Your Money, Your Wealth

Last-minute tax questions answered: should Brad in Wahoo, NE save to his regular 401(k) instead of his Roth 401(k) so he can claim the American Opportunity Tax Credit? Should Jennifer and Zeke in NY set up a Roth IRA and file taxes for their 13-year-old that's got some earned income? Does Cindy in San Diego have to report her Medicare Advantage over-the-counter medication benefit on her taxes? And should our buddy Carl Spackler wait until the new year to deposit his rollover check? Plus, Em in FL needs ideas for moving her Mom from a low-cost-of-living area to a high-cost-of-living area, Wannabe Landlord wonders about creating an LLC for his real estate, and can CJ in FL and IN report pro-rated real estate expenses on schedule E? Finally, the 5-year rule on Roth withdrawals once again, this time for Brutus Buckeye, and Bruce from Joisey is back, this time he wants to pay cash for a car.

Timestamps:

• 01:08 - American Opportunity Tax Credit and Other Tax Strategies (Brad, Wahoo, NE)
• 05:07 - Tax Filing for 13-Year-Old With Earned Income (Jennifer & Zeke, NY state)
• 09:47 - HSA: The Last Month Rule for Health Savings Accounts (JZ, New York)
• 13:01 - Income Tax and Sales Tax Explained (Cindy, San Diego - North County)
• 16:23 - Deposit Rollover Check After New Year to Avoid the Pro-Rata Rule? (Carl Spackler, FL)
• 21:12 - Strategies for Mom to Move from LCOL to HCOL Area (Em, FL)
• 26:28 - LLC For Real Estate Investment Properties? (Wannabe Landlord)
• 28:28 - How to Report Pro-Rated Real Estate Expenses on Taxes (CJ, Florida & Indiana)
• 32:22 - 5-Year Roth IRA Withdrawal Rule - Sigh (Brutus Buckeye, Columbus, OH)
• 37:41 - Should I Pay Cash for a Car? (Bruce, Joisey)
• 43:15 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-457

• Reduce Your 2023 Taxes With These End-of-Year Tax Planning Strategies (free on-demand webinar)
• End-of-Year Tax Strategies Guide
• DIY Retirement Guide (LIMITED TIME OFFER! Download by Friday, Dec. 1, 2023!)
• Episode Transcript
• Ask Joe & Big Al On Air for your Retirement Spitball Analysis

Planning to retire early? Joe and Big Al spitball on bridging the gap to your retirement income when there's a pension in the mix, today on Your Money, Your Wealth® podcast 456. Manley and his wife are in their early 50s and have teacher's pensions. Can they retire in 2 and a half, or even one and a half years? Can Bucky in the Midwest retire in 2024, and can Henry Karl Kittensburg III retire in about 3 years, with all the milk his heart desires? How should Paul in Houston choose his pension options for early retirement? Is Greg in Southern California's CalSTRS teacher's pension enough for his retirement? Keaton Money in Colorado needs the fellas to help him decide between his pension's fringe benefits and brokerage account returns, and big Paw in a mid-Atlantic state asks for a spitball on how to reduce taxes on an impending headcount reduction lump sum payout.

Timestamps:

• 00:58 - Early 50s, Teacher's Pensions. Can We Retire Early in 1.5 or 2.5 Years? (Manley, Nashville)
• 08:17 - How to Choose Pension Options for Early Retirement (Paul, Houston, TX)
• 18:25 - Is CalSTRS Teacher's Pension Enough in Retirement? (Greg, Southern California)
• 22:02 - Am I In Good Shape to Retire in 2024? (Bucky from the Midwest)
• 23:32 - Pension Fringe Benefits vs. Brokerage Account Returns (Keaton Money, CO)
• 32:00 - Can We Retire at Age 59? (Henry Karl Kittensburg III, Western OH)
• 40:42 - How to Reduce Taxes On a Headcount Reduction Retirement Lump Sum Payout? (Big Paw, mid-Atlantic state)
• 50:50 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-456

