum Dignity Floor, ERISA, and Roth IRA Contributions.

(7:30) A listener wonders where to start when deciding which withholding rate to choose for Social Security benefits.

(18:55) John Jacob Jingleheimer Schmit from Kentucky asks about Social Security claiming strategies to cover their Minimum Dignity Floor.

(45:05) An Ohioan wants to know about ERISA rules with naming child beneficiaries on 401(k)s.

(58:50) George would like more information on Roth IRA contributions for young children.

The post Social Security, Minimum Dignity Floor, ERISA, and Roth IRA Contributions: Q&A #2044 appeared first on The Retirement and IRA Show.

Retirement Starts Today Radio
Retirement Starts Today Radio
Benjamin Brandt CFP®, RICP®
BIG Legislation Changes, tiny Portfolio Changes, Ep # 167 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
Money! with Stacy Johnson
Money! with Stacy Johnson
MoneyTalksNews.com
How to Get a Deal on Everything You'll Ever Buy
We're approaching that special time of the year; the time when we blow our budgets and buy everything that isn't nailed down. Whether you're planning on doing your holiday shopping online, in stores or both, here's some good news: You don't ever have to pay retail again. For anything. Ever. In this week's "Money" podcast ( https://www.moneytalksnews.com/podcasts/ ) , we're going to explore techniques -- some old, some new -- to save on everything you ever buy. Links: * 12 Ways to Never Pay Full Price for Anything ( https://www.moneytalksnews.com/slideshows/15-ways-never-pay-full-price-for-anything/ ) * 15 Golden Rules for Saving on Every Purchase ( https://www.moneytalksnews.com/15-simple-proven-strategies-save-everything-youll-ever-buy/ ) * 10 Ways to Get a Discount on Every Online Purchase ( https://www.moneytalksnews.com/10-ways-get-discount-every-online-purchase/ ) * 15 Golden Rules for Saving on Every Purchase ( https://www.moneytalksnews.com/15-simple-proven-strategies-save-everything-youll-ever-buy/ ) * 25 Ways to Spend Less on Food ( https://www.moneytalksnews.com/25-ways-to-spend-less-on-food/ ) * 11 Ways to Save on Entertainment ( https://www.moneytalksnews.com/the-town-for-less-19-ways-save-fun/ ) * 13 Ways to Save on Clothing Without Sacrificing Quality ( https://www.moneytalksnews.com/23-tips-for-saving-money-clothing/ ) * Cash Back Site: Rakuten ( https://www.moneytalksnews.com/rakuten ) * Cash Back Site: Swagbucks ( https://www.moneytalksnews.com/swagbucks ) 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
36 min
Retirement Answer Man
Retirement Answer Man
Roger Whitney, CFP®, CIMA®, RMA, CPWA®, AIF®
How Do I Stop Feeling Guilty About Success So I Can Enjoy Retirement?
There are so many things to take care of in retirement. It can all feel overwhelming. Many people worry about their jobs, the state of the world, retirement, and their uncertain future. On this episode of Retirement Answer Man, you’ll learn what you can do to ease your worries about the unknown as well as discover the answers to questions from listeners like you. Join Tanya Nicols and me as we answer questions about an early retirement package, what to do when you have a significant portion of your net worth in one stock, and how to use second to die life insurance. What is worry? Worry is a noun that means a state of anxiety and uncertainty over actual or potential problems. It can also be a verb meaning to give way to anxiety or unease. Are you a worrier? Although worry is a healthy thing, oftentimes people allow their minds to dwell on difficulties or (perceived) troubles. There is a fine line between healthy worry and overwhelming worry. The fine line between healthy and unhealthy worry can be hard to walk Just like how exercise creates stress in your muscles and grows them, worry can do the same to your mind. Worry can spur you into action causing you to improve your situation. However, worry taken to excess can be paralyzing. It can cause you to lose perspective so that you can no longer see clearly. You can’t let worry overwhelm you so much that it steals your life away. Listen in to hear what you can do to help ease your worries about the state of the world, life, and retirement. How do you perceive the wealth you have created? It is often said that money is the root of all evil, but this isn’t true. The love of money is the root of evil. Do you feel guilty about the wealth you have created? Guilt is a common theme for many successful people. Many create an emotional attachment to their money. Rather than judging yourself for creating your wealth, use that wealth as a tool. How you use it is important. What will you do with your wealth to create an amazing life? What to do when you have a significant portion of your assets in one stock One listener has ⅓ of her net worth tied up in one particular tech stock. She is looking for some guidance on how to handle this. A great question to ask is: what would happen to your net worth if that stock simply vanished? This question can get you thinking about how much you need to have a good life. Once you have thought deeply about your life then you can be methodical about this asset. Set a number to help guide you and don’t let taxes sway your decision. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN WHAT DOES THAT MEAN? * [1:40] What is worry? Q&A WITH TANYA NICHOLS * [10:56] How do you feel about your wealth? * [16:52] What to do when you have a significant portion of your assets in one stock? * [22:57] How to balance Social Security, taxes, and an early retirement package * [25:46] Second to die life insurance TODAY’S SMART SPRINT SEGMENT * [30:47] Control your input Resources Mentioned In This Episode Align Financial BOOK - The Daily Stoic by Ryan Holiday BOOK - The Rational Optimist by Matt Ridley BOOK - The Power of Agency by Anthony Rao Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement by Roger Whitney Work with Roger Roger’s Retirement Learning Center
33 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
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
Simply Tax
Simply Tax
Damien R. Martin, CPA
AICPA Advocacy Updates: PPP & Beyond #113
The American Institute of CPAs (AICPA) Tax Policy & Advocacy Team and volunteer members continually monitor and advocate on legislative, regulatory, and administrative tax matters—and 2020 has been an exceptionally busy year. Guest Amy Wang, AICPA tax policy and advocacy senior manager, joins host Damien Martin to share what the team has been up to and provide an update on Paycheck Protection Program (PPP) loan forgiveness. Here’s what’s covered: * Update on PPP loan forgiveness and related activity in Washington @01:16 * The latest with AICPA tax policy and advocacy efforts @06:51 * Ways the AICPA has made a difference in the guidance implementation process @17:58 * Key areas of focus going forward @21:12 * Closing thoughts @24:44 BIO FOR GUEST Amy Wang is a member of the AICPA Tax Policy & Advocacy Team, whose mission is to serve the public interest by helping AICPA members be the most trusted professional providers of tax services, while also advocating sound tax policy and effective administration. She plays a key role in the development of AICPA testimony for tax-related congressional hearings. Learn more about our guest and get additional resources here. GET MORE “SIMPLY TAX” We’re excited to also provide video content to strengthen your tax mind! Check it out on our YouTube channel. A complete archive of our episodes is available on our website and YouTube playlist. We’d love to hear from you! Email feedback and questions to SimplyTax@bkd.com. Connect with Damien on social media! LinkedIn | Twitter | Instagram | YouTube
28 min
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