Your Money, Your Wealth

If you knew exactly when you were gonna die, so many financial decisions would be simple. But generally, we don't, so today Joe and Big Al spitball on death, taxes, and trust issues of the estate planning variety. Fair warning, it's "the dark show" today on YMYW, as the fellas discuss cancer trust funds, making your trust the beneficiary on your retirement accounts, when and how to take Social Security benefits and pension options, Roth conversion strategies taking into account the 5-year rules for withdrawals, and potentially donating required minimum distributions to charity rather than doing conversions.

Timestamps:

• 00:49 - Pension Plan Options Retirement Spitball: Lump Sum, Annuity, or Hybrid? (Dave, CO)
• 07:37 - Should We Have a Cancer Trust Fund? (Melinda, Milwaukee)
• 12:02 - Why Not Make Our Trust the Beneficiary on Retirement Accounts? (Ms. Merry, MD)
• 21:40 - Is There a 5-Year Rule on Taking Dividends from a Roth IRA After Age 59½? (Douglas, Bonita, CA)
• 23:34 - I'm 60, My Ex is 74. Am I Eligible for Spousal Social Security Benefits? (Salwa)
• 24:39 - How Much If Any Roth Conversion Should We Do? (Paul, NJ/SC)
• 28:53 - Why Do a Roth Conversion Instead of Donating to Charity? (Kevin, Raleigh)
• 32:57 - Why Separate and Never Add Money to a Profit-Sharing Plan Rolled to IRA? (Nancy, Foxboro, MA)
• 35:46 - Retirement Pension at 57 or 60? Social Security at 62 or 70? (midwestfabs)
• 45:56 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-427

• Estate Planning Organizer
• Inflation, Interest Rates, Recession? Financial Markets Update Webinar Replay
• Going Solo: Navigating Your Financial Future Single - YMYW TV & companion guide
• Episode Transcript
• Ask Joe & Big Al On Air

Gidget wants to find her very own Moon Doggie so she can get married and reap that sweet, sweet capital gain exclusion when she sells her house. What do Joe and Big Al think, and can they help her find a man? Plus, is real estate a good investment for retirement income? Is taking out a TSP (thrift savings plan) loan to pay off your mortgage a good idea? Also, the fellas spitball a tax and ACA (Affordable Care Act) strategy, a FIRE strategy - well, financial independence, but not necessarily retire early - and they discuss capital gains taxes on RSUs (restricted stock units.)

Timestamps:

• 00:45 - How's My Marriage Strategy for Extra Capital Gain Exclusion on the Sale of My Primary Residence? (Gidget, San Diego)
• 10:46 - Is Real Estate a Good Investment for Retirement Income? (Doctor Jerry, Waco, TX)
• 16:14 - Should I Pay Off My Mortgage with a Thrift Savings Plan Loan? (Jake - voice message)
• 19:35 - Spitball Our Retirement, Tax Planning, and ACA Strategy? (John from LA - Lower Anderson, SC)
• 26:31 - Do I Need to Pay Quarterly Capital Gains Taxes When I Sell RSUs? (Jerry, Redmond, WA)
• 31:43 - FIRE Retirement Spitball Analysis: How to Structure Our Investments? (Jim, Washington State)

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-426

• 10 Tips for Real Estate Investors
• Alternative Retirement Income Sources: Real Estate and Beyond webinar
• Real Estate Investing: What Are Cash-on-Cash and Cap Rate? YMYW podcast episode 365
• Episode Transcript
• Ask Joe & Big Al On Air

How do you protect your nest egg when you're really risk-averse and want safe, low-risk investments - should you invest in annuities, CDs? When choosing a money market fund, should you just invest in the one with the highest post-tax return? How do you go about replenishing cash, or rebalancing your portfolio, when the stock market is up? Plus, the widow's penalty in relation to Roth conversions, and switching from survivor Social Security benefits to your own. Also - withdrawing from your portfolio before RMD age? One listener says nobody should ever need to do it!