• Retirement Income Strategies Guide
• EASIretirement.com free retirement calculator
• Episode Transcript
• Ask Joe & Big Al On Air for your Retirement Spitball Analysis

Steve & Sharon in Minnesota are high earners - can they get more money into their Roth IRA without paying more tax? Should Fred in western New York do Roth conversions before required minimum distributions kick in? If Mike in Utah saves on healthcare premiums now, will that mean large RMDs and tax bills for him later? Should Mark in Maryland do a backdoor Roth after maxing out his 401(k)? And should Joseph in Kansas contribute to his new employer's traditional or Roth 401(k)?

Timestamps:

• 00:49 - Should We Do Roth Conversions Before RMDs Kick In? (Fred, western NY)
• 10:22 - Will Saving on Healthcare Premiums Now Mean Large RMDs and Tax Bills Later? (Mike, UT)
• 19:36 - Where to Invest After Maxing Out 401(k)? Backdoor Roth? (Mark, MD)
• 28:04 - How to Get More into Roth Without Paying More Tax? (Steve & Sharon, Roseville, MN)
• 39:24 - Roth 401(k) or Traditional 401(k) With New Employer? (Joseph from Wichita, KS)
• 47:08 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-455

• End-of-Year Tax Planning Webinar - live and free, tomorrow Nov 15, 2023, 12pm Pacific, 3pm Eastern - register now!
• How to Build a Recession-Proof Portfolio - YMYW TV
• Recession Protection Guide - free download
• Episode Transcript
• Ask Joe & Big Al On Air for your Retirement Spitball Analysis

Will Ron and Candy in Connecticut ever be able to retire, and are Bruce and Selina in Philly saving enough to retire? That's today on Your Money, Your Wealth® podcast 454 with Joe Anderson, CFP® and Big Al Clopine, CPA. Plus, are Pebbles and Bam Bam in Kentuckystone missing anything when it comes to using their brokerage account to pay Roth Conversion taxes? And Susan in San Diego is 55, spends about $36K a year, and has almost a million saved - can she retire yet? And finally, our buddy Will knows he shouldn't time the market, but….

Timestamps:

• 00:50 - Will We Ever Be Able to Retire? (Ron, CT)
• 09:54 - Are We Saving Enough to Retire? (Bruce and Selina, Philadelphia)
• 17:36 - What Am I Missing? Brokerage Account Spitball (Pebbles & Bam Bam, Kentuckystone)
• 27:05 - Nearly $1M at 55, Spending $36k/Year: Can I Retire Early? (Susan, San Diego)
• 31:36 - I Know We Shouldn't Time the Market, But… (Will)
• 40:46 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-454

• How to Cruise Into Your Retirement - YMYW TV
• Cruising Into Retirement Checklist - download by this Friday!
• EASIretirement.com free retirement calculator
• Episode Transcript
• Ask Joe & Big Al On Air for your Retirement Spitball Analysis

Can Jessie and Becky in Iowa retire now at age 52? Should Robert and his wife file their taxes separately, to pay less tax on their required minimum distributions? Can Joe and Al validate Mike in Minnesota's retirement plan, and does a backdoor Roth make sense for him? How in the world will Mike in New York be able to retire at a reasonable age? And what will retirement income look like for Marty in San Diego? Just spitballs here, no retirement advice!

Timestamps:

• 00:49 - Can We Retire Now at Age 52? (Jessie and Becky, IA)
• 10:09 - Should We File Taxes Separately to Minimize Taxes on RMDs? (Robert)
• 19:56 - Validate Our Retirement Plan: Does a Backdoor Roth Make Sense? (Mike, MN)
• 25:11 - How in the World Am I Going to Retire at a Reasonable Age? (Mike, Utica, NY)
• 29:19 - What Will Our Retirement Income Look Like? (Marty, San Diego)
• 35:06 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-453

