Managing Your Financial Future with Lucia Capital Group: Recent Episodes
Lucia Capital Group
Managing Your Financial Future with Johnny Dean and "Professor" Rick Plum, CFP® Brought to you by the advisors and investment professionals at Lucia Capital Group, a registered investment advisor. Integrating financial planning and investing decisions, designed to help you reach your own financial goals. Want the best tips on which hot stocks you should buy this week? Go somewhere else - we don't do that. It's all about planning, strategy, managing your future and taking control of your financial life. Securities offered through LPL Financial, member FINRA/SIPC.
Most people understand the risk of dying too soon or getting sick along the way. But there's another retirement risk that can be harder to think about: living longer than expected. A long life can be a great thing, but from a planning standpoint, those extra years still have to be funded.
If you build your plan only around average life expectancy, that can leave too much to chance. Some money may need to provide stability, while other money still needs room to grow. The REAL challenge is making sure your plan can last without forcing you to live too cautiously.
How can you reduce the risk of outliving your money without giving up the ability to enjoy retirement? Learn more from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
We've discussed many different topics on this podcast over the years: retirement income, Social Security, taxes, Roth conversions, and the Bucket Strategy, to name a few. But there are certain core principles underneath nearly every planning conversation, and they can change the way you think about your money.
What assumptions are you making about market swings, your time horizon, and the way your money should be invested? Are you treating every dollar the same, or does each part of your portfolio have a specific reason for being there? And when you shift from saving to distribution, does your strategy need to shift with it?
Learn all about the core financial principles that guide the way we think about retirement planning from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
Social Security is thought of as one of the most predictable parts of a retirement plan. You look at your statement, estimate your benefit, and assume that number will be there when you need it. But the amount you expect and the amount that actually hits your bank account are not always the same.
What choices or circumstances could reduce your benefit? How much does timing matter when deciding when to claim? Could Medicare premiums, taxes, continued work, or the loss of a spouse change the income you were counting on? And are there ways to plan around some of these reductions before they catch you by surprise?
Fact is, your net Social Security check could turn out to be smaller than you expected. Learn more from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
The Bucket Strategy sounds simple in broad terms. One bucket is designed for money you may need soon, another is built for long-term growth, and the middle bucket sits somewhere in between. But that middle bucket may be the hardest one to get right.
How much growth should you try to capture without taking too much risk? How much stability do you need so the first bucket can be replenished when the time comes? And should the middle bucket be treated as one investment area, or broken into smaller pieces with different time horizons and different jobs? Important questions, all.
Why is Bucket 2 so challenging, and how should it be structured inside your retirement income plan? Find out from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
Retirement has a way of exposing assumptions you may not even realize you're making. While you're working, a lot of financial decisions feel automatic: tax withholding, paychecks, and your retirement accounts mostly stay in the background. But once retirement begins, those same decisions can become much more complicated.
What if your real tax rate is not as simple as the bracket you think you're in? Could taking income from the wrong account create a bigger tax bill later? And if one spouse passes away, what happens when income drops, tax brackets shrink, and Medicare costs potentially rise? These things do happen, and you need to be prepared.
Which retirement assumptions could end up costing you, and how can you plan around them before they become REALLY expensive? Find out from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
Retirement planning often assumes your spending should start at one level and then rise every year with inflation. Sounds logical, right? But the reality is that many retirees spend more in the early years, when they are healthier, more active, and more eager to travel or enjoy the life they worked so hard to reach.
So are some retirees being too cautious with their money? Could a rigid withdrawal rule cause you to underspend during the years when money may matter most to you? And how do you balance the desire to enjoy retirement now with the need to protect yourself later?
It could very well be that you're not spending enough in retirement. Learn more from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
A retirement plan has to do more than just look good on a spreadsheet. It has to survive real life. Markets don't move in straight lines, family situations change, health can change, income can change, and if you have a plan that only works when everything goes smoothly, then you really don't have a plan.
Ask some questions: What happens when something important changes earlier than expected? What if a cost you hoped to avoid suddenly becomes unavoidable? And what if the assumptions behind your income plan turn out to be a little too optimistic at exactly the wrong time? The answers you give can reveal whether your financial plan has the ability to survive.
What are the 3 Things That Could Break Your Retirement Plan, and how might you build more resilience before they happen? Find out from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
The Bucket Strategy® is usually explained with three core buckets: money you need soon, money you’ll need later, and money that has time to grow. But for some retirees, that basic structure may need extra support. This is where the flexibility of The Bucket Strategy® allows for another bucket or two.
Protected income and alternative investments are not for everyone, but for the right individuals, these "sub-buckets" may be very useful. Would a stronger floor of guaranteed income help cover your basic expenses? Are alternative investments worth considering as another source of diversification, or do the added risks, costs, and liquidity limits make them a poor fit? These are important questions that must be answered first.
When might these extra pieces belong in a Bucket Strategy, and when should they be left out? Find out from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
Annuities and whole life insurance tend to create strong opinions. Some people treat them like miracle products, while others dismiss them completely. The truth, though, is more practical. They are financial tools, and like any tool, they only make sense when they are used for the right job.
So how do you know when one of these products might actually help you as opposed to just getting a sales pitch? What should you watch for with annuity rates, surrender charges, fees, and income guarantees? And when it comes to whole life insurance or “bank on yourself” strategies, who might benefit, who probably should not, and what costs are often left out of the conversation?
It's time to clear the air about these two widely-used – and often misrepresented – financial instruments. Learn more from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
Time for some emails! Listener questions tend to get specific, but they can point to larger issues that many people are trying to understand. Today, the focus turns to two email topics that come up again and again: 401(k)s and the Bucket Strategy®.
On the 401(k) side, how does your employer match actually work? What happens if you max out your 401(k) at one job and then change employers? Are there ways to access retirement plan money early? And when it comes to buckets, what happens if the market stays down for several years, or your portfolio ends up holding more stocks as you get older?
Learn about our most common email questions regarding your 401(k) and your retirement income strategy from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
Roth IRAs are pretty simple in structure: Pay taxes now, enjoy tax-free income later. It’s one of the most appealing concepts in retirement planning. But like most things in the tax world, the details matter, and missing them can lead to unexpected taxes at exactly the wrong time.
What does it really take to make your withdrawals completely tax-free? How do the different five-year rules actually work, and why do they trip so many people up? And what happens to a Roth IRA after you’re gone… does it stay tax-free forever, or are there strings attached for your beneficiaries?
Learn how you can potentially use these rules to your advantage from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
Everyone loves a good “hack,” especially when it comes to money. The promise is always the same: faster results, less effort, and a shortcut to building wealth. The problem is that most of those shortcuts don’t hold up when markets move, taxes come due, or real life gets in the way.
And yet there are certain strategies – “hacks," if you want to call them that – which can be used by virtually everyone with their own personal finances. Are these strategies actually shortcuts, free of a downside to everyone? No. Nothing worthwhile comes cost-free. But they can potentially benefit everyone who's willing to "pay" those costs after considering their own situation.
What are these three “personal finance hacks?" Find out from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
Most financial advice is built around one idea: how to grow your money. Invest more, stay the course, think long term. And that may potentially work. But what happens when you reach the point where growth is no longer your only goal, and the question changes from "how much can I make?" to "how do I not lose what I’ve built?"
The skills required to build your nest egg are NOT the same ones you need to keep it. During your working years, volatility can be your ally. Time is on your side, and short-term swings don’t matter much. But in retirement, those allies can quickly turn into enemies. What happens when you need cash flow from your portfolio while the market is down? And where should the line be drawn between stability and opportunity?
Learn all about navigating that transition while avoiding taking unnecessary risks from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
What's a $345,000 retirement expense that most people never plan for? Long-term care is one of those risks people know exist, yet tend to ignore. It’s not fun to think about, it’s not easy to predict, and for many, the assumption is that something else will cover it. But what if it doesn’t?
The bigger issue, beyond the expense, is the ripple effect. How does one spouse needing care impact the other? What happens to income, to investments, to the overall plan that once looked pretty solid? Is there maybe a better way to approach it today that doesn't feel like you're throwing your money away?
How should you think about this risk, and what options are actually worth considering? Find out from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
What if you retire at the "wrong" time? It’s a question that sounds reasonable, especially when headlines suggest that market conditions should dictate when you stop working. But what does a “wrong time” even mean, and is it something you can actually plan around?
In this episode, Johnny Dean and Rick “The Professor” Plum, CFP®, take a closer look at the idea of a “retirement window” and whether your retirement date should actually depend on what the market happens to be doing at that moment. If the market drops right before you retire, does that mean you should delay? Should you REALLY cut your spending? Or is the real issue something deeper about how your income is structured in the first place?
Tune in and find out why tying your retirement decisions to market performance can create more problems than it solves, and how a properly structured plan may remove that uncertainty altogether.
Before you ever get to investment strategies, there are a handful of core financial truths that shape almost every success or failure story with money. The problem is most people either overlook them or don’t fully understand how they apply in real life.
In this episode, Johnny Dean and Rick “The Professor” Plum, CFP®, explore five financial truths that many people have heard but haven’t really absorbed. Why do some people struggle to build wealth even with good investments? Why do others build it and then lose it? What role does behavior play in long-term success, and how much of your plan depends on things going exactly right? And perhaps most importantly, is there really such a thing as a shortcut when it comes to investing?
Along the way, the conversation ties these ideas back to real-world planning, especially how strategies like the Bucket Strategy are designed to work with these realities, not against them. Tune in and learn all about the five basic financial truths!
Estate planning tends to get treated like something you only worry about after you're gone. But the truth is that some of the most important parts of an estate plan are the documents and decisions that matter while you're still alive.
Think about this: Would your family be able to act on your behalf if you became incapacitated? Do you know which of your assets would actually follow your will and which would pass by beneficiary designation or title instead? Could probate delay things, make your affairs public, or create unnecessary costs? And if you have a trust, have you actually funded it so it can do the job it was created to do?
Learn all about the top 5 things you didn't know about estate planning with podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
The idea that you should own fewer stocks as you get older is one of the most common rules of thumb in retirement planning. The logic says that stocks are supposedly "risky,” so as you age, you should reduce your exposure. But that simple rule may be asking the wrong question and leading to the wrong conclusion.
Think about this: Is stock exposure really the right place to start, or should the focus be on how much of your portfolio needs to be safe to support your income? Does owning fewer stocks actually reduce risk, or does it depend on when and why you might need to sell them? And if your safer assets are structured to cover your cash flow needs, does that change how much of your portfolio can remain invested for long-term growth?
Should you really own fewer stocks in retirement, or could the opposite be true under the right structure? Find out from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
Retirement income planning looks like a math problem: formulas, percentages, projections, etc. These are important, and they form what may be called the "scientific" portion of a financial strategy. But what often gets overlooked is the other half of the equation: the judgment, flexibility, and real-world decision-making required to make those numbers actually work for a person’s life.
Think about this: Once the math says you have enough to retire, how do you decide which assets belong in each bucket? Should part of the plan create guaranteed lifetime income? How do Social Security timing, pension options, Roth conversions, and tax considerations influence the structure of your retirement income?
That's where the often-ignored side of planning comes in: the ART of the retirement income strategy. Find out how the Bucket Strategy® blends both science and art from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
Have you heard of the "RMD-style" retirement withdrawal strategy? It involves taking a percentage of your portfolio each year based on life expectancy tables, which, on paper, ensures you never fully deplete your account. But retirement is not lived on paper.
Think about this: If your income changes every year based on market performance, what happens after a down year? Would you be comfortable taking a pay cut because your portfolio value dropped? If a formula built to avoid running out of money doesn't also protect your monthly cash flow, that is a seriously flawed approach.
How do you structure your withdrawals so that market downturns do not translate into spending cuts? Podcast host Johnny Dean and Rick “The Professor” Plum, CFP® tell you how to potentially protect both the short- AND long-term on this week’s episode of Managing Your Financial Future!
Estate planning deserves more attention than it usually gets in retirement conversations. You've spent a lifetime building assets, but what really determines whether your family benefits is how those assets are structured and transferred.
Think about this: Have you checked whether your will actually controls everything you own? Are your beneficiary designations aligned with your trust and your current wishes? Could taxes, probate, or family dynamics reduce what your heirs ultimately receive? These are the kinds of questions that matter more than most people realize.
What can you do to make sure your assets go where you want them to go once you're no longer here? Find out from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week's episode of Managing Your Financial Future!
Losing a spouse is something no one likes to think about, but for virtually every married couple, it’s a reality that will eventually have to be faced. And beyond the emotional toll, there are financial changes that happen automatically, whether you’re prepared for them or not.
For example: What really happens to Social Security benefits when one spouse passes away? How does losing married filing jointly status affect your taxes? Why can Medicare premiums actually increase, even if household income drops? And what mistakes can be made with inherited retirement accounts that can’t be undone?
What should you know before you ever need to? Learn all about it as podcast host Johnny Dean and Rick “The Professor” Plum, CFP® walk through four critical financial shifts every surviving spouse should understand on this week’s episode of Managing Your Financial Future!
When people look back on their retirement years, what do they wish they had done differently? It turns out the biggest regrets aren’t about picking the wrong stock or missing out on an investment. They’re much more fundamental, and much more common.
In this episode, podcast host Johnny Dean and Rick “The Professor” Plum, CFP®, dig into the five regrets retirees consistently report in major national surveys. Why do certain themes show up again and again? Where do people feel they missed opportunities, or didn't understand the long-term consequences of their decisions?
You can't undo the past, but you can still shape what happens next. Hearing what others wished they'd done better may help you avoid the same frustrations. What can you learn from those who’ve already been there? Find out on this week’s episode of Managing Your Financial Future!
When you leave a job, what you do with your 401(k) often feels like a formality. But the reality is that most people have no idea what to do with their retirement plan, and they don’t know what their options are. And making the wrong move can cost you flexibility, trigger unnecessary taxes, or limit your options later on.
In this episode, podcast host Johnny Dean and Rick “The Professor” Plum, CFP®, break down the seven key factors everyone should consider before rolling over a retirement account. How does your age affect access and penalties? When does leaving money in a 401(k) actually make sense? And why is “just roll it into an IRA” often incomplete advice?
If you have an old 401(k), are changing jobs, or you’re unsure whether your retirement money is sitting in the right place, you need some answers. A rollover isn’t automatically right, and it isn’t automatically wrong. What do you need to know? Find out on this week’s episode of Managing Your Financial Future!
There are plenty of conversations about how your money should be invested: stocks or bonds; aggressive or conservative; growth or safety, etc. But there’s another part of the equation that rarely gets the attention it deserves, and it can potentially cost you far more than a bad market year.
Did you know that you can have solid investments and a reasonable portfolio and still end up with higher taxes, less income, or fewer options in retirement simply because your money is sitting in the wrong types of accounts? Asset allocation tells you what you own. Asset location determines how efficiently it actually works for you.
How much does it matter where your money lives? And how can getting it wrong turn taxes into a long-term problem instead of a short-term nuisance? Find out from podcast host Johnny Dean and Rick “The Professor” Plum, CFP®, on this week’s episode of Managing Your Financial Future!
It's true that most investing success happens over long periods of time. So it would stand to reason that you should stay focused on the long term. But when you think about it, the "long term" is really just a bunch of short-term periods bunched together. And those short-term stretches can sometimes be brutal.
With that in mind, what if the real key to long-term success isn’t patience at all, but short-term management? What if protecting the near-term (your cash flow, your flexibility, your psyche) is what actually allows the long term to work the way it’s supposed to? How do you design a plan that takes the short-term worry out of the equation?
Learn all about it from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
Roth IRAs are often described as one of the most powerful tools available in retirement planning. Tax-free growth, tax-free withdrawals, and flexibility? Those are hard to beat. So it’s no surprise that Roth conversions are frequently promoted as a good move for just about everyone.
But there’s a part of the conversation that doesn’t get nearly enough attention: the cost of getting money into a Roth in the first place. Roth conversions require an immediate, irreversible tax payment today in exchange for benefits that may take decades to materialize and may never fully pay off.
So when does a Roth conversion make sense and when might it work against you? Find out from podcast host Johnny Dean and Rick “The Professor” Plum, CFP®, on this week’s episode of Managing Your Financial Future!
There’s nothing wrong with wanting a strong rate of return. The problem starts when “the best return” becomes the plan, especially once you’re close to retirement and your portfolio has a job to do beyond just growing.
The reality is that chasing returns and chasing yield can turn normal market volatility into real, permanent risk for you. Retirement planning is less about treating your entire portfolio as one big performance engine and more about matching different dollars to different time horizons and goals. Sound familiar?
So what should a retiree focus on instead of headline performance? How about a steady, sustainable source of cash flow that helps you stay calm, stay invested, and keep compounding working in your favor? Learn more from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
Financial planning is NOT about predicting the future. It’s about balancing what you can reasonably expect with everything you can’t possibly control. Markets move, life happens, but the decisions you make today may have to support you for decades.
That "tension" is at the heart of financial author Morgan Housel’s idea: save like a pessimist and invest like an optimist. But what does that mindset really mean? And how does it show up inside a properly designed Bucket Strategy? It's all about surviving the short term to reap the potential rewards of the long term.
So how do you build a plan that expects trouble in the short run but stays confident about the long run? Find out from podcast host Johnny Dean and Rick “The Professor” Plum, CFP®, on this week’s episode of Managing Your Financial Future!
There’s no shortage of “rules of thumb” in personal finance. They sound simple, they sound authoritative, and you can find them almost everywhere. But the truth is that many of these long-standing bits of advice can lead you in the wrong direction if you follow them without thinking.
What’s a good amount to withdraw from your savings? Which accounts should you tap first? What will your spending look like in retirement? These are questions that require more nuance than generic guidance can offer. What looks harmless on paper can end up costing you more than you realize over the long run.
So which pieces of conventional wisdom need to be debunked? Find out from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
There are many things a retiree needs to know about their finances – some more important than others. But how can you tell which ones are best to learn, and which ones can be ignored?
We've narrowed it down to what we believe are three of the most important concepts that every retiree should know. And these aren’t hypothetical concerns. They’re real potential landmines that can affect almost anyone approaching or already in retirement.
So what do you need to know to stay ahead of them? Find out from podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on this week’s episode of Managing Your Financial Future!
Many people with high incomes assume they make too much money to contribute to a Roth IRA. And they’re right – sort of. The IRS does put income limits on Roth contributions, but there are a few lesser-known workarounds that high earners can use to get money into a Roth anyway.
The potential tax-free growth inside a Roth IRA can be especially enticing to people who both earn a lot and save a lot, as they may find themselves in a fairly high tax bracket at retirement. Any opportunity they have to withdraw money on a tax-free basis can only help their situation.
So what should high-income investors know about Roth strategies that might not be obvious at first glance? Find out from podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future!
There’s a lot of confusion about what a financial advisor actually does. Some people think it’s all about picking investments or predicting the market, but the best advisors focus on something much more personal: you and your goals.
The best advisors explain how they’re paid, talk openly about risk, give you time to make decisions, and encourage your questions. So what else should you expect when you sit down with someone who truly has your financial future in mind?
Find out with podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on this week’s episode of Managing Your Financial Future!
