Managing Your Financial Future with Lucia Capital Group
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Managing Your Financial Future with Johnny Dean and "Professor" Rick Plum, CFP® Brought to you by the advisors and investment professionals at Lucia Capital Group, a registered investment advisor. Integrating financial planning and investing decisions, designed to help you reach your own financial goals. Want the best tips on which hot stocks you should buy this week? Go somewhere else - we don't do that. It's all about planning, strategy, managing your future and taking control of your financial life. Securities offered through LPL Financial, member FINRA/SIPC.
Available episodes
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4 days ago
Why You Need to Manage Risk
In the world of investing, there are things you can control, and things you cannot. Where is the stock market headed? Which way are the economic trends going? These are the uncontrollable aspects, impossible to predict with accuracy.
Because of this, we have to assume that certain risks will occur along the way. And while we don't know which risks will happen when, by being prepared for them, we can potentially achieve a better outcome.
Learn more about why it's so important to manage risk and how to prepare for unforeseeable events with podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® on this week's episode of *Managing Your Financial Future*!
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Jun 14, 2022
Do We Need to Worry about This Volatile Stock Market?
The first half of 2022 has not been good to stocks. After hitting record highs at the end of 2021, it's easy to forget that stocks also go down in value from time to time. And often, when they go down, they do so quickly and painfully.
One question that's always on people's minds when these cycles turn south: Is this something to be concerned about? The answer to that question may depend almost entirely on what your portfolio withdrawal strategy looks like. If you don't need that money for at least 10 years, it may be no big deal. If you need it next week, it is indeed a very big deal.
You need to know how to set up your withdrawal strategy so that the down cycles don't interfere with your sleep cycles. Find out more from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of *Managing Your Financial Future*!
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Jun 7, 2022
How to Choose the Most Suitable Pension and Annuity Options
In last week's episode, we discussed the various ways that a guaranteed income stream can work; specifically, how annuities function in general. We received a lot of response to that topic, and more than a few questions as well.
When deciding when and how to take your annuity or pension payments, your options can seem almost unlimited. Sorting it all out requires an understanding of the potential outcomes that each choice brings.
In this week's episode of *Managing Your Financial Future, *podcast host Johnny Dean and "Professor" Rick Plum, CFP® take you through this decision process, and give you some valuable tips you should consider before you make an irrevocable income decision.
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May 31, 2022
Let's Clear Up the Confusion About Annuities
There are few financial tools out there with a greater disparity of information than annuities. Locating the details you need in order to decide if an annuity is suitable for you is an onerous task, to say the least.
We're here to help. Is an annuity a good product for you? The best answer is this: it depends. There are several factors involved, but the first step is knowing something about them. by knowing what you may be buying, you're in a far better position to answer the suitability question.
This week's episode of *Managing Your Financial Future* with podcast host Johnny Dean and Rick "The Professor" Plum, CFP® give you details on how annuities work, what to look out for, how they're taxed to heirs, and much more.
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May 24, 2022
I Forgot to Take My RMD - What Now?
Required Minimum Distributions (RMDs) are a fact of life for most IRA owners who are at least 72 years of age. A certain amount of money must be distributed out of the IRA each year, or the IRS imposes a strict penalty on the missed amount.
How strict? 50 percent of the amount you were supposed to take out! That's a scary proposition, but what if, for one reason or another, you missed your RMD for one or more years? What now?
In this week's episode of *Managing Your Financial Future*, podcast host Johnny Dean and Rick "The Professor" Plum, CFP® talk about ways to potentially remedy this situation, and maybe -- maybe -- not have to pay the penalty. Have a listen and find out more!
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May 17, 2022
The Bucket Strategy Is Simple - Or Is It?
The Bucket Strategy is designed to give you cash flow from assets that are not affected by the whims of the stock market. You don’t want your income to be cut simply because the markets aren’t doing well, and this is the basic premise of Buckets.
Is it complicated? Yes and no. How each person’s Buckets should be set up is almost completely dependent on their goals and their risk tolerance. It’s not very often a matter of “set it and forget it.”
In this week’s episode of Managing Your Financial Future, podcast host Johnny Dean speaks with “Professor” Rick Plum, CFP® about what’s easy – and what’s not so easy – about designing a potentially effective Bucket Strategy.
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May 10, 2022
What to Know About Inheriting Assets
If you're an heir who's a beneficiary of any kind of asset, then you may know that it can be both a good and a bad thing. For many people, an inheritance is like a gift from above, something that will improve their life in one form or another.
For others, especially those who don't necessarily need the inherited asset(s), that gift can turn into a real headache - especially from a tax standpoint. Knowing ahead of time how to minimize the downside and potentially maximize the upside is a big part of financial planning.
The "Great Wealth Transfer" between Boomers and their children has begun. Find out more about what you need to know and need to do from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of *Managing Your Financial Future!*
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Apr 11, 2022
How To Create Guaranteed Income In Retirement
A steady income 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. While many (if not most) people will have a Social Security benefit paid to them, pensions are less common today than they used to be.
So in absence of a company pension, how might you create a form of guaranteed income? Find out from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of *Managing Your Financial Future*!
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Apr 5, 2022
Want To Retire Early? Here's What You Need to Know
In the financial planning world, a lot of focus is put (rightly) on those who want to retire around age 65, give or take a few years. But what about people who are looking to hang it all up well before that age - maybe 55, 50, or even younger?
It's more common than you might think. Doing it successfully, though, is a much bigger challenge. After all, your nest egg needs to last at least as long as you do, and at that age you're not yet eligible for Medicare or Social Security. So how do you make it happen?
There are ways to do it. Learn more from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of *Managing Your Financial Future!*
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Mar 29, 2022
How To Allocate - And Withdraw - Your Assets
There are at least three important pieces to the retirement portfolio puzzle: asset allocation, asset location, and asset withdrawal. The first two are related to the accumulation (or saving) phase, and the third has to do with the decumulation (or withdrawal) phase.
Which assets should go where when saving for retirement? Tax-free, tax-deferred, or personal accounts? A combination of some or all? And when you're taking the assets out of the portfolio, which one(s) should ideally come out first?
Get the answers to these questions from podcast host Johnny Dean and his regular guest, "Professor" Rick Plum, CFP® on this week's episode of *Managing Your Financial Future!*
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Mar 22, 2022
The Benefits and Costs of a Roth IRA
One thing that many people would agree on is that paying no taxes is better than paying any taxes at all. This makes the tax-free nature of Roth IRA withdrawals very attractive, as long as all of the specific rules are met.
Of course, there's a cost to getting money into a Roth IRA. Whether it's via a contribution or a conversion, a Roth can only accept post-tax money. Thus, you have to consider whether paying the taxes on the money now is worth the ultimate result of tax-free later.
What are the costs and benefits of Roth IRAs? Find out from podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® on this week's episode of* Managing Your Financial Future*!
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Mar 15, 2022
What If The Markets Crash Just As You Begin Retirement?
What if you retire at the "wrong" time? There's a genuine fear among many people that right around the time they need to access their nest egg, their portfolio will suffer a big decline because of an unanticipated market crash.
There's nothing we can do to predict or prevent a drop in the stock market. And sometimes we have no real choice as to when we can no longer work. So if these two variables are uncontrollable, what can you do besides hope and pray?
It all comes down to having a strategy. Podcast host Johnny Dean talks with "Professor" Rick Plum, CFP® about how you may be able to retire without having to worry about the the ups and downs of the stock market on this week's episode of *Managing Your Financial Future*!
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Mar 8, 2022
The Hidden Risks in Your 401k
In the world of investing, time can be one of your biggest allies. As your time span grows shorter, though, your risks tend to go up: if you need your money sooner rather than later, your stock investments could take a downturn at just the wrong time, leaving you without the funds you need.
A Target Date Fund in a 401k is designed to deal with this time-related risk. As you get closer to retirement, and thus closer to needing your funds, the investments are supposed to become more conservative overall, less volatile, with the goal of preserving your principal.
But it doesn't always work out this way. Find out from podcast host Johnny Dean and "Professor" Rick Plum, CFP® why these funds may actually cause greater risk to you inside your 401k on this week's episode of *Managing Your Financial Future!*
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Mar 1, 2022
Tossing the "4-Percent Rule" Out the Window
You may have heard of the old financial planning adage that says as long as you withdraw no more than 4 percent of your portfolio's balance each year, it has statistically a much better chance of surviving over a 30-year timespan. Some have said the withdrawal rate should be even lower than that -- maybe no more than 2 percent.
