Your Money, Your Wealth

Kiplinger's Retirement Report editor Rachel Sheedy tells Joe Anderson, CFP® and Big Al Clopine, CPA how to inherit a retirement account without paying a boatload of taxes all at once. Family, Inc. author Doug McCormick talks about how to use sound business principles to make the most of your family's money, and the fellas answer emails about retirement contribution limits, taxation on stock dividends and splits, and the voodoo of overfunding life insurance. They also discuss Social Security and Medicare changes in 2017, and the do's - and dont's - of saving for retirement. 00:00 - Intro 01:00 - 2016 Market Recap 07:39 - The Stretch IRA Explained, with Rachel Sheedy from Kiplinger 23:51 - 5 Ways to Become an Extreme Saver 30:20 - 2017 Social Security Changes 36:03 - Family, Inc. With Doug McCormick 47:16 - Answers to Money Questions 48:03 - I am currently contributing a company sponsored 401(k) plan. Can I also contribute to a Roth IRA? 50:52 - Are stock dividends and stock splits taxed? 56:06 - I've heard I can use life insurance like a Roth. How do I do this? And is it a good idea?

With so many retirement planning strategies and the plethora of information on the internet, it can be hard for some to prioritize where to start when it comes to planning for their retirement. Joe Anderson, CFP® and Alan Clopine, CPA share eight proven ways to boost your retirement income. Original publish date January 28, 2017 (hour 2). Note that content may be outdated as rules and regulations have changed. 02:02 "After age 70 ½, you cannot do an IRA contribution but you can do a Roth IRA contribution." 04:49 "Why do we not want to solely focus on dividend paying stocks? There's a lot of risk involved." 07:52 "If you are in a high dividend strategy and you don't necessarily need the income, you may want to readjust and be more sophisticated in your strategy." 10:18 "Delay your retirement by a few years…sometimes we run analyses for people if they retire at 65 versus 68 and it's incredibly different because what happens in a lot of cases is people are in relatively high earning years so they're putting maximum amounts in their 401(k) and getting maximum matches from their employers." 12:17 "When you add the Social Security to components, sometimes working just a few more years could add ten years to your portfolio." 12:35 "See whether a reverse mortgage makes sense for you…we did a webinar on home equity and that was one of the things we talked about." 17:59 "Can I claim a loss from my Roth IRA? I have a Roth IRA open for over 10 years now. I have contributed about $15K, but I lost around 80% of it due to some stocks that I invested in. Can I claim this 80% lost in my tax return? I know that I can claim up to $3,000/year for capital losses in regular investment, but can I claim my losses in the Roth IRA when I withdraw the money, or sell the stock(s)?" *Question from Investopedia Advisor Insights 18:35 "Once any dollar goes into a Roth IRA or regular IRA, the capital gains rules don't apply anymore, so you don't get to claim the gains or losses." 20:26 "It's difficult to get money into a Roth IRA because a) there are contribution limitations…b) if you convert money, that's unlimited but realize that you're paying tax as you convert those dollars." 29:35 "Should I retire early to take care of my parents? Within the next six months, I plan to quit working so that I can relocate and take care of my parents. I will be 50 years old at that time. I have no debt, am not married, and have no children. All of my living expenses will be paid for by my parents as compensation for taking care of them. In addition, I have a $700,000 nest egg. Many friends and colleagues are telling me I am ridiculous to retire so early. I don't agree. What is your opinion?" *Question from Investopedia Advisor Insights 31:44 "Well, how bad of shape are mom and dad? Are they going to live another twenty years or two years? If they're going to live another twenty years, then sure, go for it." 32:53 "This may not be forever; you can always go back to work."

How do you get motivated to save for retirement? Joe Anderson, CFP® and Alan Clopine, CPA share smart saving tips for retirement then shed light on why you shouldn't depend solely on your pension for future income. They close the hour with seven reasons why you should say yes to a Roth IRA. Original publish date January 28, 2017 (hour 1). Note that content may be outdated as rules and regulations have changed. 02:06 "I want to go over in this segment a few ways to motivate yourself to save more for retirement, and I think this is something that's true for all of us – whether you've saved little, none, or a whole lot." 04:48 "No matter where you're at – whether you're in your thirties or in your sixties, you want to be saving as much as you can because retirement is going to happen." 07:46 "If I save $10,000 after tax (let's say I have a Roth component in my 401(k) plan), I forgo the $2500 savings today and then it grows to $100,000 and then [when] I pull out the $100,000 I don't pay any tax at all. Let's assume we're in that same 25% tax bracket – that's a $25,000 savings. So I forgo the $2500 to save $25,000 down the road, versus a $2500 tax deduction today and then down the road paying $25,000 in tax." 09:25 "If you have the discipline to save that tax savings and you're in a higher tax bracket, by all means, go for the pre-tax and get that deduction… take that $2500 and save it - put it in a Roth IRA as a contribution; that would be the best [case scenario]…people forget about this because they just spend it." 16:17 "A lot of companies, as ours, we do have a 401(k) and a match, but it's not the same amount as a pension plan." 17:05 "If you do have a pension, private or public – that doesn't necessarily mean you should just coast." 19:28 "The most obvious benefit of a Roth IRA is it can provide you with tax-free income in retirement." 22:56 "A couple of things when it comes to RMDs (required minimum distributions) – you don't necessarily have to sell the investment. You're taxed on it, but you don't need to sell it if it's in an IRA. You can transfer shares out and put it into a brokerage account." 27:36 "If you don't have a Roth, we would encourage you to at least open one up because then that starts your five-year clock." 28:06 "A Roth IRA can be a great compliment to other retirement accounts. A lot of people don't realize the power of this." 32:22 "Roth IRAs are great for estate planning as well because your kids get them tax-free as well."