You’ve probably heard that taxes are unavoidable. Fair enough. But what if we told you that in some cases, you might be paying more than you should, simply because you didn’t know the rules?
Taking money from the wrong account, misreporting after-tax IRA contributions, accidentally triggering Medicare surcharges: These are tax traps that are hiding in plain sight. They're real mistakes people make every year, often without realizing it until it’s too late.
So how do you avoid these common traps? Find out from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
There are perhaps many thousands of books out there that purport to tell you how to "win" in investing. Many of them contain various gimmicks and "secrets" that are supposed to help you beat the market and earn a fortune. Here's another secret: not a single one of them is worth what you pay for them.
A better way to potentially win in investing is simply to avoid losing. With all the pitfalls and landmines you'll encounter as an investor, most of which is out of your control, you simply need to survive the short-term volatility while allowing the magic of compounding to do its job over the long term.
How might you accomplish this? Find out from podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future!
If there's one thing we can always be sure of, it's this: the stock market is unpredictable. There will be months or years where the market exceeds expectations, and there will be other times when it underperforms and winds up below where you expected it to be – sometimes, way below.
A strong risk management approach to investing may help stave off that dangerous and damaging volatility. But how do you prepare for it if it’s impossible to predict exactly when the next upswing or downturn will occur?
One way, potentially, is through a strategy known as Value Averaging. Could this strategy be the ultimate key to your portfolio's success? Learn more from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on today’s episode of Managing Your Financial Future!
Did you know that what happens with the stock market in the first few years of your retirement can either make or break your entire nest egg? It's true. If you retire just when the stock market takes a downturn, and you're selling stocks to provide yourself with an income, you're courting disaster.
Of course, there's nothing you can do about market volatility. The movement of stocks is completely out of your control. But what you CAN control is your reaction to that volatility – which may be as easy as choosing the right withdrawal strategy.
How do you avoid this so-called "Sequence of Returns" risk? Find out from host Johnny Dean and "Professor" Rick Plum, CFP® on today's episode of Managing Your Financial Future!
You're probably familiar with bonds as an asset: you make a loan to a company or state or municipality, and you hope to be paid back over time with interest and, ultimately, your principal. And while that is the most basic definition, the real working of bonds and the bond market are far more complex.
Underneath the surface, there are many things that are important to consider: the bond’s current yield, and more importantly, the bond’s yield to maturity, the difference between the bond’s present cash flow and what you’ll ultimately receive after all interest and principal payments are made, as well as many other factors.
Sound confusing? Let’s clear it up. Tune in to today’s episode of Managing Your Financial Future as podcast host Johnny Dean and “Professor” Rick Plum, CFP® tell you what you need to know before – and after – you purchase your bonds!
In the financial world, there are many "rules" that have become so ubiquitous that people are really reluctant to break them: Should you never take more than 4% out of your portfolio each year in retirement? Is it always best to wait until age 70 to take your Social Security benefits? These are just a few.
The problem with using the words "always" and "never" is that they assume everyone's situation is the same. We know that to be completely false. Sometimes, it's good - maybe even beneficial - to go against the grain and break some of those long-standing rules of finance.
Which of them can you (and should you) probably ignore? Find out from podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future!
When it comes to stock market investing, what creates the most anxiety and fear? Usually, it's when the markets are behaving erratically. Put another way, it's when the markets are volatile. Or to put it yet another way, it's during virtually every short-term measurable time period.
It would be tough to find any period of time when the stock market wasn't behaving in some sort of unpredictable way. Even in a bull market, there are always times when the party appears to be over and people start to head for the hills. And for most investors, that's exactly the wrong thing to do.
Why is volatility not risk? And why is it important to know that? Find out more from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
You may have noticed that real estate prices have been soaring over the past five or so years. And with the stock market gains we've experienced over that same period of time, you may have also seen a similar increase in the balances of your existing IRAs.
This has caused some people to wonder: if I want to buy real estate now, but most of my money is tied up in my IRA, is it a good idea to buy real estate inside my IRA? The short (and long) answer is this: no!
In this week's episode of Managing Your Financial Future, podcast host Johnny Dean and "Professor" Rick Plum, CFP® discuss why you should own real estate personally instead of in an IRA, and how you may be able to use those IRA funds without the headache and hassle of having your IRA own it. Tune in and find out more!
Here's a question: Is it really possible to take a six-figure income and pay no federal taxes on it? Depending on the sources of your income and how you use the tax brackets, it may indeed be possible.
What it all comes down to is knowing how the tax brackets work, and knowing what income is taxed at what rate. The bigger picture for you is this: tax management is one of the keys to potentially paying a lot less.
How can you have $100K of income and still pay no federal income tax? Find out from podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
The question of when to take your Social Security retirement benefits often comes down to whether you need the money now or can wait until later. Larger benefit checks await those who take it later, but is there a way to perhaps get the cash flow you need right now from another source while delaying your benefits as long as possible?
Bucket 1 may be able to help. By creating your own cash flow for 7 or 8 years, up until you turn age 70, you may be able to create a kind of "quasi benefit" and allow yourself to take those larger checks later on.
How might that work? Find out from host Johnny Dean and Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future!
With the cost of college in the US skyrocketing, many parents find they need to begin saving almost immediately if they want their children to be able to attend. One avenue for doing that is the 529 Plan, which comes with both benefits and costs.
Lately, though, the 529 has become less popular among savers. The reasons? Tuition costs, market uncertainty, and no guarantee that a job will be waiting for their kids when they graduate, among others.
So now the question remains: Is the 529 Plan still a good college savings vehicle? What are the rules, and what other potential options exist? Find out what you need to know from host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
A good financial plan will contain many elements: a source of cash flow, assets that are matched to liabilities, tax management, and investment oversight, to name just a few. And while these are important parts of a financial plan, there is perhaps one additional component that is above all else: room for error.
In investing, as in life, there are certain scenarios that can break you - perhaps permanently. So one of the most prudent things you can do is to avoid those situations completely. When your best financial plan doesn't always go according to plan, you must have enough room for error to allow enough time to let the odds fall in your favor.
How, exactly, does that work? Learn all about it from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on today's episode of Managing Your Financial Future!
In the investing world, there are certain things that are out of your control: the short term direction of the stock market and where the economic trends are headed, to name just two. These are, of course, impossible to predict with accuracy.
Because of this, we have to assume that certain unforeseeable risks will occur along the way. And while we don't know which ones will happen when, by being prepared for them, we can potentially achieve a better outcome.
Learn more about why it's so important to manage risk instead of your rate of return and how to prepare for unknown events with podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
If you have a pension, the decision of how and when to take the payments is an important one – and, probably irrevocable. Maybe you have the choice to take the entire amount as a lump sum; if so, is that option potentially better than a stream of monthly payments?
And then there are your other choices. For married people who want to get as much as they can now, are they sacrificing the financial stability of their surviving spouse down the road? Possibly. But there may also be a solution to that dilemma.
On this week’s episode of Managing Your Financial Future, podcast host Johnny Dean and “Professor” Rick Plum, CFP® talk about what you need to consider before you make this “one-and-done" pension decision.
In early July of this year, the new Budget Reconciliation Law was enacted by Congress. It made several changes to existing tax law, introduced some new legislation, and made other formerly temporary laws "permanent".
Whether you like it or hate it, there are many things within the bill that will affect a large number of people, thus presenting some new tax planning opportunities. What is new? What is different? What was made permanent? And how will these new laws affect YOU?
Find out what you MUST know about the new tax bill with host Johnny Dean and Rick "The Professor" Plum, CFP® on today's episode of Managing Your Financial Future.
When the federal tax code was enacted more than 100 years ago, it consisted of approximately 11,000 words. Today, it contains north of 16 million words. It's no wonder, then, that trying to understand all the rules, exceptions, and instructions is nearly impossible.
We're going to attempt to make things just a bit easier for you today. While we won't get into EVERY detail, there are several things that nearly everyone who files a tax return needs to know in order to make better decisions regarding their own personal tax situation.
What are 5 things you (probably) didn't know about your taxes? Find out from Johnny Dean and "Professor" Rick Plum, CFP® on this latest episode of Managing Your Financial Future!
A few months back, we explained how the 401(k) plan has become a default retirement savings plan for most people, and is thus a very important saving vehicle. We also talked about how the rules, options, and investments of a 401(k) can be extremely confusing.
It's time to clear up that confusion - or at least address it. With all the options, rules, tax consequences, and withdrawal methods, knowing what can happen when you make a decision about your 401k is a huge plus.
What are the 5 things you (probably) didn't know about your 401k plan? Find out from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on today's episode of Managing Your Financial Future!
One thing that most people would agree on is that paying no taxes is a lot better than actually paying them. This makes the tax-free nature of Roth IRA withdrawals very attractive, as long as all of the specific rules are met.
Although the Roth was established more than 25 years ago, for many it still remains something of a mystery. You may have heard it's a good thing, but what should you know about the Roth IRA that you perhaps didn't know?
Knowledge, of course, is power. Find out 5 things you (probably) did not know about your Roth IRA from podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on today's episode of Managing Your Financial Future!
For many retirees, Social Security is a cornerstone of their income strategy. That makes sense - it helps establish how much support a retirement portfolio will need to provide, and when.
But understanding how to get the most out of your benefits is more than just choosing an age to start collecting. There are spousal and survivor benefits to factor in, family benefits, disability considerations, and even the possibility of taxes on what you receive.
Want to learn 5 surprising facts about Social Security that could affect your plan? Podcast host Johnny Dean and Rick “The Professor” Plum, CFP® tell you what you need to know on this week's episode of Managing Your Financial Future!
Many people spend years preparing financially for retirement, but almost no one prepares for the emotional side of it. When the paychecks stop, the questions often start: Am I spending too much? What if I outlive my money? What am I supposed to do with all this time?
It takes a certain blend of art and skill to manage your income and taxes while also overcoming a fear of spending. What's the psychology behind financial independence, and how might The Bucket Strategy® help you even if your lifestyle, spending, or sense of purpose shifts along the way?
Learn more about how to actually be retired with podcast host Johnny Dean and “Professor” Rick Plum, CFP®, on today's episode of Managing Your Financial Future!
The Bucket Strategy® is both simple and complex: while the structure on the outside is easy, the inner workings can vary wildly from person to person, depending on several factors. No wonder, then, that many people (journalists included) have some incorrect ideas about what the strategy is.
A few assumptions are that it’s only about cash and stocks, it’s static, and it only provides a steady income. But if you have a properly designed strategy, you’ll find that these ideas are completely wrong.
In this week's episode of Managing Your Financial Future, podcast host Johnny Dean and Rick "The Professor" Plum, CFP® talk about what people get wrong about the Bucket Strategy® and why it’s so important to know not just how it works, but why it’s set up the way it is.
It's true that in general, the basic Bucket Strategy® consists of a 3-, 4-, or 5-Bucket plan, with each bucket separated into short-term, mid-term, and long-term assets. But did you know that a good Bucket Strategy will often “blend” buckets to potentially give a retiree a much better overall outcome?
"Blending" the buckets means to combine the cash flow to try to get a desired outcome. But where do you take that cash flow from? Your IRA? Your 401k? Your personal money? Roths? This is where blending buckets can potentially be very helpful.
Learn more about why this strategy may yield better results for you as podcast host Johnny Dean and Rick “The Professor” Plum, CFP® give you the inside scoop on today’s episode of Managing Your Financial Future!
What's the most important quality an investor could have? Some people would say it's the ability to achieve the highest rates of return possible over the longest period of time possible. But those people are wrong.
It's the survival instinct - especially over the short term. Too many investors are so busy jumping in and out of stocks as trends and markets fluctuate that they end up with virtually no money left. What they should focus on instead is keeping their cash flow needs in steady and secure in retirement, thus buying enough time for long-term compounding to work its magic.
So how do you survive the short term volatility? Have a strategy. Podcast host Johnny Dean and Rick "The Professor" Plum, CFP® tell you all about how to do it on this week's episode of Managing Your Financial Future.
A steady cash flow stream is one of the most valuable things you can have, both before and after you retire. Pensions guaranteed by the PBGC and Social Security are two forms of this "protected income," and are designed to pay you as long as you live, regardless of current stock market conditions.
But if you don't have a pension, or your Social Security isn't enough to cover your short-term needs, then you may want to consider purchasing another form of protected income, one that you also cannot outlive. But those guarantees come at a cost, and you need to make sure that cost is worth it for you.
How do you determine that? Find out who should (and who should not) consider a form of protected income with podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
In our previous episode, we answered 5 of your most common questions about The Bucket Strategy®. Those covered some of the more "basic" elements of the strategy, but they're important to know in order to understand the deeper meaning of Buckets.
This week we're answering a few more, but these questions are what we might call the "next level up" from basic, including: what's a good time horizon for each bucket? When should you refill the buckets? And are there any potential risks that could jeopardize the strategy?
Great questions, and we answer them all with podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
We've been talking about The Bucket Strategy® for decades, and over that period of time, we've received thousands of questions about how the strategy works: what it does, when the buckets should be refilled, and how it works when interest rates rise or fall, among others.
People's questions about The Bucket Strategy® generally range from the very basic to the extremely sophisticated, but most fall somewhere in the middle. Today, we decided to take 5 of the more basic questions we've gotten and answer them.
Find out what others are asking us about the strategy with podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on today's episode of Managing Your Financial Future!
How is it possible that two individuals could retire with the exact same portfolio allocation and use the exact same withdrawal strategy, and yet one is still going strong after 40 years while the other is completely destroyed before year 10?
The problem comes with the uncontrollable element of investing: the stock market itself. What happens with the markets in the first few years after retirement can determine the success or failure of a financial strategy.
This is why your strategy needs to anticipate what may happen before it actually does happen. Learn more about how to potentially protect yourself from the uncontrollable market swings with podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future!
Have you heard of the "Gift Tax?" Many people are at least familiar with the term, but relatively few know how, when, or where it might be applied. Generosity certainly has its benefits, but is there also a tax that someone should be paying?
The answer is both yes and no. And it all depends on a few important factors. Knowing how the gift tax works can be especially helpful when it comes time to pass your assets down to your heirs, and if you're worth a lot of money, it's even more vital that you understand how it works.
Find out who should worry about a gift tax and who should not with podcast host Johnny Dean and Rick "the Professor" Plum, CFP® on this week's episode of Managing Your Financial Future!
For many people, the 401(k) is their largest source of retirement savings. Because of that, it may be tempting to tap into some of that money in the form of a loan if you need some quick cash.
But is that smart? Maybe - but only if you're aware of the rules and the potential pitfalls of borrowing from your plan. While it can provide you with a certain amount of temporary money, if you don't know what the downsides are, you could find yourself in a big financial mess.
So what are the pros and cons? Find out what you need to know about 401(k) loans from podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future!
After years of building your savings, there are a number of scenarios that threaten to deplete it. But what happens if you retire just when the stock market takes a big downturn? If you're selling stocks to provide yourself with an income, you're courting disaster.
Of course, you have to have an income, and maybe a portion of that income has to come from your savings and investments. And yet, those investment may be shrinking in value. What can you do about this scenario? The answer may be as easy as choosing the right withdrawal strategy.
Learn more from "Professor" Rick Plum, CFP® and podcast host Johnny Dean on this week's episode of Managing Your Financial Future!
The first trading two weeks of March, 2025 were brutal for stocks. Nearly $4 trillion of value was lost in less than a month. All of this negative volatility, with suspicions that more is to come, has created a great deal of fear and panic among savers who don't want to see their gains wiped out.
What many people don't understand, though, is that volatility by itself is not risk. The risk only comes along when an investor makes the wrong moves at the wrong times based on strictly emotional responses. So what can you do about it?
Learn the truth about market volatility and how you may be able to emerge unscathed with podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future.
In the middle of 2024, the rules changed for people who become beneficiaries of an IRA. We devoted an entire episode to those changes at that time, but there's a lot more you need to know if you're planning on inheriting a tax-deferred account like a traditional IRA.
While it's always nice to inherit assets of any kind, there are rules you need to be aware of. Depending on when the person died and how old you are when you received the asset, among other things, if you're not careful with how you treat it, you could be looking at a much bigger tax bill than you'd expected.
Learn more from podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
Several weeks back, we talked about how different types of retirement income are taxed. This topic created a follow-up question from several listeners who wanted to know: Will I be in a lower - or higher - tax bracket in retirement?
You might think that once you begin retirement, your tax bill will tend to go up at first, since people normally have much (if not most) of their retirement funds in a company retirement plan (401k, 403b, etc.) - all of which are taxable upon withdrawal at ordinary income rates.
But this may not necessarily be the case. It all comes down to proper planning. In this week’s episode of Managing Your Financial Future, podcast host Johnny Dean and “Professor” Rick Plum, CFP® talk about what you might expect to see from your taxes once you hang it all up for good!
The US tax system is by design a complicated beast, and trying to understand it all is a daunting challenge. And yet, unless you understand how the tax brackets work, you may be paying a LOT more in taxes than you actually owe.
Most taxpayers assume that the amount of tax they pay is determined by which tax bracket they're currently in. This is both a true and untrue statement. If you're in the 24 percent bracket, does that mean every dollar you earn is taxed at that rate? Going forward, yes; looking backward, no.
Confused? Tune in to this week's podcast with host Johnny Dean and Rick "The Professor" Plum, CFP® to perhaps gain some clarity on this week's episode of Managing Your Financial Future!
You've probably heard that your Social Security benefits are subject to taxation. You may have also heard that they're never taxed at all. Is it possible that both scenarios are true?
The fact is that under current law, sometimes a recipient's Social Security benefits will wind up being taxed under certain conditions, while others may never pay a dime on their benefits at all, even if they receive the maximum amount allowed. No wonder there's so much confusion out there!
When might your benefits be subject to income tax, and how much will be taxed if that's the case? And most importantly: how can you potentially minimize that tax? Find out more with podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
For many people, the 401(k) plan has become the default retirement savings plan. Opting in early enough, combined with consistent contributions over a long period of time, may yield very good results. Thus, it's an important saving vehicle.
But the setup, rules, options, and investments of a 401(k) are often extremely confusing. Is there a match? What does the match percentage mean? What do you do with a Roth 401(k) option? What's an effective rate of savings?
All common questions that have to be addressed. Learn more from podcast host Johnny Dean and his guests, "Professor Rick Plum, CFP® and Lucia Capital Group advisor Ara Freedman as they tell you what you need to know on this week's episode of Managing Your Financial Future!
Having money in a Roth account can be great - especially if the cost to get that money in there is minimal. But there are some people who cannot contribute to a Roth IRA because their annual income is too high.
Wouldn't it be great if you could not only get money into a Roth without worrying about the income limits, but also be able to fund a lot more than the $7,000 or $8,000 that is currently allowed? This is where the so-called "Mega-Roth" (or "Super-Roth") may be a wonderful solution.
What is it, and how does it work? Podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® give you the answers on this week's episode of Managing Your Financial Future!
It’s been said – by us – that keeping your wealth can be a much harder task than accumulating that wealth. And it's true. If you don't have the right withdrawal strategy when taking cash flow from your investment portfolio, you stand a real risk of running out of money.
