Phil's Tax Hacks

When you complete a crossword puzzle, every letter and word needs to be right in order to achieve success. Similarly, a financial plan has a lot of intersecting parts that need to be aligned in order to achieve your goals. Are you ready to play? Read more and get additional financial resources here: https://philstaxhacks.com/podcast/ep-38-playing-the-financial-crossword-puzzle/ Today's show schedule: 0:45 - Financial planning is a lot like doing a crossword puzzle. 2:27 - Puzzle line #1: Determining how much income we need in retirement. 6:17 - Puzzle line #2: Determining the proper amount of risk. 10:33 - Puzzle line #3: Should you have life insurance? 13:42 - Puzzle line #4: Addressing long-term care expenses. 16:35 - Puzzle line #5: Taxes won’t stay the same as right now in the long-term. 19:32 - Puzzle line #6: How much can you realistically withdraw from savings? 21:02 - Mailbag: Selling the farm and about to retire. What should you do with the money?

As you try to make the best decisions, you may get a lot of bad advice--even from people with good intentions. How do you know who to listen to? Whose advice is bad and whose is good? We'll look at four common people we turn to and explain why you should be careful. Read more and get additional resources here: https://philstaxhacks.com/podcast/ep-37-best-intentions-but-bad-advice/ Today's show schedule: 3:15 - Are you getting some bad advice from well-meaning family members? 7:39 - Are you afraid of using new technology? 11:59 - What are CPAs supposed to give you advice about? 17:18 - What should you do with financial information in the media? 20:08 - Should you listen to everything Dave Ramsey says?

What financial truths can you depend on to always be true? While some financial statements may be more opinion than fact, these financial truths are ones you’ll want to hang on to. Read more and get additional resources here: https://philstaxhacks.com/podcast/ep-36-financial-truths-you-can-depend-on/ Today's rundown: 0:50 - Are Americans taking out their retirement funds too early? 4:10 - What are absolute truths in the financial realm? 4:56 - Is watching too much news or TV bad for your financial plan? 6:23 - Emotions can impact our financial decisions. 9:15 - The market will move up and down. 12:46 - We are not as risk tolerant as we think we are. 17:47 - There is no magic answer. 20:21 - Mailbag: When should I find a new financial advisor?

Due to coronavirus, the CARES Act has outlined several provisions to relieve the financial burden on the economy right now. If you are allowed to take money out of your retirement accounts without penalty, should you? Read more and get additional resources here: https://philstaxhacks.com/podcast/ep-35-should-you-take-money-out-of-retirement-accounts-while-its-penalty-free/ Today's rundown: 2:03 - What should you do about tapping into retirement accounts? 4:50 - Are these provisions in the CARES Act helpful? 6:54 - Could this hurt your retirement? 7:56 - What happens when someone is furloughed? 10:26 - In “normal” times, does it work when people take out money from their retirement or 401(k) as a loan? 13:46 - What is the current state of the market and economy? 15:24 - When is the new tax deadline for 2020? 17:16 - Mailbag: If I sell rental properties, how should I invest the equity money once I sell them?

Retirement planning and financial goals can be tricky to navigate. Instead of getting lost and going down the wrong path, here’s what to look out for and how to head in the right direction in the financial world. Read more and get additional resources here: https://philstaxhacks.com/podcast/ep-34-how-to-avoid-getting-lost-in-the-financial-world/ Today's rundown: 2:31 - In the News: What’s happening with COVID-19? 8:09 - What are the reasons people get lost in the financial world? 8:23 - Bad tools can make finances difficult to understand. 9:57 - Bad directions and bad advice can steer you in the wrong direction. 11:32 - Not paying attention can get you in trouble. 13:46 - What can you do to get back on track? 15:04 - Do you know where you want to go with retirement? 19:19 - Mailbag: How much long-term coverage is recommended?