• Retirement Readiness Guide - free download
• Retirement Pop Quiz - how well do you know retirement?
• EASIRetirement.com - free retirement calculator
• Episode Transcript
• Ask Joe & Big Al On Air for your Retirement Spitball Analysis

Why does Becca in Florida's advisor "poo-poo" her strategy for funding 529 plans for education? Keith, commenting on Spotify, wants to know about reimbursing yourself from a 529 plan for the scholarship amount used for education without penalty, and Wendy way up in New York wants to know if she should use retirement funds to pay for college and home renovations. Plus, what are the pros and cons of starting Roth conversions for Renee in Wisconsin, and is she on track for retirement? Will the IRS penalize Dan in Michigan for not paying Roth conversion tax in January? With the 5-year Roth clock, how does compounding interest work when Aaron in Ohio changes custodians? And Kirk in Iowa wonders how the Affordable Care Act tax credit works with dependents.

Timestamps:

• 00:55 - Why Doesn't My Financial Advisor Want Me to Fund 529 Plans? (Becca, FL)
• 08:19 - Is 529 Plan Self-Reimbursement for Scholarships Okay? (Keith)
• 10:22 - Should We Use Retirement Funds to Pay for College and Home Renovations? (Wendy, way up in north NY)
• 18:11 - Pros and Cons of Starting Roth Conversions: Are We On Track for Retirement? (Renee, WI)
• 28:58 - Is the IRS Going to Penalize Me For Not Paying Roth Conversion Tax in January? (Dan, Milford, MI)
• 30:38 - Roth 5-Year Clock: Compounding Interest on Rolled Over Retirement Accounts (Aaron, OH)
• 32:19 - How Does the Affordable Care Act Tax Credit Work with Dependents? (Kirk, IA)
• 37:11 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-452

• ABCs of College Funding - free download
• Money Saving Tips fro Funding College - YMYW TV
• How to Save for Education; 529 Plan, Coverdell, Prepaid Tuition and More - on-demand webinar
• Episode Transcript
• Ask Joe & Big Al On Air for your Retirement Spitball Analysis

Should Jim in New Jersey do the YMYW-infamous Megatron (the Mega Backdoor Roth IRA) or use his Roth 401(k) - and how can he keep bonds out of his Roth accounts? Joe and Big Al discuss the January first start date when it comes to the 5-year rule on Roth conversions for Nancy in Wisconsin, and they spitball on those Roth clocks for withdrawals and tax-efficient investments for Johnny Mercer in Savannah, GA, who also wants to know the pros and cons of bonds vs. bond funds vs. CDs. Plus, should Brad in St. Louis incorporate bonds into his investment portfolio, given the fact that he will have pensions and Social Security providing 5 streams of fixed income in retirement?

Timestamps:

• 00:58 - The Megatron: Mega Backdoor Roth IRA vs. Roth 401(k) (Jim, NJ)
• 14:42 - 5-Year Rule on Roth Conversions: How Does January First Default Start Date Apply? (Nancy, WI)
• 19:43 - 5-Year Rule on Roth Conversions vs. Tax-Efficient Investments, Bond Funds Vs. Bonds Vs. CDs (Johnny Mercer, Savannah, GA)
• 32:42 - What's the Best Strategy for Incorporating Bonds into Our Retirement Portfolio? (Brad, St. Louis)
• 40:09 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-451

• Complete Roth Papers Package - includes the Roth Basics Guide, the 5-Year Rules for Roth IRA Withdrawals, and the Ultimate Guide to Roth IRAs
• 10 Steps to Improve Investing Success
• Investing Basics Guide
• Episode Transcript
• Ask Joe & Big Al On Air for your Retirement Spitball Analysis

How much can you safely spend in retirement? Is the four percent rule outdated? Joe and Big Al spitball on a safe retirement distribution rate for those in the 55-60 age range for Clay in Ohio. They also spitball on withdrawal rates when there's a pension in the mix for Jonny and June in the Bay Area of California, and for William in Maryland, who is concerned he might be exposing himself to sequence of returns risk by spending too much in early retirement. Plus, when does Dan have to take required minimum distributions from the IRA he inherited from his Dad in 2021? Finally, Wayne in San Diego wants to know how to protect his bank accounts from FedNow, the Federal Reserve's new peer-to-peer payment system.