What methods do people use when they're taking money out? And which, if any, may potentially be the best way to avoid the scary scenario of watching your funds dwindle to nothing?
Podcast host Johnny Dean and his guest, Rick "The Professor" Plum, CFP® compare the various withdrawal strategies and tell you which one they believe is the best – and why they believe it. Tune in to this week's episode of Managing Your Financial Future to learn more!
It's the start of a new year, which means right now is a very good time to begin thinking about what your financial goals are for 2025. Sometimes, though, that's easier said than done.
How do you know what to prioritize this year? What sort of goals should you be setting, and how do you know if those goals are both reasonable and attainable? And what's the best way to get started?
All legitimate (and common) questions. Get the answers from "Professor" Rick Plum, CFP® and podcast host Johnny Dean on this week's episode of Managing Your Financial Future!
Many retirees have several sources of retirement income: IRAs, 401k accounts, personal money, pensions, and Social Security, to name just a few. Because of this, they may find that it's extremely hard to predict their tax bill each year if they're not sure how - or if - these sources of income will be taxed.
Knowing the potential taxation of your income can put you in a much better position from a financial planning perspective. But how do you know what types of income may or may not be taxed?
Simple - have a listen to this week's episode of Managing Your Financial Future with podcast host Johnny Dean and "Professor" Rick Plum, CFP® as they tell you what you need to know about the taxation of your retirement income!
When the SSA sends you your benefit projections each year, there is an actual amount that they're telling you that you will receive, depending upon what age you begin taking them. So you might think that the number they tell you is the amount you'll be receiving.
But this is not always the case. There are a few scenarios in which the benefits you receive will be lower than the benefits you thought you'd get. And since Social Security forms the basis of many people's retirement income plans, it's important that you recognize if and when this could happen to you.
How might your benefits be reduced? Learn more from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
We're nearing the end of the year, and while there's not a whole lot left that you can do to perhaps improve your tax situation for this year, there actually is one more thing you may be able to accomplish before 2025.
It's called a QCD - or Qualified Charitable Distribution. If you're at least 70 1/2 years old, and you're charitably inclined, this technique may allow you to save even more on your tax bill this year.
Learn more about this little-known tax move, and find out what the new tax, IRA, and Social Security limits are for 2025 with host Johnny Dean and Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future!
Today we're asking the question that we posed to our listeners at the beginning of 2024: Is this a good time to do your Roth conversions?
There are reasons for doing them at the end of the year, just as there are also sound reasons for waiting until the new year begins. What it all comes down to is whether or not you know your tax situation for the year - which, with just a few weeks left, is much easier to determine right now. But how do you really know when may be the best time to get some money into your Roth IRA?
Podcast host Johnny Dean speaks with his guest, "Professor" Rick Plum, CFP® about what you still need to consider when doing a Roth conversion in this week's episode of Managing Your Financial Future!
Building a nest egg is relatively easy if you're both consistent and patient. Regular contributions over time can lead to compounded growth, which may give you the amount of money you need to live on.
But while building a savings can be easy, keeping it from running out is a whole other challenge. How you take withdrawals from your savings once you're retired is crucial to the survival of your portfolio. If the strategy you're using to take cash flow from your nest egg is faulty, your entire life savings may be at risk.
What happens if you do it the wrong way, and how might you be able to fix it? Find out from podcast host Johnny Dean and his guest, Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future!
Regular listeners to this podcast know that we talk a lot about a Bucket Strategy, and why we so firmly believe in it. But it's important to note that we're not just referring to any bucket strategy - rather we like to refer to it as THE Bucket Strategy®.
To us, it's not as simple as dividing up assets into three segments and then calling it a day. There are individual circumstances that make each one unique. But what is the process that we use? Have you ever wondered what an actual Bucket Strategy may look like?
Wonder no more! Tune in to today's episode with host Johnny Dean and his guest, "Professor" Rick Plum, CFP® as they go through the details of putting together a hypothetical strategy right here on the program!
There's a well-known topic in the investing world known as Asset Allocation which is primarily about deciding which asset categories you should own – stocks, bonds, CDs, alternative investments, etc. It's an important part of building your portfolio.
But there's another, equally important part that doesn't get talked about nearly enough: Asset Location. This has to do with how assets located in different types of accounts (Roth, IRA, or personal) are ultimately taxed to you. When done properly, an asset location strategy may dramatically decrease the amount you’ll ultimately pay in taxes on those assets.
How does it work, and why is the distinction so important? Podcast host Johnny Dean welcomes his guest, Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future to tell you all about it!
Most people, by the time they reach retirement age, have a certain amount of money saved up that they'll need to tap into from time to time. Problem: that money may need to last a lifetime, and because you don't know how long you'll live, you have no idea how much is "too much" to take out.
You' re going to require a certain amount of money to meet your basic expenses, but that stash of money - your investment portfolio - may have to last at least a few decades. So here's the question: is there a "safe" amount you can withdraw each month so that you won't outlive your savings?
Podcast host Johnny Dean talks with his guest, "Professor" Rick Plum, CFP® about how to figure out what may potentially be the "right" amount you can remove from your portfolio in this week's episode of Managing Your Financial Future!
When the stock market behaves erratically, it can create a lot of fear and anxiety among investors. Large swings to both the up and down side are what is known as volatility, and, like turbulence in an airplane, it can make people jittery and prone to making rash moves.
Stocks are always volatile in the short run. But stock market investing should never be a short-term play. So why does volatility get all the headlines? The more important aspect of stock market investing should not be trying to manage volatility (because you can't); rather, it's about managing risk.
You should never confuse volatility with risk, especially if you have a strategy that's designed to deal with it. Find out more as podcast host Johnny Dean talks with his guest, "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
It's a fact that many people are not aware of: your wealth accumulation strategy should be vastly different from your wealth distribution strategy. In fact, they require very nearly opposite skills.
Building your nest egg requires you to use the market volatility to your advantage, using various means like dollar cost averaging and buying through the many market downturns. But keeping your nest egg means avoiding that volatility over the short term so that your cash flow in retirement isn't interrupted by those same market downturns.
How are those two disciplines different? Learn more from podcast host Johnny Dean as he speaks with his guest, "Professor" Rick Plum, CFP® on today's episode of Managing Your Financial Future.
The Bucket Strategy® is both simple and complex. It’s simple in the sense that there’s a short-term, midterm, and long-term bucket, and maybe a couple of others, depending on your needs. The complexity begins when you need to determine which assets should go into which buckets.
There are many things to consider: time frame, taxability, income needs, and available assets, to name a few. How do you determine what to put into each bucket?
We’ll tackle that question today. Tune in to podcast host Johnny Dean and Rick “The Professor” Plum, CFP® as they answer this all-important question on Managing Your Financial Future!
If stocks are inherently risky, and if you're retired and you're risk-averse, doesn't it make sense to lessen your exposure to the stock market as you get older? That's the logic behind certain "rules of thumb" that say the older you are, the less money you should have in stocks.
But that logic is faulty. It assumes that everyone's situation is the same, and, even worse, that people should be selling stocks in order to fund their short-term income needs. It's time to revisit this idea.
Could it actually be better to own more stocks in retirement? Get the details from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
Social Security retirement benefits are the bedrock of guaranteed income for most American retirees. It forms the income basis that helps to build the rest of your portfolio's withdrawal strategy. So it makes sense to ask the question: at what age should I begin taking my retirement benefits?
Everyone eligible for benefits has a "full retirement age" at which benefits may be paid out. You may also take them earlier and receive a reduced benefit, or you may take them later for an enhanced benefit. Figuring out the "best" age to start those benefits depends on a number of factors and can be complicated.
And that's why we're talking about it today! Find out what you need to know about when to start your Social Security benefits from podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on today's episode of Managing Your Financial Future!
Very few things in life are universal, especially when it comes to finances. What’s right for one person may be completely wrong for another. Yet there are certain lessons with money that everyone could benefit from knowing, no matter what a person’s individual circumstances may be.
After careful review, we’ve narrowed them down to six.
What are the six financial lessons that everyone should know? Find out from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on today’s episode of Managing Your Financial Future!
You may have noticed that real estate prices have been ticking up at a steady rate for the past several years. For many people, that means they have no choice but to take out a mortgage. At the same time, there are those who have either enough current gains or enough cash on hand to consider buying a home with cash.
Having the cash to pay for a home, versus investing that amount and taking out a mortgage, is something of a dilemma. Some people like the security of owning a home outright, but there are also those who believe they can earn more than the cost of the mortgage through savvy investing.
Which way may be potentially right for you? Should you pay cash for your home or take out a mortgage? In this episode of Managing Your Financial Future, podcast host Johnny Dean and "Professor" Rick Plum, CFP® talk about what you need to consider before making that big decision!
Once you hit retirement, you'll probably have money in several types of accounts: a 401(k) from work, some personal money in a brokerage account, your regular checking account at the bank, and maybe some Roth IRAs, to name a few.
Once it's time to start withdrawing that money, the important question you should ask yourself is this: from which account(s) should my funds be taken out, and in what order? Do I spend my fully-taxable IRA money first, do I defer and use the Roth or personal funds, or some combination of all of them?
Getting it wrong can be costly, and detrimental to your financial health. Find out more about the "Spending Order of Funds" with podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
There are many ways to save for retirement. Two of the most popular are the 401(k) and the IRA. Both are savings vehicles, but both have different attributes that may make one of them better for you.
There are advantages and disadvantages to both. Do you need a tax break now? Are you able to deduct contributions to an IRA? Does your company have a match on any of your 401(k) contributions? These are important questions that you need to consider.
Learn more about what should factor into your decision with podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on today's episode of Managing Your Financial Future!
You may have heard that stocks are too volatile for retired people to own. In fact, there’s an old rule-of-thumb formula that says you should decrease your stock holdings by 1 percent every year and replace them with bonds. These generic “guidelines,” though, are hardly prudent advice for most people, because everyone’s situation requires a different approach.
It may actually be more beneficial for some people to have a greater exposure to stocks as they get older. What counts more is having a withdrawal strategy that takes into account the short-term risks of investing in stocks by creating the time – and cash flow – necessary to overcome those risks.
Find out more from podcast host Johnny Dean and “Professor” Rick Plum, CFP® on this week’s episode of Managing Your Financial Future!
We're half way through 2024, and it's time to get your financial house in order! What moves, if any, should you have made at this point? What about going forward? There's still time to do some tax management, maybe take a look at your 401(k) plan, and decide how you may want to allocate your investments before the year is out.
So what's left to do? There's still plenty of time, but then again, the clock is ticking. What should be on YOUR mid-year money checklist? Find out from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
What’s your most valuable asset when it comes to investing? Is it maybe knowing the right stock to buy and when? How about a spreadsheet of things like P/E ratios, or being diversified across dozens of different classes? No – as it turns out, your most valuable asset with investing is time.
The stock market, despite what you may have heard, is a long-term game. The daily, weekly, and monthly noise you hear on TV and online about why stocks went up or down is nothing more than that – noise. But over long time periods, magical things can happen to people who are regular savers and who don’t panic when times get rough.
So how do you acquire the time you need for that “magic” to happen when you have bills you need to pay right now? Learn more from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on today’s episode of Managing Your Financial Future!
When you buy a bond, you might expect that the amount of interest stated on the coupon is the amount of interest that you’ll be receiving. So if you have, say, a $10,000 bond paying 5 percent interest, you probably figure it will pay you $500 each year.
But that isn’t always the case. This is where it’s important to understand not just the bond’s current yield, but probably more importantly, the bond’s yield to maturity. There may be a difference between the bond’s present cash flow and what you’ll ultimately receive after all interest payments and the return of the principal.
Sound confusing? Let’s clear it up. Tune in to today’s episode of Managing Your Financial Future as podcast host Johnny Dean and “Professor” Rick Plum, CFP® tell you what you need to know before – and after – you purchase your bonds!
It’s been said that the most important rule of finance is to not consistently mess things up. In other words, you need to survive the short-term chaos – and there’s lots of it – to reap the potential long-term rewards. If you can buy enough time to weather the constant storms, you may find yourself in a very good position down the road.
The Bucket Strategy® is something we’ve talked about for decades. What we love is that its aim is to buy enough time for those above-noted potential long-term gains to become reality. By matching your assets to your liabilities, you may stand a much lower chance of running out of money before you run out of time. And isn’t that what financial planning is all about?
Learn more from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this “don’t miss” episode of Managing Your Financial Future!
Many times in life, we see how one career field translates extremely well into another. Engineering is a great example of this. A good engineer needs to know what a project’s goal is, put the pieces together in a way that works, and then stress test it to make sure it works in all conditions.
Financial planning is a lot like this. What does each individual want to achieve financially? What do we have available to work with? How can these pieces fit together to potentially reach their goals? And how will that financial plan work under extreme conditions, both good and bad?
Our guest today is former engineer and current financial planner, Patrick Klacka, CFP®, who talks about how his math and engineering skills prepared him so well for the financial planning field. Tune in and find out more with podcast host Johnny Dean and “Professor” Rick Plum, CFP® on today’s episode of Managing Your Financial Future!
If you're at all familiar with the Roth IRA, you probably know that there are income limits for people who want to make a contribution to a Roth. These limits generally go up a little bit each year, but anyone who makes over a certain amount of money is ineligible to make a Roth contribution.
But that doesn't mean those with a high income have no access to a Roth, or to certain Roth strategies. Everyone loves something that's tax free, and that notion is especially attractive to people who may be in a high tax bracket when it comes time to distribute those funds.
What Roth can strategies can you employ if you're a high-earner? Find out from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
Are you in line to inherit an IRA? While inheriting almost any asset is generally a good thing, it's helpful to know the rules - mainly tax rules - that come along with it, especially if you plan on keeping as much of that money as you can.
Some new laws went into effect on inherited IRAs within the past few months, and when you combine those with the regulations that were already in place, it can be rather confusing to know what to expect. What's the best course of action so that you don't wind up paying more in taxes and penalties than you should?
Find out all about it from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on today's episode of Managing Your Financial Future!
Many people who are at Required Minimum Distribution age find themselves wanting to give some of that distribution to charity. They don't need the money to live on, and they'd like to help out their favorite organizations or causes in any way they can.
A standard way to do that is to take possession of the RMD, then turn around and write a check to the charity. Taxable money coming in, tax-deductible money going out, and it all comes out even - right? Not necessarily. That RMD you took may actually create a tax bill that you didn't count on, even if you gave money to a charity.
Is there anything you can do? Yes! Learn more about a Qualified Charitable Distribution strategy from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
How much money does it take for you to retire in comfort? Is it $1 million? $2 million? Far more than that? Far less? Large investment firms and many media outlets often throw out big "retirement" numbers based on small surveys they took of people who may or may not have any clue about how much money they actually need.
But it's a fair question. And it's one that everyone should be asking themselves, especially if they're within 5 to 10 years of actually retiring. But if everyone's circumstances are different, how do you know how much is potentially enough for you?
Podcast host Johnny Dean and "Professor" Rick Plum, CFP® analyze this important question and provide you with some vital suggestions on how to answer it on this week's episode of Managing Your Financial Future!
There are two distinct phases of your financial life. The first one is the years (decades) that you spend accumulating assets: building your savings, investing in retirement plans, etc. The second phase is when you begin taking those accumulated assets as distributions and live off of that income in retirement.
The first phase is usually the one that gets all the attention. Books have been written on how to accumulate millions of dollars. But it's the second phase that is far more important. How do you distribute your assets so that you don't run out of money before you run out of time?
Learn all about it from podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future!
Social Security is vital part of many people's retirement income. It forms the foundation of a retirement plan and helps to determine how much (if any) money an individual's portfolio will have to provide throughout their retirement.
But it's also extremely complex. There's much more to it than simply turning on an income stream once you're eligible: spousal benefits, survivor benefits, family benefits and disability are just a few things to consider, as well as any potential taxes you may have to pay on those benefits.
In this episode of Managing Your Financial Future, podcast host Johnny Dean and Rick "The Professor" Plum CFP® pass along 5 things you (probably) didn't know about your Social Security benefits. Tune in to learn all about it!
If you have a pension, the decision of how and when to take the payments is an important one. Are you offered the choice to take the entire amount as a lump sum? If so, is that option potentially better than a stream of monthly payments?
What about your other choices? For married people who want to get as much as they can now, are they sacrificing the financial stability of their surviving spouse down the road? Maybe. But there may also be a solution to that dilemma.
On this week’s episode of Managing Your Financial Future, “Professor” Rick Plum, CFP® speaks with podcast host Johnny Dean about what you need to consider before you make this “one-and-done" pension decision. Tune in and find out more!
What are people's most prominent financial fears? There are many: losing a job, not saving enough for retirement, financial emergencies, and many others. But it all seems to boil down to one basic concern: Not having money available when you need it the most.
This creates a lot of anxiety for people - especially for retirees, who rely on a steady stream of cash flow to meet their short-term spending needs. Without that cash flow, you would have to rely on your portfolio, which is a big problem if the stock market isn't behaving well at that time.
How do you overcome that one big fear? It's all about having a strategy. Learn more from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
You may have heard that a basic Bucket Strategy® consists of a 3-, 4- or 5-Bucket plan, with each bucket separated into groups of short-term, mid-term, and long-term assets. What you may not have heard is that a good Bucket Strategy will often “blend” buckets to potentially give a retiree a much better overall outcome.
What do we mean by “blending” the buckets? In essence, it means to blend the income stream to try to get a desired outcome. Where do you take your income stream from? Your IRA? Your 401k? Your personal money? Roths? This is where blending buckets can potentially be very helpful.
Learn more about why this strategy may be right for you as podcast host Johnny Dean and Rick “The Professor” Plum, CFP® give you the inside scoop on today’s episode of Managing Your Financial Future!
When you get to retirement, your portfolio - that is, your savings - will presumably provide you with the money you need. The more guaranteed income you have from other sources (like Social Security and pensions), the less your portfolio will have to kick out to you.
This is a crucial part of the financial planning process. The time when you begin taking those benefits, and how much they will provide, gives you an idea of what needs to happen with the rest of your money.
How does this all play out with the Bucket Strategy®? Learn all about it from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on today's episode of Managing Your Financial Future!
It’s just a fact of investing life that the stock market is unpredictable. There will be months or years where the market exceeds expectations, and there will be other times when it underperforms and winds up below where you expected it to be – sometimes, way below.
If you don’t have a strong risk management approach to investing, as years like 2022 showed us, you might be leaving yourself open to some dangerous and damaging volatility. But how do you prepare for it if it’s impossible to predict exactly when the next upswing or downturn will occur?
One way, potentially, is through a strategy known as Value Averaging. Could this be the key to surviving market downturns? Learn more from podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on today’s episode of Managing Your Financial Future!
There aren't many people who make it through their working years without having at least a few things they wish they'd done differently. And while most people can eventually come to terms with any "poor" choices they may have made, it can be very instructive to know what common regrets they have.
Did they save enough? Did they work too hard? Did they not do enough planning? Would their priorities have changed if they'd known back then what they know now?
Learn more about what people have said they most regret now that they've reached retirement, and what you might be able to do before you reach that point, with podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future!