Joe Anderson, CFP® and Alan Clopine, CPA interview Tom Anderson, author of The Value of Debt in Retirement, to discuss why debt isn't always a bad thing in retirement. The Value of Debt placed #2 on Forbes List of Personal Finance Books Financial Experts Say Will Change Your Life. Plus, Joe and Al answer more email questions on-air. Original publish date January 21, 2017 (hour 2). Note that content may be outdated as rules and regulations have changed. 0:58 "We're answering email questions as well, and this is fitting for our next segment." 1:03 "I have a large 401(k) plus a pension. I want to retire before the end of 2017. I will be 62 years old in September. Would it be wise to pay off my car loan so I don't have any debt when I retire? Should I withdraw from my 401(k) to do this?" 2:56 "Maybe this will work for you…I would look at my income over the next eight, nine months and try to budget extra payments so that by the tenth month I can have it all paid off with my salary." 3:35 "A lot of people go into retirement thinking they have to have their mortgage paid off; that's not necessarily true." 6:28 Start of Interview with Tom Anderson Joe (7:11) "Tom, let's talk first of all about the title [of your book], 'The Value of Debt in Retirement' – when you think of most financial pundits, that's the opposite take of what you might hear when you approach retirement." Tom (7:27) "That's the general plan, is people are saying they need to rush in and get rid of all their debt before they retire – so we went with a more controversial title…we tried to put the math around it and explore that topic." Joe (7:57) "Most individuals, as they approach retirement, don't necessarily take a look at both sides of the balance sheet. They might focus on the debt side a little too much where they pay extra on their mortgage payments and they have very little liquid capital to provide any type of retirement income, and they might think that will be a safer route approaching retirement where in actuality that might be the opposite thing they should be doing." Tom (8:25) "That's exactly right…what happens is a lot of people find that they don't have enough retirement savings…while many people feel they've under-saved for retirement, what they're doing is they're rushing in to pay off their debt, and they're finding that they don't have the liquidity or flexibility or the resources to put them on track for retirement." 9:03 "Your listeners have to know that I don't think all debt is good." Joe (9:37) "Right, it's figuring out what is good debt and what is bad debt. I think people just lump debt into one category and say 'no, it's all bad – I want to be debt-free' and then all of a sudden when they get into retirement they may have a paid off house but they have very little liquid assets and don't have the retirement income they need long-term." Tom (10:09) "I would love for everybody to be able to pay off their house, but what happens is when you're getting close to retirement, until you have enough money to pay off all of your house, I suggest why pay off any of it, because it's a one-way liquidity trap." 10:34 "What readers need to be thinking about is how to protect the liquidity and flexibility and make sure there are enough resources; [consider] working with an advisor…" Joe (10:55) "What are the right types of debt?" Tom (10:58) "Any debt that has a rate of return or a cost of it less than what you think you're going to earn long-term in your portfolio…" Joe (11:47) "Are there certain ratios that you take a look at?" Tom (12:00) "When you retire, you basically have a pod of money that you're trying to create an income stream from in retirement…there's no clear math-compelling case that debt will add value. If you need to have between a 4% or 6% distribution rate – let's say I have $1 million and I want to spend $50,000 a year, then I show that a 30% debt to asset ratio actually can add value. Those people have to take risk either through investing in risky assets or debt…some debt, the right kinds of debt, the right way, can actually reduce that risk." 13:40 "It is a mathematical fact that debt can increase the rate of return in your portfolio. It is a mathematical fact that debt can reduce taxes; it is a mathematical fact that counterintuitively debt can reduce risk…it is a fact that this is not a guaranteed path and that you're basically choosing between two different risks." 18:36 End of Interview with Tom Anderson 19:34 "It's not the end of the world to have a mortgage these days, particularly because interest rates are low, and this is what we call good debt because your home should continue to appreciate." 24:54 "Which retirement account should we set up for our children? We would like to set-up accounts for our three kids, who are young adults. We are not sure if it is smart to make them wait until they are 59 1/2 years old. Would you recommend we set up a Roth IRA or a low cost index fund?" 26:45 "With a Roth contri

