Cover Your Assets KC Podcast: Recent Episodes
David Dickens
Bite-sized financial and retirement planning guidance from David Dickens in Kansas City. Dave Dickens is the President of KC Financial Advisors and is a Chartered Financial Analyst (CFA). He has more than 35 years of experience in the investment business.
This Father’s Day, give your family something that lasts: financial confidence. In this special episode, David outlines three essential financial steps every dad should prioritize, whether you’re chasing toddlers or preparing for retirement. From building a strong financial base to adjusting your budget as life changes, these timeless moves can help set your family up for long-term independence.
Here’s some of what we discuss in this episode:
📊 The budgeting mistake retirees often make
📉 The one type of insurance dads often overlook
🧾 Living wills and beneficiary tips
🍼 How young dads can avoid future debt traps
🏠 The estate planning steps some dads forget
Check out the Bankrate Insurance Calculator: https://www.bankrate.com/insurance/life-insurance/life-insurance-calculator/
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Health Savings Accounts (HSAs) might just be the most powerful and overlooked tool in your financial toolbox. Today, David is breaking down six key things everyone should know about HSAs, from eligibility and contributions to how they can grow over time and work across job changes.
Here’s some of what we discuss in this episode:
🩺 Who qualifies and who doesn’t
💰 Maximize annual contributions the smart way
📈 Using an HAS as an investment
🧳 What happens if you change jobs
💳 Tax-free withdrawals for medical expenses
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Retirement planning can feel like a whirlwind, flooded with choices, tight timelines, and the pressure to “get it right.” In this special mailbag episode, David answers real questions from listeners who are navigating this very moment. One is preparing to retire and feeling overwhelmed; the other is already retired and sorting through the complexities of Roth conversions.
Here’s some of what we discuss in this episode:
📬 Structuring reliable retirement income from Social Security, pensions, and withdrawals
📆 Why it’s crucial to have a retirement plan before you stop working
🚫 The IRS’s 5-year rule for Roth conversions
💡 The importance of budgeting in retirement
Please remember that converting an employer plan account to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences including (but not limited to) a need for additional tax withholding or estimated tax payments, the loss of certain tax deductions and credits, and higher taxes on Social Security benefits and higher Medicare premiums. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA.
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Taxes don’t stop when your paycheck does, and they certainly don’t skip your heirs. In this episode, David tackles two common listener questions that reveal just how much tax strategy plays into smart retirement and estate planning. If you’ve been worried about how much your kids will owe in inheritance taxes or if you’re sitting on a pile of tax-deferred savings, David offers practical tips on ways to help you avoid getting a surprise tax bill.
Here’s some of what we discuss in this episode:
🧾 Estate taxes: Do you need to worry?
💡 When a life insurance policy may be a smart estate tool
🏦 Roth conversions before RMDs—smart or not?
👀 Why your $1M IRA isn’t fully yours
📉 Gifting strategies to help reduce your taxable estate now
Please remember that converting an employer plan account to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences including (but not limited to) a need for additional tax withholding or estimated tax payments, the loss of certain tax deductions and credits, and higher taxes on Social Security benefits and higher Medicare premiums. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA.
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
The headlines are loud, the markets are messy, and your gut might be telling you to do something — anything — right now. But what should you actually do when your portfolio takes a hit?
Instead of guessing what’s next or obsessing over breaking news, David walks you through four critical questions every investor should ask during turbulent times. From re-evaluating your plan and risk tolerance to exploring rebalancing and tax-loss harvesting opportunities, this episode gives you practical ways to stay grounded and focused. Don’t miss this important conversation as David covers what to do and not do in an unpredictable market.
Here’s some of what we discuss in this episode:
📉 Why now is the time for a gut-check, not a panic move
⚖️ How to re-align your risk tolerance with reality
🔁 Smart moves: rebalancing and tax-loss harvesting
📺 What unhelpful behaviors to avoid
🧠 Why the best strategy might be to do nothing
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
We’re back with another mailbag episode! In this week’s edition, we’re tackling 3 great questions from listeners like you. These episodes are some of David's favorites, as they provide a chance to dive deep into key topics and explore the finer details.
Ted is curious about how to manage the wealth he'll leave behind for his children. Roger is wondering if setting up a trust is the best way to help minimize the tax burden on his kids when they inherit his accounts. There are valuable lessons for everyone in this conversation, so don’t miss out on what you can learn today!
Here are the questions we tackle in today’s show:
❓ “How can I determine how much money I can leave behind for my kids without compromising my retirement?”
❓ "My job might have layoffs with a severance package equal to a year's salary. Am I foolish for hoping to get laid off?"
❓“Should I set up a trust to help my kids save money on taxes when they inherit my investment accounts?”
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Each year, David gets a lot of questions from his clients about required minimum distributions. Some are just beginning to take them, while others have been withdrawing for years but still have specific concerns. In this episode, he breaks down the 7 key things you need to know about RMDs.
We’ll start with the basics, like what they are, when you need to start taking them, and which retirement accounts are affected. Then, we’ll dive into some of the trickier aspects, like how to calculate your RMD, what happens if you don’t take it on time, and more.
The goal of this episode is for you to walk away learning at least a few things you didn’t know before. So, tune into this informative discussion today to see what you can learn!
Here are the questions we discuss in this episode:
1️⃣ What is an RMD and when do I start taking them?
2️⃣ When should I start thinking about them?
3️⃣ How do I know which retirement accounts are included?
4️⃣ I have a bunch of retirement accounts. Do I take an RMD from each one?
5️⃣ What happens if I just say “no?”
6️⃣ But I don’t need all of that money. Can I escape somehow?
7️⃣ How exactly do I calculate my RMD?
Check out the survey here: https://www.fa-mag.com/news/retirement-planning-survey-2024-80450.html
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Ever wonder what other people talk about with their financial advisors? A new survey of nearly 400 experienced advisors reveals the biggest concerns and challenges, their clients are facing today. Today we’re breaking down the four biggest concerns clients have about retirement and how to overcome them.
Here’s some of what we discuss in this episode:
📉 Outliving Your Assets – Why a written plan is crucial for financial security.
💰 Generating Reliable Income – How to create a paycheck-like cash flow in retirement.
📉 Market Crash Protection – Strategies to safeguard your investments.
🏥 Healthcare Costs – The reality of long-term care expenses and how to prepare.
Check out the survey here: https://www.fa-mag.com/news/retirement-planning-survey-2024-80450.html
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Today we are covering two different listener questions. James is asking about starting Social Security at 62. You might be amazed how many times I get that question in my office. And then Barry wants to talk through life insurance, seems to think he has a lot of it and wants to know whether he should cancel some of it. These are two core areas of planning so let’s talk through how they should come to a decision.
Here’s some of what we discuss in this episode:
- We’ll take you through the process for how we determine Social Security claiming strategies.
- Why it might not be the best idea for this person to take Social Security at 62 to pay off their mortgage.
- The questions you want to answer before getting rid of a life insurance policy.
- The different insurance products that you might look into.
Check out the life insurance calculator: https://www.bankrate.com/insurance/life-insurance/life-insurance-calculator/
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Well, the Kansas City Chiefs are going to the Super Bowl again. Their coach Andy Reid probably won’t be retiring anytime soon, but let’s still see what we can learn about retirement planning from these quotes from the Chiefs coach.
Here are the quotes we discuss in this episode:
“Every play is an opportunity. Make every snap count.”
“We don’t focus on the scoreboard; we focus on the next play.”
“Adjustments are not a sign of weakness; they are a sign of strategy.”
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Today’s show is a little different than normal. Instead of diving into one topic, we’re going to tackle two separate planning items thanks to a couple questions from Bobby and Roy. Both questions involve important decisions that will impact retirement so let’s jump in.
Here’s some of what we discuss in this episode:
- The different ages that matter for Social Security benefits and what you need to know.
- The reasons why he might want to wait to claim.
- Why your ‘underperfomance’ might just be good diversification.
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414
We’ve all seen stats about how much the average American has saved for retirement. But let’s be honest- being “average” when it comes to retirement savings isn’t likely to provide the lifestyle you want in your golden years. Instead, David will share some practical benchmarks you can use to measure your progress. He’ll also share some actionable steps to set yourself up for long-term success!
Here’s some of what we discuss in this episode:
- Benchmarks for retirement savings based on age and income
- Where this money should be held
- The importance of starting early
- A great time to start is right now!
New Years Resolutions Episodes
https://coveryourassetskcpodcast.podbean.com/e/episode-155-2022-financial-resolutions-part-1/
https://coveryourassetskcpodcast.podbean.com/e/financial-resolutions-part-2/
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Join David for part two of our series on 2024 stocking stuffers for financial freedom. In this episode, we explore five actionable financial tips to help you wrap up the year and prepare for a prosperous 2025. From managing debt effectively to considering Roth conversions and utilizing Qualified Charitable Distributions, this episode will give you some areas to focus on.
Here’s some of what we discuss in this episode:
- The number of people that carry credit card debt is pretty shocking.
- Consider Roth conversions to help reduce taxes in the future.
- QCDs are a fantastic way to not pay taxes on money that is otherwise definitely going to come out of your IRA.
- Why you need to be reviewing your plan annually.
- Don’t forget your Roth contributions!
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
The holiday season is here, and while you’re stuffing stockings for your loved ones, don’t forget to stuff your own financial stocking with tips that can bring you closer to a secure retirement. Today, we’re unwrapping 10 bite-sized, actionable ideas to help you save smarter, invest better, and plan for the future you deserve.
From maximizing your retirement contributions to revisiting your estate plan, learn how to make the most of your financial situation as we approach 2025. We have plenty of stocking stuffer ideas so stay tuned for part two of the discussion next episode.
Here’s some of what we discuss in this episode:
- Have you maxed out your retirement contributions for 2024?
- The benefits of consolidating old retirement accounts and the best way to it.
- Two clients stories about estate planning.
- Why would you want to harvest losses for your next tax return?
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
The election is finally behind us and it’s hard to believe that we didn’t have a long, drawn-out process to determine the winner. Now that Trump is returning to the White House, it’s time to start looking at what policies his administration is considering and what those decisions could mean for your portfolio.
Here’s some of what we discuss in this episode:
- Could the proposed tariffs be inflationary for the US economy?
- What does David think will happen with the tax cuts set to expire at the end of 2025?
- Is less regulation a good thing?
- How quickly will changes start to take effect?
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Building a nest egg or inheriting one can involve a lot of moving parts. You want to be strategic and make wise decisions to prepare you for the future and protect your assets against the possibility of a market crash. In today’s podcast, David answers three questions from the mailbag, all facing different financial situations.
Here’s some of what we discuss in this episode:
- Mailbag: When to stop contributing to a 401(k) and pay off debt instead.
- Mailbag: How worried should I be about a market crash?
- Mailbag: How does a trust work?
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
As we approach the end of the year, it's crucial to ensure your financial health is in top shape. In today’s podcast, David provides an essential checklist to help you optimize your financial strategy. Whether you're a retiree or still in the workforce, these practical tips will guide you towards a prosperous 2025.
Here’s some of what we discuss in this episode:
- Fully funding your retirement accounts.
- Remember to make a Roth IRA contribution with money earned, even as retirees.
- Rebalance before year end.
- Consider a taxable brokerage account for things you can sell at a tax loss.
- If you have an FSA, use it or lose it!
Resources for this episode:
https://www.coveryourassetskc.com/episode-177-making-investment-losses-work-for-you
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Following the news of the rate cuts last week with the Fed, you may be wondering what that means. Is that a good thing? How could it impact your daily life? David breaks down what it means now and what has happened after rate cuts in the past. Based on that, he shares some financial possibilities for the near future and what the market outlook is.
For investors, this short and sweet podcast packs a lot of valuable info in. Before you make any bold moves, David suggests a cautious approach as we wait and see what these rate cuts do to our economy.
Here’s some of what we discuss in this episode:
- The Federal Reserve announced that they were cutting the Overnight Fed Funds Rate by half a percent.
- Is the Fed rate cut a good thing or a bad thing?
- What does the history or Fed rate cuts tell us?
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
What’s the key takeaway in all this for investors?
Whether you're facing a layoff, planning a financial gift for a new grandchild, or dealing with an inheritance, today’s podcast offers valuable insights and actionable advice. Beyond helping you save for retirement, as a financial advisor, David answers countless financial questions that come up over the course of his clients’ lives. Find out what he has to say when answering three questions from the mailbag!
Here’s some of what we discuss in this episode:
- Mailbag: How to handle unexpected layoff?
- Mailbag: How to financially set up new grandchild?
- Mailbag: What taxes to plan for with inheritance?
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
As we grow older (and wiser), it's natural to reflect on the decisions we've made and consider what we could have done differently in the past. In today’s episode, we delve into the top five retirement regrets of people in their seventies, inspired by a recent YouTube video created by someone else in their 70s. David shares his insight and advice for anyone in their fifties or sixties looking to avoid these common financial pitfalls.
Here’s some of what we discuss in this episode:
- People wish they had retired earlier.
- Some wish they had spent more when they first retired.
- Retirees wish they took better care of their health.
- People wish they had taken up a hobby.
- Many wish they had traveled more.
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
When it comes to planning for retirement, many people turn to target-date maturity funds for their set-it-and-forget-it appeal. In fact, if you have a 401k or an IRA rollover, chances are you have a target-date maturity fund. These are designed to automatically adjust your investment mix as you approach retirement, gradually shifting from a higher allocation of stocks to a more conservative mix of bonds and cash. This sounds ideal, but is it?
In this episode, David and Walter discuss an interesting article by The Washington Post that questions whether these funds truly deliver on their promises.
Here’s some of what we discuss in this episode:
- The popularity of target-date funds and how they work
- The performance of target-date funds over recent years
- What the 2025 portfolio looks like today
- The differences between Vanguard, Schwab, and Fidelity funds
- Understanding the drawbacks of these funds
The Washington Post Article:
https://www.washingtonpost.com/business/2024/07/23/target-date-funds-retirement-savers-explainer/
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
When it comes to your investments, there are a lot of avenues you can take. How can you know you’re taking the best one for you? David answers three questions from listeners who are asking about accounting for taxes in retirement, putting money in a 401(k) or elsewhere, and managing an inherited IRA.
Here’s some of what we discuss in this episode:
- Roth IRAs and preparing for rising taxes.
- How much to contribute to a 401(k) and when to pivot.
- Managing inherited IRAs.
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Procrastination is a common temptation, but when it comes to your finances, it can have serious consequences. Whether you're in your twenties, thirties, or already nearing retirement, it's never too early or too late to start planning. By addressing these key areas and avoiding procrastination, you can secure a more stable and enjoyable financial future.
Here’s some of what we discuss in this episode:
- The dangers of financial procrastination.
- Deferring taxes could be costly in the future.
- Eliminating debt is like eliminating rust on your car.
- Setting up legal and estate documents protects your family.
- Delaying Social Security is a personal decision.
- Having a plan allows you to enjoy and understand your financial life.
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
When your heirs inherit a Roth IRA, they are not required to take distributions, which allows the account to continue growing tax-free for up to ten years. This flexibility can be a significant financial boon, especially if your heirs are in their prime earning years and want to defer withdrawals until they are in a lower tax bracket. The question is, should you do a Roth conversion now?
Here’s some of what we discuss in this episode:
- Is inheriting a Roth IRA a real positive?
- What are the primary investment asset types to inherit?
- Should older parents do Roth conversions to benefit their children’s inheritance?
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
If you’ve listened to David for long, you’ve heard his affinity for the Roth, but does that apply to everyone? When it comes to planning for retirement, high earners need to decide whether to contribute to a Roth account or a traditional IRA. But first, who is considered a high earner? And why does a Roth matter?