There’s a popular “rule of thumb” that’s been around for about 30 years known as the “4-percent Rule.” The main idea is that your portfolio has a better chance of surviving for 30 years if you withdraw no more than 4 percent of the total each year. Some have said it should be even lower than that, depending on your investments.
But is this so-called “rule” actually something you should follow? The more important issue should be your actual withdrawal strategy. If you're forced to sell stocks when they’re down just to meet your spending needs, you’re asking for trouble no matter what your rate of withdrawal may be.
In this week’s episode of Managing Your Financial Future, podcast host Johnny Dean speaks with “Professor” Rick Plum, CFP®, to get Rick’s take on how the “4 percent rule” is really just a guideline, and why having a sound withdrawal strategy may be your bigger key to success.
If you've ever gotten a letter from the IRS, even if you're sure you've done nothing wrong, you know how stressful that can be. An even greater stress would be to see the word "audit" somewhere in the letter.
Your best bet is to be thorough enough on your tax return so as to avoid any and all correspondence with the IRS when it comes to your taxes. But how do you do that? Are there things that could actually trigger a letter and/ or a potential audit?
Yes. Learn what they are from podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on today's episode of Managing Your Financial Future!
Do you care what happens to your money and your assets after you die? Most people would probably answer that with an emphatic “yes,” even if they don’t have multiple millions saved up.
Whether you know exactly where you want your money to go, or you only know where you DON’T want your money to go, it’s crucial to have the legal documents in place to make sure your wishes are followed.
Today’s podcast features our special guest, San Diego Estate Planning Attorney Rod Hatley, J.D. LL.M., as we talk about what to expect when setting up an estate plan, what they cover, and why it’s so important to have everything in order. Rod is here with host Johnny Dean and “Professor” Rick Plum, CFP® to talk about what you need to know on our latest episode of Managing Your Financial Future!
“Everyone’s situation is different.” If you’re a regular listener to this podcast, you’ve heard that many times. Because of that, the Bucket Strategy can take many different forms, each one dependent on a person’s individual goals, risk tolerances, and temperaments.
Have you ever wondered how an advisor might put together someone’s strategy, given certain particular circumstances? What thought processes would an LCG advisor (like Rick Plum) go through to set up a strategy that may work the best for someone?
Find out what a hypothetical married couple with two 401k plans and a $40,000 income need may expect to see with their Bucket Strategy with podcast host Johnny Dean and “Professor” Rick Plum, CFP® on today’s episode of Managing Your Financial Future!
If you look at the tax tables, you’ll see that there are seven different tax brackets listed: 10%, 12%, 22%, and on up to the highest bracket at 37%. But did you know that there’s also a certain amount of money you can earn that’s not taxed at all?
While there’s not an official “0% tax bracket,” the truth is that the first $14,600 you earn as a single individual (or $29,200 if you’re married filing jointly) is yours to keep tax-free, thanks to the Standard Deduction. Sure, that’s not a huge amount of money, but it’s also not insignificant, and there are ways you can use this part of the tax code to your advantage.
Find out how the “Zero-Percent Tax Bracket” can potentially benefit you in a big way with podcast host Johnny Dean and “Professor” Rick Plum, CFP® on this week’s episode of Managing Your Financial Future!
Today’s topic is a follow-up to a similar discussion we had on this podcast in late 2022. Back then, interest rates had risen as bond values (and stock values) took a nosedive. The question at the time was: where should you go for your “non-volatile” asset class, if bonds don’t seem as attractive?
Now that interest rates have somewhat stabilized, but remain higher than they were for the previous 12-plus years, the same question needs to be asked, but with a twist: Are higher-interest bonds more attractive than what you might get from a CD-like fixed annuity?
As with most everything, the answer depends on a few factors – important points that you need to take into consideration. Find out what you need to know from podcast host Johnny Dean and “Professor” Rick Plum, CFP® on today’s episode of Managing Your Financial Future!
A few episodes ago we talked about how to keep your tax bill down when planning for Required Minimum Distributions (RMDs). After that show aired, we received a good question from a listener in Arizona who wanted to know what a good withdrawal plan would be for someone who is actually taking their RMDs.
For example, would it be prudent for someone to sell stocks in their IRA to satisfy their RMD when doing so may violate a key principle of the LCG Bucket Strategy® that says you should never sell a long-term asset to cover a short-term liability? Do all RMDs have to be taken in cash?
Get the answers to questions that are rarely asked but are vitally important with host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
For most people, taxes are just a fact of life. Even your Social Security benefits – for which you had to pay taxes to be eligible to receive – are subject to taxation under certain circumstances. And this tax bite can hit you unexpectedly and put a sizable dent in your benefit income.
Is there anything you can do about this? First, you need to recognize when and how your Social Security benefits may become taxable to you. This is where planning plays a key role, especially before you begin to take your Required Minimum Distributions at age 73.
On this week's episode of Managing Your Financial Future, host Johnny Dean and Rick "The Professor" Plum, CFP® talk about the many aspects of Social Security taxation, and what you may be able to do to potentially minimize what you owe. Tune in to find out more!
What creates fear and anxiety when it comes to stock market investing? Usually, it's when the markets are behaving erratically. Put another way, it's when the markets are volatile. Or to put it yet another way, it's during virtually every short-term measurable time period.
Stocks are always volatile in the short run. But stock market investing should never be a short-term play. So why does volatility get all the headlines? The more important aspect of stock market investing should not be trying to manage volatility (because you can't); rather, it's about managing risk.
What's the difference, and why does it matter to you? Find out more from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's fascinating episode of Managing Your Financial Future!
One of the most valuable things you can have, both before and after you retire, is a steady stream of income. What makes it more valuable to you is if that income is protected (meaning "guaranteed") by some entity, like the federal government, the PBGC, or the claims-paying ability of an insurance company.
Two forms of protected income that people generally receive at retirement are Social Security and pensions. These, either together or separately, form the basis of your financial plan and can help determine how much extra income (if any) your nest egg will need to provide for you. In other words, the more protected income you have, the less you’ll have to rely on your savings.
Why is this so important? Find out from podcast host Johnny Dean and his guest, “Professor” Rick Plum, CFP® on this week’s episode of Managing Your Financial Future!
Converting your traditional IRA to a Roth IRA is not a decision that should be taken lightly. While tax-free growth is always nice, sometimes the price you have to pay – mostly income taxes on the conversion – makes it not worth doing.
But for many people, right now may be the perfect time to convert their pre-tax funds into a Roth. How do you know if and when you should make the move? Are there other considerations besides having to pay taxes right now that may sway you one way or the other?
These are important questions. Find out what you need to know from podcast host Johnny Dean and “Professor” Rick Plum, CFP® on today’s episode of Managing Your Financial Future!
Many people have a retirement savings goal in mind, a level of money that they believe is enough. Once they reach that goal, they feel they’re ready to retire. And that’s a good plan.
But what happens if your nest egg takes a big hit from the stock market just after you hang it all up for good? Do you really have to either go back to work, or maybe take less of an income in order to make your savings last?
Podcast host Johnny Dean and “Professor” Rick Plum, CFP® have what may be some good news for you if you find yourself in that situation. Learn more on today’s episode of Managing Your Financial Future!
People tend to focus a lot of their attention on building their nest egg: which investment strategies to use in order to achieve a good rate of return. But surprisingly little notice is given to how you should extract that money at retirement. And this may be the more important aspect.
No matter how much money you accumulate over your lifetime, if you're careless with how it's eventually spent, it could be gone well before your time is up. So how do you potentially make your money last at least as long as you do?
Learn what you need to know about portfolio withdrawal strategies -- like Buckets -- from podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future!
Just a few years ago, the rules regarding Required Minimum Distributions (RMDs) were fairly simple: you turned age 70 ½, you had an RMD. But since the passage of the SECURE Acts, you may – or may not – be required to take an RMD this year. How do you know?
That answer isn’t necessarily an easy one, for both IRA owners and for those who are the beneficiaries of an IRA. Did you know that you can be subject to RMDs even if you’re nowhere near age 73? If you aren't familiar with the rules, you may wind up paying a lot more in taxes than you thought.
As usual, it’s all about strategy. Learn more about what you may be able to do about it from podcast host Johnny Dean and “Professor” Rick Plum, CFP® on this week’s episode of Managing Your Financial Future!
After years of building your savings, there are a number of scenarios that threaten to deplete it. One of them is called Sequence of Returns Risk. Simply put, this means that if you retire just when the stock market takes a downturn, and you're selling stocks to provide yourself with an income, you're courting disaster.
What can you do about this? The answer may be as easy as choosing the right withdrawal strategy.
Learn more from "Professor" Rick Plum, CFP® and podcast host Johnny Dean on this week's episode of Managing Your Financial Future!
Most people are aware that there are two phases of your financial life: building your life savings, and then distributing that money to you at retirement. But there's a third phase that happens after you're gone, which many people pay less attention to than they should: distributing your life's assets to your heirs.
Making sure your money and your possessions go where you want them to go should be one of your primary concerns. If you don't state your wishes in writing, your entire estate could wind up being distributed by a legal entity, thus potentially cutting out those who should be receiving it. How do you keep this from happening?
Learn more about what steps you need to take to lessen the impact of probate, taxes, and family strife with podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future!
The 401k is designed to be a “set it and forget it” type of retirement plan: Set your allocation based on your age and risk tolerance, then contribute money each pay period, and let compounding do its job from there. And that’s a good thing.
But part of the potential success of your 401k plan has to do with how it’s structured to begin with. You may have an overwhelming number of investment choices which may cause you to just take what seems to be the simplest route. But doing that may actually curtail your chance of reaching your retirement plan goals.
How should you set up your 401k to give it the best potential chance of success? Podcast host Johnny Dean and Lucia Capital Group Wealth Manager Ronnie Sanchez tell you what you need to do on this week’s episode of Managing Your Financial Future!
If you've been a diligent saver, chances are good that you have a variety of assets in your name: cash, CDs, bonds, stocks, funds, retirement accounts, insurance products, a home, etc. At some point, though, you'll no longer be around and those assets will wind up going to your designated heirs.
And while everyone likes to receive money in any way they can, it would certainly be a lot better if they did so under the most favorable conditions possible, from both an income tax and an ease-of-transfer standpoint. So this creates the question: if you're going to leave money to someone after you die, how do you set up your portfolio to make it easy and cost-effective? In other words, which assets are the best - and worst - to inherit?
It all comes down to planning and strategy. Learn all about it from podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future!
Building up a nest egg over a period of years does not have to be complicated, in spite of what many investment professionals might tell you. The real "secret" is to simply save money, and save it on a regular basis.
When time is on your side, you have a certain amount of freedom to take an element of risk. Doing so, investing even during market downturns, can potentially pay big rewards down the road. But when it comes time to live off the savings you've built, you must employ an entirely different set of skills in order to keep that money from running out.
What do you need to do to build enough money to retire, and then what do you need to do to keep it from running out? Find out from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
The past 18 months or so have seen interest rates rise from near zero to levels we haven’t seen in more than a decade. This is great for savers, especially those who have become accustomed to earning little to nothing on their non-volatile assets.
Of course, a key part of the Bucket Strategy® involves taking income (cash flow) from those non-volatile assets, regardless of what they may or may not be earning. Now that interest rates have come back up, what does this new environment mean for the strategy going forward? Does it change the way you should be setting up your buckets?
Get the answers from podcast host Johnny Dean and “Professor” Rick Plum, CFP® on today’s episode of Managing Your Financial Future!
One of the biggest fears that retirees have is that they'll run short of money. A Bucket Strategy® aims to solve that problem by matching assets to liabilities, so that you're never in a situation where you need to sell a volatile asset in order to meet your spending needs.
The key, though, is that the strategy must be set up properly. How much safe (non-volatile) money should you have at hand, and how much should be allocated toward growth? This important aspect is one that too many financial pundits and journalists simply get wrong.
In this week's episode of Managing Your Financial Future, podcast host Johnny Dean and Rick "The Professor" Plum, CFP® tell you what the basic elements of the strategy should be, and how Buckets compares with the "traditional" methods of portfolio withdrawal.
You may have heard that if you take no more than 4 percent of your portfolio's value every year, it will (statistically) last at least 30 years. But does following this "4-percent rule" actually guarantee that you won't run out of money?
It does not. Too many factors can come into play over the course of a retirement that can interrupt - or completely disrupt - your ability to generate a lifetime of income. So what can you do to avoid the increasing worry as you get older that your money will eventually run out?
The short, simple answer is this: have a strategy. Podcast host Johnny Dean is joined today by Rashard Cook, VP and Wealth Manager at Lucia Capital Group, to talk about what Rashard sees as the most important ways to potentially make your money last at least as long as you do on this week's episode of Managing Your Financial Future!
Rather than focus on a single topic this week, we thought we’d take some time to answer the many and varied questions we’ve been getting via email from our podcast subscribers and listeners.
Just a few of the topics we’re covering this week: the sale of a primary residence, inheriting a home, annuity payments, taxes, Roth IRAs, and more.
Tune in and get your most pressing questions answered from podcast host Johnny Dean and his guest, “Professor” Rick Plum, CFP® on this week’s episode!
Maybe you’ve been saving most of your working life in a 401k. Great! But what happens when you retire? Should you leave that money in the 401k, or transfer it to an IRA? The answer, as it turns out, is “it depends.” Today’s episode starts off with an email asking why someone may want to do one or the other – or both.
Further along, we answer more of your email questions: taxes, 401k matching funds, Social Security benefits, and how pension payments may affect your ability to collect a full retirement benefit.
Email questions answered today with podcast host Johnny Dean and Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
The idea behind a Target Date Fund would seem logical – a kind of “set and forget it” investment that (presumably) gets safer as you age, giving you less exposure to stock market volatility the closer you get to retirement.
But on closer examination, Target Date Funds are not the panacea they appear to be. Yes, there are some qualities that make them worth owning, but as an investment that can carry you from youth to retirement – their original design – they fall short of the mark.
What’s the reality regarding Target Date Funds? Tune in to today’s episode with podcast host Johnny Dean and Rick “The Professor” Plum, CFP® and find out more!
"Traditional" investments consist mainly of stocks, bonds, and cash. Many people get by just fine with these, and simply alter their allocation as they age or as their goals and needs change.
Others, though, may want to consider investments that fall outside of the traditional group. Why? They may be looking for further portfolio diversification, or a potential hedge against market volatility, or they're able to withstand a greater degree of risk in exchange for the possibility of greater returns.
Should you consider owning alternative investments? And what exactly is an alternative? Learn more from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
It would seem to make sense that if you're retired, you can't "afford" the volatility of the stock market - thus, as you age, common advice is that you should own fewer stocks in retirement.
But is that good advice? The answer may depend on your withdrawal strategy. Do you need to access the money in your portfolio to help fund your near-term liabilities? Or do you have enough income from other sources, giving those volatile assets the time they need to potentially grow?
It may actually turn out that it's better to own more stocks in retirement, not fewer. Get the details from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
You've been working your whole life, and retirement for you has always been "at some date in the future." As you get older, the question becomes more real, and will eventually require an answer. This is something that financial advisors and planners deal with every day.
How do you know when you're really able to hang it all up? Maybe your portfolio balance hasn't reached the number you've always figured was the minimum amount you'd need. As it turns out, there's a chance, given certain generous tax laws and some basic strategy techniques, that you may be able to retire well before you thought you could.
On this week's episode of Managing Your Financial Future, Podcast host Johnny Dean and financial advisor "Professor" Rick Plum, CFP® discuss what you need to know when asking that all-important question: "When can I retire?"
As our parents age, it's only natural for us to want to keep an eye on them to make sure their finances stay in good order: bills paid, taxes done correctly, RMDs taken, etc. Sometimes that's much easier said than done.
How do you make sure your parents are on top of their financial situation as they get older? Is there a way to protect them from scams? How do you spot the signs that something might be wrong?
Podcast host Johnny Dean tackles these questions with his special guest Ara Freedman, wealth manager at Lucia Capital Group on this week's episode of Managing Your Financial Future!
Have you heard that you're going to be taxed on the Social Security benefits you receive? Or have you heard that they're never taxed at all? Many people have no idea what to expect.
This is because sometimes a recipient's Social Security benefits will wind up being taxed under certain conditions, while others may never pay a dime on their benefits at all, even if they receive the maximum amount allowed. confused yet? You're not alone.
When might your benefits be subject to income tax? How much will actually be taxed if that's the case? And most importantly: what can you do about it? Find out more with podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
For the past year or so, I-Bonds have come into favor among people who are looking for a higher rate of return on Treasuries. A little over a year ago, they were paying an annualized 9.6 percent rate of return. Today, they’re paying right around 4.3 percent. It would seem, then, that you’d have been better off buying them at that higher rate.
But maybe not – because of the way I-Bonds pay their interest, the current “lower” rate may actually be more attractive today. How is that possible? Learn all about it from podcast host Johnny Dean and “Professor” Rick Plum, CFP® on this week’s episode of Managing Your Financial Future!
Tax time may be over for most people, but for financial advisors, tax management is a year-round task. One of those tasks involves a “postmortem” of their client’s tax situation, where they can determine what may have gone right – or gone wrong – with their most recent tax return.
If you’ve ever wondered what a financial advisor looks for when managing taxes, and what you yourself may want to look at more closely, today’s episode is a peek inside that world. Podcast host Johnny Dean and “Professor” Rick Plum, CFP® welcome both LCG advisor Jonathan Savona, CFP® and wealth manager Ronnie Sanchez to the studio desk as they discuss some simple methods you can use to manage your taxes more efficiently.
Interest rates have risen sharply over the past 16 months, which is good for lenders, but not so much for borrowers. New mortgages now come with interest rates around 6 percent, pricing some people out of the market.
But for those who hold "older" mortgages with much lower interest rates, some opportunities may present themselves. If you've been working toward paying that mortgage down in order to own your home free and clear as soon as possible, you may want to consider other options that weren't necessarily available before.
What might you want to do in today's higher interest rate environment? Find out more from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on today's episode of Managing Your Financial Future!
Fear can either be a great motivator to get things done, or it can cause a person to retreat, cover up, and hope the issue will go away.
People who are retired have many financial concerns, but their biggest fear (according to the research) is running out of money. This often causes them to either be frugal beyond all reason, or to ignore their finances completely and just pray it all works out. Neither option is ideal.
What if we told you that you may have a lot less to fear in retirement than you thought? What if you may be able to retire without having to grow your portfolio to the moon? Is that possible? Find out more from podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future!
Roth IRAs have been in existence for 25 years, and while they're one of the more popular financial planning tools for many people, they're also quite often misunderstood.
Most investors may be aware of the tax-free nature of the Roth, but beyond that, there are a lot of unanswered questions: When can I get to my money? Can I access converted money? What is the 5-year clock? What is a Roth two-step?
Get the answers to those Roth questions, and more, from podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future!
The question is pretty straightforward: Do I need to use the services of a financial advisor, or can I simply manage my investments, my retirement income, and my taxes by myself?
The answer, though, is not readily apparent. A financial advisor can help a person with a little, with some, or with all of their financial needs, depending on what each individual requires. As we so often say, everyone's situation is different.