How is the coronavirus impacting the market, your financial plan, and your taxes? Find out in today’s coronavirus update. Read more and get additional resources here: https://philstaxhacks.com/podcast/ep-33-coronavirus-update-cares-act-and-taxes/ Today's rundown: 1:50 - Coronavirus Update: What is the market doing now? 4:44 - What is our new reality? 8:40 - How have Phil’s clients been? 10:16 - What will the stimulus package do for those on Social Security? 13:44 - With taxes pushed back, should you still pay quarterly? 20:28 - Adjustments may need to be made.

Depending on how far away you are from retirement, you may have a different thing to focus on with your retirement plan. What should you be doing right now and how has the current market volatility impacted that? Read more and get additional resources here: https://philstaxhacks.com/podcast/ep-32-preparing-…up-to-retirement/ Today's rundown: 1:40- Mailbag: Is it wise to own gold? 5:06- Mailbag: Should you move everything to cash now? 8:07- What should you look at fifteen years before retirement? 9:37- Is right now an opportunity to invest for some? 12:01- Ten years before retirement, what do you visualize with retirement? 13:35- Are you feeling like the coronavirus will set you back a few years? 16:12- What should you do five years before retiring? 17:20- Do you have a strategic plan? 19:06- What do you do when you retire?

Do you feel like your world just changed overnight with the coronavirus? How about your portfolio and your financial situation? Today we'll discuss the fallout in the market and what it means to retirement planning. Read more and get additional resources: https://philstaxhacks.com/podcast/ep-31-coronavirus-market-update/ Today's rundown: 3:54- The market has dropped, but will it bounce back fast? 6:45- What are Phil’s clients concerned about 7:50- What strategies does Phil recommend implementing? 9:17- Are bonds a safer bet right now? 10:54- Every situation is different, so how do you position yourself for this? 12:55- Did the oil trade war carry as much weight as the coronavirus in the market? 15:20- What can we do now?

How close are you to being ready to retire? Are your plans in place to act accordingly? Let’s talk about the different levels of desire to retire and what each means for planning Read more and get additional resources here: https://philstaxhacks.com/podcast/ep-30-whats-your-desire-to-retire/ Today's rundown: 0:41 - Phil shares what’s been keeping him busy lately at work. 2:07 - Where do you stand in terms of retirement readiness? 2:18 - Level 1: I don’t see myself retiring; I love what I do. 4:58 - Level 2: Maybe I could retire, but the pay at work is good. 5:59 - Level 3: I’d like to retire soon, but I’m not sure when I can. 7:31 - Level 4: Retirement is really starting to look good. 8:07 - Level 5: I have to retire now. 11:54 - Mailbag: Rolled over a 401k to an advisor who put it all into American funds. Is this okay or should I invest it somewhere else? 14:45 - Getting to Know You: What’s the worst punishment Phil got as a kid?

While it may seem like your financial decisions are all about the numbers, emotions play a big part in what you do with your money! How much should you let your emotions decide and when should you turn more towards logic? We’ll discuss that on this episode. Read more on this topic and get additional resources here: https://philstaxhacks.com/podcast/ep-29-considering-your-emotions-when-making-financial-decisions/ Today's show rundown: 0:54 - Phil shares his latest big purchase. 2:58 - In the News: Wells Fargo CEO banned from banking industry. 5:48 - What emotions drive people to make financial decisions? 7:16 - What mistakes do people make with emotional decisions? 8:34 - Are there times to let your emotions factor in? 11:28 - Understanding what taxes look like long-term may mean addressing some emotional vs. logical decisions. 13:44 - Mailbag: Any problems with selling company stock in order to buy land?

Do you have financial and retirement goals set? How do you know if those goals are doable or simply unrealistic? Let’s talk about goal-setting and how we approach it with our clients to make sure they stay on track for retirement. Check out the show notes and get additional resources here: https://philstaxhacks.com/podcast/ep-28-how-to-set-realistic-financial-retirement-goals/ Today's show rundown: 1:30 - In the News: Student loan debt is at $1.6 trillion. 6:43 - How do you set financial and retirement goals? 7:06 - What general financial rules should you follow? 8:28 - How do you narrow down the specific goals for retirement? 10:03 - What are unrealistic goals people make in retirement? 11:47 - How do you get the most out of investments without losing anything? 14:04 - How can you know if a financial goal is realistic and achievable? 16:45 - Mailbag: Should you work with one financial advisor or work with multiple?