But whether the amount is 4 percent, 2 percent, or some other number, the more important issue is this: what is your withdrawal strategy? Will you potentially have to sell stocks when they're down in value in order to meet your spending needs? If so, you're asking for trouble.
In this week's episode of *Managing Your Financial Future,* podcast host Johnny Dean speaks with "Professor" Rick Plum, CFP® about how the "4 percent rule" is really just a guideline, and why having a sound withdrawal strategy may be your bigger key to success.
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Feb 22, 2022
Tax Forms, Due Dates, Extensions: Making Sense of It All
It’s tax season! This means forms, deadlines, maybe extensions, payments, refunds, and for many, a gigantic volume of information. And yes – it all must be done correctly.
When was your W-2 supposed to arrive? How about your 1099 forms? Are you getting any K-1's, or maybe a 5498 or two? What if a form arrives in your mailbox and you’ve already filed your taxes?
These questions are valid, and there are answers. Get the answers from podcast host Johnny Dean and “Professor” Rick Plum, CFP®, on this week’s episode of *Managing Your Financial Future! *
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Feb 15, 2022
Consider This Social Security Filing Strategy
When should you start taking your Social Security benefits? This is an important question, and one that’s often dreaded by people who don’t want to make the “wrong” decision.
They often look at it as a “one and done” choice, which heightens their anxiety about getting it right. But maybe it isn’t an irrevocable decision – maybe there’s a strategy that you hadn’t considered.
On this week’s episode of *Managing Your Financial Future*, podcast host Johnny Dean talks with “Professor” Rick Plum, CFP® about how you may be able to push the “undo” button on your Social Security benefits!
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Feb 8, 2022
Why We Do Buckets
The Bucket Strategy has been around for more than 25 years, in one form or another. Why has it survived for as long as it has? With all of the withdrawal strategies that have come and gone over the years, Buckets has managed to become a mainstay for many advisors around the country.
In this week's episode of *Managing Your Financial Future, *podcast host Johnny Dean talks with the "Professor" Rick Plum, CFP® how he became a financial professional and why the Bucket Strategy is his preferred method of taking income in retirement.
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Feb 1, 2022
Why Your Home May Be Your Best Tax Friend
Home prices are up pretty much everywhere, and for those who own one, this is good news on many different fronts. If you're considering selling and maybe downsizing, or moving to a less expensive area, you may be able to take advantage of one of the best tax breaks out there.
On this week's episode of *Managing Your Financial Future*, find out from podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® why your primary residence may be your best friend when it comes to capital gains taxes!
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Jan 25, 2022
3 Money Moves to Make Right Now
In the world of financial planning, it's often better to do things sooner rather than later. That is, after all, why you do planning, isn't it? No point in waiting until the very last minute.
As it's still early on, there are some things that you're much better off taking care of right now, before the year wears on, before the ticking clock becomes louder, and before these things slip your mind.
What do you need to know? Find out from "Professor" Rick Plum, CFP® as he talks with podcast host Johnny Dean this week on episode 1 of Season #8 of *Managing Your Financial Future*!
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Nov 30, 2021
How To Set Up Your 401k Distributions As You Approach Retirement
If you've been saving for a long time in your 401k, you may have decided as you approach retirement that you’d like to reallocate some of those investments into something less volatile than, say, an aggressive growth fund. So maybe you change your allocation to include something with relative safety.
This can be a great idea: after all, you don’t want a big market downturn to take a huge chunk out of your savings right when you need it. But as you reallocate, you may also want to consider changing how you contribute your new money.
On this week’s episode of *Managing Your Financial Future*, podcast host Johnny Dean talks with “Professor” Rick Plum, CFP® about things you should do with your 401k as retirement gets closer.
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Nov 23, 2021
What If You Forget To Take Your RMD?
Whether you need the money to live on or not, it's a fact that once you reach age 72, you're generally required to take a certain amount of money each year out of your tax-deferred retirement accounts. These are your Required Minimum Distributions, or RMDs.
The penalty for missing an RMD is severe: 50 percent of the amount you missed! That's not fun, and it certainly is costly. So what happens if you accidentally miss the RMD for a given year? Are you simply out of luck?
Maybe not. Learn more about what remedies you may have available to you with podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® on this week's episode of *Managing Your Financial Future!*
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Nov 16, 2021
The More You Know, The Less You May Owe!
Financial knowledge is crucial for retirement planning. This is especially true when it comes to taxes, because knowing too little may wind up costing you a whole lot.
The problem, of course, is that taxes can be extremely complicated. Sometimes when you make one financial move, that move can trigger an extra tax bill that you never anticipated.
In this week's episode of *Managing Your Financial Future*, podcast host Johnny Dean speaks with "Professor" Rick Plum, CFP® about how even a little knowledge about taxes may go a long way toward saving you money when you file your return!
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Nov 9, 2021
What You Need to Know About Inheriting an IRA
It's always nice to receive a big chunk of money outside of our normal expected income. Whether it's a bonus check from work, a lottery windfall, or an inheritance of some kind, any extra cash is generally a good thing.
If you've inherited an IRA, though, whether it's from a deceased spouse or someone else entirely, there are some rules you need to be aware of. Depending on when the person died and how old you are when you received the asset, among other things, if you're not careful with how you treat it, you could be looking at a bigger tax bill than you'd expected.
Learn more about this important topic from podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® on this week's episode of *Managing Your Financial Future!*
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Nov 2, 2021
Is Now A Good Time to Convert to a Roth IRA?
Congress passed a law a few years ago that temporarily lowered tax rates across the board for most individuals. With these laws set to expire after 2025, you might be wondering: is now a good time to convert my traditional IRA to a Roth IRA?
It might be, but you should be aware of the consequences of adding extra income to your tax return. While tax rates might be favorable right now, if you decide you want to convert a large sum -- that is, extend yourself up another bracket or two -- you may be subjecting yourself to more than just extra taxation on that conversion.
What should you be aware of if you decide to convert to a Roth? Get more information from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of *Managing Your Financial Future*!
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Oct 26, 2021
What If You Live Longer Than You Expect?
You’ve probably made plans to take care of those people who are close to you if you didn’t live as long as you’d expected: life insurance, trusts and wills, succession planning for your business, etc.
But have you thought about you might do if you lived much longer than you thought you would? Are you prepared if you find yourself in your 90s, or even older, and in need of an income? What if you needed long term care for an extra-long term?
There are things you can (and should) do to plan for a long life. Podcast host Johnny Dean and his guest, “Professor” Rick Plum, CFP® talk about ways you may be able to protect yourself and your income in this week’s episode of Managing Your Financial Future.
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Oct 19, 2021
Answering Your Most Common Social Security Questions
This episode covers some of your most common Social Security questions that we get every week: How can I avoid paying taxes on my benefits? Is there an ideal age to start taking benefits? Can I collect a benefit even if I’m still working? How do the spousal and survivor benefits work?
Social Security provides a baseline for many people’s retirement plans, which is why it’s important to be as well-informed on the topic as you can be. Get some answers to your questions from podcast host Johnny Dean and “Professor” Rick Plum, CFP® on this week’s episode of *Managing Your Financial Future! *
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Oct 12, 2021
How to Set Up Bucket One
When people ask us about our Buckets strategy, they often find themselves a bit confused on their most liquid bucket – Bucket #1. The idea is to provide an income derived from sources with little to no volatility, shielded from the stock market’s ups and downs.
But what should go into that bucket? Do you really need to have 5, 6, or 7 years of, say, cash? Not necessarily – in fact, it may be a good idea to “bucketize” your Bucket 1 to try to “squeeze just a little extra juice from the orange.”
Charming metaphors aside, it is an important topic, which is why we’re talking about how to structure your Bucket 1 with podcast host Johnny Dean and “Professor” Rick Plum, CFP® on this week’s episode of *Managing Your Financial Future! *
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Oct 5, 2021
How To Manage Your Tax Bill, Now and in Retirement
It’s been said that taxes are perhaps the biggest drag on your portfolio’s returns. So it would stand to reason that managing your taxes, with the goal of keeping them as low as possible over the course of many years, should be one of your biggest financial planning priorities.