On this week's episode of Managing Your Financial Future, podcast host Johnny Dean speaks with Chris Lloyd, CFP®, ChFC from the Lucia Capital Group office in Scottsdale, AZ about what important questions you need to ask yourself when considering whether or not a financial advisor may make sense for you.
You may have heard of something the investing world refers to as Asset Allocation, which has to do with deciding between asset categories like stocks, bonds, CDs, alternative investments, etc. It's an important part of building your portfolio.
But there's another, equally important part that doesn't get talked about nearly enough: Asset Location. This has to do with how assets located in different types of accounts (Roth, IRA, or personal) are ultimately taxed to you. When done properly, an asset location strategy may dramatically decrease the amount you’ll ultimately pay in taxes on those assets.
Learn more about how it works and why it's important from podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future!
Building a nest egg is relatively easy if you're both consistent and patient. Regular contributions over time can lead to compounded growth, which may give you the amount of money you need to live on.
But while building a savings can be easy, keeping it from running out is a whole other challenge. How you take withdrawals from your savings once you're retired is crucial to the survival of your portfolio. If you've put yourself in a "reverse dollar cost averaging" (RDCA) situation, you could be asking for trouble.
What is RDCA, and how do you avoid it? Find out from host Johnny Dean and Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future!
You may have heard of a 529 Plan, which allows you to put money away for someone's college education, have it grow tax-deferred over the years, and then be taken out tax-free when the funds are used for qualified higher education expenses.
The problem has always been, though, that if the money wasn't used for those higher education expenses, it would be both taxed and penalized upon withdrawal. That rule has now changed - in some circumstances, you can use some or all of that money to fund a Roth IRA.
This is good news for many people who were looking at the prospect of extra taxes on a 529 Plan that had leftover money in it. Get the details from podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
Does retirement increase or decrease the amount of taxes you have to pay? You might think that once you begin retirement, your tax bill will tend to go up at first, since people normally have much (if not most) of their retirement funds in a company retirement plan (401k, 403b, etc.) - all of which are taxable upon withdrawal at ordinary income rates.
But is this really the case? Should retirees simply resign themselves to giving up a big chunk of their retirement savings to Uncle Sam? In this week’s episode of Managing Your Financial Future, podcast host Johnny Dean and “Professor” Rick Plum, CFP® talk about why you may actually owe less in taxes than you thought you would when you retire.
So you've got some money to save for retirement... Where should you put it?
Would it be better for you to take a tax deduction right now by contributing to your 401k plan, or would paying the taxes now and socking it away in the Roth, with the potential to take it out tax free later on, be a wiser course of action? This is a common dilemma for many people.
What may be the better option for you? Find out from podcast host Johnny Dean and "Professor" Rick Plum, CFP® what you need to know in order to make that decision on this week's episode of Managing Your Financial Future!
You've finally made it to retirement, and, presumably, you've got a certain amount of money saved up that you'll need to tap into from time to time. But the problem is that you don't want to take too much, because you don't know how long you'll live, and thus have no idea how much is "too much" to take out.
This is a common dilemma for retirees. You require a certain amount of money to meet your basic expenses, but it may have to last at least a few decades. Is there a "safe" amount you can withdraw each month so that you won't outlive your savings?
Podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® talk about how to figure out what may potentially be the "right" amount you can remove from your portfolio in this week's episode of Managing Your Financial Future!
A steady stream of cash flow is one of the most valuable things you can have, both before and after you retire. If that income is guaranteed by some entity -- the federal government, the PBGC, or the claims-paying ability of an insurance company -- then so much the better.
Pensions and Social Security are two forms of guaranteed income that people receive usually after they've retired. They form the basis of your financial plan and help determine how much extra income (if any) your portfolio will need to provide for you. In other words, the more guaranteed income you have, the less you'll have to rely on your savings.
Why is this so important? Find out from podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
You may have heard that Social Security has something called "Spousal Benefits," where your current spouse can receive a benefit based on your work record, even if they never held a job in which they paid FICA taxes. But did you know this rule may also apply to an ex-spouse?
We've had questions about this in the past, with many people wondering how they can PREVENT an ex from taking a Social Security benefit from them. But the truth is, while there's nothing you can do about it, it also won't have any effect at all on your own benefits.
We'll also answer two other common questions: can I work and still collect a Social Security benefit? And: are my kids ever eligible to receive a benefit? Tune in to this week's episode of Managing Your Financial Future with host Johnny Dean and his guest, "Professor" Rick Plum, CFP® and get the answers!
The US tax system is by design a complicated beast, and trying to understand it all is a futile challenge. And yet, it's extremely important that people understand how certain elements of it work. As we so often say, tax knowledge is tax power.
Most taxpayers assume that the amount of tax they pay is determined by which tax bracket they're currently in. This is both a true and untrue statement. If you're in the 24 percent bracket, does that mean every dollar you earn is taxed at that rate? Going forward, yes; looking backward, no.
Confused? Tune in to this week's podcast with host Johnny Dean and Rick "The Professor" Plum, CFP® to get the clear explanation in this week's episode of Managing Your Financial Future!
It's tax time! Although tax returns aren't officially due until mid-April, the first quarter of every year is when the forms arrive in the mail, as we start to compile information to begin the dreaded process of filing.
With the myriad forms that so many people have to deal with, it's good to know which ones you'll most likely be seeing, and what you'll need to do with them. How do you make sense of it all?
Learn more from podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
As of 2023, the age when you must begin taking Required Minimum Distributions from your IRAs has been increased. This means you may have as many as three extra years to allow your savings to grow tax deferred.
This may sound like a great idea: why pay taxes now when you can delay the inevitable for at least a little while longer? But the answer to this question isn't so simple. Is it always better to delay paying taxes until you're required to do so, or could you potentially be better off by taking distributions well ahead of when you're mandated?
Get some answers from podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
The SECURE 2.0 Act is now law. The legislation was signed by the president in late December of 2022, and it provides a whole slate of changes that are designed to help strengthen the retirement system—and Americans' financial readiness for retirement.
The Act itself contains dozens of provisions, building on earlier legislation that, among other things, raised the Required Minimum Distribution (RMD) age and allowed workplace saving plans to offer annuities.
Which parts of the SECURE 2.0 Act may be most pertinent to you? Podcast host Johnny Dean speaks with "Professor" Rick Plum, CFP® who read the entire law and culled down the important parts, presented here on this week's episode of Managing Your Financial Future!
Interest rates went up quite a bit in 2022 - did you notice? It's a pretty sure bet that you did, since everything from mortgages to credit cards to the value of the stock market were affected.
But are higher interest rates good or bad? Depends on whom you ask. To borrowers, it's not so hot. But to lenders and savers, these rate levels that we haven't seen for more than a decade may be a really good thing... if you take the proper steps through planning.
How might a Bucket Strategy take advantage of this current interest rate environment? Learn more from podcast host Johnny Dean and "Professor" Rick Plum, CFP ® on this week's episode of Managing Your Financial Future!
The new year brings with it some new opportunities, on both the planning and the saving sides. There are new contribution limits on your retirement plans, a fairly large cost of living adjustment on your Social Security benefits, a slight decrease in your Medicare premiums, and much more.
Beyond that, there are also new opportunities to plan. Should you adjust your tax withholding? Will the new Social Security wage base affect your spending this year? Are HSA's (Health Savings Accounts) still potentially a good deal? What about charitable giving?
These and other questions discussed and answered with podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future!
It's a common scenario: you decide to take your Social Security early, maybe age 62 or 63, and then at age 65 you'll begin taking your pension benefits. You've already calculated what both your Social Security and pension payments will be, and so you set up your budget and your lifestyle accordingly.
But once your pension benefits kick in at age 65, you find out, maybe too late, that your Social Security payments have been reduced — or even eliminated. All of your careful planning is out the window, and now you have to figure out how to get by.
This can happen to people who aren’t aware of the rules regarding Social Security benefits and certain pension payments. Find out more about what to expect, and how to deal with it, along with some information on the rather large increase in the COLA for Social Security, from podcast host Johnny Dean and his guest, “Professor” Rick Plum, CFP® on this week’s episode of Managing Your Financial Future!
In the classic 60/40 stock-bond portfolio, the stock portion is supposed to provide the gains, while the task of the bond portion is to cushion the fall when stocks are going down in value. This past year, though, things haven't quite worked out that way.
Both stocks and bonds are down in 2022, as interest rates have risen in an effort to thwart inflation. Without this so-called "protection" from bonds, could there perhaps be a better alternative that an investor may want to consider?
Podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® discuss why certain fixed annuity products may potentially work better than bonds on this week's episode of Managing Your Financial Future.
If you’re accustomed to living on a certain amount each year, with fairly stable savings account balances, it can be a real shock to the system when you suddenly receive a large influx of money that alters your current financial situation.
While a small percentage of people achieve this through winning some kind of cash prize, more often than not it comes about through an inheritance. Even if that inheritance was expected, the resulting “shock” can be either a good thing or a bad thing. It all comes down to planning.
How can you help your heirs potentially avoid the so-called “Sudden Wealth Syndrome?” Join podcast host Johnny Dean and “Professor” Rick Plum, CFP® along with their special guest, Joe P. Lucia, wealth advisor and President of Lucia Capital Group for answers to that important question on this week’s episode of Managing Your Financial Future!
A little over a year ago, when the markets were sitting at all-time highs, we addressed the wisdom (or maybe lack thereof?) of converting a traditional IRA (or 401k) to a Roth. Since taxes must be paid in the conversion process, we wondered if high valuations would make it less desirable at that time.
The markets in 2022 have not been so kind to investors, as values across the board have come down, in some cases significantly. Given these circumstances, are lower stock values any better for those who want to convert? Or are other factors also at play when making this decision?
Podcast host Johnny Dean speaks with his guest, "Professor" Rick Plum, CFP® about what you still need to consider when doing a Roth conversion in this week's episode of Managing Your Financial Future!
As the year winds down, your opportunity window is also closing to get some things taken care of in 2022. Taxes, retirement plan contributions, RMDs, charitable contributions -- these are things that need to be done before the new year.
What money moves do you need to be concerned about while there's still time? Tune in to this week's episode of Managing Your Financial Future with podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® and get the details!
As the year winds down, your opportunity window is also closing to get some things taken care of in 2022. Taxes, retirement plan contributions, RMDs, charitable contributions -- these are things that need to be done before the new year.
What money moves do you need to be concerned about while there's still time? Tune in to this week's episode of Managing Your Financial Future with podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® and get the details!
A couple of years ago, we asked the question: why would you own bonds when they (were) paying so little interest? Many others wondered the same thing, turning to the stock market to help potentially bolster their overall rate of return.
Interest rates have risen dramatically in 2022, which changes the question just a bit: is it good to own bonds during a period of rising interest rates? As rates go up, the value of your bonds goes down. Wouldn't it seem like it's better to own bonds when interest rates are falling? And what about bond funds?
It's a complicated world out there, but podcast host Johnny Dean and his guest, Rick "The Professor" Plum, CFP® provide you with some answers on this week's episode of Managing Your Financial Future!
One of the most well-known investing terms is "diversification." This is the idea that risk can be spread out by investing over a wide variety of different industries, areas, and/ or financial instruments.
While this true to an extent, there is such a thing as being over-diversified, to the point where much (if not all) of your rate of return is watered down by having too many stocks with varying rates of return.
So is there potentially an "ideal" number of stocks you should own, one that walks the line between the two extremes? Find out from "Professor" Rick Plum, CFP® and podcast host Johnny Dean on this week's episode of Managing Your Financial Future!
We've been strong advocates of the Bucket Strategy since the 1990s, and came to the conclusion long ago that no one should have to depend on stock market gains to fund their current living expenses. Buckets was designed to address that issue.
With the stock market going through yet another down cycle in 2022, the issue of maintaining a guaranteed cash flow in retirement is once again at the top of many retirees' concerns. And with that, we've found that other advisors around the country have also determined that a Bucket strategy may be the best way to help address those concerns.
This week, podcast host Johnny Dean and Rick "The Professor" Plum, CFP speak with Joe Accardi, founder and chairman of the Accardi Financial Group in Boston, MA. Mr. Accardi speaks about how his experiences many years ago led him to the Bucket Strategy, and why his firm uses it to provide income to their clients.
2022 has been a year of stock market volatility, but it's also been a year that's given many people a surprise on their tax bill. When income from stocks is down, you might think that your tax bill should be lower. But in some instances, this hasn't been the case.
Part of the problem stems from the fact that stocks ended 2021 on such a high note. Because of that, your Required Minimum Distributions for this year, which are based on your year-end balance from last December, have often been higher than many people expected.
And why are some people getting a bill this year for extra capital gains taxes? These questions and more are answered this week as podcast host Johnny Dean speaks with "Professor" Rick Plum, CFP® and Lucia Capital Group Advisor Jonathan Savona, CFP® on this week's episode of Managing Your Financial Future.
As some investors already know, there is a distinct correlation between risk and reward. The greater the potential reward for an investment, the higher the risk. On the other side of the coin, lower-risk investments tend to produce lower rates of return.
This is something that many people often forget — especially those investors who are new to the game. If you pay attention only to a particular investment’s prior performance without looking at the potential risks involved, there could be devastating consequences for your portfolio later on.
Purchasing investments based solely on their rate of return is what’s known as “chasing yield,” and it’s a mistake that can and should be avoided. Find out more from host Johnny Dean and our advisor, Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future!
Creating a withdrawal strategy in retirement, one that aims to keep you from running out of money before you run out of time, is a unique - and difficult - challenge.
It involves much more than simply trying to achieve the best rate of return. With so many external factors that are out of your control, a good financial plan will also focus on managing risk.
How is a financial plan put together? Jonathan Savona, CFP® joins podcast host Johnny Dean and Rick "The Professor" Plum, CFP® to talk about what they believe are the key building blocks in this week's episode of Managing Your Financial Future!
A 401k is often looked at as a "set it and forget it" type of plan: allocate your investments, and simply make regular ongoing contributions from there. And if you're a young person who's many years away from retirement, that may be a very sound way to look at it.
But while a 401k may be somewhat "think-proof," your asset allocation within the plan is actually very important. A young person may not want to be too conservative, while someone who's nearing retirement may be better served with a less aggressive strategy.
Seems obvious, right? Maybe not. Podcast host Johnny Dean and "Professor" Rick Plum, CFP® offer some very helpful tips on what you need to know about your 401k investments on this week's episode of Managing Your Financial Future!
How is it possible that two individuals could retire with the exact same portfolio allocation and use the exact same withdrawal strategy, and yet one is still going strong after 40 years while the other is completely destroyed before year 10?
The problem comes with the uncontrollable element of investing: the stock market itself. What happens with the markets in the first few years after retirement can determine the success or failure of a financial strategy.
This is why your strategy needs to anticipate what may happen before it actually does happen. Learn more about how to potentially protect yourself from the uncontrollable market swings with podcast host Johnny Dean and Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future!
A lot of people's attention is focused on building a nest egg: which investment strategies you should use in order to achieve a good rate of return. But surprisingly little notice is given to how you should extract that money at retirement. And this may be the more important aspect.
No matter how much money you accumulate over your lifetime, if you're careless with how it's eventually spent, it could be gone well before your time is up. So how do you potentially make your money last at least as long as you do?
Learn what you need to know about portfolio withdrawal strategies -- like Buckets -- from podcast host Johnny Dean and his guest, Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future!
How is inflation affecting retired people? Does a rise in interest rates create problems or opportunities? Are people in a panic about the stock market, as volatility seems to be the name of the game in 2022?
These are all great questions, as podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® invite Jonathan Savona, CFP® into the studio to discuss these issues, and what his clients are talking with him about.
Get some valuable insight into the advice a financial advisor may recommend to a client during uncertain economic times on this week's episode of Managing Your Financial Future!
We like to get the perspective of other advisors and what their clients are talking to them about. In this episode of Managing Your Financial Future, podcast host Johnny Dean and Rick "the Professor" Plum, CFP® talk with longtime financial advisor Terry Keyes, ChFC about what's on the minds of retirees and near-retirees.
Are people really concerned about interest rates, inflation, and a volatile stock market? Or are they able to ignore all the noise and just focus on living their lives? You may (or may not) be surprised to learn that those with a financial plan, a strategy that aims to deal with those issues, are far less worried about the future.
Is it really possible to take a six-figure income and pay no federal taxes? Depending on your income sources, and how you use the tax brackets, it is indeed possible.
What it all comes down to is knowing how the tax brackets work, and knowing what income is taxed at what rate. The bigger picture for you is this: tax management is one of the keys to potentially paying a lot less.
Also: is now a good time to do a Roth conversion? How do you decide between a Roth contribution and a traditional IRA? These and other tax tips/answers from podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
It's not uncommon for people to reach their retirement years with money socked away in different types of accounts: a 401(k) from work, some personal money in a brokerage account, and maybe some Roth IRAs, to name a few.
Once you reach the stage of life where that money needs to be withdrawn, the important question is this: from which account(s) should my funds be taken out, and in what order? Do I spend my fully-taxable IRA money first, do I defer and use the Roth or personal funds, or some combination of all?
Getting it right is vital. Find out more about the "Spending Order of Funds" with podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
You've saved a certain amount to live from during retirement, maybe many years. This is your nest egg. But you're concerned, because the markets are down, the balance has dropped, and since you don't know how long you'll live, you have no clue how much is "too much" to withdraw each month.
Retirees face this dilemma all the time. You need a certain amount to meet your basic expenses, but the money may have to last at least a few decades, regardless of outside market conditions. What can you do? Is there a "safe" amount you can withdraw each month so that you won't outlive your savings?
Podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® talk about how to figure out what may potentially be the "right" amount you can remove from your portfolio in this week's episode of Managing Your Financial Future!
In the world of investing, there are things you can control, and things you cannot. Where is the stock market headed? Which way are the economic trends going? These are the uncontrollable aspects, impossible to predict with accuracy.
Because of this, we have to assume that certain risks will occur along the way. And while we don't know which risks will happen when, by being prepared for them, we can potentially achieve a better outcome.
Learn more about why it's so important to manage risk and how to prepare for unforeseeable events with podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
The first half of 2022 has not been good to stocks. After hitting record highs at the end of 2021, it's easy to forget that stocks also go down in value from time to time. And often, when they go down, they do so quickly and painfully.
One question that's always on people's minds when these cycles turn south: Is this something to be concerned about? The answer to that question may depend almost entirely on what your portfolio withdrawal strategy looks like. If you don't need that money for at least 10 years, it may be no big deal. If you need it next week, it is indeed a very big deal.
You need to know how to set up your withdrawal strategy so that the down cycles don't interfere with your sleep cycles. Find out more from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
In last week's episode, we discussed the various ways that a guaranteed income stream can work; specifically, how annuities function in general. We received a lot of response to that topic, and more than a few questions as well.
When deciding when and how to take your annuity or pension payments, your options can seem almost unlimited. Sorting it all out requires an understanding of the potential outcomes that each choice brings.
In this week's episode of Managing Your Financial Future, podcast host Johnny Dean and "Professor" Rick Plum, CFP® take you through this decision process, and give you some valuable tips you should consider before you make an irrevocable income decision.