Timestamps:

• 00:51 - How to Safely Invest and Protect $400K When You're Risk Averse (Tyler, OH - voice)
• 07:31 - Rebalancing: How to "Replenish Cash" When Stocks Are Up? (Elisa, Fremont, CA)
• 13:27 - Money Market Funds: Don't I Want the Highest Post-Tax Return? (Michael, CO)
• 18:42 - The Widow's Penalty and Roth IRA Conversions (KBH, San Antonio)
• 27:46 - Can I Switch from Survivor Social Security Benefits to My Own at Age 70? (Sara, Tucson, AZ)
• 30:43 - COMMENT: Come On People, You've Had a Lifetime to Set Up Your Retirement (April, Tinley Park, IL)
• 36:46 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-425

• Withdrawal Trap Doors - YMYW TV episode and free companion guide
• Register for the Q1 2023 Market Update / Q2 2023 Financial Market Outlook Webinar, April 26, 12pm PT / 3pm ET with Pure Financial Advisors' EVP and Chief Investment Officer, Brian Perry, CFP®, CFA.
• Episode Transcript
• Ask Joe & Big Al On Air

Should retirement living expenses be drawn from your stable value fund, your CD or money market, brokerage account, or FDIC insured bank accounts? Can you even trust the banks after the recent bank failures? What about sequence of returns risk? Which investments are best for long-term retirement savings when you're early in your career? Joe and Big Al explain why your strategy for retirement savings and withdrawals should be your first step - before you consider investments, asset classes, or sectors.

Timestamps:

• 00:49 - Stable Value Fund Vs. Brokerage Account for Living Expenses? (Sharon, Waukesha - voice)
• 09:08 - Sequence of Returns Risk: Should I Save for 5 Years in CD, Money Market or Brokerage Account? (Carlos, Tampa Bay)
• 15:46 - High Income and Tax-Deferred Savings, Low Tax Rate: Where Should I Save? (Josh, Boston, MA)
• 21:40 - Am I Overcomplicating My Investments at Age 35? (Mike, VA)
• 29:44 - I'm 28. Should I Max Out Pre-Tax or Post-Tax 457 Plan Retirement Savings? (Michael)
• 33:55 - How Does FDIC Insurance Work? SVB and Signature Bank Failures (Jon, Powhatan, VA)
• 39:46 - Should We Roll 401(k) to Several FDIC-Insured IRA Accounts to Live Off Of? (Joan, Long Island, NY)

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-424:

• YMYW Guide to Growing Your Wealth
• Register for the Q1 2023 Market Update / Q2 2023 Financial Market Outlook Webinar, April 26, 12pm PT / 3pm ET with Pure Financial Advisors' EVP and Chief Investment Officer, Brian Perry, CFP®, CFA.
• Episode Transcript
• Ask Joe & Big Al On Air

How can you reduce taxes, IRMAA, net investment income tax, and required minimum distributions when you've got too much money in your tax-deferred retirement account - and just how much Roth conversion should you do? Plus, can you contribute to a Roth by transferring stocks "in kind"? If the check you send off to pay your estimated taxes isn't cashed before the deadline is it late? How does SECURE 2.0 impact 529 plans, and is 529 better than Roth IRA for college savings? Finally, the fellas spitball a 401(k) in-plan Roth conversion and retirement account consolidation strategy.

Timestamps:

• 00:48 - We Have Too Much in Traditional IRA. How's Our Roth Conversion Plan? (Kelly, Idaho)
• 10:54 - Can I Make a Roth IRA Contribution by Transferring Stocks "In Kind"? (GDO, Delco)
• 14:36 - How to Pay Estimated Taxes: If My Check Isn't Cashed Immediately, Is It Late? (Judi, San Diego)
• 16:51 - 529 Plan vs. Roth IRA: Does SECURE 2.0 Affect 529 College Savings? (George)
• 20:49 - 401(k) In-Plan Roth Conversion and Retirement Account Consolidation (Steve, Maine)
• 27:07 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-423:

• Tax Takedown: brand new YMYW TV and companion guide
• 2023 Tax Planning Guide
• Episode Transcript
• Ask Joe & Big Al On Air

Which investments should go in your traditional IRA vs your Roth IRA, and does that asset location depend on your age? Learn how to generate "tax alpha" to get better returns on your investments. Plus, Joe and Big Al spitball whether to roll a TIAA 403(b) to an IRA or take the annuity, and they spitball retirement and Roth conversion and Roth contribution strategies for an overseas officer with a military pension, and for Americans working abroad who qualify for the foreign earned income exclusion.