But “managing” your taxes is different from “minimizing” them. There may indeed be times where paying a little more in taxes now could save you much more down the road: maybe for the rest of your life. Get the details from podcast host Johnny Dean and his guest, “Professor” Rick Plum, CFP® on this week’s episode of Managing Your Financial Future!
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Sep 28, 2021
Know Your Pension Options: Lump Sum, or Annuity?
For anyone with a pension, the decision of how to take the payments is an important one. Are you offered the choice to take the entire amount as a lump sum? If so, you’ve got to know about what could happen when you decide to go one way or the other.
And for married people, there are even more choices, compounding the issue even further.
On this week’s episode of Managing Your Financial Future, “Professor” Rick Plum, CFP ® speaks with podcast host Johnny Dean about what you need to consider before you make this “one-and-done" decision. Tune in and find out more!
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Sep 21, 2021
How Should You Invest in Your 401k?
If you’ve ever looked at your investment options inside your 401k plan (or other retirement plan at work), you might have felt overwhelmed by the number of choices. Even if your choices aren’t necessarily numerous, how do you know whether you should go all in with stocks, or maybe keep it safer with a blend of volatile and non-volatile assets?
This decision is big, and going the wrong way can lead to significantly different outcomes in the future. In this week’s podcast, host Johnny Dean and his guest, “Professor” Rick Plum, CFP®, talk about what you need to consider when setting up your asset allocation for your 401k. Go Big? Go small? Go safe? Tune in, and find out more!
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Sep 14, 2021
Roth or Traditional IRA - How Do You Decide?
When it comes to saving for retirement, the decision to put your money into either a Roth or a Traditional IRA may be more complicated than you think. Part of the decision involves your tax bracket today vs. your tax bracket at retirement, but there’s more to it than that.
When is investing in a Roth IRA a better idea than a traditional? On the other hand, who should consider a Traditional IRA over a Roth? And what are the consequences, good and bad, of doing one or the other? Get the answers to these questions, along with an in-depth look at both types, with podcast host Johnny Dean and “Professor” Rick Plum, CFP®, on this week’s episode of *Managing Your Financial Future! *
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Aug 23, 2021
How Much Can I Withdraw From My Portfolio?
So you've 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 you're concerned: you don't want to take too much, because you don't now 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?
Podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® talk about how to figure out what may potentially be the "right" amount you can remove from your portfolio in this week's episode of *Managing Your Financial Future!*
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Aug 17, 2021
How Your Pension May Reduce Your Social Security Benefits
So let's say your idea is to take your Social Security early, maybe age 62 or 63, and then wait until age 65 to begin your pension benefits. You know what both your Social Security and pension payments will be, and so you set up your budget and your lifestyle accordingly.
But then you find out, maybe too late, that your Social Security payments have been reduced -- or even eliminated -- once those pension benefits kick in. All of your careful planning has been cast overboard, and now you have to wing it.
That scenario can happen to those who aren't aware of the rules regarding Social Security benefits and certain pension payments. Find out more about what to expect, and how to deal with it, from podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® on this week's episode of *Managing Your Financial Future*!
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Aug 10, 2021
Can Kids and Ex-Spouses Receive Social Security Benefits?
The topic of Social Security always brings with it many questions, which isn't surprising, given the complex nature of the program. Beyond the most popular questions, though, are a few that may impact you, even if you didn't think to ask about them.
Two of those topics are these:
Can I work and still collect a Social Security benefit?
Can my kids, or my ex-spouse, collect a benefit based on my work record?
The answer to each of these questions is yes -- if. What are the "ifs" you need to know about? Have a listen to this week's episode of *Managing Your Financial Future*, with podcast host Johnny Dean and "Professor" Rick Plum, CFP® and find out more!
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Aug 3, 2021
Owning Stocks in Retirement: Why We Do Buckets
Have you ever heard the idea that stocks are too volatile for retired people to own? There's even an old rule-of-thumb formula that tells you to decrease your stock holdings by 1 percent every year and replace them with bonds. These generic "guidelines," though, are hardly prudent advice for most people, because everyone's situation requires a different approach.
It may actually be more beneficial for some people to hold steady -- or even increase -- their exposure to stocks as they get older. What often matters more is having a suitable withdrawal strategy: one that aims to take volatility into account, potentially avoiding selling stocks when they're declining in value.
In this week's episode of *Managing Your Financial Future*, podcast host Johnny Dean talks with "Professor " Rick Plum, CFP® about why a "Buckets" strategy may help to actually counteract the effects of market volatility on a retiree's portfolio.
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Jul 27, 2021
Should You Pay Cash For Your Home, or Get a Mortgage?
Real estate prices have been ticking up steadily over the past year or two, especially for mid-range single family homes. And while many people find that the only way they can afford a new home is to take out a mortgage, there are also those who have either enough current gains or enough cash on hand to consider buying a home outright.
Having the cash to pay for a home, versus investing that amount and taking out a mortgage, is something of a dilemma for some people. There are those who like the security of owning a home outright, but there are also those who believe they can earn more than the cost of the mortgage through savvy investing.
Which way may be potentially right for you? In this episode of *Managing Your Financial Future,* podcast host Johnny Dean and "Professor" Rick Plum, CFP® talk about what you need to consider before making that big decision!
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Jul 20, 2021
Will Your Taxes Be Lower in Retirement?
It would seem to make some sense that once you begin retirement retirement, your tax bill will tend to increase - at least in the early years. The logic is that people normally have much, if not most, of their retirement funds in a company retirement plan (401k, 403b, etc.), which are all 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? In this week’s episode of *Managing Your Financial Future,* podcast host Johnny Dean and our “Professor” Rick Plum, CFP® talk about why you may actually owe less in taxes than you thought you would when you retire.
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Jul 13, 2021
At What Age Should You Start Taking Your Social Security Benefits?
It's the most common question we get when we're discussing Social Security: what's the best age to start taking your benefits? Naturally, everyone's situation is different, but there are general guidelines to determine if it's better to take them early, or to wait until later for a larger monthly benefit.
But it's not as simple as just saying, "if you think you'll live a long time, take them later; if not, take them sooner." Because in some instances, doing the exact opposite may work out far better for you. Podcast host Johnny Dean and "Professor" Rick Plum, CFP® discuss this all-important topic on today's episode of *Managing Your Financial Future.*
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Jul 6, 2021
Buying Real Estate in Your IRA: Good Idea, or Bad?
Maybe you've noticed that real estate prices have been soaring over the past year or so. And with the stock market gains we've experienced over that same period of time, you may have also seen a similar increase in the balances of your existing IRAs.
This has caused some people to wonder: if I want to buy real estate now, but I've only got my IRA funds available to do so, is it a good idea to buy real estate in my IRA, since that's where my money is?
In this week's episode of Managing Your Financial Future, host Johnny Dean and his guest, "Professor" Rick Plum, CFP® discuss the benefits of owning real estate personally versus in an IRA, and how you may be able to use those funds without the headache and hassle of having your IRA own it. Tune in and find out more!
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Jun 29, 2021
Planning for Retirement When It's Still 15-20 Years Away
When you're only a few years away from retirement, figuring out your basics -- income needs, expenses, activities -- is usually fairly easy. In many cases, your current basics will be relatively close to those you'll require once you've stopped working.
But how do you plan for all of that when you're much farther out from retirement - say, 15 to 20 years, or more? How are you supposed to make plans when you really have no realistic idea of what those income needs, expenses and activities will be?
On this week's episode of *Managing Your Financial Future*, podcast host Johnny Dean speaks with "Professor" Rick Plum, CFP® about how a professional advisor works toward achieving goals that haven't yet been established. Planning for the distant future: tune in, and find out more!
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Jun 22, 2021
Investing a Sum of Money: All at One Time, or Little By Little?
Maybe you recently got a bonus from work, or -- perhaps even better -- an inheritance from a relative. Whatever the case, if you find yourself with a lump sum of cash that you'd like to invest, a question should come to mind: do I invest it all at once, or do I phase it in over a period of weeks or months?
Many may be fearful that if they invest the amount in a lump sum, the market will take an immediate downturn. Or if they phase their investment in over a period of time, it will do the opposite and they'll miss out on gains. How do you deal with this dilemma?
It may just be a matter of knowing what your true options are. Find out more from podcast host Johnny Dean and "Professor" Rick Plum, CFP® in this week's episode of *Managing Your Financial Future*!