There are few financial tools out there with a greater disparity of information than annuities. Locating the details you need in order to decide if an annuity is suitable for you is an onerous task, to say the least.
We're here to help. Is an annuity a good product for you? The best answer is this: it depends. There are several factors involved, but the first step is knowing something about them. by knowing what you may be buying, you're in a far better position to answer the suitability question.
This week's episode of Managing Your Financial Future with podcast host Johnny Dean and Rick "The Professor" Plum, CFP® give you details on how annuities work, what to look out for, how they're taxed to heirs, and much more.
Required Minimum Distributions (RMDs) are a fact of life for most IRA owners who are at least 72 years of age. A certain amount of money must be distributed out of the IRA each year, or the IRS imposes a strict penalty on the missed amount.
How strict? 50 percent of the amount you were supposed to take out! That's a scary proposition, but what if, for one reason or another, you missed your RMD for one or more years? What now?
In this week's episode of Managing Your Financial Future, podcast host Johnny Dean and Rick "The Professor" Plum, CFP® talk about ways to potentially remedy this situation, and maybe -- maybe -- not have to pay the penalty. Have a listen and find out more!
The Bucket Strategy is designed to give you cash flow from assets that are not affected by the whims of the stock market. You don’t want your income to be cut simply because the markets aren’t doing well, and this is the basic premise of Buckets.
Is it complicated? Yes and no. How each person’s Buckets should be set up is almost completely dependent on their goals and their risk tolerance. It’s not very often a matter of “set it and forget it.”
In this week’s episode of Managing Your Financial Future, podcast host Johnny Dean speaks with “Professor” Rick Plum, CFP® about what’s easy – and what’s not so easy – about designing a potentially effective Bucket Strategy.
If you're an heir who's a beneficiary of any kind of asset, then you may know that it can be both a good and a bad thing. For many people, an inheritance is like a gift from above, something that will improve their life in one form or another.
For others, especially those who don't necessarily need the inherited asset(s), that gift can turn into a real headache - especially from a tax standpoint. Knowing ahead of time how to minimize the downside and potentially maximize the upside is a big part of financial planning.
The "Great Wealth Transfer" between Boomers and their children has begun. Find out more about what you need to know and need to do from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
A steady income is one of the most valuable things you can have, both before and after you retire. If that income is guaranteed by some entity -- the federal government, the PBGC, or the claims-paying ability of an insurance company -- then so much the better.
Pensions and Social Security are two forms of guaranteed income that people receive usually after they've retired. While many (if not most) people will have a Social Security benefit paid to them, pensions are less common today than they used to be.
So in absence of a company pension, how might you create a form of guaranteed income? Find out from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
In the financial planning world, a lot of focus is put (rightly) on those who want to retire around age 65, give or take a few years. But what about people who are looking to hang it all up well before that age - maybe 55, 50, or even younger?
It's more common than you might think. Doing it successfully, though, is a much bigger challenge. After all, your nest egg needs to last at least as long as you do, and at that age you're not yet eligible for Medicare or Social Security. So how do you make it happen?
There are ways to do it. Learn more from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
There are at least three important pieces to the retirement portfolio puzzle: asset allocation, asset location, and asset withdrawal. The first two are related to the accumulation (or saving) phase, and the third has to do with the decumulation (or withdrawal) phase.
Which assets should go where when saving for retirement? Tax-free, tax-deferred, or personal accounts? A combination of some or all? And when you're taking the assets out of the portfolio, which one(s) should ideally come out first?
Get the answers to these questions from podcast host Johnny Dean and his regular guest, "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
One thing that many people would agree on is that paying no taxes is better than paying any taxes at all. This makes the tax-free nature of Roth IRA withdrawals very attractive, as long as all of the specific rules are met.
Of course, there's a cost to getting money into a Roth IRA. Whether it's via a contribution or a conversion, a Roth can only accept post-tax money. Thus, you have to consider whether paying the taxes on the money now is worth the ultimate result of tax-free later.
What are the costs and benefits of Roth IRAs? Find out from podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
What if you retire at the "wrong" time? There's a genuine fear among many people that right around the time they need to access their nest egg, their portfolio will suffer a big decline because of an unanticipated market crash.
There's nothing we can do to predict or prevent a drop in the stock market. And sometimes we have no real choice as to when we can no longer work. So if these two variables are uncontrollable, what can you do besides hope and pray?
It all comes down to having a strategy. Podcast host Johnny Dean talks with "Professor" Rick Plum, CFP® about how you may be able to retire without having to worry about the the ups and downs of the stock market on this week's episode of Managing Your Financial Future!
In the world of investing, time can be one of your biggest allies. As your time span grows shorter, though, your risks tend to go up: if you need your money sooner rather than later, your stock investments could take a downturn at just the wrong time, leaving you without the funds you need.
A Target Date Fund in a 401k is designed to deal with this time-related risk. As you get closer to retirement, and thus closer to needing your funds, the investments are supposed to become more conservative overall, less volatile, with the goal of preserving your principal.
But it doesn't always work out this way. Find out from podcast host Johnny Dean and "Professor" Rick Plum, CFP® why these funds may actually cause greater risk to you inside your 401k on this week's episode of Managing Your Financial Future!
You may have heard of the old financial planning adage that says as long as you withdraw no more than 4 percent of your portfolio's balance each year, it has statistically a much better chance of surviving over a 30-year timespan. Some have said the withdrawal rate should be even lower than that -- maybe no more than 2 percent.
But whether the amount is 4 percent, 2 percent, or some other number, the more important issue is this: what is your withdrawal strategy? Will you potentially have to sell stocks when they're down in value in order to meet your spending needs? If so, you're asking for trouble.
In this week's episode of Managing Your Financial Future, podcast host Johnny Dean speaks with "Professor" Rick Plum, CFP® about how the "4 percent rule" is really just a guideline, and why having a sound withdrawal strategy may be your bigger key to success.
It’s tax season! This means forms, deadlines, maybe extensions, payments, refunds, and for many, a gigantic volume of information. And yes – it all must be done correctly.
When was your W-2 supposed to arrive? How about your 1099 forms? Are you getting any K-1's, or maybe a 5498 or two? What if a form arrives in your mailbox and you’ve already filed your taxes?
These questions are valid, and there are answers. Get the answers from podcast host Johnny Dean and “Professor” Rick Plum, CFP®, on this week’s episode of Managing Your Financial Future!
When should you start taking your Social Security benefits? This is an important question, and one that’s often dreaded by people who don’t want to make the “wrong” decision.
They often look at it as a “one and done” choice, which heightens their anxiety about getting it right. But maybe it isn’t an irrevocable decision – maybe there’s a strategy that you hadn’t considered.
On this week’s episode of Managing Your Financial Future, podcast host Johnny Dean talks with “Professor” Rick Plum, CFP® about how you may be able to push the “undo” button on your Social Security benefits!
The Bucket Strategy has been around for more than 25 years, in one form or another. Why has it survived for as long as it has? With all of the withdrawal strategies that have come and gone over the years, Buckets has managed to become a mainstay for many advisors around the country.
In this week's episode of Managing Your Financial Future, podcast host Johnny Dean talks with the "Professor" Rick Plum, CFP® how he became a financial professional and why the Bucket Strategy is his preferred method of taking income in retirement.
Home prices are up pretty much everywhere, and for those who own one, this is good news on many different fronts. If you're considering selling and maybe downsizing, or moving to a less expensive area, you may be able to take advantage of one of the best tax breaks out there.
On this week's episode of Managing Your Financial Future, find out from podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® why your primary residence may be your best friend when it comes to capital gains taxes!
In the world of financial planning, it's often better to do things sooner rather than later. That is, after all, why you do planning, isn't it? No point in waiting until the very last minute.
As it's still early on, there are some things that you're much better off taking care of right now, before the year wears on, before the ticking clock becomes louder, and before these things slip your mind.
What do you need to know? Find out from "Professor" Rick Plum, CFP® as he talks with podcast host Johnny Dean this week on episode 1 of Season #8 of Managing Your Financial Future!
If you've been saving for a long time in your 401k, you may have decided as you approach retirement that you’d like to reallocate some of those investments into something less volatile than, say, an aggressive growth fund. So maybe you change your allocation to include something with relative safety.
This can be a great idea: after all, you don’t want a big market downturn to take a huge chunk out of your savings right when you need it. But as you reallocate, you may also want to consider changing how you contribute your new money.
On this week’s episode of Managing Your Financial Future, podcast host Johnny Dean talks with “Professor” Rick Plum, CFP® about things you should do with your 401k as retirement gets closer.
Whether you need the money to live on or not, it's a fact that once you reach age 72, you're generally required to take a certain amount of money each year out of your tax-deferred retirement accounts. These are your Required Minimum Distributions, or RMDs.
The penalty for missing an RMD is severe: 50 percent of the amount you missed! That's not fun, and it certainly is costly. So what happens if you accidentally miss the RMD for a given year? Are you simply out of luck?
Maybe not. Learn more about what remedies you may have available to you with podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
Financial knowledge is crucial for retirement planning. This is especially true when it comes to taxes, because knowing too little may wind up costing you a whole lot.
The problem, of course, is that taxes can be extremely complicated. Sometimes when you make one financial move, that move can trigger an extra tax bill that you never anticipated.
In this week's episode of Managing Your Financial Future, podcast host Johnny Dean speaks with "Professor" Rick Plum, CFP® about how even a little knowledge about taxes may go a long way toward saving you money when you file your return!
It's always nice to receive a big chunk of money outside of our normal expected income. Whether it's a bonus check from work, a lottery windfall, or an inheritance of some kind, any extra cash is generally a good thing.
If you've inherited an IRA, though, whether it's from a deceased spouse or someone else entirely, there are some rules you need to be aware of. Depending on when the person died and how old you are when you received the asset, among other things, if you're not careful with how you treat it, you could be looking at a bigger tax bill than you'd expected.
Learn more about this important topic from podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
Congress passed a law a few years ago that temporarily lowered tax rates across the board for most individuals. With these laws set to expire after 2025, you might be wondering: is now a good time to convert my traditional IRA to a Roth IRA?
It might be, but you should be aware of the consequences of adding extra income to your tax return. While tax rates might be favorable right now, if you decide you want to convert a large sum -- that is, extend yourself up another bracket or two -- you may be subjecting yourself to more than just extra taxation on that conversion.
What should you be aware of if you decide to convert to a Roth? Get more information from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
You’ve probably made plans to take care of those people who are close to you if you didn’t live as long as you’d expected: life insurance, trusts and wills, succession planning for your business, etc.
But have you thought about you might do if you lived much longer than you thought you would? Are you prepared if you find yourself in your 90s, or even older, and in need of an income? What if you needed long term care for an extra-long term?
There are things you can (and should) do to plan for a long life. Podcast host Johnny Dean and his guest, “Professor” Rick Plum, CFP® talk about ways you may be able to protect yourself and your income in this week’s episode of Managing Your Financial Future.
This episode covers some of your most common Social Security questions that we get every week: How can I avoid paying taxes on my benefits? Is there an ideal age to start taking benefits? Can I collect a benefit even if I’m still working? How do the spousal and survivor benefits work?
Social Security provides a baseline for many people’s retirement plans, which is why it’s important to be as well-informed on the topic as you can be. Get some answers to your questions from podcast host Johnny Dean and “Professor” Rick Plum, CFP® on this week’s episode of Managing Your Financial Future!
When people ask us about our Buckets strategy, they often find themselves a bit confused on their most liquid bucket – Bucket #1. The idea is to provide an income derived from sources with little to no volatility, shielded from the stock market’s ups and downs.
But what should go into that bucket? Do you really need to have 5, 6, or 7 years of, say, cash? Not necessarily – in fact, it may be a good idea to “bucketize” your Bucket 1 to try to “squeeze just a little extra juice from the orange.”
Charming metaphors aside, it is an important topic, which is why we’re talking about how to structure your Bucket 1 with podcast host Johnny Dean and “Professor” Rick Plum, CFP® on this week’s episode of Managing Your Financial Future!
It’s been said that taxes are perhaps the biggest drag on your portfolio’s returns. So it would stand to reason that managing your taxes, with the goal of keeping them as low as possible over the course of many years, should be one of your biggest financial planning priorities.
But “managing” your taxes is different from “minimizing” them. There may indeed be times where paying a little more in taxes now could save you much more down the road: maybe for the rest of your life. Get the details from podcast host Johnny Dean and his guest, “Professor” Rick Plum, CFP® on this week’s episode of Managing Your Financial Future!
For anyone with a pension, the decision of how to take the payments is an important one. Are you offered the choice to take the entire amount as a lump sum? If so, you’ve got to know about what could happen when you decide to go one way or the other.
And for married people, there are even more choices, compounding the issue even further.
On this week’s episode of Managing Your Financial Future, “Professor” Rick Plum, CFP ® speaks with podcast host Johnny Dean about what you need to consider before you make this “one-and-done" decision. Tune in and find out more!
If you’ve ever looked at your investment options inside your 401k plan (or other retirement plan at work), you might have felt overwhelmed by the number of choices. Even if your choices aren’t necessarily numerous, how do you know whether you should go all in with stocks, or maybe keep it safer with a blend of volatile and non-volatile assets?
This decision is big, and going the wrong way can lead to significantly different outcomes in the future. In this week’s podcast, host Johnny Dean and his guest, “Professor” Rick Plum, CFP®, talk about what you need to consider when setting up your asset allocation for your 401k. Go Big? Go small? Go safe? Tune in, and find out more!
When it comes to saving for retirement, the decision to put your money into either a Roth or a Traditional IRA may be more complicated than you think. Part of the decision involves your tax bracket today vs. your tax bracket at retirement, but there’s more to it than that.
When is investing in a Roth IRA a better idea than a traditional? On the other hand, who should consider a Traditional IRA over a Roth? And what are the consequences, good and bad, of doing one or the other? Get the answers to these questions, along with an in-depth look at both types, with podcast host Johnny Dean and “Professor” Rick Plum, CFP®, on this week’s episode of Managing Your Financial Future!
So you've made it to retirement, and, presumably, you've got a certain amount of money saved up that you'll need to tap into from time to time. But you're concerned: you don't want to take too much, because you don't now how long you'll live, and thus have no idea how much is "too much" to take out.
This is a common dilemma for retirees. You need a certain amount to meet your basic expenses, but the money may have to last at least a few decades. Is there a "safe" amount you can withdraw each month so that you won't outlive your savings?
Podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® talk about how to figure out what may potentially be the "right" amount you can remove from your portfolio in this week's episode of Managing Your Financial Future!
So let's say your idea is to take your Social Security early, maybe age 62 or 63, and then wait until age 65 to begin your pension benefits. You know what both your Social Security and pension payments will be, and so you set up your budget and your lifestyle accordingly.
But then you find out, maybe too late, that your Social Security payments have been reduced -- or even eliminated -- once those pension benefits kick in. All of your careful planning has been cast overboard, and now you have to wing it.
That scenario can happen to those who aren't aware of the rules regarding Social Security benefits and certain pension payments. Find out more about what to expect, and how to deal with it, from podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
The topic of Social Security always brings with it many questions, which isn't surprising, given the complex nature of the program. Beyond the most popular questions, though, are a few that may impact you, even if you didn't think to ask about them.
Two of those topics are these:
Can I work and still collect a Social Security benefit?
Can my kids, or my ex-spouse, collect a benefit based on my work record?
The answer to each of these questions is yes -- if. What are the "ifs" you need to know about? Have a listen to this week's episode of Managing Your Financial Future, with podcast host Johnny Dean and "Professor" Rick Plum, CFP® and find out more!
Have you ever heard the idea that stocks are too volatile for retired people to own? There's even an old rule-of-thumb formula that tells you to decrease your stock holdings by 1 percent every year and replace them with bonds. These generic "guidelines," though, are hardly prudent advice for most people, because everyone's situation requires a different approach.
It may actually be more beneficial for some people to hold steady -- or even increase -- their exposure to stocks as they get older. What often matters more is having a suitable withdrawal strategy: one that aims to take volatility into account, potentially avoiding selling stocks when they're declining in value.
In this week's episode of Managing Your Financial Future, podcast host Johnny Dean talks with "Professor " Rick Plum, CFP® about why a "Buckets" strategy may help to actually counteract the effects of market volatility on a retiree's portfolio.
Real estate prices have been ticking up steadily over the past year or two, especially for mid-range single family homes. And while many people find that the only way they can afford a new home is to take out a mortgage, there are also those who have either enough current gains or enough cash on hand to consider buying a home outright.
Having the cash to pay for a home, versus investing that amount and taking out a mortgage, is something of a dilemma for some people. There are those who like the security of owning a home outright, but there are also those who believe they can earn more than the cost of the mortgage through savvy investing.
Which way may be potentially right for you? In this episode of Managing Your Financial Future, podcast host Johnny Dean and "Professor" Rick Plum, CFP® talk about what you need to consider before making that big decision!
It would seem to make some sense that once you begin retirement retirement, your tax bill will tend to increase - at least in the early years. The logic is that people normally have much, if not most, of their retirement funds in a company retirement plan (401k, 403b, etc.), which are all taxable upon withdrawal at ordinary income rates.
But is this really the case? Should retirees simply resign themselves to giving up a big chunk of their retirement savings to Uncle Sam? In this week’s episode of Managing Your Financial Future, podcast host Johnny Dean and our “Professor” Rick Plum, CFP® talk about why you may actually owe less in taxes than you thought you would when you retire.
It's the most common question we get when we're discussing Social Security: what's the best age to start taking your benefits? Naturally, everyone's situation is different, but there are general guidelines to determine if it's better to take them early, or to wait until later for a larger monthly benefit.
But it's not as simple as just saying, "if you think you'll live a long time, take them later; if not, take them sooner." Because in some instances, doing the exact opposite may work out far better for you. Podcast host Johnny Dean and "Professor" Rick Plum, CFP® discuss this all-important topic on today's episode of Managing Your Financial Future.
Maybe you've noticed that real estate prices have been soaring over the past year or so. And with the stock market gains we've experienced over that same period of time, you may have also seen a similar increase in the balances of your existing IRAs.
This has caused some people to wonder: if I want to buy real estate now, but I've only got my IRA funds available to do so, is it a good idea to buy real estate in my IRA, since that's where my money is?
In this week's episode of Managing Your Financial Future, host Johnny Dean and his guest, "Professor" Rick Plum, CFP® discuss the benefits of owning real estate personally versus in an IRA, and how you may be able to use those funds without the headache and hassle of having your IRA own it. Tune in and find out more!
When you're only a few years away from retirement, figuring out your basics -- income needs, expenses, activities -- is usually fairly easy. In many cases, your current basics will be relatively close to those you'll require once you've stopped working.
But how do you plan for all of that when you're much farther out from retirement - say, 15 to 20 years, or more? How are you supposed to make plans when you really have no realistic idea of what those income needs, expenses and activities will be?
On this week's episode of Managing Your Financial Future, podcast host Johnny Dean speaks with "Professor" Rick Plum, CFP® about how a professional advisor works toward achieving goals that haven't yet been established. Planning for the distant future: tune in, and find out more!