Asking yourself these important questions before retiring helps rule out any unwanted surprises. Joe Anderson, CFP® and Alan Clopine, CPA dig into the email bag to answer your questions. Original publish date January 21, 2017 (hour 1). Note that content may be outdated as rules and regulations have changed. 2:48 "When you use debt properly, it can actually be pretty effective." 9:32 "Here are 18 questions to ask yourself before you retire…let's start with the first one: what does being retired mean to you?" 13:02 "Absolutely make sure you communicate what your retirement vision looks like to your spouse." 16:58 "What would you like to add to your life and eliminate from your life?" 20:19 "How do you feel about downsizing? A lot of our equity and net worth is pent up in our home." 25:06 "Should I recharacterize my Traditional IRA contributions to a Roth IRA?" 26:12 "Virtually anyone that's working and has earned income can do a regular IRA contribution as long as you're under 70 ½, however here are a couple stipulations…" 27:31 "If you're single and your income is in between $118,000 and $133,000 you can do a partial Roth contribution." 28:48 "You can do a Roth conversion regardless of your income level and age, and you don't have to be working." 30:33 "Recharacterization means you're undoing your contribution that you made." 31:36 "Control is everything when it comes to your money in retirement, because in retirement you actually do have more control over how much you pay in taxes [according to] which accounts you take money out of, and each account may be taxed differently."

Joe Anderson, CFP® and Alan Clopine, CPA discuss why the father of the 401(k) regrets creating it. Plus, the worst mistakes you can make with your IRA and 401(k). Original publish date January 14, 2017 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 01:46 "[For today's topics,] I've got ten important considerations for 401(k) rollovers, and Ed Slott's three fatal IRA (individual retirement account) errors." 02:59 "Ted Benna, in case you don't know, is known as the father of the 401(k) and we was a benefits consultant with Johnson companies, and he was among one of the first to come up with the notion that American workers should set aside their own pay pre-tax for retirement." 04:02 "He and other early proponents dislike what the 401(k) has spawned. The tool was never meant to serve as the main means by which workers save for retirement, but that's precisely what it's become – it's increasing the financial risk for workers along the way." 08:25 "The other thing he doesn't like about the 401(k) is he says 'I helped open the door for Wall Street to make even more money than they were already making. That is the one thing I do regret.'" 11:36 "A majority of retirees rolled over their 401(k) to an IRA at retirement." 14:29 "Let's say you go back to an old company, you could roll all of your 401(k) into that new 401(k), that avoids the required distribution until you're retired." 20:03 "When you think of an appropriate globally-diversified portfolio with a rebalancing strategy, a rebalancing strategy simply means that whatever asset class you have that's done really well – you shave some of those profits off…and buy an asset class that hasn't done as well – you're constantly selling higher and buying lower by discipline...you take the emotion out of it." 22:57 "The true value-add of an advisor is to take a look at what the strategy is, what their plan is and coming up with the tax alpha if you will, because if you can reduce the overall tax liability of the income that you're trying to produce, that's more money – it's a rate of return. If you look at rebalancing when markets go up and down or sideways to keep that risk parameter based on your goals – that's huge." 29:24 "Here's another one (mistake) that's irreversible. This is when you have a non-spouse rollover…let's say you inherit an IRA from your father or mother and you roll it over into your own IRA…you may not realize this but it's a prohibited transaction. That's treated as a full distribution."