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Jun 15, 2021
Why Naming Your Estate's Beneficiaries Is Vital
Estate planning - it’s not just for the ultra rich! While many people don’t have estates that are large enough to warrant an estate tax (which, for married couples, is in excess of $23 million for 2021), there are other aspects of estate planning that most individuals should be aware of.
The one that perhaps affects the most people is where beneficiaries are concerned. If you have assets that you want to go to specific people or certain organizations, it’s vital that you have your beneficiary assignments done correctly, even if you already have a will and a trust in place.
What do you need to know about beneficiary assignments? It’s all about making sure your assets go where you want them to go. Learn more from our “Professor” Rick Plum, CFP® and podcast host Johnny Dean on this week’s episode of *Managing Your Financial Future*!
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Jun 8, 2021
How To Know If Your Social Security Benefits Will Be Taxed
Have you heard that your Social Security benefits are always going to be taxed as income? Have you heard that they'll be taxed at a 50% rate? Or have you heard that your Social Security benefits are never taxed at all? These statements (rumors, really) have made their way around the online world over the years, so that many people people have no idea what to believe anymore.
The truth is that sometimes a recipient's Social Security benefits will wind up being taxed under certain conditions, while others may never pay a dime on their benefits at all, even if they receive the maximum amount. Yes, it's confusing, but as we always say, knowledge in finance is power.
When might your benefits be subject to income tax? How much will actually be taxed if that's the case? And most importantly: what can you do about it? Find out more with podcast host Johnny Dean and his financial advisor guest, "Professor" Rick Plum, CFP® on this week's episode of *Managing Your Financial Future*!
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May 18, 2021
When Should You Start Taking Distributions from Your 401k?
If you’re retired, or you’re approaching retirement, there’s a decent chance that you’ve got some money saved up in what’s known as a “qualified” retirement plan – meaning one that gave you a deduction going in, is tax deferred while it grows, and then will be taxable when the money comes out. In general, we’re talking about a 401k, 403b, or something your company set up that is not a government plan.
Since you’ve been saving that money for retirement, you may have wondered when the best time to take that money out might be. If you need it to fund your daily expenses, then the answer is easy: take it out as you need it. But if you don’t need the money right now, is it a good idea to leave it in the retirement plan until you’re mandated to take some out at age 72, or should you begin taking withdrawals before that time?
It’s all about tax management. Many advisors will take the lazy way out and tell you to always wait until later. But we don’t look at it th…
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May 11, 2021
The Conventional Social Security Strategy That Could Seriously Backfire
Conventional wisdom, rules of thumb, standard advice - those are what the lazy person often resorts to when they don't have an answer for you, or they can't figure out what to do. "Everyone else does it this way" is not always a good reason to pursue a strategy that may not be suitable for you and your goals.
One common piece of conventional "wisdom" is in the Social Security arena, which says that if you'll live a long time, always take your benefits as late as possible; if you don't think you'll live very long, take them earlier. This may be good advice for some, but for others, doing exactly that can cost them thousands of extra dollars in benefits that they would have otherwise been entitled to.
How do you know if following the common advice is potentially right or wrong for you? Just tune in to this week's podcast with host Johnny Dean and his guest, "Professor" Rick Plum, CFP®, and find out. It's all about *Managing Your Financial Future!*
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May 4, 2021
How Do Financial Advisor Fees Actually Work?
One of the most common questions people ask us when they're considering the services of an investment advisor and/or financial planner is this: "what will this cost me in terms of fees?"
The question of how much an advisor charges, not just for their own services but for the team and others working alongside him or her, is one that you absolutely must get an answer for. And that answer should be clear, concise, and spelled out in simplistic form so that there's no mistaking who's getting paid, how much they're getting paid, and who is actually responsible for paying them.
Everyone should be paid for the work they do and the value they may add - you just need to be sure there are no surprises.
In this week's episode of *Managing Your Financial Future,* podcast host Johnny Dean speaks with "Professor" Rick Plum, CFP® about what kind of fees you should expect to see when you hire a financial advisor, and what to be particularly aware of before you sign on the dotted line.
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Apr 27, 2021
3 Generous Tax Law Benefits You Didn't Know Existed
Taxes can be scary. Whether you're anticipating a big tax bill this year, or you're fretting about a tax deadline that's coming up, or you're concerned that you're overpaying but can't find a way out of it. On top of that, the tax code is insanely large and complicated.
But oddly enough, the tax code also gives us some good things -- a few benefits that just may help allay some of those concerns. Learn more about 3 of those benefits, and how you might be able to use them, with podcast host and moderator Johnny Dean, and his guest, "Professor" Rick Plum, on this week's episode of *Managing Your Financial Future!*
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Apr 20, 2021
How Do You Know When You Can Retire?
If you've been planning on working until a certain age (62? 65? later?), but you find that you are a) overwhelmed by stress at work, and b) a number of years short of that "required" age, are you still able to retire? This is a question that financial advisors and planners deal with every day.
How do you know when you're really able to hang it all up? Maybe your portfolio balance hasn't reached the number you've always figured was the minimum amount you'd need. There's a chance, given certain generous tax laws and some basic strategy techniques, that you may be able to retire well before you thought you could.
On this week's episode of *Managing Your Financial Future,* Podcast host Johnny Dean and financial advisor "Professor" Rick Plum, CFP® discuss what you need to know when asking that all-important question: "When can I retire?"
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Apr 13, 2021
Annuities 101: Understanding the Basics
Of all the financial products available to consumers, it is the annuity that is perhaps the most misunderstood. The initial concept of the annuity -- you give money to an insurance company, they pay you some, or all, of that money back (and maybe more) over time -- is rather simple. But over the years they've become more complex, with more features, more options, and (yes) in some cases, more fees.
Whether an annuity is suitable for you will depend on many factors. But it's never a good idea to own an annuity (or anything else) without understanding what you're getting and why it's been recommended to you. In this week's episode of *Managing Your Financial Future, *show host Johnny Dean and "Professor" Rick Plum, CFP® give you the basics of annuities, the types that are available, and answers to some of the most common annuity questions that advisors get. Tune in for all the details!
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Apr 6, 2021
Do You Really Owe Taxes When You Give Someone a Gift?
Have you heard of the "Gift Tax?" Many people are at least familiar with the term, but relatively few know how, when, or where it might be applied. You probably give gifts all the time: some small, some not so small, and some maybe quite large, as for example a downpayment on a home for your son or daughter. Generosity certainly has its benefits, but is there also a tax that someone should be paying?
The answer is both yes and no. And it all depends on a few factors. Knowing how the gift tax works can be especially helpful when it comes time to pass your assets down to your heirs, and if you're worth a lot of money, it's even more vital that you understand how it works. Find out who should worry about a gift tax and who should not on this week's episode of *Managing Your Financial Future, *with podcast host Johnny Dean and Rick "the Professor" Plum, CFP®!
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Mar 30, 2021
How to Get Money Into a Roth When You're Over the Income Limits
You may have heard that individuals with annual incomes that exceed certain thresholds cannot contribute funds directly to a Roth IRA. This is true. So how can someone with an income above the limits enjoy the potential tax benefits of a Roth?
A simple strategy technique may allow you to do just that. Tune in to the discussion between podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP®, as they give you the information you need to know on this week's episode of *Managing Your Financial Future!*
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Mar 23, 2021
Why We Spend the Way We Do in Retirement
What's your spending strategy in retirement? Are you (or will you be) extra frugal, concerned about maintaining a steady, or even a rising, account balance in your portfolio? Or do you have more than you need, with several sources of guaranteed income and/or enough socked away that you'll never outspend your projected lifespan?
When asked why people spend the way they do once they've retired, the answers always vary widely. Depending on where they are, where they've been, and what their goals are, the reasons behind people's spending are most often very personal in nature.
In this week's episode of Managing Your Financial Future, host and moderator Johnny Dean discusses this all-encompassing topic with "Professor" Rick Plum, CFP®. If you wish you'd saved more, or if you fear running out of money, you will not want to miss today's podcast!
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Mar 16, 2021
Your Spouse Dies - What Do You Do Now?
All marriages end in one of two ways: divorce or death. If you live long enough with someone, eventually one of you will mourn the other. And whether a spouse's passing comes as a surprise or not, there will always be a list of tasks that the survivor must deal with at some point. But what are those tasks, and when do you have to perform them?
