Your Money, Your Wealth

Dividend paying stocks: do you understand how they work? Also in YMYW podcast episode 84, Joe Anderson, CFP® and Alan Clopine, CPA answer your biggest financial questions, from how to claim a loss on a Roth IRA to the pros and cons of rolling over an employee retirement plan into an IRA (individual retirement account). Original publish date November 19, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 02:04 "Most [people] don't understand that when the dividend is paid, the stock price falls by that amount." 04:55 "It's not necessarily the best idea to focus solely on dividend paying stocks…with dividend paying stocks you're paying taxes as you go." 06:58 "It's only a matter of time that the dividend stock prices go up because of demand." 11:05 "I have a Roth IRA, open for over ten years now. I have contributed about $15,000 but lost about 80% of it due to some stocks that I invested in. Can I claim this 80% loss in my tax return?" 15:39 "I was recently told by more than one financial advisor that I should roll my employee retirement plan now that I've left the company, into an individual IRA. When I called that company to do just that, I was told by their advisor not to roll it over. He explained that I began investing in 2007/2008 when the market was low. If I were to roll over into an individual IRA today, I would be buying in when market prices are high, thus buying fewer stocks/bonds (whatever prices comprise the plan). He also said, since your plan has averaged a 5.1% gain this year, why would I want to lose that? Can someone speak to this logic for NOT rolling over?" 24:43 "Are profits from trading options (or stocks) in a non-qualified brokerage account subject to the 10.4% FICA tax?" 26:41 My wife and I are both 60 years old. We have taxable investments valued at $900,000, 401k and IRAs valued at $1,200,000, and a Roth valued at $23,000. We would like to retire in about 8 years. A co-worker said he heard that it is possible to pay no income tax in retirement, even on Social Security benefits. With my situation how is that possible?" 32:21 "A lot of people retire at 62 or 64 and are in a very low [tax] bracket, and could be doing Roth conversions all the way until age 70 1/2 and then be in a much better spot and in some cases pay little to no taxes."

Are you prepared for retirement? These 6 questions will help you see if you're ready in YMYW podcast episode 83. Original publish date November 19, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. Have you explored downsizing your living expenses? Do you have a clear end game? Where are you on your debts? Have you "right sized" your mortgage? Have you considered the different types of income sources available to you in retirement? How would continuing to work at your peak earning years impact your quality of life in retirement? Later, Joe Anderson, CFP® and Alan Clopine, CPA discuss what Trump's presidency could mean for your taxes. Plus, strategic tax moves for year-end, including tax-loss harvesting and proper asset allocation. 01:36 "Here's the first question: have you explored downsizing your living expenses?" 04:21 "I would say a lot of individuals need to reduce their living expenses." 05:09 "Do you have a clear game plan? You may have a general sense of how much money you need to retire, but you aren't truly ready to retire until you understand what it means in day to day terms." 05:21 "It's comparing your retirement number to your anticipated monthly expenses, making adjustments as needed and from there it's doing simple mathematics." 10:02 "It's [about] looking at your entire overall situation to make sure that you answer a few different questions to make sure you're doing everything appropriately." 11:00 "There could be some tax reform, there could not be…but we can at least tell you some ideas that Capitol Hill is throwing around and to make sure you're prepared…the thing you can control is how much you pay the IRS." 11:49 "I would say the people who are going to be affected if any of the changes go through is going to be small business owners, corporations and people who have a ton of money." 14:16 "There are few things that won't change, probably – one is the definition of income. Everything is still income whether it's salary, pension, rental income, interest, dividends, lottery income, gambling income, all of that is still income so that's very unlikely to change. The tax rate, however, could change but the fact of how income is being calculated is one thing that'll likely stay the same." 14:40 "Another thing is the 1099 forms which you get if you're an independent contractor. Those will still be very applicable." 16:26 "Reply to every IRS letter unless it says not to – this is common sense and it won't change under Donald Trump." 20:12 "Do not talk to the IRS if they visit you…if they come to your home or business, decline to speak to them and tell them your lawyer will call." 22:53 "If you understate your income by 25% or more – that's substantial understatement – the IRS can go back six years. Keep your tax returns forever." 24:10 "Avoid amending returns; but if you do amend, don't cherry pick…amended returns have a high audit rate, especially they request a refund." 25:46 "Be careful with a big refund. If you're getting a giant refund, the IRS is more likely to look at your tax return." 29:04 "I'm going to give you some quick tips for end of year tax planning, some real simple things you can do." 29:10 "One of them is tax-loss harvesting. What is it? Let's say you had a loss in a certain position, you sell it and buy something similar. Those losses will offset any future gain." 31:23 "Certain asset classes are in favor at certain periods of time in a cycle." 34:07 "If you don't have the right asset location, it's going to be pretty difficult for you to do tax loss harvesting. Asset location is looking at what asset classes you hold in each account (tax-deferred, taxable, tax-free)…so you need to understand the taxation of the assets you hold in each account." 36:06 "It's about being more tax-savvy in your overall scheme of things to make sure you get the best after-tax rate of return."

J. David Stein, host of popular podcast "Money for the Rest of Us" joins the show to talk about, you guessed it, money. Joe Anderson, CFP® and Alan Clopine, CPA interview Stein on the state of the markets after the nomination of President-elect Trump. Original publish date November 12, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. Stein sheds light on failed market forecasts and how this past week demonstrated two points. First, you can't predict future outcomes, and second, you especially can't predict how the markets will react to those outcomes. Joe responds with the importance of ignoring short-term market volatility and instead, focus on your long-term goals when investing. 3:14 "We have two more topics, estate planning and IRAs. One of Trump's proposals is to get rid of estate taxes." 3:30 "Right now under current law if you were to pass away, your beneficiaries would receive your assets with no estate tax if your estate is less than about $5.45 million. So if your estate is $10 million and you're single, well some of that is going to be subject to an estate tax at 40% and some of it will come tax-free." 4:00 "Donald Trump would like to get rid of estate taxes altogether which is a huge saving for families that have a lot of assets, a lot of wealth, but there's a negative to that and I want to explain that." 4:10 "The last time we didn't have an estate tax was 2010, for one year, and we've had the estate tax basically since the Civil Year." 5:00 "Here's what's interesting about estate taxes is because the government doesn't want to tax an estate twice. There's an estate tax and then there's a step-up in basis for the next generation which means that any asset that you hold outside of a retirement account gets a step-up in cost basis to the value at date of death. So you bought a home for $100,000 and now it's worth $1,000,000 and your kids get the home, because it's under the exemption limit, it's as if they bought it for $1,000,000. They turn around and sell it right there and there's no gain or loss. The reason for the step-up is so you don't pay estate taxes and capital gains on the same property. Now if there is no estate tax, there may not be a step-up in basis." 6:20 "Last thing when it comes to estate planning which will affect just about everyone listening is retirement accounts.....right now there is something that's called the Stretch IRA. What that means is if your IRA goes to a non-spouse beneficiary, they have the right to stretch out the tax liability of that account for their lifetime. Once they inherit it, it's going to be taxed at ordinary income rates....right now they have the ability to stretch the tax out over their life. So it's a very favorable tax law for us individuals that inherit retirement accounts." 8:22 "What is probably going to happen, is what some experts say, first quarter next year - first 100 days, is that the [Stretch IRA] is gone." 9:46 Start of interview with J. David Stein 11:00 Joe Anderson: "Given this week, we had a lot of experts on their toes a little bit. Donald Trump is now our President...as Donald Trump was pulling ahead, you was the futures go down 700 points so everyone's thinking, oh man the market is going to crash. The week has been okay. I mean how the heck do we explain that?" 11:25 J. David Stein: "We explain that by saying, you cannot predict these one-off events. I had listeners expressing concern; if Donald Trump gets elected the market is going to crash, should I be pulling my money out? Now this was a month or two ahead of time. My response was, for one-off events you just can't predict what the reaction is going to be. 12:00 J David Stein: "Now what I teach is to adjust one's asset allocation for what I call regime changes. Where the risk of a recession is high, the risk of a 20% type decline in the stock market is high." 12:42: Joe Anderson: "We're emotional creatures and I think that's one of the biggest things from an education perspective. It's that you cannot worry about this short-term volatility. What's the goal for the money? You probably need it for your retirement over the next 10-20-30-40 years. We'll have many more presidents, we'll have many more corrections and we'll have many more crises and everything else." 14:15 J David Stein: "My insurance company had a 50% proposed increase for our health insurance. So that got me thinking, what's going on here? What is driving these dramatic increases in health insurance cost? Turns out, much of it is pharmaceutical." 15:20 Alan Clopine: "What is some of the best advice you would give to someone who is about to retire?" 15:54 J David Stein: "What I tell retirees is to find a source of income outside of investing. Have a lifestyle business or something of interest." 17:00 J David Stein: "One can't even imagine a 40-year retirement, I mean we can't comprehend what that's even like." 19:50 End of interview with J David Stein. Visit moneyfortherest