Paul Sullivan joins Joe Anderson, CFP® and Alan Clopine, CPA to discuss the biggest lessons from his book The Thin Green Line: The Money Secrets of the Super Wealthy on creating and maintaining wealth. Also in this hour: answers to financial questions. Original publish date January 14, 2017 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 02:38 "[With] the 60-day rollover, you can only do one per year for all of your IRAs (individual retirement accounts) so all of your IRAs are considered to be one account." 04:18 "I don't think this one is widely known, and when you have a 401(k) that has company stock and you roll it over into your IRA, you completely lose a strategy called net unrealized appreciation (NUA)." 08:07 Start of Interview with Paul Sullivan Joe: (08:30) "Tell us the genesis of the book. It's the secrets of the ultra-wealthy – what did you learn and what are some of the things that we can give to our listeners?" Paul: (08:58) "The gist of the book is this: how we think about money matters more than anything else…" Joe: (10:15) "How did you come up with the title?" Paul: (10:20 "If you think about the S&P 500 or your favorite stock index over the past 50 years – it starts low, goes high but it's not in a straight line, it's a little bumpy along the way. That's the thin green line; the people who are on top of it – they're wealthy, whether they make a little money or a lot of money. Everybody else is rich and poor so you could be at the very tippy top making a ton of money each year but you're really rich. The difference is freedom. The people who are wealthy are able to make all the decisions and choices that they want to make with their money. They're in control, they control life. 10:57 "The people who are rich – you can think in the most simple context – is someone who is wildly over-leveraged. They may make $1 million a year but they have $5 million in debt obligations. Life is going to control them." Joe: (11:51) "So wealthy is not necessarily a dollar figure in your bank account – it's basically the control that you have within the wealth you've created." Paul: (12:13) "It's all about having those choices and knowing that when you make them you're not endangering some of the essential things in your life." Joe: (15:01) "Give us some tidbits about your own personal journey." Paul: (15:54) "It's been an interesting journey but it gives me perspective on [the fact that] it (wealth) can go away, how do you make sure it does go away and more importantly, how do I talk to my kids and my kids' friends so they understand that a lot of this is decisions and being aware of the decisions you make; and just as important is your behaviors." 17:27 "You can save money, you can spend money, you can give it away – but most importantly, you can think about it, and it's how those four work together that I hope will allow people to make better decisions in their own lives." 19:35 "The Château Margaux is something I like, but if I'm going to have it once a year, there are other decisions I'm going to have to make to offset the splurge for that amazing bottle of French wine." Joe: (20:02) "Where can people find more information about you?" Paul: (20:04) "Go to my website: pauljsullivan.com or go to the New York Times website and type in my name." 20:23 End of Interview with Paul Sullivan 25:00 "I have a beneficiary IRA that I doubled by investing in Apple Stock. I now have sold 90% of that stock because I felt it was too risky to have all my eggs in one basket. I would like to primarily live off of the interest and not touch the principal ($900K) of my IRA. How would you suggest I invest to accomplish that? How should I invest for the long term inside my IRA?" 26:07 "I would look at this as more of a total return; I would look at a globally diversified portfolio total return, not just income." 29:11 "Should I diversify between different financial institutions? As a high net worth individual, should I diversify between financial institutions or should I just diversify within one organization such as Wells Fargo or Chase?" 30:55 "Well what if Chase or Wells Fargo goes out of business? You're investing in a security versus a bank." 33:56 "What tax rate will my mother have to pay on a cashed out IRA? I have a terminally ill mother who is 69 years old. She has a traditional IRA worth around $500K that she converted to an annuity at 4%. Her medical care requires increased cash flow to pay day-to-day bills. The company has agreed to cash out the full value of the IRA with 0 surrender fees. The company will not transfer the IRA to any other investment vehicle. If she takes the cash value, what are the tax implications? Her income last year was ~$30K and her effective combined federal and state tax rate was ~3%. Will she pay 3% on the $500K or the full federal and state rate of 41% (FED ~35 NC ~6)?" 34:55 "If you cash out an annuity, and the company is allowing you to do t