Good questions. And while everyone's situation is unique, there are a few things that most everyone who is in that situation should be sure to get done. On this week's episode of Managing Your Financial Future, podcast host Johnny Dean speaks with "Professor" Rick Plum, CFP® about what to do when your spouse passes away -- what you might consider taking care of first, and what can maybe wait until later. Tune in to find out more!
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Mar 9, 2021
The Unintended Consequences of Social Security's Survivor Benefits
You may have heard that Social Security provides a "survivor benefit," which allows a surviving spouse to continue to receive their deceased spouse's benefits. The original intention (back in 1940) was to ensure that widows would not be left without a Social Security payment.
Today, though, with many dual-working households (and thus two Social Security benefits), those same survivor benefit rules may actually cause the survivor to take a cut in benefits -- in some cases, by nearly 50%.
How is that possible? And, even more importantly, how can you strategize to keep this from happening? Join show host/podcast moderator Johnny Dean and his guest, "Professor" Rick Plum, CFP®, as they discuss ways to potentially mitigate what has turned out to be an unintended consequence of Social Security's survivor benefits on this week's episode of *Managing Your Financial Future.*
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Mar 2, 2021
The 3 Biggest Risks Facing Your Portfolio Today
No matter how much you save throughout your life, or how diligently you work to maintain your level of wealth, you can never really be sure that the money you’ve accumulated -- the money you need to live on throughout your retirement -- will last as long as you do. That thought can be more than a little unsettling.
The risks to your portfolio are many, and not all of them happen later in life. But with careful planning, you may be able to mitigate those risks and perhaps take some of the worry away as well.
In this episode of *Managing Your Financial Future, *show host Johnny Dean speaks with “Professor” Rick Plum, CFP® about what Rick believes are the three biggest risks facing your portfolio, and what you may potentially be able to do about them. Tune in to the podcast to find out more!
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Feb 9, 2021
Is It Time to Re-Think the "4-Percent Rule?"
One of the old “rules of thumb” that’s been around since the early 1990s is the idea that your portfolio has a better chance of surviving 30 years if you withdraw no more than 4 percent of the total each year. Some have said it should be even lower than that, perhaps no more than 2 percent.
But whether the amount is 4 percent, 2 percent, or some other number, the more important issue should be your actual withdrawal strategy. Are you forced to sell stocks when they're down in order to meet your spending needs? If so, you're asking for trouble.
In this week's episode of *Managing Your Financial Future,* show host Johnny Dean speaks with our "Professor" Rick Plum, CFP® to get Rick's take on how the "4 percent rule" is really just a guideline, and why having a sound withdrawal strategy may be your bigger key to success.
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Feb 2, 2021
Creating Income When Interest Rates Are Low
It’s a fact that retirees in general dislike spending down their savings. In today’s low interest rate environment, and given declining dividend yields, how should one remove money from a portfolio for income without damaging the portfolio’s integrity and longevity?
There are several possible routes to take, and unfortunately, many people may be tempted to reach for yield with either low-quality bond purchases or stocks with higher dividend yields. But doing so almost certainly will raise the risk within a portfolio without any guarantee of higher returns.
What’s a potentially better way to take income? Show host Johnny Dean and financial advisor Rick “The Professor” Plum, CFP®, discuss what Rick believes is the way to work towards your income goals without resorting to risky behaviors on this week’s episode of Managing Your Financial Future!
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Jan 26, 2021
Is a Roth Option in Your 401(k) Worth Considering?
When it comes to retirement savings, you have a fair number of choices available to you. One of the more popular options comes in the form of your employer’s 401(k) plan. And these days, a growing number of employers are offering a Roth option to that plan. The question for some people is whether the Roth option with their 401(k) is the right way to go.
Much of that decision revolves around your current, and future, tax situations. In this week’s episode of Managing Your Financial Future, our moderator Johnny Dean speaks with “Professor” Rick Plum, CFP®, about some supposed drawbacks of the Roth 401(k). Do the “cons” really outweigh the “pros” in this case? Get the facts and decide for yourself!
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Jan 19, 2021
How the Pandemic Affected Your Finances
If it seems to you like 2020 was an unusual year, you’re right - in more ways than one! Of particular concern to many people was their financial situation. Whether it was dealing with a job loss or change of employment, working from home, unemployment benefits, stimulus checks, or something else entirely, there’s little question that our finances were impacted in many ways.
As we approach tax season, it’s important to understand how your finances were affected last year, and what repercussions there may be for your own tax situation. In this week’s episode of Managing Your Financial Future, show host Johnny Dean speaks with “Professor” Rick Plum, CFP®, about some pandemic-related conditions that may have a big impact on your money, business, and life.
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Jan 5, 2021
The Triple Tax Benefits of an HSA
If there's one thing most people can agree on when it comes to money, it's probably this: we don't like to pay taxes. If there's a permissible way to avoid a higher tax bill, common sense would tell us that it's wise to consider it.
A Roth IRA, for example, gives us the potential for tax-free distributions when done according to the tax laws. And any growth that may occur within a traditional IRA is tax deferred until distribution.
But what if you could get an up-front tax deduction, as well as tax deferral, AND tax-free distributions? On this week's episode of *Managing Your Financial Future*, our moderator Johnny Dean talks with "Professor" Rick Plum, CFP® about the triple-tax benefits of owning a Health Savings Account.
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Dec 22, 2020
A Better Way to Take Your RMDs?
Required minimum distributions (RMDs) are just a fact of life for most owners of an IRA or retirement plan account. While RMDs are suspended for 2020, under normal circumstances, you typically must begin taking minimum withdrawals from those accounts (in most cases) at age 72.
Given these circumstances, if you're charitably inclined, you may be able to take advantage of a little-known strategy known as a Qualified Charitable Distribution from your IRA, and perhaps get some tax advantages that you otherwise would not have had.
How does it work, and who can potentially use it? Our "Professor" Rick Plum, CFP®, has the details for you as he speaks with our host and moderator Johnny Dean on this week's episode of *Managing Your Financial Future*!
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Dec 15, 2020
Let's Strategize With Your IRA
IRAs, whether Traditional or Roth, have unique characteristics. Depending on the type of IRA you have, you may be able to manage your taxes or your income from your IRA by managing the taxes on the withdrawals.
Roth IRA distributions are tax-free when the rules for taking withdrawals are all met. So sometimes the tricky part is getting the money into the Roth IRA in the first place. Do you make a regular contribution to your Roth? Should you convert your Traditional to a Roth? When is it a good idea to do either of these, and when is it not?
Get your IRA strategy questions answered with "Professor" Rick Plum, CFP® as he speaks with host and moderator Johnny Dean on this week's episode of *Managing Your Financial Future*!
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Dec 8, 2020
Dealing With Taxes on Your Social Security Benefits
Taxes are a fact of life for most people. Even your Social Security benefits - for which you had the pleasure of paying taxes to receive - are subject to taxation under certain circumstances. And this can hit you unexpectedly, putting a sizable dent in your benefit income.
What to do about this? First thing is to recognize when and how your Social Security benefits may become taxable to you. This is where planning can play a key role, especially before you begin to take required minimum distributions at age 72.
On this week's episode of *Managing Your Financial Future*, host Johnny Dean and advisor Rick "The Professor" Plum, CFP® discuss the aspects of Social Security taxation, and what you may be able to do to potentially minimize what you owe. Tune in to find out more!
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Dec 1, 2020
Don't Make the Mistake of "Chasing Yield"
If there's one "rule of thumb" that every investor should know, it's that there is a distinct correlation between risk and reward. The greater the potential reward for an investment, the higher the risk. Conversely, lower-risk investments tend to produce lower rates of return.
This is something that many investors often forget -- especially those who are new to the game. If you pay attention only to a particular investment's prior performance without looking at the potential risks involved, you may be in for a really unpleasant surprise down the road.
Purchasing investments based solely on their rate of return is what's known as "chasing yield," and it's a mistake that can and should be avoided. Find out more from host Johnny Dean and our advisor, Rick "The Professor" Plum, CFP® on this week's episode of *Managing Your Financial Future*!
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Nov 17, 2020
Are Cash Value Life Policies Really as Good (or as Bad) as You’ve Heard?
Life insurance appears to be a fairly easy topic to understand. You pay your premiums to the insurance company, and if you die within the specified period of time, your beneficiaries receive the death benefit proceeds of the policy. If you outlive the policy, no death benefit is paid.