It's been 30 years since the last tax reform, but President-elect Trump is planning for a change. Joe Anderson, CFP® and Alan Clopine, CPA take a comprehensive look into Trump's proposals in YMYW podcast episode 81 and discuss how his potential tax law changes could affect you. Original publish date November 12, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. Reduce income tax brackets from seven brackets (10-39.6%) to three (12%, 25%, 33%) Increase standard deduction Remove personal exemptions 03:03: "Right now we have 7 [tax brackets] and Trump is proposing to go down to three." 03:10 "A lot of people are predicting that these first 100 days that Trump is in office, we might see a lot of action." 05:30 "[Trump] is combining the 10% and 15% tax bracket to 12%." 05:48 "It all depends on what happens with the standard deduction. They are looking at doubling up the standard deduction. So for lower wage income earners that doubling up of the standard deduction will potentially have less money taxed going into that 12%, where before they might have been taxed a little bit earlier on the 10%." 06:08 "The exact numbers if you're single, you get a standard deduction right now of $6,300 and $12,600 if you're married..." 06:40 "The new numbers being proposed would be a standard deduction of $15,000 if you're single and $30,000 if you're married." 06:50 "However, right now we get an exemption of about $4,050 per person, including dependents. Trump plans to get rid of that." 08:30 "The biggest tax savings will be clearly for those who make a lot of money." 08:34 "LeBron James, he's going to save $15 million in taxes." 10:05 "The last major reform was 1986, Reagan years. That was the tax simplification act." 11:40 "How you get to your taxable income today is after your exclusions and exemptions." 13:00 "[The proposed tax changes] could hurt those with a lot of kids." 15:15 "Let's get into capital gains. If you follow what Trump is saying, capital gains is not going to change except for the net investment income tax on top of capital gains." 15:38 "The net investment income tax is not taxed on ordinary income." 15:45 "The capital gains rate, as well as what's proposed by Trump, is as a married couple, the first $75,000 of taxable income, capital gains are taxed at 0%. There is no tax, they are actually tax free." 16:16 "Then you look at, up to the 25% tax bracket into the 39.6% bracket, you're at 15% and then it's at 20%. Basically the new capital gains law, and Trump's side is the same. If you look at Paul Ryan's it's a little bit different. It's 6.5% and then it goes to 12.5% to 16.5% - those are the three different levels depending on your holding period." 16:47 "One difference with Trump is that the 20% rate will kick in at the highest bracket which he's proposing at $225,000 of taxable income and right now for a married couple that highest rate doesn't happen until about $460,000 of taxable income. So that would actually be a slight increase." 18:15 "Right now is such a key time to be thinking about year-end tax planning because the tax law may change." 23:00 "That's a great way to create tax-free income in retirement is to net your losses with your capital gain income and then you don't pay any tax on that."

Joe Saul-Sehy, host of the top-rated personal finance podcast Stacking Benjamins joins Joe Anderson, CFP® and Big Al Clopine, CPA on Your Money, Your Wealth® podcast episode 80. Saul-Sehy talks about what investors or anyone interested in personal finance can learn from his unorthodox show focused on headlines and impressive guest perspectives. Joe and Big Al wrap up the show answering listeners personal finance questions. Original publish date November 5, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 02:29 - Start of Interview with Joe Saul-Sehy 03:41 - "Our goal is headlines – it's a magazine-style show…we have great discussions about current events, financial planning and making sure people have the type of great advice that's out there." 06:02 - "That's kind of how "Stacking Benjamins" was born – it allowed me to talk about money in a way where we kind of learn through play." 08:05 - "There's all this noise going on – you've got big media outlets with talking heads…everyone is talking about what you need to do now, yet you know most of the time the thing you should do is absolutely nothing. Study after study shows that the thing a great advisor brings to the table is convincing you that holding the line is the perfect thing for you to do." 12:44 - "When I was an advisor, every smart person that was a client of mine could have done my job on their own but they always went to an advisor to look over their shoulder." 15:12 - "I found that the more blunt I got, and the more I challenged people about their thinking when I disagreed with it, the more they wanted to hire me. That's probably who you should be searching for when you're looking for an advisor." 16:00 - End of Interview with Joe Saul-Sehy 19:25 - "What are some examples of a value-added tax?" 21:26 - "I am 60 years old and plan to retire at 67. I have a 403(b), a HSA, and a couple mutual funds, but I keep hearing I should start a Roth IRA. Why would I want to start a Roth on the home stretch?" 24:30 - "If you're in a low tax bracket right now, you might even want to look at Roth conversions relative to your retirement. There a lot of things we'd have to know about you to see if that's a good idea or not." 27:29 - "How much income can I make a year before my Social Security payments reduce?" 30:23 - "Can I apply to have 401(k) funds pay for a home purchase instead of an existing loan?"

Are you making these mistakes that could sabotage your retirement? In episode 79 of the YMYW podcast, learn tips to avoid making costly financial mistakes with your nest egg. Original publish date November 5, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 03:15 - "You've got public pension plans and private pension plans, and sometimes they play by different rules." 06:43 - "The problem with some of these defined benefit plans and why there is $1.7 trillion underfunded is the assumptions are a little off." 09:43 - "The point is, you don't have any control over these defined benefit plans." 12:18 - "Mistake one is failing to plan for medical expenses." 17:00 - "Mistake number four is helping out adult kids." 19:03 - "When it comes to retirement, you have to pull money out of your IRAs and 401(k)s and you pay taxes on that. A lot of people don't realize that. In many cases when you've done a great job saving you're in a higher tax bracket even when you're working because of that required minimum distribution." 22:04 - "[one of] the seven scariest retirement moves…is holding most of your retirement funds in a single company stock." 24:32 - "If you do have company stock and you're heavily weighted there, before you diversify out – just make sure that you understand net unrealized appreciation." 33:11 - "Here's another scary retirement move: thinking you can actually beat the stock market." 36:20 - "No tax diversification - that means you've got all your assets in your retirement accounts…"

Joe Anderson, CFP® and Alan Clopine, CPA discuss some of the 2016 California propositions and how they affect your finances, in episode 78 of the YMYW podcast. Plus, what's the difference between gross income and taxable income? Original publish date October 29, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 07:02 - "Prop 13 is when you buy a home in year number two and your property taxes can only go up 2% regardless of how much the home increases in value." 09:24 - "What is the difference between gross income and taxable income?" 10:49 - "There's something called itemized deductions and exemptions. Itemized deductions would be like a home mortgage, estate taxes, property taxes and things like that." 15:26 - "For those who have the Roth provision in your 401(k) plan – you want to look at your taxable income." 17:40 - "What should I do with a lump sum pension in an IRA?" 23:52 - "I took out a personal loan of $8,000 for debt consolidation purposes with my credit union. I'm simply wondering if this loan will affect my income tax in any way. Do I report the loan on my taxes? Will it make a difference in how much my refund will be?" 25:03 - "Can I obtain a loan on a quitclaim property?"

What is the Social Security spousal benefit? Joe and Big Al explain in episode 77 of the YMYW podcast. Plus, how leveraging your home equity in a reverse mortgage can help you generate retirement income. Original publish date October 29, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 02:57 - "If you're married you have a spousal benefit, or if you were married and divorced and were married to that individual for ten years, you could potentially qualify for that spousal benefit on your ex-spouse as long as you haven't re-married." 05:23 - "If I take the spousal benefit prior to my full retirement age, I would receive a reduction in that benefit. You can take Social Security benefits as early as 62." 08:17 - "When you look at a restricted application, that goes hand in hand with your spousal benefit." 14:19 - "A lot of us are living longer and you've got to think of Social Security as maybe longevity insurance." 17:23 - "The difference between [taking your Social Security] at age 62 versus age 70 is a 76% increase." 23:03 - "[Hillary Clinton] wants to keep the tax brackets that we have right now as is except she wants to add a surtax if your adjusted gross income is over $5 million." 25:31 - "Trump would actually like to reduce our taxes; he wants to take it to three brackets – 12%, 25% and 33%. Right now our lowest bracket is 10% and our highest is 39.6%." 35:57 - "Costs of buying and selling a home only to do it again during retirement might cost you more money."

In episode 76 of the YMYW podcast, Joe Anderson, CFP® and Alan Clopine, CPA answer investors' questions about bond returns, how interest rates affect bond prices, the difference between short term vs. long term bonds, and more. Original publish date October 22, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 00:44 - "Is it sensible to live on my own?" 04:06 - "Will I be penalized for a 401(k) withdrawal?" 04:59 - "I am about to turn 21 and currently in my junior year of college. I have budgeted my income so that I have a portion of it stashed in my savings every month. What sort of investments should I look into to generate more income with the excess income I receive?" 11:36 - "We should stress that we are going to talk taxes and strategies, not politics." 12:12 - "Should I invest in bonds now or after the presumed interest rate hike?" 17:05 - "The shorter term of the bond, the less risk that you're taking, hence less volatility." 18:12 - "What's the advantage of going into a short-term bond versus staying in cash?" 24:20 - "With bonds, there are two sides to this: the price and the coupon rate." 29:40 - "If you have a SIMPLE plan, can you still contribute to an IRA?" 34:16 - "Should I move my 401(k) into a money market account?"

Joe Anderson, CFP® and Alan Clopine, CPA discuss Social Security strategies for couples claiming spousal benefits in episode 75 of the YMYW podcast, as well as strategies for single people to consider. "Big Al" closes the hour discussing the downsides of annuities. Original publish date October 22, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 02:25 - "Many Americans will be living solely off Social Security... people are going to need to play catch-up." 04:50 - "There are new law changes that happened with Social Security last year when it comes to restricted application and file and suspend." 06:24 - "There are two different benefits that you claim from Social Security if you're married: you can claim your own or you can claim the spousal benefit. The spousal benefit represents 50% of your spouse's benefit." 10:10 - "Just a couple of years deferring your Social Security and deferring your overall retirement means added savings and added benefits." 11:10 - "The full retirement age right now is age 66…but you can delay it as late as age 70. Every month you delay Social Security you get an increased benefit." 11:58 - "If you look at us collectively, it makes sense to wait. But if you look at us individually, it's a whole different matter. Even though we try to tell people to wait until they're 70, there are situations when you should take it early. One situation is if you're disabled." 13:38 - "If you push it (your Social Security benefit) out three years, it adds 30% more income." 21:45 - "Which annuity is better for a hands on investor?" 25:25 - "Variable annuities are very expensive…understand that variable annuities have high internal costs…and people are purchasing them for guaranteed income." 29:19 - "You have to look at the present values of those future cash flows to figure out what your internal rate of return is." 30:34 - "In most cases I would not recommend a variable annuity, I would recommend an immediate annuity. An immediate annuity means you're going to give your money to an insurance company and immediately receive income. That's the cleanest way to receive guaranteed income." 37:35 - "When it comes to retirement accounts, one of the things that is often overlooked is taxes."