Maybe you recently got a bonus from work, or -- perhaps even better -- an inheritance from a relative. Whatever the case, if you find yourself with a lump sum of cash that you'd like to invest, a question should come to mind: do I invest it all at once, or do I phase it in over a period of weeks or months?
Many may be fearful that if they invest the amount in a lump sum, the market will take an immediate downturn. Or if they phase their investment in over a period of time, it will do the opposite and they'll miss out on gains. How do you deal with this dilemma?
It may just be a matter of knowing what your true options are. Find out more from podcast host Johnny Dean and "Professor" Rick Plum, CFP® in this week's episode of Managing Your Financial Future!
Estate planning - it’s not just for the ultra rich! While many people don’t have estates that are large enough to warrant an estate tax (which, for married couples, is in excess of $23 million for 2021), there are other aspects of estate planning that most individuals should be aware of.
The one that perhaps affects the most people is where beneficiaries are concerned. If you have assets that you want to go to specific people or certain organizations, it’s vital that you have your beneficiary assignments done correctly, even if you already have a will and a trust in place.
What do you need to know about beneficiary assignments? It’s all about making sure your assets go where you want them to go. Learn more from our “Professor” Rick Plum, CFP® and podcast host Johnny Dean on this week’s episode of Managing Your Financial Future!
Have you heard that your Social Security benefits are always going to be taxed as income? Have you heard that they'll be taxed at a 50% rate? Or have you heard that your Social Security benefits are never taxed at all? These statements (rumors, really) have made their way around the online world over the years, so that many people people have no idea what to believe anymore.
The truth is that sometimes a recipient's Social Security benefits will wind up being taxed under certain conditions, while others may never pay a dime on their benefits at all, even if they receive the maximum amount. Yes, it's confusing, but as we always say, knowledge in finance is power.
When might your benefits be subject to income tax? How much will actually be taxed if that's the case? And most importantly: what can you do about it? Find out more with podcast host Johnny Dean and his financial advisor guest, "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!
If you’re retired, or you’re approaching retirement, there’s a decent chance that you’ve got some money saved up in what’s known as a “qualified” retirement plan – meaning one that gave you a deduction going in, is tax deferred while it grows, and then will be taxable when the money comes out. In general, we’re talking about a 401k, 403b, or something your company set up that is not a government plan.
Since you’ve been saving that money for retirement, you may have wondered when the best time to take that money out might be. If you need it to fund your daily expenses, then the answer is easy: take it out as you need it. But if you don’t need the money right now, is it a good idea to leave it in the retirement plan until you’re mandated to take some out at age 72, or should you begin taking withdrawals before that time?
It’s all about tax management. Many advisors will take the lazy way out and tell you to always wait until later. But we don’t look at it that way. Find out why you may want to tap into your 401k earlier than the conventional wisdom suggests with advice from “Professor” Rick Plum, CFP®, as he speaks with podcast host Johnny Dean on this week’s episode of Managing Your Financial Future!
Conventional wisdom, rules of thumb, standard advice - those are what the lazy person often resorts to when they don't have an answer for you, or they can't figure out what to do. "Everyone else does it this way" is not always a good reason to pursue a strategy that may not be suitable for you and your goals.
One common piece of conventional "wisdom" is in the Social Security arena, which says that if you'll live a long time, always take your benefits as late as possible; if you don't think you'll live very long, take them earlier. This may be good advice for some, but for others, doing exactly that can cost them thousands of extra dollars in benefits that they would have otherwise been entitled to.
How do you know if following the common advice is potentially right or wrong for you? Just tune in to this week's podcast with host Johnny Dean and his guest, "Professor" Rick Plum, CFP®, and find out. It's all about Managing Your Financial Future!
One of the most common questions people ask us when they're considering the services of an investment advisor and/or financial planner is this: "what will this cost me in terms of fees?"
The question of how much an advisor charges, not just for their own services but for the team and others working alongside him or her, is one that you absolutely must get an answer for. And that answer should be clear, concise, and spelled out in simplistic form so that there's no mistaking who's getting paid, how much they're getting paid, and who is actually responsible for paying them.
Everyone should be paid for the work they do and the value they may add - you just need to be sure there are no surprises.
In this week's episode of Managing Your Financial Future, podcast host Johnny Dean speaks with "Professor" Rick Plum, CFP® about what kind of fees you should expect to see when you hire a financial advisor, and what to be particularly aware of before you sign on the dotted line.
Taxes can be scary. Whether you're anticipating a big tax bill this year, or you're fretting about a tax deadline that's coming up, or you're concerned that you're overpaying but can't find a way out of it. On top of that, the tax code is insanely large and complicated.
But oddly enough, the tax code also gives us some good things -- a few benefits that just may help allay some of those concerns. Learn more about 3 of those benefits, and how you might be able to use them, with podcast host and moderator Johnny Dean, and his guest, "Professor" Rick Plum, on this week's episode of Managing Your Financial Future!
If you've been planning on working until a certain age (62? 65? later?), but you find that you are a) overwhelmed by stress at work, and b) a number of years short of that "required" age, are you still able to retire? This is a question that financial advisors and planners deal with every day.
How do you know when you're really able to hang it all up? Maybe your portfolio balance hasn't reached the number you've always figured was the minimum amount you'd need. There's a chance, given certain generous tax laws and some basic strategy techniques, that you may be able to retire well before you thought you could.
On this week's episode of Managing Your Financial Future, Podcast host Johnny Dean and financial advisor "Professor" Rick Plum, CFP® discuss what you need to know when asking that all-important question: "When can I retire?"
Of all the financial products available to consumers, it is the annuity that is perhaps the most misunderstood. The initial concept of the annuity -- you give money to an insurance company, they pay you some, or all, of that money back (and maybe more) over time -- is rather simple. But over the years they've become more complex, with more features, more options, and (yes) in some cases, more fees.
Whether an annuity is suitable for you will depend on many factors. But it's never a good idea to own an annuity (or anything else) without understanding what you're getting and why it's been recommended to you. In this week's episode of Managing Your Financial Future, show host Johnny Dean and "Professor" Rick Plum, CFP® give you the basics of annuities, the types that are available, and answers to some of the most common annuity questions that advisors get. Tune in for all the details!
Have you heard of the "Gift Tax?" Many people are at least familiar with the term, but relatively few know how, when, or where it might be applied. You probably give gifts all the time: some small, some not so small, and some maybe quite large, as for example a downpayment on a home for your son or daughter. Generosity certainly has its benefits, but is there also a tax that someone should be paying?
The answer is both yes and no. And it all depends on a few factors. Knowing how the gift tax works can be especially helpful when it comes time to pass your assets down to your heirs, and if you're worth a lot of money, it's even more vital that you understand how it works. Find out who should worry about a gift tax and who should not on this week's episode of Managing Your Financial Future, with podcast host Johnny Dean and Rick "the Professor" Plum, CFP®!
You may have heard that individuals with annual incomes that exceed certain thresholds cannot contribute funds directly to a Roth IRA. This is true. So how can someone with an income above the limits enjoy the potential tax benefits of a Roth?
A simple strategy technique may allow you to do just that. Tune in to the discussion between podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP®, as they give you the information you need to know on this week's episode of Managing Your Financial Future!
What's your spending strategy in retirement? Are you (or will you be) extra frugal, concerned about maintaining a steady, or even a rising, account balance in your portfolio? Or do you have more than you need, with several sources of guaranteed income and/or enough socked away that you'll never outspend your projected lifespan?
When asked why people spend the way they do once they've retired, the answers always vary widely. Depending on where they are, where they've been, and what their goals are, the reasons behind people's spending are most often very personal in nature.
In this week's episode of Managing Your Financial Future, host and moderator Johnny Dean discusses this all-encompassing topic with "Professor" Rick Plum, CFP®. If you wish you'd saved more, or if you fear running out of money, you will not want to miss today's podcast!
All marriages end in one of two ways: divorce or death. If you live long enough with someone, eventually one of you will mourn the other. And whether a spouse's passing comes as a surprise or not, there will always be a list of tasks that the survivor must deal with at some point. But what are those tasks, and when do you have to perform them?
Good questions. And while everyone's situation is unique, there are a few things that most everyone who is in that situation should be sure to get done. On this week's episode of Managing Your Financial Future, podcast host Johnny Dean speaks with "Professor" Rick Plum, CFP® about what to do when your spouse passes away -- what you might consider taking care of first, and what can maybe wait until later. Tune in to find out more!
You may have heard that Social Security provides a "survivor benefit," which allows a surviving spouse to continue to receive their deceased spouse's benefits. The original intention (back in 1940) was to ensure that widows would not be left without a Social Security payment.
Today, though, with many dual-working households (and thus two Social Security benefits), those same survivor benefit rules may actually cause the survivor to take a cut in benefits -- in some cases, by nearly 50%.
How is that possible? And, even more importantly, how can you strategize to keep this from happening? Join show host/podcast moderator Johnny Dean and his guest, "Professor" Rick Plum, CFP®, as they discuss ways to potentially mitigate what has turned out to be an unintended consequence of Social Security's survivor benefits on this week's episode of Managing Your Financial Future.
No matter how much you save throughout your life, or how diligently you work to maintain your level of wealth, you can never really be sure that the money you’ve accumulated -- the money you need to live on throughout your retirement -- will last as long as you do. That thought can be more than a little unsettling.
The risks to your portfolio are many, and not all of them happen later in life. But with careful planning, you may be able to mitigate those risks and perhaps take some of the worry away as well.
In this episode of Managing Your Financial Future, show host Johnny Dean speaks with “Professor” Rick Plum, CFP® about what Rick believes are the three biggest risks facing your portfolio, and what you may potentially be able to do about them. Tune in to the podcast to find out more!
One of the old “rules of thumb” that’s been around since the early 1990s is the idea that your portfolio has a better chance of surviving 30 years if you withdraw no more than 4 percent of the total each year. Some have said it should be even lower than that, perhaps no more than 2 percent.
But whether the amount is 4 percent, 2 percent, or some other number, the more important issue should be your actual withdrawal strategy. Are you forced to sell stocks when they're down in order to meet your spending needs? If so, you're asking for trouble.
In this week's episode of Managing Your Financial Future, show host Johnny Dean speaks with our "Professor" Rick Plum, CFP® to get Rick's take on how the "4 percent rule" is really just a guideline, and why having a sound withdrawal strategy may be your bigger key to success.
It’s a fact that retirees in general dislike spending down their savings. In today’s low interest rate environment, and given declining dividend yields, how should one remove money from a portfolio for income without damaging the portfolio’s integrity and longevity?
There are several possible routes to take, and unfortunately, many people may be tempted to reach for yield with either low-quality bond purchases or stocks with higher dividend yields. But doing so almost certainly will raise the risk within a portfolio without any guarantee of higher returns.
What’s a potentially better way to take income? Show host Johnny Dean and financial advisor Rick “The Professor” Plum, CFP®, discuss what Rick believes is the way to work towards your income goals without resorting to risky behaviors on this week’s episode of Managing Your Financial Future!
When it comes to retirement savings, you have a fair number of choices available to you. One of the more popular options comes in the form of your employer’s 401(k) plan. And these days, a growing number of employers are offering a Roth option to that plan. The question for some people is whether the Roth option with their 401(k) is the right way to go.
Much of that decision revolves around your current, and future, tax situations. In this week’s episode of Managing Your Financial Future, our moderator Johnny Dean speaks with “Professor” Rick Plum, CFP®, about some supposed drawbacks of the Roth 401(k). Do the “cons” really outweigh the “pros” in this case? Get the facts and decide for yourself!
If it seems to you like 2020 was an unusual year, you’re right - in more ways than one! Of particular concern to many people was their financial situation. Whether it was dealing with a job loss or change of employment, working from home, unemployment benefits, stimulus checks, or something else entirely, there’s little question that our finances were impacted in many ways.
As we approach tax season, it’s important to understand how your finances were affected last year, and what repercussions there may be for your own tax situation. In this week’s episode of Managing Your Financial Future, show host Johnny Dean speaks with “Professor” Rick Plum, CFP®, about some pandemic-related conditions that may have a big impact on your money, business, and life.
If there's one thing most people can agree on when it comes to money, it's probably this: we don't like to pay taxes. If there's a permissible way to avoid a higher tax bill, common sense would tell us that it's wise to consider it.
A Roth IRA, for example, gives us the potential for tax-free distributions when done according to the tax laws. And any growth that may occur within a traditional IRA is tax deferred until distribution.
But what if you could get an up-front tax deduction, as well as tax deferral, AND tax-free distributions? On this week's episode of Managing Your Financial Future, our moderator Johnny Dean talks with "Professor" Rick Plum, CFP® about the triple-tax benefits of owning a Health Savings Account.
Required minimum distributions (RMDs) are just a fact of life for most owners of an IRA or retirement plan account. While RMDs are suspended for 2020, under normal circumstances, you typically must begin taking minimum withdrawals from those accounts (in most cases) at age 72.
Given these circumstances, if you're charitably inclined, you may be able to take advantage of a little-known strategy known as a Qualified Charitable Distribution from your IRA, and perhaps get some tax advantages that you otherwise would not have had.
How does it work, and who can potentially use it? Our "Professor" Rick Plum, CFP®, has the details for you as he speaks with our host and moderator Johnny Dean on this week's episode of Managing Your Financial Future!
IRAs, whether Traditional or Roth, have unique characteristics. Depending on the type of IRA you have, you may be able to manage your taxes or your income from your IRA by managing the taxes on the withdrawals.
Roth IRA distributions are tax-free when the rules for taking withdrawals are all met. So sometimes the tricky part is getting the money into the Roth IRA in the first place. Do you make a regular contribution to your Roth? Should you convert your Traditional to a Roth? When is it a good idea to do either of these, and when is it not?
Get your IRA strategy questions answered with "Professor" Rick Plum, CFP® as he speaks with host and moderator Johnny Dean on this week's episode of Managing Your Financial Future!
Taxes are a fact of life for most people. Even your Social Security benefits - for which you had the pleasure of paying taxes to receive - are subject to taxation under certain circumstances. And this can hit you unexpectedly, putting a sizable dent in your benefit income.
What to do about this? First thing is to recognize when and how your Social Security benefits may become taxable to you. This is where planning can play a key role, especially before you begin to take required minimum distributions at age 72.
On this week's episode of Managing Your Financial Future, host Johnny Dean and advisor Rick "The Professor" Plum, CFP® discuss the aspects of Social Security taxation, and what you may be able to do to potentially minimize what you owe. Tune in to find out more!
If there's one "rule of thumb" that every investor should know, it's that there is a distinct correlation between risk and reward. The greater the potential reward for an investment, the higher the risk. Conversely, lower-risk investments tend to produce lower rates of return.
This is something that many investors often forget -- especially those who are new to the game. If you pay attention only to a particular investment's prior performance without looking at the potential risks involved, you may be in for a really unpleasant surprise down the road.
Purchasing investments based solely on their rate of return is what's known as "chasing yield," and it's a mistake that can and should be avoided. Find out more from host Johnny Dean and our advisor, Rick "The Professor" Plum, CFP® on this week's episode of Managing Your Financial Future!
Life insurance appears to be a fairly easy topic to understand. You pay your premiums to the insurance company, and if you die within the specified period of time, your beneficiaries receive the death benefit proceeds of the policy. If you outlive the policy, no death benefit is paid.
But that’s just one element of life insurance. Another type is the often-misunderstood (and sometimes mis-sold) cash value policy -- and here’s where things can get complicated. And here’s where “Professor” Rick Plum, CFP® may be able to help you understand.
Cash value life insurance isn’t for everyone, but for some individuals, it may indeed be exactly what they need to reach their goals. Who should consider cash-value life insurance, and who should stay away? And how do these policies work? Find out on this week’s episode of Managing Your Financial Future!
Back in 1998, Congress created one of its most popular tax-incentives in recent history – the Roth IRA. Since then, we’ve seen various changes to Roths, including who may contribute, how much they may contribute, and who is allowed to convert pre-tax IRA money into the Roth world.
Because of its popularity, though, the Roth is sometimes improperly used by both investors and by those who give financial advice. While the tax-free withdrawals of a Roth are often attractive, those same tax benefits may also cause someone to put their money into a Roth when there are potentially better options for them.
So how does a Roth IRA work? Who should consider contributing, or maybe converting? And who should probably not? Get the details from “Professor” Rick Plum as he speaks with podcast moderator Johnny Dean on this week’s episode of Managing Your Financial Future.
If you happen to be one of those people with a traditional pension plan, there’s one important piece of information you should know about: unless your spouse elects to sign a waiver that allows otherwise, your pension benefits will be paid out to the both of you in the form of what’s called a “qualified joint and survivor annuity.” In other words, you’ll receive a reduced amount during your lifetime, so that your spouse will continue to get at least 50% of that amount if you happen to die first.
But if you both elect instead to receive the higher single-life annuity payment, the payments (while significantly higher) would stop at your death and not continue for the surviving spouse. This can be something of a dilemma for people who would want the higher payments, but are reluctant to lose that income if the pension owner doesn’t outlive the spouse.
There is a potential solution to this problem, though. Could you perhaps have both the larger payments AND provide an income for your surviving spouse? Listen in to the discussion with Johnny Dean and “Professor” Rick Plum, CFP® on this week’s edition of Managing Your Financial Future!
If you’ve ever read an article about finance or listened to a financial podcast (other than this one), you probably heard someone say that you should “never” buy a certain financial product. Or, conversely, you've heard that “everyone should buy XYZ financial product, no matter who they are!” These are both plainly wrong, on so many levels. The real truth is that everyone’s needs and goals are different; where one financial tool may work very well for a certain individual, it’s likely that exact same product is completely wrong for another person. That’s why it’s important to be financially knowledgeable about what someone is recommending you should have – or shouldn’t have – in your portfolio.Financial products are much like the tools you have in your garage: each has a specific purpose, something it was designed to do. What tools you should have will always depend on what your individual goals are. Find out more about this compelling metaphor on our latest episode of Managing Your Financial Future with Johnny Dean, And “Professor” Rick Plum, CFP®!
A few weeks back, we offered a strategy for people who want to pay off their mortgage in, say, 15 years, but don’t like the idea of making the higher principal payments that are required of a 15-year loan. Following up on that topic, we received an email asking about whether paying off the mortgage is really nothing more than a cash-flow issue. Is it? Or are there other things to consider?On this week’s episode of Managing Your Financial Future, hosts Johnny Dean and Rick “The Professor” Plum, CFP discuss the potential benefits of either paying off your home loan, OR perhaps keeping a mortgage on your house, if only a small one. Tune in to hear some things you might consider that may never have occurred to you before, as well as a neat trick to get funds onto a Roth IRA, even if you’re over the income limit!
Is it ever a good idea to mix stock market volatility with retirement? Maybe. It really depends on a number of different factors, not the least of which is your withdrawal strategy.But there are other forces at play here as well. Do you need to access the money in your portfolio to help fund your near-term liabilities? Or do you have enough income from other sources so that you may never need to dip into your savings to give you enough money to live on?In order to determine how much you should allocate to stocks in your portfolio, you'd need to consider several things all at once. Get the details on this week's episode of Managing Your Financial Future!See omnystudio.com/policies/listener for privacy information.
