Your Money, Your Wealth

Just in time for the holidays, the Setting Every Community Up for Retirement Enhancement Act, or SECURE Act, has been made law, effective January 1, 2020. Joe and Big Al explain what it means for your stretch IRAs, required minimum distributions, retirement savings and more. Plus the fellas answer your questions on self-employed small business retirement plans and paying off the mortgage. Ask money questions, read the transcript & access free financial resources: http://bit.ly/YMYW-253

Joe and Big Al answer questions about coordinating Social Security benefits with Roth contributions and required minimum distributions, weighing the Social Security restricted application against survivor benefits, the Windfall Elimination provision for teachers, whether to take RMDs from a brokerage IRA or an annuity - and of course, Joe will explain why that annuity is a terrible idea - and the fellas get into how to split an inherited annuity four ways and how to split a house eight ways! Ask money questions, read the transcript & access free financial resources: http://bit.ly/YMYW-252

How much of a Roth conversion should you do and when? Does it make sense to convert to a Roth IRA all in one year, or to do it over time, based on your age? Joe and Big Al explain the reasoning behind their answer to this common retirement investing question. Plus, they answer your questions about converting from a thrift savings plan (TSP) to a Roth, limits when contributing to retirement accounts and a traditional IRA, and doing the tax math to decide if a Roth conversion is right for you. Ask money questions, read the transcript & access free financial resources: http://bit.ly/YMYW-251

Tanja Hester (called the Matriarch of the women's FIRE movement by the New York Times) returns to YMYW to discuss the value of our time, how it's connected to our money, and the options financial independence provides for a life well-lived. Plus, Joe and Big Al answer questions about the balanced asset allocation strategy, taking a pension and another job AND Social Security, and what to do when your company changes 401(k) custodians. Ask money questions, read the transcript & access free financial resources: http://bit.ly/YMYW-250

How do you figure out the break-even point on a Roth IRA conversion? Joe and Big Al discuss whether to convert, how much to convert, and when. Plus, the step-up in basis on a primary residence, self-employed small business retirement plan options, the difference between a financial advisor and financial planner, and defining a registered investment advisor and broker-dealer. Ask money questions, read the transcript & access free financial resources: http://bit.ly/YMYW-249

Will a Roth IRA conversion be impacted by your Social Security benefit or vice versa? Plus, today we're talking Social Security spousal and survivor benefits, Roth IRA conversions, earned income, ordinary income, modified adjusted gross income, and taxable income. We're also talking about taking this job, shoving it, and doing Roth conversions all the way to Tennessee! Ask money questions, read the transcript & access free financial resources: http://bit.ly/YMYW-248

Cameron Huddleston discusses her book, Mom and Dad, We Need to Talk: How to Have Essential Conversations With Your Parents About Their Finances. But first, let's get into glide path: should you invest more aggressively through retirement? Which assets should you spend before you take Social Security? What should your portfolio withdrawal strategy be if you don't plan to retire? And when asked how to pay taxes on a Roth conversion, Joe and Big Al make a suggestion rarely heard on YMYW (hint, it involves debt and your primary residence). Ask your money questions, read the transcript, and access free financial resources at http://bit.ly/YMYW-247

We tackle Indexed Universal Life Insurance one more time. And you may have heard that millionaires "buy term and invest the rest" to pay estate taxes, but is it a good idea? When you have appreciated company stock, how much should you "NUA" and when, and how do you deal with the taxes? Plus, can you convert an inherited 401(k) to a Roth? When is your required beginning date for RMDs? Ask your money questions, read the transcript, and access free financial resources at http://bit.ly/YMYW-246

Should you stay or should you go? Joe and Big Al weigh in on whether a couple of listeners who are dissatisfied with their financial advisors should ditch or keep the advisors. Plus, how should you choose investments in your 401(k)? Is it a good idea to make Roth contributions for your kids? How do you manage taxes and penalties because of Roth conversions? Ask your money questions, read the transcript, and access more free financial resources at http://bit.ly/YMYW-245

Social Security strategies if you are married to a younger spouse and have a minor child, affected by the windfall elimination provision, considering divorce for a better benefit, or unsure of the restricted application. And should you spend 401(k) money before taking Social Security? Next up, real estate: should you gift property now to reduce taxes later? Should you pay off your home? And the section 121 exclusion of gain from the sale of a principal residence on a split property. Transcript, show notes, and free financial resources: http://bit.ly/YMYW-244