In YMYW podcast episode 74, Joe Anderson, CFP® and Alan Clopine, CPA answer questions about investing for retirement, covering investment options for 403(b) accounts, tax implications of moving part of your IRA and how to avoid tax penalties when withdrawing from an IRA. Original publish date October 15, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 06:30 - "If you have a 401(k) that has a Roth option, you can put $18,000 (per year) into that Roth 401(k)." 07:51 - "If you have a 401(k) that allows you to put yet more money into the 401(k) after you max out, some plans allow you to put after-tax money into that 401(k)... here's why this could be such a good idea, particularly if you're close to retirement…" 11:11 - "How should I invest my 403(b)?" 14:38 - "Our advice is always to maximize those (employer's retirement) plans." 22:05 - "What are the tax implications of moving a portion of an IRA to open a new IRA with a different firm?" 27:17 - "With a 401(k) by law it's mandatory to withhold 20% in taxes if you do that with the 401(k)." 28:44 - "Taxes don't stop when your paycheck does – once you start tapping that retirement nest egg for your living expenses, there are all kinds of new rules and opportunities." 30:14 - "Will I be penalized for an IRA withdrawal?" 32:08 - "There is no age limit for Roth IRA conversions …so if you take money from your IRA and move it into a Roth IRA, there is no 10% penalty on that conversion. The IRS classifies that as a rollover. There would be a 10% penalty if you're under 59 ½ and you withheld taxes when you did the conversion." 32:36 - "Here's another mistake: don't withhold taxes when you do a conversion – pay the tax the following year in April when you do your taxes. If that tax bill is too high, re-characterize some, part or all of the IRA that you converted back into the IRA."

Most women take their Social Security benefits early causing them to lose out on an increased benefit amount. Joe Anderson, CFP® and Alan Clopine, CPA discuss Social Security claiming strategies so you can get the most out of your benefit in episode 73 of the YMYW podcast. Original publish date October 15, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 10:34 - "According to Investment News, most women claim Social Security early (before full retirement age)." 12:14 - "The answer we'll always give you is to push it [your Social Security benefit] out to age 70 if you have normal life expectancy." 15:39 - "It's especially important for women because women live on average four to five years longer than men. If you can wait and take those benefits later, you'll have a lot more money to work with in retirement." 17:38 - "Social Security benefits are based on your highest 35 years of earnings." 22:30 - "When you put a tax strategy or tax plan into place with your retirement savings, you can stretch those dollars out more than you think." 26:31 - "Worst case is 15% of your Social Security income is 100% tax-free…California does not count Social Security as taxable income." 33:41 - "When you do a Roth IRA conversion… set up a separate Roth IRA." 37:51 - "When someone makes a mistake, they finally get serious about getting advice. The truth is you can save more in taxes than you think."

Your 401(k) plan options probably include at least one target-date fund. Joe Anderson, CFP® and Alan Clopine, CPA discuss this one-step strategy for investing for retirement in episode 72 of the YMYW podcast, then answer listeners' investing questions. Original publish date October 8, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 02:47 - "Unfortunately, a lot of you are not using these target-date funds correctly…first of all, a target-date fund has its own allocation." 07:53 - "There are two expenses in any investment: expense ratios and then the other cost is risk." 11:32 - "Should I withhold my taxes when purchasing a home?" 17:06 - "Will I be taxed if I don't touch the funds in a transferred IRA?" 19:21 - "We now have a monthly standing lunch n' learn; it's called Road to Retirement…it's an introduction to financial planning and the key areas you should look at. We'll go into some specific strategies when it comes to taxes, Social Security, investments." 22:02 - "What are the pros and cons of investing before/after tax dollars into a 401(k)?" 26:34 - "If we were disciplined enough to save those tax savings and invest it, we'd probably come out ahead…but most of us don't do that and we just spend whatever we have." 28:59 - "What should I do with my portion of my ex-husband's IRA?" 32:47 - "I am 51 years old and finally in a job which offers a 401(k) option…should I invest in my 401(k) or pay off my debt?" 35:58 - "Even if I don't have an [employer] match, I still want to save for retirement and I don't want to ignore it. The longer you give that money to compound, the more you're going to have. So the sooner you start saving, the better."

A reverse mortgage gives you the opportunity to tap into your home equity to generate retirement income. Joe Anderson, CFP and Big Al Clopine, CPA discuss whether a reverse mortgage is the right move for you in YMYW podcast episode 71. Original publish date October 8, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 01:02 - "I've got a lot [to explain] about retirement that you need to be aware of, some new tax plan strategies, pros and cons of retiring in your seventies…" 04:44 - "Part of the reason why college is so expensive is because you can borrow money so now colleges are charging more and administrators are paid more." 13:57 - "Have you ever considered how you will use your home equity in retirement? If you're going to stay in your home, will you tap into that?" 18:42 - "Home equity has not always been part of the retirement income discussion." 22:10 - "What happens is either you borrow a lump sum or a payment stream or just a line of credit that you can draw when you need it; so then what happens is you don't actually make payments – the interest that you would have normally paid just keeps accruing and adding to your loan so when your house is sold, whatever your loan is gets paid off by the equity." 24:55 - "How do you use a reverse mortgage properly?" 25:28 - "Here's a way to get cash flow: if you don't have any in your savings, you can get a home equity line on a reverse mortgage and pay for your bills that way…" 28:54 - "If all your money is sitting in traditional retirement accounts, it's 100% taxable. For a lot of you, that's where the majority of your savings are. If there were a way to get control over your taxes, the home equity loan can be a tool if you utilize it with other strategies so you pay less taxes for the rest of your life…there are a lot of ways to reduce taxes in retirement." 32:55 - "With an IRA or individual retirement account, you can buy stocks, bonds, mutual funds and ETFs. With a MyRA (my retirement account) you're buying U.S. treasuries."

Joe Anderson, CFP® & Alan Clopine, CPA answer personal investing questions in episode 70 of the YMYW podcast, then welcome New York Times and USA Today bestselling author, Dr. Daniel Crosby on the show to discuss his book, The Laws of Wealth, on behavioral finance. Original publish date October 1, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 01:07 - "Will I be penalized for an excess contribution to my IRA?" 02:57 - "You may or may not be able to deduct it based on your income level and if you're in another retirement plan." 08:25 - "Will the 401(k) distribution tax be offset by the loss of my section 1231 property?" 10:26 - "That qualifies for a special tax treatment because it's a business asset, it's under code section 1231 which simply means this – if you sell the rental property at a gain, you get that lower capital gains rate." 17:15 - "Once you get to know what some of the rules are, you can actually pay a lot less in taxes." 18:43 - "Should I cash out my investments or continue to invest?" 21:21 - "You can make your own dividend, which people still don't understand. A dividend is not a coupon payment." 25:16 Start of Interview with Dr. Daniel Crosby 27:36 - "People who watch more CNBC tend to have worse results. People who are monitoring every little thing that Janet Yellen does are actually getting outperformed by people doing nothing at all, so there are a lot of ways investing runs contrary to our natural human tendencies." 30:06 - "Part of the reason why I wrote the book was to try and address the delta between what the research says are the determinants of investment returns and what most people understand them to be." 30:18 - "What do you think is the biggest bias that hurts us the most?" 33:55 - "Most people are overconfident and the people who aren't overconfident tend to be depressed – there isn't a lot of middle ground."

Joe Anderson, CFP® & Alan Clopine, CPA discuss the latest statistics on who's most likely to get audited, how often it happens, and what to do if it happens to you, in episode 69 of the YMYW podcast. Original publish date October 1, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 00:56 - "The latest stats on how often we're being audited. Who's more likely to get audited? I'll take it one step further – what do you do if you get audited?" 09:44 - "There's such a lack of planning, and that's why we do the show." 13:30 - "The oldest baby boomers are turning 70 ½; those who were born in the first half of 1946. When they turn 70 ½ that triggers a required minimum distribution (RMD) 17:42 - "The truth is, our tax rates now are lower than most times in our history..." 22:28 "A sole proprietorship goes on your tax return on what's called schedule C. You show your income, you show your deductions, and whatever the profit is – that's what you pay income taxes and self-employment taxes on." 26:22 - "In general, corporations have a lesser chance of being audited than individuals." 34:02 - "If you have to go to an audit office, here's what you do…"

Joe Anderson, CFP® & Alan Clopine, CPA discuss the importance of properly diversifying your 401(k) in episode 68 of the YMYW podcast. Plus, should you invest in real estate or index funds? How you can determine stock loss with a non-public company? Finally, 8 financial tasks you must do by year-end. Original publish date September 24, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 00:53 - "Why do I need to diversify my 401(k)?" 03:57 - "Bonds are there to even out the ride, to even out the overall portfolio." 05:57 - "When you take a long-term average of asset classes, more often than not emerging markets is either the top performing asset class." 11:05 - "Should I invest in real estate or index funds?" 15:35 - "If you are so inclined to do real estate, treat it as if it were a business, a company or another job because there's a lot to it. There are a lot of things that can go wrong." 21:32 - "How do you determine stock loss in a non-public company?" 26:42 - "When you have rental real estate and you sell that at a loss, that's considered business with a tenant and you can generally take an ordinary loss." 27:23 - "What is the best way to transfer or refinance through a quit claim?" 32:45 - "If you would like to go through a comprehensive retirement planning course, go to our website at purefinancial.com to learn about the course. 35:27 - "Rebalance your portfolio, and that could potentially create tax loss harvesting."

Joe Anderson, CFP® & Alan Clopine, CPA discuss some last-minute tax planning tips before year-end in episode 67 of the YMYW podcast. They also answer frequently asked financial questions, including whether you can roll your solo 401(k) to a simple 401(k). Original publish date September 24, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 04:35 - "One of the most critical elements is checking your emergency funds." 07:55 - "Take your retirement budget for a test drive and adjust your spending plan." 16:15 - "Can I convert my Individual 401(k) to a SIMPLE 401(k)?" 17:50 - "We like solo 401(k)s a little bit better, because if you're not making a lot of money you can put a lot more money into it if you want to shelter that." 22:02 - "You have to do [Roth] conversions before December 31st…you can convert any dollar amount you want to." 24:29 - "Should I be concerned about the Department of Labor scare?" 29:11 - "In some cases, the financial industry, banking industry or maybe insurance companies might feel a bit of a hit because they'd have to do things differently but I think over the long term this is good for people and the industry… in fact, this should have been done a long time ago." 30:02 - "Where should I invest my inherited money?" 35:03 - "You just have to figure out what your goal is and that will help you figure out how to invest it."