Douglas P. McCormick joins Joe Anderson, CFP® and Alan Clopine, CPA to discuss the framework and premise of his book Family, Inc.: Using Business Principles to Maximize Your Family's Wealth. Also in this hour: Social Security changes for 2017 + answers to financial questions. Original publish date January 7, 2017 (hour 2). Note that content may be outdated as rules and regulations have changed. 6:27 Start of Interview with Douglas P. McCormick Joe: (6:57) "Tell us a little bit about yourself and what made you write the book Family Inc." Douglas: (7:12) "I'm an undergrad from West Point; I was an active duty army officer for five years and after that time decided a military career was not for me, so then I went back to business school at Harvard and graduated with a master's degree in finance and worked on Wall Street for a couple of years. In spite of all that great experience, I never had what I considered to be a good foundation in personal finance. Today, I think financial literacy is one of the biggest problems in America and our traditional education system is not doing a good job of teaching these principles. 7:49 For me, the Family Inc. framework is an elegant way to help people think about all the competing choices that they have out there with their assets and finances." Joe: (8:15) "There are billions of books out there on personal finance and we still have a financial literacy problem. Why is your book different?" Douglas: (8:23) "My objective is not to give you answers, but to teach people how to think so they can get their own answers. What is unique about Family, Inc. is that it provides people with a framework. The premise of the book is that all families could look at themselves as a business. Each family predominately has two big assets – they have their labor assets and they have their financial assets and the name of the game is to manage those assets, to do all the things you want to do in life and when it comes time to retire to have capital to support your consumption. 9:00 "I think the great thing about that framework is that businesses have been dealing with those kinds of decisions for many years…and when you look at the family that way it really allows you to borrow many of those tools and best practices that have been time-tested in business." Al: (9:16) "Doug, give us a sample of what families ought to be looking for or looking to do." Douglas: (9:22) "Let me give you some of the big mistakes. First of all, I think you can't really talk about financial independence or financial security if you're not thinking about how to maximize your labor potential…another thing the book does a good job on is helping people focus on the right time frame…to think about your performance not in terms of how you got paid this year but in terms of lifetime compensation – that's a very important change in time horizon." 10:26 "One of the things I really preach in the book is a family CFO's job is much broader than simply how you manage your investments or how you budget – it's things like managing your risk or training the next generation in the family to be good stewards of your capital and it's things like investment and education and entrepreneurship." Joe: (13:34) "How would you do that calculation to see what the appropriate asset mix is in regards to equities?" Douglas: (13:41) "Both Social Security and labor you can roughly calculate similarly which is you kind of make assumptions about either how long your working career is or how long you're likely to live…then you project your future income with a growth rate and tax rate…and you essentially discount that back with some adjustment for inflation. First of all, on familyinc.com there are calculators for both your labor and Social Security. Second, I promise you the estimate you come up with will be wrong – it's less about projecting a single number and more about thinking about that asset in the context of your overall plan because it's going to be directionally right." Joe: (15:51) "What advice would you give our service men and women?" Douglas: (15:56) "One of my primary objectives for doing the book is to support the military community and veteran community with a good framework to think about navigating transition. First of all, the big thing I'd say for the military community is you have to acknowledge that your circumstances are different from mainstream America, and so your plan must be different…it really starts with understanding those differences – the Family Inc. framework can also be applied to those circumstances." 17:35 End of Interview with Douglas P. McCormick 18:40 "I am currently contributing to a company sponsored 401(k). I contribute 8% (annual salary $60K), which comes out to $4,800 for the year. Can I also set up and contribute to a Roth IRA? If so, what amount can I contribute?" 18:59 "The answer is absolutely yes. With a Roth IRA, you can contribute $5500 per year. If you're 50 and older, you get a $1,000 catch-up so

Editor of Kiplinger's Retirement Report, Rachel Sheedy joins Joe Anderson, CFP® and Alan Clopine, CPA to discuss inherited IRA (individual retirement account) rules & strategies for beneficiaries. Plus, how to become an extreme saver in 2017. Original publish date January 7, 2017 (hour 1). Note that content may be outdated as rules and regulations have changed. Important Points: 04:43 "Let me recap on 2016 – I have a year-end report here. We had a rocky start in the beginning of the year…the first month was the first January in the history of the stock market…" 07:46 "Almost half of the gains happened in just a few weeks - that's why timing markets is so incredibly difficult. No one guessed this." 08:37 "Be fully diversified and make sure that you have the right risks at the right times given your specific goals…to wrap up 2016, it was a wild ride – there were a heck of a lot of different things that happened but at the end of the year if you stayed true to your investment strategy, you probably ended up with a decent year." 11:24 Start of Interview with Rachel Sheedy Joe: (11:57) "What are some things that you're writing about that people should be aware of?" Rachel: (12:00) "There are definitely some key points that heirs really need to be aware of that can really maximize an inherited IRA…a big key is [looking at if there] are there different rules for spousal beneficiaries of an IRA versus non-spouse beneficiaries. Spousal beneficiaries have a lot of leeway – they can essentially take the account as their own. Non-spouse beneficiaries can't do that. They've got more rules that they need to pay attention to." 12:30 "One of the key things they need to know is that they need to re-title the account…they need to re-title it as an inherited IRA and make sure that their name and the decedent's name are listed when they re-title it to make sure they know who is who – that's step number one." Joe: (13:06) "That's right, it has to stay in the decedent's name or it could really blow up on them." Rachel: (13:10) "That's definitely a move people should not make, they should not roll that inherited account over into their own if they're a non-spouse beneficiary. They need to re-title it as an IRA." Joe: (13:20) "When it comes to spouses, what would you talk about in regards to keeping it in the decedent's name or rolling the decedent spouse into their own?" Rachel: (13:32) "One of the big things is whether the surviving spouse is younger than 59 ½. If they're younger than 59 ½ and they need that money, if they keep that account as a beneficiary they can cap it without having to pay the early withdrawal penalty, and that's true for any beneficiary that's capping a traditional IRA." Al: (16:47) "The rules are so complicated when it comes to IRAs…if you're not the spouse then you have to start taking required minimum distributions and a lot of people don't realize it even if you're 20 years old you've got to start taking a required minimum distribution." Rachel: (17:13) "Right, that's a key point. If you want to be able to keep that IRA alive and be able to stretch it out for potentially decades, you need to start taking required distributions. You can also take out more if you wanted to, but if you take out that minimum amount you can keep that IRA going." Al: (17:31) "That's also true for Roth IRAs, because the account owner doesn't have to take a required distribution but a non-spouse beneficiary does, although it's tax-free." Rachel: (17:46) "Roth IRA heirs need to realize that they've got to take distributions even though the owner didn't, but the distributions will be tax-free – they are taxable income if it's a traditional IRA." Joe: (18:00) "Rachel, this is great information. Where can our listeners get more information about you and read up on what you're currently doing?" Rachel: (18:06) "Kiplinger.com is a great resource if you go to the retirement section our cover shows up there. You can search by different topics – IRAs, Social Security, etc." 18:19 End of Interview with Rachel Sheedy 20:02 "These are mistakes that we see those people 55 years and older making, and mistake number one is underestimating longevity." 24:05 "If you find it impossible to save, start at least small – just get the ball rolling." 33:31 "Another thing that people don't think about is the taxation of saving accounts because there are different places to save. You can save in your 401(k) or 403(b) if you have one, you can save in your trust account, savings account, you can save into a Roth IRA or a Roth provision in your 401(k) or 403(b)."