Retirement income calculators are everywhere online. What’s more, they’re fairly simple in nature: plug in some current income and savings, expected rate of return, an inflation factor, and eventually it’ll spit back a number that you should aim to have in your portfolio that’s supposed to give you the income you need. The trouble is - they’re often way off the mark.They may tell you that if you need, say, $100,000 of income to retire at age 65, then that number will rise to perhaps $230,000 or more by the time you’re age 95 because of the inflation factor. But from our experience, this just isn't practical in the real world. As retirement goes on, spending (and income needs) tend to go down over those years - not up.What this means is that you may not need to have as much socked away in your portfolio as those online calculators would suggest. Find out more about retirement spending, retirement income, and the potential value of financial advice with hosts Johnny Dean and “Professor” Rick Plum on this week’s edition of Managing Your Financial Future!See omnystudio.com/policies/listener for privacy information.
So maybe you retired at age 65, and maybe you set yourself up so that you don't have to think too much about your financial strategy, and then -- boom! You hit age 72, and you have to deal with required minimum distributions (RMDs) from your IRAs. The rules for taking required withdrawals have always been somewhat convoluted, but as of 2020, they've changed quite a bit; and if you inherit an IRA, they're even more complicated. Not only that, but if you miss all or part of your RMD when you were supposed to take one, the penalty is 50% of the missed amount!Knowing what to do and how to do it is important. On this week's episode of Managing Your Financial Future, you'll get the details from Johnny Dean and "Professor" Rick Plum on what's changed for 2020, what has not changed, and why it may be especially important to have guidance from a financial professional when dealing with inherited IRAs. See omnystudio.com/policies/listener for privacy information.
You may have heard that a "traditional" balanced portfolio consists of some kind of mix of stocks and bonds: 60/40, 50/50, or something similar. The logic is that having a combination of stocks and bonds in a balanced portfolio acts as a potential buffer against loss with the goal of providing an opportunity for steady growth.But as interest rates have remained near their historic lows over the past decade or so, some investors are finding that those low interest rates are bringing down their overall rate of return. As a result, some in the finance industry are suggesting that it may be a good idea to raise the stock allocation to make up for this.Is doing so a good idea? If not, then what should an investor do? What are the alternatives? Find out more from Johnny Dean and "Professor" Rick Plum on this week's episode of Managing Your Financial Future.See omnystudio.com/policies/listener for privacy information.
If you’ve ever looked at how much it costs to attend college, you're likely aware that it doesn’t come cheap. The costs are high, and they seem to go a lot higher every year. When you add up the tuition, fees, housing, along with other miscellaneous costs, even a “low-cost" local university can send you into years of financed debt. So what are your options?It’s hard to do anything about these expenses by themselves, which means that unless you receive some kind of scholarship, you’ll either have to pay them in full, or hope the school administrators give you a break. But there’s a little-known way that you may be able to recoup some of those costs, thanks to the federal government’s American Opportunity Tax Credit.You may not have heard of it, but it’s available to you if you qualify, and it just may allow you to get back some of that tuition you’re paying. Find out more details from hosts Johnny Dean and “Professor” Rick Plum, CFP on this week’s episode of Managing Your Financial Future.See omnystudio.com/policies/listener for privacy information.
We'll say it right up front: taxes are NOT fun. Nobody likes to think about them, much less actually do them every year. For most, it's a matter of either turning them over to a professional and letting them deal with it, or trudging through it alone and hope you don't miss anything important.But while they're not fun to think about, they're also a necessary evil. This is why it's really important to give your tax situation some thought during the actual tax year, when you may be able to do something about them, rather than waiting until it's too late. The middle of the year may be the perfect time to do some tax evaluation, because doing so could potentially save you some real money when it comes time to file next year. Hosts Johnny Dean and "Professor" Rick Plum, CFP® talk about ways you can manage your taxes right now, and discuss a certain internet claim about Social Security that needs some de-bunking -- all on this week's edition of Managing Your Financial Future!See omnystudio.com/policies/listener for privacy information.
The COVID-19 outbreak has brought with it several changes for people who are facing deadlines, including filing federal and state income taxes. Another big one has to do with Required Minimum Distributions (RMDs) for 2020 – and maybe for 2019 as well.When the SECURE Act passed at the end of 2019, it changed the age at which IRA owners must begin taking RMDs, from 70 ½ to age 72. Several weeks later, in response to the pandemic, Congress made changes again to the RMD rules through the CARES Act, allowing for more flexibility and the potential to skip the distribution for 2020.In the week’s episode of Managing Your Financial Future, hosts Johnny Dean and “Professor” Rick Plum, CFP explain the new rules of both RMDs and withdrawals from company-sponsored plans like a 401(k). Who can do what, where and when? Tune in, and get the latest!See omnystudio.com/policies/listener for privacy information.
When taking out a mortgage, people often wonder if it's better to have a 15-year loan instead of a 30-year loan. They think of all the interest payments they'll save by shortening the loan period, and the fact that the home would be owned free and clear in half the time.Of course, they have to be able to afford the higher payments of a 15-year loan, which for some people is a deal-breaker. But there may be a way for you to take the 30-year loan option and still be free of mortgage payments in 15 years. On today's podcast, we talk about a strategy to do exactly that.We'll also give you an explanation of the $1,200 stimulus check, dispelling common rumors that it will have to be paid back next year, and answer an email about paying cash for a home versus having a mortgage and investing the difference. Join hosts Johnny Dean and Rick "The Professor" Plum, CFP® for this week's edition of Managing Your Financial Future!See omnystudio.com/policies/listener for privacy information.
With everything that's been going on these days in the stock market, the economy -- the uncertainty of it all -- you might think that the confidence of those who are nearing retirement, or who are already retired, would be shaken more than a little bit. But that's not entirely true.The Employee Benefit Research Institute (EBRI) conducted their 30th annual Retirement confidence Survey back in January, and again at the end of March - two very different times. And they found that while overall confidence did go down somewhat, the decline was almost negligible. Why would that be?In this week's episode of Managing Your Financial Future, hosts Johnny Dean and Rick "The Professor" Plum, CFP® talk about reasons why those who have a strategy tend to be less irrational and less afraid of bad market and economic conditions. They also answer more of your emails, including one about using IRA money to purchase a home.See omnystudio.com/policies/listener for privacy information.
The standard, cookie-cutter portfolio often consists of just three main assets: stocks, bonds and cash. One may argue that this is not enough diversification, but that discussion aside, some investors seem to find themselves these days replacing some of their "riskier" stock portfolio with the relative safety of US Government bonds. But interest rates are at historic lows, and the reward for owning bonds is minimal, at best. Are people really satisfied with a 10-year rate of return that's currently paying less than 1 percent annually? Maybe: but there may also be some bond alternatives available to you that pay a bit more than that. What are these bond alternatives, and how do you know if their potentially right for you? Listen to this week's edition of Managing Your Financial Future with Rick "the Professor" Plum and Johnny Dean to learn about ways you may be able to squeeze a little more juice from the orange. Also: a few more of your emails are answered!See omnystudio.com/policies/listener for privacy information.
With everything we have going on in our lives right now, with all the new things we have to deal with, it's important to keep in mind that ordinary events still happen during extraordinary times. Births, deaths, marriages, divorces, family events -- things both in and out of your control -- continue. Part of the essence of financial planning has to do with making sure that both expected and unexpected events are properly dealt with. This should be the goal of every financial advisor -- to minimize the surprises that inevitably crop up during your lifetime. Yes, extraordinary events do happen, but if you're ready for them, if you've prepared to deal with them, then your advisor has done their job.On this week's edition of Managing Your Financial Future, host Johnny Dean and co-host Rick "The Professor" Plum talk about the importance of remembering to take care of the ordinary things, because life at some point will return to normal -- even if it's a "new" normal. They also answer a few more of your emails. Tune in to find out more!See omnystudio.com/policies/listener for privacy information.
Stock markets are volatile, people are hunkered down in their homes, and life as we know has been put on pause, at least for a while. In spite of that, though, all of the regular financial issues still exist, pandemic or not. And today we're answering those emails that have come in from you, our loyal listeners, over the past few weeks.The issues at hand: taking distributions from your IRAs even without RMD's, fleeing the stock market out of fear, and the up-front bonuses that insurance companies often offer to people who are considering buying annuities. Questions, answers, and commentary along the way in this week's edition of Lucia Capital Group's worldwide podcast, Managing Your Financial Future.See omnystudio.com/policies/listener for privacy information.
During normal times, it's easy to put our financial lives on autopilot. Our 401(k) contributions happen without us having to do anything, many of our bills are paid with auto pay, and once we're set up with the proper amount of life insurance, health insurance, and maybe long-term care insurance, we tend to resort to a "set-it-and-forget-it" mode. There are times, though, when we need to review what we have and make sure that it's all still aligned with our goals. And since our goals can change as life changes, it's likely that you need to make some adjustments to certain assets. This pandemic lockdown, which has given many of us more down-time than we ever have before, may be the best opportunity you've had in years to do just that. Of course, needing to do it, and actually doing it, are two different things. On this week's episode of Managing Your Financial Future, we talk about the tools available to you that can make getting your financial house in order a lot less stressful. We also answer some email questions that have come in over that past couple of weeks, reminding us all that there are normal financial issues that still crop up even during extraordinary times.See omnystudio.com/policies/listener for privacy information.
Between the CARES Act and the SECURE Act, both of which have been enacted, 2020 has turned out (so far) to be a year of change and uncertainty. The SECURE Act was passed in December of 2019, aiming to make retirement saving easier for individuals, increasing access to tax-advantaged accounts, and preventing older Americans from outliving their assets.Certain provisions of the SECURE Act have direct implications for people who are already retired and/or who have reached required minimum distribution age. By taking advantage of what the Act allows you to do, you may be able to save both time and taxes. You simply need to know what to do.On this week's Managing Your Financial Future podcast, host Johnny Dean talks with long-time Lucia Capital Group advisor Janean Stripe, CFP® about the important provisions of the SECURE Act that may have the biggest impact on you.See omnystudio.com/policies/listener for privacy information.
It's a fairly well-known and well-accepted fact within the investment world that market timing - attempting to get in or out of equities on the highs or lows - doesn't work. Most investing novices (and even veterans) who trade on daily trends will lose money, and some will lose all of their money. The stock market is simply too unpredictable.But that doesn't mean that when market conditions change you can't or shouldn't make some adjustments. You can still stick with your long-term goals while making certain short-term changes when big events take place (like the end of a bull market). In fact, that may be advisable in certain circumstances.What kind of an adjustment should you make, if it's indeed warranted by your individual situation? On this week's episode of Managing Your Financial Future, our "Professor" Rick Plum and host Johnny Dean explore the notion of how a bear market may change your investing style, and why having a strategy is crucial for someone who may have just retired in early 2020.See omnystudio.com/policies/listener for privacy information.
One of the most potentially useful tools a financial planner has is the ability to create some form of lifetime income for those who need it. In much the same way that a company could provide a pension to its employees, so may an advisor offer “pensionized” income as a way to provide guaranteed lifetime income to someone who might otherwise have none. This week’s episode of Managing Your Financial Future features one of our favorite guests, Chris Lloyd, CFP, who has some useful insight into how lifetime income works, and how to tell if it may be right for you. See omnystudio.com/policies/listener for privacy information.
So maybe you looked at your 401(k) balance as recently as mid-February, and then decided you'd finally enough saved up to retire. You put your notice in at work, everyone wished you well, and then...And then. From bull market to bear market in a flash, without warning. What have you done? Can you really afford to retire now? Good question.In this week's podcast, Johnny Dean and Professor Rick Plum talk about the importance of having a strategy, and how defending your portfolio against the inevitable volatility and market downturns well ahead of time can potentially make a huge difference between retiring when you want to, and having to postpone your retirement indefinitely. See omnystudio.com/policies/listener for privacy information.
So the long bull market finally came to an end. The drop in equity values was quick, sudden, but not unexpected. The markets simply did what they've always done, and while we never knew the exact date it would happen, we knew it was inevitable. And because we know it's inevitable but cannot predict when it will happen, we have a strategy that anticipates this kind of volatility and aims to have you prepared to weather the storm. So while no strategy is infallible, it's always a good idea to have a plan, a road map, for what you should do when you're faced with a down market.On this week's episode of Managing Your Financial Future, Johnny Dean and "Professor" Rick Plum talk about the importance of being prepared, and how just a little bit of strategizing may go a long way.See omnystudio.com/policies/listener for privacy information.
Many people who aren't old enough to receive their benefits yet don't give much thought to Social Security. They figure it will be there for them in some form or another when they retire, but as to when they should begin taking it, well, that's not something they keep on their mental front-burner. It's often not until they approach or reach retirement that they give it any serious consideration.But when you should take your benefits, and which benefits you should take, is an important decision. The trouble is that you're presented with a confusing array of choices, and there's no shortage of conflicting advice that tells you to always do this, or never do that. No wonder people don't like to think about it.On this week's episode of Managing Your Financial Future, we try to take some of that worry and confusion out of the picture. Even if you're not yet taking your benefits, it's a good idea to know the basics so that you're prepared when your decision time finally arrives.See omnystudio.com/policies/listener for privacy information.
When it comes to finance, conflicting advice is everywhere. This is especially true when people have questions about when they should start taking money from their traditional IRAs: Should I start early, or wait until I'm required to take the money out? Is my withdrawal going to be taxed? Does an IRA withdrawal affect my Social Security, or change the cost of Medicare Part B and D? Very few of these (and other) questions are ever answered with any consistency online.Yet they're important issues. How are you supposed to make an informed decision if the advice you're getting from one source is telling you to do the opposite of what someone else told you to do? Knowledge is power. Listen to this week's episode of Managing Your Financial Future and we'll help to sort it all out for you.See omnystudio.com/policies/listener for privacy information.
The current bull market is 11 years old as of March, 2020. This seems to have given more than a few investors the mistaken idea that stocks will continue to climb forever. Whenever markets are flying high, or (on the other side) when they’re sinking into oblivion, people tend to overreact and do something that they later on wished they hadn’t - often times, something irreversible. If you’re about to make a risky money move, either out of fear or jubilation, there are three questions you should ask yourself first; three questions that every investor who's thinking of straying from their long-term plan should consider. What are those questions? Find out on this week's episode of Managing Your Financial Future.See omnystudio.com/policies/listener for privacy information.
The SECURE Act, passed by Congress at the end of 2019 and effective on January 1, 2020, provides several reforms to 401(k) accounts, IRAs, college savings accounts, and more. A couple of long-standing rules, including the age at which most people must begin taking their required minimum distributions, were amended. These changes created both opportunities and obstacles for people who are making plans for retirement, as well as for those with legacy plans for heirs.What do you need to know? What important changes were made that could directly affect you, your spouse, and your ultimate heirs? Find out on this week's episode of Managing Your Financial Future.See omnystudio.com/policies/listener for privacy information.
A few episodes back, we talked about the benefits of charitable giving for both the recipient of the gift and the giver. The one who receives the gift gets the benefit of the gift itself. The one who gives the gift may be entitled to (among other things) a tax benefit for their generosity. Some people, though, for a variety of reasons, aren't able to deduct what they give to charity -- at least not directly. How can someone who doesn't qualify for a charitable tax deduction potentially receive a "de facto" deduction for their donations anyway? And how can this strategy potentially limit other taxes they may have otherwise paid?Find out on this week's episode of Managing Your Financial Future.See omnystudio.com/policies/listener for privacy information.
Fear does strange things to people. It can motivate us to take immediate action when a threat is imminent, or it can cause us to retreat, cover up the issue, and hope it will go away. Retirees have many financial concerns. But their biggest one -- the one that can be connected to all of the others -- is running out of money. This fear often causes them to either be frugal to a point beyond reason, or to ignore their finances completely and just pray it all works out.Neither option is ideal. What if we told you that just by using a few simple planning techniques, you may be able to lose those fears for good? You may have a lot less to fear in retirement. Find out more on this week's episode of Managing Your Financial Future.See omnystudio.com/policies/listener for privacy information.
Most people at some time or another want to be charitable. Part of human nature tells us we should give to those in need -- that we have a kind of social obligation to allow others to have something that they could otherwise only dream of. This is why being charitable often gives us a nice, warm feeling.That's the emotional side of giving. On the practical side, there can be financial rewards and incentives that go along with it too; tax breaks, in particular. But who gets those tax breaks? Can anyone who donates money write off that donation? There's a gift tax - but who, if anyone, pays it? Are there ways to give later but get the tax breaks now?All good questions. Get the answers on this week's episode of Managing Your Financial Future.See omnystudio.com/policies/listener for privacy information.
Many people know that long-term care costs are expensive. In spite of that, they're often reluctant to buy an insurance policy to cover those costs because they don't want to pay for something that they may never need to use. After all, not everyone ends up in a nursing home or care facility.But what if you could both insure against those costs AND retain ownership of your premiums so that you or your heirs can have that money if you never need long-term care? Is that even possible? Yes. Rick "The Professor" Plum, CFP®, and Johnny Dean, along with Ray Lucia Jr. and Joe Lucia, talk about how "Linked Benefit" plans may be the wave of the future on this week's episode of Managing Your Financial Future.See omnystudio.com/policies/listener for privacy information.
Did you know that the location of your assets - 401(k), IRA, personal account, Roth - is a big determinant of your ultimate tax bill? By simply locating your assets in the proper account(s), you may be able to drastically reduce your tax bill. Find out how with Rick "The Professor" Plum, CFP®, and Johnny Dean, along with Ray Lucia Jr. and Joe Lucia, on this week's episode of Managing Your Financial Future.See omnystudio.com/policies/listener for privacy information.
You may have heard or read that Americans aren't saving enough for their retirement years. If so, there's a good chance that the phrase "retirement crisis" was part of the story. It's easy to scare people into reading an article online, but while everyone could probably stand to save more then they are, is there really a retirement crisis in America? Maybe not.Rick "The Professor" Plum, CFP®, and Johnny Dean, along with Ray Lucia Jr. and Joe Lucia, talk about this issue and why the doomsday headlines could very well be wrong, on this week's episode of Managing Your Financial Future.See omnystudio.com/policies/listener for privacy information.
You work hard for your money. You save, you plan, you make contingent plans, you save some more, and yet you can never really be sure that your savings will last as long as you do. Your portfolio faces a number of different risks, and not all of them happen after you retire. We've narrowed those risks down to the three most basic - the three you really need to plan for.Find out what those risks are, and how you may be able to avoid them through proper planning, on today's Managing Your Financial Future podcast featuring Rick "The Professor" Plum, CFP®, and Johnny Dean, along with Ray Lucia Jr. and Joe Lucia.See omnystudio.com/policies/listener for privacy information.
Social Security has provisions for a survivor benefit, which allows a surviving spouse to continue receiving their deceased spouse's Social Security benefits. It was put in place in 1940 to ensure that widows would not suffer a cut in benefits. Ironically, in today's world, those same survivor benefit rules may cause just that - a actual cut in pay to the survivor. How is that possible?Find out. Join show hosts Rick "The Professor" Plum, CFP®, and Johnny Dean, along with Ray Lucia Jr. and Joe Lucia, for the inaugural episode of Managing Your Financial Future. See omnystudio.com/policies/listener for privacy information.