But that’s just one element of life insurance. Another type is the often-misunderstood (and sometimes mis-sold) cash value policy -- and here’s where things can get complicated. And here’s where “Professor” Rick Plum, CFP® may be able to help you understand.
Cash value life insurance isn’t for everyone, but for some individuals, it may indeed be exactly what they need to reach their goals. Who should consider cash-value life insurance, and who should stay away? And how do these policies work? Find out on this week’s episode of Managing Your Financial Future!
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Nov 10, 2020
What Are Your Options with a Roth IRA?
Back in 1998, Congress created one of its most popular tax-incentives in recent history – the Roth IRA. Since then, we’ve seen various changes to Roths, including who may contribute, how much they may contribute, and who is allowed to convert pre-tax IRA money into the Roth world.
Because of its popularity, though, the Roth is sometimes improperly used by both investors and by those who give financial advice. While the tax-free withdrawals of a Roth are often attractive, those same tax benefits may also cause someone to put their money into a Roth when there are potentially better options for them.
So how does a Roth IRA work? Who should consider contributing, or maybe converting? And who should probably not? Get the details from “Professor” Rick Plum as he speaks with podcast moderator Johnny Dean on this week’s episode of Managing Your Financial Future.
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Nov 3, 2020
Is There a Solution to the Pension Dilemma?
If you happen to be one of those people with a traditional pension plan, there’s one important piece of information you should know about: unless your spouse elects to sign a waiver that allows otherwise, your pension benefits will be paid out to the both of you in the form of what’s called a “qualified joint and survivor annuity.” In other words, you’ll receive a reduced amount during your lifetime, so that your spouse will continue to get at least 50% of that amount if you happen to die first.
But if you both elect instead to receive the higher single-life annuity payment, the payments (while significantly higher) would stop at your death and not continue for the surviving spouse. This can be something of a dilemma for people who would want the higher payments, but are reluctant to lose that income if the pension owner doesn’t outlive the spouse.
There is a potential solution to this problem, though. Could you perhaps have both the larger payments AND provide an income…
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Aug 18, 2020
Never Say Never, and Always Avoid Always!
If you’ve ever read an article about finance or listened to a financial podcast (other than this one), you probably heard someone say that you should “never” buy a certain financial product. Or, conversely, you've heard that “everyone should buy XYZ financial product, no matter who they are!” These are both plainly wrong, on so many levels. The real truth is that everyone’s needs and goals are different; where one financial tool may work very well for a certain individual, it’s likely that exact same product is completely wrong for another person. That’s why it’s important to be financially knowledgeable about what someone is recommending you should have – or shouldn’t have – in your portfolio.Financial products are much like the tools you have in your garage: each has a specific purpose, something it was designed to do. What tools you should have will always depend on what your individual goals are. Find out more about this compelling metaphor on our latest epi…
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Aug 10, 2020
Paying Off your Mortgage: Good idea, or Bad?
A few weeks back, we offered a strategy for people who want to pay off their mortgage in, say, 15 years, but don’t like the idea of making the higher principal payments that are required of a 15-year loan. Following up on that topic, we received an email asking about whether paying off the mortgage is really nothing more than a cash-flow issue. Is it? Or are there other things to consider?On this week’s episode of Managing Your Financial Future, hosts Johnny Dean and Rick “The Professor” Plum, CFP discuss the potential benefits of either paying off your home loan, OR perhaps keeping a mortgage on your house, if only a small one. Tune in to hear some things you might consider that may never have occurred to you before, as well as a neat trick to get funds onto a Roth IRA, even if you’re over the income limit!
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Aug 5, 2020
What's My Stock Allocation in Retirement?
Is it ever a good idea to mix stock market volatility with retirement? Maybe. It really depends on a number of different factors, not the least of which is your withdrawal strategy.But there are other forces at play here as well. Do you need to access the money in your portfolio to help fund your near-term liabilities? Or do you have enough income from other sources so that you may never need to dip into your savings to give you enough money to live on?In order to determine how much you should allocate to stocks in your portfolio, you'd need to consider several things all at once. Get the details on this week's episode of Managing Your Financial Future!See omnystudio.com/policies/listener for privacy information.
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Jul 28, 2020
You’ll Spend Less in Retirement Than You Think
Retirement income calculators are everywhere online. What’s more, they’re fairly simple in nature: plug in some current income and savings, expected rate of return, an inflation factor, and eventually it’ll spit back a number that you should aim to have in your portfolio that’s supposed to give you the income you need. The trouble is - they’re often way off the mark.They may tell you that if you need, say, $100,000 of income to retire at age 65, then that number will rise to perhaps $230,000 or more by the time you’re age 95 because of the inflation factor. But from our experience, this just isn't practical in the real world. As retirement goes on, spending (and income needs) tend to go down over those years - not up.What this means is that you may not need to have as much socked away in your portfolio as those online calculators would suggest. Find out more about retirement spending, retirement income, and the potential value of financial advice with hosts Johnny D…
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Jul 21, 2020
RMD Rules Have Changed - Here's Why That's Important
So maybe you retired at age 65, and maybe you set yourself up so that you don't have to think too much about your financial strategy, and then -- boom! You hit age 72, and you have to deal with required minimum distributions (RMDs) from your IRAs. The rules for taking required withdrawals have always been somewhat convoluted, but as of 2020, they've changed quite a bit; and if you inherit an IRA, they're even more complicated. Not only that, but if you miss all or part of your RMD when you were supposed to take one, the penalty is 50% of the missed amount!Knowing what to do and how to do it is important. On this week's episode of Managing Your Financial Future, you'll get the details from Johnny Dean and "Professor" Rick Plum on what's changed for 2020, what has not changed, and why it may be especially important to have guidance from a financial professional when dealing with inherited IRAs. See omnystudio.com/policies/listener for privacy information.
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Jul 14, 2020
Overcoming Interest Rate Drag on Your Portfolio's Rate of Return
You may have heard that a "traditional" balanced portfolio consists of some kind of mix of stocks and bonds: 60/40, 50/50, or something similar. The logic is that having a combination of stocks and bonds in a balanced portfolio acts as a potential buffer against loss with the goal of providing an opportunity for steady growth.But as interest rates have remained near their historic lows over the past decade or so, some investors are finding that those low interest rates are bringing down their overall rate of return. As a result, some in the finance industry are suggesting that it may be a good idea to raise the stock allocation to make up for this.Is doing so a good idea? If not, then what should an investor do? What are the alternatives? Find out more from Johnny Dean and "Professor" Rick Plum on this week's episode of Managing Your Financial Future.See omnystudio.com/policies/listener for privacy information.
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Jul 6, 2020
A College Tuition Tax Credit You Probably Didn't Know About
If you’ve ever looked at how much it costs to attend college, you're likely aware that it doesn’t come cheap. The costs are high, and they seem to go a lot higher every year. When you add up the tuition, fees, housing, along with other miscellaneous costs, even a “low-cost" local university can send you into years of financed debt. So what are your options?It’s hard to do anything about these expenses by themselves, which means that unless you receive some kind of scholarship, you’ll either have to pay them in full, or hope the school administrators give you a break. But there’s a little-known way that you may be able to recoup some of those costs, thanks to the federal government’s American Opportunity Tax Credit.You may not have heard of it, but it’s available to you if you qualify, and it just may allow you to get back some of that tuition you’re paying. Find out more details from hosts Johnny Dean and “Professor” Rick Plum, CFP on this week’s ep…
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Jun 30, 2020
Let's Manage Your Taxes -- While There's Time
We'll say it right up front: taxes are NOT fun. Nobody likes to think about them, much less actually do them every year. For most, it's a matter of either turning them over to a professional and letting them deal with it, or trudging through it alone and hope you don't miss anything important.But while they're not fun to think about, they're also a necessary evil. This is why it's really important to give your tax situation some thought during the actual tax year, when you may be able to do something about them, rather than waiting until it's too late. The middle of the year may be the perfect time to do some tax evaluation, because doing so could potentially save you some real money when it comes time to file next year. Hosts Johnny Dean and "Professor" Rick Plum, CFP® talk about ways you can manage your taxes right now, and discuss a certain internet claim about Social Security that needs some de-bunking -- all on this week's edition of Managing Your Financial Future!See omny…
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Jun 2, 2020
New (Temporary) RMD Rules Offer Potential Planning Opportunities
The COVID-19 outbreak has brought with it several changes for people who are facing deadlines, including filing federal and state income taxes. Another big one has to do with Required Minimum Distributions (RMDs) for 2020 – and maybe for 2019 as well.When the SECURE Act passed at the end of 2019, it changed the age at which IRA owners must begin taking RMDs, from 70 ½ to age 72. Several weeks later, in response to the pandemic, Congress made changes again to the RMD rules through the CARES Act, allowing for more flexibility and the potential to skip the distribution for 2020.In the week’s episode of Managing Your Financial Future, hosts Johnny Dean and “Professor” Rick Plum, CFP explain the new rules of both RMDs and withdrawals from company-sponsored plans like a 401(k). Who can do what, where and when? Tune in, and get the latest!See omnystudio.com/policies/listener for privacy information.