Is indexed universal life insurance good for estate planning, investing or as a tax shelter for high-income earners? Should you pay down debt or save if you only have $100K saved for retirement at age 66? Should extra money be invested in your 457 or brokerage account? ETFs or mutual funds? And with the new tax laws scheduled to sunset in 2026, does it make sense to do a giant Roth conversion in 2025? Transcript, free resources, and show notes: http://bit.ly/YMYW-243

You've sold your primary residence or your rental property. How should you invest real estate proceeds for retirement? When do Joe and Big Al say you shouldn't do a Roth conversion? What's the math on federal vs state taxes when doing a Roth conversion if you move to a no income tax state? And how is your pension taxed if you move? Transcript, free resources, and show notes at http://bit.ly/YMYW-242

Your Roth IRA questions answered: when should you do a Roth conversion? Should you wait until you're in retirement to convert? What kind of income is it? How do you convert slowly so the tax bite doesn't hurt so much? How long do you have to work before you can contribute to a Roth IRA? Does the 5-year rule apply for Roth withdrawals after age 59 1/2? Plus, answers to non-Roth money questions about estate planning, reverse mortgages, transferring from a variable annuity to a traditional IRA, and using HSA funds to pay Medicare premiums. Transcript, free resources, and show notes at http://bit.ly/YMYW-241

Choose FI: Your Blueprint to Financial Independence authors Chris Mamula (CanIRetireYet.com), Brad Barrett and Jonathan Mendonsa (Choose FI podcast) share principles that can change your life and your idea of retirement. Plus, answers to your FIRE (financial independence / retire early) questions on bridging the gap between early retirement and tapping retirement accounts, balancing ACA subsidy eligibility against allocation decisions, options trading, and just how much Roth savings is right for you. Transcript & show notes: http://bit.ly/YMYW-240

This week's questions all revolve around what to do with your money - and everyone's circumstances are different. What to do with a 401(k) after you retire and don't really need the money just yet? What to do with cash in savings? Is the Papa Bear portfolio a good one? How best to save for retirement when you're a sole proprietor AND a teacher? How to handle the basis in an s-corporation you're closing down? Transcript, free financial resources, and show notes: http://bit.ly/YMYW-239

An entire episode dedicated to money questions that run the gamut: we're talking about using indexed universal life insurance to insure future income, buying mutual funds or ETFs in an IRA, Roth contributions and conversions, changes to the thrift savings plan, doing a reverse mortgage leading into a possible recession, the Mega-Backdoor Roth strategy, what happens to retirement accounts in a divorce and more. Transcript, free financial resources, and show notes: http://bit.ly/YMYW-238

Back to investing basics: what makes for a wise investing philosophy while on the market volatility roller coaster? How do you find a financial fiduciary? How do you avoid people with bad financial intentions? What is a good investment policy statement? How do you figure out the annual percentage rate on an IRS payment plan? When should a teacher retire, and what should she do with her pension? Plus some Roth conversion talk, as you'd expect. Transcript & show notes: http://bit.ly/YMYW-237

What's a safe withdrawal rate from your investment portfolio when that money has to last 50 or 60 years because you're part of the FIRE (financial independence/retire early) movement? Karsten Jeske, Ph.D., CFA, aka "Big Ern" from EarlyRetirementNow.com shares his experiences. Plus, will listener Paul reach $5M by retirement? Can monthly payments from an IRA annuity be used for qualified charitable distributions (QCDs)? And what happens if you've made mistakes with your IRA that lead to penalties? Transcript, resources & show notes: http://bit.ly/YMYW-236

An inverted yield curve has often led to a recession. Pure Financial Advisors' Executive Vice President and Director of Research, Brian Perry, CFP®, CFA, discusses the current state of the markets and he helps answer some questions from our 2019 YMYW podcast survey: are structured notes ever a good product? How can you make the most of small retirement contributions? How do you grow a portfolio, when should you rebalance, how should you invest, and what's a safe withdrawal rate? Transcript, resources & show notes: http://bit.ly/YMYW-235

ENTER TO WIN A $100 AMAZON GIFT CARD! US residents, fill out our podcast survey by August 18: https://www.surveymonkey.com/r/2019ymyw The revamped 2019 tax "postcard," how the SECURE Act could be a tax problem for those with IRA trusts, and is indexed universal life insurance a good investment for education costs? Should you roll your 401(k) to an IRA? How much can you convert from 401(k) to Roth after age 70 and a half? Will you go to jail for filing your taxes before receiving form 5498? Transcript, free financial resources, and show notes: http://bit.ly/YMYW-234