Timestamps:

• 00:51 - Best Assets to Hold in Traditional IRA and Roth IRA? (Michael, Colorado - voice)
• 7:40 - Is Investment Asset Location Dependent on Age? (Glen)
• 11:35 - TIAA 403(b): Take the Annuity or Roll to an IRA? (Brad, Northeast TN)
• 19:34 - Military Pension Spitball: Overseas Officer with Fluctuating Income & Taxes (US Grant, Alexandria, VA... usually)
• 24:29 - Foreign Earned Income Exclusion & Roth 401(k) Rules (Jeff, Singapore via North Dakota)
• 31:32 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-422:

• Why Asset Location Matters Guide
• Register for our free 2023 tax planning webinar, March 29, 12pm PT/3pm ET
• Schedule a free financial assessment
• Episode Transcript
• Ask Joe & Big Al On Air

Should Edith and Archie live off their non-qualified accounts and pay Roth conversion taxes from their 401(k)? How can Johnny from Knoxville do Roth Conversions and stay in a low tax bracket Plus, at age 31, are Shad and his wife saving enough for retirement? What should Tech Chick do with her severance package after being laid off from her tech industry job? Finally, listener comments on retirement plan education, Roth conversions, and the 5-year Roth clocks.

Timestamps:

• 00:39 - Live Off Non-Qualified Accounts, Pay Roth Conversion Tax From 401(k)? (Edith & Archie, TX)
• 11:35 - How to Do Roth Conversions and Stay in a Low Tax Bracket + Estimating Taxes (John, Knoxville, TN)
• 19:11 - Retirement Spitball Analysis: Are We Saving Enough at Age 31? (Shad, Smith's Grove, KY)
• 27:11 - Laid Off From the Tech Industry. What Should I Do With My Severance Package? (Tech Chick, Mile High Rocky Mountains)
• 39:55 - Comment: No Financial People Ever Mentioned Roth Conversions to Me Before! (Donna, Valencia)
• 40:55 - Comment: Thanks for Letting Me Educate You on Retirement Plans (Debra, St Louis, MO)
• 42:41 - Comment: You Got the Roth 5 Year Clock Wrong (David, Michigan)
• 48:06 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-421

• Register for our free 2023 tax planning webinar, March 29, 12pm PT
• 2023 Key Financial Data Guide
• Complete Roth Papers Package, Including: the Ultimate Guide to Roth IRAs, the Guide to the 5-Year Rules for Roth IRA Withdrawals, and the Roth IRA Basics Guide
• Episode Transcript
• Ask Joe & Big Al On Air

Are low-cost mutual funds or ETFs better investments in a tax-advantaged account? Also, more strategizing from that SECURE Act 2.0 529 plan provision, the pros and cons of selling a rental house now or holding it until you pass, and an easy-breezy self-employed retirement account that's better than a SEP IRA. Plus, will municipal bond income bump you into a higher tax bracket? Can you avoid capital gains tax by investing less aggressively over time?

Timestamps:

• 00:00 - Intro
• 00:46 - Mutual Funds vs. ETFs in a Tax-Advantaged Account? (Midwestfabs, St Paul, MN)
• 08:06 - SECURE Act 2.0 529 Plan Strategy (Chris, Atlanta)
• 14:51 - Will Municipal Bond Income Bump Me Into a Higher Tax Bracket? (Bobby, Philadelphia)
• 26:31 - Can I Avoid Capital Gains By Investing Less Aggressively Over Time? (Joe, Aston, PA)
• 33:12 - Pros and Cons of Selling a Rental House Right Now (Joe, Chula Vista)
• 34:48 - An Easy Breezy Self-Employed Retirement Account Better than the SEP IRA? (Steve, Las Vegas)
• 39:58 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-420

• The SECURE 2.0 Circus: brand new YMYW TV and companion guide
• Blog post: Self-Employed Tax Filing & Small Business Retirement Plans
• The Ultimate Guide to IRAs
• Episode Transcript
• Ask Joe & Big Al On Air
• (plus, cute dog photo alert! We've got Midwestfabs' dog, "Jake-from-State-Farm"!)