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May 26, 2020
A Mortgage Payment Strategy You've Never Heard Before
When taking out a mortgage, people often wonder if it's better to have a 15-year loan instead of a 30-year loan. They think of all the interest payments they'll save by shortening the loan period, and the fact that the home would be owned free and clear in half the time.Of course, they have to be able to afford the higher payments of a 15-year loan, which for some people is a deal-breaker. But there may be a way for you to take the 30-year loan option and still be free of mortgage payments in 15 years. On today's podcast, we talk about a strategy to do exactly that.We'll also give you an explanation of the $1,200 stimulus check, dispelling common rumors that it will have to be paid back next year, and answer an email about paying cash for a home versus having a mortgage and investing the difference. Join hosts Johnny Dean and Rick "The Professor" Plum, CFP® for this week's edition of Managing Your Financial Future!See omnystudio.com/policies/listener for privacy information.
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May 19, 2020
Maintaining Your Confidence in Retirement
With everything that's been going on these days in the stock market, the economy -- the uncertainty of it all -- you might think that the confidence of those who are nearing retirement, or who are already retired, would be shaken more than a little bit. But that's not entirely true.The Employee Benefit Research Institute (EBRI) conducted their 30th annual Retirement confidence Survey back in January, and again at the end of March - two very different times. And they found that while overall confidence did go down somewhat, the decline was almost negligible. Why would that be?In this week's episode of Managing Your Financial Future, hosts Johnny Dean and Rick "The Professor" Plum, CFP® talk about reasons why those who have a strategy tend to be less irrational and less afraid of bad market and economic conditions. They also answer more of your emails, including one about using IRA money to purchase a home.See omnystudio.com/policies/listener for privacy information.
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May 12, 2020
Why Own Bonds in This Low Interest Rate Environment?
The standard, cookie-cutter portfolio often consists of just three main assets: stocks, bonds and cash. One may argue that this is not enough diversification, but that discussion aside, some investors seem to find themselves these days replacing some of their "riskier" stock portfolio with the relative safety of US Government bonds. But interest rates are at historic lows, and the reward for owning bonds is minimal, at best. Are people really satisfied with a 10-year rate of return that's currently paying less than 1 percent annually? Maybe: but there may also be some bond alternatives available to you that pay a bit more than that. What are these bond alternatives, and how do you know if their potentially right for you? Listen to this week's edition of Managing Your Financial Future with Rick "the Professor" Plum and Johnny Dean to learn about ways you may be able to squeeze a little more juice from the orange. Also: a few more of your emails are answered!See omnystudio.…
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May 5, 2020
Don't Neglect the Ordinary Things
With everything we have going on in our lives right now, with all the new things we have to deal with, it's important to keep in mind that ordinary events still happen during extraordinary times. Births, deaths, marriages, divorces, family events -- things both in and out of your control -- continue. Part of the essence of financial planning has to do with making sure that both expected and unexpected events are properly dealt with. This should be the goal of every financial advisor -- to minimize the surprises that inevitably crop up during your lifetime. Yes, extraordinary events do happen, but if you're ready for them, if you've prepared to deal with them, then your advisor has done their job.On this week's edition of Managing Your Financial Future, host Johnny Dean and co-host Rick "The Professor" Plum talk about the importance of remembering to take care of the ordinary things, because life at some point will return to normal -- even if it's a "new" normal. They also an…
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Apr 28, 2020
Answering the Everyday Financial Questions
Stock markets are volatile, people are hunkered down in their homes, and life as we know has been put on pause, at least for a while. In spite of that, though, all of the regular financial issues still exist, pandemic or not. And today we're answering those emails that have come in from you, our loyal listeners, over the past few weeks.The issues at hand: taking distributions from your IRAs even without RMD's, fleeing the stock market out of fear, and the up-front bonuses that insurance companies often offer to people who are considering buying annuities. Questions, answers, and commentary along the way in this week's edition of Lucia Capital Group's worldwide podcast, Managing Your Financial Future.See omnystudio.com/policies/listener for privacy information.
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Apr 21, 2020
The Best Opportunity to Get Your Financial House in Order
During normal times, it's easy to put our financial lives on autopilot. Our 401(k) contributions happen without us having to do anything, many of our bills are paid with auto pay, and once we're set up with the proper amount of life insurance, health insurance, and maybe long-term care insurance, we tend to resort to a "set-it-and-forget-it" mode. There are times, though, when we need to review what we have and make sure that it's all still aligned with our goals. And since our goals can change as life changes, it's likely that you need to make some adjustments to certain assets. This pandemic lockdown, which has given many of us more down-time than we ever have before, may be the best opportunity you've had in years to do just that. Of course, needing to do it, and actually doing it, are two different things. On this week's episode of Managing Your Financial Future, we talk about the tools available to you that can make getting your financial house in order a lot less st…
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Apr 14, 2020
Why the SECURE Act Is So Important to You - with Janean Stripe
Between the CARES Act and the SECURE Act, both of which have been enacted, 2020 has turned out (so far) to be a year of change and uncertainty. The SECURE Act was passed in December of 2019, aiming to make retirement saving easier for individuals, increasing access to tax-advantaged accounts, and preventing older Americans from outliving their assets.Certain provisions of the SECURE Act have direct implications for people who are already retired and/or who have reached required minimum distribution age. By taking advantage of what the Act allows you to do, you may be able to save both time and taxes. You simply need to know what to do.On this week's Managing Your Financial Future podcast, host Johnny Dean talks with long-time Lucia Capital Group advisor Janean Stripe, CFP® about the important provisions of the SECURE Act that may have the biggest impact on you.See omnystudio.com/policies/listener for privacy information.
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Apr 7, 2020
Does a Bear Market Change Your Investing Style?
It's a fairly well-known and well-accepted fact within the investment world that market timing - attempting to get in or out of equities on the highs or lows - doesn't work. Most investing novices (and even veterans) who trade on daily trends will lose money, and some will lose all of their money. The stock market is simply too unpredictable.But that doesn't mean that when market conditions change you can't or shouldn't make some adjustments. You can still stick with your long-term goals while making certain short-term changes when big events take place (like the end of a bull market). In fact, that may be advisable in certain circumstances.What kind of an adjustment should you make, if it's indeed warranted by your individual situation? On this week's episode of Managing Your Financial Future, our "Professor" Rick Plum and host Johnny Dean explore the notion of how a bear market may change your investing style, and why having a strategy is crucial for someone who may have ju…
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Apr 1, 2020
Talking Lifetime Income with Chris Lloyd
One of the most potentially useful tools a financial planner has is the ability to create some form of lifetime income for those who need it. In much the same way that a company could provide a pension to its employees, so may an advisor offer “pensionized” income as a way to provide guaranteed lifetime income to someone who might otherwise have none. This week’s episode of Managing Your Financial Future features one of our favorite guests, Chris Lloyd, CFP, who has some useful insight into how lifetime income works, and how to tell if it may be right for you. See omnystudio.com/policies/listener for privacy information.
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Mar 24, 2020
From Bull Market to Bear Market in a Flash
So maybe you looked at your 401(k) balance as recently as mid-February, and then decided you'd finally enough saved up to retire. You put your notice in at work, everyone wished you well, and then...And then. From bull market to bear market in a flash, without warning. What have you done? Can you really afford to retire now? Good question.In this week's podcast, Johnny Dean and Professor Rick Plum talk about the importance of having a strategy, and how defending your portfolio against the inevitable volatility and market downturns well ahead of time can potentially make a huge difference between retiring when you want to, and having to postpone your retirement indefinitely. See omnystudio.com/policies/listener for privacy information.