Here’s some of what we discuss in this episode:
- The two ways to get money into a Roth.
- How taxes make a big difference on the decision.
- Why a Roth conversion can be a solid strategy.
- Who this advice most commonly applies to.
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
When planning for retirement, most people focus on the rate of return their investments will yield. However, there's an often overlooked risk that can significantly impact your financial future: the sequence of returns. In this podcast episode, David explains why the order in which you earn returns can arguably be more important than the rate itself.
Here’s some of what we discuss in this episode:
- What is sequence of return risk, and why is it important in financial planning?
- How does the order of investment returns impact retirement outcomes?
- What are some strategies to mitigate sequence of return risk?
Download the Sequence of Returns PDF HERE!
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
The choices we make with our money often come down to more than mere numbers. David answers three questions from listeners who are facing different situations in life and looking for what to do next. From wanting to retire ASAP to coming into a financial windfall, it’s important to have a strategy in place to make sure the money works toward your goals.
Here’s some of what we discuss in this episode:
- Mailbag: Can I retire right now?
- Mailbag: Should I rollover my 401(k)?
- Mailbag: What should I do with settlement money?
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Are you ready for a retirement income literacy quiz? David recently took the quiz himself to see how he did and puts Walter on the spot for a few of the questions. After you listen and take the quiz yourself, you can identify what you do know and what you don’t!
Here’s some of what we discuss in this episode:
- How much a negative single year return in your retirement portfolio impacts.
- How to improve your retirement security.
- The best strategy with Social Security benefits.
- The average life expectancy for Americans.
- Leveraging life insurance.
- Working part-time in retirement.
Income Literacy Quiz:
https://theamericancollege.qualtrics.com/jfe/form/SV_5u6YaBWQWFjxkY6
Life Insurance Episodes:
https://www.coveryourassetskc.com/episode-186-life-insurance-after-65-three-good-reasons
https://www.coveryourassetskc.com/episode-128-how-to-find-and-buy-term-life-insurance
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
How much should you really be saving or already have tucked away toward retirement? As a follow-up to our three-part series where we focused on the retirement questions of every generation, David gets down to percentages and dollar amounts you’ll need to answer this common question.
Here’s some of what we discuss in this episode:
- If we’re living longer, do I need to save more?
- How much of my current income do I need to replace with my retirement savings?
- How much should I already have saved?
- What percentage of my income should I be saving?
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
For those in their mid-twenties to mid-forties, this episode is for you! In this final part of our three-part series, we look at the financial questions that millennials are asking. With plenty of working years ahead, the financial advice for millennials is very different than for retirees. From paying off student loans to saving toward retirement goals, David shares some ideas you might want to consider in the years ahead.
Here’s some of what we discuss in this episode:
- Should I prioritize paying off my student loans?
- How do you plan for the potential costs of having and raising children?
- Will Social Security matter later on?
- How can I take advantage of employer-sponsored retirement plans?
- Are there alternatives we should consider?
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
If you are between the ages of about 44 to 59 years old, you might be asking retirement questions about whether you have saved enough to retire or even if you can retire early. In part two of our three-part series, today we get into some really good information for Gen X as they begin to really buckle down and think about what retirement might look like and how to successfully prepare. Whether you are trying to catch up on saving or looking to leverage your investments, David has plenty of wisdom to share.
Here’s some of what we discuss in this episode:
- Have I saved enough?
- How do I know if I’m on track?
- How can I catch up if I started saving too late?
- How can I balance saving for retirement among other priorities?
- How can I maximize investment returns without excessive risk?
- What should I do with my 401(k) from a previous employer?
- Should I pay off my mortgage before retiring?
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
What financial questions are every generation asking? Over the course of this three-part series, there will be something for everyone! Every generation has a different set of scenarios and priorities they are facing.
Today, we’ll focus on six common financial questions Baby Boomers are asking (and then in future episodes we’ll dive into the questions Gen X and Millennials are facing). These are generic questions that David hears every day in his office, but remember that broad advice doesn’t always apply to your unique situation. Be sure to reach out to a financial advisor to find out the answers to these questions are for you.
Here’s some of what we discuss in this episode:
- How much market volatility should I have as I approach retirement?
- What’s the best approach to transition to retirement account withdrawals?
- How does the rising costs of healthcare fit into a plan?
- What’s the best way to pass on wealth to my heirs?
- How can I maximize my Social Security benefits?
- Should I downsize or relocate during retirement?
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
As we wrap up the month of February with a few 60-degree days (not to mention a Super Bowl win!) we take the mailbag as David answers some listener questions. To start, Jason is wondering how to best handle his 401(k) after retiring. Then Megan wants to know the best way her dad can wisely gift money to avoid estate tax. David explains what the state tax exemption is and who to talk to in order to get the right answers on how best to proceed. Finally, we discuss the capital gains implications of Megan’s dad signing over his house.
Here’s some of what we discuss in this episode:
- Mailbag: It’s cumbersome to withdraw from my 401(k). How can I manage it better?
- Mailbag: Should my elderly dad start gifting money now to avoid estate tax after he passes?
- Mailbag: Should my parent sign over his house to beneficiaries?
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Following the Super Bowl, we can’t help but bask in the glow of the Chiefs’ victory. David shares four financial insights and comparisons to Sunday’s game. For instance, Travis Kelce was shut down in the first half but had 8 catches and 92 yards in the second half. How does that relate to your financial plan?
Here’s some of what we discuss in this episode:
- Have a good plan and be open to mid-course corrections.
- Have discipline and do the little things well.
- Adversity will come your way, it’s really how you deal with it.
- You don’t have to reinvent the wheel.
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Diving into the mailbag, David answers three questions about Social Security, 401(k) savings, and bad debt. Whether you are full retirement age, like Jacob who asks when to begin taking Social Security, or you are in your working years like Anna who is saving away in her 401(k), you’re sure to learn something from today’s show.
Here’s some of what we discuss in this episode:
- Mailbag: I’ve reached full retirement age but don’t plan to retire anytime soon. When should I take my Social Security?
- Mailbag: I’m loving the growth in my 401(k), but how long can it really last and when should I walk away?
- Mailbag: Should I sell my rental property to pay off all my debt?
4 Simple Strategies to Increase Your Net Worth (Ep 65): https://www.podbean.com/ew/pb-z44z9-d4dade
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Life insurance isn’t a fun topic to talk about, but it’s an important one. We talk through three reasons you should use life insurance and how to have a life insurance strategy in place--as soon as this week. Remember, with life insurance, you’re trying to protect against an unforeseen financial event.
Here’s some of what we discuss in this episode:
- The income replacement of a breadwinner.
- The rising cost of long-term healthcare.
- Transferring wealth in the future to your heirs.
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
For our first podcast of the new year, we are covering five things you can take care of this month to get your year off on the right track. Whether you have big financial plans for the year or simple financial tweaks, each of these five things are important and doable in January.
Here’s some of what we discuss in this episode:
- Calculating your financial net worth.
- Getting the 401k company match.
- Building an emergency savings account.
- Avoiding debt.
- Putting your savings system on autopilot.
How to calculate your net worth statement podcast:
https://www.coveryourassetskc.com/episode-107-2021-financial-resolutions-part-2
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Because David loves listener questions so much, we wanted to end the year with a few more! For starters, Amy says she has never been in a hurry to pay off debt, never paid extra on her mortgage, uses a HELOC, doesn’t pay cash for cars, and doesn’t see a problem with it. Using debt has allowed her to use money for other things, including saving for retirement. Is that okay?
Here are the questions we discuss in this episode:
- Mailbag: I’m not in a hurry to pay off debt, is that bad?
- Mailbag: Due to a medical diagnosis, should I start Social Security right away?
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Today, we do one of the things David does best—answer financial questions! No matter where you are in your financial journey, at least one of these listener questions may relate to your life. From end-of-year charitable donations and how they may (or may not) impact your taxes to deciding what to do with a raise, David shares what you need to keep in mind.
Here’s some of what we discuss in this episode:
- Mailbag: Do charitable contributions still benefit me from a tax standpoint?
- Mailbag: What should I do with money from my raise- retirement savings or pay down my mortgage?
- Mailbag: Will I have to work forever if I don’t have a million dollars saved?
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
If you have a pension, you have some choices to sort through when it comes time to use it. Should you take a monthly payment or a lump sum? It’s a big decision to make and not one to take lightly. While we’ve covered this topic in the past, a lot of things have changed between inflation and interest rates. We discuss six key factors to consider. Each of these factors should play a part in your decision to determine what’s best for you.
Here’s some of what we discuss in this episode:
- What’s happening with the interest rates?
- Are you prepared for future inflation?
- How will it impact your taxes?
- How is your health?
- How financially secure is your employer?
- Do you want an income stream or asset that can be transferred?
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Following the meeting with a client, we dive into what happens when someone inherits an IRA. The rules about inherited IRAs have changed a lot in the last few years and mistakes can be costly. Listen in as we review what changed since the SECURE Act was implemented. We'll also discuss some examples of how it can look to inherit an IRA, both for a spouse or a non-spouse beneficiary.
Here’s some of what we discuss in this episode:
- The SECURE Act changed the rules.
- There are two main categories of people who might inherit an IRA.
- What you can do without the stretch IRA.
- What are the exceptions to the rules?
- David shares an example of how this can look.
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
When you go to sell your home, there’s a lot to keep in mind! After a few questions from clients, David sets the record straight on today’s podcast about what to expect regarding taxes when selling your house. Whether you are in retirement or in your 30s, you’ll want to use this as a starting point before you go to sell.
Here’s some of what we discuss in this episode:
- After the ownership and use test, how much of the gain can you exclude from tax?
- Do home improvements reduce the taxable gain?
- How is it different if you inherit a home and then sell it?
- What are the rules after one spouse dies?
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
David does one of the things he loves to do best—helping listeners! We dive into the mailbag today to hear questions from people in all sorts of different points in their financial lives. We hear from a retiree ready to downsize, a younger listener trying to max out savings, and someone about to retire but shocked by required minimum distributions. Do you relate to any of these situations?
Here are the questions David answers today:
- Mailbag: Planning to downsize our house. Should we pay cash to avoid the high interest rates with a mortgage?
- Mailbag: I maxed out my 401(k), where else can I save?
- Mailbag: Can they really make me withdraw that much in RMDs?
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Although everyone is unique and has their own journey, today we talk through a list of five “universal truths” when it comes to retirement. David weighs in regarding how true each of these things may be for everyone. From needing an income plan in retirement to under-standing the statistical likelihood of one day needing long-term care, are you prepared? Planning ahead can be of great importance, especially on behalf of your beneficiaries, saving everyone from a lot of heartache and confusion down the line.
Regardless of your age, all of these are things to think through, whether they impact you a little or a lot. Everybody needs to do something. It doesn’t have to be complicated or expensive, but you need to have several key building blocks in place.
Here’s what we talk about on today’s show:
• Everybody needs an income plan.
• Everybody needs a plan to address long-term care issues.
• Nobody knows how long they are going to live.
• Tax implications matter.
• Estate planning isn’t just for the wealthy.
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Let’s talk about the mandatory withdrawals you’ll eventually have to take out of your accounts. Required minimum distributions are something to expect once you hit a certain age, but there are still plenty of ways to be strategic about them. Especially once you’re over 60 and in the retirement “red zone,” you’ll want to plan for your RMDs and what you can do about them. We talk through different strategies that David has used with his clients and what to keep in mind about RMDs.
Here’s what we discuss on today’s show:
- Why do we have required minimum distributions?
- Can I avoid RMDs?
- How can you plan for RMDs and what are the risks if you don’t plan?
- If you don’t need the RMDs to live on, what can you do instead?
- How has David helped someone plan for RMDs?
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Is it really necessary to set up a trust? Fran shares what her age and assets are when she asks this important question. While David is not a lawyer, as a financial advisor he shares some of the reasons why or why not someone would want or need a trust when estate planning. Tune in as David answers this and two other questions from the mailbag on today’s show.
Here are the listener questions David answers:
- Mailbag: Should I save my healthcare receipts in my 30s to later get reimbursed by my HSA in retirement?
- Mailbag: Should I start Social Security sooner for those cost-of-living increases?
- Mailbag: Do I really need to redo my trust with an attorney?
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
We used to talk about stretch IRAs all the time, but now we hardly mention it. Why is that? Even though we rarely discuss it on the podcast, David regularly hears questions about stretch IRAs in his office from clients. In this episode, we’ll reflect on the stretch IRA’s former glory, and share how to leave an IRA to a beneficiary strategically now that the stretch IRA as we knew it, ceases to exist.
Here’s what you’ll learn on today’s show:
- What a stretch IRA was and why it was important.
- The new rules from the SECURE Act totally changed the Stretch IRA strategy for leaving your IRA to a minor.
- Should you leave some of your IRA to your grandchildren?
- Is leaving your IRA to a minor still a good idea?
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Is there such thing as contributing to a Roth IRA too soon? After a number of clients have asked how to fund a Roth IRA for a grandchild or college-aged child, David wanted to share all about this option and gift toward the future.
Here’s what you’ll learn on today’s show:
- Is it possible to be too young to start a Roth IRA? (2:12)
- What qualifications do you need to open a Roth IRA? (4:30)
- Why should we pay attention to Roth IRAs? (6:16)
- Can they withdraw early from the account? (8:03)
- Any Roth opportunities to gift adults in their 20s, 30s, and 40s? (16:32)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Whether you’re close to retirement or still far from that exciting date, it’s not uncommon to wonder when you should start preparing for each aspect of it. From figuring out the right time to be debt-free and when to adjust your portfolio risk, to deciding when to plan for your Social Security benefits or healthcare coverage, this episode guides you through the ideal timeline for each. Tune in to find out how far away from retirement you should have answers to these pressing questions.
Here’s what we'll discuss on today’s show:
- The best time to get rid of debt is now. (3:38)
- Am I behind on my savings? + The importance of systematically saving for retirement and starting early. (7:48)
- Do I have a structured plan to generate income in retirement? (15:00)
- When should I start drawing Social Security? (19:55)
- Should I stay in my home or sell it and downsize? (24:28)
- Updating your legal documents and planning for long-term care needs. (28:21)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
We’ve all heard the phrase, “too much of a good thing.” Is there such a thing as saving “too much” for retirement? If you’re still working, it’s helpful to figure out how much you really need for the future. Have a plan that considers what your retirement income sources will be as well as what expenses you may face. There are some expenses that are reduced or eliminated altogether in retirement. On the other hand, don’t forget about added costs like inflation or health care costs.
Here’s what you’ll learn on today’s show:
- Are clients saving too much for retirement? (3:31)
- How much is enough? (6:49)
- What else do you need to consider? (8:36)
- Expenses become the key driver for what to save. (10:15)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
When it comes to taking Social Security benefits, there’s often a question about whether to take them as soon as possible or to wait. Inspired by a few recent conversations in the office, David wanted to specifically discuss the Social Security benefits for those who are divorced, currently single, at retirement age, and able to get benefits based on an ex-spouse’s work records.
Here’s what you’ll learn on today’s show about ex-spouse Social Security benefits:
- Who is eligible to claim ex-spouse benefits? (1:58)
- What does the benefit look like? (3:27)
- What is the impact on the ex-spouse and potentially their current spouse? (5:38)
- What might happen for someone with numerous ex-wives, like say, Johnny Carson? (7:19)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
You might be surprised how many times the same financial questions come up, but the answers can depend on the person. David talks through commonly asked questions and concerns in the office and shares how to find the answer that is right for you. Stay tuned to see what you can learn from this week's mailbag episode!