Private equity, venture capital, hedge funds, real estate investment trusts (REITs) and angel investing: Joe breaks down what these alternative investments are and whether they belong in your portfolio. Plus, the fellas talk about risk parity investing, net unrealized appreciation, what to do with a large settlement and the break-even point for Social Security benefits. Transcript, free financial resources & show notes: http://bit.ly/YMYW-233

Jonathan Clements (founder, HumbleDollar.com, former Wall Street Journal personal finance writer) on portfolio rebalancing, reducing risk and doing a Roth conversion. Plus, Joe and Big Al answer your money questions: when is the best time to get into the market? When is the best time to retire? Can you start a Roth IRA for your Dad? And should you roll your 401(k) into a traditional or Roth IRA? Finally, some YMYW compliments and complaints. Transcript & show notes: http://bit.ly/YMYW-232

According to Dr. Chris Thornberg of Beacon Economics, the US economy and real estate market are currently extremely healthy, so we should appreciate it and focus now on fixing the retirement crisis we're facing in 10-15 years. Plus, Joe and Big Al answer your money questions: Why is owning a home considered "profitable"? Is it a good idea to own real estate in a self-directed IRA? And should you buy a fixed index annuity? Transcript & show notes: http://bit.ly/YMYW-231

Does the media impact financial markets and the economy? Oliver Renick (TD Ameritrade Network) has ideas on how we can best make use of what the media tells us about the financial world. Plus, where should bonds be allocated to lessen the tax burden? Should you contribute to a Roth 401(k) or traditional 401(k)? And a call from a listener with a strong opinion on the FIRE movement (financial independence/retire early). Transcript & show notes: https://link.chtbl.com/ymyw-230

Joe Anderson, CFP® and Big Al Clopine, CPA answer your questions on Social Security disability, the file and suspend strategy, IRA contributions and Roth conversions, estimated tax, estate tax, gift tax, Social Security tax, the qualified business income deduction, selling appreciated stock, and whatever else they can jam in. Transcript & show notes: http://bit.ly/YMYW-229

"If we're heading to a recession, we're already in it." Liz Ann Sonders (Chief Investment Strategist, Charles Schwab & Co.) shares her mid-year market insights and provides strategies for removing the emotion from investing, regardless of market conditions. Plus, Joe and Big Al answer your money questions: how do you diversify a portfolio for the best returns and tax efficiency? And when does it make sense to do a traditional 401(k) instead of a Roth 401(k)? Transcript & show notes: http://bit.ly/YMYW-228

Rick Durso tells us what his retirement hustle is like as a caddy for the Symetra golf tour, helping golfers make it to the Ladies Professional Golf Association (LPGA). Plus, Joe and Big Al answer your money questions about Roth conversions, solo 401(k) plans for the self-employed, and they get taken to task for something they said in last week's episode on Medicare. Transcript & show notes: http://bit.ly/YMYW-227

Danielle Kunkle Roberts of BoomerBenefits.com on Medicare basics, parts A to D, signing up, common mistakes, Medigap vs. Medicare Advantage, recent improvements to Medicare, and the future: will Medicare For All or Medicare At 50 become reality? Plus, Joe and Big Al answer your money questions: are health insurance premiums deductible? And when do you pay taxes to the IRS when you plan your charitable donations over multiple years? Transcript and show notes: http://bit.ly/YMYW-226

The Land Geek Mark Podolsky shares his method for turning unwanted dirt and "rock farms" (aka raw land) into cash. Plus, can you aggregate rental properties into an LLC to take advantage of the qualified business income deduction? And can you avoid state taxation on your required minimum distributions (RMDs) if you move to a state that doesn't tax retirement accounts? Transcript & show notes: http://bit.ly/YMYW-225

Professor Jamie Hopkins (Carson Wealth & Heider School of Business/Creighton University) talks about impacts the SECURE Act could have on retirement planning - particularly the end of the stretch IRA provision, which allows inherited individual retirement accounts to remain tax-deferred. Plus, how to reduce taxes when you have significant capital gains, when you can take tax-free and penalty-free 457 distributions, and whether or not to max out your 401(k). Transcript & show notes: http://bit.ly/YMYW-224

Travis Shakespeare, Director and Executive Producer of Playing with FIRE, talks about making the first-ever documentary about the Financial Independence / Retire Early or FIRE movement. Plus, Joe and Big Al answer your rental real estate investing questions and clear up some confusion around Roth 401(k) income limits and contributions vs. conversions. Transcript and show notes: http://bit.ly/YMYW-223