Chances are you’ve heard a lot more people talking about Roth conversions over the past couple of years. That’s because tax rates are low and many individuals are choosing to pay now rather than waiting when they might be much higher. Is this a strategy that might work for you? Let’s try to cover everything you need to know before converting. Show notes and additional resources: https://philstaxhacks.com/podcast/ep-27-understanding-the-pros-cons-of-roth-conversions/ Today's rundown: 1:49 – In the News: A study found CEOs and CFOs are pessimistic about the economy while consumers remain optimistic in 2020. 3:54 – The Coronavirus could be the trigger for the economy to drop. 6:02 – We’re talking about Roth conversions today because that’s been a hot topic with the current state of taxes. 7:08 – Let’s begin with what is a Roth conversion. 9:07 – Is this especially helpful if you’re a high-income earner? 10:02 – The assumption is you’ll be in a lower tax bracket in retirement but that’s not always the case. 10:56 – The common mistakes that Phil sees clients make with conversions. 12:37 – With the SECURE Act eliminating the Strech IRA, will this strategy become more popular? 14:55 – Is there a type of person that might not benefit from a Roth conversion? 16:15 – Are there ages that Roths make sense or is that too generalized? 17:50 – Cash Connection email question: I just looked at my Social Security breakdown and I’m blown away by how much more I’ll get at 70. I’m inclined to wait until then to start my Social Security even though I’m planning to retire at 67. What do you think? 19:50 – Getting to Know Phil: Are you native Michigander? Where did you grow up?

Financial advisors come in many different forms with varying degrees of experience, but every advisor you choose to work with should have a set of traits that will give your retirement plan the best chance of success. We’re going to take a look at five you should make sure your advisor or future advisor possess. Show notes and additional resources: https://philstaxhacks.com/podcast/ep-26-traits-your-advisor-should-have/ Today's rundown: 1:07 – In the News: A banana taped to the wall was sold for $120,000. Phil shares his thoughts on the purchase. 1:45 – Let’s break down the cost of this artwork versus what it was sold for before it was eaten. 3:16 – Time to talk about traits an advisor needs to have. Be on the lookout for these things with your current advisor or someone you’re considering working with. 4:04 – First trait: Areas of expertise – there are many stages of planning and you want someone that meets your needs. 5:43 – There are licenses that are going to determine where an advisor’s expertise is. 7:34 – Second trait: Trustworthy – so how can you determine whether an advisory has this trait? 8:38 – Third trait: Likeability – you want to enjoy the relationship. 10:39 – Fourth trait: Listening ability – an advisor should be meeting your goals and needs rather than pushing specific products. 11:53 – Remember that this is your retirement, not an advisor’s. 12:59 – Final Trait: Problem-solver – is the advisor finding problems you might even know exist and helping you find solutions for your retirement needs? 15:41 – Email Question: Due to a mutual friend, I have a chance to work with an advisor who primarily works with accounts of $5 million or more. I don’t have that much but I’d love to get the advice of a big-time advisor. Do you think this is a good opportunity? 18:12 – Getting to Know Phil: Are you a Valentine’s Day kind of guy?