Here’s what you’ll learn:
- Should I pay off my house early? (1:51)
- How do I financially cut off my adult child without causing issues? (5:07)
- Should I delay retirement until my house is paid off? (9:52)
- Mailbag: How do I protect my savings and emergency fund? (14:51)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
After a few days with the grandkids, David is ready to talk about ways to give tax-free gifts to beneficiaries, now and in the future. How can you pass some of your legacy onto the next generation? Whether you are well into retirement or still have kids yet to leave the nest, there are a number of ways to do this. David shares three strategies and then discusses what possible downsides you’d want to watch out for.
Here’s what you’ll learn on today’s show:
- What does it mean to have a tax-free gift? (3:28)
- Doing a Roth conversion can benefit your beneficiaries. (4:28)
- Roth contributions can be made by parents or grandparents. (9:01)
- Use a stepped-up cost basis on a non-IRA brokerage account. (10:33)
- Are there any downsides to these strategies? (12:45)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
There are ways to invest tax-efficiently, and you don’t necessarily need a Roth or IRA, or 401(k) to do that. How so? David answers three questions from the mailbag today from listeners who are facing different investing decisions. From what to do with an inherited IRA to making wise financial decisions that can impact future generations, there are ways you can approach these situations strategically.
Here are the questions we cover today:
- Mailbag: Am I required to take distributions annually on inherited IRAs? (2:53)
- Mailbag: Should I merge old 401(k) accounts? (5:25)
- Mailbag: How does inheriting a Roth IRA work? (9:29)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
When you go to set up an IRA or financial account, one simple, critical step is designating a beneficiary. This very important detail is too often overlooked or skipped over, causing mistakes that are incredibly hard to fix once you’re gone. In today’s podcast, David outlines the four biggest mistakes he commonly sees with beneficiary designations and what you can do to fix them before it’s too late.
Here are the big mistakes you’ll want to avoid:
- Not naming a beneficiary. (6:17)
- Not naming someone because it’s in your will. (8:16)
- Not funding your trust. (10:28)
- Not understanding per stirpes vs. per capita rules. (15:10)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Your credit score can have a big impact on certain financial decisions such as buying a house or car. Today we talk through how your credit score, or FICO score, is calculated and how you can improve it. While the average credit score in America in 2022 was 714, aiming for higher scores can unlock better financial opportunities. In this episode, David will cover the scores you should be aiming for and how to achieve them.
Here’s what you’ll learn in today’s show:
- Why is your credit score so important? (2:21)
- 35% of your FICO score is based on whether you pay on time. (7:24)
- 30% of your score is how much you owe vs. how much you have available. (8:50)
- 15% of your score is how long you’ve had the accounts open. (10:39)
- 10% of your score is opening too many accounts in a short period of time. (13:13)
- 10% of your score is whether you can manage a mix of credit types. (14:06)
- What are some things that don’t actually impact your credit score? (15:44)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
We all know that David likes Roths as a good vehicle for retirement and inheritance. But today we’re going to dive into why someone shouldn’t do a Roth conversion. Whether that’s based on the timing or circumstances, there are a few reasons a Roth conversion might not be the right fit for you.
Here are six reasons why you might not want to do a Roth conversion:
- I can’t stomach paying my taxes early. (2:19)
- I can’t believe Roth IRAs will always be tax-free. (4:07)
- Maybe I should wait until future tax policy becomes clear. (6:39)
- We give a lot of money to charity each year. (9:12)
- What about IRMAA? (11:12)
- Will a Roth conversion affect the tax on my Social Security? (14:10)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Whether you love them or hate them, annuities are just another financial tool that could help you meet your financial goals. Working with the right advisor who is neutral and unbiased will help you navigate your decisions around annuities. There are four types of annuities, so start by understanding what those are to then ask the question of whether they are the right fit for your financial plan.
Here’s what you’ll learn today:
- What are annuities? (2:22)
- Myth: Insurance companies keep all my money after I die. (5:32)
- Myth: Annuities are very complicated. (9:04)
- Myth: Inherited annuities are subject to double taxation. (11:19)
- Myth: Annuities pay low rates of return. (15:37)
- Myth: Annuities have very high fees. (18:04)
Check out these previous episodes for more info on annuities:
Episode 138 - https://www.coveryourassetskc.com/episode-138-3-questions-to-ask-before-you-buy-an-annuity
Episode 83 - https://coveryourassetskcpodcast.podbean.com/e/episode-83-what-to-know-about-the-4-types-of-annuities/
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
What should you do next financially? The answer might depend on your age. David works with people of all ages and suggests a different set of strategies based on your life stage. Today, we’ll talk through the things you should be thinking about during each decade of adulthood to best prepare for retirement.
Here’s what you’ll want to know for each age:
- Does age matter when it comes to financial planning? (2:55)
- In your 20s and 30s, write down financial goals and focus on your career. (5:04)
- From 40 to 55 years old, stay on track, even with added expenses. (8:31)
- After 55, you’re in the retirement red zone. (11:10)
- From 67 and beyond, you need keen focus on your retirement plan. (15:21)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
We all know how much David loves a Roth IRA, so when he said in a previous podcast that an HSA was even better, this caught a few people by surprise. When you contribute to an HSA or health savings account, you get a tax-free account with a tax deduction for putting money into. This account is only available if you have a high deductible healthcare plan though. David shares what you need to know about this account in response to a listener question.
Here are the listener questions David answers on today’s podcast:
- Mailbag: What makes an HSA better than my Roth IRA?
- Mailbag: Following Silicon Valley Bank, should I be worried about investing at my bank?
- Mailbag: Will my late husband’s stretch IRA pass on to me as a stretch IRA as well?
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
It’s tax time! If you haven’t gotten your taxes done yet, time is running out. This is a very busy time for David and his team as they help clients sort through their taxes for this year and strategies for the future.
When you are retired, your taxes might look different than they did when you were in your working years. No one wants to pay more in taxes than they absolutely have to. In this episode, David outlines five big questions many retirees face when it comes to taxes. Stay tuned for some helpful insight from David, so that you can make informed decisions with your taxes in retirement.
Here are the questions we’ll discuss on today’s show:
- What are the tax implications of withdrawing money from my retirement accounts? (3:00)
- Will my Social Security be taxed? (5:27)
- How would my taxes change if I decide to move to another state? (7:38)
- Are there any tax benefits for making charitable contributions in retirement? (10:59)
- What are the tax considerations for gifting money to children or grandchildren? (14:06)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Unfortunately, there’s a lot of misinformation that goes around when it comes to Social Security. This can lead to confusion and uncertainty among individuals planning for their retirement.
Today, David debunks seven common myths he encounters when speaking with clients and prospective clients about Social Security. Will Social Security still be around by the time you retire? Social Security is likely to undergo some changes, but that doesn’t mean it’s going away for good.
Seven common Social Security myths:
- Social Security is going broke. (1:22)
- My retirement age is 65. (4:44)
- Delayed claiming is always best. (6:41)
- Congress raids Social Security to pay for other programs. (9:24)
- My Social Security benefits are tax-free. (12:21)
- Delaying Social Security doesn’t affect my spouse’s benefit. (15:44)
- My ex-spouse’s benefits reduce my own benefits. (17:58)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Not all retirement accounts are created equal. So, when you save for retirement, it’s important to know that you have the right account and plan for you. On today’s podcast, we will talk about the different kinds of accounts such as 401(k)s, IRAs, Roth accounts, and others. Spoiler alert: David shares one account that’s even better than a Roth IRA!
Here’s what you’ll learn on today’s show:
- Not all retirement accounts are created equal. (1:15)
- The foundation of most people’s retirement plans is the 401(k). (2:45)
- The IRA is used mostly by people who don’t have a 401(k) or 403(b). (7:17)
- Using the Roth option for your IRA or 401(k). (9:43)
- A simple IRA are a good option for those who are self-employed. (13:03)
- HSAs and FSAs may also be a part of your retirement savings plan. (14:40)
- The most popular retirement-related products. (20:36)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
With warmer weather on the horizon, you might be ready to start thinking about spring and summer hobbies. Besides financial planning (and Chiefs football), David’s favorite thing is going golfing. On today’s show we talk about what we can learn about financial planning from the game of golf. From getting a “hole in one” when investing in the market to hearing from the caddie for advice, there’s plenty of parallels. Par for the course, we put a few puns in there as well!
You’re always going to make mistakes, whether in golf or investing. But it’s a matter of focusing on your goals and learning from your mistakes. Understand what tools you have access to and how you can leverage those. Finally, make sure you have a wise sounding board as you navigate what’s ahead.
Here’s what you’ll learn on today’s show:
- Getting a hole in one doesn’t make you the winner. (2:55)
- Certain golf clubs are more important than others. (9:30)
- The best golfers have a caddie. (16:32)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
While terms like the Nasdaq and S&P 500 get tossed around in conversation or might be mentioned on the news, the average person doesn’t know a whole lot about them. To help you be more in the know, David shares six things that you might be surprised to learn about the S&P 500.
Here’s what you’ll learn on today’s show:
- The S&P 500 has 505 stocks in it. (2:01)
- Three of the biggest four ETFs track the S&P 500. (4:05)
- Don’t be fooled by an illusion of diversification. (5:59)
- The S&P 500 covers half of the world’s stock values. (10:42)
- The top five holdings make up 22% of the holding in the index. (12:11)
- There is an equally weighted ETF you can get if you want. (14:14)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Were you thinking about contributing to a Roth IRA last year but never get around to it? Good news! It’s not too late to make your Roth IRA contributions for 2022. In fact, David encourages most people to make, and even max out, this contribution. So, if you haven’t made your 2022 Roth contributions, now’s your chance.
If you’re looking for ways to invest, this is often a good place to allow your investments to grow tax-free. David explains the ins and outs of contributing to a Roth IRA, who can benefit from it, and why it’s not too late to contribute 2022 dollars even though we’re already well into 2023.
Here are five things you’ll want to know about Roth contributions:
- It’s not too late to contribute for 2022. (3:15)
- Tell the custodian it’s a 2022 contribution. (4:29)
- Should I max out my contribution? (5:55)
- Am I eligible to make a Roth contribution? (7:15)
- Am I too old to contribute to a Roth? (10:25)
- Bonus: Why to use a Roth instead of a bank. (11:43)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
On this episode of Cover Your Assets KC, we’re taking on the conversation about the elusive Orphaned 401(k), which sounds like a lonely account that’s been forgotten about in the back of a financial institution’s filing cabinet. But what is it, really? We’ll get to the bottom of that and explore why it’s such a problem if you have any of these little lost lambs of retirement savings in your portfolio.
If you're feeling overwhelmed by the thought of consolidating your 401(k)s, don't worry. We'll explore the best choices available to you, including the 60-day Rollover (no acrobatics required!) and the Direct to Custodian transfer (who knew transferring money could be so straightforward?). Plus, we'll dive into the Roth 401(k) and help you decide if it's a good fit for your financial goals.
Here are the questions we cover on today’s episode:
- What is an Orphaned 401(k)? (1:30)
- David details examples of why having an Orphaned 401(k) is such a problem. (2:40)
- Many people decide to consolidate their 401(k)s. David tells us what your choices and options might look like. (5:07)
- David shows us the difference between doing a 60-day Rollover or a Direct-to-Custodian transfer. (7:43)
- And you knew we wouldn’t finish a show without mentioning the word “Roth”. This time it’s in the form of analyzing what happens to Roth contributions in a 401(k) when you’re consolidating or dealing with an Orphaned 401(k). (10:03)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
On this episode of Cover Your Assets KC, we’re answering four listener questions on our latest “Mailbag” edition of the show. Join us as we touch on questions about Roth conversions for a 60-year-old, inherited money with forced withdrawals, using rental properties for retirement income, and concerns about being hassled to pay quarterly taxes in retirement.
We’ll cover a lot of ground on this episode, so whether you’re nearing retirement or already there, there’s sure to be something of value for you in today’s conversation.
We'll start by addressing the question of whether someone who's 60 and retiring in the next 5-6 years should start converting as much of their IRA to Roth as they can. Next, we'll discuss the letter that one listener received informing them that they need to withdraw some money from an inherited account. We'll also delve into a question from a listener who has multiple options for how to fund the purchase of a rental property. And finally, we'll tackle someone’s concern about not knowing how their tax situation will change in retirement and if they’ll have to pay quarterly taxes.
Join us as we explore these important retirement planning topics, and as always, if you have any questions, feel free to send them in!
Here are the questions we cover on today’s episode:
- I’m 60 and probably retiring in 5-6 years. Should I start converting as much of my IRA to Roth as I can? (2:35)
- I inherited some money from my mom when she passed away last year, and I just got a letter telling me that I have to withdraw some money from the account this year. What’s that all about—I thought I didn’t have to do that until I’m in my 70s? (6:07)
- I’m interested in buying a rental property for some additional retirement income. Which of these options is better? Should I cash out investments and pay cash for the property, should I take out a home equity loan to raise the cash, or should I just have a mortgage on the rental property? (9:24)
- My income will be different once I retire in a few months, so I’m not sure what I’m supposed to do about taxes. Should I be making estimated payments every quarter? How do I know how much I should be paying since I’ll be in a different tax bracket than I’ve been in the past? (14:00)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
As a continuation of last week’s series on retirement preparedness, we talk through the remainder of the checklist of things you’ll want to take care of. This will not only give you a good place to kick off 2023, but also a good assessment on the direction of your financial plan. Are you feeling confident about your level of preparedness?
Here are the next five points on the checklist for retirement preparedness:
- Do I have a plan to combat inflation? (1:18)
- Am I prepared for the possibility of future tax increases? (6:41)
- Can I address healthcare costs? (9:56)
- Should I pay off my mortgage? (13:33)
- Do I have any current investments or products I don’t understand? (16:36)
For additional resources or to contact David, visit us online: http://coveryourassetskc.com
Or call: 913-317-1414
Another year is upon us and it’s a great time to ask yourself 10 questions to assess how ready you are for retirement. If you’re retiring this year, it’s essential to have some concrete answers to these questions. If you’re still a few years from the milestone, tune in so you can start thinking about these critical conversations.
This week, we’ll cover the first five points in the checklist and then review the next five items in next week’s podcast with part 2. From determining your retirement income needs to guarding against some of the unknowns ahead, David shares what you’ll want to think about when it comes to your retirement plan.
And here are the next three resolutions to focus on this year:
- Do I know how much income I need each month? (3:39)
- What order should I withdraw from my accounts? (9:00)
- When is the ideal time to take Social Security? (12:51)
- Have I addressed longevity risk? (18:37)
- Am I prepared to handle market volatility? (21:50)
For additional resources or to contact David, visit us online:
http://coveryourassetskc.com
Or call: 913-317-1414
In continuation of our conversation about financial resolutions (or goals) for this year, we talk about the next three key things to focus on. After establishing your written goals, calculating your net worth, and getting the right size emergency fund in place, what’s next? David talks us through what to do and why. He also shares resources and information about the US debt clock as well as how much life insurance you should have to cover your most important assets.
If you missed the first episode of this series, you can find it here:
https://www.coveryourassetskc.com/episode-203-2023-financial-resolutions-part-1
And here are the next three resolutions to focus on this year:
- Systematize your savings. (2:00)
- Eliminate bad debt. (8:40)
- Cover your assets. (14:19)
https://www.usdebtclock.org/
https://www.bankrate.com/insurance/
For additional resources or to contact David, visit us online:
http://coveryourassetskc.com
Or call: 913-317-1414
To make sure you have a strong start to the new year, David shares six financial resolutions you should make in this two-part series. Many of these things David recommends doing every year, which can really add up over time.
Here are the first three resolutions to focus on this year:
- Establish or update your written goals. (4:28)
- Calculate your net worth. (9:22)
- Right-size your emergency fund. (16:17)
For additional resources or to contact David, visit us online: http://coveryourassetskc.com
Now that Congress just passed the Secure Act 2.0, we wanted to talk about what changes to plan for. While in many ways it made things complicated, David breaks it down so you know how it could impact your financial plan. Some of these provisions start now while others won’t be implemented for years. Either way, it is good to understand what is happening and keep these changes in mind for the future.