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Mar 17, 2020
Keeping Your Cool When the Markets Drop
So the long bull market finally came to an end. The drop in equity values was quick, sudden, but not unexpected. The markets simply did what they've always done, and while we never knew the exact date it would happen, we knew it was inevitable. And because we know it's inevitable but cannot predict when it will happen, we have a strategy that anticipates this kind of volatility and aims to have you prepared to weather the storm. So while no strategy is infallible, it's always a good idea to have a plan, a road map, for what you should do when you're faced with a down market.On this week's episode of Managing Your Financial Future, Johnny Dean and "Professor" Rick Plum talk about the importance of being prepared, and how just a little bit of strategizing may go a long way.See omnystudio.com/policies/listener for privacy information.
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Feb 26, 2020
Making Your Social Security Decisions Easier
Many people who aren't old enough to receive their benefits yet don't give much thought to Social Security. They figure it will be there for them in some form or another when they retire, but as to when they should begin taking it, well, that's not something they keep on their mental front-burner. It's often not until they approach or reach retirement that they give it any serious consideration.But when you should take your benefits, and which benefits you should take, is an important decision. The trouble is that you're presented with a confusing array of choices, and there's no shortage of conflicting advice that tells you to always do this, or never do that. No wonder people don't like to think about it.On this week's episode of Managing Your Financial Future, we try to take some of that worry and confusion out of the picture. Even if you're not yet taking your benefits, it's a good idea to know the basics so that you're prepared when your decision time finally arrives.See omnystu…
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Feb 18, 2020
IRA Withdrawals: Take Them Now, or Later?
When it comes to finance, conflicting advice is everywhere. This is especially true when people have questions about when they should start taking money from their traditional IRAs: Should I start early, or wait until I'm required to take the money out? Is my withdrawal going to be taxed? Does an IRA withdrawal affect my Social Security, or change the cost of Medicare Part B and D? Very few of these (and other) questions are ever answered with any consistency online.Yet they're important issues. How are you supposed to make an informed decision if the advice you're getting from one source is telling you to do the opposite of what someone else told you to do? Knowledge is power. Listen to this week's episode of Managing Your Financial Future and we'll help to sort it all out for you.See omnystudio.com/policies/listener for privacy information.
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Feb 11, 2020
The 3 Questions That Every Confident Investor Should Ask
The current bull market is 11 years old as of March, 2020. This seems to have given more than a few investors the mistaken idea that stocks will continue to climb forever. Whenever markets are flying high, or (on the other side) when they’re sinking into oblivion, people tend to overreact and do something that they later on wished they hadn’t - often times, something irreversible. If you’re about to make a risky money move, either out of fear or jubilation, there are three questions you should ask yourself first; three questions that every investor who's thinking of straying from their long-term plan should consider. What are those questions? Find out on this week's episode of Managing Your Financial Future.See omnystudio.com/policies/listener for privacy information.
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Feb 4, 2020
How the SECURE Act Affects You
The SECURE Act, passed by Congress at the end of 2019 and effective on January 1, 2020, provides several reforms to 401(k) accounts, IRAs, college savings accounts, and more. A couple of long-standing rules, including the age at which most people must begin taking their required minimum distributions, were amended. These changes created both opportunities and obstacles for people who are making plans for retirement, as well as for those with legacy plans for heirs.What do you need to know? What important changes were made that could directly affect you, your spouse, and your ultimate heirs? Find out on this week's episode of Managing Your Financial Future.See omnystudio.com/policies/listener for privacy information.
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Jan 28, 2020
A Tax Strategy You Never Knew Existed
A few episodes back, we talked about the benefits of charitable giving for both the recipient of the gift and the giver. The one who receives the gift gets the benefit of the gift itself. The one who gives the gift may be entitled to (among other things) a tax benefit for their generosity. Some people, though, for a variety of reasons, aren't able to deduct what they give to charity -- at least not directly. How can someone who doesn't qualify for a charitable tax deduction potentially receive a "de facto" deduction for their donations anyway? And how can this strategy potentially limit other taxes they may have otherwise paid?Find out on this week's episode of Managing Your Financial Future.See omnystudio.com/policies/listener for privacy information.
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Jan 21, 2020
Killing Your Fear of Running Out of Money
Fear does strange things to people. It can motivate us to take immediate action when a threat is imminent, or it can cause us to retreat, cover up the issue, and hope it will go away. Retirees have many financial concerns. But their biggest one -- the one that can be connected to all of the others -- is running out of money. This fear often causes them to either be frugal to a point beyond reason, or to ignore their finances completely and just pray it all works out.Neither option is ideal. What if we told you that just by using a few simple planning techniques, you may be able to lose those fears for good? You may have a lot less to fear in retirement. Find out more on this week's episode of Managing Your Financial Future.See omnystudio.com/policies/listener for privacy information.
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Jan 9, 2020
Helping Yourself Through Charitable Giving
Most people at some time or another want to be charitable. Part of human nature tells us we should give to those in need -- that we have a kind of social obligation to allow others to have something that they could otherwise only dream of. This is why being charitable often gives us a nice, warm feeling.That's the emotional side of giving. On the practical side, there can be financial rewards and incentives that go along with it too; tax breaks, in particular. But who gets those tax breaks? Can anyone who donates money write off that donation? There's a gift tax - but who, if anyone, pays it? Are there ways to give later but get the tax breaks now?All good questions. Get the answers on this week's episode of Managing Your Financial Future.See omnystudio.com/policies/listener for privacy information.
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Jan 8, 2020
How To Manage the Scare of Long-Term Care
Many people know that long-term care costs are expensive. In spite of that, they're often reluctant to buy an insurance policy to cover those costs because they don't want to pay for something that they may never need to use. After all, not everyone ends up in a nursing home or care facility.But what if you could both insure against those costs AND retain ownership of your premiums so that you or your heirs can have that money if you never need long-term care? Is that even possible? Yes. Rick "The Professor" Plum, CFP®, and Johnny Dean, along with Ray Lucia Jr. and Joe Lucia, talk about how "Linked Benefit" plans may be the wave of the future on this week's episode of Managing Your Financial Future.See omnystudio.com/policies/listener for privacy information.
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Dec 17, 2019
Controlling Your Tax Bill - It's Easier Than You Think
Did you know that the location of your assets - 401(k), IRA, personal account, Roth - is a big determinant of your ultimate tax bill? By simply locating your assets in the proper account(s), you may be able to drastically reduce your tax bill. Find out how with Rick "The Professor" Plum, CFP®, and Johnny Dean, along with Ray Lucia Jr. and Joe Lucia, on this week's episode of Managing Your Financial Future.See omnystudio.com/policies/listener for privacy information.
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Dec 9, 2019
The Myth of the "Retirement Savings Crisis"
You may have heard or read that Americans aren't saving enough for their retirement years. If so, there's a good chance that the phrase "retirement crisis" was part of the story. It's easy to scare people into reading an article online, but while everyone could probably stand to save more then they are, is there really a retirement crisis in America? Maybe not.Rick "The Professor" Plum, CFP®, and Johnny Dean, along with Ray Lucia Jr. and Joe Lucia, talk about this issue and why the doomsday headlines could very well be wrong, on this week's episode of Managing Your Financial Future.See omnystudio.com/policies/listener for privacy information.
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Dec 5, 2019
The Three Biggest Risks to Your Nest Egg
You work hard for your money. You save, you plan, you make contingent plans, you save some more, and yet you can never really be sure that your savings will last as long as you do. Your portfolio faces a number of different risks, and not all of them happen after you retire. We've narrowed those risks down to the three most basic - the three you really need to plan for.Find out what those risks are, and how you may be able to avoid them through proper planning, on today's Managing Your Financial Future podcast featuring Rick "The Professor" Plum, CFP®, and Johnny Dean, along with Ray Lucia Jr. and Joe Lucia.See omnystudio.com/policies/listener for privacy information.
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Dec 5, 2019
The Unintended Consequence of Social Security
Social Security has provisions for a survivor benefit, which allows a surviving spouse to continue receiving their deceased spouse's Social Security benefits. It was put in place in 1940 to ensure that widows would not suffer a cut in benefits. Ironically, in today's world, those same survivor benefit rules may cause just that - a actual cut in pay to the survivor. How is that possible?Find out. Join show hosts Rick "The Professor" Plum, CFP®, and Johnny Dean, along with Ray Lucia Jr. and Joe Lucia, for the inaugural episode of Managing Your Financial Future. See omnystudio.com/policies/listener for privacy information.
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