In order to retire comfortably at age 60, what should you be doing with your finances when you're in your 20s? A framework for getting started planning for retirement on today's episode of YMYW. Plus, if you're a small business with a SIMPLE IRA plan, is it stupid to save for retirement in a brokerage account rather than a traditional IRA? If you inherited money and promised to donate to charity, should you do Roth conversions? What's the most efficient way to pay financial advisor fees, and what's a good strategy for making pre-tax and post-tax retirement contributions?

Timestamps:

• 00:51 - A Framework for Getting Started in Planning for Retirement (Anonymous)
• 05:36 - I'm 24. What Should I Do to Retire Comfortably at 60? Michael, 24 (Binghamton, NY)
• 12:14 - I'm 32. Opened a SIMPLE IRA. Is It Stupid to Fund Brokerage Instead of Traditional IRA? (Ron Burgundy)
• 17:42 - I Inherited $450K, Promised to Donate to Charity. Should I Do Roth Conversions? (Allison, Northern Virginia)
• 23:02 - What's the Most Efficient Way to Pay Advisor Fees? (Nick, OH)
• 26:06 - Strategy for Pre-Tax and Post-Tax Retirement Contributions? (Dave)
• 29:56 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-419

• Cracking the Code - Succeeding Financially at Every Age: YMYW TV & Companion Guide
• Spitballing Retirement Planning in Your 30's (and even in your 20's!) - YMYW podcast 391
• Top 10 Most Popular Your Money Your Wealth Podcast Episodes - Spotify playlist
• Schedule a free financial assessment with Pure Financial Advisors
• Episode Transcript
• Ask Joe & Big Al On Air
• (plus a photo of YMYW listener Nick's cute dogs!)

If you've got some retirement savings but can't contribute any more, will you ever be able to retire? Joe and Big Al have three simple strategies to help you get there. Plus, how long does it take to get off of Medicare's income-related monthly adjustment amount, or IRMAA, after your income decreases at retirement, and how do you take unknown future IRMAA income limits into account when setting up your financial plan? Can you "re-do" Social Security and stop taking benefits after claiming Social Security early? Do spousal benefits change after one spouse files for Social Security? And finally, the fellas address a few corrections they've received recently regarding Medicare and safe harbor 401(k) plans. What exactly is "top-heavy" anyway?

Timestamps:

• 00:00 - Intro
• 01:02 - Will I Ever Be Able to Retire? I Have Some Savings But Can't Contribute More (Patty, NY)
• 06:38 - Retired, Income Dropped, Enrolled in Medicare. How Long to Get Off IRMAA? (Randy, Hb, Ca)
• 08:05 - How to Plan for Unknown Future Medicare IRMAA Income Limits?
• 10:53 - "Re-Doing" Social Security: Can You Stop Taking Benefits After Claiming Early? (Lauris, Volcano, Hawaii)
• 12:39 - Will Spousal Social Security Benefit Amounts Change When One Spouse Files? (Philip, Los Angeles)
• 15:09 - SECURE 2.0: When Must You Pay Taxes on Company Match Retirement Contributions? (Jim, Dallas, TX)
• 19:47 - CORRECTION: ACP Test for Safe Harbor 401(k) Plans, After-Tax Contributions (Debra, St Louis)
• 25:08 - CORRECTION - Medicare Test: Creditable Drug Coverage (Steve, Las Vegas)
• 28:56 - DUKE's Medicare Enrollment Experience (DUKE (John Wayne), Knoxville, TN)
• 32:54 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-418:

• Retirement Readiness Guide
• NAPA-net: 401(k) After-Tax Contributions Are 'Testy'
• Turbocharge Your Wealth! YMYW TV & Companion Guide
• Episode Transcript
• Ask Joe & Big Al On Air
• (Plus, YMYW Producer Andi Last video interview on the Audience Growth Podcast)