Here are some changes you’ll want to know about:
- The required minimum distribution age changed. (4:10)
- The catch-up contribution limits increased. (7:15)
- Certain people must make catch-up contributions in a Roth 401(k). (8:42)
- The penalties around RMDs are changing. (11:53)
- What strategies should you consider before RMD age? (14:25)
For additional resources or to contact David, visit us online: http://coveryourassetskc.com
As we wrap up the year, we dig into the mailbag to see what questions listeners have for David. We start with a question about saving for retirement in a 401(k) and how to max it out. More than meeting the company match, what’s the most you can put away? Then, David addresses concerns about future taxes when saving for retirement.
Here are the last two listener questions for 2022:
- Mailbag: What does it mean to max out a retirement account? (2:01)
- Mailbag: Should I save tax-deferred or tax-free or in another investment? (8:13)
Happy New Year!
For additional resources or to contact David, visit us online: http://coveryourassetskc.com
Sometimes you hear about a term or idea when it comes to the stock market, but don’t know enough about it. David talks us through some of these concepts so you can better understand the stock market and how it might relate to your financial decisions and financial plan.
Here are four life events you’ll want to be prepared for:
- What’s the difference between a bid, ask, and bid-ask spread? (2:37)
- Which of the different trading strategies should you follow? (7:38)
- Is there a big difference between the Nasdaq, Dow, and S&P 500? (10:25)
- Why is volume important to investing in the market? (16:04)
- What should I know about beta? (23:26)
For additional resources or to contact David, visit us online: http://coveryourassetskc.com
As some of us look toward setting goals in the new year, you might have running a race on your list. How are you doing when it comes to running the marathon of planning and saving for the future? Today, we talk about how running a race like a marathon has a lot of parallels with retirement planning.
Here are four life events you’ll want to be prepared for:
- Training and preparation are required. (1:34)
- Diversify your planning. (8:50)
- The proper diet is key. (9:39)
- Don’t start out too fast. (15:00)
For additional resources or to contact David, visit us online: http://coveryourassetskc.com
Let’s explore four major life events you might face that could cause you to make significant financial decisions. Instead of going with your knee-jerk emotions, David explains how you can approach these situations with reason and wisdom. He breaks down what questions you’ll want to consider and how to set yourself up for a strong financial future.
Here are four life events you’ll want to be prepared for:
- A job change may cause you to reevaluate. (3:03)
- Divorce has major financial implications. (7:44)
- Receiving an inheritance is often a new experience to face. (11:30)
- The death of a spouse is incredibly hard but critical to plan for. (15:49)
For additional resources or to contact David, visit us online: http://coveryourassetskc.com
After the last few podcasts and a few client meetings, David shares some recent listener questions he has received. These specific situations will cover things like Roth conversions, the rule of 72, inherited IRAs, and making wise financial decisions. As always, if you have a question for David, be sure to reach out!
Here are the listener questions David answers on today’s podcast:
- I’m 62, retired, and considering a series of Roth conversions before I turn 72. Can you explain how to use the rule of 72? (2:46)
- I recently inherited but don’t need the money now. What are the rules about withdrawals? (13:28)
For additional resources or to contact David, visit us online: http://coveryourassetskc.com
What could possibly be the benefits of inflation? Since the increased living costs have been hard to handle lately, David helps us look at the bright side of inflation on today’s show. From the higher dollar amount you can contribute to your IRA to changes in the tax brackets, David shares the numbers you’ll want to know.
Here’s what to add to your financial to-do list:
- There is a big Social Security benefit cost of living increase. (1:35)
- You can increase your contributions into your retirement accounts. (4:13)
- Federal tax brackets are changing. (6:24)
- With higher interest rates, do we have better places for safe money? (13:29)
For additional resources or to contact David, visit us online: http://coveryourassetskc.com
Every listener should care about RMDs, regardless of your age. If you inherit an IRA, you’ll have a required minimum distribution, even before you reach the age of 72. One thing you always want to avoid are penalties! David gives a breakdown on what to expect with RMDs and how to calculate yours.
Here’s what to add to your financial to-do list:
- Everyone should know and care about RMDs. (3:38)
- How do you calculate your RMDs? (6:40)
- Why do the RMDs keep going up? (14:19)
For additional resources or to contact David, visit us online: http://coveryourassetskc.com
With a couple months left before 2022 comes to a close, David has a list of things to focus on and take care of in your financial life. Whether you are retired or full-time employed, these are things you won’t want to overlook before the year ends. Don’t wait until the last minute! Now is a great time to work on these things.
Here’s what to add to your financial to-do list:
- Max out your IRA or 401(k). (5:46)
- Pay attention to your RMDs. (9:48)
- Think about qualified charitable distributions. (14:21)
- Check your beneficiaries. (16:40)
For additional resources or to contact David, visit us online: http://coveryourassetskc.com
When you retire, there are a few things that could throw your plan off track. Without a good plan, you could get nervous as things change in the market.
Following rules of thumb may be a good place to start, but as time goes on, some of these rules may change. Are you prepared for these unexpected challenges?
Here’s what we discuss on today’s show:
- Why we should pay attention to these challenges. (2:17)
- If your income plan remains intact when the market goes down. (4:47)
- Utilize the three-bucket approach. (7:15)
- How to face the challenge of minimizing taxes in retirement. (11:47)
For additional resources or to contact David, visit us online: http://coveryourassetskc.com
When it comes to bonds, there is often a lot of misunderstanding. Most people assume they are safe, but lately the news has talked about the risk and demise of bonds. Which is it?
Within your portfolio, you likely own bonds, whether you realize it or not. David explains the ins and outs of bonds and how they can benefit your portfolio.
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Here’s why you might consider also investing somewhere else:
- What’s the deal with bonds? (1:42)
- The difference between bonds and bond funds. (4:17)
- How the interest rates impact bonds. (9:06)
- Are bonds actually safe? (12:34)
- What should we know about bonds right now? (16:26)
For additional resources or to contact David, visit us online: http://coveryourassetskc.com
On a previous show, we mentioned a Mailbag episode coming up. Instead of a traditional Mailbag, we have a conglomerate episode to discuss the questions we have been getting about the market from clients and listeners, alike.
In this episode, we discuss the stock market, how to determine what is overvalued vs. under-valued, and learn how you can use the Price Earning Ratio to look at individual stocks and the market value overall.
Here’s why you might consider also investing somewhere else:
- Is the market overvalued or undervalued? Here is how the PE Ratio can help you find out. (3:21)
- Does a higher PE Ratio equal a more speculative stock? (8:14)
- Here is another way you can use the PE Ratio that you might not know about. (14:25)
- How you can use this advice, depending on your current situation. (20:09)
For additional resources or to contact David, visit us online: http://coveryourassetskc.com
If you’ve been watching the news, you may be following the hurricane on the East Coast this week. As the meteorologist talks through it, there are a lot of graphics to go along with the information to explain what to expect and how hurricanes work. Similarly, when retirement planning, we use a lot of ways to discuss what you should expect and how to prepare.
Here’s why you might consider also investing somewhere else:
- Your retirement plan should work like the eyewall replacement cycle in a hurricane. (3:33)
- How do you prepare for the impact of a hurricane, even after it’s over? What risk do you face in retirement after you’re done working? (8:23)
- Can computer models replace the benefits of a meteorologist? What about a financial advisor? (13:20)
- Are your concerns being articulated and addressed with your advisor? (17:40)
For additional resources or to contact David, visit us online: http://coveryourassetskc.com
You may have heard some of these rules of thumb before but should they be followed? A rule of thumb may be used as a starting point, but is no replacement for a custom financial plan created with your unique needs and goals in mind. David talks today about which of these are good financial guidance or which of these rules could leave you astray.
Here’s why you might consider also investing somewhere else:
- Find out if the rule of 100 is a good basic rule when it comes to taking risk. (2:47)
- How does the 75 (or 80) percent rule apply to your retirement income? (5:24)
- Worried about a bear market? Here’s when the rule of five comes into play in the stock market. (9:32)
- How much should you really have saved in your retirement fund by the time you are 60? (13:11)
- The four percent rule is well-known but is it well-regarded by David? (15:16)
For additional resources or to contact David, visit us online: http://coveryourassetskc.com
We talk a lot about investing in 401(k)s and Roth IRAs, but what about investing in something else? David gets questions about this topic from young and old alike, so today we’ll talk about some alternative options and why you might choose to do so.
Here’s why you might consider also investing somewhere else:
- There is freedom in having these other investment options. (4:16)
- Be prepared for your taxes to change! Certain rules you don’t want to overlook. (8:44)
- Know how the step up in basis works with an inheritance. (14:30)
- Passing money onto the next generation can look a number of different ways. (16:30)
For additional resources or to contact David, visit us online: http://coveryourassetskc.com
Once you’ve made the decision on some of these financial things, there’s no going back! Let’s talk through a few areas you want to make sure to carefully consider before making the decision.
Key Points:
0:40 - What is David up to this weekend?
1:40 - What happens when you start Social Security?
5:23 - How rigid is the decision to elect spousal benefits on your pension?
7:43 - Get life insurance before you become uninsurable.
11:07 - Choose a retirement date wisely.
For additional financial resources, visit us online: http://coveryourassetskc.com
Why would you get life insurance after the age of 65? David shares three good reasons why you might consider using this financial tool.
Key Points:
0:34 - David has been spending some time on the golf course!
4:08 - Why should we consider life insurance after 65?
5:00 - Some use life insurance for income replacement.
8:03 - Some policies can help cover long-term care needs.
11:04 - Having enough liquidity to pay estate taxes.
13:57 - How does David include this in the planning process?
More About Today's Episode:
When you’re young, there are plenty of good reasons to get life insurance. If one spouse dies, this helps cover things like the home mortgage, college education for your kids, and living expenses. In your 60s and retired, you might be glad to not need it for those reasons anymore. There are however a few other reasons to consider getting life insurance, even when retired.
One reason people get life insurance in retirement is to work as an income replacement. If you have a pension, what will replace that monthly income for your spouse when you die?
Another reason is to use a life insurance policy as a long-term care benefit. David likes this option because you don’t know if you’ll need long-term care insurance. But with a life insurance policy that has a long-term care benefit, when you die, your spouse or heir still gets a tax-free death benefit. It’s not “use it or lose it” like a long-term care policy is.
Finally, life insurance may help have enough liquidity to pay estate taxes. The estate tax goes up pretty quickly. If you find yourself having done really well over the years, this might be worth looking into to provide a tax-free lump sum. Ultimately, it comes down to how much you want to spend to take risk off the table. Check with your financial advisor to see if it’s something that works well in your financial plan. It’s usually best to do so right around the time you’re retiring.
For additional financial resources, visit us online: http://coveryourassetskc.com
What kinds of things do you need to plan for? While you might not know what the future holds, you can be financially prepared for it.
Key Points:
0:40 - We can’t wait for some fall football!
2:19 - What retirement uncertainties are there?
4:04 - What is your life expectancy?
6:02 - Future tax rates are unknown but should be considered.
10:30 - What about the solvency of Social Security.
12:42 - How do you plan for healthcare needs?
14:52 - What about inflation?
More About Today's Episode:
How do you construct a plan for retirement when you have to account for unpredictable factors? We’ll talk through five things that can come up during retirement. The best way to start is by having a really good, written plan.
No one knows how long they will live. So, David recommends making a plan that has your money lasting until you’re 100 to be safe. Another thing to look out for is if one spouse dies earlier than expected and leaves the surviving spouse without everything in place. Do some “what-if” strategizing with your retirement plan.
Future tax rates can make a big impact on your finances, but we can’t be sure what they will be. We can try to predict what they will be. Right now, they are historically low, so it is probably best to assume they will go up. David shares what the tax brackets could look like. Don’t forget that this bracket would change if one spouse passes away and you go from married filing joint to filing single.
What changes to Social Security might change your retirement plan? David thinks it’s likely that they will raise the full retirement age. The amount that comes out of your paycheck may raise as well.
Another unknown is what kind of healthcare needs you’ll have. Ask, what if one spouse needs several years of care? What happens to the other spouse financially?
Finally, inflation is something we’ve been talking about a lot lately in the news. Your plan has to include some amount of inflation. Over the course of retirement, potentially 25-35 years, inflation has to be built in as it is bound to go up over that time. Talk with a financial advisor to make sure all of these uncertainties are adequately covered in your financial plan.
For additional financial resources, visit us online: http://coveryourassetskc.com
What should you do with those retirement savings? Whether you are leaving a job or navigating big expenses in retirement, David is here to answer a few questions from the mailbag.
Key topics on this episode:
1:32 - Mailbag: Should I spend money on home updates in retirement?
8:24 - Mailbag: Should I convert my IRA rollover into a Roth?
For additional financial resources, visit us online: http://coveryourassetskc.com
From credit cards to Social Security, David shares his thoughts and advice regarding these common financial concepts. Which of these do you agree or disagree with?
What we discuss on this episode:
1:45 - Should you always pay off your house ASAP?
4:07 - Nobody needs life insurance in retirement?
6:59 - Should you never use credit cards?
8:37 - Buy mutual funds or ETFs instead of individual stocks?
12:27 - Start Social Security as soon as you can?
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
Wondering what you need to know about a bear market, a mutual fund, or a recession? David tackles these sometimes confusing topics and shares the essentials you should know.
What we discuss on this episode:
0:46 - The Chiefs are getting up and running again!
1:20 - Let’s talk about some financial jargon.
2:05 - What should you know about bear and bull markets?
6:07 - Why is diversification important?
12:10 - A lot of people are talking about a recession.
15:13 - What’s the difference between mutual funds, ETFs, and target date funds?
20:17 - 401(k) vs. Roth IRA vs. IRA?
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
Is now the right time to do a Roth conversion? David talks about which questions to ask before making the move.
What we discuss on this episode:
1:53 - Am I too old for a Roth conversion?
3:52 - What’s my tax rate?
9:07 - When will I start to need money from my IRA?
11:07 - Do I have non-IRA money to pay the tax?
15:19 - Taxes are low now but 2025 is right around the corner.
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
Is now the time to sell or time to stay put with your investments? David shares what to look for to determine when we’ve hit the bottom and when to invest.
What we discuss on this episode:
0:24 - It’s the dog days of summer!
1:38 - What do the experts say about the market?
4:26 - Is it too late to sell?
13:11 - Should we continue to buy even as it goes down?
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
Following some of our recent podcast topics, David answers a few questions from listeners wanting to get more information. Then, David shares his thoughts on untrustworthy advisors and what to do to avoid them.
What we discuss on this episode:
0:41 - David loves listener questions.
1:13 - Mailbag: What is the IRS requirement about the wash sale rule?
4:36 - Mailbag: When can I offset gains with losses?
14:03 - What does David think of advisors that take advantage of clients?
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
Should you be considering a Roth conversion right now? David talks about the unique opportunities that a bear market provides.
What we discuss on this episode:
1:20 - Let’s talk about one of David’s favorite topics!
1:48 - What is a Roth conversion?
5:08 - Why would someone want to do a Roth conversion?
7:06 - How does a bear market impact a Roth conversion?
9:03 - Don’t wait for a market recovery.
14:16 - Should you take advantage of the opportunity?
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
What’s the silver lining in a down market? David shares what might be a benefit to you, despite the losses you may currently face.
What we discuss on this episode:
0:49 - Listener feedback is always welcome.
1:49 - How should we look at taking losses in our portfolio?
3:12 - What are the basic types of accounts and which one are we talking about?
7:41 - Why talk about it now?