Dr. Sarah Stanley Fallaw (co-author, The Next Millionaire Next Door) shares her research into how millionaires become wealthy, and what has changed since her father, Thomas J. Stanley, wrote his groundbreaking book The Millionaire Next Door in 1996. Plus, what should you do with universal life insurance policies with large cash values? Will you pay income tax on a Roth conversion made after you move from California to a no-income-tax state like Texas? Transcript & show notes: http://bit.ly/YMYW-222

Economist Dr. Allison Schrager, the author of An Economist Walks Into a Brothel, explains how the risk management techniques of surfers, prostitutes, magicians, and soldiers might relate to our own investing and retirement planning. Plus, stocks or bonds - does it matter which assets you withdraw first from your retirement portfolio? And how much can you convert to a Roth IRA without incurring the 3.8% Medicare surcharge? Transcript & show notes: http://bit.ly/YMYW-221

Joe & Big Al answer your questions: from filed-and-suspended Social Security, living off of your investments overseas before taking Social Security, and transitioning from disability to regular Social Security, to how the sale of appreciated company stock or a Roth conversion will change your tax bracket, and what you need to do to prove a change to your state of residency. Plus, the fellas explain how the pro-rata rules for Thrift Savings Plans have changed. Transcript & show notes: http://bit.ly/YMYW-220

Gid Pool took a standup comedy class 13 years ago at age 61 on a lark. He shares the story of his retirement hustle, traveling the US and 50+ countries as a standup comic, inspirational speaker, and the author of Act II and Beyond: Making the Rest of Your Life Spectacular. Plus, Joe and Big Al follow-up on ERISA protection for SEP IRAs, they discuss the Qualified Business Income Deduction for owners of rental real estate, and they offer financial tips and investing ideas for high school grads and college students. Transcript & show notes: http://bit.ly/YMYW-219

Kristin Wong (author, Get Money, columnist, Joint Accounts @ Medium.com) talks about relationships and money and how communication, specificity, and gamification can improve your financial life. Joe and Big Al answer your money questions: should you increase your Roth 457 contribution when your spouse wants to retire 8 years before you? Does a SEP IRA have the same protections as a 401(k)? Must a company allow third-party management of a 401(k)? Plus, Big Al admits he answered a question incorrectly last week. Transcript & show notes: http://bit.ly/YMYW-218

Top apartment broker Terry Moore, CCIM talks about using rental real estate not just to build wealth, but also to create a life worth imitating. Joe and Big Al answer your questions: can excess scholarship money be contributed to a Roth IRA? Will stock and bond income affect Social Security benefits? The fellas also do a couple of retirement assessments on the fly to help listeners generate and maximize retirement income while minimizing taxes. Transcript & show notes: http://bit.ly/YMYW-217

Ashley Patrick (former police detective and creator of BudgetsMadeEasy.com) on how debit card fraud happens, what to do when your ATM card is compromised, and ways to avoid it happening in the future. Plus, Joe & Big Al answer your money questions: how do you determine a good pre-tax to Roth savings ratio? Are trading apps and online trading services a good idea? Can you "retire," take money from your retirement plan, then return to work for the same company? And the age-old pension question: should you take the lump sum or the monthly annuity payment? Transcript & show notes: http://bit.ly/YMYW-216

David Carlson (author, Student Loan Solution) discusses the student loan debt crisis and President Donald Trump's plan to fix it, and Joe and Big Al answer listeners questions about contributing to a retirement plan without an employer match, doing in-plan Roth conversions, changing retirement accounts to protect investment properties and more. Transcript and show notes: http://bit.ly/YMYW-215

Brian Portnoy, Ph.D., CFA® (author, The Geometry of Wealth) on the difference between being rich and wealthy, and how to achieve both. Plus, what about tax brackets? Joe and Big Al respond to a challenge of their critique of Ric Edelman's critique of the Roth IRA. And they answer questions that stress the importance of understanding financial vocabulary in retirement planning: Roth contributions vs. conversions, the Roth 5-year clock, and the difference between transfers and rollovers. Transcript & show notes: http://bit.ly/YMYW-214

Joe and Big Al discuss 7 changes to your Social Security for 2019. No, wait, six changes. Well actually, it's more like 5 changes and a useful tidbit. Plus, when to claim your spousal benefit, whether to buy long-term care insurance or self-insure, how to get more growth in your portfolio without adding more risk, and where to keep your emergency funds. Transcript and show notes: http://bit.ly/YMYW-213