Joe Anderson, CFP® and Alan Clopine, CPA summarize the highs and lows of 2016 in YMYW podcast episode 92, then talk about how to automate and increase your retirement savings, how to create a retirement lifestyle game plan, and steps to take if you plan on moving in retirement. Original publish date December 31, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 01:30 "This year, if you take away any lesson from this [past] year in 2016 when it comes to your investments…is that it's very difficult for you to time the market." 04:52 "That's what investors need to do – they need to look at the long-term and not worry about the day-to-day, month-to-month, quarter-to-quarter because if you have the right investment allocation for you, then let that work." 11:23 "Evaluate your Social Security claiming strategies because we know that you can start collecting as early as 62 but there are downsides there – your full retirement age, for most of you, is 66 unless you're born after 1953 and you can take it as late as age 70. Start thinking about Social Security before you even get there because that's potentially going to be a big chunk of income for you." 15:20 "Evaluate your savings. If you have $500,000 in savings, you probably should plan not to take any more than about 4% per year. This is a rule of thumb – it's called the 4% rule… and doesn't work in all cases…in fact, if you retire younger than 66, you probably don't want to take 4% because you're probably going to run out of money sooner." 22:35 "Pay yourself first – by that, you're saving first before you're spending, and the best way to do that is if you have a 401(k) or 403(b) at your work because it comes right out of your paycheck and you never miss it. Not all of you have 401(k)s, so in that case you'll have to open your own savings account." 26:06 "Understand tax ramifications. This one is missed a lot because you may not even realize this but all the money that you've saved into your 401(k) or your 403(b) or in many cases your IRAs – [when] that money comes out it's taxed at ordinary income rates which is the same rates you're used to paying right now." 33:03 "Get serious about relocation plans. If you plan to move when you retire, find out how much you'll actually net for your house and how much it will cost to move to your new location." 34:30 "In some cases it may make sense to refinance your loan – do that while you're working because you need the income to qualify."

Will a financial advisor give you an unbiased opinion? What's the difference between a TSP and a Roth IRA? Joe Anderson, CFP® and Alan Clopine, CPA answer these questions and more in YMYW podcast episode 91. Original publish date December 17, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:54 "A stretch IRA is a way for your children, when they inherit your IRA, to stretch it over their lifetime…this may go away…if it goes away, we will go back to old rules which means all money in the IRAs needs to be withdrawn within five years, which could put your kids and grandkids in much higher tax brackets." 05:17 "A Roth IRA will grow 100% tax-free. There is no required minimum distribution in a Roth IRA. If you pass with a Roth IRA, then your kids can take those dollars out tax-free. So, it grows tax-free you're your life, your spouse's life and the kids' lives. It's very powerful if you do this right." 06:54 "This is one of the most important times ever to be doing conversions; the unfortunate thing is you have to do it before December 31st for this year." 13:52 "If you're broke, you can always pull out your Roth contribution regardless of what age you are – no tax, no penalty." 15:08 - "I'm in a 30 year fixed mortgage with Wells Fargo. There have been several financial criminal incidents regarding Wells Fargo this past year. Could my mortgage be negatively affected by this as well as the interest rate hike?" 23:03 - "I recently changed my job. My new employer offers a 401(k) plan, but only after I have worked a certain number of hours. So technically, I cannot contribute towards any retirement account. So as to reduce the tax, can I contribute towards my spouse's 401(k), and max out his contributions? We file taxes jointly." 25:09 - "Will a financial advisor provide an unbiased assessment of a financial plan I already have in place? I already have an Investment Advisor connected with an insurance company who handles our investments. I would like to have an independent financial advisor who can provide an unbiased assessment of our financial plan and investments. Is it possible that an advisor would provide this service and what fee might be expected?" 33:33 - "Can I move money from a retirement account to a Roth IRA and what is the process like? Tax ramifications? Do I have to move all of it? 34:36 - "I am a government employee and have a TSP. What is the difference between that and a Roth IRA? A civilian Roth IRA and TSP?"