The state of the US tax code couldn't be more uncertain. In episode 66 of the YMYW podcast, Joe Anderson, CFP® & Alan Clopine, CPA discuss the presidential candidates' opposing views on taxes and explain what tax strategies you should take advantage of now before it's too late. Joe and Al answer some listeners' questions later in the show. Original publish date September 17, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 2:37 "When you look at Clinton, her proposals for the most part are adding extra taxes for those that make a lot of money." 2:57 "Trump wants to lower the tax rates and the highest would be 33% instead of what it is right now -39.6%." 8:06 "When it comes to your own retirement, trying to conserve your own dollars and pay less taxes is huge, because if you can pay less in taxes then you can live closer to that lifestyle you want to live." 12:05 "What is the best way to leverage an old ex-employer's 401(k)?" 15:37 "At 70 ½ you have to take a required minimum distribution and if you don't, it's a 50% penalty." 15:54 "Should I retire at 66 or take a low paying job?" 16:49 "A lower-paying job will never hurt you. They will never reduce the benefit, it will help you." 20:10 "How do I report my estate distribution?" 24:55 "What should I spend first in retirement to minimize high RMDs and avoid return risk? 35:10 "There's something called smart beta. What's your take on it?"

Joe Anderson, CFP® and Big Al Clopine, CPA discuss a two-decade study on the character traits of America's wealthy and uncover the lessons that can be learned from the millionaire next door, on episode 65 of the YMYW podcast. Original publish date September 17, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 06:41 - "Successful people often spend more time early in life focusing on bettering themselves which leads to higher income the remainder of their lives." 06:50 - "We need to keep investing in ourselves all throughout our career – things are changing so rapidly that we have to stay ahead of the curve." 13:23 - "The first check you write every single month should be to yourself – to your 401(k) or IRA. If you can automate it, all the better." 16:12 - "If you're thinking about saving money in taxes in retirement, having some of your dollars come out tax-free is key because that's what is going to keep you out of higher brackets later." 19:11 - "A lot of people don't realize they can take control over their taxes and especially in retirement." 22:00 - "If you're not maxing out your 401(k) plans and Roth IRAs, you have to get there." 24:52 - "A lot of you underestimate how much you are actually spending." 31:11 - "The fee-only community is pretty small. The really good fee-only advisors have minimums of millions of dollars." 32:07 - "Right now we have a tax system that starts at a lowest bracket of 10% and goes up to 39.6%. Hillary wants to keep that in place but an extra 4% if you have more than $5 million in income." 32:30 - "Donald Trump wants to change the brackets to be 0%, 12%, 25% and 33%." 34:35 - "Couple more things – for the alternative minimum tax, Donald Trump wants to eliminate it all together, and Hillary wants to expand it a little bit by having a 30% minimum rate for incomes over $1 million."

Joe Anderson, CFP® and Big Al Clopine, CPA discuss the good, the bad and the ugly of baby boomers' retirement plans in episode 64 of the YMYW podcast. Plus, Big Al quizzes Joe on retirement and investing questions. Original publish date September 10, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 03:30 - "There is talk about how to fix Social Security. I personally think what they'll do is they'll raise retirement age; they may raise the rates, or the amount we put in Social Security..." 08:49 - "How will you make your money work for you while reducing your risk? How will you avoid the retirement tax trap that we've been talking about that could cost you thousands of needless taxes?" 16:10 - "There are ways that you can increase your possibility of working longer; one is staying healthy, one is performing well at your current job…going back to school and learning new skills." 18:07 - "As you near retirement, tax planning becomes more important than ever, but you must use a forward-looking tax strategy." 21:42 - "True or false? If you take your Social Security benefit early, you'll lock in reduced monthly payments for life." 24:08 - "At what age do you qualify for the maximum Social Security retirement benefit? 68, 70 or 72? If you wait until age 70 you get the maximum benefit." 30:22 - "How do I avoid filing a trust return every year?" 33:27 - "I am a non- U.S. citizen living outside the U.S. and trading stocks through a U.S. internet broker. Do I have to pay taxes on the money I earn? 34:22 - "How do Roth IRAs gain interest?"

Oregon's State Senator Ron Wyden is proposing a limit on Roth IRA accounts so high-income households would face restrictions on this tax-advantaged retirement account. Would this solve anything? Joe Anderson, CFP® and Big Al Clopine, CPA discuss in episode 63 of the YMYW podcast. Later, 6 reasons to convert to a Roth IRA in your 50s and 60s. Original publish date September 10, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 02:50 - "People who have a retirement plan through their employer tend to have more money in retirement." 05:17 - "There's no such thing as a mega-Roth IRA." 07:12 - "Taxpayers 'are pouring dollars into incentives for retirement savings, but still far too many Americans struggle to set money aside after they cover their basics. Tax incentives for savings ought to be available to more working families and more generous to middle class.'" 11:49 - "The IRS is getting their tax money upfront when you put money into a Roth." 14:19 - "At age 70 ½, you have to take a required distribution." 23:18 - "What does a [company] match mean? It's when you put a dollar in and your company matches it." 26:50 - "If you have extended your tax return or even if you have not…and you did a Roth conversion last year, you're allowed until October 15 to re-characterize that amount." 30:53 - "If you pass away with a retirement account, the IRS wants their tax money…When you pass away, it will go to your named beneficiary…your spouse has different rules." 33:58 - "Roth IRAs do not have a required distribution to the owner but if I'm a beneficial owner it doesn't matter what type of retirement account it is…they will have to take that requirement."

Investing expert Larry Swedroe joins Joe Anderson, CFP® and Big Al Clopine, CPA to discuss his new book on factor-based investing in episode 62 of the YMYW podcast. Larry also discusses smart beta, his take on the upcoming election, and how investors should react depending on the outcome. Original publish date September 3, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 02:02 - "Can the IRS take the property from my trust?" 04:38 - "How much can I collect in widow's benefits?" 08:24 - "Can I re-gift a stock?" 12:35 - "A 401(k) plan will allow someone to put an amount directly into their paycheck into an account that will grow 100% tax-deferred…it's out of sight, out of mind." 15:02 - "When you start tapping your retirement nest egg, there are all types of rules – if you don't have a retirement nest egg, you have nothing to tap." 15:50 Start of Interview with Larry Swedroe 18:27 - "We identify eight factors in this book – six for stocks and two for bonds…" 20:12 - "We should have a risk-based explanation for these premiums and/or a behavioral explanation that should hold up." 20:20 - "The book goes through all of these issues for every one of the factors we recommend, and shows you the historical evidence." 22:47 - "Now there's something that's called smart beta. What's your take on that? That's just factor investing with a marketing ploy isn't it?" 24:49 "That, to me, is smart beta because it's patient trading and over time will outperform the index." 25:44 - "There is a thing that you can call smart beta, but 98 or 99 percent of what the industry calls smart beta is marketing hype." 29:19 - "Never let your political views influence your investment decisions. You should have that well thought-out investment plan that has your asset allocation. The only thing you should be doing is 1) rebalancing if necessary and 2) tax managing if the opportunity to harvest a loss is there." 33:38 - "The more you look at your portfolio, the more hazardous it potentially is to your wealth." 35:35 - "If you can't ignore the noise of the market…don't check your value." 35:55 End of Interview with Larry Swedroe

Joe Anderson, CFP® and Big Al Clopine CPA answer your burning financial questions in episode 61 of the YMYW podcast, ranging from how to avoid gift taxes to why it's worth it to invest in a 401(k). Original publish date September 3, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 04:17 - "When we talk about long-term care planning, a lot of people assume we mean you have to buy insurance and that's one way to solve an issue, but not the only way." 06:20 - "Medicare covers skilled care; they don't necessarily cover custodial care. Custodial care means you're not necessarily going to get better. Skilled care can patch you up and get you out the door." 11:20 - "What type of loan should I use to buy out my sibling for inherited property?" 16:59 - "You may have a will or a trust and that will spell out how the assets will be divvied up, but a letter of instructions and meeting beforehand goes a long way." 20:24 - "Can I avoid paying gift tax? Can a grandparent gift a grandchild money for college and not have to pay a gift tax? Would the grandchild have to pay taxes on it too?" 27:55 - "I think it's really important to take advantage of the tax laws that are given to us. If you are a business owner, you can pay your child do something for your business and it becomes a deduction for you." 28:20 - "If you really understand what the rules and opportunities are, you can take some control over your taxes." 30:45 - "I recently opened an LLC and landed my first client. Is there a limitation to how much income I can make off a single client?" 31:51 - "I withdrew $8,000 from my 401(k). I have retired at 59 and have not cashed the check. If I send it back, what happens? Will I still be penalized?" 34:56 - "How much capital gains tax will I pay on a home I sold after living in it for only 13 months?"

Pensions in lump sum vs monthly payments, 401(k) rules, the fiduciary standard, and more as Joe Anderson, CFP® and Big Al Clopine, CPA answer listeners' investing and personal finance questions on episode 60 of the YMYW podcast. Original publish date August 27, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 02:00 - "Does the early withdrawal penalty on my IRA apply to me?" 04:40 - "Never use your IRA (individual retirement account) for anything other than retirement." 05:23 - "Do 401(k) contributions have any effect on MAGI (modified adjusted growth income)?" 08:40 - "Think of 'above-the-line' as things like income and direct expenses to that income whereas 'below-the-line' is generally personal expenses." 11:14 - "Which should I take, a monthly pension or lump sum buyout?" 16:56 - "Why should I hire a fiduciary advisor?" 20:03 - "Everybody needs a financial plan, but not everybody needs a financial planner." 23:08 - "If you can save money on taxes, your money is going to grow that much further and you can take less risk." 23:51 - "Are high-yield bonds a good investment?" 26:26 - "A high-yield bond is going to be ordinary income, and you have to pay ordinary income taxes at the highest rate." 29:50 - "Do I need to pay capital gains tax on the sale of my retail space?" 33:27 - "Which income option is best for a 70-year-old?" 35:45 - "You have to look at so many different options, you can't look at this stuff in a bubble or you might make big mistakes."