Timestamps:

• 00:53 - What's a Safe Retirement Distribution Rate? (Clay, OH)
• 07:57 - Can We Retire at Ages 50 and 48? (Johnny & June, East Bay, CA)
• 19:01 - Spitball My Retirement Withdrawal Rate (William, MD)
• 24:50 - When Am I Required to Take Money From My Inherited IRA? (Dan)
• 28:54 - How to Protect Money From FedNow? (Wayne, San Diego)
• 32:37 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-450

• Withdrawal Strategy Guide - free download
• Withdrawal Trap Doors: How to Avoid Them! YMYW TV
• Episode Transcript
• Ask Joe & Big Al On Air for your Retirement Spitball Analysis

What should Martin do about his outrageously fee-heavy 403(b) plan? Should EF hedge his pre-tax non-qualified 415 excess plan? What should Max do with his old TIAA plan, and what are the pros and cons of a cash balance defined benefit plan for self-employed people like Brent Money? Plus, Mike needs Joe and Big Al's spitball on the highly compensated employee rule and excess 401(k) contributions, and the fellas explain how employee stock purchase plans are taxed for Big Cheese Bob the Tomato.

Timestamps:

• 00:55 - What to Do About My Outrageous Fee-Heavy 403(b)? (Martin, Miami, FL)
• 05:56 - Should I Hedge My Pre-Tax Non-Qualified 415 Excess Plan? (EF, Kansas)
• 14:25 - What to Do With My Old TIAA Retirement Plan? (Max, Seattle)
• 24:29 - Highly Compensated Employee Rule and Excess 401(k) Contributions (Mike, Castleton, NY)
• 29:16 - How Are Employee Stock Purchase Plans (ESPP) Taxed? (Big Cheese/Bob the Tomato)
• 32:26 - Cash Balance Plans Pros and Cons for Self-Employed (Brent Money, Bennington, NE)
• 40:52 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-449

• Investing Basics Guide - free download
• Financial Boot Camp: Investing Basics - new from YMYW TV
• Episode Transcript
• Ask Joe & Big Al On Air for your Retirement Spitball Analysis

Coach Dobber and his wife in Edina, Minnesota have a low mortgage interest rate and a decent amount of home equity. Should they put that equity to work and take the risk on buying a higher value home at a reduced price, even if it means a much higher interest rate and higher monthly payments too? Plus, Joe and Big Al spitball for Adam, in the birthplace of aviation, on the taxation of passive rental income, and capital gains from his portfolio and the sale of his business, prior to his early retirement. They also spitball for Charles in Idaho, on taxes on the sale of his mother-in-law's house. And should Dan's wife and business co-owner retire from the business and take Social Security Disability? And will Social Security be reduced for everyone? Steve in Vegas has a cautionary tale to tell.

Timestamps:

• 00:55 - Stay With a Low Mortgage Rate, or Buy Up at a Reduced Price? (Coach Dobber, Edina, MN)
• 16:10 - Early Retirement Taxes on Rental Income and Capital Gains? (Adam, Dayton, OH)
• 24:55 - How to Figure Taxes on Sale of Mom's House (Charles, ID)
• 29:47 - Should Spouse and Business Co-Owner with Alzheimer's Retire and Take Social Security Disability? (Dan, Midwest USA)
• 36:04 - Will Social Security Be Reduced for Everyone? A Cautionary Tale (Steve, Las Vegas)
• 44:17 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-448

• 2023 Key Financial Data Guide
• EASIRetirement.com - new free retirement calculator!
• Social Security Handbook
• Episode Transcript
• Ask Joe & Big Al On Air for your Retirement Spitball Analysis