It's your last chance to lower your tax bill – find out some last-minute moves to save on taxes before year-end. Plus, how are your assets titled? Joe Anderson, CFP® and Alan Clopine, CPA explain why making the wrong move could cost you big time in YMYW podcast episode 90. Original publish date December 17, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 13:52 "The market magnet has begun to pull the long dormant mutual fund investors, so domestic stock funds have seen an estimate net flows of $35.8 billion in the past four weeks (Investment Company Institute)." 14:40 "History tells us that money tends to flow near market peaks…it's interesting how that tends to happen." 15:12 "Now is a really good time to take a look at your overall portfolio, and look at a rebalance strategy. There are a lot of people who set it and forget it, and then the other side of the spectrum is people who day-trade the heck out of their 401(k) plans." 20:44 "I've got five ways to lower your tax bill now, this is from Nerd Wallet and came out on December 14…when it comes to tax planning, a majority of strategies need to be accomplished by December 31st for that tax year." 23:30 "There's a special account called a donor advised fund, where you can set up the account, put your own money into it, and that money will ultimately go to charity, not necessarily this year. Here's the key – the year that you put the money into the account is the year you get the tax deduction." 24:15 "It's a great way to take a deduction when your tax bill is higher." 27:26 "Offset your capital gains with losses." 28:21 "When you tax-loss harvest, here's how you do it properly: you sell the position that's down to create that loss, and then you buy something that's very similar so you're still in the market because the market because the market may come zooming right back." 29:37 "It's important to realize how things are titled when it comes to your assets, especially your retirement assets." 29:55 "A lot of you have named your living trust as the beneficiary of that retirement account…there are pros and cons to this. There's so much misinformation on what people should do. I would say the majority of you who are married should not name your trust the beneficiary of your retirement account unless a) it's a second marriage and you want to preserve those assets if you had kids from a previous marriage; b) second of all, if you're not married and have children and those children might not be able to handle the type of wealth that is inside your retirement account." 34:59 "If I just named my spouse as the beneficiary, she could keep it in my name and take a required distribution if she wanted to, or she could roll it into her own and avoid any type of income coming out of it and being taxed on it and let it grow tax-deferred until her retirement date." 36:54 "A retirement account is completely different than say your brokerage account or checking or savings account. A retirement account has to have a required distribution from it…so be careful with how you name your beneficiaries." 37:12 "The death of the stretch IRA could happen as early as next year."

Would contributions to a traditional IRA reduce your tax burden? How do you start saving money at a young age and what are the benefits of a Roth IRA? Joe Anderson, CFP® and Alan Clopine, CPA answer your email questions in YMYW podcast episode 89. Original publish date December 11, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 02:31 - "Would contributions to our traditional IRAs reduce our tax burden? My wife and I currently have no tax write-offs and our mortgage is paid off on our home. I contribute the maximum to my 403(b), but I also have a traditional IRA and a Roth IRA, as does my wife. We have been contributing to our Roth IRAs over the years to the neglect of the traditional IRAs. I was wondering if it would make sense to start contributing to the traditional IRAs so we can start to decrease our tax burden every year. Of course, the benefit of the Roth would have tax advantages years from now when I retire. My wife and I are both in our late 40s and I have about 10 to 11 years before I think I can retire." 10:52 - "How should I start saving? I just started my first job and they don't provide 401(k)s. What should I do to prepare for life, and to start saving? I've heard a Roth IRA is the way to go. Is this something I want? Other than tax benefits, does it grow?" 15:24 - "What are the tax implications of removing part of my IRA to give to my ex-wife? My ex-wife and I had separate IRAs. We divorced in 2014, but I kept the house. I owe her money in several months as a first payment on the value of the home. What are the income tax issues I will face by removing a large portion of my IRA to hand over to her?" 19:09 - "Will a loss on our sold home off-set taxes on a 401(k) withdrawal? My wife is 65 years old and I will be turning 65 in May 2017. We are planning to move out of California to Las Vegas for good. I will have to withdraw 100% of my 401(k) to put as a down payment to purchase a home in Las Vegas. Then, we plan to sell our house in California which is paid-off. We believe that after the sale, we will have a loss. Would we be able to use that loss to reduce taxes on the 401(k) or IRA withdrawal?" 24:38 - "Will a Trump presidency reduce the tax and regulatory burdens placed on my small business? I own a small business in the New York area and have recently started to work on our 2017 financial projections. I have spoken to a number of friends, family and other small business owners about the ramifications of a Trump Presidency. Although I do not agree with many of his polices, I am hopeful that he will be able to reduce the tax and regulatory burdens of operating a business. When creating my forecast, what should assume and what should I ignore?" 27:35 - "Will I be thrown into a higher tax bracket due to a high ordinary income tax? I reach age 66 in July, full retirement age, and will continue working. I'm considering taking Social Security retirement at 66 and contributing to a 403(b) account to increase the balance. Is the entire amount, Social Security and wages, taxed as ordinary income, so that I will be thrown into a higher tax bracket? Is Social Security income counted dollar for dollar? Would it pay me to invest the max amount in my 403(b)?"

