Your Money, Your Wealth

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 Note that content may be outdated as rules and regulations have changed.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 Note that content may be outdated as rules and regulations have changed.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?"