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
Is the economy making you nervous right now as you near retirement? What can you do right now to keep your investments and your sanity intact?
What we discuss on this episode:
0:27 - Are you almost retired and worried about the market?
2:30 - Do you have a plan for your money right now?
8:20 - People sell out of fear. What can you do instead?
19:43 - What should you do now?
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
No one wants to make a mistake when it comes to their hard-earned money! David talks through common mistakes people make with an IRA and how to avoid them.
What we discuss on this episode:
0:32 - Let’s talk about common IRA mistakes.
2:28 - Worried about the five year rule?
5:37 - Is your 401(k) diversified before you retire?
7:56 - Are you being strategic about RMDs?
13:17 - There’s no do-over on the 60-day rollover.
18:05 - There is no 60-day rollover on inherited IRAs.
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
Housing is a really important topic for a lot of retirees because, for many of us, it’s the biggest asset we’ll ever own or manage. We want to get that part of our financial equation correct, so it’s no surprise it takes up a nice slice of the retirement planning conversation. On this episode, we’ll cover some common housing questions from retirees and hopefully hit on an issue that might also be on your mind.
What we discuss on this episode:
0:36 - How is David celebrating his upcoming birthday?
2:47 - Let’s talk about your home.
4:30 - Interest rates are low(er) right now.
7:58 - Is it wise to downsize?
11:02 - Should you get a home equity line of credit?
14:25 - Is it a good idea to sign over your home to an heir?
17:30 - How is your home set up within an estate plan?
19:54 - Are reverse mortgages a good idea?
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
What’s the average amount some have saved? How many people plan to work in retirement? We talk through recent financial statistics to give you an idea of what matters and what isn’t a great marker of financial success.
What we discuss on this episode:
0:57 - Women have smaller overall retirement savings amounts.
5:25 - Experts estimate you’ll need $1.04 million to have a comfortable retirement.
8:44 - 55 percent of American workers plan to continue working in retirement.
10:27 - 25 percent of Americans increased savings as a result of the pandemic.
12:20 - The number of retired workers receiving Social Security benefits was almost 70 million in 2021.
17:07 - Retirees spent an average of $6,668 on healthcare in 2020.
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
What should you do when you have retirement savings but a lot of consumer debt? David shares his thoughts on debt and how to tackle in before answering three other listener questions.
What we discuss on this episode:
0:50 - David is looking forward to some upcoming travel and celebrations!
2:33 - Mailbag: Should I use my 401(k) to pay off my consumer debt?
6:42 - Mailbag: How do I show a potential advisor they should include me in the discussion?
10:23 - Mailbag: Was it a mistake to start taking Social Security at 62?
14:33 - Mailbag: Is diversifying with multiple IRAs a good idea?
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
If you find yourself retiring sooner than you planned, what do you do? We talk through three steps you need to take if you find yourself retired earlier than expected.
What we discuss on this episode:
0:31 - What inspired today’s episode?
2:41 - What would you do if you became an accidental retiree?
4:00 - What do you spend now?
6:07 - Where will your income come from?
10:28 - Will your money last?
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
Instead of pretending to understand these terms, let’s break it down and learn together what this financial jargon means and how it impacts you.
What we discuss on this episode:
0:33 - There’s always something to look forward to!
2:20 - What financial jargon should we know more about?
3:44 - What causes inflation?
8:08 - What does a recession look like?
13:36 - How does dollar-cost averaging work?
17:01 - What are bonds vs. stocks?
21:27 - What are the rules with capital gains and losses?
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
What’s a QCD and how might it benefit you? David talks through the ins and outs of qualified charitable distributions on today’s show.
What we discuss on this episode:
1:18 - What is a QCD?
4:54 - How much can you give with a QCD?
5:34 - Can it be done from a 401(k)?
6:24 - Where can it go?
8:38 - How does it work at tax time?
10:05 - When should you do it?
11:32 - Is it only for people who have RMDs?
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
After you blow out the candles, what do you need to know as you cross the threshold of certain birthdays in your life? David shares important ages when financial planning.
What we discuss on this episode:
0:30 - How do we feel about that final NCAA tournament game?
3:01 - What should you be aware of around 30 years old?
4:18 - What can you do at age 50?
7:17 - What happens at age 55?
9:14 - By 62, what options do you have?
12:11 - At 65 you’re eligible for Medicare.
13:02 - What’s important about 66 and 67?
14:31 - You can delay Social Security benefits until 70.
15:04 - RMDs start at 72.
18:16 - What age is most important?
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
We all have important papers, but how do you know what you really need vs. what you can toss? David shares what to shred and what to hold onto when it comes to your financial records.
What we discuss on this episode:
1:45 - What should you do with investment statements?
4:37 - Should you keep bank statements?
7:08 - How long do you need your tax records?
8:39 - Do you need current year’s tax return documents?
10:50 - Birth certificates and Social Security cards are tough to replace.
13:22 - Wills and estate planning documents should be kept.
14:30 - Home improvement documents should be kept as long as you own the house.
16:59 - Receipts for valuable items you have should be kept.
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
What financial documents do you most need, based on where you are in life? David points us toward the right ones you want to focus on in your life stage.
What we discuss on this episode:
0:28 - March Madness is here!
2:06 - Which financial documents do you need in which life stage?
3:46 - Do you have the right beneficiary designations listed?
8:49 - If you own a home, who is it set to go to?
9:51 - Do you have financial goals?
12:45 - Do you have a will in place?
16:30 - Who will speak for you if you can’t?
18:06 - Do you have a living will?
20:27 - What do you need ready in your 50s and into retirement?
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
What do all those letters and terms following an advisor’s name mean? We explain what you need to know and what’s important when it comes to designations in the financial industry.
What we discuss on this episode:
0:35 - What do all those financial advisor designations mean?
2:13 - What does IAR or RIA mean?
5:26 - What does the letter “C” stand for in these designations and why should I care?
12:28 - What does a “series” mean when promoted by an advisor?
16:12 - Does a financial advisor need a certain college degree?
18:30 - What designations should an advisor have to prepare someone for retirement?
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
Today, we are answering some more mailbag questions from our listeners. How much can you spend without running out of money? How does a 401(k)-rollover work? We’ll answer these and more on today’s show.
What we discuss on this episode:
0:38 – How is David doing?
2:00 – “How much can I spend yearly without running out of money?”
5:55 – “I have all my money in an IRA; should I move it somewhere else?”
9:36 – “How do I reduce the risk in my portfolio?”
13:27 – “How does a 401(k)-rollover work?”
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
How closely should you pay attention to what is happening with the Fed right now? David answers this and two other questions from the mailbag on today’s podcast
What we discuss on this episode:
0:54 - Should I care about what the Fed is about to do?
7:29 - Will my Social Security checks get smaller if I don’t withdraw soon?
13:18 - Will this downturn be similar to 2001 or 2008?
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
Just what matters most when it comes to planning and saving toward your retirement? We compare notes between a number of experts and David weighs in on how and where to focus your efforts.
What we discuss on this episode:
0:23 - It’s still snowing!
1:59 - What is the most important part about retirement planning?
3:16 - Decide what you want to do with your time.
5:55 - Start now.
8:28 - How much you’ll spend in retirement is hard to predict.
11:00 - Are proper allocations arguably the most important step?
12:55 - Is your retirement fulfilling?
15:14 - Picking the right planner makes all the difference.
16:59 - What does David say is most important?
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
Are you ready to do a rollover or dreading the need to do a required distribution? David explains some recent updates that may make this a bit easier for you.
What we discuss on this episode:
0:30 - Today we’ll talk about something for everyone.
1:09 - What recent changes have been made?
2:30 - Why does the life expectancy table change matter?
7:34 - How can you do an IRA rollover without issue?
10:45 - David shares a client example of a rollover.
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
There’s a lot we can’t know, so how do you plan for it? From taxes to market crashes, David talks through what you can do to make sure you aren’t caught off-guard when the unexpected happens.
What we discuss on this episode:
0:32 - Today’s podcast is from the road!
3:36 - If you knew the answers to the unpredictable it would be easier.
4:07 - When is the next market crash going to happen?
5:47 - What happens with a downturn and with a recession?
9:33 - What will healthcare costs look like in 20 years?
12:12 - What will taxes by like?
16:08 - How long are you going to live?
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
Feeling a bit whiplashed from the stock market volatility? David discusses what just happened with the stock market and what we can do as we look toward the future.
What we discuss on this episode:
0:27 - This week’s Chiefs game was a shock.
1:30 - We’ve been seeing volatility in the stock market.
3:53 - What happened?
8:32 - Are the markets in a correction?
11:52 - Do corrections matter?
15:29 - Where do we go from here?
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
Losing 100 pounds is a huge accomplishment, but it didn’t happen overnight! We talk about what it takes to achieve big goals, both with weight loss and with our financial plan.
What we discuss on this episode:
0:55 - Co-host Walter lost 100 pounds in 2021!
3:13 - What was the plan?
6:54 - What was the inspiration point for David to get into financial planning?
10:20 - Having a plan makes you more likely to reach your goal.
15:20 - Success breeds more success.
17:41 - Recognize that you will have setbacks.
21:10 - Retirement may be a ways away and hard to visualize the end goal.
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
If your finances seem to be in order, how important is it to have a monthly budget? Is life insurance necessary if you have no kids? What assets should you list on your net worth statements? David answers these questions today!
What we discuss on this episode:
1:28 - Do I need life insurance if I’m young and don’t have kids?
7:24 - Do I have to have a budget?
13:10 - What assets can I list on my net worth statement?
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
What else can you do to get into good financial shape in the new year? We talk through three more financial resolutions you can make right now.
What we discuss on this episode:
0:59 - Increase your retirement savings.
4:52 - Save as much as you can, as early as you can.
9:25 - Protect your family from catastrophic risks.
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts
How can you get your finances in better shape this year? David starts with three financial resolutions to make on this two-part series.
Read more and get additional financial resources here: https://www.coveryourassetskc.com/episode-155-2022-financial-resolutions-part-1
What we discuss on this episode:
0:27 - What resolutions have David and Walter made?
4:55 - Find out your net worth.
13:08 - Pay off your credit card debt.
17:46 - Are other types of debt just as bad?
21:05 - Establish an emergency fund.
What are some of the top questions David received this year? We revisit five questions from the mailbag before ringing in the new year.
Read more and get additional financial resources here: https://www.coveryourassetskc.com/episode-154-best-of-2021-listener-questions
What we discuss on this episode:
1:15 - Is it a good idea to put my son as a joint owner on our home?
5:20 - Should I sell my stock or pay more attention to the tax bill?
8:45 - What can you do about RMDs?
13:37 - Should I consider an early retirement package?
17:54 - Should I use a robo-advisor for my HSA investment?
How can you simplify your retirement and why does it matter? David shares why you may want to consolidate your retirement savings and the three ways it benefits you.
Read more and get additional financial resources here: http://www.coveryourassetskc.com/episode-153-one-easy-way-to-simplify-your-retirement
What we discuss on this episode:
2:37 - Way less information to keep track of.
4:32 - You’ll have access to more options.
5:35 - RMDs can be a nightmare if they are still with former employers.
7:50 - David shares a client story of someone who needed to consolidate.
How much do you really know about Roth conversions? David walks us through common misconceptions and shares why Roth conversions may be worth considering before the end of the year.
Read more and get additional financial resources here: https://www.coveryourassetskc.com/episode-152-7-roth-conversion-misconceptions
What we discuss on this episode:
0:33 - Christmas is coming!
2:11 - How soon do you need to do a Roth conversion?
3:54 - Who can do a Roth conversion?
4:54 - What are the conversion limits?
6:00 - Can you convert a beneficiary IRA into a Roth?
7:58 - There is no penalty for doing a Roth conversion.
10:31 - When will you pay the taxes?
12:33 - Can you do a partial conversion?
Are required minimum distributions looming over you and your near future? David talks through three strategies to help you reduce your RMDs.
Read more and get additional financial resources here: http://www.coveryourassetskc.com/3-ways-to-reduce-rmds
What we discuss on this episode:
0:26 - What’s David’s favorite Thanksgiving pie?
3:18 - What are RMDs?
8:48 - How can you reduce the RMDs? What’s the first strategy?
10:58 - What if you’re still working?
12:44 - When should you consider a Roth conversion?
What moves should you take now to retire early? How do you know if you have enough or too much risk in your portfolio? Is it worth waiting until 70 for Social Security? David answers these questions in this week’s podcast.
Read more and get additional financial resources here: https://www.coveryourassetskc.com/episode-150-mailbag-retiring-early-risk-and-social-security
What we discuss on this episode:
0:27 - The Chiefs are headed in the right direction!
2:03 - Mailbag: What should I know about retiring at 55?
7:29 - Mailbag: How much risk should I be taking?
14:03 - Mailbag: Should I wait until 70 for Social Security?
What strategies and pieces go into a retirement plan? Let’s talk through the puzzle of retirement planning today and how to solve it.
Read more and get additional financial resources here: https://www.coveryourassetskc.com/episode-149-retirement-planning-as-a-jigsaw-puzzle
What we discuss on this episode:
0:29 - Did David like doing jigsaw puzzles as a kid?
2:06 - How do you start the puzzle of retirement planning?
4:50 - What is the framework of a good retirement plan?
8:35 - How are you sorting your pieces?
12:04 - What’s the endgame with your retirement plan?
Were you late to saving enough for retirement? Let’s talk through five areas where you may be able to make up the difference as a retirement savings late bloomer.
Read more and get additional financial resources here: https://www.coveryourassetskc.com/episode-148-5-opportunities-for-late-bloomers
What we discuss on this episode:
0:28 - What should David do with all his Halloween candy?
3:45 - What should late bloomers do?
5:02 - Add to catch-up contributions.
7:16 - Kids are coming off the payroll.
9:20 - Less debt is best.
14:20 - Downsize your home.
16:37 - Add a twilight career.
Are you ready to give significantly but wondering what that will do to your taxes? Understanding your options ahead of time can go a long way when it comes to taxes.
Read more and get additional financial resources here: https://www.coveryourassetskc.com/episode-147-who-pays-the-gift-tax
What we discuss on this episode:
0:34 - David has a new grandson!
4:08 - Let’s talk about the gift tax.
5:48 - Do you give money to a 501(c)(3) organization?
7:38 - You can give through a qualified charitable contribution.
9:28 - How much can you give to your kids or grandkids?
12:24 - What exceptions to the rule should you keep in mind?
Who or what is listed as the beneficiary on your IRA? We get into various reasons for and against having a trust and how the most recent rules might affect how your estate plan is currently set up.
Read more and get additional financial resources here: https://www.coveryourassetskc.com/episode-146-should-your-trust-be-your-ira-beneficiary
What we discuss on this episode:
0:28 - David brainstorms future podcast ideas.
1:39 - Who needs a trust?
4:03 - When is it a bad idea to have an IRA as the beneficiary?
5:50 - Why does this matter right now?
9:14 - How has this changed since 2019?
What tax consequences should you prepare for? We talk through the different accounts you may have and what kind of taxes to expect in retirement for each one.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-145-tax-consequences/
What we discuss on this episode:
0:33 - Taxes are one of David’s favorite topics.
2:51 - What do you need to know about tax-deferred accounts?
6:14 - Roth accounts are taken out tax-free.
8:42 - What are taxable accounts?
11:41 - What happens with CDs?
13:45 - Why is life insurance part of the discussion?
Are you and your spouse not seeing eye-to-eye when it comes to saving (or spending) in retirement? David shares his thoughts on how to improve the situation for this person and two others seeking financial advice.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-144-mailbag-how-can-i-convince-my-husband-weve-saved-enough/
What we discuss on this episode:
1:16 - Mailbag: Can I use my home equity line as an emergency fund?
5:11 - Mailbag: How can I convince my husband we’ve saved enough?