Did you know there are strategies you can use to reduce your required minimum distributions (RMDs) from your individual retirement account? In episode 56 of the YMYW podcast, find out six ways to do this so you can keep more of the money you've earned, saved, and invested through your entire working life. Original publish date August 27, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 01:45 - "Once you turn 70 ½, you have to start pulling money out of an IRA (individual retirement account). If you are 70 ½ and still working, and own less than 5% of the company, you can delay your required minimum distribution until you retire." 04:13 - "Once you turn 59 ½ you can withdraw money from your tax-deferred accounts without paying a 10% penalty." 06:54 - "A lot of people don't realize that you can do these Roth conversions even before 59 ½. You could be any age and do a conversion." 10:45 - "This is a valid way to reduce your RMDs – invest in a QLAC (quality longevity annuity contract)." 12:20 - "You can invest in your IRA up to 20% of your IRA or 401(k) or $125,000 – whichever is less." 13:04 - "Another way to lower your RMDs is to use tax-deferred accounts for bonds and bond funds, and use taxable accounts for stocks and stock funds." 16:30 - "If you invest in stocks outside of your retirement accounts and you hold a stock or stock mutual fund for at least a year and you sell it, it's subject to a special long-term capital gain rate." 23:38 - "(Another option is to) donate your required minimum distributions." 29:42 - "A lot of men and women are living into their nineties and hundreds…if you haven't really thought this through, it sort of messes up your retirement plan." 32:30 - "If we're living a lot longer, how do we adjust our retirement plans to be able to accommodate that?" 34:43 - "The old rule used to be 'save 10% of your income.' A lot of advisors are now saying 15%, that's what we say."

Joe Anderson, CFP® and Big Al Clopine CPA answer personal finance questions about real estate investments, financial planning in your 20s, retirement, and controlling income taxes from Investopedia in episode 58 of the YMYW podcast. Original publish date August 20, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 02:49 - "I have 2 town home units, 9 & 10. I lived in #10 since 2006 and rented #9. I want to sell both and buy a new larger home using capital gains. I will have approximately $200,000 from #10 and $150,000 from #9 in capital gains. The new home will cost approximately $500,000. If I use these gains as down payment for a new home, do I qualify for capital gain exclusion under Taxpayer Relief Act of 1997?" 07:21 - "If you're in a divorce situation and this applies to you, you want to be careful how you do the property selling." 08:10 - "How do I become financially strong and independent at 22 years old? I have one full time job ($10,800 annually before taxes). I am 22 years old, single, and have no kids. I have no establish credit. I need to buy my first car and get an apartment or trailer before 2016 ends. Where should I start investing with $1,000? Should I put it in savings or look into binary options?" 09:38 - "Try to set aside 15% of your income at any age and keep doing that throughout your career; you'll have plenty of money when you retire." 11:39 - "My mother-in-law is in her 70's. She will live comfortably on her monthly social security check and has 1/3 of her assets in the bank. She will come into the other 2/3 when she sells her home. What do you suggest she does with the money she gets from the sale? Should she get an inflation hedge and some appreciation while being conservative at her age?" 15:52 - "A lot of times, people put investments in front of the planning, and that's where they fall into problems." 16:53 - "My father sold a piece of property that he inherited in order to pay for assisted living expenses. He passed away the year of the sale. His income was less than $15,000. Does his estate pay capital gains on the property, which gained $144,000 in value from the date of inheritance?" 24:05 - "Do I qualify for backdoor Roth IRA?" I own a 403b, 457b, and DCP account. Do these count towards the pro-rata rule?" 27:36 - "How should I manage my extraordinary tax year?" 35:40 - "Unfortunately, tapping your nest egg comes with all sorts of new rules but also opportunities if you understand the strategies."

In episode 57 of the YMYW podcast, Joe Anderson, CFP® and Big Al Clopine, CPA shed light on scary statistics regarding the rise of healthcare costs and share strategies to show how listeners can protect themselves. Plus, how traditional retirement planning has changed over the years. Original publish date August 20, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 01:43 - "The typical inflation rate has been around 3% historically; we use about 3.7% to be conservative. Medically right we do about 5.7% because that's what it's been growing at." 02:55 - "If you want to get an hour full of Medicare [education] go to purefinancial.com and check out our recent webinar." 05:33 - "A lot of people don't realize that Medicare does not cover [all] long-term care stays." 9:00 - "Age 70 ½ is when you have to start taking your required minimum distribution out of your IRA and 401(k)." 15:45 - "When it comes to parents' children and how much they're spending on athletics…how much are they spending?" 25:25 - "A 25% tax bracket means you pull $100,000 out of your IRA and you pay $25,000 in tax." 29:10 - "You have to make sure you understand what's going to come to you as a guaranteed income source." 30:59 - "When we're trying to reduce taxes in retirement, probably one of the first things you have to know is your tax bracket."

Joe Anderson, CFP® and Big Al Clopine CPA answer frequently asked financial planning questions about divorce, tax deductions, business profits, Roth IRAs, IRA rollovers and more from Investopedia in episode 56 of the YMYW podcast. Original publish date August 13, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 02:32 - "I am paying off a loan for CDL (commercial driver's license) school, and wondering if it is tax deductible. Does it matter if I no longer work in the trucking industry? I'm fairly inexperienced in the area of tax deductions. I understand the interest on loans is the only part that is deductible, right?" 04:11 - "After a divorce, can assets be distributed to into an account that is not in my ex-spouses name?" 06:54 - "Can a company have an extremely high gross margin and negative operating margin at the same time?" 07:58 - "Will I have to pay capital gains tax on the sale of two different homes?" 11:20 - "Can I draw $30,000 out of my ROTH IRA and put it back within a short amount of time? 12:22 - "I am a high income worker (over $250K / year). I would like to do a Roth IRA for my wife using the back door method. What would be the benefits of a Roth IRA going forward? 16:24 - "My late wife and I bought a house 20 years ago for $450,000. My wife passed away 4 years ago to cancer, so for the last 3 years I have been filing my taxes as a widow. I'm planning to sell the house for $900,000 now. How much capital gain tax am I supposed to pay? And how much tax exemption can I get?" 20:42 - "Is a 401(k) QDRO distribution taxed twice?" 28:48 - "You can wait as late as age 70 to collect Social Security, and for many of you that's probably a really good idea because you'll get a lot more benefit doing that." 29:47 - "A lot of you are behind in your planning, but a lot of you have done a great job. Here's a way to do a little self-check; there are really five things that you need to consider when it comes to financial planning." 34:34 - "Part of being successful [in retirement] is saving on taxes because what we see is that a lot of people have the majority of their assets in retirement accounts and when you pull those dollars out, you need to pay ordinary income taxes. Here's the key: people have a lot more control over how much they pay in taxes than they might think."

Presidents can bully the Federal Reserve, but they can't set central bank policy. Joe Anderson, CFP® and Alan Clopine, CPA explain how the Fed impacts overall markets in YMYW podcast 55. They also discuss a recent article covering three reasons why you should ignore Hillary Clinton and Donald Trump's economic promises. Original publish date August 13, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 03:06 - "The president doesn't control the Federal Reserve system. The way the Fed was set up was quasi-independent and answers to Congress on monetary policy." 07:56 - "Stocks are priced based upon future predictions of what we all think the future's going to be." 12:41 - "The moment you turn 50, you can put more into your retirement plans, and then that can give you a better tax benefit via deduction because you can shelter more money via tax or have more money grow tax-free depending on what planning you're doing." 15:36 - "Any time you pull money out of a 401(k) or IRA, you have to pay income taxes – federal and state." 19:32 - "You actually have more control over how much you pay in taxes in retirement, more so than any other time in your life." 22:43 - "There are always crises, whatever they might be, but we get through them." 25:38 - "If there's a lot of inflation and everything has gone up in price, gold will probably go up in price too." 29:58 - "We are a fee-only Registered Investment Advisor; there are no commissions generated to our firm, we act as a fiduciary 100% of the time." 32:55 - "If you don't sign up for Medicare in a timely manner, then when you do sign up you have to pay more for Medicare for the rest of your life." 37:03 - "The more income that you make, the higher the premium you will have to pay."

The IRS changed the rules for IRA rollovers and not everyone is catching on. Taxpayers can only perform one 60-day IRA rollover in a 12-month period, no matter how many IRAs they own. Joe Anderson, CFP® & Alan Clopine, CPA go over this new rule and share how you can avoid getting hit with high tax bills in YMYW podcast 54. Original publish date August 6, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 01:04 - "[We made a] 7-minute video on how to plan your finances in your 20's and 30's. The sooner you start, the better off you'll be." 04:41 - "We've been talking about costly retirement mistakes, and this is a relatively new one [60 day rollover rule]. It's indirectly rolling more than one IRA in a 12-month period - it's no longer allowed." 08:11 - "It's the direct rollover where the IRS won't withhold taxes but if you select rollover, they will." 12:19 - "If you're pulling money out of your retirement account for your own purposes, whatever they might be, how do you expect your retirement accounts to grow with compound rates of return if you're taking money out?" 16:54 - "The truth is, taxes don't stop when your paycheck does – in fact, now you start tapping your retirement accounts and it comes with all new rules and opportunities." 23:19 - "There are ways around the 10% penalty, but it's not nearly as flexible as if you just wait until age 59 ½." 27:10 - "A lot of you who are taking your required minimum distribution or that are going to be taking your distributions might not need to spend it…you don't have to take that money in cash if it's in an IRA. You can take shares and put it in your brokerage account." 31:09 - "There's a potential tax-saving feature called net unrealized appreciation." 33:18 - "If you take money out of an IRA before age 59 ½, you have to pay a 10% penalty. If you don't take your required minimum distribution at 70 ½, the IRS charges you a 50% penalty."