Ric Edelman has some strong arguments against the Roth IRA. Joe & Big Al, aka "The Roth Brothers," offer their thoughts. Plus, understanding basis when it comes to Roth conversions. And what happens if you've already contributed, but by the end of the year you've exceeded the income limitation for Roth contributions? Can you open a Roth for your 12-year-old whose raking in babysitting bucks? What happens to your Roth when you die? It's an all Roth IRA episode! Transcript & show notes: http://bit.ly/YMYW-212

Tanja Hester (OurNextLife.com, award-winning financial independence blog) talks about her new book, Work Optional: Retire Early the Non-Penny-Pinching Way. Joe and Big Al answer questions about whether kids will inherit a Roth IRA tax-free, the rules around a traditional IRA rollover, investing in a Vanguard target date fund, and where to safely invest for growth. Transcript and show notes: http://bit.ly/YMYW-211

Behavioral finance expert Dr. Daniel Crosby talks about his latest book, The Behavioral Investor and cracks us up with stories of how "having to go" and other physiological, sociological, and psychological factors influence our investing choices. Plus, Joe and Big Al answer money questions about ACA subsidies and Roth conversions, strategies for reducing the tax burden on 1099 income to zero, and donating a required minimum distribution to multiple charities. Transcript and show notes: http://bit.ly/YMYW-210

Nationally recognized investing expert Paul Merriman makes the case that owning just two funds for life is a "home-run" investing strategy for some investors. Plus, Joe and Big Al answer your money questions: how should teachers, and others without Social Security or pension, save for retirement? How do you record flexible spending account contributions on your taxes? How long should you keep your tax records? And of course, this wouldn't be YMYW without some talk about Roth IRAs - specifically, making Roth conversions and back door Roth contributions. Transcript & show notes: http://bit.ly/YMYW-209

Did you know there are over 2,700 rules governing Social Security benefits? File and suspend vs restricted claim... the list goes on! Mary Beth Franklin (InvestmentNews contributing editor, "The Goddess of Social Security") goes deep on spousal Social Security claiming strategies after Joe, Big Al and Andi tackle a couple Social Security disability and spousal benefits questions on their own. Mary Beth caps also explains the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). Transcript & show notes: http://bit.ly/YMYW-208

Grant Sabatier (author, Financial Freedom) share some of the steps that led him from $2.26 in the bank to over a million bucks in just 5 years, and the myth that he believes is the #1 barrier keeping the rest of us from achieving the same thing. Plus, a conversation about Senator Elizabeth Warren's wealth tax proposal, Joe and Big Al answer a question about keeping taxes in mind as part of an investing strategy, and a look at the complete disaster that was the Fyre Festival. Transcript and show notes: http://bit.ly/YMYW-207

Larry Swedroe (Buckingham Strategic Wealth) talks about his 16th book, Your Complete Guide to a Successful and Secure Retirement, the two biggest retirement mistakes, and what Larry calls the five horsemen of the retirement apocalypse. Plus, is there a way to consolidate your investment portfolio before you retire and avoid paying capital gains tax? Also, dancing to stave off dementia, the world of golf, and China and Brexit news - but probably not what you're expecting. Transcript and show notes: http://bit.ly/YMYW-206

Chris Hogan of Ramsey Solutions talks about his brand new book, Everyday Millionaires: How Ordinary People Built Extraordinary Wealth – and How You Can Too. Joe and Big Al answer your money questions: do the stretch IRA rules apply to 401(k)s? Do you need to get an annual property appraisal if you own real estate in a self-directed IRA? And what is the best strategy for saving into retirement accounts and making Roth IRA conversions? Plus, a tribute to Jack Bogle of Vanguard, and a look at states' efforts to develop financially literate high school students. Transcript and show notes: http://bit.ly/YMYW-205

Liz Ann Sonders (Chief Investment Strategist, Charles Schwab & Co.) provides insight on what happened in the market in 2018 and her outlook for 2019. Liz Ann discusses the causes of recent market volatility, the Fed funds rate, the possibility of a recession in 2019 and what investors should do now. Plus, Joe and Big Al answer your email questions: If you're saving 55% of your income, should you keep saving or have more fun? Should you save for kids' college or your own retirement? Isn't deciding when to take Social Security a lifestyle choice? Finally, a look at how the gurus fared with their 2018 market predictions. Transcript & show notes: http://bit.ly/YMYW-204