10:42 - Mailbag: How can I help my mother sort through her finances after my dad passed?
There is a lot of buzz going around about infrastructure bills. How could they impact you? We talk about “how the sausage is made” in bills like these as well as how you can prepare for them.
Read and get additional financial information: https://coveryourassetskc.com/episode-143-do-the-new-infrastructure-bills-impact-your-financial-plan/
What we discuss on the episode:
1:04 - Financial discussions in Congress right now
3:26 - American Jobs Plan
6:06 - American Families Plan
11:37 - How will this affect you and your family?
15:27 - What about long-term capital gains rates?
18:02 - What’s happening with Roth conversions?
19:01 - What other changes are being proposed?
25:04 - What should you do now?
We can all procrastinate at times. But when it comes to our finances we need to plan ahead. David shares key areas in your finances you don’t want to put off addressing.
Read and get additional financial information: https://coveryourassetskc.com/episode-142-financial-matters-you-dont-want-to-put-off-2/
What we discuss on the episode:
0:29 - David has golf plans
1:30 - What financial matters do people put off?
3:41 - Should you defer taxes?
6:07 - When should you eliminate debt?
9:59 - How important are your legal and estate documents?
13:14 - Should you delay Social Security?
16:41 - When do you put a plan in place?
If you have the option to contribute to a Roth 401(k), should you do it? In retirement, how can you be sure you won’t run out of money? David answers these questions and one more in today’s podcast.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-141-mailbag-should-i-contribute-to-a-roth-401k/
Bank Tree Calendar: https://www.bankrate.com/retirement/calculators/401-k-retirement-calculator/
What we discuss on this episode:
0:28 - Who doesn’t like the Chiefs?
2:24 - Mailbag: What if I don’t need my IRA at age 70?
7:59 - Mailbag: Should I put my retirement savings into a Roth 401(k)?
10:55 - Mailbag: Will I ever shake the scared feeling that I might run out of money?
Are you ready to become a millionaire? Let’s talk about how to make smart investments and make that goal a reality.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-140-401k-millionaires/
Bankrate Calculator: https://www.bankrate.com/retirement/calculators/401-k-retirement-calculator/
What we discuss on this episode:
0:27 - Do you have a million dollars in your 401(k)?
1:54 - Is a million dollars in a 401(k) common or attainable?
3:18 - Everybody is different.
4:41 - Start early.
9:23 - Make sure you’re consistent with contributions.
11:19 - Don’t be too risk adverse.
13:43 - Find ways to make money while you sleep.
In celebration of Social Security’s recently passed birthday, let’s talk about four things you should know about it. How can you plan for Social Security as a part of your retirement plan?
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-139-happ…-social-security/
What we discuss on this episode:
0:33 - Happy Birthday to… Social Security!
2:28 - About 65 million Americans draw on Social Security.
4:38 - Get an estimate of what your Social Security benefits may be.
6:38 - What’s the average retired person’s income from Social Security?
9:55 - What is full retirement age?
12:42 - Are there reasons to not wait until age 70?
Before you buy an annuity (or rule one out), what do you need to know? David outlines three questions that will help you determine whether or not an annuity aligns with your goals and financial plan.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-138-3-questions-to-ask-before-you-buy-an-annuity/
What we discuss on this episode:
1:32 - What type of annuity is it?
4:48 - How much does this annuity cost?
8:57 - What happens to my money when I die?
12:08 - So, are annuities good or bad?
Gas prices are up, buying a car is much more expensive, and groceries cost more. Is this something you should be concerned about? David shares more information about inflation and whether or not he thinks this is transitory.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-137-is-inflation-transitory-or-here-to-stay/
What we discuss on this episode:
1:40 - Is inflation a big deal?
3:42 - What are the latest numbers telling us?
5:15 - How do you decide if it is temporary or permanent changes?
11:40 - What can we do with this information?
14:18 - Should you be worried?
After listening to prior podcasts, listeners sent in questions for David to dive in deeper. We covered three questions in last week’s episode and cover two more today on today’s podcast.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-136-mailbag-how-much-money-to-set-aside-for-medical-care/
What we discuss on this episode:
1:19 - Mailbag: How do I know how much to save for medical expenses?
7:19 - Mailbag: Should I rollover my pension into an IRA and buy an annuity?
9:43 - What kind of annuity do you plan to buy?
When you get closer to the age of required minimum distributions, you may wonder what you need to do now to prepare. David answers two questions from the mailbag in this week’s podcast.
Read more and get additional financial resources here: https://coveryourassetskc.com/episdoe-135-mailbag-what-should-i-do-now-to-reduce-future-rmd-taxes/
What we discuss on this episode:
0:26 - It’s the dog days of summer in Kansas City.
1:48 - This is part one of our mailbag questions.
2:38 - Mailbag: How can I reduce my future tax bill in retirement?
6:17 - How can you pay less in taxes before being locked in?
11:42 - Mailbag: How can we avoid probate on our home?
Worried your money won’t last through your retirement? Just how much do you need and when can you retire? David talks through all of these things you must know if you are close to retirement.
Read more and get additional resources here: https://coveryourassetskc.com/episode-134-the-3-things-you-must-understand-if-retiring-in-3-5-years-part-3/
What we discuss on this episode:
2:19 - How long will your money last?
8:32 - How long will you live?
13:04 - What if the math isn’t on your side to retire at 65?
18:05 - What are the key takeaways?
As you get closer to retirement, you likely want to make sure everything is in order, including your estate plan. David discusses what paperwork you should have in place and up-to-date.
Read more and get additional financial resources here: https://coveryourassetskc.com/podcasts/
What we discuss on this episode:
3:09 - Should you have a trust?
5:42 - Do you have good beneficiary designations?
9:53 - What are the two kinds of beneficiary designations?
15:39 - What if you aren’t able to speak for yourself later on?
What happens with your taxes in retirement? This is the first of our three-part series for what to do and how to prepare if you are three to five years away from retirement.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-132-3-things-you-must-understand-if-youre-retiring-in-3-5-years-part-1/
What we discuss on this episode:
0:40 - Celebrating the 4th with family, fun, and fireworks.
3:10 - Why is the three to five year timeline before retirement so important?
5:05 - Your Social Security is likely to be taxed.
7:40 - Should you take a pension lump sum or monthly payments?
12:31 - The widow’s tax is rarely discussed but important.
16:52 - Talk to your advisor about all of these.
529 plans are a great way to save away money for kids’ college. But it does take a little bit of time to understand the ins and outs of them. David talks us through the top five things to keep in mind with 529s.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-131-5-things-grandparents-parents-need-to-know-about-529-plans/
What we discuss on this episode:
0:44 - What’s the weather?
2:36 - What do you need to know about 529 plans?
3:57 - In many cases, you get a tax deduction for contributing.
6:59 - 529 plans aren’t just for college.
8:43 - It’s not only for tuition.
10:24 - You can change the beneficiary.
11:59 - What about the gift tax?
Are you doing more summer vacation planning than financial planning? You’re not alone. Let’s talk about how you should view retirement planning in relation to your vacation plans.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-130-only-1-in-4-americans-have-done-this/
What we discuss on this episode:
0:43 - Why vacation planning?
4:15 - Why does this relate to retirement planning?
6:34 - The first step is to estimate how long your retirement will last.
8:39 - The second step is how much you’ll spend.
12:36 - How much retirement income will you have?
14:07 - What happens when you put it all together?
17:12 - Keep updating and adjusting as needed.
Is something going wrong if your IRAs aren’t making as much as you think they should? Or, how can you save for an upcoming wedding? David answers four questions from the mailbag.
Read more and get additional financial resources here: https://coveryourassetskc.com/episdoe-129-mailbag-why-arent-my-iras-making-much-money/
What we discuss on this episode:
1:02 - It’s mailbag time!
2:03 - Mailbag: How should we save or invest for a wedding?
5:49 - Mailbag: Should I sell stock or keep my taxes low?
9:29 - Mailbag: Why aren’t my IRAs making much money?
12:02 - Mailbag: Can I combine my old 401(k)s?
Wondering if you need term life insurance? You probably do, so how and where should you get it? Find out on today’s podcast!
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-128-how-to-find-and-buy-term-life-insurance/
What we discuss on this episode:
0:33 - David got to be young at heart with some family recently.
2:54 - How do you get the best and cheapest term life insurance for you?
7:15 - How do you get life insurance?
11:38 - Who should get term life insurance?
12:47 - Where should you get it?
If you understand the three worlds of money, you will have a better understanding of how financial planning works. So today, we’ll remove the financial terms and extra jargon in order to focus on the three worlds of money: banking, insurance, and Wall Street. They serve significantly different purposes, and it’s important to understand how each fit into your financial world.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-127-the-3-worlds-of-money/
What we discuss in this episode:
0:32 - Happy June!
1:59 - What are the three worlds of money?
4:14 - What are the pros and cons of the banking world?
8:28 - Can mistakes really be made in the banking world?
9:45 - What should you know about the insurance world?
14:53 - What’s in the Wall Street world?
20:05 - Do David’s clients tend to be in one world too much?
Ready to put your retirement income knowledge to the test? Take this quiz and follow along on today’s podcast to see how you do.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-126-whats-your-retirement-income-literacy/
Take the quiz here: https://www.surveymonkey.com/r/2020-retirement-income-survey
What we discuss on this episode:
0:56 - Could you pass this retirement income literacy quiz?
3:14 - What’s the most you can afford to withdraw each year to have a 95% chance that your assets will last for 30 years?
5:12 - What is the average life expectancy of the average 65-year-old male?
6:33 - When do you have to start taking RMDs?
8:22 - Can a working retiree contribute to an IRA or Roth IRA?
9:53 - What medical expenses will traditional Medicare cover?
11:22 - Nationally, who pays the majority of long-term care expenses?
12:50 - Who provides the majority of long-term care services?
16:09 - Is your 401(k) at risk if the company sponsoring the plan goes bankrupt?
18:24 - How did you do?
Is paying off the house a worthwhile reason for taking Social Security early? Can life insurance create retirement income? David answers five very different questions from the mailbag in today’s episode.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-125-mailbag-should-i-take-social-security-early/
What we discuss on this episode:
1:34 - Mailbag: Should I take Social Security early to help pay off the house?
7:12 - Mailbag: Can you use life insurance to create income in retirement?
8:48 - Mailbag: How much should I leave as a legacy vs. enjoying now?
12:08 - Mailbag: When should I reinvest my money?
16:51 - Mailbag: How much long-term care coverage do we need?
Ready to learn some financial terms? David unpacks four financial terms and how they may relate to your financial plan.
Read more and get additional financial resources here: https://coveryourassetskc.com/ep-124-4-terms-from-the-financial-dictionary/
What we discuss on this episode:
1:59 - What is overbought in the stock market?
6:16 - What is P/E ratio?
12:11 - What is a quitclaim deed?
14:33 - What is regressive tax?
Ironically, life insurance is a young man’s game. The perception among many people is that the need for a policy dramatically decreases or become completely unnecessary as you get older. But is that really the case? Today, we’ll explore the ins and outs of life insurance and its various uses when it comes to planning.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-123-do-retirees-really-need-life-insurance/
What we discuss on this episode:
1:36 – Perception of life insurance
2:35 – Why does it get a bad reputation?
4:07 – Determining whether someone needs it
5:44 – How much coverage do you need
7:31 – Other strategic uses for life insurance
12:15 – How often is David using life insurance for clients?
Are you divorced and wondering about spousal Social Security benefits in retirement? David shares seven things you need to know about the benefits and what they might look like on today’s podcast.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-122-how-to-claim-social-security-benefits-of-an-ex-spouse/
What we discuss on this episode:
0:49 - What happens to your Social Security after a divorce?
2:05 - How do you qualify for an ex-spouse’s Social Security?
4:18 - How much would you be entitled to?
7:28 - What if someone has been divorced a few times?
8:43 - What if your ex is not taking Social Security yet?
10:11 - Will my ex-spouse know that I’m claiming?
11:31 - What if the ex-spouse is deceased?
13:00 - How does someone apply for this benefit?
If you’ve found a good stock, how much is okay to invest in it? David answers this question from the mailbag, as well as three others related to when to retire and the stability of Social Security.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-121-how-much-should-you-invest-in-one-stock/
What we discuss on this episode:
0:57 - Mailbag: Is it normal to work past 65 years old?
4:11 - Mailbag: Should you consider an early retirement package?
8:49 - Mailbag: Will Social Security be around the rest of my lifetime?
11:27 - Mailbag: How much of your portfolio is okay to be invested in one stock?
When financial planning, what do you need to know about inherited IRAs when it comes to leaving a legacy? What is most beneficial to your heirs in the future?
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-120-whats-changed-with-inherited-iras/
What we discuss on this episode:
2:34 - In the last few years a lot has changed with inherited IRAs.
4:05 - Generally, you have up to 10 years to clear out an inherited IRA.
6:32 - What if you inherit an IRA from your spouse?
10:19 - What implications after the shift in rules?
12:37 - Is it better to inherit a Roth vs. a traditional IRA?
14:33 - How do you rollover an inherited IRA?
As March Madness came to a close, we wanted to have a little fun and talk about what basketball and financial planning had in common. Is your financial plan ready for its one shining moment?
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-119-basketball-and-financial-planning/
What we discuss on this episode:
2:08 - What can we learn about retirement planning from basketball, starting with the shot clock?
7:24 - What’s the retirement equivalent of a double dribble?
12:26 - What fouls do you want to avoid in retirement planning?
17:08 - What’s success defined as?
Are you assuming when it comes to your financial plan? Let’s talk about what common assumptions people have and how to properly plan and prepare for retirement.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-118-things-you-should-never-assume-in-the-financial-world/
What we discuss on this episode:
4:37 - Do you assume you’ll spend less in retirement?
6:57 - Assume your taxes will be lower in retirement?
10:34 - Think you should get your kids through college before saving for retirement?
12:44 - Feel like you’ll never be able to retire?
On the lookout for mutual funds with high returns because you’ve heard it’s possible? David answers three questions from the mailbag in today’s show as you make financial decisions.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-117-where-can-i-find-mutual-funds-with-10-percent-returns/
What we discuss on this episode:
1:22 - Mailbag: Will my Social Security and pension be enough?
6:07 - Mailbag: Where can I find returns that earn over 10 percent?
11:53 - Mailbag: Should I keep an inherited house as a rental property?
15:08 - What do you do with an emotional inheritance?
Have you given much thought to taxes in retirement? What can you do to prepare effectively for what the future may hold?
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-116-4-steps-to-help-you-plan-ahead-for-taxes-in-retirement/
What we discuss on this episode:
0:37 - David is back in town!
4:05 - Why is it important to plan ahead for taxes?
6:17 - Should you include diversification in your retirement taxes?
7:51 - What are the four accounts to invest in?
13:05 - How would someone use those accounts to build their retirement?
17:50 - What’s the most efficient way to manage these accounts?
What is your financial foundation? Every financial house needs a strong foundation. Whether you are just starting out or already into retirement, you want a firm and healthy foundation. On today’s episode of Cover Your Assets KC, David talks about the five keys you’ll want to build your financial base.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-115-5-keys-to-a-strong-financial-foundation/
What we discuss on this episode:
1:29 - Have total control of your checking and savings accounts.
4:50 - Do you have a workplace retirement account?
8:44 - If no workplace retirement account, do you still have a retirement account?
11:28 - Make sure you have life insurance.
17:56 - Should you have a taxable brokerage account?
This or that? Which is better? David answers three mailbag questions that ask what to do while trying to make wise investment decisions.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-114-save-up-for-rental-property-or-pay-off-house/
What we discuss on this episode:
0:26 - Feeling ready for spring?
2:04 - Mailbag: Pay off the house or save for a rental investment property?