Joe Anderson, CFP® & Alan Clopine, CPA share common retirement mistakes they've seen for years. These mistakes that could cost you thousands, if not more, can easily be avoided if you learn how. Original publish date August 6, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 02:27 - "What we have found with a lot of you is that potentially you're not going to be in a lower tax bracket." 05:37 - "The people we work with have assets in retirement accounts, and in most cases they will be in the same tax bracket or higher because most people that will come into our office want to at least maintain their same lifestyle." 09:32 - "You have to put a plan together to take a look at a forward-looking strategy." 13:37 - "The first one (mistake) seems so obvious but we see it over and over again – it's not having beneficiaries on your retirement plan or IRA or having the wrong ones on your IRA." 17:34 - "As a CPA (Certified Public Accountant) for over 30 years, it does amaze me how many people fail to get the message about tax planning and strategies until they make a mistake that costs them thousands of dollars." 22:57 - "There are a lot of different requirements to name the trust as the beneficiary." 25:49 - "There is good justification for actually having a separate trust; it's called an IRA trust which has nothing to do with your living trust and you set that trust up in such a way that when you pass away, your beneficiaries become sub-trusts and you can actually have the RMD (required minimum distribution) based upon each individual beneficiary." 28:02 - "This isn't so much a mistake but an underutilized strategy because a lot of people don't really know about it. It's called net unrealized appreciation (NUA)." 30:55 - "If you keep your tax bracket low enough, you can avoid the capital gains tax so you can get those assets out tax-free to you." 34:46 - "Interest rates are at all-time lows, markets are volatile, we're living a lot longer and healthcare costs – the list goes on and on."

Joe Anderson, CFP® & Alan Clopine, CPA answer frequently asked investing questions and explain key factors to look for when choosing a financial advisor on YMYW podcast 52. Should you choose a fee-only or fee-based advisor and does it matter if they follow the fiduciary standard? Find out. Original publish date July 30, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 02:27 - "I'm currently employed by two employers, which brings my yearly income to $170K. I understand my pre-tax contributions. One of my employers now offers a Roth contribution. Am I eligible to contribute to only one employer's Roth?" 04:54 - "Yes, you can contribute to both plans…can you contribute to a Roth in either or both plans? The answer is yes." 08:15 - "I just purchased a home in January 2015 and I'm now wanting to sell with a potential profit of about $60K. I am newly married as of May 2016, and would like to file Head of Household to avoid paying Capital Gains. My income alone is $44K and married we are at $74K. I would like to be sure that I am under the radar and not having to pay capital gains tax if I sell today." 09:32 - "When you're married, you can't file head of household unless you've been separated for six months and have not lived with your spouse for six months." 15:46 - "You want to work with a fiduciary 100% of the time where there are no other licenses. If they have a broker-dealer affiliation, they sell products." 20:45 - "An overwhelming percentage of retirees are very satisfied or somewhat satisfied with their financial health." 25:39 - "If you look at the average 401(k) or IRA balances of those who are 55-64…it's $100,000. If you look at all people age 55-64, the median retirement account balance is $12,000 (Source: TIAA CREF Survey)." 28:52 - "My wife and I both draw on our Social Security Insurance benefits. We are both 68 years old. We just adopted 3 grandchildren. Does this change our benefits in any way?" 30:38 - "I will be retiring in a month or so and will be about 2 years before the mandatory withdrawal. Where can I park my money so that I have the least management fees and can earn some returns?"

On YMYW podcast 51, Joe Anderson, CFP® & Alan Clopine, CPA discuss three major tax-saving strategies that might be going away: the backdoor Roth IRA, net unrealized appreciation (NUA) and the stretch IRA. Learn how you can take advantage of them before it's too late. Original publish date July 30, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 04:07 - "That's why the government is trying to get rid of it (the backdoor Roth IRA), because it's a way for those who make a lot of money to do a Roth contribution kind of the backdoor way." 05:25 - "The downside of doing a conversion is that you have to pay the tax on the dollars that go into the Roth." 05:45 - "If you're under 70 ½ and you have earned income, you can contribute to a traditional IRA." 09:57 - "The most important investment, by far that you can make is an investment you make in yourself." 11:56 - "Our opinion is that if you don't have a Roth [IRA], start one now." 17:17 - "You want to make sure you understand all of these rules to truly maximize the amount of tax-free income you have in retirement." 20:32 - "We're talking about a couple different strategies that you might want to consider before the door closes on you. We talked about backdoor Roth IRAs and here's another one – net unrealized appreciation." 24:04 - "Capital gain rates – event though they're a lot cheaper than ordinary income rates, in some cases about half of ordinary income rates – the higher your capital gain, the higher the rate goes up." 31:15 - "If you pass away with a retirement account, it is completely different from any other asset that you will pass on to the next generation." 35:04 - "It's a matter of taking control over your own taxes to figure this out so not only yourself will be in a better spot or your spouse, but your kids as well with regards to your IRA."

How often do you come out on top if you try to beat the odds? Most active-fund managers fail to beat the market. Joe Anderson, CFP® and Big Al Clopine CPA share a more reliable way to invest for your future in YMYW podcast episode 50. Original publish date July 23, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 04:12 - "As the market declines, we are buying the same great companies at a discount, so now is the time to invest." 06:24 - "You want to make sure you're diversified." 07:03 - "Small companies and value companies tend to outperform large and growth companies over the long-term. But we haven't seen that the last few years. Does that mean we abandon that strategy? No, it still works if you give it enough time – that's where patience is really important." 11:01 - "We have all-time lows for the 10-year treasury…" 12:29 - "If you're a U.S. investor and getting 60% of your portfolio going to return 6% and 40% going to return 1%, you're talking about a 4% return which is half of the nominal return that the typical 60/40 portfolio has earned over the last 90 years. That's a real problem for many investors who make the mistake of relying on historical returns; they're likely to end up alive with no money." 13:20 - "Clearly there are problems in the global economy. The credit markets are telling us a different story than the stock markets. They think that economic growth is very weak and likely to continue to be very weak. The stock market, on the other hand – at least in the U.S. where stock valuations are high – one assumes then that the market thinks growth will be somewhat reasonable." 17:27 - "Bonds are not for return. They are to dampen the risk of the overall portfolio to an acceptable level…" 20:00 - "Whatever your political views are, I think it's important that you hear this message. What the academic research shows is the following: when the party you favor is in power, you earn higher returns than the people in the opposing party." 22:25 - "It's important to not let your political biases or your political views influence your [investing] decisions." 29:47 - "REITs (Real Estate Investment Trust), to me are the riskiest investments – or at least among them right now – as you can get a higher expected return by investing in a 10-year CD with a hell of a lot less risk." 32:50 - "Get realistic on your budget; take a look at your bank statement… try to figure out where that money is going, what kind of retirement lifestyle you want and then start figuring out a savings plan and start early."

Markets are at all-time highs despite recent events. In episode 49 of the YMYW podcast, Joe and Al share smart investment strategies you can learn from past performance and give advice for investing in a bull market versus a bear market. Original publish date July 23, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 10 Steps to Improve Investing Success - free download 00:00 - Intro 02:33 - "If you're invested in the stock market today, the question is: now what? Should you keep your money in the market? If you've been sitting on the sidelines sitting in cash, is it a good time to jump in?" 03:23 - "Trying to time the market is a fool's game, not to mention pretty dangerous." 05:36 - "By being fully invested when you need to be fully invested – that's the appropriate way to do it. Get invested properly and stay invested." 09:02 - "Because the stock market is volatile and you can lose money, over the long term you make a lot more money and that's the premium that you have to pay to make that extra return." 16:42 "Most of you have assets inside your 401(k) plans, IRAs, 403(b)s – that's where a bulk of your retirement assets are. Guess what? There's a tax risk there because every dollar that comes out of that plan is taxed at ordinary income rates." 21:59 "Donald Trump would like to change our tax structure with four brackets, starting at 0% and the highest bracket being 25%...the highest bracket right now is 39.6%." 27:21 "When's the last time you fully reviewed your portfolio? Are you having conversations about Social Security, taxes and Medicare?" 31:32 "No one knows when these asset classes are going to perform so you want to have some of each. People chase near term performance all the time…that's not a good formula."

Your generosity can pay off in more ways than one: when you give a charitable gift, the IRS will forgive a tax. In episode 48 of the YMYW podcast, Joe Anderson, CFP® and Big Al Clopine, CPA share how to make tax-smart charitable donations. Original publish date July 16, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 – Intro 02:47 – "Here's what does create a tax deduction for volunteering: your mileage to and from some type of charitable event you go to…supplies you purchase directly for charity, and there are some fundraising expenses that will qualify for tax deductions. A lot of people miss those deductions. Those deductions reduce your taxable income which ultimately reduces the amount of taxes you pay." 04:36 – "If you're spending money for charitable purposes or for a specific charity, then those expenses may be tax-deductible." 07:00 – "Give appreciated stock directly to charity because the tax deduction you get is the current value of the stock on the day you donated, and you don't have to pay tax on the gain." 12:04 – "If you can get a little more sophisticated in your tax planning and combine a couple of these different strategies together, you can save money in tax and actually create more income." 14:00 – "It's called a donor-advised fund. You can actually set up a fund at a brokerage firm, it's a special account where you control the investments and then you decide which charities get what amounts…here's the key: the key is that the year you set up the account and put the money in the account – that's the year you get the tax deduction." 20:02 – "You can take money out of your IRA and give it directly to charity." 25:42 – "There's no harm in getting a tax benefit. The IRS encourages it; you just have to know what's available and what to do." 29:44 – "Once you get a better picture on how all of this looks, you'll make better decisions." 35:07 – "You have more control over taxes now than any other time in your life."