For a long time most people have targeted 65 for retirement, which is older than most countries, but that might even go higher in the next few years. Those ages are already rising in countries like France and Spain as they move towards 67. Should you expect a later retirement date? And how does that impact planning? That’s what we’ll discuss today. Show notes and additional resources: https://philstaxhacks.com/podcast/ep-25-will-retirement-age-continue-to-rise/ Today's rundown: 1:34 – Betty White turned 98 years old and attributes it to vodka and hot dogs. 2:40 – IRS increased contribution limits. What is Phil’s reaction to the news? 4:23 – Mailbag Question: I could sell the house for $500,000 and I only owe $100,00. I’m 57 and I’m thinking about getting a smaller place and using that cash to retire early. What are your thoughts? 8:07 – Let’s talk about this article in CNBC on retiring age. 8:45 – Countries around the world are already raising retirement age. 10:13 – Is Phil seeing this trend of working longer from his clients? 11:55 – Is there a major planning difference from 65 to 67? 13:28 – It might only seem like two or three years but there’s a bigger compounding effect longterm. 13:53 – Then there’s the Social Security factor to shifting age. 15:30 – Mailbag Question #2: I’d really like to hire an advisor but my husband wants to do it himself. Is it okay to do this without help? 18:40 – Getting to Know Phil: What’s your favorite TV channel?

Do you believe you need to be completely debt free to retire successfully? Or are you comfortable carrying some balances beyond your working years? Having a strategy for managing your debt along with the amount of cash you possess are two key pieces to a successful retirement. Show notes and additional resources: https://philstaxhacks.com/podcast/ep-24-managing-cash-debt-in-retirement/ Today's rundown: 0:42 – It’s that time of the year for brutal weather. 3:01 – We’re talking about cash and debt and how they can get us into a retirement predicament. 3:30 – We all love cash but is too much of it a bad thing? 4:19 – What are the best uses for cash? Phil uses a three bucket structure. 5:57 – With cash you give up growth because inflation. 6:56 – How much cash to you recommend someone having? 8:11 – What about people that are comfortable having a lot of cash? 9:35 – How many months should your emergency fund cover? 12:51 – Do you need to be debt free when you retire? 16:15 – Is debt management a part of the plan when we work with clients? 19:58 – Mailbag Question: I have about $50K in cash value in an old life insurance policy. I don’t really need the insurance anymore. Should I cash it out and invest the money some place else?

How closely do you pay attention to the sources that provide you with information about investing? Just like other outlets of media, financial news is not immune from bias. Let’s discuss the landscape today and how you can protect yourself from being misled by incorrect information. Show notes and additional resources: https://philstaxhacks.com/podcast/ep-23-beware-of-bias-in-financial-media/ Today's rundown: 1:17 – We’re well into 2020 at this point but make sure you’re writing out the full year to prevent scams. 1:58 – The Stretch IRA has been eliminated as part of the SECURE Act. How important is this? 6:30 – Let’s talk about our main topic: financial media bias. 7:19 – Today it seems like you have to look at multiple sources of information to get the complete picture. 8:40 – Financial news is no exception. There often seems to be a motive or an angle to a headline. 9:32 – Be aware of paid placement material. 11:42 – Every advisor has their own opinion and investors should expect that. 12:38 – It also could be good advice but maybe it’s intended from someone else and not applicable to you. 14:24 – Another thing to keep in mind is someone providing the info just might not be up-to-date on a specific product. 18:14 – Mailbag Question: I told myself that once I hit $1 million in my portfolio, I’d move that money to cash. But now that I’m there, I’m wondering if I can get to $1.2 million first. What do you think?

Have you ever heard someone tell you they don’t want to retire? Sometimes they might mean it, but other times it’s just a defense mechanism for the fact that they don’t feel prepared for retirement. Let’s take a look at some of the most common excuses and what they might actually mean. Show Notes and Additional Resources: https://philstaxhacks.com/podcast/ep-22-are-these-excuses-keeping-your-from-retirement/ Today's Rundown: 1:19 – Happy new year! Should be an interesting year. 2:31 – Let’s talk about excuses that may keep us from retiring. 3:49 – Excuse: ‘I love my career.’ 6:08 – Excuse: ‘I would be bored if I retired.’ 11:17 – Excuse: ‘We don’t have enough money to retire.’ 13:29 – Excuse: ‘I don’t have enough confidence in my plan to walk away from work.’ 15:55 – Planning for retirement is like planning a road trip. 19:25 – Mailbag Question: My husband’s military pension has been a very nice benefit but I’ll no longer get a penny of that after he passes away. This was a mistake in retrospect but what can we do moving forward?