10:28 - Mailbag: How many 401(k) funds should I have?
17:29 - Mailbag: Should I use a robo-advisor tool to invest my HSA?
22:50 - What’s the most important thing to do financially when you’re young?
If you’ve ever invested, you’re at least familiar with capital gains, but do you understand how much they impact your future? Today we’ll tell you five things that you need to know about capital gains and how to account for them when investing.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-113-5-things-to-know-about-capital-gains/
What we discuss on this episode:
1:43 - What’s the difference between a short-term capital gain and a long-term capital gain?
5:55 - Which one is better?
6:22 - Does it change if you’re in a Roth IRA or traditional IRA?
10:00 - What happens if you sell something at a loss?
13:29 - What do you need to know about annuities?
What risks might you encounter when it comes to your finances? How prepared are you for what may come? Find out more about the different types of risk and how to account for them in planning.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-112-types-of-financial-risk-to-watch-out-for/
What we discuss on this episode:
0:30 - Is David a risk-taker?
1:59 - What are the different types of risk in finances?
3:16 - Market risk
7:47 - Interest rate risk
12:10 - Inflation risk
16:14 - Tax rate risk
22:40 - Longevity risk
What just happened with GameStop, causing a wild week on Wall Street? Today on the podcast, David gives an explanation of what GameStop is, why its stocks soared, and what we can learn from the situation.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-111-the-story-behind-gamestop-stock/
What we discuss on this episode:
0:29 - David shares what part of the country he’s visiting right now.
2:29 - What lessons can be learned from GameStop?
6:44 - What does Reddit and GameStop have to do with a short stock?
10:18 - What made this become a big story in the news?
14:54 - GameStop was only the beginning.
18:47 - Were any of David’s clients impacted by that market volatility?
Have you started working on your financial resolutions yet? What kind of questions have delayed you from reaching your goals? Today we’ll provide answers to help you stay on track financially this year.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-110-financial-resolutions-answering-your-questions/
What we discuss on this episode:
1:31 - Mailbag: How do I make a plan to address $30k in credit card debt?
2:49 - What five steps will get you to where you want to be?
12:24 - Mailbag: Should I be concerned about my retirement if my net worth didn’t grow last year?
16:00 - Looking at the net worth statement gives you forward momentum.
18:25 - Mailbag: Am I falling behind if I haven’t started saving for retirement at age 32?
19:25 - What can you do if you don’t have a 401(k)?
Does your portfolio contain these three qualities? How can you create a balanced portfolio Today we’ll talk about some foundational principles that David’s business and financial security are built on.
Show notes and additional financial resources: https://coveryourassetskc.com/episode-109-sly-safety-liquidity-and-yield/
What we discuss on this episode:
0:41 - What are the three qualities of money?
2:16 - What qualities do you want in a portfolio?
3:26 - Why can’t I have all three qualities at once?
6:27 - What’s a balanced portfolio look like?
9:22 - What types of annuities could be considered?
11:17 - What qualities does real estate have?
14:34 - How does David help clients find the right balance?
What can we learn from these retirement statistics? Sometimes the data available can help guide you and your decisions when it comes to planning for retirement. On today’s episode of the Cover Your Assets KC podcast, we discuss five important statistics you’ll want to keep in mind.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-108-5-important-retirement-statistics/
What we discuss on this episode:
1:35 - What are important retirement statistics?
2:29 - 17 percent of American workers are confident they’ll have enough money in retirement.
7:27 - The average 65-year-old woman has a life expectancy of 20.7 more years.
9:31 - 16.5 percent of our population is over age 65.
11:58 - The average retiree will spend almost $300k for out-of-pocket medical expenses.
15:47 - 90 percent of people over 60 years old say a written plan is important.
Ready to hit the ground running with your financial resolutions? David gives a list of seven things to cover in this two-part series.
Check out part 1 here: https://coveryourassetskc.com/episode-106-2021-financial-new-years-resolutions-part-1/
Read more and get additional resources here: https://coveryourassetskc.com/episode-107-2021-financial-resolutions-part-2/
What we discuss on this episode:
0:54 - What were the first three financial resolutions?
3:00 - Save as much as you can as early as you can.
7:11 - Are you taking advantage of systematic savings?
12:36 - Have you done your annual net worth statement?
19:17 - Have you checked your beneficiary designations?
As we kick off the new year, let’s look to some financial resolutions. Have you set resolutions for the year yet or are you feeling a bit of the 2020 burnout? These resolutions are really important to your financial future--so important, that this will be a two-part series. Hopefully by the end of January, you have all seven of these action steps nailed down.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-106-2021-financial-new-years-resolutions-part-1/
What we discuss on this episode:
1:25 - What are some financial New Year’s resolutions you can make?
4:05 - Resolution #1: Do you have an emergency fund?
8:54 - Resolution #2: Pay off your credit card debt.
14:10 - Is a car loan or mortgage okay to have?
16:21 - Resolution #3: Cover your assets!
What can you still do before the year ends? David talks through four strategies that you’ll want to consider before the clock strikes midnight on December 31.
Read more and get additional financial resources here:
https://coveryourassetskc.com/episode-105-no-democratic-sweep-final-tax-strategies-of-2020/
What we discuss on this show:
0:23 - This is our final show of 2020. Ready for 2021!
3:43 - Biden will be taking over the presidency, but we don’t know yet about the Democratic sweep.
6:47 - Make sure you know where you stand from a gain/loss standpoint and consider tax loss selling.
8:57 - Are there long-term capital gains in your portfolio that you want to harvest?
13:09 - The Roth conversion deadline for 2020 is December 31.
17:35 - What do you need to know about the gift tax?
What will happen to Social Security? Can you plan on it as a part of your retirement plan? How can you set realistic expectations for what’s to come? We’ll talk about this important piece of income planning.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-104-are-you-counting-on-social-security/
What we discuss on this show:
1:13 - Should you count on getting Social Security?
4:25 - When will Social Security run out of money?
8:47 - Will my benefits be reduced?
11:07 - Will Social Security be there for me?
17:00 - Most people ask David about Social Security.
Wondering what to do with your financial plan but don’t want to later regret it? Here’s a few things people never seem to come back and complain about.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-103-things-nobody-says-about-their-financial-plan/
What we discuss on this show:
2:05 - What are some things nobody says?
2:35 - “I regret putting money into my Roth IRA every year.”
5:25 - “I should have spent more and saved less.”
7:36 - “The life insurance payout was insulting.”
12:08 - “Paying more taxes than I have to makes me feel patriotic.”
14:35 - “I love the big market corrections.”
We cover one of David’s favorite topics while answering three questions from the mailbag today. From Roth conversions, investment choices, and pension decisions, we’ve got you covered when it comes to retirement planning.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-102-whens-a-good-time-for-a-roth-conversion/
What we discuss on this show:
0:58 - Happy Thanksgiving!
2:31 - Mailbag: Is it a bad idea to do a Roth conversion on a high income?
7:50 - What would be considered “high income”?
9:36 - Mailbag: What do you think about investments that require you to keep your money locked in?
13:13 - Mailbag: Should you take a monthly income or lump-sum for your pension?
A lot has happened this year, particularly in the past few weeks. As 2021 approaches, how do we need to prepare? What’s significant about changing from one year to the next? What financial moves do you need to make now?
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-101-end-of-year-financial-planning/
2:17 - 2021 is around the corner.
4:07 - Tax moves you might want to make.
7:35 - What would happen if Biden increases the tax rate on long-term capital gains?
10:51 - What is the gift tax?
14:33 - Are you considering a Roth conversion?
How do you know when you have enough saved for retirement? How do you know when there’s enough left over to do something else like travel or take on a home renovation? We’ll answer your mailbag questions on today’s episode.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-101-can-we-afford-to-do-this-and-still-have-enough-for-retirement/
What we discuss on the show:
1:04 - Today’s advice was recorded before the election.
1:47 - Mailbag: Will I spend more money at the beginning of retirement and then less after that?
6:10 - How are you allocated?
7:34 - Mailbag: After a divorce in my 50s, will I still have enough for retirement?
11:41 - Mailbag: Can we afford a kitchen redo?
15:58 - How often do clients ask David for “permission” to do something?
Do you have a will or trust? What part do they play in your financial plan? What mistakes do you want to be sure to avoid when setting them up?
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-99-understanding-and-implementing-wills-trusts/
What we discuss on this show:
2:40 - People often overlook estate planning.
3:24 - Why are wills and trusts important?
4:47 - How do you know if a will or trust is right for you?
6:55 - Is a trust just for money or other assets as well?
8:36 - Where do people make big mistakes with wills and trusts?
13:21 - What if your estate is going to both people and charities?
16:01 - Where should you get advice regarding a will or trust?
Are you ready to put your knowledge of Social Security to the test? How does Social Security fit into your retirement plan? Take the quiz on today’s episode.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-98-can-you-pass-this-social-security-quiz/
What we discuss on this show:
0:42 - David is putting co-host Walter to the test.
2:25 - What percent of Americans over age 65 receive Social Security?
3:36 - What’s the most common age for people to begin collected Social Security benefits?
6:02 - Once your Social Security is reduced, is it always reduced?
6:54 - Does the value of your wealth or income matter when claiming benefits?
8:58 - When do retirement benefits end?
11:25 - What makes a spouse benefit for Social Security spousal benefits?
13:20 - Will Social Security Administration pay benefits to college students who are beneficiaries?
15:16 - Can Social Security payments go to the estate of deceased beneficiaries?
19:21 - Do Social Security benefits increase if you continue to work and contribute after retirement age?
From Social Security benefits to long-term care coverage to incentivizing your children, we answer four questions from the mailbag today. David shares his advice for these listeners navigating different situations in their financial plan.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-97-can-i-claim-ex-husbands-social-security-benefits-other-questions/
What we discuss on this show:
1:08 - Mailbag: How do you wisely handle sharing an unexpected inheritance with a child?
5:14 - Mailbag: Do I get half of my ex-husband’s Social Security benefit?
10:24 - Mailbag: Does my policy have enough long-term care coverage?
14:04 - Mailbag: Should I move my investments to cash?
Are your taxes going up if Biden gets elected? David talks through some of the numbers and examples of how his tax plan could impact you.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-96-would-my-taxes-go-up-if-biden-becomes-president/
What we discuss on the show:
0:40 - Will my taxes go up if Biden is elected?
2:01 - What do people typically fear will happen if Biden is elected?
5:24 - What will happen to the taxes of people not in the top 2 percent?
8:00 - David shares a client example of inherited money for a retired couple and their taxes.
11:03 - What is the stepped up cost basis?
14:40 - What should you plan for?
You may have spent plenty of time planning for your legacy, but do your heirs know what they need to know? What conversations should you be having with them now?
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-95-3-things-your-heirs-should-know/
What we discuss on this show:
1:48 - What should you be thinking about with the next generation?
2:52 - #1: Make sure that you have a healthcare directive or living will.
5:39 - #2: Have a will and make sure your heirs know about it.
7:54 - People with a trust think they can set it and forget it.
10:13 - Communication is important.
11:10 - #3: Name a financial power of attorney and executor.
Even though it’s still a little way off, how can Millennials best prepare for retirement? What kinds of strategies should they implement as a part of their financial plan?
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-94-millennials-in-retirement/
What we discuss on this show:
0:34 - What should Millennials be doing to save and prepare for retirement?
2:06 - Be focused and working on your career.
3:57 - Tip #1: Save at least 10 percent of what you make.
7:34 - Tip #2: Plan for Social Security to start at 70 instead of 65.
9:58 - Tip #3: Diversify investments with real estate.
15:53 - Tip #4: Consider the Roth 401(k).
23:33 - Does David work with Millennials?
Did you know…? From the global bond market to living benefits, we share what kind of stuff should you know when it comes to your financial decisions on today’s podcast.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-93-stuff-you-should-know-in-the-financial-world/
What we discuss on the show:
0:34 - Fall sports are back!
2:26 - The global bond market is about twice the size of the global stock market.
5:09 - Income tax rates are currently close to historical lows.
7:54 - Living benefits on life insurance are a long-term care solution.
11:54 - You probably have more risk in your portfolio than you realize.
13:13 - The biggest impediment to making good financial decisions is your own emotions.
Are you wondering if you should do a rebalance? David answers this question, as well as two others from the mailbag this week.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-92-mailbag-should-you-be-rebalancing/
What we discuss today:
1:47 - Mailbag: Should I rebalance?
2:48 - How does David breakdown a portfolio?
3:47 - Why is a rebalance important?
8:29 - Mailbag: Is 33 different mutual funds adequate diversification?
13:47 - Mailbag: Can I claim Social Security benefits and still earn income?
What should you know when it comes to Social Security in the future? Will it still be there for you when you need it? How should your retirement plan account for Social Security? We’ll talk all things Social Security on today’s show.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-91-whats-the-future-of-social-security/
What we discuss:
1:07 - What is Social Security’s future?
2:48 - How will we keep it going?
4:03 - What’s the history of Social Security?
11:05 - What are the potential fixes to Social Security’s problems?
14:53 - What problems do we need to be prepared for?
Regardless of your age, here are three reasons you may want to review your tax plans and estate plans before the end of the year. Do you have everything set up in the most beneficial way?
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-90-3-reasons-to-review-your-tax-and-estate-plan-now/
On today's show:
0:34 - This show has something for everyone when it comes to tax strategy.
1:31 - Why should you review your tax and estate plan right now?
3:21 - What is the gift tax exemption?
5:17 - What happens if the stepped up cost basis at death changes?
7:31 - Have you looked at doing a Roth conversion?
11:04 - How has the SECURE Act changed your estate plans?
How does this year’s 2020 election results impact your finances? We run through several possible outcomes to see what may be most beneficial from a financial standpoint.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-89-which-presidential-outcome-will-be-best-for-your-portfolio/
On today's show:
0:32 - What’s the latest in the news?
1:36 - Which presidential outcome will be best for your portfolio?
3:31 - What happens if it is full Democratic control?
4:22 - What regulations may be added with Democratic politicians in office?
6:44 - How would the payroll tax work?
10:04 - What happens if President Trump is re-elected, the house stays Democratic and the Senate is Republican?
12:47 - What is the key focus going forward?
13:37 - What happens if Biden becomes president, the Democratic house stays in place, and the Senate is Republican?
14:59 - What really matters?
19:04 - What should your financial plan include?
More than a mere structure, your financial plan creates the blueprint for the life and home you live in. What does it take to build a financial home that will withstand the test of time? Join us as we lay out the similarities between constructing a plan and constructing a house.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-88-building-a-financial-house/
On today's show:
1:50 - What goes into building a house?
3:13 - Building a financial plan can feel daunting.
3:48 - What is the foundation of a financial plan?
6:50 - What are the walls of your financial home?
8:42 - What covers your financial house?
13:09 - What are the finishing touches?
Should you follow the “Rule of 100”? Are you wanting to retire sooner than originally planned? Where should your retirement income come from? David answers these listener questions on today’s episode of Cover Your Assets KC.
Read more about this topic: https://coveryourassetskc.com/episode-87-3-listener-questions-about-retirement-planning/
On today's show:
1:02 - Mailbag: Can you explain the rule of 100?
4:34 - Mailbag: Which account should you withdraw from first in retirement?
8:08 - Mailbag: What do I need to have in place to retire earlier than originally planned?
9:45 - What will you spend in retirement?
12:07 - What is your Social Security claiming strategy?
13:54 - When can I retire?
Do you know when and how to do a 401(k) rollover? What type of rollover do you choose and where do the funds go? Find out on today’s podcast.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-86-what-your-401k-rollovers-options-are/
Today's show schedule:
1:07 - What are your options for rolling over a 401(k)?
2:53 - When you leave a company, what happens with your 401(k)?