Joe Anderson, CFP® and Alan Clopine, CPA start off YMYW podcast episode 88 with a quick discussion on potential tax changes under Trump. Plus, 12 ways you could go broke in retirement and put yourself at financial risk. Original publish date December 11, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 08:28 "There are things that you want to make sure that you take a look at in regards to your overall retirement planning and tax planning, [including] Roth IRA conversions." 09:00 "Most tax planning strategies have to be finished before December 31st, so now is the season for tax planning." 10:03 "There's a lot of confusion about taxes and what may be coming in the next year with the Trump proposals and GOP proposals." 13:59 "In terms of the Trump proposal – this is also true of the GOP proposal – it would only be three tax brackets, 12%, 25% and 33%." 14:44 "Under the Trump plan, if you're married and your taxable income is below $75,000 you'd be in a 12% bracket – if it's above $75,000 then you're going to move into the 25% bracket and by the time you hit $225,000 you get to 33%." 15:00 "When you look at single taxpayers, it's the same exact thing but cut in half." 17:12 "One of the biggest things I [would consider] from a planning perspective at the end of this year would be if I'm charitably inclined." 17:46 "Charitable donations are really important and big right now because if you are in a higher tax bracket this year or next year or in the next couple of years, you want to take that deduction in a year where you get more tax benefit. There is a way to take future year contributions in the current year and that's by setting up a special account called a donor advised fund." 23:49 "The amount of money that you have in stocks versus bonds has nothing to do with your age…it all depends on when you cash flow, how much income you need and how much it needs to last." 27:08 "Multiple streams of income are better than one." 33:53 "Long-term care – that's going to be a big deal. Most of these companies are totally getting out of the business."

Joe Anderson, CFP® and Alan Clopine, CPA discuss a brief history of the tax code and where it might be headed in YMYW podcast episode 87. Find out some possible tax exemptions and deductions under Trump's presidency; plus, key tax strategies to take advantage of now before the tax code could change. Original publish date December 3, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 02:35 "Over the decades, Congress simply amended the tax system by adjusting and assessing new taxes in a series of 17 internal revenue acts. By 1939, the series of tax rules became the first formal internal revenue code. 15 years later was the first real tax reform….tax rates got as high as 91%." 03:51 "It was in the Fifties that the alternative minimum tax came into play, and that was really designed for the wealthiest of people." 05:50 "There's Trump's plan, and then there's the GOP plan – there are similarities but [also] some pretty big differences." 08:02 "Tax reform is not a slam dunk, even though we have a Republican president and a Republican majority in the House and Senate." 09:50 "Here's a quick nutshell on the ordinary income tax basis; this is what the proposal is. Right now we have seven brackets. They (GOP) wants to break it down to three. We have a 10%, 15%, 25%, 28%, 33%, 35% and 39.6% bracket. They want to combine the 10% and 15% bracket and call it 12%. Then they'll combine the 25% and 28% tax bracket and call it 25%. Anything over the 25% tax bracket they're calling it 33%." 11:19 "Under Trump, he would like the standard deduction to be $15,000 for an individual and $30,000 for a married couple." 15:01 "Capital gain rates right now are 0%, 15% and 20% depending on what your income levels are." 18:07 "If you are in the 10% or 15% tax bracket today, if you sell that asset there is no tax up to the top of the bracket. Here's a simple example…" 21:48 "You have to understand that things might be changing here, for the good or for the worst depending on what your overall situation is. Get an grasp on your overall situation before the end of the year to make sure you can take advantage of anything you should be taking advantage of this year and set yourself up appropriately for whichever changes may or may not happen." 26:50 "There are two main proposals on the table right now: the Trump plan and the House GOP plan. They both want to change the way we deduct itemized deductions." 27:50 "A donor advised fund is kind of like a mini private foundation..." 30:09 "One of the real benefits of the Roth conversion is for you and potentially your beneficiaries will potentially get all of that money tax-free." 33:48 "Net unrealized appreciation is another one that's probably on the chopping block. That's taking stock out of your retirement account, moving it into a brokerage account to enjoy capital gains tax."

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."