The landscape of retirement is changing. The cost of living is rising and we are living longer than ever before. In episode 47 of the YMYW podcast, Joe Anderson, CFP® and Big Al Clopine, CPA share financial tips for this new age of retirement and they welcome Medicare expert, Dr. Katy Votava to share her best ways of coping with rising Medicare premiums in 2016. Original publish date July 16, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. Download the Medicare Checkup Guide 00:00 - Intro 01:57 - "When you turn age 62 or 63, the income that you make is going to determine what your Medicare premiums are." 07:58 - "A lot of you are probably overspending or will overspend for your Medicare coverage and healthcare coverage so we want to talk to Dr. Katy to figure out what the solution is there to make sure you keep a little more money in your pocket." 12:11 - "We see five different expenses on the horizon that can threaten your lifestyle in retirement and that could dramatically impact anyone who's thinking about retiring over the next five years." 15:13 - "When you look at spending money in retirement you have to take a look at a lot of different factors and risks, and one of them is healthcare." 16:32 - "Having an income strategy is key and look at all the potential risks in front of you." 18:23 - Start of Interview with Dr. Katy Votava 19:22 - "People don't know when to enroll and when they don't have to. You need to get in at certain times - there are windows to get in and if you don't when you need to, then you'll have lapses and gaps in coverage and penalties down the road…enrollment periods are really key." 21:45 - "I always say it's important not to leave money on Medicare's table because if you don't tell Social Security about your change in circumstance, they won't know. But if you meet the criteria, you can do your own reporting and then most people are granted that lower premium during that current year." 23:32 - "At what age do you think people should start thinking about planning for Medicare?" 23:55- "It's a really good idea to start planning by the time you're 62." 28:10 - End of Interview with Dr. Katy Votava 29:20 - "Medicare premiums are based upon your income level because different people pay different amounts to Medicare." 34:17 - "A lot more people should be converting [to a Roth IRA] than you might think, and the reason for that is when you look at your future tax brackets in retirement, in many cases it's higher than you think because of the income you're going to be receiving."

There are plenty of options when it comes to IRAs, but with plenty of options can come plenty of mistakes. In episode 44 of the YMYW podcast, learn from Joe Anderson, CFP® and Big Al Clopine, CPA how to ensure you don't blow it with your IRA. Find out how to avoid the 10 most common IRA mistakes you don't want to make. Original publish date Junly 2, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 01:09 - "Now we're in the month of July and the Baby Boomers are turning 70 ½ and having to take the required distributions. There are a lot of mistakes (made) and a lot of penalties." 07:14 - "With regards to the 401(k), if you are still working in the company and you're not more than a 5% owner of that company, you're able to delay that required beginning date to April 1st of the following year that you finally separate from service" 09:22 - "I've been a CPA for over thirty years and it does amaze me how many people fail to get the message about tax planning and the rules until they make mistakes that could cost them thousands." 12:49 - "If you're inheriting retirement accounts, you have to know what is going on. Unfortunately, they're one of the most complex tax rules when it comes to these things because of the benefits you get while you're alive." 17:13 - "If there's more than one beneficiary, let's say three children, then the inherited IRA must be split by the end of the year into separate properties, separately titled inherited IRAs in order for each beneficiary to take advantage of the stretch IRA based upon his or her own life expectancy." 21:17 - "If your spouse is significantly older than you and passes away and you keep it in the decedent spouse's name, then that IRA will have to take a required distribution as if that spouse was still alive." 27:22 - "Seeking professional advice on this stuff is so critical. If it's not with us, find someone who understands taxes in retirement and can put all of this together [for you]." 32:37 "Should I do the Roth provision [in the 401(k)] or should I do the pre-tax? Look at line 43 of your tax return because it will determine what portion of your income is taxable." 37:07 - "If you save money in taxes, your money is going to last you that much longer."

Joe Anderson, CFP® and Big Al Clopine, CPA recap recent Brexit headlines and take a look at how the markets have reacted, in episode 43 of the YMYW podcast. Plus, is the US in a retirement crisis? If so, how can it be solved, and what can you do to achieve your financial independence? Original publish date July 2, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 02:17 - "If you think about the market, in one particular day it might go up, and the next day it could go down. So-called experts quote the same things…" 06:09 - "When markets go down, what you want to do is be more strategic. You want to look at tax-loss harvesting and rebalancing the overall portfolio. [It's a better time to do] Roth IRA conversions or distributions." 08:26 - "Achieving financial independence only comes from having a thoughtful and comprehensive financial plan. The sooner you create that plan, the sooner the independence will come." 19:39 - "When markets go down, people stop investing which is the worst thing you can do." 20:15 - "Invest regularly and periodically, like through your 401(k) for example. It's the 'pay yourself first' concept." 22:50 - "You have to make sure that you take a look at your current portfolio and make sure you understand the risks that you're taking in your overall portfolio." 27:41 - "It's not about saving 'x' amount of money, it's not about the next hot stock or some one-size-fits-all product, it's a comprehensive plan that tackles risk, income, taxes, Social Security, healthcare and so much more." 31:37 - "Many retirees underestimate future living expenses." 35:37 - "When it comes to planning for retirement, what you have now versus what you'll actually need are two totally different things."

The fiduciary rule change will bring some changes to the financial planning industry. In episode 42 of the YMYW podcast, find out what the new rule could mean for your savings, then learn about tax reduction strategies. Original publish date June 25, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 00:46 "If you're not familiar with a 529 plan, it's a college savings plan that you can invest after-tax dollars that will grow 100% tax-free if it's used for qualified education" 01:52 - "Other states actually offer extra benefits if you go to college in their state with their plan; California is not one of them" 07:03 - "Shouldn't all advisors offer advice in your (the client's) best interest?...That's the foundation of Pure Financial Advisors" 07:15 - "We're a Registered Investment Advisor, a fiduciary and fee-only. That means there's never a commission generated" 07:32 - "We're trying to eliminate a lot of the different conflicts in the industry" 12:43 - "Those born between January 1st and June 30th of 1946 will turn 70 ½ this year, which means you'll have to start taking your required minimum distribution" 17:35 - "If you want to do a Roth conversion, you've got to do a required distribution first" 21:34 - "You brought up a strategy that's so good that I want to go over it – it's called the backdoor Roth contribution 23:55 - "A Roth is not an investment; it's a type of retirement account. Anything that you can invest in outside of a retirement account you can also invest in a Roth IRA" 26:37 - "If you could protect your wealth from taxes, you can take on less risk…the markets are volatile, but guess what? Right now is a great time to do Roth conversions if you haven't done it already. There are tax moves you want to make right now" 32:52 - "You've got to take the noise out and understand that the fundamentals of capitalism should prevail"

The markets are panicking over the Brexit vote. Original publish date June 25, 2016 (hour 1). In episode 41 of the YMYW podcast, learn what the news can mean for your investment portfolio. Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 02:08 - "Important British trading partners like India and China indicated that they were worried that the exit would create regulatory and political volatility that could harm the economies of everyone involved" 07:07 - "It's complicated; there are a lot of treaties that have been set up between countries that have to be re-negotiated" 09:37 - "I know volatile times make people a little uneasy, but that's just part of being invested in the overall global economy" 14:00 - "We can't be ultra, ultra conservative with our money because we won't keep up with inflation" 20:46 - "I'm going to talk about the seven biggest financial challenges senior citizens are facing in retirement, according to the Motley Fool" 22:28 - "We're at historically low interest rates" 26:41 - "Low interest rates are a problem, and distrust of the stock market is another one. Capitalism works over the long run" 28:18 - "When it comes to retirement, a lot of us are in a much higher tax bracket than we figured because the money coming out of our 401(k)s and IRAs are fully taxable"

Financial expert Larry Swedroe joins Joe Anderson, CFP® and Big Al Clopine, CPA, on YMYW podcast episode 40 to discuss active versus passive investing, comparing past performance numbers to illustrate which investment strategy has a more reliable outcome. Original publish date June 18, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 07:07 - "The fact of the matter is, the most successful investors understand that markets will go down and they have a strategy of what they're going to do when they go down" 08:16 - Start of Interview with Larry Swedroe 09:13 - "Let's go over real quickly this active versus passive debate" 09:36 - "He [Eugene Fama, Nobel Prize winner] defines 'active' as those who are engaged in individual stock selection and/or market timing" 12:13 - "Any decision to own any asset allocation that's different from the market is an active decision in terms of your strategy" 15:06 - "You have to be prepared to accept long periods and stay the course" 16:36 - "The market is getting smarter and it's getting harder to outperform the market itself" 17:07 - "Because the market and investors are getting more intelligent, do you think these risk premiums would ever go away? 22:34 - "Ignore the ups and downs of the market, and if anything be a rebalancer which means you're going to buy when everyone else is panic selling" 27:11 - "People's focus on dividends is a purely psychological one" 31:16 - End of Interview with Larry Swedroe 33:18 - "Another way to help with the overall volatility of the portfolio is looking at the taxation of the portfolio. You have three different pools…you want money in tax-free accounts, taxable accounts and tax-deferred accounts" 36:51 - "If you can save more money in taxes then you can take less risk in the portfolio"

Learn simple steps for building wealth in retirement with Joe Anderson, CFP® and Big Al Clopine, CPA, in YMYW podcast episode 39. Dive into the optimal retirement withdrawal strategies for keeping your finances steady regardless of market uncertainty. Later in the hour, find out if a reverse mortgage is right for you. Original publish date June 18, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 04:23 - "In 2013 the Reverse Mortgage Stabilization Act was passed and you've probably heard a lot of bad things about reverse mortgages but a lot of those bad things have been eliminated or curtailed substantially" 05:50 - "I think the 4% rule is a very, very good tool when you're trying to understand how much money you need to accumulate to retire" 09:23 - "What we're going to talk about today is really one of the most important pillars of retirement planning; it's withdrawing money from your retirement accounts" 14:2 - "Most people's assets are in retirement accounts" 16:55 - "You need to maximize the amount of money that you are receiving from Social Security because that is going to be a large fixed income source for you that is guaranteed by the Federal government" 22:08 - "A reverse mortgage can never be reduced, frozen or cancelled, and there are no monthly loan repayment requirements" 27:43 - "As you near retirement, tax planning becomes more important than ever, but you must use a forward-thinking tax strategy" 29:59 - "To continue on our discussion about if you retire and you're trying to pull money out of your accounts and the markets goes way down, a reverse mortgage is yet another potential solution to this" 34:44 - "Reverse mortgages are tax-free"