6:01 - What’s the difference between direct and indirect rollovers?
10:57 - What happens with your investments?
13:17 - What are the steps to do a rollover?
While it’s unpleasant to think about, preparing for what happens when one spouse dies is a critical component of your financial plan. David has worked with several surviving spouses and shares what’s important to focus on when it comes to your financial plan during that transition.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-85-dealing-with-the-death-of-a-spouse/
Today's show schedule:
1:45 - What are the financial difficulties following the death of a spouse?
4:03 - What kind of income will the surviving spouse receive?
8:10 - How will your tax brackets change?
12:51 - What are the estate planning matters you need to address?
16:04 - Is your exposure to risk still appropriate?
Does retiring at 55 sound like a good idea? Russ, one of our listeners, thinks so and wants to know how he can prepare to do so.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-84-how-to-prepare-for-early-retirement/
Today's show schedule:
1:24 - Mailbag: What can I do to prepare to retire early?
3:14 - How much am I going to spend in retirement?
5:38 - How will you cover your healthcare?
7:29 - Where will your income come from?
10:21 - Will my money last?
Annuities might just be the most controversial topic in the retirement landscape, but why are they such a polarizing set of products? Find out what David thinks about the four different types of annuities and get lots of detail on each one on today’s episode.
Show Notes, Resources & Contact Info:
https://coveryourassetskc.com/podcasts/
Timestamps:
0:59 - Annuities are a controversial topic.
3:15 - It’s important to use the right tools.
5:04 - Type #1: Immediate annuity
9:22 - Type #2: Fixed annuity
12:36 - Type #3: Fixed index annuity
18:25 - Different companies offer different terms.
19:43 - Type #4: Variable annuity
From financial plans and needs to your retirement lifestyle, your retirement is decidedly not the same as dear old Dad’s. How will your retirement (and retirement plans) be different?
Show Notes, Contact & Resources:
https://coveryourassetskc.com/podcasts/
Timestamps:
0:51 - It was assumed you would automatically retire at 65.
2:53 - Retirement living was cheaper.
4:24 - Retirees today have a lot more problems than previous generations of retirees.
6:49 - Retirement portfolios now need to be designed for at least 30 (or more) years.
8:48 - Why should you get a financial check-up?
Are you aware of all of the changes that the SECURE Act brought about? How does that potentially change your financial plan right now? We’ll answer those questions and more on today’s episode.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-81-how-the-secure-act-changed-inherited-iras/
Today's show schedule:
0:32 - The SECURE Act was supposed to be the big financial news.
2:45 - What happens when you inherit an IRA?
3:40 - The first category of beneficiary is the surviving spouse.
4:21 - Who is included in the category of eligible designated beneficiary?
7:16 - Who has to take out the money within ten years or less?
9:47 - What’s the biggest unintended consequence?
12:38 - When should you talk to your advisor?
If you think a Roth conversion might be the right thing for you, how do you do it correctly? Creating a strategic plan for your conversion can make a significant difference in your finances and we'll discuss the reasons many people are choosing to make this move.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-80-what-is-the-strategy-behind-a-roth-conversion/
Today's show schedule:
1:14 - What is the strategy behind a Roth conversion?
3:47 - What is a Roth conversion?
6:11 - The longer your account grows tax-deferred, the bigger the account.
8:48 - It’s possible that the tax rates will go up in the future.
14:34 - How does this strategy relate to Medicare?
16:02 - Consider your retirement plans and where the country is going
We’re told to use common sense when making decisions, yet often we still do otherwise. Today’s podcast will highlight several areas where people tend to go outside of the common sense and why.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-79-uncommon-sense-in-financial-planning/
Today's show schedule:
0:53 - “Buy low and sell high.”
3:37 - Don’t pay more in taxes than you have to.
6:06 - Keep costs low within your investments.
8:33 - “Don’t put all of your eggs in one basket.”
10:22 - Market timing is virtually impossible.
Everybody likes to hear about scams but nobody likes to be involved in one. Today, let’s cover the two most common types of scams and then four ways to avoid a scam.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-78-how-to-spot-avoid-scams-in-the-coronavirus-environment/
Today's show schedule:
0:34 - Scams continue to be a risk.
2:26 - The most common scam is by phone.
4:22 - If you pick up the phone and they say they are from the IRS -- they aren’t.
7:07 - Be suspicious, especially with incoming calls.
8:35 - Unknown emails with a suspicious link shouldn’t be clicked on.
14:08 - Were you contacted out of the blue?
14:24 - Are they asking for personal information?
15:08 - Is there some sort of deadline or pressure to act now?
16:03 - Are they asking for money up front or with a VISA gift card?
17:27 - Use common sense and be skeptical.
21:05 - What happens if you respond to a scam email?
Wondering what’s most important as you near retirement? How about, what’s the worst course of action you can be taking? Find out the top three worst financial decisions you can make as you enter into retirement.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-77-3-worst-financial-decisions-you-can-make-near-retirement/
Today's show schedule:
1:56 - What are some of the worst decisions you can make as you approach retirement?
3:05 - Bad Decision #1: Entering retirement with too much debt.
5:40 - Bad Decision #2: Not having a strategy for claiming Social Security.
9:55 - Bad Decision #3: Not understanding the tax consequences on your retirement accounts.
12:46 - What is the estimate of where tax rates are going to go?
14:41 - What’s the solution to the potential tax later?
19:14 - What’s the current status at KC Financial Advisors and how are they conducting business?
Are you using non-correlated income wisely? On this episode, David explains what non-correlated income is and how you should use it within your financial plan.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-76-understanding-non-correlated-income/
Today's show schedule:
0:22 - What is non-correlated income?
1:33 - Why is non-correlated income important?
2:45 - What are some examples of non-correlated income?
3:43 - How much of a retiree’s income should be non-correlated?
5:02 - What’s an example of someone who used non-correlated income to add stability to their retirement?
Just like you have a doctor to help you manage your health, a financial advisor helps manage your financial health. Let’s discuss some of the parallels between your relationship with your doctor and with your financial advisor.
Read more and get additional financial resources here: https://coveryourassetskc.com/episode-75-financial-lessons-from-the-world-of-medicine/
Today's show schedule:
0:35 - Even if you feel fine, it’s good to get a regular check-up.
2:51 - Sometimes you can self-diagnose your issues, and sometimes you can’t.
5:38 - Different specialists will perform different functions.
9:31 - A second opinion may make a big difference.
Do you actually need to have life insurance or is it just another expense? David talks through the importance of life insurance and how it might be worth having as a part of your financial plan.
Read more and get additional resources here: https://coveryourassetskc.com/episode-74-do-you-really-need-life-insurance/
Today's show schedule:
0:22 - Why is “life insurance” a bit of a dirty word to some people?
1:17 - How do you know if you actually need life insurance?
3:05 - What is the right amount of life insurance to get?
4:42 - What are some strategic uses of life insurance that might be less obvious?
5:55 - How does this relate to your retirement savings?
Between coronavirus fears and the current market volatility, how can you navigate this turmoil wisely? What should you be doing with your money?
Read more and get additional resources: https://coveryourassetskc.com/episode-73-coronavirus-the-economy-navigating-the-turmoil/
Today's show schedule:
1:04 - It’s a lot to navigate through this pandemic. No one knows how it will all unfold.
2:08 - There was a market crash and then a bounce back. Will the volatility continue?
3:40 - What caused the market to drop?
5:24 - What caused the bounce back?
8:05 - Is the bounce back sustainable?
10:34 - How do you invest amidst uncertainty?
13:02 - What do you do now with your money?
In response to coronavirus, the CARES Act has been passed. What will this mean for you and your financial planning? Let's look at the three biggest provisions in this stimulus bill.
Read more and get additional resources here: https://coveryourassetskc.com/episode-72-3-key-provisions-in-the-cares-act/
Today's show rundown:
2:11 - What are three key provisions in the CARES Act?
3:14 - Free money will be deposited into the bank accounts of most Americans.
7:21 - The tax filing deadline has been bumped back to July 15.
10:51 - RMDs are not required this year.
14:33 - Bonus: REAL IDs will have another year before being required for travel.
Sometimes you hear a quote that might have been said a long time ago, but it still rings true today. What quotes from Will Rogers apply when it comes to making financial decisions?
Read more and get additional resources here: https://coveryourassetskc.com/episode-71-financial-planning-wisdom-and-quotes-from-will-rogers/
Today's rundown:
0:36 - There are three kinds of men says Will Rogers. What are they?
2:46 - What’s the difference between death and taxes?
5:03 - Is satisfaction all there is to success?
7:01 - “It’s not what you pay a man, but what he costs you that counts.”
9:13 - Are you concerned about the return on your money?
When it comes to your financial plan, are you basing it off of facts or fiction? Consider the decisions you’re making and where you’re getting your information. We'll help you do that on this episode.
Read more and get additional resources: https://coveryourassetskc.com/episode-70-are-these-financial-views-fact-or-fiction/
Today's rundown:
0:29 - Fact or Fiction: Your Social Security is taxable.
2:22 - Fact or Fiction: Your taxes will likely be lower in retirement.
4:00 - Fact or Fiction: Term life insurance is better than whole insurance.
5:25 - Fact or Fiction: Medicare will cover most of your medical needs in retirement.
6:14 - Fact or Fiction: As you get older, you should gradually switch from stocks to bonds.
In March, we usually spend a lot of time paying attention to basketball. While it’s not on right now, let’s talk though some of the strategy behind the game as it applies in our own lives.
Read more and get additional resources here: https://coveryourassetskc.com/episode-69-finan…nd-off-the-court/
Today's rundown:
0:52- How does the shot clock in basketball relate to financial planning?
2:54- Do you have a plan for what happens with Social Security?
4:31- If you have a pension, how much do you want the surviving spouse to have?
6:51- When somebody commits a foul in basketball, what does that do to the team?
What can you do while the market goes downward? What kind of impact with the coronavirus make on your financial plan? Today we'll lay out three steps you can take in the midst of the volatility.
Read more and get additional resources here: https://coveryourassetskc.com/episode-68-coron…ntinues-downward/
Today's rundown:
0:28- Continuing the conversation about the coronavirus and economic uncertainty.
0:57- What does it mean to be uncomfortable financially right now?
3:28- Step 1: Don’t react emotionally.
6:26- Step 2: Understand exactly what you own.
7:26- Step 3: Review your plan and rebalance.
The market has fluctuated dramatically in recent weeks and we’ve seen much more down than up. What is causing this? Is it all about the coronavirus? Should we be concerned or do something different with our portfolios?
Read more and get additional resources here: https://coveryourassetskc.com/episode-67-coronavirus-market-volatility-3-reasons-stocks-are-down/
Today's rundown:
0:41 - People are worried about market volatility.
4:46 - Reason #1: The coronavirus has caused economic uncertainty.
6:57 - An oil trade war added to the economic uncertainty.
8:31 - Reason #2: Political uncertainty is occurring with the upcoming election.
10:39 - Reason #3: Excessive leverage
15:36 - What do you do if you’re nervous?
Have you heard about Roth conversions? Wonder if it’s the right thing for you? David talks through different scenarios related to Roth conversions to see if it’s something that could benefit you.
Read more and get additional resources here: https://coveryourassetskc.com/episode-66-everything-you-need-to-know-about-roth-conversions/
Today's rundown:
1:38 - What is a Roth conversion?
3:37 - What benefit does a Roth conversion provide?
8:33 - What are common mistakes when it comes to Roth conversions?
11:11 - What’s the right way to do a Roth conversion?
13:47 - Who should not do a Roth conversion?
17:02 - What does this process look like when working with David’s team?
Do you want your net worth to be higher? How can you increase it? You can do it by implementing these four simple strategies.
Check out the show notes and get additional resources here: https://coveryourassetskc.com/episode-65-4-simple-strategies-to-increase-your-net-worth/
Today's show rundown:
2:19 - You may know the strategies to do, but you have to take action.
3:10 - Start by knowing what your net worth is.
4:15 - Step 1: Understand your debts.
11:21 - Step 2: Cut your expenses.
13:40 - Step 3: Have an emergency fund.
16:01 - Step 4: Increase your income.
It’s never a great idea to make assumptions and that’s especially true when it comes to your money and your retirement. Let’s identify the common assumptions people make with their financial planning that could end up really costing you in retirement.
Check out the show notes and get additional resources here: https://coveryourassetskc.com/ep-64-dont-make-these-retirement-assumptions/
Today's show rundown:
0:20 – The first retirement assumption we hear is that you’re going to spend less money once you retire.
1:26 – A lot of people assume taxes are going to be lower in retirement but don’t bank on that.
2:19 – Did you realize you have a partner in your 401k and IRA? It’s the IRS.
4:26 – Many people worry about putting their children through college before saving for their own retirement.
5:17 – Get a plan in place no matter what age you are.
8:13 – Mailbag question #1: Should I buy gold coins or gold bars? Or no gold at all?
9:58 – Mailbag question #2: I’m in my late 50s and recently divorced and extremely worried about what retirement will look like with one Social Security benefit and half of the assets that I planned on having. Can I overcome a divorce this late in life?
Ever wonder what it is they aren’t telling you when it comes to your financial decisions? What are those dirty little secrets in the financial world? And how can you strategize accordingly?
Show notes and additional resources: https://coveryourassetskc.com/episode-63-the-dirty-little-financial-secrets/
Today's rundown:
0:58 - Nobody can predict the future.
2:06 - Most of the things we argue about aren’t all that important.
4:01 - It’s difficult to differentiate between skill and luck.
5:30 - The bolder the headline, the more people pay attention to it.
7:51 - Mailbag: Is it typical to spend a lot of money early in retirement and less later on?
What are the rules now when you inherit an IRA? How has the SECURE Act changed things, and what was a stretch IRA? It’s the second installment of our series on the SECURE Act and what it means for your retirement.
Show notes and additional resources: https://coveryourassetskc.com/episode-62-secure-act-changes-part-2-inherited-iras/
Today's rundown:
0:47 - What are inherited IRAs and how does the SECURE Act change it?
3:09 - Other than a few exceptions, you will have to clear out your inherited IRA within 10 years.
4:00 - The money is taken out sooner and therefore taxed sooner.
4:48 - What are the exceptions to the rule?
6:39 - Minor children will have a ten-year timeframe once they meet majority.
7:12 - If you set up your IRAs to list your trust as your beneficiary, you’ll want to talk to an estate planning attorney right away.
10:48 - When you inherit money, that’s not a bad problem to have, but you’ll want some good advice on how to best handle it.
Are you wondering what the SECURE Act means for you? Whether you are in your childbearing years or 70 and a half, the changes will impact you and your financial plan.
Read more about the SECURE Act here: https://coveryourassetskc.com/episode-61-six-key-changes-in-the-secure-act-part-1/
Today's Rundown:
1:53 - Is the SECURE Act significant?
2:41 - There is no maximum age to contribute to an IRA.
4:38 - The required minimum distribution age is now 72.
7:44 - Are you making qualified charitable deductions in retirement?
9:49 - New parents can now take $5,000 or less out of your IRA or 401(k) without penalty based on the birth or adoption of a child.
10:48 - Taxable fellowships and stipends are now considered compensation.
11:43 - Inherited IRAs cannot be stretched out anymore, with a few exceptions.
While it’s not a fun topic to consider, long term care is an important part of a financial plan. Do you know how you plan to address long term care needs?
Show notes and additional resources: https://coveryourassetskc.com/episode-60-how-to-plan-for-long-term-care-needs/
Today's rundown:
0:12 - How important is long term care?
1:10 - How realistic is it for someone to self-insure?
2:30 - What are the pros and cons of long term care insurance?
4:47 - How can you protect yourself against long term care expenses?
8:39 - Mailbag: What is the rule of 100?