In episode 37 of the YMYW podcast, Joe Anderson, CFP® and Big Al Clopine, CPA answer questions on investing for retirement, and they share strategies for managing your portfolio during an election year. Original publish date June 11, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 06:32 - "When you inherit a retirement account, it blows up on the heirs because it's [taxed at] ordinary income for the heirs" 08:20 - "With this Bipartisan Policy Center, one of the things they want to do is get rid of the stretch IRA because it's really a pretty good deal" 12:20 - "Can an SEC licensed broker-dealer transfer your 401(k) account into an IRA without your permission?" 13:38 - "Your retirement accounts are separate properties…there's no such thing as a joint retirement account" 18:54 - "I am 47 years old. I have around $100K in a Traditional IRA. I haven't contributed anything in that account for a long time now. My current job offers a 457 and 401a plan, which I try to contribute to every paycheck. Should I transfer my Traditional IRA funds to my job's 401a or 457 account? What are the tax consequences of that transfer? Should I just keep my Traditional IRA and use it until I retire? If I transfer that money to the 457 or 401a account, should I do it in a one time transfer or installment transfers (in 5 or so years for less of a tax penalty)? 19:57 - "There's no reason to roll the IRA in the plan. I will give you an advantage.. but let's say you decide to keep it separate – there are advantages to that but probably the main one is you have more investment choices when it's in an IRA" 21:44 - "One benefit of the 457 plan is that you can take that money out at any age" 23:47 - "I have read about the presidential election cycle and am curious as to what actions I should be taking in terms of my asset allocation. When should I take those actions? How conservative would you recommend I become prior to the election? What are the most effective portfolio management strategies you would recommend in order to maintain or at least mitigate risk? I am a small time investor. I work with a small amount in an online brokerage account as well as accounts with companies such as Acorns and Betterment. I do have the ease and benefit of diversifying risk away (referring to the Modern Portfolio Theory)" 25:22 - "Here's my answer: there's no evidence that there's any sort of market swing one way or another with a presidential election. It can happen and it may happen but there's no reason to make any drastic changes in your portfolio just because of that" 29:42 - "My wife and I are 83 years old. We will sell our home for about $400,000. Will we pay capital gains tax when moving to an apartment for $2,500/month?" 31:56 - "It's June and I have not taken my RMD (required minimum distribution). Should I let the funds grow until end of the year or take average withdrawals until end of the year?" 33:34 - "I am 69 years old. My husband is 71 years old. We cannot afford the note on our home with our retirement income. We have two annuities. One for $300,000 and one for $600,000. Both are about 3-6 years old. I want to know if I cash in the $300,000 annuity, what kind of penalties and taxes will I have to pay?" 34:00 - "The first question you should ask yourself is: is the annuity in a retirement account or not? If not, every dollar you pull out is fully taxable"

A 146-page report from the Bipartisan Policy Center was released last week and a lot of high earners aren't going to like it. One of the proposals is to shore up Social Security by raising the tax base. In YMYW podcast episode 37, Joe Anderson, CFP® and Big Al Clopine, CPA discuss what this report puts on the line for retirement. Original publish date June 11, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 02:39 - "This is not the first time we've seen some of these proposals; I've got to believe that some of these are going to come true at some point" 05:25 - "Probably not a lot of people realize it but at certain income limits they stop withholding Social Security" 09:13 - "If you don't have a retirement plan today, here are three reasons why you should…" 14:07 - "More and more employees are suing their employer because they don't have good choices in the 401(k) plans" 18:40 - "You have more control over paying taxes than you think, actually more so than any other time in your life" 22:37 - "As long as a marriage has lasted at least ten years, a married or divorced person can draw on his or her own benefits or the spousal benefits, whichever is higher. The recommendation is to cap the spousal benefit at a level equal to the spousal benefit received by someone married to a worker in the 75th percentile of the earning distribution" 30:37 - "The report's authors are concerned about Americans' debt, including the increasing level of mortgage debt among older people" 32:32 - "[According to the report], they're going to raise Social Security tax, they're going to raise the amount of money they're paying on Social Security…they're going to limit the deductions on mortgage" 35:00 - "If you do a little bit of tax planning, there are significant things that you can do with your money from a tax perspective to save more money for you and less for Uncle Sam"

The inventor of the 401(k) says he created a 'monster.' Could we see the end of the 401(k) as we know it? What about pensions? More and more employers have been quietly replacing pensions with other alternatives. In YMYW podcast episode 36, Joe Anderson, CFP® and Big Al Clopine, CPA discuss the future of retirement planning while sharing insight on what you should be doing now for your retirement. Original publish date June 4, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 3:53 - "You can put $18,000 into a 401(k) [each year] and once you hit 50 you can put $24,000 [each year] and then the employer's usually have some sort of match" 7:18 - "The good news is that 401(k) plans, especially the larger ones have significantly lowered their fees" 9:38 - "I would much rather pay a bunch of fees and costs to have the 401(k) to get the deduction or potentially the Roth 401(k) to have my money grow tax-free…versus not having the plan at all" 12:53 - "There's a lot more convoluted legalities to this (self-directed IRA); we'll just talk high-level pros and cons" 17:40 - "As a CPA for over 40 years, it does amaze me how many people fail to get the message about tax planning until they make a mistake" 22:38 - "If you are divorced, can you collect a benefit based upon your ex-spouse's earning history?" 33:17 - "We're giving you a workaround (for making a budget), which is pay yourself first and spend the difference. If you don't pay yourself first…you'll find a way to spend it" 33:56 - "You do need to do a little bit of planning to figure out how much you can spend each month, and then have that come out as an automatic withdrawal from your spending account so you don't spend any more than that" 35:27 - "Taxes don't stop when your paycheck does"

Nicole Newman, Attorney at Law joins Joe Anderson, CFP® and Big Al Clopine, CPA on YMYW podcast episode 35 to discuss the most important estate planning mistakes people need to avoid. Later in the hour, they dive into Social Security, investments and taxes. Does your Social Security strategy line up with your retirement plan? Original publish date June 4, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. Download the Estate Plan Organizer Learn more from Nicole Newman: 10 Gruesome Estate Planning Mistakes to Avoid 00:00 - Intro 02:47 - "We have seen Social Security benefits reach a million dollars [before]" 06:35 - "When you get really good rates of return, there are risks involved no matter what the investment vehicle is" 08:40 - "Cash flow is king when it comes to retirement. Do you have a strategy and plan in place to make sure that you can provide the income that you need?" 10:00 - Start of interview with Nicole Newman 11:52 - "What happens if you fail to plan for your death is that each state has their own back-up plan for you.." 12:59 - "They tend to interchange the terms will and trust all the time…actually that's mistake number two in my seminar" 13:39 - "A will does NOT avoid probate…that's a very common misconception" 14:18 - "Here in California probate is very lengthy, so it usually takes about 12 to 18 months as long as there are no problems…if there are problems then it can turn into years very quickly; whereas other states' probate can be very simple and very quick" 17:47 - "We see this quite often, where we'll see children from a prior marriage cut out simply because of the lack of planning…when you have a blended family you definitely want to have a living trust" 19:22 - End of interview with Nicole Newman 24:41 - "Each year that you wait after your full retirement age, Social Security will guarantee an 8% delayed credit to the benefit, plus you also get the cost of living benefit" 28:48 - "In retirement you have more control [over your taxes] than any other time in your life" 36:29 - "There are a lot of other things that you can do; you could push out your retirement a couple years or you could look at some tax planning strategies that will carry out your dollar a little longer…making sure you have the right portfolio set up to give you the income that you need"

Is the well-known trading adage, "sell in May and go away" actually good advice? Joe Anderson, CFP® and Big Al Clopine, CPA discuss this in YMYW podcast episode 34 before diving into retirement planning, sharing common IRA and Roth misconceptions and beneficiary blunders that could cost your family thousands. Original publish date May 28, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 02:26 - "You can contribute up to $5,500 (to an IRA); if you're over 50 you get a $1,000 catch-up so $6,500" 04:01 - "If you're in a low tax bracket you might not get that much benefit. You might as well do a Roth contribution so you forgo the tax benefit today but all future income, growth and principal are tax-free later. Here's the caveat – you need earned income" 04:29 - "Earned income has to be salary or positive profits from your self-employment business" 09:01 - "If you don't have an IRA already established and you try to do a direct rollover, you're going to find yourself with some problems" 14:59 - "Did you know that you can use your spouse's earned income if you're not working to do a Roth or IRA contribution?" 16:03 - "A couple of other basics when it comes to the Roth: there is no required minimum distribution (RMD)" 23:08 - "These are retirement accounts. They're for retirement; they shouldn't really be used for other things" 28:52 - "We're talking about IRAs, some mistakes you might be making with the overall retirement accounts; we talked about the basics – how much you can contribute, AGI limitations, penalties, RMDS. But one that people forget about is the beneficiary designation" 33:10 - "We encourage our clients and I'll encourage you guys as well to be looking at your beneficiary statements on all IRAs, 401(k)s, 403(b)s every few years; make sure they're up to date" 36:16 - "There is such thing as an IRA trust"

The 2016 election race has already offered plenty of surprises, but what could it mean for the economy? Joe Anderson, CFP® and Big Al Clopine, CPA share what they think, then move on to discuss Americans' top regrets in retirement. Are you saving enough money for emergencies? Is your credit card debt hindering your finances? Are you taking enough risk in your financial portfolio? Find out what you can do to improve your finances. Original publish date May 28, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 05:15 - "We tend to sell our positions when they go down because we are fearful…and then we buy back in when the market does well" 10:40 - "Here's an interesting statistic I got from Market Watch: since 1950, a 60/40 bond portfolio…hasn't had a loss in a five-year period…any five-year period" 17:54 - "Presidential election year or not, it doesn't really matter. You need to get the right investments for you and stay invested. Rebalance when you need to" 22:53 - "According to this article on U.S. News, they're saying that people over age 50 spend an average of 40-45% of their household budget on housing and housing items" 27:25 - "We talk about being diversified with investments but you also have to be diversified with your taxes"